Daily Mining Monitor
Balamara Resources Limited (ASX:BMB) announced advise that it has been awarded the tender for a highly prospective exploration concession in the Balkans region which is strategically located immediately adjacent to the currently operating Suplja Stijena zinc-lead mine in north-western Montenegro. The concession area – known locally as the RAJKOV-SELIŠTE-ELEBI ore field, which Balamara will abbreviate to “RSC Project” (“RSC” or the “Project”) – comprises an extensive area of over 50sqkm, and is located immediately across the Montenegrin border in the Srpska Republic, which is part of Bosnia-Herzegovina. Balamara owns 80% of local subsidiary Western Mining Doo which has been awarded the rights to explore the RSC Project. The concession has had various forms of geological exploration over a 50-year period from the end of World War Two until late 1990’s, resulting in the establishment of a large database of information on geology, chemical and mineralogical composition, and morphological types of lead and zinc ore.
Drake Resources Limited (ASX:DRK) announced preliminary metallurgical results from its Granmuren copper-nickel discovery. The testwork confirmed that the mineralisation primarily occurs as the minerals pentlandite and chalcopyrite. Nickel concentrate grades of up to 13.3% nickel were obtained with a recovery of 48%, although at lower concentrate grades, higher recoveries were obtained. Copper concentrate grade of 13.3% with recovery of 87.2% copper in non-magnetic fraction of cleaner concentrates. The major iron sulphide present was pyrrhotite, a typically easier mineral to accommodate during flotation compared to pyrite. Precious metals were detected in 119 cumulative metres of the 304 metre hole, with grades up to 0.46g/t platinum, 0.2g/t gold and 0.075g/t palladium.
In this news:
• 173mt in-situ at Mkomolo, Namwele and Muze combined, of which 57.5mt Measured and Indicated at 17.42 MJ/kg (float density = 2.0, yield = 34.4%)
• 90% of this resource tonnage lies within Mkomolo and Namwele; Muze still to be fully evaluated
• Independent, commercial evaluation of Phase I mining at Namwele to commence April 2013
FD Comment: This resource update conducted by Sound Mining Solutions Limited ("SMS") of South Africa, has converted a significant proportion of the original inferred resource estimated by Wardell Armstrong into the measured and indicated categories. However, we still have considerable reservations about the coal quality and economics of the project. With a 34.4% yield to produce a low quality 17.42Mj/kg (4160kcal/kg) coal with high sulphur (3.4%), we can’t see how this would work.
Manas Resources Limited (ASX:MSR) announced a total Shambesai JORC compliant Measured, Indicated and Inferred Mineral Resource estimated from a new geological model totals 8.1Mt at 2.69g/t gold for 697,000 ounces of gold (cut-off grade of 0.3g/t Au
for Oxide Resources and 0.75 g/t for Sulphide Resources and including 0.5Mt at 1.9g/t gold for 29,000 oz of Inferred material). The total high-grade oxide Mineral Resource from surface increased more than 15% to 2.43Mt at 4.4 g/t gold for 346,000 oz (2.0 g/t cut off) of gold. The updated Mineral Resource estimate has increased the confidence levels of the estimate to include 1.2 Mt of resource classified as Measured, including 1.0 Mt Oxide and 0.2 Mt Sulphides, and increasing the Indicated Resource estimate by 1.1Mt. The Shambesai Gold Project is confirmed as having a Proven and Probable Reserve of 2.5Mt at 3.4g/t gold for277,000 oz of gold (allowing for mining losses and dilution) and all ore volumes to be included within the Bankable Feasibility study (BFS) will be in the Proven and Probable categories. A new ore reserve figure. forming the basis for the BFS with an independent assessment by Perthbased independent consultants Mintrex Pty Ltd is expected to be completed in April 2013.
In this news:
• Centerra to fund strategic alliance programme to explore for new gold projects in central Turkey - US$500k in year one with an option each year to fund further work for at least US$250k pa
• Centerra to have option to earn to 51% of any Designated Project Area ("DPA") by funding US$1m for exploration and development within two years of Centerra's election; and
• Stratex to have the right to maintain a 49% interest by funding future exploration and development on pro rata basis
FD Comment: Stratex has a good working relationship with Centerra, which following the US$20m sale of its interest in Öksüt has materially benefited shareholders. The new alliance covers a 35,480km2 area in central Turkey and will be managed by Stratex. This looks like a good deal for Stratex, with the exploration being funded by Centerra and Stratex do not wish to contribute beyond the 51/49 level, then Centerra will have the right to acquire a further 19%, for a total of 70%, by expending US$3m within the subsequent three years;
Stratmin Global Resources PLC (LON:STGR) announced that its first operations report for shareholders has been released today. It has made a maiden shipment of 20t of flaked graphite. The production ramp up is progressing in line with management's expectations - StratMin's plans begin with increasing the current capacity of around 180 tonnes per 20 day month to 300 tonnes with the introduction of already purchased flotation cells and then 600 tonnes with an additional shift as part of ramp up. The company is investing around US$0.5M to improve plant throughput, product quality and specification and site infrastructure. This includes a drilling rig purchased to optimise short term mining operations and to eventually upgrade JORC resources through proving up additional resources and exploration drilling
Uranium Resources PLC (LON:URA) announced that it has entered into a US$1 million loan facility agreement with its major shareholder and strategic investor Estes Limited. The Loan, which is unsecured, available for a period of 18 months and bears interest at LIBOR, will be used to fund working capital requirements. Pending publication of its maiden resource at the Company's flagship Mtonya uranium project in southern Tanzania, the Loan provides the Company with non-dilutionary financing while the Company awaits these results. Initially, the Company intends to draw down up to $200,000.
Wishbone Gold PLC (LON:WSBN) announced it has been granted two highly prospective gold licences, covering a total area of approximately 23,600 hectares, adjacent to its Wishbone II licence in north-east Queensland. The granting of these new licences, known as Wishbone III and Wishbone IV, consolidates the Company's position in the established gold region of north-east Queensland, and is in line with the Company's strategy to expand its portfolio of viable gold prospects to create shareholder value.
The larger of the two licences, Wishbone IV, is contiguous to Wishbone II to the east and to the north. Wishbone IV covers an area of 20,000 hectares and includes the east-west trending Alex Hill Shear Zone and associated areas containing NE and NW trending faulted structures, and related splay faults. The area is located along the same major trend held by Resolute Mining, Ltd ('Resolute Mining'), located approximately 15km to the west of Wishbone II, where substantial gold mineralisation at depth was recently discovered at the Welcome Deposit, producing some "exceptional first pass diamond drill intercepts" including drill holes showing 18m @ 3.92g/t gold from a depth of 215m, 19m @ 4.52g/t from a depth of 359m, 113m @ 7.7g/t gold from a depth of 316m and 50m @ 3.87g/t gold from a depth of 298m. Resolute Mining is undertaking additional diamond drilling to test the vertical and lateral extents of this potential new deposit and also reported in 2012 that several other Mount Wright-style targets in the district are ready for ground geophysical work and/or drilling.
The Wishbone III licence, which covers some 3,600 hectares, is adjacent to the Wishbone IV licence to the north, and is located along the Flinders Highway and Queensland Railway. Wishbone III is primarily an untested prospective geophysical target for shallow mineralisation below alluvium. Both licences have easy access to major highways with maintained roads, and existing tracks to support aggressive exploration programmes.