Proactiveinvestors United Kingdom articles http://www.miningcapital.com Proactiveinvestors United Kingdom articles RSS feed en Tue, 17 Oct 2017 21:38:12 +0100 http://blogs.law.harvard.edu/tech/rss Genera CMS action@proactiveinvestors.com (Proactiveinvestors) action@proactiveinvestors.com (Proactiveinvestors) Ferrum Crescent targeting maiden JORC resource at Toral by year end http://www.miningcapital.com/companies/stocktube/8246/ferrum-crescent-targeting-maiden-jorc-resource-at-toral-by-year-end-8246.html Ferrum Crescent PLC (LON:FCR) executive directors Laurence Read and Myles Campion tell Proactive they're to changing their near-term approach to the exploration and evaluation of FCR's key asset in Spain, the Toral zinc project.

The first full-scale historical review of core samples from Toral has now been undertaken. That’s allowed all historical information to be processed into a central model with a single data format, which the company will be able to use to plan around more effectively in the future.

It will also lead to a maiden JORC resource for Toral, to be completed by the end of this year, incorporating the data from the 2017 drilling programme.

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Tue, 17 Oct 2017 08:39:00 +0100 http://www.miningcapital.com/companies/stocktube/8246/ferrum-crescent-targeting-maiden-jorc-resource-at-toral-by-year-end-8246.html
Vast Resources enjoys record third quarter http://www.miningcapital.com/companies/stocktube/8245/vast-resources-enjoys-record-third-quarter-8245.html The team at Vast Resources PLC (LON:VAST) tell Proactive they've seen a record third quarter, with operations at the Manaila polymetallic mine in Romania and the Pickstone-Peerless gold mine in Zimbabwe outperforming the previous quarter in terms of tonnes mined, tonnes milled, copper concentrate produced and gold produced.

At Manaila there was a 31% increase in copper concentrate produced, although grade dropped marginally. Zinc production fell, but gold production rose.


At Pickstone-Peerless, in which Vast holds a 25% stake, ore mined and milled hit their highest levels since June 2016.

Gold production by 17% increased to 4,738 ounces.

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Mon, 16 Oct 2017 16:04:00 +0100 http://www.miningcapital.com/companies/stocktube/8245/vast-resources-enjoys-record-third-quarter-8245.html
Strategic Minerals quickly building up pieces of the puzzle with copper acquisition http://www.miningcapital.com/companies/stocktube/8243/strategic-minerals-quickly-building-up-pieces-of-the-puzzle-with-copper-acquisition-8243.html Strategic Minerals chairman Alan Broome and director Peter Wale tell Proactive's Andrew Scott they've entered into a binding term sheet to acquire, subject to due diligence, the Leigh Creek copper mine in South Australia from Resilience Mining Australia.

The project represents a near-term low-capex copper production opportunity with early cashflow generation potential.

They also update on developments at Redmoor and CARE as well as giving a few words following on from Cobre's quarter of record sales.

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Mon, 16 Oct 2017 15:22:00 +0100 http://www.miningcapital.com/companies/stocktube/8243/strategic-minerals-quickly-building-up-pieces-of-the-puzzle-with-copper-acquisition-8243.html
Have mining markets turned for the better ? http://www.miningcapital.com/companies/stocktube/8235/have-mining-markets-turned-for-the-better--8235.html Mining Capital's Alastair Ford asks whether we could be beginning to see a pattern of junior mining recovery emerging.

He says early 2017 saw a couple of new listings in London and a spate of activity in Canada as the gold price and mining in general found support in the utterings and policies of Donald Trump.

But as the year's gone on new money into the sector at the smaller end has been a trickle rather than a flow.

However with the listings in August of Altus Strategies (LON:ALS), Cora Gold on Monday and the planned IPO next year of Toro Gold, Ford reckons we could now have a clear direction of travel for the mining market.

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Fri, 13 Oct 2017 11:13:00 +0100 http://www.miningcapital.com/companies/stocktube/8235/have-mining-markets-turned-for-the-better--8235.html
Harvest Minerals bags first sales for KPfertil http://www.miningcapital.com/companies/stocktube/8231/harvest-minerals-bags-first-sales-for-kpfertil-8231.html Mark Heyhoe, chief operating officer for Harvest Minerals Limited (LON:HMI), tells Proactive they've recorded first sales of their fertiliser replacement KPfertil.

