Share Talk Weekly Mining Sector News Round-Up, Sunday 17th April 2022

Caracal Gold PLC (LON: GCAT) Announced the appointment of Sheila Boit as Business Development Executive.

Ms Boit has extensive experience working in Kenya in the sustainable construction and materials industry, having worked as Sales and Specification Manager in East Africa for London-listed Serge Ferrari and holds a Master of Business Administration (MBA) in Global Business & Sustainability from the Università Cattolica del Sacro Cuore in Italy.

The Company also announces that Jason Brewer will be retiring from his role as Commercial Director, effective immediately, in order to focus on other work commitments. He will continue to work closely with the Company, retaining an ongoing role as a Consultant.

Empire Metals Limited (LON: EEE), announces that it has completed the acquisition of the Pitfield Copper-Gold Project, the first of three highly prospective Australian-based copper-gold projects acquired from Century Minerals Pty Ltd (‘Century’) (refer to RNS dated 6 April 2022).

Petropavlovsk PLC, (LSE: POG) has hired a corporate finance boutique in order to find a buyer. The company claims that it will have difficulty refinancing its Russian debts.

The Russia-focused gold miner stated that AlixPartners would support the board in its exploration of options.

Anglo Asian Mining (LON: AZZ) produced 13,720 equivalent gold ounces from its western Azerbaijan mines during the three-month period ending 31 March 2022.

Total sales of gold bullion were 7,519 ounces, at an average price of $1,904 per troy oz (Q1 2020: 5,635 troy ounces at $1.697 oz). Cash at the end of the period was US$29.4mln ($37.5mln).

Oracle Power PLC (AIM: ORCP), provide the following update statement from its CEO, Naheed Memon, with respect to developments during Q1 2022:

“2022 has kicked off with period of high activity across every dimension of our portfolio as we look to consolidate, advance and commercialise our now diverse portfolio of interests and establish ourselves as a natural resource project developer on an international scale.

Horizonte Minerals PLC (AIM: HZM) stated that the mining and commodity trading giant Glencore PLC, (LSE: GLEN) now has 9.8% of its shares.

Horizonte stated in a routine statement that Glencore had crossed the major shareholding threshold.

BlueRock Diamonds PLC, (AIM: BRD) which owns and operates the Kareevlei Diamond Mine (‘Kareevlei’) in the Kimberley region of South Africa, is pleased to announce its Q1 2022 production update.

“Looking ahead, with a stronger balance sheet having recently completed a £2.1m placing before expenses, and a fair wind with regards to the diamond market, BlueRock is well positioned to achieve a significant step-change in its production/financial profile.”

Bens Creek Group PLC, (AIM: BEN) stated that it has entered into a coal sublease agreement with Star Ridge Land LLC for two parcels of land totalling approximately 2,640 acres in Mingo County.

The land is located near Bens Creek’s newly reopened metallurgical co mine.

Amur Minerals Corp (AIM: AMC) Russian Sanctions Update. Announces that the Company has been continuously reviewing the EU, UK and USA sanctions documentation. Since 23 February 2022, the sanctions list additions have been frequent and rapidly evolving, changing the geopolitical landscape. To date, there has been minimal impact to the Company. As of 5 April 2022, the actions undertaken by the Company include the following:

Flow of funds supporting AO Kun-Manie continue and the Company has now ensured sufficient cash reserves for the subsidiary covering budgeted costs through H1 2022. Previously, AO Kun-Manie funds have been delivered to cover a 30 to 45 day period.

Trident Royalties PLC, (AIM: TRR), stated that it had agreed to sell the Mercedes Gold-Silver Mine at Sonora in Mexico by Equinox Gold (TSX: EQX)

The offtake agreement was signed with Premier Gold, Equinox’s subsidiary, and the group will receive US$3.75mln, in addition to royalties of US$307.600.

Power Metal Resources PLC (LON: POW), announces an update in relation to the ongoing exploration programme being carried out by joint-venture subsidiary New Ballarat Gold Corporation plc focused in the Victorian Goldfields of Australia.

NBGC is a joint-venture held between Power Metal (49.9%) and its partner, London-listed Red Rock Resources plc (50.1%)

Polymetal International PLC (LSE: POLY) was the leader of the fallers in FTSE 350 after Russia’s precious metals miner withdrew its dividend.

