Today's Market View - Metals set to rise on China construction and credit growth


SP Angel – Morning View – Tuesday 16 04 19

Metals set to rise on China construction and credit growth


MiFID II exempt information – see dsclaimer below 


Ariana Resources (LON:AAU) 1.9p, Mkt Cap £20.1m – Q1 2019 preliminary production results

Armadale Capital (LON:ACP) 1.3p, Mkt Cap £5.0m – Mahenge Liandu graphite project update

Asiamet Resources (LON:ARS) 6.8p, Mkt Cap £68.2m – BKM drilling results

Beowulf Mining* (LON:BEM) 6.1p, Mkt Cap £35.5m – Subscription to raise £500,000

Caledonia Mining (LON:CMCL LN) 421p, Mkt Cap £45.3m – Central Shaft remains on track

Hummingbird Resources (LON:HUM) 18.4p, Mkt Cap £65m – Q1 production update

KEFI Minerals* (LON:KEFI) 1.7p, Mkt Cap £11m – Q1 update

Neo Lithium (CVE:NLN) C$0.95, Mkt Cap C$111.6m – 3Q Environmental Impact Assessment submission

Orosur Mining* (LON:OMI) 3.1p, Mkt Cap £4.7m – Q3 results highlights support by Newmont in jv with Orosur on the Anza project in Colombia

Rio Tinto (LON:RIO) 4708.5p, Mkt cap £79.99bn – Cyclone disruption to Pilbara iron ore business overshadows solid production quarter

Thor Mining* (LON:THR) 0.75p, Mkt Cap £6.1m – Drilling underway at Bonya tungsten project

W Resources (LON:WRES) 0.53p, Mkt Cap £30.7m – Commissioning of the jig and mill plant underway at La Parilla


China – strong credit growth and construction activity driving new economic activity in China

  • Construction activity and credit growth are reported to be driving new demand for commodities in China.
  • China credit growth hit a record in January while construction activity rose by 6.1% yoy in Q4 last year.
  • Investors are also looking for Trump and China to settle their differences over trade in the next few months.
  • Positive statements have come from both camps in recent weeks offering the potential to lift tariffs.
  • Prices for 62% iron ore continue to rise on disruption from the Australian Cyclone, Brazil’s Vale disruption and China’s Green Shield policies.
  • We expect industrial commodities in general to continue to post gains supported by ongoing growth in the US and China despite the slowdown in the Eurozone


100% renewable energy across all sectors possible by 2050 with solar leading the way, study says

  • A new study from Energy Watch Group and LUT University of Finland has claimed a global transition to 100% renewable energy is possible across the electricity, heat, transport and desalination sectors by 2050, and it can be done for cheaper than the current global energy system.
  • The study outlines a path to a 1.5°C scenario that is able to achieve “a cost decline without the reliance on high-risk technologies such as nuclear power and carbon capture and sequestration.” A group of 14 energy transition scientists conducted the study over four and a half years using a “state-of-the-art” modelling simulation.
  • Solar and wind energy are “the new workhorses of the future” in this new projected global energy system, with solar making up an astonishing 69% of the total energy supply by 2050, requiring a enormous total installed capacity of 63,400 gigawatts. Wind energy would make up 18% of the mix, with bioenergy, hydropower, and geothermal accounting for most of the rest.
  • The study relies on existing technology and battery storage, with an emphasis on electrification and decentralization. While fossil fuels and nuclear energy phase out completely in this scenario, electricity consumption will account for more than 90% of the primary energy consumption by 2050.


Drone technology finding increasing commercial application

  • BioCarbon Engineering has developed a drone which can plant 50,000 trees a day.
  • The tree planting is done by firing biodegradable seed pods into the ground.
  • It remains to be seen how well this works but the concept is interesting and should work in certain environments.
  • The next upgrade may be for drones to plant other crops in difficult terrain.


German motor authority probes more Mercedes emissions software (Reuters)

  • The authority is investigating if some 60,000 Mercedes were sold with cheat emissions software.


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AIM Basic Resources







US – Equities ended in the red on Monday (S&P 500 -0.1%) following three consecutive weekly gains as companies continued to report their quarterly earnings.