The sales were in response to requests from customers even though the company is waiting for formal certification for KPfertil as a remineraliser from the Brazilian Ministry of Agriculture.

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Thu, 12 Oct 2017 14:22:00 +0100 http://www.miningcapital.com/companies/stocktube/8231/harvest-minerals-bags-first-sales-for-kpfertil-8231.html
Asiamet's 'Mr Zinc' a happy man as BKZ increasingly looks like a stand-alone project http://www.miningcapital.com/companies/stocktube/8229/asiamet-s-mr-zinc-a-happy-man-as-bkz-increasingly-looks-like-a-stand-alone-project-8229.html Steve Hughes, VP of exploration at Asiamet Resources PLC (LON:ARS), caught up with Proactive for a quick update on the back of latest exploration work at BKZ.

He says he's increasingly confident they've found a new stand-alone polymetallic deposit at the prospect in Kalimantan, Indonesia.

Hughes says they've still got the drill rig in the immediate area - one hole's in progress and they're starting to head further south.

''We'll finish up two more holes and then that'll be all the scout drilling completed'', Hughes says.

''Then we'll do some evaluation and I'm pretty sure we'll upgrade the program to delineation drilling''.

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Thu, 12 Oct 2017 10:41:00 +0100 http://www.miningcapital.com/companies/stocktube/8229/asiamet-s-mr-zinc-a-happy-man-as-bkz-increasingly-looks-like-a-stand-alone-project-8229.html
Q&A with Strategic Minerals on 27 October - send us your questions http://www.miningcapital.com/companies/news/185434/qa-with-strategic-minerals-on-27-october-send-us-your-questions-185434.html Wed, 11 Oct 2017 13:31:00 +0100 http://www.miningcapital.com/companies/news/185434/qa-with-strategic-minerals-on-27-october-send-us-your-questions-185434.html Tharisa on the lookout for opportunities after excellent year of production http://www.miningcapital.com/companies/stocktube/8223/tharisa-on-the-lookout-for-opportunities-after-excellent-year-of-production-8223.html Phoevos Pouroulis, chief executive of Tharisa PLC (LON:THS) tells Proactive they produced 360,500 tonnes of chrome concentrates during the fourth quarter of the financial year, up 8% quarter-on-quarter.

Full year production totalled 1.3mln tonnes of chrome concentrates, an increase of 7% on the corresponding period a year ago.

This production also included 323,000 tonnes of higher margin specialty chrome and 143,600 tonnes of platinum group metals.

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Wed, 11 Oct 2017 11:56:00 +0100 http://www.miningcapital.com/companies/stocktube/8223/tharisa-on-the-lookout-for-opportunities-after-excellent-year-of-production-8223.html
Greatland Gold identifies multiple targets at Ernest Giles East http://www.miningcapital.com/companies/stocktube/8222/greatland-gold-identifies-multiple-targets-at-ernest-giles-east-8222.html Gervaise Heddle, chief executive of Greatland Gold plc (LON:GGP), tells Proactive's Andrew Scott they've identified multiple gold targets at Ernest Giles East following a programme of mobile metal iron (MMI) surface geochemistry and ground gravity surveys.

Specifically, multiple gold anomalies were identified over 60 kilometres of strike.

Several clusters of MMI anomalies were seen, with ‘key clusters’ having shown strikes of more than 9 kilometres long and 3 kilometres wide.

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Wed, 11 Oct 2017 11:41:00 +0100 http://www.miningcapital.com/companies/stocktube/8222/greatland-gold-identifies-multiple-targets-at-ernest-giles-east-8222.html
Resource at Azarga Metals' Unkur project to easily exceed 165mln tonnes http://www.miningcapital.com/companies/stocktube/8219/resource-at-azarga-metals-unkur-project-to-easily-exceed-165mln-tonnes-8219.html Dusty Nicol, chief executive of Azarga Metals Corp (CVE:AZR), updates on latest developments at the Unkur Copper-Silver project in Russia.

The current inferred resource stands at 42mln tonnes at a grade of 0.9% copper equivalent.

