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Victory West Moly secures China funding for Malala Molybdenum Project

Fri, 03 Sep 2010 06:51:00 +1000

Victory West Moly (ASX: VWM, FSE: R1E) has signed a binding Memorandum of Understanding (MOU) with China Guangshou Group Corp (CGGC) that, subject to due diligence, is to acquire a 65% interest in the Malala Molybdenum Project.

CGGC is to provide sole funding for 100% of all expenditure required to take the Project into commercial and sustainable large scale production.

Victory West (through its related entities) is to retain a “free carried” interest of 27.5% in the Project (non contributing to production funding).

CGGC are experienced Molybdenum miners with Molybdenum operations in China and North Korea.

The Malala Molybdenum Project is comprised of 5 strategic exploration concession that are highly prospective for Molybdenum located in the Toli-Toli Regency at the northern tip of the island of Sulawesi in Indonesia covering a total area of 23,747Ha.

Robert Hyndes, VWM's CEO, said “over the last 6 months, we have been in active discussions with potential partners that have the financial strength, mining experience, and international standing to enable VWM to extract full value from the Malala Molybdenum Project."

"VWM is delighted to have attracted such a strong partner as CGGC who are not only experienced Molybdenum miners but have the global reach and financial capability to exploit the Project to its full potential and develop the resource into a world-class project."

An aggressive timetable to production is to be undertaken with key milestones including an initial exploration program of a minimum of 10,000 metres to be undertaken, and reviewed by a geological consulting group of international standard.

The company plans the definition of a 43-101 JORC resource that is capable of commercial production. Production is scheduled to start within 24 months from high grade mineralization identified during exploration.

Production is to scale up to a minimum sustainable production target of 400,000 tonnes per month by 2016.

Victory West Moly has also successfully completed a A$1.2m placement to sophisticated investors and entered into a binding term sheet to acquire the remaining 25% in Victory West Pty Ltd.

Under the proposed agreement, Victory West and the company's local BUMD (Regency owned enterprise) partner are to be "free carried" to large scale production.

As a result, Victory West and the BUMD will hold a direct or indirect interest of 27.5% and 5% respectively in the Malala Molybdenum Project. A further 2.5% interest will be acquired by local Chinese interests.

VWM and CGGC agree to work together to determine the most efficient structure to hold their respective project interests (direct or indirect).

The Parties have agreed to a 25 day completion period under the MOU, during which time the Parties will finalise legal and tax due diligence and enter into a Memorandum of Agreement (MOA) that will set out the detailed terms of the proposed transaction.

Upon execution of the MOA, CGGC is to make a payment of US$500,000, and an additional payment of US$500,000 is payable within 70 days from the signing of the initial MOU.

In summary the key MOU milestones are:

- An initial exploration program of 10,000 metres (minimum) to be undertaken and reviewed by a geological consulting group of international standard.
- Definition of a suitable 43-101 JORC resource that is capable of commercial production.
- Delivery of early production opportunities from high grade mineralization identified during exploration within 24 months.
- Development and construction of the Project for commercial production including mine development, processing plant and associated infrastructure.
- Minimum sustainable production target of 400,000 tonnes per month by 2016.

In the event that CGGC does not meet the agreed milestones within the agreed timeframes, the CGGC interest will be transferred back to the company.

The initial focus will be on identifying, defining and exploiting early production opportunities from high grade mineralization identified through early targeted exploration (small scale production).

The parties agree that any profits generated from small scale production activities are to be reinvested to develop larger scale production mining projects with a minimum sustainable production target of 5 million tonnes per annum processing.

The project transaction is subject to specified conditions including Australian and Chinese regulatory approvals, due diligence and VWM shareholder approval.

VWM has also entered into a binding term sheet to acquire the remaining 25% interest in Victory West Pty Ltd (VW P/L). This acquisition will take VWM‟s interest in the Malala Molybdenum project from 71.25% to 95% (prior to the proposed CGGC transaction).

The benefits of the acquisition of the remaining 25% of VW P/L are clear as it allows VWM to maximise its MOU / MOA with CGGC.

The purchase consideration to be paid by VWM for the remaining 25% interest in VW P/L consists of the following:

- 25 million ordinary fully paid shares in VWM on completion of the transaction;
- 10 million performance shares convertible to fully paid ordinary shares (on a 1 for 1 basis) upon completion of a 10,000 metre drilling exploration program on the Project; and
- $250,000 to be converted, at the election of VWM, to shares at VWM‟s next capital raising.

The transaction is subject to a number of key conditions, including VWM shareholder approval, execution of a final share sale agreement and all necessary regulatory approvals, including any approvals required under the ASX Listing Rules.

Northern Uranium to raise A$6.6m for Gardiner Tanami Uranium Project

Fri, 03 Sep 2010 06:23:00 +1000

Northern Uranium (ASX: NTU) has announced a renounceable rights issue offering two new shares for every five shares held at a price of 16 cents per share to raise approximately $6.6 million before costs to drive its ongoing uranium and rare earth exploration effort.

The funds raised will be used to fund exploration of the company’s 100%-owned Gardiner-Tanami Project, Gardner Range JV and to provide additional working capital. Drilling is scheduled to commence in early October 2010.

The company also plans to follow up the discoveries of high value heavy rare earths mineralisation at the Browns Range project and commence exploration at the recently acquired John Galt heavy rare earths project.

The rights issue is fully underwritten by Patersons Securities Limited. Northern Uranium will apply for the quotation of new shares on the ASX.

George Bauk, managing director, said “the Board welcomed the renewed market recognition and support for the company and its projects."

"The Board has noted increased interest in the company’s rare earths interests, following the announcement of the execution of a Letter of Intent with Jiangsu Eastern China Non-Ferrous Metals Investment Holding Co., Ltd, an affiliate of East China Exploration & Development Bureau (ECE) on 9 August 2010," he added.

This interest has arisen against the backdrop of firming global prices for rare earths elements and a tightening of export quotas for rare earths by China, which dominates supply.

Having regard to these and other relevant circumstances, the company has formed the view that the rights issue represents a superior alternative for shareholders to the transaction under the letter of intent.

Northern Uranium has notified ECE that it is not prepared to recommend that transaction to shareholders, in its current form. The company intends to continue discussions with ECE in relation to the potential for a revised proposal.

Bauk said the underwritten rights issue would provide the company with the capital needed to drive its exploration programs, and allow it to pursue other development opportunities.

“This rights issue provides an opportunity for shareholders to expand their interest in the company, and to share in what we believe is exciting exploration upside in both our uranium and rare earth prospects,” Bauk said.

“We have a fully funded uranium drilling program in place which we are expecting to commence within the next month, and on completion of the rights issue, we will be in a strong position to pursue further exploration and development opportunities,” he said.

Capital Mining in trading halt for capital raising

Fri, 03 Sep 2010 05:59:00 +1000

Capital Mining (ASX: ) has requested a trading halt pending release of an announcement about a capital raising transaction.

The halt will last until an announcement is made or commencement of trading on Tuesday 7th September 2010.

In May Capital Mining reported that encouraging gold values were recorded in core samples from the first of its diamond drill holes at its Cowarra Gold Project area near Bredbo, New South Wales.

Australian Bauxite boosts bauxite Resource by 64% to 36Mt at Inverell

Fri, 03 Sep 2010 05:33:00 +1000

Sydney-based exploration company Australian Bauxite (ASX: ABZ) has increased the Inferred and Indicated Resources of its bauxite deposit A-B by 64% to 36 million tonnes of gibbsite-rich bauxite in tenement EL 6997 at Inverell in northern New South Wales.

This resource update is based on 78 new holes drilled into A-B deposit in May-June 2010 and the 118 holes drilled in 2009 - a total of 196 holes with 2,748 metres drilled and sampled.

Deposit A-B is only one of 4 major bauxite areas identified to date on EL 6997 and the area drilled for resources to date represents less than 15% of the bauxite areas identified. At least 50% of the large EL 6997 tenement is yet to be explored for bauxite.

The gibbsitic bauxite resource upgrades to premium grades at high yields with simple screening and large parts of the resource are Direct-Shipping Grade (DSO) requiring no processing.

Parts of the deposit have been confirmed as high grade, Direct Shipping Grade (DSO bauxite) up to 9.4 metresthick and averaging 6 metres thick. The A-B deposit is a relatively consistent, thick, high quality bauxite deposit averaging 5.6 metres in bauxite thickness and approximately 1 metre of overburden.

Ian Levy, CEO, said “the Inverell deposit is proving to be the predictable, thick, high quality bauxite that we hoped it would be. In mid 2010, we drilled 78 additional holes into the first resource area that had been drilled by 118 holes in 2009."

"This 66% increase in the number of resource drillholes has expanded resources by 64% whilst also increasing the proportion of Indicated Resources 67% of the deposit – a simultaneous increase in both tonnage and confidence in the deposit.”

“Drilling in 2011 will continue expanding the drill tested area of deposit A-B and we will commence resource drilling of the other 3 major deposits that are known on EL 6997."

"There were also some new discoveries of bauxite encountered in the additional 84 exploratory holes drilled in mid 2010 that warrant follow-up drilling. We also hope to commence resource estimation drilling in the nearby Pindaroi bauxite deposits discovered in the 18 firstpass exploratory drillholes completed in mid 2010.”

ABx has 29 bauxite exploration tenements in eastern Australia covering 7,000 sq kms and drilled a further 84 holes in May-June 2010 as first pass testing of the 3 other known bauxite deposits on EL 6997 which now warrant resource drilling.

ABx also drilled 18 holes in its nearby Pindaroi tenement, encountering thick bauxite in places that also warrant future resource drilling.

First-pass testing of several additional deposits has identified new areas warranting resource infill drilling anf the company has a Resource target between 200 and 300 million tonnes of bauxite.