  • Goldman Sachs shares closed 3.8% down as drops in trading, underwriting, investment management and investing and lending all contributed to a 13% decline in Q1/19 missing market estimates. Total revenue of $8.8bn missed Wall Street $9.0bn estimate with the biggest drop coming from trading which was hurt by weaker market volatility and the impact of the US government shutdown. On a positive note, profits fell less than expected coming in at $2.2bn v $2.7bn last year.
  • Another major financial institution reporting its results yesterday, Citi posted higher than expected earnings as the lender expanded its investment banking business and cut costs. The stock closed flat yesterday.
  • Other notable reports due this week include ones from Bank of America, Blackrock, Morgan Stanley, American Express, Johnson & Johnson, Netflix, IBM, PepsiCo, Honeywell and Taiwan Semiconductor.
  • Voting FOMC member, Charles Evans expects rates to remain on hold until the fall of 2020 saying that the central bank may need to cut them if inflation falls.


Japan – BoJ Governor Haruhiko Kuroda vowed to “patiently continue” the QE programme as it is taking longer than previously expected to accelerate inflation to its 2% target, Retuers reports.

  • Prices remain weak despite a tight labour market, but the momentum toward 2% inflation is intact, Kuroda told lawmakers in parliament.
  • The central bank will consider additional easing if momentum towards 2% inflation is lost.


UK – Employment numbers came in broadly in line with expectations with labour earnings continuing to grow above inflation levels boding well for consumer spending.

  • The number of people in work climbed by 179k to a record high keeping unemployment levels at 3.9%,the lowest level since 1975.
  • Employment Change (3m/3m, ‘000): 179 v 222 in January and 181 forecast.
  • Average Weekly Earnings 3m (%yoy): 3.5 v 3.5 (revised from 3.4) in January and 3.5 forecast.
  • Unemployment Rate 3m (%): 3.9 v 3.9 in January and 3.9 forecast.


Australia – The A$ is off 0.4% against the US$ this morning as central bank on the back of dovish April RBA meeting minutes.

  • The central bank expects inflation to remain muted for some time despite the gradual improvement in unemployment.
  • So far, the labour market strength has failed to cause wage-price inflation.



US$1.1309/eur vs 1.1319/eur yesterday  Yen 111.87/$ vs 111.94/$  SAr 14.028/$ vs 13.938/$  $1.309/gbp vs $1.310/gbp  0.715/aud vs 0.718/aud  CNY 6.707/$ vs 6.704/$


Commodity News

Precious metals:         

Gold US$1,287/oz vs US$1,287/oz yesterday

  • Gold remains ‘trapped in a twilight zone around $1,290/oz’ as investors weighed the uptick in the dollar with the pause in the equity rally, and as Treasuries steadied amid the earnings season in the US.
  • In addition, Chicago Federal Reserve President Charles Evans announced the central bank may need to cut interest rates if US inflation falls, with Evans forecasting the rates remain on hold until the fall of 2020.
  • Despite a growing international push to freeze the country’s assets, Venezuela successfully sold around $400m in gold amid economic sanctions.
  • The US, which has recognised Venezuela opposition leader Juan Guaidó as the nation’s true president, in recent months has levied sanctions against Maduro’s government. That included sanctions against Venezuela’s state-run gold mining company Minerven, which Treasury Secretary Steve Mnuchin accused of "propping up the inner circle of the corrupt Maduro regime."

   Gold ETFs 71.8moz vs US$71.9moz yesterday

Platinum US$892/oz vs US$886/oz yesterday

Palladium US$1,369/oz vs US$1,368/oz yesterday

Silver US$15.01/oz vs US$14.96/oz yesterday


Base metals:   