According to the company, its board decided to delay the payout and make an interim dividend payment until August. This decision was based on “significant improvements in operating conditions” over the past few weeks (ie since Russia invaded Ukraine).

Sovereign Metals Ltd, (ASX:SVM, AIM:SVML) declared a new record after delivering an updated mineral resource estimate (MRE) of 1.8 billion tonnes. This confirms that the Kasiya Rutile Deposit in Malawi is both the largest rutile deposit ever discovered and the second-largest flake-graphite deposit.

  • Kasiya confirmed as Tier 1
  • New JORC resource 3x previous estimate
  • Largest rutile discovery ever made
  • 2nd largest flake graphite deposit in the world

Sovereign’s Managing Director Dr Julian Stephens commented: It is a really remarkable achievement by our team to have made the largest natural rutile discovery ever in just two years since initial identification. The JORC MRE of this scale and grade is clearly highly strategic, Tier 1 and of global significance in a market where natural rutile is in extreme supply deficit.

East Star Resources Plc, (LSE: EST) stated that it identified 22 gold targets to follow up on a drone survey of the Apmintas license in Kazakhstan.

According to the statement by the Kazakhstan-focused copper and gold explorer, most targets are within 10-30 meters of cover.

Pathfinder Minerals (AIM: PFP) provides an update regarding the dispute concerning mining concession 4623C (the “Licence”) in Mozambique and potential routes to monetise the Company’s claim and pursue additional opportunities.

As previously announced, the Board is discussing strategic options with institutional litigation funders and other parties, which now range from conventional litigation funding arrangements, whereby the legal costs of the claim would be borne by the funder on a contingency basis, through to a full acquisition of the claim via a disposal, subject to regulatory and shareholder approvals as needed, of the Company’s wholly owned subsidiary, IM Minerals Limited (“IMM”), enabling Pathfinder to return, well-funded, to its core objectives of exploration and mining.

Cobra Resources PLC, (LSE: COBR) stated that it was granted a 536km2 exploration tenement east of its Wudinna Project on the Eyre Peninsular of South Australia.

According to Cobra, a London-listed company, the land (Tenement EL 6718), is highly prospective for rare earth mineralisation and gold, Cobra stated in a statement.

Keras Resources plc (AIM: KRS) today provides an operational update on the high-grade Diamond Creek organic phosphate mine (‘Diamond Creek’) in Utah, USA.

Management recently hosted the annual inspection and site visit from the Utah State mining and environmental departments and received all ongoing approvals in line with the project’s licence obligations. The team will now commence the annual rehabilitation on the access roads and start trucking the approximately 5,200 tons of run-of mine phosphate rock remaining at the lay-down area from last year’s mining campaign to the Spanish Fork processing facility. An additional 1,500 tons of blasted ore will similarly be excavated and hauled from the pit to Spanish Fork during the early summer months.

Castillo Copper Ltd, (LSE: CCZ ASX: CCZ) has encountered highly anomalous cobalt in the Broken Hill Alliance Project (BHA), New South Wales. This further enhances the potential for a large-scale cobalt system within the target area.

The new assays are quite shallow and range from the surface to 93 meters deep. They also include a number of stand-out intercepts.

Panthera Resources plc (AIM: PAT), announced that it has arranged an equity capital fundraise with existing and institutional investors for approximately £1.06 million (before expenses) by way of a placing and subscription (together the “Fundraising”) of a total of 14,131,664 new ordinary shares of 1 pence each in the Company (the “New Ordinary Shares”) at a price of 7.5 pence per share (the “Placing Price”). Allenby Capital Limited ( ” Allenby Capital ” ) and Novum Securities Limited (“Novum”) are acting as brokers in connection with the Fundraising (the “Brokers”).

AEX Gold Inc, (AIM: AEXG), stated that its 2021 exploration program at Sava Project in Greenland revealed multiple targets for what could be a multi-element, high-grade property.

Toronto-based company performed remote sensing, aerial geophysics, geological mapping, rock chip, ionic geochemistry and hyperspectral imaging across the 4,090-square-kilometre Sava license.

