Share Talk Weekly Mining Sector News Round-Up, Saturday 20th August 2022

As l have been saying the last couple of weeks, with so many basement bargain stocks around, and with resources, demand is outgrowing supplies, something has to give, sooner rather than later.

Well, Power Metal Resources (POW), has just proved that point and the shares have now doubled from their early July floor.

Author @ABMckinley

Here is Zak’s take: After what has seemed like thousands of RNS’s in recent years, Power Metal Resources (POW), said it was putting out a significant RNS, and it actually has. The announcement that did it, and has meant that the shares have now doubled from its early July floor. The company said, “today’s exploration news is, in my view, potentially one of the more significant the company has released in its 3-year history as Power Metal. We have confirmed that drillhole K1-6 at Molopo Farms, drilled during the 2020/2021 programme, intersected the edge of a very large-scale and strong magnetic conductor.”

China’s July coal imports from Russia rose 14% from one year ago to their highest level in at least five decades. This was because China purchased discounted coal, while Western countries avoided Russian cargoes due to its invasion of Ukraine.

Russian thermal coal, which has a heating value exceeding 5,500 kilocalories (kcal), was traded at $150 per tonne cost-and freight basis in July. However, coal of the same quality at Australia’s Newcastle port was valued at $210 per tonne free-onboard (FOB).

China’s Customs Data showed that Australia had not shipped any coal to China in July.

Beowulf Mining PLC (AIM: BEM) Unaudited Financial Results for the Period Ended 30 June 2022.

Kurt Budge, Chief Executive Officer of Beowulf, commented: During the quarter, Kallak has been the real focus; Ulla Sandborgh joining the Company as CEO of Jokkmokk Iron was a major step forward, as we seek to strengthen and diversify the leadership team, and accelerate technical, environmental, and social workstreams. SRK has been contracted to complete the Scoping Study; having previously been engaged in 2017, the SRK team has deep knowledge of the project.

Ariana Resources PLC, (AIM: AAU) reported an increase in estimated resources for the Apliki copper mine in Cyprus.

According to the most recent mineral resource estimate (MRE), Apliki has a measured, indicated and inferred resource (Mt) of approximately 17 million tonnes at copper grades ranging from 0.26% up to 0.69%.

Greatland Gold PLC (AIM: GGP) Said that Newcrest has elected not to exercise the option under the Havieron JV agreement to acquire an additional 5% interest in the JV from Greatland at the price of US$60m determined by the independent adjudicator, which was based on data up to 15 December 2021.

The Board is delighted that Greatland will retain 30% ownership in the Company’s flagship asset and believes this outcome delivers substantial medium to long-term value to Greatland. Greatland had previously made a non-binding offer to Newcrest to acquire for US$85m a 5% stake in Havieron which, in the opinion of the directors, still presented a financially compelling outcome to Greatland shareholders.

Altona (AQSE: ANR.PL), a mining exploration company focused on the evaluation, acquisition and development of Rare Earth Elements (“REE”) mining projects in Africa, said it has conditionally raised £1.1 million, via a placing of 13,750,000 million new ordinary shares at 8 pence each.

Assuming the Placing is concluded the Company will issue warrants to incoming investors on a one-for-one basis, exercisable at 12 pence per share, which carry an expiration date of two years from Admission. The Company will also issue a “piggyback” option at 18 pence, with a three-year life from Admission, which will be issued to investors who exercise their 12 pence warrant within the “trigger” period. This trigger period is within 30 days of the share price trading above 12 pence, on a volume-weighted average price (“VWAP”) basis for 10 consecutive days.

Bens Creek Group PLC (AIM: BEN) raised £6.0mln before expenses to help it transition to an operator and equipment owner, and to stop using contractors.

Through the placement of nearly 10m shares at 30p each share, £3mln was raised. It also issued approximately 10mln shares to MBU Capital Group Ltd, Mohammed Iqbal, the beneficial owner of MBU, and Bluestar Global Capital Ltd.