Copper US$ 6,512/t vs US$6,481/t yesterday

Aluminium US$ 1,863/t vs US$1,857/t yesterday

Nickel US$ 13,140/t vs US$12,975/t yesterday

Zinc US$ 2,876/t vs US$2,925/t yesterday

Lead US$ 1,956/t vs US$1,941/t yesterday

Tin US$ 20,650/t vs US$20,775/t yesterday



Oil US$71.0/bbl vs US$71.4/bbl yesterday

Natural Gas US$2.591/mmbtu vs US$2.643/mmbtu yesterday

Uranium US$25.90/lb vs US$25.85/lb yesterday



Iron ore 62% Fe spot (cfr Tianjin) US$93.8/t vs US$93.7/t

Chinese steel rebar 25mm US$650.8/t vs US$649.3/t

Thermal coal (1st year forward cif ARA) US$73.8/t vs US$74.7/t

Coking coal futures Dalian Exchange US$182.1/t vs US$187.7/t



Cobalt LME 3m US$35,000/t vs US$34,500/t

NdPr Rare Earth Oxide (China) US$39,881/t vs US$39,899/t

Lithium carbonate 99% (China) US$9,616/t vs US$9,620/t

Ferro Vanadium 80% FOB (China) US$48.5/kg vs US$48.5/kg - Vanadium – prices continue to slide

  • Subdued demand in China and aggressive offering in Europe continues to push vanadium prices lower.
  • Ferro-vanadium prices fell a further 5.1% last week to $45.5-47/kgV in Europe.
  • Prices played catch-up US where ferro-vanadium fell 13.4% to $25-26.5/kgV last week.

Antimony Trioxide 99.5% EU (China) US$6.4/kg vs US$6.4/kg

Tungsten APT European US$270-282/mtu vs US$270-282/mtu


Battery News


Company News

Ariana Resources (LON:AAU) 1.9p, Mkt Cap £20.1m – Q1 2019 preliminary production results

  • Preliminary production results for the first quarter 2019 record 7,296oz (Q4 2018: 7,517oz), exceeding the average annualized quarterly guidance by 17% at the Kiziltepe Mine which forms part of the Red Rabbit JV with Proccea Construction Co.
  • Total ore processed for the quarter was 46,824t (Q4 2018: 49,717t) at an average head grade to the plant of 4.83g/t.
  • Quarterly open pit ore mined was c. 26,746t, at an average mined grade of 4.04 g/t gold, and total material movement for the quarter was 771,190t.
  • Average metallurgical plant recovery of gold for the quarter remains high at 93.7%.
  • Managing Director Dr. Kerim Sener notes the above average production was achieved “while movement of ore from the open pit was limited by the pushbacks, output of the process plant was maintained at high levels through the planned drawdown on stockpiles”.


Armadale Capital (LON:ACP) 1.3p, Mkt Cap £5.0m – Mahenge Liandu graphite project update

  • Armadale Capital expect completion of the DFS in Q4 2019 following the Scoping Study that reported NPV of US$349m, development CAPEX of US$35m, pre-tax IRR of 122% for the Mahenge Liandu graphite project in Tanzania.
  • Based on the Scoping Study findings the Company announced the commencement of a DFS in May 2018 which is based on a throughput of 400,000tpa over a 32-year mine life.
  • Remaining work focuses on product marketing, developing transport and logistics pathway and the Resource update which aims to incorporate at least 10 years of planned production in the Measured category.
  • The Scoping Study was based on an upgraded Total Graphitic Carbon JORC compliant Resource reported Feb. 2018 with 51.1Mt @ 9.3% TGC including 38.7Mt Indicated @ 9.3% and 12.4Mt Inferred @ 9.1% TGC.
  • Environmental Social Impact Assessment and Relocation Action Plan reports have also been finalised and are expected to be submitted to the National Environment Management Council this month.
  • Focusing on product marketing, product quality wide diameter drilling has also been completed to create representative concentrates and test work thereon will provide data on graphite recovery rates, flake size distribution and final product purity.
  • Test work programme is ongoing to progress the MOU for offtake of 30,000tpa of graphite concentrate to a binding agreement with the Matrass Group, a China based graphite mining and processing company.
  • Discussions are progressing with further offtake partners for remaining 19,000tpa of graphite concentrate.
  • The Company sent a shipment of 1.6t diamond core for metallurgical testwork to enable completion of the final plant design. The results of metallurgical test work for product quality are expected in June 2019. Downstream test work results confirming product quality are expected in July 2019.
  • Reflecting the progress of work to date, the Company expects to submit its application for a mining lease in August 2019.


