Share Talk Weekly Mining Sector News Round-Up, Sunday 15th May 2022

Iron ore prices fell to their lowest weekly level since February, as a combination of China’s increasing virus restrictions and worsening real estate crisis prevented a recovery.

Although the metal gained in Singapore last Friday, it is now down nearly 8% for the week.

China reported an increase in covid-19-related cases. However, officials deny that the city will be closed down as there is growing concern about the capital’s response.

Beowulf (AIM: BEM), updated the markets on Beowulf CEO, Kurt Budge’s visit to Sweden this week and his brief Kallak update at the Swedish Mining Innovation and Research Day in Luleå on 12 May.

The CEO has met with legal advisers to discuss environmental permitting and its place in the overall development timeline for Kallak. The Company is now preparing a detailed plan and will provide further details as they become available. In parallel, the work to complete a Scoping Study and quickly move to Pre-feasibility is underway. The Company will look to secure options that can de-risk project execution, while meeting environmental and social goals, balancing cost and benefit.

The Ministry of Mining expects to finish mining development agreements by June in Malawi. Mkango Resources was identified by him as a dual-listed mineral exploration company that has been involved in the exploration of rare earths at Songwe Hills, Phalombe, Globe Metals Limited which will be mining Niobium in Mzimba, and Lotus Resources Limited which recently acquired Kayerekera Uranium Mine, Karonga.

Mkandawire stated that discussions regarding the agreements are in an advanced stage and would be completed soon.

European Metals Holdings Ltd, (AIM: EMH) stated that it will trade on the OTCQX Best Market, increasing its exposure to major US investors.

According to the company, the decision was made in response to increased interest from US investors in Cinovec’s Cinovec project. This is the largest hard-rock lithium deposit in Europe.

Arc Minerals Limited (LON: ARCM) announce that it has entered into an agreement with a subsidiary of Anglo American plc.

Under the Agreement the parties intend to form a joint venture with respect to the Company’s Copper-Cobalt project located in the North-Western province of Zambia (“Joint Venture”) and Anglo American will have the right to retain a 70% ownership in the Joint Venture for an aggregate investment by Anglo American of up to USD 88,500,000, including cash consideration of up to USD 14,500,000.

KEFI Gold and Copper PLC, (AIM: KEFI) stated that progress at Tulu Kapi Gold Mines in Ethiopia (TKGM), has been steady over the past month. There have been further developments in multi-party financing activities and early development work.

The signing of the financing agreement, which is currently being formalised, remains on course for this quarter the company stated.

Wishbone Gold Plc (AIM: WSBN, AQSE: WSBN) announced that a heritage survey is underway at the Company’s Red Setter Gold-Copper Project located 13 km southwest of the Telfer Gold Mine, in the Patersons Range of Western Australia.

The aim of this survey is to increase access to peripheral targets, beyond those already cleared, where drilling will start in the next few weeks. The heritage survey will then move down to the Cottesloe Project located 55 km south-southwest of the Telfer Gold Mine.

Panther Metals PLC, (LSE: PALM) highlighted positive drilling results by Panther Metals Ltd (Panther Australia), at the Coglia Nickel/cobalt Project in Western Australia. These assay results confirm our confidence in the Coglia project,” stated Darren Hazelwood, chief executive.

AEX Gold Inc, (AIM: AEX) announced it had acquired two South Greenland exploration licences from Orano Group for a zero upfront sum and a royalty on future production as it sees a significant chance for the discovery of strategic minerals.

The license area allows AEX to increase its exposure to metals like nickel, copper and zinc as well as vanadium and graphite.

Caracal Gold plc, the expanding East African gold producer with over 650,000oz JORC-compliant gold resources, announces the first assay results from its Reverse Circulation (‘RC’) drilling programme, which confirms the presence of high-grade mineralisation at the Kilimapesa Hill deposit at the Kilimapesa Gold and Mining Operations in Kenya.

Caledonia Mining Corp PLC (LON: CMCL) reported an increase of 51% in its first-quarter profit due to record gold production and higher prices.

Chief executive Steve Curtis stated that the first quarter of 2022 was a great start 2022. “The quarter’s gold production is a record-breaking first quarter production record.”

Power Metal Resources PLC, (AIM: POW) stated that it can move faster with its 83.33%-owned subsidiary First Development Resources (FDRUK) after it bought Pardoo Resources, a holding company currently holding projects in trust.

Power Metal has reached an agreement to acquire Pardoo Resources Pty Limited 100% by FDR UK.

 

 

Watch as Ben Turney, chief executive of Kavango Resources updates Share Talk on the latest from the exploration firm’s Botswana-focused portfolio.

In the video, the pair discuss the news earlier this week that the Great Red Spot target at the company’s Kalahari Suture Zone project exhibits similar geophysical signatures to the Olympic Dam IOCG ore deposit in Australia.

Horizonte Minerals PLC, (AIM: HZM) announced that it has awarded the earthworks contract to Copa Construcao SA for the construction of the large-scale Araguaia ferronickel plant in Brazil.

Copa, a Brazilian leader in mining and civil infrastructure projects, is listed on AIM-traded Horizonte.

Alien Metals Ltd (AIM: UFO) reported positive developments from exploration work at San Celso 2 and Donovan 2-high-grade silver, copper-gold projects in Zacatecas. This is ahead of formal drilling results in the coming weeks.

