Share Talk Weekly Mining Sector News Round-Up, Saturday 23rd July 2022

United Kingdom Government Releases the ‘UK’s Critical Minerals Strategy’ Policy, Paper

Author @ABMckinley

Power Metal Resources plc (LON: POW) the London-listed exploration company seeking large-scale metal discoveries across its global project portfolio notes the publication today by the United Kingdom’s Department for Business, Energy & Industrial Strategy (the “Government”) released a policy paper entitled “Resilience for the Future: The UK’s critical minerals strategy” (“Policy Paper”)

Shanta Gold (AIM: SHG) is “firmly on track” following a second quarter that saw a 54% increase in gold production. This beats estimates by 21%.

The AIM-listed mining company that primarily operates in Tanzania reiterated its year-end production guidance of 68-76koz. However, Liberum analysts have raised their expectations to the higher end of this range.

Kavango Resources plc (LSE: KAV) released an Independent Conceptual Economic Viability Report (the “Viability Report”) for the Iron Oxide Copper-Gold target (the “IOCG Target”) at the Great Red Spot within Target Area B in the northern (Hukuntsi) section of the Kalahari Suture Zone (“KSZ”).

The IOCG Target at the Great Red Spot exhibits similar geophysical signatures to the Olympic Dam IOCG ore-deposit that is owned and operated by BHP in Australia.

Base Resources (AIM: BSE) quarterly revenues reached a new record, as all three of its minerals sands metals saw sharp increases in prices over the past year.

“Markets for all products remained strong with further price increases achieved for zircon, rutile while net prices for ilmenite were steady,” stated the Australian-based miner. However, China’s COVID-19 management policy will likely ensure that prices remain steady in the current quarter.

Greatland Gold PLC (AIM: GGP) stated that Newcrest, the partner, will need to pay US$60mln in order to purchase an additional 5% share in the Havieron Gold Project in Western Australia. This was after an independent arbitrator’s ruling.

The failure of the parties to agree on the price resulted in the appointment of an adjudicator. This was stipulated when Newcrest purchased the prospect in 2019.

Kazera Global PLC (AIM: KZG) Transformational deal on Lithium.  The company announced that it has signed an agreement to secure an investment of US$ 7.5 million in return for a 49% stake in the Company’s marketing, sales and export subsidiary (“SPV”) for all lithium production from the Company’s wholly owned mine at Tantalite Valley, Namibia.

The transaction values the Company’s lithium assets alone at in excess of US$15 million.

PYX Resources Ltd (LSE: PYX) stated that it has increased its production volumes and begun producing rutile & ilmenite byproducts at its Mandiri Mine in Indonesia.

The premium zircon prices have increased further to US$2,749/tonne in the first half of 2022, an increase of 92% over the previous year.

Tirupati Graphite’s (AIM: TGR) stock price jumped 52% to 36p following its announcement that it will increase its primary flake graphite manufacturing capacity in Madagascar by 30,000 tonnes per year by September 2022. As the junior had previously stated, it was having difficulties reaching production targets in the first quarter due to adverse weather conditions that made transporting the mined ore to the plant difficult. This seemed like confirmation that things are improving quickly.

Shanta Gold Limited, (AIM: SHG) reported an increase of 54% in gold production over the first quarter. It also reiterated its full-year output guidance of 68,000 ounces to 76,000 ounces.

It produced 17,527 ounces of gold from the New Luika mine in Tanzania. This is an increase of 11,408 ounces and 23% more than the second quarter of 2021. It noted that the quarter’s production was 15% more than expected.

Botswana Diamonds plc (AIM: BOD) announce the acquisition of an additional stake in the prospective Maibwe joint venture in Botswana.

Chairman, John Teeling commented: “We are delighted that after several years of negotiating with the liquidators of BCL Botswana which held in its portfolio the Maibwe diamond joint venture in the Kalahari of Botswana that we have been able to unlock the corporate logjam and are now able to move ahead to examine properly the true potential of the Maibwe concession”.

Oriole Resources (AIM: ORR) stated that it sent two batches from its Central Licence Package and Bibemi Gold projects in Cameroon to Oriole Resources for testing. Results are due by the end of this quarter.

Tim Livesey (chief executive) stated that the first half of 2022 was a busy period for the team. He completed the outstanding soil grids and continued mapping within the easternmost CLP licenses. The Phase 4 drilling programme at Bibemi was wrapped up before the rainy season began.

Power Metal Resources PLC (LON: POW) the London-listed exploration company seeking large-scale metal discoveries across its global project portfolio announces an update from Golden Metal Resources PLC (“Golden Metal” or “Golden Metal Resources”), the Company’s 83.13% owned subsidiary, which is planning to list in the London capital markets.

Golden Metal holds a 100% interest in three projects (Pilot Mountain, Garfield and Stonewall) and a right to earn a 100% interest in one further project (Golconda). All projects are situated in Nevada USA, ranked number 3 in the Fraser Institute Survey of Mining Companies 2021

AfriTin Mining Ltd (AIM: ATM) announced that Robert Sewell, chief financial officer, has resigned to pursue other opportunities. Hiten Ooka was his replacement.

