- Bt Group 313.70 0.00
- Caza Oil & Gas 12.00
+0.25 - Gulf Keystone 151.50 0.00
- Iofina 206.00 0.00
- Itv 139.10 0.00
- Kingfisher 348.60 0.00
- Max Petrol 4.08 0.00
- Sefton Res. 0.48
-0.05 - Tesco 344.60 0.00
Mining Sector: DiamondCorp's shares jump after unit agrees loan for Lace mine
Friday, 21st September 2012
DiamondCorp (LON:DCP) was the sector's biggest riser after its 74%-owned subsidiary, Lace Diamond Mines, agreed a loan from the Industrial Development Corporation of South Africa Ltd.The loan will be used for the underground development and purchase of mining equipment required for completion of a 1.2 mtpa block cave mining operation on the 47 Level at the Lace mine.
IDC will provide a project loan of R220m, representing approximately 77% of the forecast R285m peak funding requirement for the 47 Level block cave development, which includes a 15% contingency.
It has been agreed that DiamondCorp shall arrange additional funding of R100m for Lace prior to the initial drawdown of the IDC facility.
The total funding available for the project will then be R320m, representing a 33% contingency on the company`s forecast peak funding requirement.
Regency Mines (LON:RGM) was another strong riser after it issued an update on exploration activities in Western Australia.
The company said that during last year its subsidiary, Regency Mines Australia Pty Ltd, applied for three exploration tenements, located approximately 220km to the south east of Kalgoorlie in Western Australia.
The combined area of 271 sq km was selected to explore for 'Tropicana' style gold mineralisation along the Yilgarn/Albany - Fraser contact zone.
In the past two months, all three Fraser West exploration licences were approved.
Within 20km of Regency's tenement boundary, a large discovery of Ni-Cu-Co mineralisation has recently been made by Sirius Resources NL, referred to as the Nova deposit.
Several companies with ground near Sirius's tenements are accelerating exploration efforts, and Enterprise Metals, a company with tenements neighbouring Regency, on 17 September released anomalous soil results indicating base metal exploration potential.
Regency's exploration tenements were acquired on vacant ground along the Fraser Range margin, and are located in-between Sirius's tenements.
Sirius had previously completed a soil geochemical sampling programme across the Fraser Range district, with many targets not previously drill tested.
All digital geochemical data relating to the ground that Sirius surrendered in 2011 was made available on open file recently.
Regency Mines Australasia director Helen Salmon said: "This is the most keenly watched exploration area in Australia at the moment, and Regency is in the centre of it holding a large and prospective tenement package along the contact zone".
Regency's exploration team is currently designing an exploration programme for gold and base metals, consisting of an air core drill programme to investigate (a) anomalous gold over 10km of strike, (b) an open file AEM conductor, and (c) a magnetic unit of similar size to the recent Nova discovery.
African Eagle Resources (LON:AFE) has revealed a revised and upgraded JORC compliant resource estimate for the Wamangola deposit, part of the Dutwa nickel project.
This new resource estimate, combined with the associated resource estimate at the nearby Ngasamo deposit which was also recently upgraded, raises the total estimated resource at the Dutwa nickel project to 107Mt at 0.92% Ni.
The company said the Wamangola 'indicated' resource has increased 13% to 55.2 million tonnes with a grade of 0.94% nickel.
The revision to the resource results from drilling campaigns performed by the company in late 2011 and early this year at both the Wamangola and Ngasamo deposits.
AngloGold Ashanti (LON:AGD) has been hit by a strike in South Africa.
It occurred on the night shift at its Kopanang mine. Currently the strike is confined to this one mine.
The company hopes to hold discussions with the employees and their representatives.
The Kopanang mine produced 90,000 ounces of gold in the first half of this year, which was about 4% of AngloGold Ashanti's total production over that period.
The company's South African operations accounted for approximately 32% of total group production during the first half of the year.
Approximately 5,000 workers are employed at Kopanang, which lies roughly 200km southwest of Johannesburg.
Lonmin (LON:LMI) expects its wage bill to rise by about 14% following the settle of the labour dispute with workers.
It also revealed that more than 80% of its workers reported for duty at the Marikana mine in South Africa yesterday (20 September, following the wage settlement.
The company has issued two documents to the press in South Africa.
The first is an announcement providing additional background for journalists on the history of the dispute and its settlement.
The other is a fact sheet for journalists with additional insight into the terms of the settlement.
This includes a preliminary assessment that Lonmin's wage bill is expected to rise by about 14% from 1 October.
The sector's biggest faller was Altona Energy (LON:ANR) down by 10% in late afternoon trading.
At 4:20pm:
(LON:AFE) African Eagle Resources share price was +0.13p at 3.25p
(LON:AGD) share price was 0p at 2237.5p
(LON:AMI) American Investment Trust share price was +10.25p at 313.5p
(LON:ANR) share price was -0.37p at 3.38p
(LON:AQP) Aquarius Platinum share price was -1.32p at 43.68p
(LON:BEM) share price was -0.13p at 8.5p
(LON:BKY) share price was 0p at 24.5p
(LON:CEY) Centamin Egypt Ld share price was -1.12p at 95.38p
(LON:CHL) share price was -0.25p at 11.5p
(LON:CZA) share price was -0.12p at 16.63p
(LON:DCP) share price was +1p at 5.75p
(LON:FDI) Firestone Diamonds share price was +0.01p at 4.38p
(LON:FRES) share price was +6.5p at 1835.5p
(LON:GEMD) share price was -10.6p at 178.4p
(LON:HOC) share price was +6.3p at 487.3p
(LON:KMR) Kenmare Resources share price was +0.71p at 43.27p
(LON:RGM) share price was +0.11p at 0.99p
(LON:VED) Vedanta Resources share price was +30p at 1084p
Story provided by StockMarketWire.com
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