Botswana focussed metals exploration company Kavango Resources plc (LSE: KAV) successfully concluded its “Proof of Concept” exploration programme in the Kalahari Suture Zone (“KSZ”).

This is the most comprehensive exploration programme ever undertaken in the KSZ and the results will guide the Company’s future commercial strategy.

Chief executive Ben Turney stated that Kavango had completed the most extensive and successful exploration program ever undertaken on the Kalahari Suture Zone.

Empire Metals Ltd. (AIM: EEE) stated that an airborne magnetic survey had identified a significant structure at Pitfield copper-gold mine in Western Australia.

This structure is very similar to a 7km copper anomaly that was identified by previous owners in surface sampling in the early 1990s.

Anglo Asian Mining PLC (AIM: AAZ) has committed to buying exploration data for its newly awarded concessions in Azerbaijan, the Garadagh, and Xarxar areas.

It will pay AzerGold (the previous holder) US$3.3mln to Garadagh for data and US$0.7mln to Xarxar.

Altus Strategies PLC (AIM: ALTS) stopped trading on AIM on Wednesday, following the merger of the company with Elemental Royalties Corp, which created a significantly larger gold royalty company.

Elemental will be renamed Elemental Altus Royalties Corp. It will continue trading on the Toronto Stock Exchange’s Venture Exchange as Elemental Altus Royalties Corp under the symbol ELE.

Power Metal Resources plc (LON: POW)  announces an update in relation to the Molopo Farms Complex Project targeting a large-scale nickel-copper-platinum group element discovery in southwestern Botswana.

Paul Johnson, Chief Executive Officer of Power Metal Resources commented: Today’s exploration news is, in my view, potentially one of the more significant the Company has released in its 3-year history as Power Metal.

We have confirmed that drillhole K1-6 at Molopo Farms, drilled during the 2020/2021 programme, intersected the edge of a very large-scale and strong magnetic conductor. Significantly, drillhole K1-6 highlighted that the edge of the magnetic conductor was mineralised, with widespread nickel sulphides demonstrated from assay testing and follow-up petrological analysis.

Empire Metals Ltd (AIM: EEE) provide an update on the reverse circulation (‘RC’) drilling programme recently completed at the Eclipse-Gindalbie Gold Project, situated 55km north-east of Kalgoorlie, in Western Australia.

26 RC holes drilled, for a total of 3,360m, focused mainly on extending the known mineralised trends, along strike and at depth, around some of the historical gold mines such as Homeward Bound, Bulletin, Eclipse and Jack’s Dream as well as the small pit at Budd’s Find.

China holds a monopoly in global natural graphite production for more than 30 years. It produces between 60% and 80% of all the world’s natural graphite.

The high prices and the number of advanced projects around the world mean that there is a lot of potential for geographic changes in the distribution of natural graphite markets.

KEFI Gold and Copper PLC, (AIM: KEFI) stated that it had ‘reaffirmed its plans’ with Ethiopian authorities to begin work at the Tulu Kapi mine of gold in October.

Tulu Kapi’s initial gold pour should coincide in 2024 with the start of production at KEFI’s second major Saudi Arabian project, Jibal Qutman.

Empire Metals Ltd. (AIM: EEE) reported that a recent drilling program at the Eclipse Gindalbie gold mine in Western Australia yielded multiple important intercepts.

26 holes were drilled to extend the mineralised trends along strike and at a depth around the historic gold mines Homeward Bound and Bulletin, Eclipse, Jack’s Dream, and the small Budd’s Find pit.

Xtract Resources plc (AIM: XTR) Bushranger Project – Results of Scoping Metallurgical Test Work Programme reporting the results of a scoping metallurgical test work programme carried out on four samples from the Racecourse and Ascot deposits at Bushranger.