Ooka is a chartered accountant and has come from Bushveld Minerals where he was the group head of finance. Over the past 12 years, he held high-ranking management positions at Rand Uranium and Trafigura. This is a non-board position.

Cora Gold Limited (AIM: CORA) provided an updated Mineral Resource estimate (‘MRE’) for the Company’s Sanankoro Gold Project in southern Mali.

This MRE, updated after completion of the 2022 drill programme, builds on the previous MRE announced on 16 November 2021, with the Company predominantly focused on converting additional ounces (‘oz’) from Inferred to Indicated.

Bradda Head Lithium Ltd (AIM: BHL) stated that it intends to list its ordinary shares on Canada’s TSX Venture Exchange.

According to the lithium company, which is based in North America, the move will increase its shareholder base and allow for more trading of its shares.

Horizonte Minerals PLC, (AIM: HZM) stated that it will provide a program to train local communities in core skills in order to allow them to help in the construction and operation in Brazil of the Araguaia Nickel Project.

Horizonte has signed an agreement to host the community-based skills training programme with Servico Nacional de Aprendizagem Industrial, Brazil’s most renowned industrial training provider.

Caledonia Mining Corp PLC (LON: CMCL) bought the Bilboes Gold Project in Zimbabwe as part of a “transformational deal” that could result in a fourfold increase in overall production.

Caledonia will pay Bilboes Gold Ltd (£44.4mln), approximately US$53.3mln in shares and a net smelter royalty (NSR) of 1% on the project’s revenue.

Atlantic Lithium Limited (AIM: ALL) announced additional assay results from the ongoing resource and exploration drilling programme at the Ewoyaa Lithium Project in Ghana, West Africa.

Drilling at the Ewoyaa project is ongoing, with approximately 24,900m of the planned 37,000m programme completed to date, with further assays pending and the programme targeted for completion this quarter.

AfriTin Mining Ltd, (AIM: ATM) has released positive results from its lithium and tantalum drilling program at the flagship Uis mine in Namibia.

From a depth of 23m, the best pegmatite intersections were at 22m at 0.153% Tin, 104 parts/million (ppm) tantalum, and 1.18% lithium dioxide; at 69m, at 0.178% Tin, 98ppm tantalum, and 0.45% Lithium oxide; at 52m, at 0.173% Tin, 86ppm tantalum, and 0.58% Lithium oxide.

Kodal Minerals PLC (AIM: KOD) Announces its final results for the year ended 31 March 2022.

The company ended the financial year ending March 2022 with less than £1mln remaining in the bank.

After spending more than £2.5mln on exploration and evaluation at its West Africa lithium and gold projects, the company recorded a loss of £903,000.

Castillo Copper Ltd, (ASX: CCZ, LSE: CCZ) released the results of metallurgical testing on the Big One copper mine in Australia.

The concentrate was obtained from BO_318RC. It contained confirmed upgrades that ranged from five to ten times for copper metal.

Blencowe Resource PLC (LON: BRES). has completed a feasibility study for its Orom-Cross graphite plant in Uganda.

Orom-Cross has a net present worth of US$482mln. This is 52% more than the amount previously assigned to it in an economic preliminary.

Tungsten West PLC, (AIM: TUN) stated that capital expenditures for the restart of the Hemerdon Tin Mine in Devon will be lower under a revised development plan. This will also result in lower diesel and power consumption.

The group also announced that Max Denning, chief executive officer and co-founder of the group, will be retiring immediately. Mark Thompson, executive vice-chairman & co-founder of the group will take over.

Anglesey Mining PLC, (AIM: AYM) has released the results from a pre-feasibility upgrade for its Grangesberg iron-ore project in Sweden.

Anglesey has a nearly 20% stake in Grangesberg, along with management rights and the right to the first refusal to increase that interest to 70%.

Castillo Copper Ltd, (ASX: CCZ, LSE: CCZ) further de-risked Big One Deposit of the NWQ Copper Project (Queensland), with proof-of-concept metallurgical testing work that produced a copper concentrate 10 times purer than the original grade.

A copper head-grade sample of 0.72% was transformed to 7.2% after testing. More metallurgical testing is ongoing to support the signing of a processing contract and to determine the best processing methods.

Caracal Gold PLC, (LON: GCAT) is an East African gold producer and has elected Mr Riaan Lombard as its chief operating officer and executive director.

Since February 2022, Lombard has been the general manager of Caracal’s 100% owned subsidiary Kilimapesa Gold (Pty) Ltd. This company operates its flagship Kenyan mine.

Power Metal Resources PLC, (AIM: POW). reported positive first findings from its newly granted prospecting license PL049/2022. This is part of the company’s Tati project in Botswana.

Three individual prospecting licenses for nickel and gold mineralisation are covered by the Tati project: PL126/2019, PL127/2019 & PL049/2022.

Great Western Corporation PLC (AIM: GWMO) completed a 10-hole drilling program at the OMCO Mine Area of the Olympic Gold Project in Mineral County, Nevada.

After a three-hole drill at the Trafalgar Hills prospect, reverse circulation drilling was initiated in the area of the former OMCO Mine. This mine produced gold grades between 25-30 grams per tonne, and silver at 30 grams/tonne up until the 1940s.

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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