Share Talk Weekly Mining Sector News Round-Up, Saturday 4th June 2022

There is a lot going on at Caracal Gold which has so far yet to really begin to attract the attention of investors. Share Talk highlighted them late last month and in the past five trading days, they have started to gather momentum with a 14.99% gain with the share price still sitting at a low entry point of 0.79 when you take into consideration the company’s current newsflow.

Author @ABMckinley

Alien Metals Ltd, (AIM: UFO). stated that it was making progress at its Hancock iron ore project, where production is expected in 2023.

Bill Brodie Good, Chief Executive Officer & Technical Director of Alien Metals, commented: “The development aspects of the Hancock Iron Ore Project to be shovel ready for early 2023 are progressing very well. We are on track to have all the permitting in place, and will soon be in a position to commence mining next year. Additionally, in-depth discussions with third party contractors and potential offtake partners to enable us to get into production in 2023 are continuing”.

In early trading, the shares rise 20% to 0.78 pence when the announcement was released, one for the watchlist folks.

Caracal Gold (LON: GCAT) Gold Resources To Double Following Purchase Of Nyakafuru Project

BlueRock Diamonds PLC, (AIM: BRD) published an update on operations at its Kareevlei Diamond Mine in the Kimberley region of South Africa.

During the first five months of 2022, Kareevlei experienced nearly double its normal annual rainfall (561mm/22 inches). May’s rain in particular, at over three times the long-term average, has had a significant impact on both mining development and processing against expectations.

Mining development fell 36% (400,000 tonnes) as compared to budget for April and May, which has limited the mine’s access to quality kimberlite and necessitated the use of lower grade and more difficult to handle material (clay content) in Kareevlei’s processing operations. Additionally, where BlueRock had hoped to ramp up production at its new 1Mtpa processing plant, the unforeseen lost days to rain and the lower-grade feed resulted in operations being down against budget over the period March to May by 48% on tonnes processed, 51% on grade and 74% on carats produced.

GreenRoc Mining plc (AIM: GROC), announced the appointment of Dr Stefan Bernstein as Chief Executive Officer (‘CEO’) and Director, with effect from 1 July 2022.

Stefan Bernstein joins GreenRoc from GEUS, the Danish and Greenlandic Geological Survey responsible for supporting the sustainable exploitation of raw materials in Greenland, where since 2016 he was the Head of the Mapping and Mineral Resources Department. In this capacity, he focused on developing Greenland’s known geology through integrated programmes in collaboration with the Ministry of Mineral Resources in Greenland.

Power Metal Resources PLC, (AIM: POW). stated that its subsidiary First Development Resources Ltd, which holds 82.78% of the company, has raised approximately £1.125mln through pre-initial private offering (IPO) financing. The unit is valued at around £4.125mln.

Tristan Pottas Chief Executive Officer of First Development Resources Ltd commented: The Pre-IPO Financing provides FDR with the necessary working capital to confidently push ahead with business operations including its planned listing on the London capital markets.

Paul Johnson Chief Executive Officer of Power Metal Resources plc commented: The successful Pre-IPO Financing reported in today’s announcement is the first decisive step on FDR’s journey to becoming an independent listed vehicle. We believe the projects which make up FDR’s portfolio present a compelling investment proposition which we look forward to watching develop under the management of the FDR board.

FDR, which focuses on Australia’s exploration opportunities, will list in London during the third quarter.

Sovereign Metals Ltd, (ASX: SVM; AIM: SVML) has begun its pre-feasibility (PFS) drilling program in the KasiyaRutile Project.

This drilling program of 12,000 metres is intended to improve higher-grade mineral resources areas in order to support conversion to reserves under the PFS. This is the company’s first major work program in the PFS.

Castillo Copper Ltd, (LSE, ASX, CCZ: CCZ). has created a maiden cobalt resource for the East Zone, Broken Hill Alliance (BHA), Project of 64,000,000 tonnes at 318 parts/million cobalt for 21,556 tons of contained metals and 44,260 tonnes added to the global mineral resource estimate (MRE) for the project.

Castillo derived the MRE from historical drilling data, which was gathered between 1970-2014. This included reverse circulation (RC), rotary air blast, and diamond core drilling campaigns.