The samples were representative of the anticipated average copper grade of the deposit, ranging from 0.33-0.48% Cu, with minor silver (1.1g/t to 3.3g/t) and trace gold (0.007g/t to 0.04g/t), other than the more gold-rich Ascot sample which assayed 0.30g/t Au

Caracal Gold PLC, (LSE: GCAT) stated that second-quarter production at its Kilimapesa mine produced in line with expectations. The expansion project at the mine also achieved significant milestones.

It produced 746 ounces from the Kenyan mine and its first production from the pilot heap-leach plant. The quarter saw the completion of construction and commissioning of a second heap-leach pad. Work on a third pad was completed at 80%.

Wishbone Gold Plc (AIM: WSBN, AQSE: WSBN) announced a second drill rig for the Company’s Red Setter Gold-Copper Project in the Patersons Range area in Western Australia, is now on site and drilling.

DDH1 Drilling, with extensive drilling experience in the Patersons Range, will mud rotary drill through the Permian cover to a depth of about 130 metres and then diamond drill through to the target zones identified by magnetic modelling.

The Red Setter Project is situated on the 57.4km2 wholly owned exploration licence EL45/5297 and is located 13 km south-west of Newcrest Mining’s Telfer Gold-Copper Mine and 60km west of Newcrest and Greatland Gold’s Havieron gold-copper discovery.

Tirupati graphite PLC (LSE: TGR) has ordered the Vatomina preconcentrate facility in Madagascar. It announced that it had overcome recent operational challenges, which has helped its shares increase by 10%.

Construction and relocation of Vatomina’s first 9,000-ton per year plant, which will remove between 80% and 90% of impurities from ore, is now complete. The preconcentrate and final concentrate plants have been recommissioned and synchronized in operation.

AfriTin Mining Ltd, (AIM: ATM) has completed Phase 1 of its expansion project at the flagship Uis polymetallic mining mine in Namibia. The project can now move into the commissioning phase.

The new circuits will need to be commissioned in two stages. The dry plant has been commissioned and will be complete by the end of this month. Meanwhile, the commissioning of the wet plant is scheduled for September.

Panthera Resources PLC, (AIM: PAT) stated that it expected to receive drilling results from Mali’s Bassala project and an Induced Polarisation survey at Burkina Faso’s Bido project by the end of the month.

Panthera, AIM-traded, announced last month that it had completed its latest drilling program at Bassala. Samples were also sent to the laboratory for analysis.

Vast Resources plc (AIM: VAST) announced the official opening ceremony for the Takob joint venture project at the Takob Mine in Tajikistan (“Takob Processing Project”) with Open Joint Stock Company Korkhanai Boygardonii Takob (“Takob”) has taken place today.

The Company was represented by Andrew Prelea, Chief Executive Officer along with other representatives of the Company’s strategic partners in Central Asia Minerals and Metals Ore Trading FZCO, including Mr Abdul Jabbar Abdullah Ali Gargash.

East Star Resources PLC, (LSE: EST) announced that it was awarded three new licenses for the Rudny Altai volcanogenic huge sulfide belt (VMS) in Kazakhstan.

Two historic operating, high-grade copper-lead zinc mines were included in the new licenses: Pokrovskoye (and Talovskaya) and Verkhubinskoye (one known deposit). There are also many historical mineral occurrences.

Castillo Copper Ltd (ASX: CCZ, LSE: CCZ) has refocused its efforts on increasing confidence in its mineral resource across all three Australian assets. This was after the signing of an option agreement to transfer the company’s Zambian assets from Hyperion Copper.

The Broken Hill Alliance (BHA), Cangai Copper Mine, New South Wales, and the NWQ Copper Project, Queensland – all three projects of CCZ have a combined global mineral resource totalling 173,735 tonnes of copper and 21,709 tons of cobalt.

Author @ABMckinley

The opinions expressed here are those of the author

Disclaimer: This blog is provided for general information and It does not constitute investment advice, not buy or sell shares, warrants or bonds in any companies written about within the blog. Information is taken from publicly available sources and any comment is that of the author.

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