Drilling is continuing in southern NSW near Goulburn with a high success rate. At ABx’s northernmost bauxite deposit at Binjour in central QLD, encouraging thicknesses of a concealed bauxite layer up to 15 metres thick were encountered and two-stages of drilling were completed in July.

A thick bauxite layer has been discovered at Binjour with early assays indicating high qualities.

A new deposit averaging 3 to 5 metres thick has been discovered near Haden, 40km north of Toowoomba, southeastern QLD but laboratory results are still awaited.

The drilling rig and crews have moved to the Goulburn area, southern NSW where application of improved geological understanding of these bauxite occurrences has led to a significant increase in the frequency of bauxite intercepts.

Good thicknesses of bauxite up to 7 metres thick are being intersected in most drillholes. The consistency and extent of the bauxite is impressive but laboratory results are still awaited.

The drill rig is being relocated to commence drill testing of the large bauxite target areas discovered at Trundle in mid-west NSW this week.

The plan is to complete 1,000 drillholes during 2010 and then increasethe rate of exploration further so as to complete 1,400 holes during calendar year 2011.

The company's bauxite deposits are favourably located for direct shipping of bauxite to both local and export customers.

The ABx discoveries of bauxite in Tasmania are yet to be evaluated by drilling but bauxite is confirmed to extend over relatively large areas.

Extract Resources CEO predicts higher uranium price

Fri, 03 Sep 2010 05:21:00 +1000

by Lawrence Williams, Mineweb.com

As Extract Resources (ASX: EXT) progresses the big Rossing South (Husab) project in Namibia the prospect is for rising uranium prices ahead.

In a presentation to the Africa Downunder conference in Perth, Extract Resources CEO, Jonathan Leslie was predicting higher uranium prices as burgeoning demand and shortage of supply would see it moving up from its current trading range.

Given the company is exploring, and developing, what is already estimated to be the world's fifth largest uranium resource at Rossing South in Namibia - and it is still growing - a degree of price optimism doesn't go amiss, but Leslie's views are echoed by uranium analysts around the world.

The latest resource estimate from Extract of 367 million pounds of contained U3O8 includes 110 million pounds of inferred material from Rossing South Zones 3 and 4 for the first time. Zones 3 and 4 are continuations along strike from Zones 1 and 2. It also showed a major transfer of resource in Zones 1 and 2 from the Inferred category to the better Indicated category as infill drilling has enabled this to be recalculated. Now the Indicated resource is put at 257 million pounds of U3O8, a tenfold increase from this category as last reported a year earlier.

Indeed on current plans Rossing South (which will be known as the Husab mine) would be the world's second largest uranium producer and would be coming on stream in 2014 and while the mine would be low cost and should be able to operate profitably at current prices in the $40+ range, a boost to say $70/lb - which many feel is on the cards - would make Extract a highly profitable operator. Anticipated output from Husab would be some 15 million lb/y U3O8 concentrate (yellowcake).

Extract - and London-based Kalahari Resources which owns just over 41% of Extract - have been the subject of major interest in the markets. As we reported here last month, the likelihood is that they will be bought out at some stage by a major mining group - Rio Tinto has a significant stake in both Kalahari and Extract (12.5% and 14.7% respectively) - but there are a number of other significant minority holdings in both companies and there has been much jockeying for positionin these holdings over the past couple of years as the significance of the deposit being exposed becomes more apparent.

A Japanese trading house, Itochu, has built/is building, an important stake in both companies - it holds 14.9% of Kalahari and is buying 10.1% of Extract through wholly-owned Australian subsidiary Nippon Uranium Resources - and one assumes Rossing South - or Husab - is on China's radar too given that country's huge nuclear power expansion plans.

Leslie said "The scoping studies to date suggest low cash costs and attractive economics for Husab with the definitive feasibility study due to commence in the forthcoming December quarter.

"We anticipate at this stage that project development will continue through to the end of 2013 with commissioning and first production underway over 2014-2015."

Mr Leslie said Rossing South's path to maiden output would benefit from the deposit's high grades and conventional, low risk open pit mine development, with testwork to date generating good recoveries from conventional agitated acid leach operations.

Internal studies by Extract in March this year suggested a production throughput of 40,000 tonnes per day at a head grade of 487 parts per million and production costs of around US$23.60 per pound.

The Husab development has an estimated capital cost of US$704 million and an estimated mine life of 20 plus years.

Indonesia edges closer toward uranium mining and nuclear power

Fri, 03 Sep 2010 05:15:00 +1000

An official of Indonesia's National Nuclear Energy Agency (Batan) say the country has a uranium reserve of at least 53,000 tons which could serve as the foundation for building nuclear power plants in the country.

Official state news agency Antara News reported that uranium supplies in the West Kalimantan alone could provide power for a single 1,000 MW nuclear power plant for up to 145 years.

Dr. Djarot S. Wisnubroto, deputy for development of cycle technology of nuclear substance and engineering at the National Nuclear Energy Agency, estimated 29,000 tons of uranium is located in the Province of West Kalimantan and 24,000 tons in Bangka Belitung Province.

He suggested that Papua Island may also have a "very large uranium reserve. But it still needs some research. "

However, Djarot said Indonesia may not be mining its own uranium in the near future "because under the existing conditions, the price of uranium is quite low. "

"It would be more efficient for us to buy it from other countries," he advised. "The uranium reserve could be used for the future."

Djarot noted that Indonesia has already been processing radioactive waste material from industries and hospitals and the Research Nuclear Reactor in Serpong. The waste from the reactor in Serpong is returned to its country of origin.

He suggested that the permanent disposal of nuclear waste in Indonesia needs to be earthquake-free with waste trapping locations so it would not escape into the environment or seep into clay.

Batan said a University of Indonesia survey conducted during May and June of this year found that 58% of the 3,000 people polled support the construction of a nuclear power plant in the country. The highest level of support for nuclear power came from NGOs at 76%, members of Parliament at 74% and government officials, 70.5%.

Three sites are now being considered for the nation's first nuclear plant: Muria in central Java, Banten in west Java, and Bangka Island located off southern Sumatra.

Batan chief Hudi Hastowo said the government should take the survey seriously and no longer delay its plan to construct Indonesia's first nuclear power plant.

Baobab Resources identifies distinct ore domain at Tete’s South Zone

Thu, 02 Sep 2010 18:55:00 +1000

Baobab Resources’ (LON:BAO) ongoing step-out drilling at the South Zone of the Tete project has intersected substantial widths of titanium and iron bearing rock (magnetite-ilmenite) in seven of the eight RC drill holes completed to date.

The company also released results from the first 3 diamond drill holes, which encountered multiple intercepts with significant mineralisation - up to 61% iron (Fe), 0.63% vanadium and mass recovery reaching 34.7%.

Ben James, Baobab MD, said the results characterise a distinct, higher mass recovery, ore domain which is similar to the domain modelled in the Chitongue Grande resource - the Tete project’s most advanced prospect with a 47.7 million tonne inferred resource.

At the Tete project’s South Zone, Baobab has been conducting a phased exploration programme, which began with 6 diamond drill holes earlier this year. The company is currently following up the diamond drill holes with a reverse circulation (RC) drilling programme.

The diamond drilling results from the South Zone show that each of the three holes encountered multiple intercepts with significant mineralisation.

Drill hole ‘TDH0019’ cut five significant intercepts for a total of 98.5 metres, including 65.5 metres grading 59.48% iron (Fe), 0.61% vanadium oxide (V2O5). The ‘TDH0019’ lab results also showed 34.7% mass recovery from 46m.

Baobab encountered seven significant intercepts in ‘TDH0045’, totalling 192 metres and including: 51 metres grading 60.5% iron (Fe), and 0.63% vanadium oxide (V2O5). ‘TDH0045’ had 33.0% mass recovery from 77.5 metres.

In ‘TDH0047’ there were three significant intercepts for a total of 87.5 metres, including 43.5 metres at 58.9% iron (Fe) and 0.59% vanadium oxide (V2O5). This hole had 31.3% mass recovery from 95 metres.

In light of the results Baobab has commissioned a detailed metallurgical study to determine how to optimise the mineral processing of the domains.

“We look forward to working with Coffey Mining to construct mineral processing flow sheets that will not only optimise the potential of these domains, but also take into consideration the project's unique and strategic access to infrastructure and complementary resources."

The Tete project covers 632km2 in Mozambique. The project encompasses two areas of magnetite-ilmenite mineralisation, known as the Massamba Group trend in the North and the Singore area to the south.

The infrastructure in the surrounding area is a key feature for the Tete project. Baobab highlights that the project is ‘strategically located’, due to its proximity to the Zambezi river and two neighbouring ‘mega-coal’ operations (run by Vale (NYSE:VALE) and Riversdale (ASX:RIV).

Baobab is primarily focusing on the Massamba Group, which is made up of five distinct prospects along a 8km trend. The five prospects are the Chitongue Grande, Pequeno, Caangua, Chimbala and South Zone.

At the South Zone a total of 35 RC drill holes have been planned, for 7,000m. The first eight holes have totalled 869m. Once complete, Baobab will combine both the RC and the diamond drilling results to estimate a global resource for the South Zone.

Baobab said it expects to receive results from the remaining three diamond drill holes and the first five RC drill holes in early October.

The central portion of the Massamba Group is known as the Chimbala prospect. Along with the South Zone, Chimbala has been one of the main priorities for the 2010 drilling programme. Earlier this year, Baobab completed a 25-hole campaign.

In July and August, the company reported the results from Chimbala.

The diamond drilling tested magnetic targets over an area of 3km2, the company said it intersected significant widths of magnetite-ilmenite mineralisation, with grades reaching up to 65.9% iron (Fe) and 0.72% vanadium.