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Tue, 10 Oct 2017 14:18:00 +0100 http://www.miningcapital.com/companies/stocktube/8219/resource-at-azarga-metals-unkur-project-to-easily-exceed-165mln-tonnes-8219.html
Q&A with Amur Minerals' Robin Young next week - send us your questions http://www.miningcapital.com/companies/news/185354/qa-with-amur-minerals-robin-young-next-week-send-us-your-questions-185354.html Tue, 10 Oct 2017 14:12:00 +0100 http://www.miningcapital.com/companies/news/185354/qa-with-amur-minerals-robin-young-next-week-send-us-your-questions-185354.html ''Show me the money!'', says Strategic Minerals' John Peters as Cobre clocks up record sales http://www.miningcapital.com/companies/stocktube/8215/-show-me-the-money-says-strategic-minerals-john-peters-as-cobre-clocks-up-record-sales-8215.html John Peters, managing director of Strategic Minerals Plc (LON:SML), tells Proactive's Andrew Scott sales of US$2.036 mln from the Cobre magnetite tailings project for the three months to September 2017 marked a new record for the company.

The latest sales record is based around production of 29,539 tonnes.

The sales in dollar terms represent a 300% increase on the sales figure for the corresponding period a year ago.

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Tue, 10 Oct 2017 11:18:00 +0100 http://www.miningcapital.com/companies/stocktube/8215/-show-me-the-money-says-strategic-minerals-john-peters-as-cobre-clocks-up-record-sales-8215.html
W Resources PLC's Michael Masterman LIVE in the Proactive studio http://www.miningcapital.com/companies/news/183911/w-resources-plc-s-michael-masterman-live-in-the-proactive-studio-183911.html Wed, 13 Sep 2017 11:05:00 +0100 http://www.miningcapital.com/companies/news/183911/w-resources-plc-s-michael-masterman-live-in-the-proactive-studio-183911.html Tullow Oil, Tower Resources, Xcite Energy http://www.miningcapital.com/columns/sp-angel/26395/tullow-oil-tower-resources-xcite-energy-26395.html Headlines

Tullow Oil (LON:TLW – 288p) – RBL Relief
Tower Resources (LON:TRP – 2.38p) – Best of Both
Xcite Energy (LON:XEL – 1.58p) – Self Inflicted, But a Salutatory Lesson

In Brief

Tullow Oil (LON:TLW – 288p) – RBL Relief: While there is an argument for saying that Tullow's success at securing the continuation of its RBL facility is to be expected, there has been concern that either the terms would be restrictive, or the headline amount would decline. We believe that the shares will rally on the back of today's news, not only because of the removal of uncertainty, but also the fact that in some way, it is a vindication of the Company's finances, offering and team.
Tower Resources (LON:TRP – 2.38p) – Best of Both: Today's news that the Company's board has been significantly restructured is a reflection of the times currently facing exploration companies and typical of the management team. We believe in putting shareholder value first, Management has demonstrated their commitment to the longer term success of the Company, ensuring that in as far as possible, the prospectivity offered by the Company's acreage is retained. Furthermore, there is possibility that in moving to part time roles the Directors' inevitable involvement with other companies could generate further opportunity for Tower and its shareholders. We believe that shareholders should thank management for the steps that they have taken for the benefit of the Company.
Xcite Energy (LON:XEL – 1.58p) – Self Inflicted, But a Salutatory Lesson: We wish it could have been different, but the seeds of this destruction were sown the day Management executed the agreements for the debt without having cash flows to cover the cost. Management must take full responsibility for this failure, and for not adopting an alternative strategy when it was clear that their strategy clearly wasn’t working. We can see no winners in this as the shareholders have lost their investment and creditors will not get value for the perfection of the security package, as the issues with the asset's development don’t magically disappear. There is at least some comfort for the sector, as the failures at Xcite are nothing to do with systemic risk, arising from things like drilling operations, subsurface uncertainty, or oil market volatility, but self-inflicted by a management team who exposed the Company's owners to excessive financial risk.