Power Metal Resources (AIM: POW) stated that a diamond drilling program on the Haneti Project in Tanzania has confirmed the existence of nickel, but only in economically important intersections.

Paul Johnson, Power Metal’s chief executive officer, said: “With the program information we can now take more advanced targeting for the next stage of exploration.

Wishbone Gold Plc (AIM: WSBN, AQSE: WSBN), announced that the drill rig will mobilise from Perth towards the end of this week, to the Company’s Red Setter Gold-Copper Project in the Patersons Range area in Western Australia.

The small delay has been caused by the highly publicised severe wet weather in the Pilbara as well as in the eastern states of Australia. The latter has slowed transportation of support vehicles back to Western Australia but this is now complete.

Richard Poulden, Wishbone Gold’s Chairman, commented, “We are very pleased to have the drill rig and drilling team mobilise from Perth to Red Setter. Terra Search geological and support team are on-site at Telfer, and ready for their arrival. I look forward to announcing the start of drilling at Red Setter shortly for the 3,000 metres of the first phase program.”

Xtract Resources plc (AIM: XTR) provide an update and overview of the results achieved to date at the Ascot Prospect on the Bushranger Copper-Gold Project in central New South Wales, Australia.

To date, 12 diamond drill holes for 8,526m have been completed at Ascot and results have been released for 6 holes. Copper-gold mineralisation has been intersected over a strike length of greater than 750m at the Ascot prospect located to the south of the Racecourse Inferred Mineral Resource which is open both along strike and at depth.

Colin Bird, Executive Chairman said: The discovery of copper-gold mineralisation at the Ascot prospect is highly significant as the widths and grades of the mineralisation we have intersected to date suggest that Ascot is a new greenfields porphyry-copper discovery comparable to Alkane’s Boda discovery in 2019.

Mkango Resources Ltd (AIM/TSX-V: MKA) Q1 2022 results show DFS nearing completion. the company signed a non-binding term sheet with ESG-focused CoTec who agreed to invest £2m in Mkango and invest £1.5m into Maginito to provide working capital ahead of the DFS release.

The company is starting the rollout of Rare Earths technologies business in the USA with Julian Treger, a highly successful ex Anglo Pacific Mining executive & Tom Albanese ex Rio Tinto.

A lot of people missed this, the MKA team have been in the US and with the current political climate, expect to see more updates as the geopolitics play out. China can not be allowed to control the RE markets.

Conclusion: Mkango is making strong progress ahead of its DFS for the Songwe Hill Rare Earths project, with the completion of the study targeted for the second quarter of 2022. Investors should take encouragement as Mkango’s board continues to progress and de-risk the project at a time when NdPr prices are at multi-year highs.

Caracal Gold plc, (LON: GCAT) current operations and projects in Kenya and Tanzania announced that further to the announcement dated 7 December 2021, it has agreed a revised Share Purchase Agreement to acquire 100% of Tyacks Gold Limited (‘Tyacks’), the holder of the licences collectively referred to as the Nyakafuru Project in Tanzania.

The Project is located in the world-class Lake Victoria Gold Fields in northern Tanzania, 140km southwest of Mwanza, Tanzania’s second-largest city, and 60km from Barrick Gold’s 18Moz Bulyanhulu Gold Mine.

Robbie McCrae, CEO of Caracal, said, Signing the revised SPA allows us to immediately begin work on Nyakafuru with drilling to commence in the 4th quarter of 2022.

With over 1.3moz in gold resources and with the planned updated resource at Kilimapesa, expected to be completed by the end of June, we consider Caracal will be well-positioned to create value for our shareholders if you consider the recent B2 Gold acquisition of OKLO Resources, which implies a value of US$100 per ounce on OKLO’s 669,500oz resource. The coming quarters are expected to be transformational for our rapidly growing gold exploration and production strategy in East Africa.”

Edenville Energy Plc (AIM: EDL) announces an update with respect to the operation of the Company’s Rukwa Coal Project in Tanzania.

The company was in discussions with Nextgen Coalmine Limited (“Nextgen”) to vary the contract for the operation of the Company’s Rukwa Coal Project, entered into on 3 February 2022 (the “Contract”). The Company confirm it has reached an agreement with NextGen to terminate the Contract and has subsequently resumed full control of the site and mining operations.