Prosperity Minerals in 1.35m share on-market buy back

Thu, 02 Sep 2010 18:51:00 +1000

Prosperity Minerals (LON:PMHL) has made another significant transaction as part of its ongoing share buy-back programme.

Yesterday, the company bought 1.35 million shares on-market for 145.5p per share.

Back in July, Prosperity kicked-off its buy-back scheme, with a series of on-market transactions worth just over £1m. On Tuesday July 20th, the company bought 171,000 shares at 150p each, and then on the 21st it bought a further 500,000 shares at 160p.

Following its significant £300m asset sale earlier this year, the company pledged to conduct a share buy-back programme, to return value to shareholders.

In July, Daniel Stewart & Co described the buy-backs as “another encouraging development”.

In April the company sold most of its cement business to TCC International Limited for HK$3.8bn (approximately £300m).

Since the cement asset sale, Prosperity has re-focused its business on iron ore trading assets, and it has also moved into the Chinese real estate development sector.

The greater emphasis on iron ore, was reflected in the company’s latest result which showed an 80% year-on-year increase in the total tonnage shipped to 7.9m tonnes (FY09: 4.4m tonnes).

Prosperity Minerals recently agreed a significant new iron ore master off-take agreement with Grace Wise Pte Ltd, to purchase ore from Malaysia. The three-year off-take deal sees maximum trading volumes capped at 1.5m metric tonnes in FY11, 2.5m metric tonnes in FY12 and 4m metric tonnes in FY13.

With its first steps into the Chinese real estate development sector, Prosperity entered in June into agreements for two separate property investments - in the Fujian Province in south-east China and in Guangzhou City.

According to Prosperity, the PRC’s long term urbanization plan brings increased demand for high-quality housing in China’s cities. Furthermore, the PRC real estate market has recently entered a down-cycle, offering an opportune time to enter the PRC real estate market.

AmerAlia secures 100% ownership of Natural Soda Holdings from private equity investor Sentient

Thu, 02 Sep 2010 16:17:00 +1000

Natural resource company AmerAlia (AALA.OB) has announced that it has acquired the remaining 82% stake in baking soda producer Natural Soda Holdings (NSHI) that it did not already own, from private equity group Sentient, also AmerAlia`s largest shareholder.

In exchange for the stake, AmerAlia has issued approximately 286.1 million shares of its common stock to the vendor.

Natural Soda Holdings, through its wholly owned subsidiary Natural Soda Inc. (NSI), produces and sells natural sodium bicarbonate, commonly called baking soda, for use in a wide variety of products and activities.

It operates from Rifle, Colorado where it owns 9,543 acres of Federal government sodium leases, and is a supplier to the animal feed, human food, pharmaceutical, personal products, and industrial markets. NSI also has water assets in the Colorado River System, which are estimated at a maximum entitlement of 108,812 acre feet (over 35 billion gallons) of water annually under certain conditions for agricultural, industrial and municipal purposes.

NSI produces and sells more than 100,000 tons of baking soda each year, making AmerAlia one of the larger producers of sodium bicarbonate in North America.

“The acquisition is a milestone for the company. It fulfills our longstanding ambition to own, largely debt free, all of the water assets and the profitable sodium bicarbonate operations located in the Piceance Creek Basin in North West Colorado, held by NSHI and NSI,” said AmerAlia’s Chairman Bill Gunn.

The deal is expected to position AmerAlia with strong revenue opportunities for the new financial year, it said.
“We are considering several possible uses for our extensive water rights in addition to further developing our profitable and growing sodium bicarbonate business,” Gunn added.

AmerAlia has also said that it has identified large deposits of oil shale contained within NSI`s sodium leases, and it is now investigating certain proprietary technologies to recover oil from the shale, it said. It has even applied for a research development and demonstration lease covering these oil shale deposits.

Shell Frontier Oil & Gas Co. already has three research, development, and demonstration leases adjacent to NSI’s sodium leases, on which it is trying to prove up the commercial feasibility of its oil shale extraction technology.

NSI recovers sodium bicarbonate using an environmentally friendly process known as solution mining, which involves pumping hot water approximately 1900 feet underground to dissolve the underlying nahcolite beds and return the saturated liquor to the surface. By reducing the temperature of the liquor, sodium bicarbonate is crystallized. Excess water is then removed by high speed centrifuging (spin drying).

The resultant damp crystal mass is further dried, screened and packed in accordance with industry designated specifications, while maintaining stringent quality accreditation standards.

In addition to its many uses in various products, research has been done for more than a decade about sodium bicarbonate`s use as a potential treatment for cancer; it has also been proven that it dramatically slows the progress of chronic kidney disease.

NSHI`s profits for the six months ending December 31 2009 was $967,581 compared with a loss of $6.5 million in the comparable period a year earlier.

Stanley Gibbons acquires business and assets of stamp dealer Nigel Haworth

Thu, 02 Sep 2010 15:23:00 +1000

Retailer of stamps and other collectibles Stanley Gibbons (LON:SGI) has bought the business and certain assets of specialist stamp dealer Nigel Haworth, formerly M & N Haworth, for £0.3 million.

The business specialises in modern issues of the British Commonwealth, including varieties and other items that are difficult for collectors to source.

Nigel Haworth will be acting as a consultant to Stanley Gibbons to assist in the sourcing of such material in future.

Stanley Gibbons will pay £0.15 million on completion and the balance in April 2011. The deal will be financed out of the group’s cash balances with an expected payback within one year.

The group said that the acquisition gave it the most extensive range of British Commonwealth stamps available.

“Primarily, his is an investment in our brand and the quality and range of our stockholding.

“The acquisition will provide benefits for many years to come through increased sales and new customer recruitment and, in due course, will significantly enhance the range offered on our website and through the traditional channels of retail and mail order,” said Chief Executive of Stanley Gibbons Michael Hall.

Stanley Gibbons reported a strong set of interim results last month.

Sales in the first six months of the year jumped 24% to £11.9m, pre-tax profits rose 10% to £1.6m and earnings (EBITDA) grew 12% to £1.7m. Also during the period the company entered the Chinese collectables market and secured new orders worth £1m from collectors there, to be realised in the current period.

Included in the sales for the first half were £0.4m from the sale of one of the rarest British stamps - the '6d IR official'.

The company then said that it planned to acquire a number of large stamp collections, which would “provide the scale and quality of stockholding” to satisfy demand for the rest of the year.

Synchronica highlights strong support for iseemedia deal

Thu, 02 Sep 2010 15:22:00 +1000

Synchronica (LON:SYNC) believes that the proposed iseemedia (TSX-V: IEE) acquisition will position the company as a market leader for next-generation mobile messaging.

On completion, Synchronica will have 44 of the world's mobile operators as customers and a total addressable market of 853 million subscribers.

The company told investors that it has received strong support for the proposed iseemedia takeover, with 66% of the offer now tendered. The company acknowledged that it has exceeded the threshold condition, which required more than 51% of the iseemedia shares to be tendered.

Alongside the acquisition, Synchronica plans to raise C$7.5m through a placing.

"We are encouraged by the higher than expected support for the acquisition from new and existing investors in both markets and the strong support of iseemedia shareholders for our take-over bid,” Synchronica Chief Executive Carsten Brinkschulte said.

“iseemedia perfectly complements our existing competencies, specifically the patent-pending document transcoding technology, and the additional contracts with large mobile operators in India, which will accelerate our traction in the second largest mobile market worldwide."

He added: “This acquisition is a key step towards our goal of achieving a market-leading position in the fast-growing emerging markets.”

Synchronica has extended the takeover schedule, and iseemedia shareholders now have until 5:00pm (in Toronto) on September 14th 2010 to accept the deal. Additionally, Synchronica expects to have a listing on the Toronto Stock Exchange by the 14th September, and the placing will be closed concurrently.

Although the sale of iseemedia’s RealBiz subsidiary is no longer a condition to the takeover - after the companies amend the original offer last month - a binding letter of intent has now been signed for the disposal.

Synchronica highlighted that the sale is likely to be completed before the takeover completes.

The two-part equity financing will carried in both the UK and Canada, led by Northern Securities in Toronto and finnCap in London. Through the placing, the companies will issue units consisting of one share and one three year warrant.

Northern Financial Corporation (TSX:NFC), Northern Securities parent company, has committed to at least $3m, as long as Synchronica acquires at least 51% of iseemedia’s shares - it has already tendered more than this.

In Canada, the iseemedia Units have been priced at CAD $0.09, and the exercise price for the warrants will be set at C$0.12. The Synchronica units in the UK are being priced on equivalent terms, with units being priced at 1.45p and the warrants will have a 1.93p exercise price.

The pricing assumes the exchange rate to be GBP 0.64803 = CAD $1.

Yesterday, Synchronica confirmed that its shareholders approved the issue of the new equity required to complete both the acquisition and the associated fundraising, at Tuesday’s general meeting. Consequently, a 1 for 15 share consolidation has now taken place.

Fusion IP partner Absynth Biologics wins licensing and collaboration agreement from MorphoSys

Thu, 02 Sep 2010 15:21:00 +1000

University IP commercialisation company Fusion IP (LON:FIP) has said that its Sheffield-based biotechnology company Absynth Biologics has signed a licensing and collaboration agreement with MorphoSys AG.

The agreement is a part of MorphoSys’ new proprietary development program against novel infectious disease targets.

Collaboration with Absynth Biologics will provide MorphoSys with access to novel target molecules associated with Staphylococcus aureus infections including MRSA (methicillin-resistant Staphylococcus aureus).

MorphoSys, which will be solely responsible for the development and partnering of the resulting compounds, will generate antibodies using its proprietary HuCAL PLATINUM antibody library which Absynth will test in relevant disease models.

