A good week for Ariana Resources plc (LON:AAU), which already has one gold mine in Turkey due to come on stream around the end of 2016, but it may not be too long before it has two.
A scoping study at the Tavsan deposit on the Red Rabbit project has just come back very favourably and if numbers continue to impress will add a further 30,000 ounces a year to the 20,000 oz expected from the first mine at Kiziltepe.
The scoping study showed production at that level would cost between US$559-630/oz over the expected four-year mine life and generate a net present value of US$41.9mln at a gold price of US$1,250.
That is a return of 80% on the expected US$20mln build cost plus operating expenses.
Kiziltepe is just 75km away and the plan will be for Tavsan to use a lot of its infrastructure for processing.
Meanwhile closely followed Sirius Minerals PLC (LON:SXX) has done everything possible to minimise shareholder dilution and get the best value in its record breaking major funding for its Yorkshire mine development, chief executive Chris Fraser told Proactive.
In a wide ranging interview – including insights into work plans, equity dilution and plans to step up to the London’s main market – Fraser says he believes shareholders can be happy with the funding terms and added that the company is now set for “a very bright future”.
The funding, £370mln of equity and US$400mln of convertible debt, was the largest ever UK mining equity issue for an AIM company, and largest ever convertible bond offering for an AIM company.
Meanwhile, Ferrum Crescent (LON:FCR) has refined the planned work programme at its recently acquired Toral project in Spain following an assessment of the exploration undertaken by its previous owner.
A 2011 Canadian standard NI 43-101 Technical Report showed inferred and indicated resources of 8.71Mt at an economic cut-off grade of 7% for lead and zinc.
Ferrum Crescent said it would use that and focus on re-mapping, re-logging historic drill core, in-fill surveys over the main prospect area and structural mapping of the existing adits and outcrops.
Meanwhile, work to upgrade the resource at the Sonora Lithium project in Mexico is well underway, according to the deposit’s owner, AIM and TSX-Venture-listed Bacanora Minerals Ltd (LON:BCN, CVE:BCN).
A near 4,000-metre infill drilling programme has been completed that will be crucial in this regard and 1,870 samples have been collected.
The results thus far have been encouraging.
The resource upgrade is an integral plank to a feasibility study being compiled for Sonora, in the north of the country, which is expected eventually to support a 35,000 tonne a year mine. Initial production will start at half that figure.
Meanwhile, Aim-quoted, gold explorer Goldstone Resources Limited (LON:GRL) is to start drilling deeper at the Homase/Akrokerri project in Ghana, it emerged this week.
Shallow drilling of an area in the AK02 prospect and identified by an augur programme last year returned a 14 metre intersection with a grade of 1.18 g/t gold and 8 metres at 1.88 g/t.
Interpretation of the data suggests the area between Homase and AngloGold Ashanti's nearby Obuasi Mine is prospective.
Finally, gold explorer Condor Gold PLC (LON:CNR) has started scout drilling at several smaller targets at its flagship La India project in Nicaragua.
The purpose of the 4,000 metre drill programme is to demonstrate the gold potential across the entire project, which is currently estimated to be host to 2.31 million ounces of gold.
The first 2,000m of drilling is to expand mineralisation at the El Cacao and Cristalito-Tatescame targets, as well as to test for mineralisation the Andrea vein, which has never been drilled.
The location of the final 2,000m of drilling will depend on initial drilling and may also be used to test other targets, Condor said.
“I am delighted that we have now prioritised several highly promising targets and are commencing scout drilling at El Cacao and Cristalito-Tatescame,” said chief executive Mark Child.
Jubilee Platinum PLC’s (LON:JLP) subsidiary, Braemore Nickel, has had its tailings supply agreement covering the Leinster nickel operations in Western Australia terminated by mining giant BHP Billiton plc (LON:BHP).
Braemore has told BHP that it rejects the notice since it believes there is no legal or factual basis for such a termination.
The subsidiary has been conducting an internal review of the Leinster project to try and improve its viability as part of an economic evaluation.