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Mining news summary: Caledonia Mining, GoldStone Resources, Ormonde Mining, Beowulf Mining

Published: 22:18 13 Aug 2011 AEST

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This week’s news in the mining sector included a quarterly results report from Caledonia Mining (LON:CMCL, CVE:CAL). The gold miner posted sparkling results on the back of its flagship Blanket gold mine in Zimbabwe, with gross profits soaring more than 300 per cent thanks to higher gold prices and production.

The group plans to increase production even further and is upbeat on outlook.

The Toronto and London – listed group revealed that gold produced during the second quarter to June at the Blanket mine increased by 12% to 8,226 ounces from the 7,322 ounces produced in the preceding quarter.

Gold production in the quarter was 141 percent higher than the 3,408 ounces of gold produced in the second quarter of 2010.

European Goldfields (LON:EGU) also reported its second quarter results this week.

The company cut its second quarter pretax losses and struck an upbeat note on outlook, saying it remained confident of making progress towards becoming the largest primary gold producer in Europe.

The company's results for the three-month period to June 2011 comprise primarily of activities related to operations of its 95%-owned subsidiary Hellas Gold in Greece, and exploration and development programmes in Romania and Turkey.

Second quarter pre-tax losses totalled US$15.2m, down from US$20.3m last time as sales eased to US$11.1m from $11.9m.

Gross profits increased to US$2.8m from US$579,000 a year ago.

Other companies that reported on their results included EMED Mining (LON:EMED).

In this week’s interim results statement, for the six months ended 30 June 2011, EMED highlighted that a global supply shortage underpins a strong long-term outlook for copper prices, which have recently been setting record prices.

Given the current high price of copper, around US$4.35 a pound, EMED Mining’s Rio Tinto copper mine is expected to create quick profitability and present opportunities for rapid growth within the Iberian peninsula, said EMED.

Funding updates included an announcement from Central Asian Minerals and Resources PLC (LON:CMRP).

The group has been very busy at the Aprelevka gold mine in Tajikistan since it bought out its joint venture partner in April, and announced plans to raise £4.26 million in a placing to finance activities there.

In April 2011, CAMAR completed the acquisition of Gulf International Minerals Ltd, the joint owner of the Tajik-Canadian Limited Liability Company Aprelevka which is licensed to operate the gold mine of the same name.

Since the acquisition, CAMAR has undertaken extensive mapping and sampling across Aprelevka's licence areas.

Elsewhere in the sector, Africa-focused Goldstone Resources (LON:GRL) revealed that initial drill results from its Homase/Akrokerri project in Ghana confirmed high grade gold extended to depth.

The drilling has been testing the extensions of the 405,600 ounce gold resource and the firm said the first five holes all hit "significant" mineralisation.

The best results included 13.6 metres with 5.9 g/t gold and 8.5 metres at 9.5 g/t gold.

All five holes confirmed that the high-grade gold shoot under part of the previously mined Homase open pit extended to at least 140m depth below the bottom of the dormant pit.

In other news, Beacon Hill Resources (LON:BHR) said this week it is confident of making progress in its talks to secure crucial rail infrastructure so that it can export larger volumes of coal from the Minas Moatize mine in Mozambique.

In June Beacon Hill began producing coal from the open pit at the Minas Moatize mine in Mozambique’s Tete province. It is now preparing to make its first export shipment later this year – by trucking produced coal to the port of Beira.

Meanwhile, Kalahari Minerals (LON:KAH) chairman Mark Hohnen welcomed the latest resource upgrade for the firm's Husab uranium project in Namibia.

He said on Wednesday that Husab’s scale and economics underpin the project’s “fantastic potential” to become one of the world's largest and most significant long life uranium mines.

Earlier that day, Australian mine developer Extract Resources (ASX:EXT), which is 42.74 per cent owned by Kalahari, unveiled a 37 per cent increase in Husab’s reserves and a 42 per cent increase in contained uranium.

Ormonde Mining (LON:ORM) this week reported more encouraging drilling results from its flagship tungsten project at Barruecopardo, western Spain.

The company said results from the four latest holes at Barruecopardo show tungsten mineralisation of good width and grade.

Highlights include 11 metres grading 0.24% tungsten trioxide (WO3); 9 metres grading 0.64% WO3; 9 metres grading 1.37% WO3 and 14 metres grading 0.45% WO3.

Beowulf Mining PLC (LON:BEM) has completed the drilling programme on the Kallak South iron ore deposit, confirming its extent, and it is currently drilling on Kallak North to test if the two areas are in fact one ore body.

Kallak North and South form the group’s Kallak iron ore project in north Sweden.

Gold miner Stratex International (LON:STI) also released a drilling update this week.

Stratex announced “significant” results from drilling at its Megenta gold discovery in the Afar region of Ethiopia along with new high-grade samples from its nearby Akehil gold prospect.

The firm, which is focused on Djibouti, Ethiopia and Turkey, said it had “highly encouraging” results from hole MG-DD-10.

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