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Aureus Mining, Kalimantan Gold, London Mining, Minera IRL and others feature in Fox-Davies Newsflash

Last updated: 04:15 09 May 2013 EDT, First published: 03:15 09 May 2013 EDT

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Daily Mining Monitor

Aureus Mining (LON:AUE) announced the release of its unaudited consolidated interim financial results for the quarter-ended March 31, 2013. During the March quarter the Company made a loss of $845k. At the end of the quarter the Company had $68.9M of cash on hand. A feasibility study has been completed on the New Liberty Gold Project and construction has commenced with initial earthworks. The Project is expected to have an eight and a half year mine life and annual production of 120,000oz for the first five years of production. The Company has financed the Project's equity funding requirement and is in advanced discussions with interested parties to fund the balance.

Kalimantan Gold (LON:KLG) announced that it has been granted a further extension of the Forestry Permit for its PT Kalimantan Surya Kencana ("KSK") sixth generation Contract of Work. The Forestry Borrow to Use extension now covers all the priority areas sought when the application was made in autumn 2012 including the Tumbang Huoi, Baroi and Mansur prospects, which are historically three of the most prospective exploration targets within the CoW (see map that follows). Fieldwork and mobilization of equipment will commence immediately on all of the newly permitted prospect areas.

Further, the deep drilling programme has been completed at Focus One and drill pads are now being prepared at the gold-rich Mamuring Prospect. The second deep rig is drilling hole BKD04-01 at South Beruang Kanan. Two shallow holes have been completed at Rinjen and a third hole is commencing. Shallow drilling to 300m is underway at Beruang Kanan on drill hole BK051-01. KLG has purchased a new drill rig which will be mobilized to the KSK CoW in May. The drill pad for the new rig at Beruang Tengah Bukit Dea zone to test further high-grade gold surface anomalies to 600m has been completed. Two 600m drill holes are also planned at the Beruang Low Zone copper gold porphyry target and locations have been selected.

Surface mapping and sampling has recently been completed at the Volcano, Rinjen, Focus One, Mamuring, Ketambung, Low Zone, and Bukit Dea prospects. Surface mapping is underway at Beruang West Zone where high-grade copper samples were recovered in previous surveys. Long line (4km) IP surveys are in progress over the Beruang Kanan, Low Zone and Beruang Tengah prospects. The permitting process for airborne gravity and high resolution magnetics geophysical surveys covering the entire CoW is on-going and progress is being made.

London Mining (LON:LOND) announced that in the March quarter 706,000wmt of iron ore concentrate were produced, a 29% increase on the previous quarter. Sales totalled 589,000wmt, a 52% increase on the previous quarter. An annualised export rate of 3.9Mwtpa was achieved in April following arrival of first self-propelled barge mid-month, with second self-propelled barge contracted to arrive in June. The production guidance of 3.3 to 3.6Mdmt and sales guidance of 3.6 to 3.8Mdmt has been maintained for 2013. Production from the gravity circuit as well as a 5Mtpa run rate is expected Q4 2013.

Minera IRL (LON:MIRL) announced the discovery of three new gold vein systems in Patagonia, Argentina. These are the Cecilia Prospect which hosts an undrilled, 2km long, vein system with recent surface diamond saw channel sample results up to 19.3g/t gold, the Paula Andrea Prospect is an undrilled vein system with recent surface diamond saw channel sample results up to 54.4g/t gold and the Goleta Prospect, recent surface sampling returned scattered gold values up to 24.9g/t gold over an area of 600m by 400m. All three prospects are in close proximity to the planned infrastructure for the Don Nicolas Project, where financing negotiations with Argentina based funds are currently progressing.

FD Comment:

This is good news. All three veins lie within 6km of the Don Nicolas project and demonstrate the high prospectivity and growth potential of the Deseado Mass.

Tertiary Minerals (LON:TYM) announced an update on the MB fluorspar project in Nevada, USA. Meetings were held with potential drilling contractors and a shortlist of contractors will now be asked to provide detailed drill quotes. The drilling industry in Nevada is experiencing low utilisation levels at present and the Company expects to secure competitive pricing. It is anticipated that drilling will commence in or around June/July and will be carried out in two consecutive phases.

Phase 1 will comprise a short drill programme twinning diamond and lower-cost percussion drilling techniques to evaluate the most cost-effective drilling technique for the MB Project. Suitable analytical techniques for fluorine will also be evaluated during this first phase and the diamond drill holes should provide sufficient diamond core for use in preliminary metallurgical testing.

Phase 2 will follow-on when analytical results from Phase 1 become available and will employ the most appropriate drilling technique. The objectives of Phase 2 drilling will be to:

Define, on the south side of the 1known fluorspar deposit, a 2 JORC compliant Mineral Resource of sufficient size to support planning of a mine-starter pit for up to the first ten years of production

Indicate the extent of higher grade areas in the centre of the known deposit

Test, on the north side of the known deposit, an alternative site for a mine-starter pit.

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