Mining News
Connemara Mining Company PLC (LON:CON) announced that the Connemara/Teck joint venture project on six licences in the Monaster/Stonepark area of Limerick continues to produce interesting results. Work this year has included a ground magnetics survey (around 15 sq. km) with the aim of delineating intrusive zones, which correlate with structurally controlled brecciation and mineralization. A high magnetic zone has been mapped on the junction between PLs 2637 and 2927. This area lies 5kms west of Stonepark North and to the north of the mineralisation at Rockfield (TC-2927-004- 0.59m @ 1.39% Zn), which has been identified as on a roughly N-S structural break from the airborne gravity data. Induced polarization (IP) surveys across the northern part of PL2927, have also delineated targets for more detailed follow-up. Planned work for the remainder of this year includes drilling to the east of drillhole TC-450-002, which intersected base metal mineralization grading 6.95m @ 1.13% Zn. Sampling of basal reef target horizons and the re-opening of two to three drill holes for geophysical logging along the completed seismic profiles will also be carried out.
Fox Marble (LON:FOX) has opened the Cervenilla quarry, the first of its three quarries in Kosovo in the District of Rahovec about a month ahead of schedule. Cervenilla , contains red and grey marble and all the required equipment is in situ and being readied to commence work according to the Quarry Development Plan. The local quarry staff, led by the Italian quarry master Bruno Lorenzoni (recruited from Carrara), is currently on the quarry site preparing to open the first bench from which it is expected that the first blocks of raw marble will be extracted in the coming weeks. In the period since the IPO, we have received a number of enquiries from around the world and expressions of interest in its marble. The first blocks of marble extracted will be sent to Carrara for processing into cut and polished slabs suitable for circulation as samples to potential customers.
Thor Mining (LON:THR) has released a 9.5% increase in the Indicated resource estimate for its Spring Hill gold project, in Australia's Northern Territory. The latest Spring Hill resource comprises 10 MT at 1.4 g/t for 450,000 contained ounces of gold (cutoff grade of 0.5g/t) or 4 Mt at 2.3 g/t (cutoff grade 1.0g/t). The revised resource was compiled following the recent completion by Thor of a drilling programme at Spring Hill - part of an earn-in work programme that now delivers Thor a majority 51% ownership of the project under its planned acquisition of an 80% interest. The Company believe the project area remains highly prospective for additional near surface mineralisation including previously identified satellite targets, and new targets identified from the evaluation of recently flown high resolution aeromagnetic (helimag) data. Low cost percussion drilling is likely to be utilised for first pass testing of these targets, scheduled for the 2013 dry season. Development evaluation options are also being assessed.
Wishbone Gold PLC (LON:WSBN) announced the commencement of a non-capital raising American Depositary Receipt ('ADR') Programme. Under the programme, ADRs in the Company's ordinary shares have commenced trading on the Pink OTC Markets Inc. Deutsche Bank AG ('Deutsche') has been appointed the Depositary Bank for the sponsored Level I programme, the intention of which is to broaden Wishbone's global investor base. ADRs are U.S. dollar-denominated shares traded on an American stock exchange issued by depositary banks in the US. Wishbone retains its primary listing on AIM.
Oil & Gas News
Clontarf Energy (LON:CLON): Farm-out Key to Progress - Today's news reminds the market of the Company's aims and objectives, but we are reiterating our belief that the key catalyst for a rerating of the share price is the successful farm-out of the 100% owned Blocks 183 and 188 in Peru. Given the cash balance of £0.49mm, a farm-out is key for initiating the next leg of the exploration programme. To date, the Company has done decent work on identifying leads and prospects on each block through re-processing of old seismic data. It believes Block 183 presents "compelling gas opportunity" and Block 184 offers oil-prone leads and prospects. The on-going discussion with a European power generation group, over a projected 160MW first phase power generation project provides ready market for gas resources on Block 183. The Company estimates prospective resources of 870bcf of gas and 45mm bbl of condensate. We look forward to progress on the farm-out deal.
In this news:
Block 183:
Estimated prospective reserves of 870bcf of natural gas and 45 million barrels of condensate according to latest most probable scenario.
Clontarf is in advanced discussions with a European power generation group, over a projected 160MW first phase power generation project, as well as with a leading natural gas distribution group.
Clontarf's technical team foresees natural gas off-take in the first phase of Pacaya production of 75 million cubic feet daily, of which approximately 45 million cubic feet will go to power production and 30 million cubic feet daily to other natural gas distribution markets.
Block 188:
In Block 188 the Company is mainly concentrating on working up oil-prone targets. So far the negotiations have followed a more standard farm-out format.
The Company also requires the drilling of one exploration well. This technical work would be funded by the partner. In negotiations to date, Clontarf Energy has proposed remaining as Operator, retaining a 50 per cent operating interest.
This is an existing oil discovery, drilled by Phillips Petroleum in 1999. The Company estimates a potential reserve of 30-45mm bbl of 37 degree API oil.
Sound Oil (LON:SOU): Cash Position Secured for Near Term - With a Cash balance of $6.2mm following receipt of the fourth tranche equity placement, the Company is fully funded for near term commitment expenditure across Nervesa and Rapagnano fields. Absence of debt and final approval for the Rapagnano Gas Field Development (Italy) expected anytime now, the Company is in strong position to raise more funds from both debt and equity instruments. Final Approvals for Rapagnano Field Development and drilling of Nervesa well presents the next catalyst for the stock price.
In this news:
The Company's current cash balance, following receipt of the fourth tranche payment of US$1.8 million which is due today, will be US$6.2 million, with no debt.
The remaining three tranches of the placement, assuming current share price levels, are expected to raise a further £3.5 million (US$5.5 million). In addition the open offer expected to be made to shareholders in March 2013 following the conclusion of the placement should generate up to a further £1 million (US$ 1.6 million).
The estimated total remaining expenditure across Nervesa and Rapagnano is some US$2.4 million (US$1.8 million on Nervesa and US$0.6 million on Rapagnano).
Magnolia Petroleum (LON:MAGP): Spuds First well as Operator - Company's exploration and development programme on the 800 acre lease on the Oklahoma is expected to gain more momentum following assumption of 100% operatorship, and today sees the start of that programme with the spudding of the first well targeting the Mississippi Lime formation. Previous well (Lois Rust 7-27-12 1H) in the Mississippi Lime Formation in Oklahoma flowed at an Initial production rate of 353 boepd. Magnolia believes that a further seven potential well sites could exist on this acreage. This has particular interest as it will lay down a marker for the competence of the management team and the clarity of its vision with regards to the future development of these properties. We look forward to further updates on the well.