Following the termination of the Contract all mining equipment has been brought back into service by the Company, whilst an additional pre-strip excavator has been added to the fleet. Up to three additional trucks are also being sourced to rapidly scale production.

ECR Minerals plc (LON: ECR), announced that Non-Executive Director Adam Jones will become an Executive Director with immediate effect. Adam’s new role will be Technical Director of Exploration across ECR’s portfolio of projects.

He has considerable experience in geological interpretation, geotechnical and fault modelling, geological mapping and sampling, turbidite sequence-structural interpretations, wireframing and 3D modelling using Vulcan Software.

Adam will assume technical responsibilities for all of ECR’s projects, including the Lolworth Range project in North Queensland owned by ECR’s 100% owned subsidiary LUX Exploration Limited. He lives in Victoria close to ECR’s Bailieston and Creswick gold projects.

ECR CEO Andrew Haythorpe added: “My decision to join ECR was very much influenced by the manner in which Adam has managed the Company’s ongoing drilling campaigns in Victoria as well as the skillset and vision demonstrated in his assessment and acquisition of the Lolworth Range project. My recent trip served to confirm my early impressions, and I very much look forward to working closely with him and benefitting from his expertise as we develop our asset portfolio.”

Greatland Gold PLC (AIM: GGP) Second-year exploration programme at Juri JV.

Drill programme to focus on high-priority targets within the Paterson Range East and the Black Hills licence including targets A9, A27 and Tama.

The Paterson Range East licence lies approximately 25 kilometres north of the Company’s Havieron gold-copper project and covers 224 square kilometres of Proterozoic basement rocks prospective for Havieron style gold-copper mineralisation. The Black Hills licence covers 25 square kilometres and lies approximately 20 kilometres west of Havieron and 30 kilometres northeast of Newcrest’s Telfer Gold Mine.

Shaun Day, Managing Director of Greatland Gold plc, commented: “After a promising first-year programme, we are excited to commence on-the-ground activities for the second year exploration and drilling campaign under the Juri JV with Newcrest.

Mkango has signed a non-binding term sheet for up to £3.5m of proposed funding from CoTec, an ESG-focused investor in innovative and scalable ‘green’ technologies for extracting and processing metals and minerals.

The proposed investment is split between £2m of direct funding to Mkango and £1.5m of investment in Maginito, the group’s downstream REE technology ventures subsidiary. The former will bolster Mkango’s working capital as it finalises feasibility studies of and advances financing discussions for its Songwe Hill rare earths project in Malawi and its Pulawy downstream separation plant project in Poland.

Atlantic Lithium* (LON: ALL) 49p, Mkt Cap £283m – Ewoyaa project set to expand as visible spodumene is observed in new drilling

Alien Metals Ltd (LSE AIM: UFO), update the market that it has entered into a Binding Heads of Agreement with ASX-listed Zenith Minerals Ltd (ASX: ZNC) to acquire, subject to the satisfaction of certain conditions, 100% of the Vivash Gorge Iron Ore Project in the Pilbara region of Western Australia.

Bill Brodie Good, CEO & Technical Director of Alien Metals, commented: “The potential acquisition of the Vivash Gorge iron ore project from Zenith Minerals will be a great addition to our growing iron ore portfolio. Given the adjacent DSO grade deposits defined by iron ore major Fortescue Metals Group, coupled with what we believe to be the tenement’s highly prospective yet untested geology, Vivash Gorge provides Alien with a third strategically located high-grade iron ore project within the Pilbara region.

“With drilling approvals already in place, we see the immediate potential to get on the ground and test the numerous targets that are on strike from Fortescue’s Vivash SW deposit.”

Mkango Resources (AIM/TSX-V: MKA) Mkango And CoTec To Collaborate In Downstream Rare Earth Technologies With Proposed Investments Totalling £3.5 Million (C$5.6 Million).

Mkango signed a non-binding term sheet with CoTec Holdings Corp. (“CoTec”), an ESG-focused company investing in innovative technologies, led by Julian Treger and Braam Jonker, in relation to investments by CoTec into Mkango and Mkango’s subsidiary, Maginito Limited (“Maginito”), and collaboration in downstream rare earth technologies (the “Transactions”). The Transactions are expected to include the following key components:

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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