Absynth will receive an upfront payment with further milestone payments and royalties.

According to the Center for Disease Control and Prevention, 1.7 million hospital-acquired or nosocomial infections occur annually in the US alone, resulting in 99,000 deaths each year.

“This collaboration brings together Absynth's novel proprietary targets and expertise in S. aureus including MRSA and MorphoSys's expertise in the generation of antibody drugs. We see these new targets as a very promising basis of antibody therapy for an increasingly serious medical problem," said Chief Executive of MorphoSys AG Simon Moroney.

“The targets identified by Absynth represent a unique opportunity to generate value rather quickly and create out-licensing opportunities much earlier than in the areas of cancer and inflammation."

Absynth has filed patent applications on all targets involved in the collaboration.

The financial terms of the deal were not disclosed.

Absynth is focused on the discovery and development of products for the prevention and treatment of bacterial infections. The company was founded in 2006 and based on discoveries from the University of Sheffield laboratories.

Fusion IP plc, previously called Biofusion plc, was established in 2002 to commercialise university-generated intellectual property. Fusion IP has signed long term agreements with the University of Sheffield and Cardiff University, giving a combined R&D spend attributable to Fusion IP of approximately £185 million a year.

Leni Gas and Oil raises further £0.8m

Thu, 02 Sep 2010 15:19:00 +1000

Leni Gas and Oil (LON:LGO)(‘LGO’) has raised an additional £800,000, with the issue of 40 million new shares to institutional investors at 2 pence per share.

Back in July, the company raised £1.5m to fast-track its Spanish assets.

The funds raised in July are already being put to use as the Hontomin development programme kicked into gear last month. On the 25th August, LGO spudded the hole for the Hontomin extended well test in northern Spain.

In a recent analysis note, Edison Investment Research highlighted that the Hontomin-2 extended well test marks the start of an extensive development plan to evaluate the untapped oil and gas resources at Ayoluengo and in the surrounding concessions.

Edison believes that LGO has the potential to transform itself into a mid-tier E&P player. The company research-house said it considers LGO to be a ‘development and rehabilitation’ specialist and that it has a ‘large resource base’ given its junior status.

The objective of the Hontomin programme is to appraise the long term production potential of the Hontomin-2 well. The programme is expected to take 4 weeks to drill-out and re-complete prior to monitoring production performance over the coming months.

Electric wireline logging and perforation of the existing hydrocarbon intervals and other potential undepleted zones is scheduled for September/October to assess the full production potential of the structure.

All of the test production from Hontomin will be transported to the central production facilities at the Ayoluengo operations base for processing and oil sales.

The Hontomin prospect is a proven Lower Jurassic Lias Calcarenite hydrocarbon formation discovered by Chevron (NYSE:CVX) in the 1960s and initially tested at an initial rate of 700 bopd (barrels of oil per day).

The new shares are expected to begin trading on AIM on the 24th September 2010.

Rambler to receive US$2m from Sandstorm off-take

Thu, 02 Sep 2010 15:17:00 +1000

Rambler Metals and Mining (LON:RMM; CVE:RAB) is set to receive a US$2m cash boost, after Sandstorm Resources (CVE:SSL) accepted the company’s feasibility study for the Ming Mine.

The payment represents the second installment under the gold off-take deal, which was arranged in March 2010.

Sandstorm paid an initial US$5m in March, and the third payment of US$13,000,000 will be made once Rambler has secured the key permits for the Ming Mine's construction.

It is currently anticipated that the permitting will be completed during the second half of 2010.

In return for the upfront payments, Sandstorm will be entitled to 25% of the Ming mine’s first 175,000 ounces of payable gold, and 12% of all payable gold thereafter. Initially the agreement will last for 40 years and Sandstorm has the right to renew the deal for successive 10 year periods thereafter.

The Ming mine is located on Newfoundland and Labrador's Baie Verte Peninsula. Ming is Rambler’s primary focus and it was initially a copper play. However, an extensive exploration programme conducted by Rambler over recent years has increasingly identified elevated gold grades.

Last week, upon completion of the feasibility study, Rambler told investors that it had taken “another dramatic step” in transforming itself into a gold producer.

The final feasibility study of the project confirmed an initial 6-year mine life at 630 tonnes per day with an average annual production of 7.7 million lbs of copper, 11,600 ounces of gold and 42,600 ounces of silver. Production is targeted in Q2 2011.

Total production for the 6 year mine life is expected to be at 46.24 Mlbs (million pounds) of copper, 69,468 ounces of gold and 255,388 ounces of silver.

The total revenue is projected to be US$210 million with unit revenue estimated to be US$167.52 per tonne. Initial capital costs were estimated at US$25.5 million, while sustaining capital costs have been placed at US$27.9 million during the life of the mine.

Other conclusions of the study included a pre-tax operating cash flow of US$71 million, an NPV (net present value) 6% of US$14.3 million, payback time of 1.5 years and an IRR (internal rate of return) of 23.7%.

Nex Metals Explorations boosts gold Resource by 33,000 ounces at Kookynie

Thu, 02 Sep 2010 13:41:00 +1000

Nex Metals Explorations (ASX: NME) has reported a significant 33,000 gold ounce increase in the Mineral Resource Estimates for its fully-owned Kookynie Gold Project in Western Australia.

The estimates were completed by APEX Geoscience Ltd (independent geological consultants). APEX have calculated the resources at the previously unreported “Leipold Deposit” West of Kookynie which forms part of the proposed Phase 3 plan.

The result is a 33,000 gold ounce increase in inventory to the previous mineral resource estimate for a combined 22,180,000 tonne for 749,000 ounces with the mineral resource estimates largely shallower than 110 vertical metres from surface. Nex aims to achieve a gold inventory milestone of 1,000,000 ounces.

Ken Allen, managing director, said the company remains focussed on Phase 1 deposits with the imminent commencement of construction of the Dump Leach pad and facilities. However, Nex continues to assess which project areas can be fast tracked into production.

Pricing has been sought to re-commission the existing Orient Well CIP/CIL plant for a 300,000 tonne per annum capacity which are coming in the lower range of expectation.

The concept of the lower capacity mill is to enable Nex to then maintain a longer term outlook of the project area by weathering the traditional fluctuations in gold price through processing a higher grade feed stock which is expected from phase 3 operations (with the combination of heap leaching the lower grade bulk resources).

The Leipold deposit has a strike length of 400 metres and is drilled with close spaced Reverse Circulation (RC) drilling on an approximate 20X20m grid pattern to a depth of approximately 70 vertical metres.

The deposit displays excellent continuity along strike and down dip and dips at approximately 50 degrees to the east.

The gold mineralisation appears to have a 0 to 10m near surface depletion. The mineralisation has not been adequately drill tested along strike or closed off down dip.

Range Resources starts production and sales from Russell Bevly well

Thu, 02 Sep 2010 13:17:00 +1000

Range Resources (ASX: RRS; AIM: RRL) has commenced production and sales from its Russell Bevly Unit #1, the second well at the North Chapman Ranch Joint Venture’s multi-well program in Texas, less than seven weeks after production casing was set in the well and the drilling rig released.

In a statement the company said Russell Bevly was turned to sales at approximately 1,000 Mcf of natural gas and 90 bbl of oil per day with approximately 8,000 psi flowing tubing pressure on a 6/64" choke from just one of four identified pay zones.

The first zone placed in production represents just 11 ft. of perforated Howell Hight formation within total net pay thickness of approximately 130 feet.

Peter Landau, executive director, said Range anticipates that the well will flow naturally for a number of months before it is shut in and a completion rig moved into place, similar to its first well (Smith #1).

Once the completion rig is in place, the well will be fracture stimulated and additional pay zones added to boost rate.

The company said that "hydraulically fracturing the reservoirs creates additional permeability paths from the reservoir to the well bore, increasing production rates from the various pay zones, which in turn accelerates payout while improving reserve recovery and overall economics."

Range will continue to provide further updates on the progress of its portfolio of assets.

Ironbark Zinc significantly extends zinc lead mineralisation at Citronen

Thu, 02 Sep 2010 12:22:00 +1000

Ironbark Zinc (ASX: IBG) has reported that ongoing drilling at the 100% owned Citronen Base Metal Project in Greenland has extended the zinc-lead (Zn-Pb) mineralisation to the south east by a further 1.5km from the Discovery ore body.

Several drill holes were drilled targeting possible extensions of the mineralisation outside the previous resource areas. Three of these holes highlight the significant and world-class open ended nature of the defined mineralisation.

Results include:

- Hole CF10_277 with 16.0m @ 2.9%Zn (3.5%Zn+Pb) from 236.0 including 3m @ 6.0%Zn (6.7%Zn+Pb) and 1m @ 7.0%Zn (7.5%Zn+Pb); and

- Hole CF10_278 with 7.1m@ 2.0%Zn (2.5%Zn+Pb) from 217.0 including 1m@ 6.1%Zn (6.5%Zn+Pb).

The previous estimates of a target resource may be upgraded substantially with the final scale of the extent of the Citronen mineralisation unknown at this time.

Further drilling will be required to define any higher grade mineralisation that typically lies within the broader mineralised envelopes as identified within Citronen.

Additional drill results are currently being assayed and drilling will remain ongoing until the completion of the field season in September.

The feasibility study work is on schedule and budget with substantial ongoing engineering, design and development work. Mine planning has has yet to be conducted on the Beach South, XX Zone or Valley Zone.

Drilling conducted in 2010 is expected to allow mine planning and optimisation work on the Beach South and XX Zone.

Significant drilling results (assays) are pending for drilling in these zones. in 2010 over 17,000m of diamond drilling has been completed.

