There was a lot of positive news out of the small cap mining sector this week, kicking off with Caledonia Mining (LON:CMCL TSX:CMCL, where higher production enabled the company to raise revenues and keep profits stable in its latest quarter despite the volatile gold price.
The miner’s 49%-owned Blanket mine in Zimbabwe produced and sold around 10,900 ounces in the three months to September, 10% higher than a year ago
The miner made its first ore sales in September having overcome the Ebola crisis to get New Liberty, Liberia’s first gold mine, up and running.
Currently Argentina-focused, Patagonia has agreed to acquire up to 100% of the Carreta Quemada and Chamizo projects through exploration expenditure of up to US$3.5mln and a put option on the amount of gold discovered.
In particular, a step-out hole (HTD-27) showed grades of 5.8 g/t gold and 0.7% copper from 88m down with a further intersection of 0.8 g/t gold at 231m.
The group recently sold its smelting and power generating operations in South Africa and is now fully focused on bringing its platinum tailings projects at ASA’s Dilikong chrome mine and with chrome group Hernic on stream.
The diamond drilling programme will target high grade copper zones identified around the Mahab 4 deposit on the Block 5 permit.
Feeding a rotary kiln electric furnace, 160 wet tonnes were processed over a continuous 11-day period.
Elssewhere, Atlantic Coal (LON:ATC) reported record production and sales in the year so far from its Pennsylvania mine, where it has now begun mining a 30ft seam of almost solid high grade anthracite.
This seam will be worked over coming months, providing feedstock to produce clean anthracite products and raw anthracite for sale to other processors, the AIM firm said.
Finally, mine developer International Mining & Infrastructure Corporation (LON:IMIC) has secured US$22mln of new debt that will fund its work on iron ore projects it owns in Cameroon.
In an update on its financing, it also said it had re-negotiated terms on existing loans totalling US$90mln that lowers the annual interest rate paid.