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10/18/17 http://www.miningcapital.com/columns/sp-angel/26395/tullow-oil-tower-resources-xcite-energy-26395.html
Today's Market View - Coal of Africa Birimian Limited FinnAust Mining Golden Star Resources http://www.miningcapital.com/columns/sp-angel/26397/today-s-market-view-coal-of-africa-birimian-limited-finnaust-mining-golden-star-resources-26397.html Coal of Africa (LON:CZA) – September quarter highlights search for a cash generating asset
Birimian Limited (ASX:BGS) – high-grade lithium resource reported at Goulamina within the Bougouni license in Mali
FinnAust Mining* (LON:FAM) BUY Target Price 15p – Huntsman raise price for titanium dioxide pigment effective Jan 2017
Golden Star Resources (CVE:GSR) – Mining Lease for Mampon deposit

FTSE 100 is off today with nearly all sectors in the red amid an increase in sovereign bond yields.
Sovereign bonds are being sold off on the back of reports of accelerating inflation in Eurozone countries, positive UK GDP numbers with the US expected to release its numbers later today (expectations for a stronger economic growth in Q3).
US 10y bond yields hit 1.87% this morning, the highest since May/16; UK 10y yields were up at 1.30% today, the highest since Brexit; German 10y yields came at 0.22%, the highest since May/16 as well.
The US$ held near a seven month high with gold little changed at $1,267/oz ahead of US Q3 GDP data.
Brent is flat this morning with OPEC members meeting in Vienna today to discuss the breakdown of the proposed production cuts. Non-OPEC producers will join discussions on Saturday.
Iron ore futures prices extended gains to five days now climbing 2.1% today amid gains in coking coal and steel prices.

Economic News
US – Core capital goods orders fell more than forecast in Sep pointing to slowdown in business investment towards the end of Q3 following a strong start to the quarter.
Weekly jobless claims are continuing to linger around the lowest level in several decades with a four-week average at 253k.
Claims average 250k in four weeks ending Oct 7 marking the lowest reading since late 1973.
First reading of the Q3 GDP is out later today with estimates for growth to have rebounded from a weak H1/16 driven by a recovery in business investment and continuing strength in consumer spending.

Germany – Region level data point to an increase in inflation rate through Oct with nationwide numbers out later today.
Estimates are for inflation to come in at 0.1%mom/0.7%yoy, up from 0.0%mom/0.5%yoy in Sep.
A revision in inflation expectations may finally allow the ECB to consider winding down its monetary easing programme.
Bund yields have been edging higher recently hovering around levels last seen in May.

UK – Economy expanded at a faster than expected rate in Q3 driven by a stronger growth in services (+3.0%yoy v 2.7%yoy).
Manufacturing growth slowed to 1.2%yoy, down from 1.6%yoy in Q2, while construction came out as a drag on growth coming in at -0.2%yoy v +0.4%yoy in Q2.
Q3 GDP (%qoq): 0.5 v 0.7 in Q2 and 0.3 forecast.
Q3 GDP (%yoy): 2.3 v 2.1 in Q2 and 2.1 forecast.
Positive GDP numbers pushed yields on 10 year gilts to the highest since referendum results on the back of expectations for the BoE to avoid further easing in the near term.
Brexit effect is expected to take time and forecast to slow  economic growth rate to 0.9% next year, half the rate estimated for this year, led by a decline in business investments and a slower private consumption.

France – Quarterly growth slightly underperformed expectations in Q3 with a slower pace of expansion led by weaker growth in private spending and business investments.
Q3 GDP (%qoq): 0.2 v -0.1 in Q1 and 0.3 forecast.
Q3 GDP (%yoy): 1.1 v 1.3 in Q1 and 1.2 forecast.
Positive consumer confidence readings in Oct signal a potential acceleration in household spending in the final quarter with the index hitting the mark reached in May this year which was the highest reading since Oct/07.
A separate report on inflation showed consumer prices returned to growth in Oct after a one month of negative change as the effect of lower oil prices fall away.
CPI (Harmonised, %mom): 0.1 v -0.2 in Sep and 0.2 forecast.
CPI (Harmonised, %yoy): 0.5 v 0.5 in Sep and 0.6 forecast.