Ironbark believes that the drilling in 2010 will result in increased confidence levels (JORC Resource categories) and global tonnages in the revised resource estimate due for completion later in 2010.

Citronen currently hosts in excess of 10 billion pounds of zinc (Zn) and lead (Pb).

Canyon Resources to acquire highly prospective African gold projects

Thu, 02 Sep 2010 11:44:00 +1000

Canyon Resources (ASX: CAY) has entered into a binding agreement to acquire control of the Taparko North and Tao Projects in North Eastern Burkina Faso, West Africa, through the purchase of Askia Sarl Pty Ltd.

Subject to due diligence, Canyon will acquire Askia Sarl and the gold projects, through the initial issue of 3.25 million Canyon shares to the vendor (or nominees) of Askia Sarl.

The gold projects are located in the Birimian Greenstone Belts of the West African Craton and are considered highly prospective for the discovery of large gold deposits.

Both projects are located in favourable structural and geological settings with the Taparko North Project situated along the north east striking structural corridor which includes the major gold endowed Markoye Fault.

The Taparko North Project lies in the the same greenstone belt that hosts the 2 million ounce Taparko gold mine and the 1.7 million ounce Inata gold mine. The project is also situated in the Markoye Fault corridor that hosts the Essakane, Taparko and Bombore gold deposits and numerous artisanal gold occurrences.

The Tao Project lies in the greenstone belt which hosts the largest identified gold deposit in Burkina Faso, the 5 million ounce Essakane gold mine. The project is situated on a parallel, north east striking structure that hosts numerous artisanal gold operations.

The vendor and associates of Askia Sarl have worked extensively in Burkina Faso and have previously been involved in the identification and discovery of a significant gold deposit with a current JORC compliant resource of over 1 million ounces.

Canyon has conducted a site visit with representatives of Askia Sarl. Due diligence is expected to be finalised by mid October 2010, after which Canyon plans to immediately commence exploration on the gold projects.

Initial exploration will include a first pass geochemical exploration and RAB drilling program.

Chris Connell, Canyon Resources’ exploration manager said “both the Taparko North and Tao Projects cover highly prospective Birimian greenstones along with major gold endowed structures."

"There is active shallow artisanal mining being conducted by local people on both Projects and we sighted primary quartz hosted gold specimens being mined at several locations."

"The favourable structural and geological settings represent an outstanding opportunity for the discovery of a large ore deposit within the tenements.”

Phil Gallagher, managing director, said "Canyon’s acquisition of the Taparko North and Tao Projects will strengthen its asset portfolio by providing exposure to a region in West Africa that is highly prospective for hosting large gold deposits, while we continue to progress the exploration of our Western Australian gold project.”

To maintain ownership of Askia Sarl and the gold projects, Canyon is required, at its election, to issue further shares in staged payments as follows:

- 3 million shares to be issued by completion of the first field season (30th April 2011) of exploration and results of the exploration being to Canyon’s satisfaction; and
- 2.5 million shares to be issued by completion of the second field season (30th April 2012) of exploration and results of the exploration being to Canyon’s satisfaction.

In addition, subject to the achievement of certain project hurdles, further issues of shares to the vendors (or nominees) of Askia Sarl will be made as follows:

- 5 million shares to be issued subject to the definition of a 500,000 ounce indicated gold resource; and
- 10 million shares to be issued subject to the definition of a 1 million ounce indicated gold resource.

The structure and terms of the consideration are subject to shareholder and ASX approval.

Canyon Resources shares rose 17% to 34 cents in trading today. The company had 3,218,000 cash at the end of the June quarter.

Barra Resources shares rise on more high grade nickel at Mt Thirsty JV

Thu, 02 Sep 2010 11:11:00 +1000

Perth-based Barra Resources (ASX: BAR) and 50% Joint Venture partner Fission Energy (ASX: FIS) have reported that further assays from hole MTRC022 at Mt Thirsty, which recently intersected significant nickel sulphides, have returned 2m @ 3.5% Nickel from 118 to 120m down hole, including 1m @ 4.7% Nickel.

Barra said this intersection is very encouraging as "the mineralisation is interpreted to have been affected by a pegmatite intrusion which has disrupted the footwall contact and has probably removed some of the nickel sulphides, as often occurs at Kambalda."

Hole MTRC022 is now the third hole drilled at Mt Thirsty which has returned high nickel grades. The other significant down hole intercepts include holes MTRC015 and MTRC020 with 6m @ 3.4% and 2m @ 5.9% Ni respectively.

Mt Thirsty is located 20 kilometres north‐northwest of Norseman in the southern goldfields of Western Australia a well endowed nickel terrain.

In May this year RC hole MTRC015 intersected a thick zone of nickel sulphides assaying 3.4% nickel over 6m from a down hole depth of 201 metres, adjacent to the footwall ultramafic contact within an interpreted lava channel embayment.

An initial six hole RC drilling program to follow up this intersection has now been completed. All holes were inclined at 60 degrees towards magnetic west.

The first two holes (MTRC018 & 019) in the follow up program were drilled 25 and 50m respectively to the south of MTRC015 on the same easting and intersected only a weakly mineralised footwall contact at shallower depth, suggesting the channel has closed out in this direction and further potential lies to the north.

MTRC020 was drilled 50m to the north of MTRC015 on the same easting, and intersected nickel sulphide stringers over a 2m interval from 208 to 210m down hole averaging 5.9% nickel.

Gary Berrell, chairman, said further RC drilling is planned later this month to follow up these "extremely encouraging" first pass results and further evaluate the potential of this new nickel sulphide discovery to host a significant nickel deposit.

U3O8 Limited to kick off drilling on Iron Ore targets at Olary Creek

Thu, 02 Sep 2010 10:56:00 +1000

U3O8 Limited (ASX: UTO) will commence reverse circulation drilling of the iron ore targets on its Olary Creek project in South Australia, on 4th September 2010.

Olary Creek is located approximately 70 kilometres from Broken Hill, and situated a short distance south of the Barrier Highway and the Indian Pacific railway line, with easy access to roads and ports.

In February 2010, UTO announced that it had signed an agreement to farm-out the iron ore rights at Olary Creek to a private company.

The private company was to spend $5 million within four years to earn a 75% interest in the iron ore and manganese on the project after which UTO is free carried to a decision to mine.

Stephen Mann , managing director, said UTO has undertaken limited exploration on the banded iron formation at Olary Creek but modelling of the airborne magnetic data indicates up to 8km of strike of the iron units subcrop or outcrop on the project area.

Limited rock chip sampling has returned assay results up to 53% Fe.

A total of five holes are planned in this current drilling programme. One hole is planned into a possible channel iron deposit whilst four other holes are to be drilled into the banded iron formation. U3O8 is managing this phase of the exploration programme.

Stanmore Coal inks initial 99Mt Coking Coal Resource at Mackenzie River

Thu, 02 Sep 2010 10:42:00 +1000

Stanmore Coal (ASX: SMR) has reported that an initial JORC Inferred Resource of 99Mt has been established at its 100% owned Mackenzie River Coking Coal Project (EPC’s 1060, 1062, 1547, 1688, 1671) in the Bowen basin, Queensland.

The 99Mt JORC Inferred Resource has been established down to a 100m depth cut off within the Aquarius seam of the Burngrove Formation. 66Mt of this Inferred Resource occurs at depths shallower than 75m.

In addition an exploration target of 70Mt–80Mt has been established within the Leo seam and Aquarius seams which covers north of the existing Aquarius seam resource area (predominantly north of the Nogoa River) and the Leo seam which lies above the Aquarius seam but has not been cored and sampled at this stage.

The resource has strong coking properties with washed CSN values (F 1.50) from three 100mm core holes averaging 5.0–7.0 and individual plies up to 8.0.

Nick Jorss, managing director, said “this marks an important milestone for Stanmore Coal in establishing resources at the first of our coking coal targets."

"We are very pleased to have 100% ownership of an attractive coking coal project of this quality and magnitude located right on the rail line to the coal ports of Gladstone."

"We will continue further appraisal drilling at the project with the aim of increasing the JORC Resource tonnages and move to undertake a conceptual mining study to firm up mining methods and a clear path to production.”

The Mackenzie River project is ideally located for export as it lies on the rail line to Gladstone between the existing Ensham and Curragh operating mines and adjacent to the Washpool project being developed by Aquila Resources (ASX: AQA), which is also targeting the Burngrove Formation.

The Leo seam is typically 1.0m ‐ 1.5m thick and lies approximately 35 metres above the Aquarius seam. The coal seams strike in a general North South direction over an approximate 25km strike length within the western part of the Mackenzie River project area, and dip towards the west at approximately 2°.

The limit of weathering (or top of sub cropping coal) ranges in depth from 19m to 49m across the resource area. A total of 27 holes are now included in the western area geological model, 14 partially cored drill holes and 13 holes rotary open holes.

The coal sequence within the Aquarius seam comprises 5 main coal plies (A through E) which occur over a maximum total interval of approximately 4 metres. Within this total interval, the coal plies attain a maximum cumulative thickness of 3.4 metres in the southern part of the lease where all plies are present.

Cumulative coal thickness within the Aquarius seam averages 2.2 metres across the entire deposit and is potentially amenable to open cut mining methods.

Three larger diameter (100mm) core holes were completed in the south of the deposit to enable float sink testing and indicative product quality to be determined.

The completed product coal quality analysis in the southern part of the deposit suggests the coal seams may be washed to produce a coking coal product with the CSN results very positive.

Laboratory yields for a 14.8% ash product with an average CSN of 6.0 ranged from 46% to 62% by hole with an average yield of 51%. Further washability testing is planned to determine the optimal product ash level against product yield.

Further investigation is planned into the potential for a 10–12% ash product at economic product yields which would feature higher CSN and energy levels.

