Amur Minerals* (LON:AMC) - Ikenskoe / Sobolevsky drilling results
Bluebird Merchant Ventures (LON:BMV, Standard List) - Batangas Gold project
BlueJay Mining (LON:JAY)* – Board changes
Strategic Minerals* (LON:SML) – Exploration programme at CARE
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Company News
Amur Minerals* (LON:AMC) 6.36p, Mkt Cap £38.9m- Ikenskoe / Sobolevsky drilling results
• Amur Minerals reports that the inaugural drilling results from its Ikenskoe / Sobolevsky in the Russian Far East have extended the known mineralisation by some 500metres towards the southeast and by up to 400 metres in the dip direction towards the northeast.
• “The average mineralised thickness is 28.5 metres (per ore hole) with the associated length weighted grades being 0.98% nickel and 0.28% for copper.”
• The company comments that the ”average grade of the newly defined mineralisation is substantially higher than that for the MRE [mineral resource estimate] reported average grades with nickel being 42% (0.69% versus 0.98%) higher and copper being 65% (0.17% vs 0.28%) higher.”
• Amur Minerals goes on to note that “Based on the substantially higher grades and size of this new mineral block, there is good potential to nearly double the currently reported IKEN MRE from 146,000 tonnes of nickel and 36,000 tonnes of copper.”
• The company identified five key objectives for the drilling programme and has, so far, achieved two of these; namely the determination of the limit of mineralisation for mine planning purposes and the confirmation of the geological structure.
• The third key objective of expanding the resources towards the south east seems to be well in hand while outstanding objectives the requirement to undertake detailed resource verification drilling in order to substantiate the application to the Russian authorities is being planned as is the further additional drilling required to obtain a sample for metallurgical test work.
• CEO, Robin Young commented that the early start to the 2017 drilling campaign “we have been able to begin our resource expansion portion of the drill programme at Kun Manie sooner than anticipated. … we are now beginning to conduct resource expansion drilling along the eastern limits of this same 2500 metre target.”
• Conclusion: The 2017 drilling campaign has identified significant resource expansion potential at higher grades than the current resource. Drilling is continuing in order to produce data for metallurgical testing and detailed information required by the Russian authorities as part of the mining operating permit.
*SP Angel act as Nomad and broker to Amur Minerals
Bluebird Merchant Ventures (LON:BMV, Standard List) 1.8p, Mkt Cap £3.3m - Batangas Gold project
• Bluebird Merchant Ventures holds 100% of the Batangas gold project in the Philippines and not 25% as we mentioned last week.
• A pre-feasibility study on Batangas done on 15 June 2016 reported:
o capex $16m
o 128,000oz gold in open pit reserve
o Grading 4.2g/t
o Cash costs $735/oz
o Free Cash Flow generation $34m
o NPV 19m assuming a gold price of US$1,250/oz
o IRR 27%
*SP Angel act as broker to Bluebird Merchant Ventures
BlueJay Mining (LON:JAY)* 13.5p, Mkt Cap £103.5m – Board changes
• Blue Jay Mining has announced the appointment of Mr Peter Waugh, an experienced titanium dioxide pigment industry expert, as a non-executive director.
• Mr Waugh has been working with the company in a consulting role since February 2016 and is to assume responsibility “for leading efforts to establish Bluejay as a significant global supplier of ilmenite for the titanium dioxide industry”.
• In more than 30 years in the international pigment industry, he has plant management experience as well metallurgical and marketing experience gained with major companies, Tioxide Group and Huntsman Pigments where he was Director of Technology and Engineering and then lead the Continuous Improvement effort of the Group.
• The company has also announced that the Non-Executive Chairman, Graham Marshall, “will be stepping down from his role … but will continue working with the Board as Non-Executive Director. The Company is currently progressing its search for a replacement.”
• Conclusion: Blue Jay Mining has appointed an experienced industry expert to help lead the company as it seeks to become a globally significant player in the titanium dioxide industry.
Strategic Minerals* (LON:SML) – 2.15p, Mkt Cap £26.8m – Exploration programme at CARE
• Following the completion of its acquisition of CARE (Central Australian Rare Earths) in May 2017, Strategic Minerals has confirmed that it is to undertake a three-stage exploration campaign during the second half of 2017.
• The campaign will be fully funded from internal cashflow following the expansion of Strategic Mineral’s Cobre magnetite business where it commenced long term 4000tpm contract with a major new customer in June.
• Stage 1 of the CARE exploration programme comprises approximately 2000 metres of aircore drilling at Hanns Camp in the Laverton area of Western Australia. The drilling will focus on the recently identified cobalt potential as well as newly defined laterite targets.
• Stage 2 is to involve up to three deeper diamond-drill holes at Hanns Camp - results are expected during the second half of 2017.
• Stage 3 work is directed at the company’s Mount Weld tenements, which are located approximately 30 km south of Hanns Camp adjacent to the Lynas Rare Earth Project. The initial work will comprise soil sampling and is expected to occur during Q3.
• Conclusion: The staged approach to exploration at Hanns Camp and Mount Weld should help the company to generate the best value from its exploration campaign and help it to run a cost effective programme. Unlike many exploration companies, the ability to use its own internal funding is a point of difference.
*SP Angel act as Nomad and joint broker to Strategic Minerals