Spain – GDP slowed 0.2pp to 3.2% in Q3 with growth continued to be driven by consumer and export sectors strength.
Q3 GDP (%qoq): 0.7 v 0.8 in Q1 and 0.7 forecast.
Q3 GDP (%yoy): 3.2 v 3.2 in Q1 and 3.1 forecast.
One of the fastest growing economies in the Eurozone posted an acceleration in inflation to 0.8%mom/0.5%yoy in Oct with the rise “mainly explained by the increase in the prices of electricity and fuels”.

Currencies
US$1.0905/eur vs 1.0911/eur yesterday.   Yen 105.31/$ vs 104.69/$.   SAr 13.846/$ vs 13.938/$.   $1.214/gbp vs $1.222/gbp.
0.758/aud vs 0.761/aud.   CNY 6.780/$ vs 6.780/$.

Commodity News
Precious metals:
Gold US$1,266/oz vs US$1,268/oz last week –
     Gold ETFs 65.5moz vs 65.4moz last week – significant fall in ETF holdings
Platinum US$967/oz vs US$962/oz last week
Palladium US$615/oz vs US$622/oz last week
Silver US$17.59/oz vs US$17.64/oz last week

Base metals:  
Copper US$ 4,807/t vs US$4,759/t last week –
Aluminium US$ 1,706/t vs US$1,678/t last week –
Nickel US$ 10,420/t vs US$10,195/t last week
Zinc US$ 2,373/t vs US$2,354/t last week – iron water pipes increasingly coated in zinc to extend life to >100 years.
The use of zinc to coat iron water pipes is growing due to its ability to extend life spans.  The zinc serves to corrode faster than the iron causing its to dissolve sooner and defer corrosion of the iron.  A polythene ecasement keeps bacterial away from the piping to minimize organic factors which cause corrosion.
Longer lifespans is good news for road users with less roadworks needed bad news for contractors in the longer term who enjoy digging holes in roads.
Lead US$ 2,064/t vs US$2,063/t last week
Tin US$ 20,530/t vs US$20,460/t last week

Energy:
Oil US$50.5/bbl vs US$50.3/bbl last week
Natural Gas US$3.047/mmbtu vs US$2.723/mmbtu last week – big change
Uranium US$19.70/lb vs US$19.70/lb last week

Bulk:   
Iron ore 62% Fe spot (cfr Tianjin) US$60.8/t vs US$60.1/t
Chinese steel rebar 25mm US$410.0/t vs US$410.9/t – steel exports out of China rise by 2.4% in the first nine months of the year to 85mt
Chinese steel producers continue to raise exports according to the China Iron & Steel Association.
Export growth was mainly into emerging Asian markets where construction demand is high.
Belt and Road Initiatives are expected to continue to increase demand for Chinese steel.
The association reports that the 373 CISA-member steel smelters (~80% of capacity) reported Rmb25m ($3.7m) in profit marking a recovery from heavy losses last year by cutting costs though this profit generation is said to be still very vulnerable.
Q4 demand will be led by real estate, construction and machinery manufacturing
Machinery manufacturing, such as automobile production, which has been growing by roughly 10 percent year-on-year in recent years, is also a key engine of steel demand. Yet the demand won't be robust in the rest of the year.

Thermal coal (1st year forward cif ARA) US$69.8/t vs US$71.0/t last week
Premium hard coking coal Aus fob US$252.4/t vs US$249.1/t

Other:
Tungsten - APT European prices $190-198/mtu vs $191-197/mtu unch last week

Company News

Coal of Africa (LON:CZA) 3.2pence, Mkt Cap £62.5m –September quarter highlights search for a cash generating asset
Coal of Africa reports that the Integrated Water Use Licence for its Makhado coal project in the Limpopo Provicen of S Africa remains suspended following an appeal by a group called the Vhembe Mineral Resources Forum to Department of Water and Sanitation. The appeal was announced in April this year and though discussions are reported to be continuing, there does not appear to be much sign that a resolution is imminent while the appeal process follows its course.
When the regulatory issues have been resolved, the Makhado project will require a 26 month construction period followed by a 4 month period to ramp production up to a planned production of 5.5mtpa of saleable coal.
Elsewhere, the company’s Mooiplaats thermal coal mine remains on care and maintenance while discussions with potential purchasers proceed and a decision on whether to proceed with the plant modification project awaits the outcome of an application to divert a non-perennial stream.
The company’s current “focus is to obtain a cash generating asset for the group. This will allow the Company access to sufficient funds over time to cover company overheads, pre production development costs for the Makhado Project and all regulatory charges to ensure the continuation of full compliance on all the current assets.”
The company notes that “the coal commodity market has experienced a sensational recovery during CY 2016” with a year to date increase of 142% to over US$210/tonne and a 56% rise in the thermal coal price.
Conclusion: It appears that there has been little progress in advancing the company’s projects while management addresses the regulatory obstacles,  which must be particularly frustrating at a time when the company is observing a significant turnaround in coal commodity prices.

