Share Talk Weekly Mining Sector News – 7th August 2021

Another eventful week in the mining sector, with announcements from multiple companies.

Power Metal Resources PLC, (LON:POW) provided a positive update about the ongoing exploration drilling programme at the Silver Peak project in British Columbia. Twelve holes, out of a planned 25 diamond drill holes, have been completed and all have intercepted the high-grade Victoria Vein.

Earlier in the week, we saw another announcement  Kalahari Copper Belt – Significant Expansion The acquisition of eight prospecting licences (“PLs”) increases the strategic ground held by the South Ghanzi Project (“South Ghanzi” or the “Project”) by 229% to 4,257km2, making one of the largest licence footprints in the KCB. The acquisition was completed by the Project’s local operating company Kanye Resources Pty Ltd (“Kanye”), in which Power Metal and joint venture (“JV”) partner Kavango Resources plc (LON:KAV) (“Kavango”) each have a 50% interest.

Oriole Resources PLC (LON:ORR) provided an update on the 3,592 square kilometre (‘km 2 ‘) district-scale licence package in Central Cameroon (‘Central Licence Package’ or the ‘Package’) that was issued to the Company’s subsidiary, Oriole Cameroon SARL, and its partner Reservoir Minerals Cameroon SARL.

Glencore PLC (LON:GLEN) reported a 79% increase in interim profits due to higher commodity prices. The company also announced a special dividend, a US$650mln stock buyback and a positive outlook. Adjusted underlying earnings (EBITDA) rose to a record US$8.7bn in the first half for the commodity trading and mining company from US$4.8bn in the year-earlier period.

Caerus Mineral Resources (LON:CMRS), the exploration and resource development company focused on developing mineral resources in Europe to support the global “Clean Energy” initiative, announced a binding and exclusive Option Agreement (the ‘Agreement’) with Bezant Resources Plc (LON: BZT) (‘Bezant’) with regard to the development of the copper and gold-bearing hard rock resources within Caerus’ portfolio.

Fresnillo PLC (LON:FRES) reported a 59% increase in interim profits due to higher gold and silver productions and lower metal prices. Underlying earnings (EBITDA) rose to US$747.0mln from US$469.9mln in the first half of 2020 for the FTSE-100 miner.

Thor Mining PLC (THR.ASX.L) Appointment of Exploration Manager announces the appointment of Paul Wittwer as Exploration Manager, commencing from 2 August 2021. Nicole Galloway Warland, Managing Director of Thor Mining, commented: “On behalf of the board, I would like to welcome Paul to the Thor team. His background and experience adds considerable depth to our exploration team.

Jangada Mines PLC (LON:JAN) has received positive bench and pilot scale metallurgical test results on ferrovanadium-bearing titanomagnetite samples taken from the Pitombeiras ferrovanadium project. Pilot scale metallurgical tests were conducted at the Fundaco Gorceix mineral and metallurgy institute in Brazil and the company described the results as excellent.

Xtract Resources plc (LON:XTR) Bushranger phase two drilling, continuing progress of the Phase Two diamond drilling programme with the completion of the second hole at the Bushranger copper-gold porphyry exploration project in New South Wales, Australia. Colin Bird, Executive Chairman said: “Hole BRDD-21-007 was extended beyond the planned depth as the mineralisation in this hole was more persistent than anticipated. The next two holes in the current drilling phase have already commenced, with BRDD-21-010 progressing beyond 200m, and sparse copper mineralisation already evident. We are very pleased with progress to date.

TPI provides its latest research note on Cora Gold Limited (CORA.L).

Cora Gold Limited (LON:CORA) announced the ninth set of drill results from its largest-ever drilling campaign at its Sanankoro Gold Project (‘Sanankoro’ or ‘the Project’) in Southern Mali. The Company is focussed on targeting resource growth as well as infill drilling to convert existing Inferred resources to Indicated. The results to date have been extremely encouraging with good widths and high-grade results in generally shallow oxide ore.

Alien Metals Ltd (LON:UFO) Inaugural Drilling to commence at Elizabeth Hill – Australia’s highest-grade silver mine. Bill Brodie Good, CEO & Technical Director of Alien Metals, commented: We have completed a considerable amount of research reviewing over 20 years of historical data on this project area, combined with the recent work by Southern Geoscience and our other technical consultants. We are very excited to be commencing our inaugural drilling programme, which we feel will add significant understanding to the known silver mineralisation, as well as targeting what we believe to be an even larger mineralised system that the silver orebody sits within.

