Share Talk Weekly Mining Sector News Round-Up, 19th December 2021

It’s been another busy week across London’s junior mining sector.

Kavango Resources PLC (LSE: KAV) completed the first downhole electromagnetic survey at Hole KSZDD002 in Botswana. It reached a depth of 350m and showed strong indicators of electrical conductivity. As originally planned, Hole KSZDD002 is oriented towards the centre of the B1 Conductor. The Company estimates it will intercept the B1 Conductor between 525m and 575m.

Kavango’s chief executive Ben Turney stated: “We now know the clearest indication that Hole KSD002 is on track to intercept a major conductor.

Xtract Resources plc (AIM: XTR) Bushranger Project Phase 2 Drilling Update. Drill hole BRDD-21-036 tested the southern end of the Racecourse Inferred Mineral Resource, intersecting zones of alteration and variable strength visible copper mineralisation.

Drillholes BRDD-21-031, 032 and 034, were drilled to test IP geophysical anomalies to the southeast, well beyond the current limit of the Racecourse resource. All three holes intersected extensive zones of porphyritic alteration, along with traces of chalcopyrite, with some weak traces of mineralisation.

Trident Royalties PLC (AIM: TRR) has signed an agreement for a US$40mln secured lending facility with Macquarie Bank.

This facility will allow Tribeca to retire a US$10mln existing secured loan. The balance will be used to purchase the Orion Resources gold offtake streams.

Power Metal Resources plc (LON: POW) update in respect of Company share warrants. Update Regarding Exercise of Warrants Expiring December 2021

In total the exercise of the December 2019 Warrants to date has raised an additional £1.27 million for the Company and in total all warrant exercises in 2020/2021 have raised circa £4.27 million.

Pembridge Resources PLC (LSE: PERE) raised £400,000 via a placing loan and convertible loan to help it tide over until cash comes through from Canada’s Minto mine.

Liberum has revised its valuation of Atlantic Lithium Limited  (AIM: ALL) following an “impressive” updated scoping report on the Ewoyaa Spodumene Lithium Project in Ghana.

The broker raised its price target from 32p to 46p per share based on its expectations of the definitive feasibility study.

Jubilee Metals Group PLC, (AIM: JLP) will set up an international division to distribute its metals processing IP globally.

The group was able to achieve great success with tailings projects in South Africa, Zambia and more recently, with revenues rising to £133mln. Underlying profits rose to £52mln. It stated that it is now looking to expand into other areas.

Bens Creek Group PLC (LON: BEN) A coal lease agreement on contiguous property. The Board believe that the additional acreage will add substantially to the life of the underlying Bens Creek operations and help cement the Group’s position within the industry. The royalty rates we have put in place on the tonnage are similar to the existing Bens Creek mine and, should the Met coal price remain at current levels, be financially attractive for the Group.

Harvest Minerals Ltd (AIM: HMI) announced that a solar facility has been completed to supply 100% of the electricity required by the group’s Arapua fertiliser plant in Brazil.

The new source of renewable electricity will reduce operating expenses by 7% per year while reducing the impact of rising electricity prices on profit margins.

Eurasia Mining PLC (AIM: EUA) Tier-1 scale JORC MRE at NKT ex-operating Ni mine. The company announced a tier-1 scale JORC Mineral Resource Estimate (“MRE”) by Wardell Armstrong International (“WAI”) at Nittis-Kumuzhya-Travyanaya (“NKT”) nickel dominant nickel-copper-PGM mine formerly operated by Norilsk Nickel.

Wardell Armstrong International (WAI) prepared a JORC-compliant resource that estimates 305,000 tonnes and 143,000 tonnes respectively of nickel and copper. There are also 57 tonnes of platinum group metallic (PGM), and 11.2 million ounces equivalent of gold for underground mining operations.

Christian Schaffalitzky, Executive Chairman of Eurasia commented: ” The Directors are jubilant to complete an important milestone of our first of a series of JORC mineral resource estimates, that the WAI team has been working on since April this year. We are delighted that a relaunch of the NKT nickel-dominant mine generates a significant NPV of $1.2-1.7bn under various price scenarios.

Blencowe Resource PLC (LSE: BRES) is currently developing the Orom Cross graphite project in Uganda. Lone Star Tech Minerals, a leading expert in graphite, has been appointed to help with its marketing and sales strategy.

Lone Star will conduct an analysis of concentrates and technical specifications. It will also review the graphite market to identify products and potential opportunities.

Sovereign Metals Ltd (AIM: SVML) Kasiya Study Confirms Significant Rutile Project in Malawi.

The Scoping Study confirms Kasiya as a globally significant natural rutile project. Kasiya is the largest undeveloped rutile deposit in the world and therefore is highly strategic in a market characterised by extreme supply deficit.

This initial Scoping Study develops the concept for a multi-decade mine providing a stable supply of a highly sought-after rutile (TiO2) and graphite whilst contributing significantly to the economy of Malawi.