The Donovan 2 copper/gold project saw a 78-meter (m) sulphide bearing area at a depth of approximately 107m. Three additional holes also found a steeply dipping alteration area at Los Alamos’ ‘well target’, a potentially significant copper zone with historical sample grades up to 3.34% copper.

Bill Brodie Good, CEO & Technical Director of Alien Metals, commented: “We are very pleased to see this initial drilling at San Celso and Donovan 2 intersect showing encouraging zones of alteration. The Donovan 2 drilling has returned some strong disseminated sulphide intersections, which is highly promising for the potential presence of a VMS type mineralised system. In particular, hole A04 returned a 78m thick zone of intense alteration and visible sulphides, including pyrite and arsenopyrite.

Greatland Gold PLC, (AIM: GGP) will receive a grant of up to A$200,000 (£113,000), under the Western Australian government’s Exploration Incentive Scheme.

The grant will be used for co-funding exploration at Greatland’s Rudall 100%-owned licence. It is located 20km southwest of Greatland’s Havieron copper-gold resource in Western Australia.

Shanta Gold Ltd (AIM: SHG) reiterated that it expects production to pick up again in 2022 after technical issues at its New Luika mine in Tanzania in the early part of 2021.

Production forecasts for this year are in a range of 68,000 to 76,000oz, at a sustaining cost of US$1,050 – 1,250 per oz, compared with 55,300oz in 2021, the miner said in a statement.

Landore Resources Ltd. (AIM: LND). released preliminary economic results on the BAM Gold Project at Junior Lake, Canada.

The company also began a review of strategic options in relation to its Canadian subsidiary, assets and subsidiaries.

Kavango Resources PLC, (LSE: KAV) stated that it discovered a second target at the Great Red Spot prospect (GRS) in Botswana. It had characteristics similar to BHP Group Ltd’s massive Olympic Dam polymetallic operation.

Following six months of additional field exploration and detailed desktop analysis, Kavango confirms it now believes the GRS conforms to an idealized model for a large IOCG-style system.

The Company believes this is a significant development for the prospectivity of the GRS. IOCG deposits are an alteration “overprint” of the host geology when they form. Therefore, Kavango believes the IOCG model represents a second mineralisation style possibly present within the GRS, in addition to the existing potential for nickel/copper (Ni/Cu) sulphide deposits.

AEX Gold Inc, (AIM: AEX) has published the results of its 2021 exploration campaign in South Greenland’s Vagar license.

Vagar is a large-scale gold exploration licence that contains multiple high priority targets. It is located in the Nanortalik Gold Belt, close to AEX’s flagship Nalunaq Project.

Amur Minerals Corp (AIM: AMC) Proposed the sale of the Kun-Manie Project for $105 Million.

Has entered into a Share Purchase Agreement (the “SPA”) for the sale of 100% of its interest in Irosta’s wholly-owned subsidiary, AO Kun-Manie. For a total consideration of US$105 million, Stanmix Holding Limited will purchase AO KM and the benefit of all amounts owed by AO KM to Amur under intra-group loans (the “Transaction”).

The divesture price is a premium of 220% on the company’s May 5 market capitalisation and 330% on the Kun-Manie current book value of US$24.4mln as of 30 June 2021.
 

 

Rambler Metals and Mining plc (AIM: RMM) announced its reconciled operational results for the month of April 2022.

Company Management will be attending and presenting at Mining Indaba in Cape Town, South Africa from 9 to 12 May 2022 and also at the PDAC in Toronto, Canada from 13 to 15 June 2022.

KEFI Gold and Copper PLC, (AIM: KEFI) stated that development planning studies at the Jibal Qutman project in Saudi Arabia have been resumed following a change of the regulatory system at Saudi Arabia’s Ministry for Industry and Mineral Resources.

Alternative processing options are now possible, which should allow for a larger portion of the ore to be developed. This would mean a higher resource and production profile. It also stated that gold prices are significantly higher than the US$1,200 used when Kefi filed its first mining licence application in 2015.

Technology Minerals PLC, (LSE: TM1) appointed a chief finance officer with extensive experience in natural resources.

James Cable, a chartered accountant, was most recently appointed as the GemRock Company’s CFO.

Kavango Resources plc (LSE: KAV) announced a heavily oversubscribed £750,000 placing at 3p per share. This represents no discount to the offer price of Kavango’s shares at close on Friday 06 May.

Ben Turney, Chief Executive Officer of Kavango Resources, commented:

“We received an offer from First Equity on Friday to raise money for Kavango over the weekend. We set a maximum limit of £750,000 and received offers to subscribe for nearly double this amount.

At this stage in Kavango’s development, the additional working capital will support expanding our exploration programme. We are also conscious to manage dilution at this level. A number of workstreams are nearing completion and we will be able to deploy the new funds quickly.

Cora Gold Limited (AIM: CORA) First Drill Results from 2022 Drill Campaign & New Gold Discoveries.

Drill programme consists of 11 aircore (AC) shallow holes for 897m and 78 reverse circulation (RC) holes for a total of 6,992m (4,958m at Zone B North; 1,092m at Selin South, 504m at Fode 1 and 438m at Target 6) now completed at Sanankoro.

Drilling targeted both converting existing Inferred Mineral Resources to Indicated Mineral Resources, as well as identifying new discoveries at Sanankoro.

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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