Inherent moisture values for the coal plies average 3.2%. Raw total sulphur is in a range of 0.40% to 1.20%.

Drilling and laboratory work is continuing with the aim of expanding the initial JORC Resource within the Aquarius seam and extending it to the Leo seam over the coming months.

Bathurst Resources boosts coal resources by 80% to 10.9 Mt at Deep Creek

Thu, 02 Sep 2010 09:12:00 +1000

Bathurst Resources (ASX: BTU) has reported a significant increase in resources at its Deep Creek project, part of the Denniston sector of the company’s Buller Coal Project in New Zealand.

Following on from the completion of stage two of the company’s exploration programme, which resulted in the initial 42.2 Mt resource announced on the 26th July 2010, Bathurst has now completed a significant drilling programme at its Deep Creek target.

The results of the drilling programme have confirmed an 80% upgrade to the resource from the previously reported 6.0 Mt to 10.9 Mt.

Importantly, the confidence level in the resource has also been increased to 57% Measured, 28% Indicated and 15% Inferred as per the table below (previously the 6.0 Mt were all inferred resources).

Hamish Bohannan, managing director, said “the latest drilling results confirm the excellent potential of Deep Creek to be a near term mine and the Buller Project as a multi-mine operation."

“When added to the results from the Escarpment, mining at Deep Creek should significantly enhance the economics of the Buller Project and the overall returns to Bathurst shareholders and the local community.”

“Bathurst’s objective is to commence production at an annualised rate of 1 Mtpa from December quarter 2011, increasing to 2 Mtpa once other deposits, including Deep Creek, are brought into operation.”

“The next stage of Bathurst’s drilling program aims to build on the solid foundations of Escarpment and Deep Creek by firming up the resources in the Denniston sector and testing the exploration potential within the Buller Project."

“The exploration results also validate the earlier exploration undertaken by both NZ Coal Resources Survey and L&M in the region," Bohannan added.

The completion of resource modelling has enabled pit design to commence which is likely to result in an upgrade of the Deep Creek Resource to Reserve status during September.

Marston International Pty Ltd, who recently completed the Definitive Feasibility Study (DFS) on the Escarpment, are currently preparing an addendum to the DFS to include the Deep Creek area which should significantly add to the initial mine life.

The study is expected to be completed in Q3 2010, after which it will be subject to an independent peer review.

The Company expects the majority of the Deep Creek resource to be hard coking coal with similar high quality properties as that of the Escarpment project.

Navigator Resources' gold production on track at Bronzewing

Thu, 02 Sep 2010 08:35:00 +1000

Perth-based Navigator Resources (ASX: NAV) has updated operations at its Bronzewing and Leonora Gold Projects (BGP & LGP), and the Cummins Range Rare Earth Project, all located in Western Australia.

In addition, it has announced the appointment of Ian Macpherson as Deputy Chairman.

Gold production continues to grow at the Bronzewing Gold Project and the company anticipates to achieve the September 2010 quarter budgeted gold production. Ore tonnes mined are exceeding budget, with grade control defining 10-15% more contained ounces of gold. The company’s cash reserves are rising as gold sales increase.

The Challenger South Pit is being prepared as the third ore source for September. Mill throughput is running at 2.1-2.2Mtpa, with plant recovery exceeding 94%.

NAV has now completed two significant grade control drilling programs in Central Pit and compared to the ore reserve estimate, grade control drilling is typically resulting in 20 to 25% more tonnes of ore; 5 to 10% lower grade; and 10 to 15% more ounces of contained gold.

Based on the above outcomes, NAV said the Central Pit ore mining strategy is focussed on mining and milling the additional ore tonnes, albeit at slightly lower grade, milling the high grade (HG) ore component (+1.0g/t Au) and stockpiling low grade (LG) ore which is surplus to mill capacity.

In addition, the company is continuing initiatives to increase mill throughput. The focus on mill throughput has successfully seen the achievement of sustained annualised tonnage of 2.1-2.2 million tonnes per annum (Mtpa). Surface ore stockpiles are nevertheless growing in line with budget projections.

Although ore mining in Success Pit was delayed as against the original mine plan, the lower ore tonnage mined during July and August was substantially higher grade than the ore mined from Central Pit and when introduced into the mill feed, even as a small proportion of the blend, the grade uplift was noticeable.

Success Pit ore is scheduled to be re-introduced into the mill feed blend in the latter half of September.

Final permitting has been received to enable mining to commence at the Challenger South Pit. Clearing inside the pit perimeter has finished and the first pass of grade control drilling will be completed during the coming week. Challenger South Pit will become the company’s third open pit ore source during September 2010.

The performance of the Bronzewing processing plant continues to exceed expectations. Mill throughput for the past two months is running at approximately 2.1Mtpa, comfortably higher than the budgeted 2.0Mtpa.

The company is continuing to optimise the milling circuit without incurring new capital costs with the objective of further increasing plant throughput.

Similarly, plant recovery has exceeded 94.0% for the past three months, comfortably higher than the budgeted 92.0% recovery.

Processing and administration operating costs are tracking in line with budgeted cost levels.

On 18 August 2010, NAV announced a 25% increase in the Bronzewing Gold Project ore reserves, net of depletion to 30 June 2010. The upgraded ore reserve is 8.157Mt @ 1.8g/t for 480,500 ounces of contained gold.

NAV has prioritised exploration targets at Bronzewing and intends drill testing two highly ranked targets as soon as possible.

An aircore drill program has been planned for the Eagle prospect where an earlier BLEG soil geochemical sampling program obtained values of up to 1,954ppb (1.95g/t) gold and an earlier RAB hole had intersected 9m @ 4.8g/t Au from 78m.

The aircore program will consist of approximately 4,000m of drilling over well defined anomalous zones. A small RC drill program has also been planned to follow up on the earlier RAB intersection.

The program of work (POW) submission to cover both drill programs has been lodged and it is expected that drilling will commence early in the December quarter.

Also, some of the BLEG geochemical anomalies remain open after the first round of soil sampling and work is currently in progress to extend and fully define these anomalies.

Recent in-house preliminary studies have shown that the Woorana prospect is worthy of additional RC drilling to better define the previously intersected mineralisation which has included 4m @ 56.9g/t Au (including 1m @ 215.5 g/t Au) from 24m in an RC hole, and 9m @ 5.52g/t Au from 9m and 6m @ 7.2g/t Au from 12m which are both from aircore holes.

A POW submission for RC drilling will be lodged in the next two weeks.

NAV has now successfully completed the trial mining and processing program at its Leonora Gold Project and produced 7,223oz of gold and $2.12M of positive net cashflow.

A total of 74,200 tonnes of ore was milled at St Barbara Ltd’s (SBM) Leonora processing facility, comprising an estimated 60,200 tonnes of Bruno supergene ore and 14,000 tonnes of Mert 2 hardrock blending ore. Gold produced from ore treatment at SBM’s plant in Leonora was 4,450oz.

Due to the favourable grade performance of the Bruno supergene ore, the company decided to complete mining Bruno Pit.

As a result, a total of 100,000 tonnes of ore was mined from the Bruno open pit. The balance of 39,800 tonnes of Bruno ore was hauled to the Bronzewing Gold Project for treatment.

Sampling of this material on the Bronzewing ROM stockpile supported ore grades seen at SBM’s Leonora plant. Estimated gold recovery from Bruno ore being processed at Bronzewing was 2,773oz.

The Cummins Range rare earth project October 2009 valuation is being revised to reflect higher commodity prices.

NAV’s focus during 2010 has been on establishing itself as a gold producer with its own cashflow being generated from operations.

The company has nevertheless continued to monitor developments in the rare earth metals sector and is aware of recent market price increases for the suite of commodities existing at Cummins Range.

At the same time, NAV has engaged PCF Capital Group to conduct a staged process to determine whether there is demand for an asset level transaction for the Cummins Range project.

On 2 August 2010, the company closed its Share Purchase Plan (SPP), raising $1.6 million by issuing 9,433,412 shares at an issue price of 17 cents per share.

The company has appointed former Company Secretary and current Non Executive Director, Ian Macpherson, as Deputy Chairman to Chairman, Allan Trench.

Northern Star Resources sees increase in life of Paulsens Gold Mine

Thu, 02 Sep 2010 07:28:00 +1000

Northern Star Resources (ASX: NST) has reported that initial drilling at its Paulsens Gold Project in Western Australia has intersected gold 150m below the stage 1 mine plan, pointing to the existence of an additional lode under the known mineralisation.

The intersection of 3.4m @ 1.5g/t Au, includes 0.44m @ 6g/t, points to the existence of a third mineralised lode, known as Voyager Two, and uncovers firm evidence that the mine could continue for significantly longer than currently planned.

Northern Star believes the intersection is geologically pivotal because it shows the mine plan could be extended beyond the current timetable of late 2011-early 2012.

Under the current plan, known as Stage One, Paulsens will be mined to a depth of 500 metres below surface (mbs).

Bill Beament, managing director, said "while the intersection was not of spectacular grade or width, it was crucial because it supported the company's geological model which indicated that the Voyager Two mineralisation extends down plunge, slightly overlapping and beneath the Voyager One lode."

"This result is early days in terms of establishing the existence and the extent of the Voyager Two lode but it is entirely consistent with our geological modelling and therefore gives us enormous confidence that Paulsens could have many years of highly productive life ahead of it."

"We will proceed full-steam ahead with the remaining holes in this program to establish the extent of Voyager Two and at the same time pursue our in-mine resource extension campaign in a bid to grow the Paulsens gold inventory as much as possible, as rapidly as possible," Beament added.

When Northern Star acquired Paulsens at the end of July, it said Stage One would produce 51,000 ounces in the nine months to the end of February, 2011. This was based on based on mining the Voyager One lode at a depth of 400 (800RL) to 500mbs (700RL).