Caracal Gold plc (LON: GCAT) the expanding East African gold producer with over 650,000oz JORC-compliant gold resources, announces the first gold production from its new heap leach plant at its Kilimapesa Gold Mine (“Kilimapesa”) in Kenya.

The Company is pleased to confirm that the commissioning of its pilot heap leach plant has successfully completed, and first gold has been produced. This first gold production has been achieved ahead of schedule and marks an important milestone in the wider expansion strategy currently being implemented to increase production to 24,000oz pa at Kilimapesa.

The results from the “pilot plant” pad consisting of the first 5,000t lift on the pad of the heap leach have exceeded expectations

Power Metal Resources PLC, (AIM: POW) has announced that its New Ballarat Gold joint venture has stopped drilling at the O’Loughlin’s & Mt Bute prospects in Victoria to permit for the receipt outstanding assays.

David Holden, NBGC’s exploration chief, stated that “At O’Loughlin’s prospect, we have already encountered high grade gold from the initial samples we received – with additional assays still pending from three more holes.

According to the statement, the geometry and depth of the main Eastern Magnetic Bullseye anomaly have been determined. Work is underway to enable the start of Phase I of the planned diamond drilling program.

According to Shore Capital, Vast Resources’ (AIM: VAST) purchase of two jumbo rigs at Baita Plai, Romania, should result in increased volumes and a higher-grade ore for the processing plant.

External technical consultants highlighted the potential of molybdenum production using a small flotation circuit. This could produce between 1t-5t per month of a 50% Mo concentrate.

ECR Minerals plc (LON: ECR), announced the appointment of Andrew Haythorpe as CEO of the Company.

Andrew will join ECR as a non-board CEO prior to assuming the role of executive director, subject to approval, in six months’ time.

Andrew has more than 30 years of experience managing listed gold miners and explorers on the ASX and TSX as well as working as a mining analyst and actively exploring for gold as a geologist.

Sirius Minerals may have been gone, but Anglo American Plc (LSE: AAL), automation, and modern mining technologies make it look like the Woodsmith mine in North Yorkshire is still alive and well.

The Yorkshire fertiliser project, which is intended to extract large volumes of polyhalite (a novel type of potash fertilizer) from under a national park, has faced many challenges. Not least spiralling costs and financing issues that saw Sirius sold to Anglo in 2020 at a bargain basement.

Vast Resource PLC (AIM: VAST). stated that it raised £420,000 through a subscription. The proceeds will be used to purchase additional mechanised equipment at its Baita Plai Polymetallic Mine in Romania.

Individual shareholders who were already shareholders subscribed for 50mln shares at 0.84 pence each share. This is a 60% premium over the closing share price on Monday.

Technology Minerals PLC, (LSE: TM1) announced that its first battery recycling facility is now operational. The company released its first results since November floating.

Recyclus, the 49%-owned associate, announced the opening in Tipton, West Midlands of the lead-acid batteries recycling site. It was inaugurated in January.

Oriole Resources PLC, (AIM: ORR), received a £403,000 rebate from Her Majesty’s Revenue and Customs.

This rebate applies to a research-and-development (R&D), tax relief claim for geoscientific advances made by the company through its exploration programs.

Tharisa Plc (LSE: THS). reported that its platinum group metals (PGMs), and chrome production declined in the second quarter compared to the record-setting first quarter, despite higher metal prices.

The company produced 44,100 ounces PGMs from the second quarter to March 2022, a decrease of 7.5% compared to its first quarter. However, the average PGM basket cost rose 17.2% to US$2,806 per ounce. The average price of chrome rose 9.9% to US$177 per tonne, while the output of chrome fell 6.7% to 374,000.900 tonnes.

Caledonia Mining Corporation PLC, (AIM: CMCL), reported that production from its Blanket mine in Zimbabwe reached a new record during the last quarter. This was due to increased operations following the completion of a central shaft.

In the three months from March 2022, the mine produced 18,515 ounces of gold (oz), a 40% increase over the first quarter of last year.

Blencowe Ressources PLC (LSE :BRES). has increased the resource at Orom-Cross graphite Project in Uganda by 50%, to 24.5mln tons of ore grading with 6% total graphite (TGC)

The initial 15 years of mine life are covered by the resource.

Author @ABMckinley

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