Birimian Limited (ASX:BGS) A$0.35, mkt cap A$63.6m – high-grade lithium resource reported at Goulamina within the Bougouni license in Mali
Birimian reports a high tonnage and high-grade lithium deposit at Goulamina within the Bougouni lithium project in Mali
The new JORC resource contains 15.5mt grading 1.48% Li2O for 229,000t of contained lithium oxide
High grade near surface should allow for early cash flow generation.
Further drilling is expected to add to the resource through resource extensions with 1.67% seen in the West Zone
This resource grade ranks Bougouni grade as the fifth highest on our list of known hard rock lithium resources and no. 15 in terms of resource size though it looks like it will become a larger project..
There is little difference in the grade and tonnage of the resource by varying the cut off grades from 0-0.6/0.7% Li2O suggesting this is a robust resource.
The resource looks very professionally done and presented by Cube Consulting with support by CSA Global who did work on a preliminary mining study.
The company press release contains full details of the JORC resource along with pictures of the block model, cross sections, plan views and a particularly grade/tonnage curve. See:
http://www.birimian.com/pdfs/MaidenResourceAtGoulaminaConfirmsLithiumDeposit27Oct16.pdf

FinnAust Mining* (LON:FAM) 6.5p, Mkt Cap £32.1m – Huntsman raise price for titanium dioxide pigment effective Jan 2017
BUY Target Price 15p
·        Huntsman increased the price of titanium dioxide pigment effective from January 2017 by US$0.07/lb
Prices will rise by €150/t or $160/t t in the EMEA, APAC and Latin America regions and $0.07/lb in North America.
·        The price move should translate into higher prices for titanium mineral sand concentrates
We recently published an initiation note on FinnAust see link for full note click here for full note
*SP Angel act as nomad and broker to FinnAust

Golden Star Resources (CVE:GSR) C$1.17, Mkt Cap C$385m – Mining Lease for Mampon deposit
Golden Star reports that it has secured the mining lease for the high grade oxide gold deposit at Mampon in Ghana. Mampon which contains a 45,000 oz resource at a grade of 4.6g/t gold and is located approximately 80km north, via existing good quality roads, of the company’s processing plant at Bogoso.
The ability to blend this higher grade material with material from the company’s Prestea open pits which are being used “to bridge the gap between the Bogoso refractory operations ceasing production and the commencement of production from the high grade Prestea Underground Gold Mine … which is expected to occur in the second quarter of 2017.” should extend the life of the open mining operations and perhaps help to contain costs during the transition period.
The company notes that the life of the open pits at Prestea has already been extended until the second half of 2017 from the original expectation that they would become exhausted by the end of Q3 2016.
Additional production from Mampon had not been included in the company’s published guidance that 2016 production is expected to fall in the range 180,000 -205,000 at costs between US$815-925/oz.
Golden Star is moving into high grade non-refractory underground mining operations at both Prestea and Wassa which the company expects to increase annual gold production to around 280,000oz pa at cash costs of US$695/oz and AISC of US$903/oz for the five year period from 2017 onwards.
During H1 2016, the company produced 95,677 oz of gold at a cash cost of US$826/oz.
Conclusion: The company is in the process of a strategic shift into high grade underground mining at Prestea and Wassa as it phases out production of lower grade refractory open-pit ore. In our opinion, securing the licence for Mampon provides a readily mineable, source of high grade oxide feed to help smooth the transition and maintain production.

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10/18/17 http://www.miningcapital.com/columns/sp-angel/26397/today-s-market-view-coal-of-africa-birimian-limited-finnaust-mining-golden-star-resources-26397.html