Subsequent drilling results have showed the Voyager One mineralisation continues to 550mbs, which has an inferred resource of about 39,000 ounces, under Stage Two.

Provided further drilling enables the category of this resource to be upgraded, Stage Two is expected to see the mine life at Paulsens extended until at least late 2011 to early 2012.

Voyager Two raises the distinct prospect of the mine life at Paulsens being extended beyond 2012 under a Stage Three scenario which involves aggressive near-mine and regional exploration to further extend resources and reserves.

The initial assay results have been received quickly because they are from the site laboratory (Leachwell) and hence are only preliminary at this stage. They will be confirmed later via screen fire assay at ALS laboratories.

This is the first hole in a four-hole program to reach the target area, with the third hole currently in progress.

After this initial four-hole program the rig will be relocated to a more suitable platform at the purpose built 705 drill drive which is under current construction and due for completion at the end of October.

Altura Mining inks maiden iron ore Reserve of 19.1Mt at Mt Webber

Thu, 02 Sep 2010 06:45:00 +1000

Altura Mining (ASX: AJM) has reported a maiden Ore Reserve estimate of 19.1 million tonnes @ 57.6% Fe at the Mt Webber DSO project in Western Australia’s Pilbara region.

The Ore Reserve estimate represents a very high conversion of over 97% of the Indicated Mineral Resource at the Ibanez deposit located within the Mt Webber project area (30% Altura : 70% Atlas Iron).

The latest Mineral Resource estimate of 41.9 million tonnes at 57.1% Fe prepared by Atlas (ASX: AGO) was completed in June 2010.

The subsequent Ore Reserve estimate of 19.1 million tonnes @ 57.6% Fe (prepared by Atlas) was completed in August 2010.

The current maiden Ore Reserve estimate of 19.1 million tonnes at Ibanez is contained within the Indicated mineral resource component of 21.9 million tonnes.

Further DSO resources of approximately 22 million tonnes remain and are predominantly located in the Inferred category.

James Brown, Altura CEO, said "the conversion of further Mineral Resources is expected as the infill drilling and evaluation program continues within the Gibson and Fender DSO deposits at Mt Webber during the current quarter."

Drilling commenced at Mt Webber during April 2010 and has completed both reverse circulation (RC) and diamond core programs.

Currently infill drilling and evaluation of results is anticipated to be completed for areas outside of the Ibanez deposit with results expected in Q4 2010.

The Ore Reserve estimate has been estimated in compliance with the JORC Code. In addition there has been a revision of the previously reported Mineral Resources (Inferred) for Mt Webber of 43.7 million tonnes.

The revised Mineral Resource estimate totals 41.9 million tonnes which comprises 21.9 million tonnes of Indicated and 20 million tonnes of Inferred category resources. The minor overall reduction is the result of further density analysis of the DSO material.

Shaw River Resources discovers more high grade manganese at Baramine

Thu, 02 Sep 2010 06:13:00 +1000

Shaw River Resources (ASX: SRR) has reported its first results from an ongoing drilling program underway at its 70% owned Baramine Project, confirming two new manganese discoveries, including high grade drill intersections across a number of existing target areas.

Baramine is located 80km to the north west of the Woodie Woodie Manganese Mine in the Pilbara of Western Australia. The drilling is targeting manganese mineralisation similar to that at the world-class Woodie Woodie deposits.

Drilling is ongoing and will be extended to 10,000 metres to follow-up key targets, putting Shaw River on track to achieving its goal of a maiden JORC resource for Baramine by the end of 2010.

Vincent Algar, managing director, said “this latest drilling at Baramine confirms we have intense manganese mineralisation in zones of significant thickness and width in a very active metal system."

"We are looking forward to updating the market with more drilling results soon and as we define the economic parameters of our discoveries in the coming months. We plan on defining initial resources at the Project in the December quarter of 2010."

Highlights include a new discovery at the Nells Prospect with significant width and grades in BRC 135 containing 9m at 21.2% Mn from 48m including 1m at 32.8% Mn from 48m.

The zone of intense manganese and associated iron mineralisation extends over 400m north-south and 250m wide. Follow up drilling will determine the full extent and potential of the zone and will commence in the current program.

In Area 3 drilling has extended two known highly mineralised zones and confirmed a third new zone. The Main North-South zone containing +30%Mn currently extends over 200m along strike with high quality material intersected, including:

- 8m at 22.4%Mn from 34m including 2m at 36.2%Mn from 36m in BRC169
- 11m at 15.1%Mn from 25m including 1m at 32.9% Mn from 27m BRC 172

The Area 3 mineralised corridor is open to the west, north and to the south for up to 1.5km.

A new discovery in Area 3 of 13m of 16%Mn from 17m including 2m at 22.8%Mn from 18m and 2m at 20.9% from 24m in BRC 177 adds a new zone to the prospect.

The current RC drilling program is continuing and will be extended to 10,000m. Further results are expected in September and October 2010. A diamond drilling program for ore characterisation is being planned on completion of the RC drilling.

Shaw River will utilise the current drilling results to define resources and begin to evaluate the economics of extracting high grade (+40%Mn) manganese products from the mineralisation.

A 40%Mn product currently carries an approximate in-situ market value of US$240/t (using US$6/DMTU).

Shaw River is targeting an initial manganese resource which will pave the way for a long-life mining operation at Baramine.

In the coming months further exciting results are expected from Area 4, Area 5 and new prospect areas including Keeley’s Line and Beebie in September and October 2010.

Exploration targets on key prospects will be released on receipt and analysis of all RC drilling results in October 2010.

A 1,000 metre diamond drilling program for manganese ore characterisation and beneficiation testing will commence once all results have been received – results from testing likely towards the end of Dec 2010.

Co-incident with diamond drilling, initial Inferred resources will be calculated at key prospects at Baramine, expected before end of December 2010.

The outcome of economic scoping studies will be released in early 2011 and Heritage, environmental and mining application processes will commence in early 2011

Shaw River is maintaining its active manganese project acquisition strategy as it continues to build its manganese project pipeline.

Shaw River’s largest shareholder, Atlas Iron (ASX: AGO) (45.4%), is a strong supporter of Shaw River’s manganese strategy.

Gulf Industrials is approached by offtake partners on Soalara limestone project

Thu, 02 Sep 2010 05:32:00 +1000

Sydney based, East African focussed Gulf Industrials (ASX: GLF) has exercised the option to purchase the rights to the Soalara Limestone Project, located near Tulear in the south-west of Madagascar, following completion of its due diligence.

The total acquisition cost including option fees was USD$1,215,000 of which USD$695,000 has been paid and USD$100,000 to be paid on the earlier of the first commercial shipment or 15 December 2010 and the balance of USD$420,000 on the sales receipt from the first commercial shipment.

There is also a royalty of USD$0.40 per tonne to be paid on 70% of production.

Gulf secured the rights to the Soalara tenement in March and its area totals 18.75 square kilometres, covering extensive, high quality limestone mineralisation.

The company is currently initiating a feasibility study process in conjunction with its strategic alliance partners for port, logistics and development advice.

Gulf believes Soalara can be developed and expanded into a world class limestone exporting project as it is favourably located near the existing port of Tulear and adjacent to the proposed Soalara Port, which has been designated as a mineral bulk handling export facility.

Scott Reid, chairman, said “the company envisages a substantial long life mining operation at Soalara. The Board believes that the high quality limestone deposit, combined with its location on the coast - immediately adjacent to a designated bulk mineral handling port, makes for an exciting development proposition."

"Having already been approached by several major limestone end users in the cement lime and steel sectors seeking a joint venture on the project, we are looking at speeding up the feasibility study with targeted production to commence in 18 months.”

Internal conceptual and scoping studies model an initial two million tonnes per annum operation, with targeted revenue of US$28 million per annum, and ramping up to a five million tonnes per annum operation over two years from plant commissioning with targeted revenue of US$70 million per annum.

“The Soalara project represents the next development opportunity for the company and very much fits within our defined African focused industrial mineral strategy," Reid said.

Fortescue Metals' cash flows generate respect

Thu, 02 Sep 2010 05:06:00 +1000

Fortescue Metals (ASX: FMG) has proven an enigmatic investment proposition from the get-go. Having burst on to the scene late in the pre-GFC mining boom with promises of untold iron ore riches, Fortescue's initial Poseidon-like rise polarised analysts.

No one denied that the market for iron ore had taken off parabolically as China revved the engines, nor that Fortescue was sitting on impressive reserves of ore. But the production goals espoused by gregarious magnate twiggy Forest seemed extraordinarily ambitious, and where on earth was the company going to get the money to fund them?

It was not a stretch for Forrest to announce further ore reserve upgrades with every company update, given, as one veteran WA mining analysts put it, that the Pilbara is quite simply made of iron ore. But without a railway line, without a port facility, with nothing much more than a lot of rock sitting out in the back of beyond, most analysts preferred to be healthily sceptical. They acknowledged the potential, but applied a lot of risk discounting to Fortescue's production plans. With the share price running away on an investor frenzy, it wasn't hard to apply a Sell recommendation.

To this day, two Sell recommendations remain among the nine brokers in the FNArena database covering the stock, and the reasons for those ratings has not much changed despite the rollercoaster ride through the GFC and out again. But Fortescue now has railway access and a port facility, investment funding from the Chinese and the market in general, and is producing and selling iron ore. Slowly but surely Twiggy has been knocking down the Doubting Thomases.

Which is largely the reason why Fortescue can now boast four Buy ratings in the FNArena database, to accompany the two Holds which make up the balance. One of those Buy ratings comes from Goldman Sachs which this morning upgraded. Realistically, it's all about cash.