Kodal Minerals PLC (LON:KOD) said that the mining license application for its flagship Bougouni Lithium Project in southern Mali has been approved and that everything is moving as planned.  Bougouni Mining Licence application has now been forwarded from the Ministry of Mines, Energy and Water to the Secretary General’s office for final review prior to presentation at the Conseil des Ministres. This is the final stage prior to the signing of the Mining Licence and Kodal is informed that all is progressing as expected.

Kodal Minerals (KOD.L) licence application in final stages of approval

Jubilee Metals Group PLC (LON:JLP) Leon Coetzer, chief executive, described an extraordinary performance during the six-month period ending June 30, 2021. Coetzer highlighted that the company saw growth in each of its core business units – platinum group metal, chrome and its copper operation in Zambia – with the latter seeing its first earnings during the period.



Zak Mir commented in his weekly blog – JLP  continues to underline its cash making skills, announcing its unaudited operating results for the six months to 30 June 2021. These showed a year-on-year operational earnings increase of 178 % and a revenue increase of 133%. Combined attributable operational earnings in H1 2021 of £40.1 million (up 36% from H2 2020) resulting in a 178% year-on-year increase in combined attributable operational earnings to £69.6 million for FY 2021. Jubilee said its revenue and earnings growth was achieved during a period of substantial infrastructure investment, integration and planned operational downtime providing a platform for further future growth.

Trident Royalties PLC (LON:TRR) has published its second-quarter operating results. It noted significant asset level improvements at a number projects it holds royalties.

Bradda Head Holdings Ltd. (LON:BHL) an American-focused lithium development company, announced that it was granted permission to drill in Arizona as part of the Wikieup project.

Mkango Resources Ltd (MKA.TSX.L) To acquire 100% of both the Songwe Hill Rare Earth Project and Maginito It will also acquire the Songwe Hill rare-earths project. The company is also acquiring all of the Maginito business, which is a rare earth recycling business already part-owned by Mkango, as it seeks to take control of and accelerate an integrated mine, refine, recycle strategy.

Galileo Resources PLC (LON:GLR) announced that an agreement to sell nine Kalahari copper belt licences to Sandfire Resources Ltd at US$3mln was amended.

Goldplat plc (LON:GDP) the AIM-listed gold producer, with international gold recovery operations located in South Africa and Ghana, is pleased to announce an operational update for the twelve months ended 30 June 2021. The recovery operations achieved a combined operating profit for the twelve months ended 30 June 2021 of £5,300,000 (30 June 2020: £6,350,000) and a combined operating profit in the 4th Quarter of the financial year of £1,080,000 (4th Quarter – 2020: £2,546,000).

The Ghana operations continue to perform well as a result of steady supply of material and achieved an operating profit for the 4th Quarter of £729,000 (4th Quarter – 2020: £366,000 ). The South African operation achieved an operating profit for the 4th Quarter of £350,000 (4th Quarter – 2020: £2,180,000).

Rainbow Rare Earths (LON:RBW) Issued a market update, Further to the update on 29 June 2021 regarding the temporary suspension of trial mining operations from the Gakara Project in Burundi, Rainbow continues to engage with the Government of Burundi. During this Government-mandated suspension, operating costs in Burundi have been minimised, with the vast majority of staff placed on suspension, such that the ongoing situation is not having a significant impact on the Company’s cash flow forecasts.

Strategic Minerals PLC (LON:SML) announced that it could recover a portion of a claim for US$21.9mln from CV Investments.

Premier African Min (LON:PREM) has completed a new conceptual underground Conceptual Mine Plan for RHA (“Conceptual Mine Plan”) in conjunction with technical assistance from independent South African mine planning consultants, Bara Consulting (Pty) Limited (“Bara Consulting”), geological consultants Shango Solutions (“Shango”) and metallurgy and process engineer Multotec Process Equipment (Pty) Limited (“Multotec”).

Scotgold Resources Limited (LON:SGZ) continued to mine at Cononish in the Grampians as planned during July.

Botswana Diamonds (LON:BOD) provided an update on the analysis of samples from the drill campaign on the Thorny River diamond project. Initial indications from the sorting are positive. A two-week delay caused by local covid-19 issues means that the results will now be available mid-August. The positive initial indications encouraged BOD to plan for additional drilling on the untested ground between the river and the already discovered kimberlite blows. Site preparation is underway.

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