Pan African Resources PLC (AIM: PAF) stated that it is in a strong position to exceed full-year production guidance exceeding more than 195,000 ounces. It expects to produce approximately 105,000 ounces gold in the six-months ending December, a 6.7% increase over the year-earlier period.

It also announced that it had conditionally agreed to purchase Blyvoor Gold Operations Ltd (Pty) Ltd. This includes six historic tailings storage facilities totalling more than 1.4 Million ounces of contained ore gold. The transaction will be funded by ZAR110mln (£5.2mln) cash. This transaction will be funded internally using cash resources.

Bezant Resources PLC (AIM: BZT) provide shareholders with an update on the Caerus Joint Venture programme underway in Cyprus.

The Joint Venture partners have focused on the Troulli Project where the team is currently building both gold oxide and copper sulphide hard rock resources from new discoveries and extensions to a former open pit.

Bernard Aylward, chief executive of Kodal Minerals (AIM: KOD) stated that the company’s mining license at Bougouni had been granted at an “opportune” time.

He stated that the granting …. finalises the permits required for the development, construction, and operation of the mine.

ECR Minerals plc (LON: ECR) announced the granting of two gold exploration tenements in Victoria, Australia.

ECR Minerals plc has 100% ownership of the Bailieston Project (EL5433) and the Creswick Project (EL006184), both of which are currently undergoing intense exploration by ECR’s wholly owned Australian subsidiary Mercator Gold Australia Pty Ltd (“MGA”).

Mercator Australia Pty Ltd (MGA) is the Australian subsidiary of the company. It has been conducting exploration work at the Creswick and Bailieston gold projects in central Victoria. The addition of these tenements will allow the subsidiary to increase its permitted gold exploration area to 523km2.

ECR Chairman David Tang commented: “On behalf of the board and our team on the ground in Victoria, I am very pleased to announce that we can confirm the award of exploration licenses EL006907 and EL007484. In particular, the granting of license EL006907 linking Creswick to Ballarat East-Nerrina goldfield was something our former CEO Craig Brown always viewed as a key step in developing our Creswick interests and our understanding of the Dimocks Main Shale.

First Equity, a research house, has analyzed the preliminary economic analysis (PEA) of Blencowe Res PLC (LSE: BRES) Graphite Project and put a value on the business that is orders of magnitude higher than what the market assigns to it.

According to the PEA, the Orom-Cross graphite property in Uganda has a net present value of £240mln. It also highlighted the low operating costs of Orom and the amount of investment needed to get it up and running, which was approximately £60mln.

William Dawes, CEO, Alexander Lemon, President of Mkango Resources (AIM/TSX-V: MKA) Interview. Mkango announces the commencement of the final stage of hydrometallurgy pilot plant test work for the Songwe Hill Rare Earths Project in Malawi.

Share Talk spoke with the MKA team about the development of the Songwe project in Malawi, how well the share price has performed this year and what can shareholders look forward to in 2022?

It said that it has begun the final stage in hydrometallurgy pilot plant testing work for the Songwe Hill Rare Earths Project in Malawi. After a lengthy phase of flowsheet development and optimization, the company stated that the test work was completed at the Australian Nuclear Science and Technology Organisation in Australia (ANSTO).

Europa Metals Ltd (AIM: EUZ) stated that the results of an independent study that assessed water conditions and drainage at the Toral project in Spain were in line with the company’s current development model for underground lead-zinc mines.

The company stated that the completion of the hydrogeological study over five months is an important part of de-risking this project.

Sovereign Metals Limited (LON: SVML) announce that its shares will be admitted to the AIM market of the London Stock Exchange to further raise the Company’s profile in the northern hemisphere and facilitate the participation of UK and other European investors in Sovereign’s growth.

With the Scoping Study for the Kasiya Rutile Project (Kasiya) due to be published in the coming days, the AIM admission seeks to position Sovereign for the next stage of its development.

The Company’s shares will trade on AIM with the code of SVML and will continue to trade on ASX as normal with a code of SVM.

Kibo Energy PLC (AIM: KIBO) announces that its non-executive chairman, Mr. Christian Schaffalitzky, will retire from the board early in 2022. Mr Schaffalitzky’s decision is part of his retirement planning as he reduces his workload across his business interests.

The Company has commenced the search for a new non-executive chairman with a strong track record in the renewable energy field and expects to make an announcement early in 2022.

Cora Gold (AIM: CORA) is advancing the Sanankoro Gold Project, located in Southern Mali, towards production with construction anticipated to commence in 2022.

The scale and economics of the potential mine are expected to be defined in a fully-funded definitive feasibility study, which is already underway and is due for completion in H122. Given the recent 200% increase in the total JORC 2012 mineral resource estimate, to 809,300 ounces of gold, at a grade of 1.15g/t Au, it is likely that the definitive feasibility study economics will be a significant improvement on those published in the 2020 scoping study that returned an NPV8 of US$30.9 million (£23.3m) and an IRR of 84%.

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