Friday's FY10 profit result from Fortescue was a messy one, requiring analysts to dig through the numbers and adjust for tax rate and interest expense differences before announcing that the result basically beat consensus estimates by some 10%. What was most notable, however, is that the cash is now pouring in. Sustained high iron ore prices and rising production volumes mean FMG has now exceeded its debt covenant requirements. Twiggy may remain a larger than life caricature of a dust-covered, go-for-broke mining entrepreneur, but as BA-Merrill Lynch put it this morning, Fortescue has now achieved an “air of respectability”.

As to whether FMG is a Buy or a Sell, nevertheless, requires comparing its stock price to valuations that can quite simply vary wildly depending on what assumptions one makes. To put this into perspective, consider that FNArena's Stock Analysis service shows forecast FY11 earnings per share ranging from 35.5c (Credit Suisse:Underperform) to 58.0c (Citi: Buy) and FY12 ranging from 35.1c (Credit Suisse) to 72.8c (Merrills: Buy).

Twelve month stock price targets average $5.01, or 6% above today's level, but range from $4.35 to $5.80. The high price belongs to Citi, but the low price belongs not to the obvious Credit Suisse but to Deutsche Bank (Hold).

How does the investor interpret that spread of calculations?

Well given Fortescue does one thing and one thing only – mine iron ore – it's no leap of logic to appreciate that EPS forecasts vary dependent on analyst iron ore price forecasts. And the iron ore price is proving more enigmatic than Fortescue itself.

Having achieved a major coup via BHP Billiton's (ASX: BHP) success in forcing Asian customers into quarterly contract pricing, recent global economic weakness, including deliberate slowing from China, along with a falling iron ore spot price, has had analysts suggesting the “coup” might come back and bite Australia's iron ore producers on the backside.

Expectations have recently been for lower contract prices in the September and December quarters and maybe beyond. Right now the world just doesn't need that much steel.

Or does it? Citi notes that spot iron ore prices in China have now “rocketed” back up to around US$155/t, surpassing the analysts' US$130/t forecast for FY11. In upgradingFortescue to Buy this morning, Goldman Sachs noted the analysts were forecasting strong iron ore prices for the next two years.

But Goldmans also noted growing steel production intensity in China, which would eventually see that industry “mature” after a few more years while global iron ore production is still growing. At that point iron ore prices must fall, such that the winners will be those producers with low production costs and strong balance sheets. ClearlyBHP is in that camp, and maybe even Rio now, but Fortescue?

That's why Goldmans provides a caveat with regards to the way in which Fortescue executes its expansion and funding. If the company is too aggressive and over-levers, look out. Or to use Goldmans' words, shareholders will need to be “nimble in their actions”.

As to whether Fortescue can actually achieve its ambitious expansion goals is still as much of a debate among analysts as it was before Twiggy's first rock arrived at PortHedland. The fact that FY10 saw the company achieving some US$60/t in margin on its iron ore revenues, which allowed it to pull in significant amounts of cash, goes a long way to offering confirmation. But then there is still a long way to go.

The first target of 55mtpa looks safe now. The next target of 95mtp is still questionable. Once again, its not about the iron ore. Chichester has the capacity to expand to80mtpa and Solomon 40mtpa. But where will the money come from? Goldmans suggests internal cash generation should see the 95mtpa achievable, but anything beyond that would require additional external capital and if Fortescue can't find it, the company is “at risk”.

On the other hand, JP Morgan for example has a Neutral rating because it is not yet convinced of anything beyond 55mtpa in the time frame suggested.

The sceptics at Credit Suisse further warn that the market is not taking into account how much of that lovely cash currently being generated will be absorbed by “capex creep”. This has nothing to do with new capex requirements, rather the costs involved in maintaining and enhancing existing capacity.

Citi suggests debt funding could deliver 155mtpa of production by 2014, but the need to manage two major projects is a “significant” constraint before one even looks at restrictions on port allocation and a tight labour market in WA.

To give you an idea of just what sort of a roll of the dice a Fortescue valuation can be, Credit Suisse acknowledges that FMG offers “unparalleled” valuation leverage to the iron ore price, but that the analysts' model can generate a net present value for the stock of a mere 49c on a mid-cycle scenario through to $11.84 if today's spot prices continue in perpetuity.

Macquarie (Underperform) doesn't need to argue whether Fortescue can or can't, it is simply arguing that the “can” is already priced in. On the other hand, RBA Australia (Buy) suggests FMG's current share price is at a “significant” discount to the analysts' net present value calculation, and that FMG can deliver superior production growth in the medium term to the two majors.

It's no wonder Merrills ascribes a “High” risk volatility rating to FMG. For the punters, it's a play on the iron ore price with tremendous upside potentially available as long as either that price doesn't collapse (as it did in late 2008) and as long as Twiggy doesn't get too carried away and tilts at windmills.

There is also the small matter of what some consider a “call option” embedded in FMG at present. Were the Coalition to form a government, one assumes it will stick to its original policy of completely scrapping any idea of a mining tax. While BHP, Rio Tinto ((RIO)) and Xstrata have declared themselves happy with the MRRT, Twiggy has continued his campaign against the tax suggesting the smaller miners have been given short shrift. Thus one assumes a Coalition victory should mean a jump in the FMG share price.

But neither Tony Windsor or Rob Oakeshot are opposed to a mining tax, even if Bob Katter is. That means we're still in limbo over both who will form a government and just what the policy concessions might be.

Source: FNArena

Victoria Oil & Gas raise £9.2m to begin gas delivery by December

Wed, 01 Sep 2010 19:10:00 +1000

Victoria Oil & Gas (LON:VOG) ('VOG') has raised £9.2m through an equity placing, priced at 2.5p per share, to help deliver its first production from its onshore wells in Cameroon by December 2010.

“This fundraising finally enables us to turn the corner into being a producing, revenue-generating company”, Victoria Oil & Gas Chairman Kevin Foo said.

With the new financing under its belt, the company can complete the gas plant facilities and pipeline at the Logbaba field near Cameroon’s economic capital, Douala.

The company is Cameroon’s only onshore gas producer. To date its two gas and condensate wells have tested with flow-rates in excess of 13,000 barrels of oil equivalent per day (boepd) and it has already secured several gas supply contracts with industrial end-users in Douala.

Crucially these initial end-users are all located within 15km of the well heads, therefore VOG will incur minimal capital expenditure to monetise the gas.

The pipeline is scheduled for completion by year end.

VOG expects to sell approximately 10 million cubic feet (Mcf) of gas per day by mid 2011, which would generate gross gas sales revenue of more than US$1m every week.

Furthermore, the company said it is confident that it can build sales to over 100Mcf per day within 5 years.

According to VOG, a domestic supply shortage and the high costs of alternative energy helped it achieve favourable prices on its existing contracts. Under the terms of contracts, VOG will receive US$16 for each million British Thermal Unit (mmbtu) supplied over a 5-year fixed term, approximately 4x the US spot price of US$4 per mmbtu.

“There is a substantial demand for gas in Cameroon and VOG possesses a wonderful asset with significant further upside."

At Logbaba, the first well flowed up to 56Mcf of gas plus 1,000 barrels of condensate per day, for a combined 10,000boepd, and the second well flowed up to 22Mcf of gas as well as an ‘unmeasured amount’ of condensate, for approximately 3,600boepd.

VOG emphasised the further potential of these wells, where a number of additional horizons have yet to be tested.

Furthermore, the company highlighted that its overall prospective resources and reserves were established in 2008, before either Logbaba well had been drilled.

VOG’s original reserve report, with 108Bcf of 2P reserves, evaluated less than 10% of the license area.

According to VOG, the successful completion of the La-105 and La-106 Logbaba wells should provide a material increase in the reserves and resources both on the immediate areas around the well and within the overall license area.

The company expects to report a reserve upgrade before the end of the year.

In reference to the fundraising, Kevin Foo commented: "I am delighted to close this financing in what continues to be a difficult global environment. I welcome the tremendous support and patience that our shareholders have given the company”.

VOG will issue 368m new shares at 2.5p each. The placing will close in two tranches, with the first 284.43m shares being issued on the 7th September 2010, followed by 83.57m shares on the 14th September.

Kevin Foo is participating in the placing, VOG’s chairman is subscribing for 10.7m shares to take his shareholding to 47.26m shares, representing approximately 2.55% of the company. Also VOG finance director Robert Palmer is subscribing for 178,701 shares, and he will subsequently own 832,940 shares (0.04%).

SNS Precious Metals Provides Exploration Update

Wed, 01 Sep 2010 16:40:00 +1000

SNS Precious Metals (“SNS”)(TSX-V: SNS) provided today an update for its projects and exploration plans. The company announced that a NI 43-101 compliant report is being prepared for the Emerald Lake property located in Northern Ontario and will be completed in early September.

Following the Phase 1 drill program conducted at Emerald Lake this past winter, the Phase 2 drill program is being scheduled to commence in mid-October.

Drilling from the Phase 1 program, which consisted of 6,717 m of drilling in 30 holes, returned several gold intersections; the best showings being 171 grams per tonne over 6 feet in hole GR09-29 and 55 grams per tonne over 2 feet in hole GR09-23. Data from the Phase 1 program has been entered into a 3-D model and will be included in the NI 43-101 report, the company said.

The Phase 2 program will consist primarily of 1,500 to 2,000 m of infill drilling designed to intersect the projected extension of the "core zone" below the historical mine workings.

SNS also said that United Mining Group, which has an option to acquire an 80% interest in the Crescent Mine from SNS, is currently completing a ramp that is expected to allow access to the Alhambra Vein and the South Vein in the upper country of the Crescent Mine. The Crescent Mine, which is located in Kellogg, Idaho, is currently being developed by United Mine Services and Syringa Exploration.