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Proactive weekly mining news summary, including Shanta Gold, Condor, IMIC and Ximen Mining

Published: 17:30 26 Jul 2014 AEST

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A relatively quiet week in the small cap mining sector began with Shanta Gold (LON:SHG) showing it was firing on all cylinders after it reported record first quarter production from the New Luika mine in Tanzania.

It unearthed 21,940 ounces of the precious metal in the second quarter, up 8% on the prior three months, while sales were 22,400 ounces at US$1,307 an ounce. The group said all in sustaining cash costs were US$959.

The group has also revised its production guidance: it said output will be 80-83,000 ounces this year compared with its previous forecast of 80,000 ounces.

Shanta expects all sustaining costs to be in the order of US$900 to US$1,000.

Meanwhile, the past month has seen a 33% rise in the value of Condor Gold (LON:CNR), but at just over 85p a share there is an argument that the current price barely recognises the potential of the business and its flagship asset, La India, in Nicaragua.

A recent research note by the highly rated mining team at Numis Securities reckons the stock is worth a “base case” 110p, while the “take-out” valuation is 139p.

The target rises to 161p at a gold price of US$1,400 an ounce and 231p at US$1,600, according to the broker’s sensitivity analysis.

Elsewhere, Toronto-listed Ximen Mining (CVE:XIM) declared itself 'pleased' with the results of initial rock samples from the Gold drop property in British Columbia.

Of 40 samples taken from the north vein system, nine returned values of greater than 10 grams per tonne  (g/t) of the yellow  metal, to a maximum of 56.2 g/t gold over 0.55m true thickness, the company said.

Exploration, including trenching, is now continuing to explore other targets on the property, Ximen revealed.

In other news, International Mining & Infrastructure Corp (LON:IMIC) announced that Ousmane Kane will step down as chief executive and leave the company, returning to Mauritania at the end of the month.

It appeared a case of ‘job done’ for Kane, who oversaw the successful acquisition of Afferro Mining, the implementation of a development plan for the newly acquired assets and launch of necessary feasibility studies.

IMIC said the process of recruiting Kane’s successor was ‘well advanced’ and an appointment will be announced in the near future.

Seeing Machines' (LON:SEE) fatigue monitoring technology has taken two more major strides with the world’s largest Caterpillar (CAT) dealer signing up and a road transport trial starting in South Africa.

Finning International, the world's largest CAT dealer, has signed an exclusive sales and marketing agreement for Seeing Machines’ DSS driver monitoring product for mining vehicles in Canada, Chile, Argentina, Bolivia and Uruguay.

In South Africa, a trial of DSS has started with Insurance Underwriting Managers (IUM), a commercial transport insurance underwriter.

IUM will trial DSS with a major South African lorry fleet to assess the technology's ability to reduce fatigue and distraction related road accidents.

Ortac Resources (LON:OTC) revealed this week it had mined 400 tonnes of ore as part of the first phase of its underground trial at the Šturec deposit in Slovakia.

Taken from the Andrej exploration adit, the ore will be used for the metallurgy with mining activity now suspended while this test work is carried out.

Vassilios Carellas, Ortac’s chief executive, said: "As previously reported, the recommencement of mining at Šturec is an important milestone in the development of the project."

Australian Strategic Materials signs US$600 million LoI

Rowena Smith, CEO and managing director of Australian Strategic Materials Ltd (ASX:ASM, OTC:ASMMF), joins Jonathan Jackson in the Proactive studio to discuss the company’ s Dubbo Project, in Central West New South Wales. This project aims to extract and process critical minerals and rare earth...

8 hours, 48 minutes ago