Asiamet Resources (LON:ARS) 6.8p, Mkt Cap £68.2m – BKM drilling results

  • Asiamet Resources has released highlights from the final holes of its infill drilling programme which was undertaken as part of its feasibility study for the BKM copper property in Central Kalimantan.
  • Among the results highlighted in today’s announcement are
    • A 13.0m wide intersection averaging 1.42% copper from a depth of 12m in Hole BKM31690-01, which is located in the southern part of the proposed pit. The intersection included 2m at an average grade of 3.49% copper from a depth of 12m;  and
    • A 90.0m wide intersection averaging 1.08% copper from a depth of 43.5m in Hole BKM32250-09, which is located in the north-central part of the proposed pit. The intersection included 25m at an average grade of 2.37% copper from a depth of 78.5m;  and
    • A 10.65m wide intersection averaging 1.09% copper from a depth of 72.15m in Hole BKM32200-09, which is also located in the north-central part of the proposed pit. The intersection included 6.35m at an average grade of 1.45% copper from a depth of 72.15m;  and
    • A 19.4m wide intersection averaging 0.97% copper from a depth of 85.6 in Hole BKM31690-01, which is located in the southern part of the proposed pit. The intersection included 2m at an average grade of 3.49% copper from a depth of 12m.
  • The company highlights that the holes drilled in the north-central part of the planned pit intersected zones of “moderate to strong chalcocite and covellite copper mineralisation … [while those in the southern area] … intersected zones of moderate to strong covellite, bornite and minor chalcopyrite copper mineralisation as anticipated”.
  • Commenting on the progress of the project, CEO, Peter Bird confirmed that “Detailed mine design and mining engineering studies coupled with rigorous analysis of capital and operating costs are well advanced with the aim of delivering an economically robust BFS for the BKM project by the end of May 2019".
  • Mr. Bird went on to say that the “results of the Resource evaluation drilling programme have upgraded our level of confidence in the BKM Resource model and indicate that copper mineralisation remains open to the South and North-East area of the deposit.”

Conclusion: The infill drilling at BKM continues to produce wide zones of copper mineralisation and confirmed that the mineralisation remaind open both to the south and to the north-east. We look forward to the results from the feasibility work expected by the end of May.


Beowulf Mining* (LON:BEM) 6.1p, Mkt Cap £35.5m – Subscription to raise £500,000

  • Nordic-focused mineral exploration and development company announce subscription for new ordinary shares of £0.01 each to raise £500,000.
  • The funds will be used for general working capital purposes and for supporting its commitment to Vardar Minerals’ Kosovan exploration programme.
  • CEO Kurt Budge adds "given the positive trajectory we have with Kallak, our graphite in Finland and our investment in Vardar Minerals, having this extra cash gives the Company flexibility in continuing to deploy capital across our business areas and create shareholder value.

*SP Angel acts as nomad and broker


Caledonia Mining (LON:CMCL) 421p, Mkt Cap £45.3m – Central Shaft remains on track

  • Caledonia Mining reports that its Blanket gold mine in Zimbabwe produced 11,948oz of gold during the quarter ended 31st March and that the mine remains on track to achieve both the 2019 production guidance target of 53-56,000oz and the longer term objective of 80,000oz pa by 2022.
  • CEO, Steve Curtis explained that “Production in the first quarter of 2019 was slightly below our target and below the comparable quarter in 2018 (Q1 2018: 12,924), albeit at a level which allows us to maintain our 2019 production guidance of 53,000 to 56,000 ounces for the full year”.
  • Mr. Curtis elaborated; “Continued difficulties with unstable electricity supply and grade dilution which we experienced in 2018 had an adverse effect on production, but improved drilling and blasting practices have been put in place in pursuit of improved grade control and I am pleased to say that efforts to minimize dilution are proving successful."
  • Work on the new Central Shaft project, which underpins both the longer term production targets and the longevity of the Blanket Mine, “continues according to plan; we are now only months away from the completion of the shaft sinking phase of the project and are set to commence shaft equipping from mid-2019. We look forward to commencing production from the central shaft from mid-2020 which is expected to deliver the Company's growth plan to achieve 75,000 ounces in 2021 and 80,000 ounces by 2022."

Conclusion: Caledonia Mining’s operational team is close to completing the shaft-sinking phase of the new Central Shaft at the Blanket mine and expects to start equipping the shaft later this year. Managing the conflicting demands of constructing what is in effect a new mine beneath the existing operation while maintaining production is one of the more challenging tasks in mining – despite the additional challenges of coping with an erratic electricity supply the team must be beginning to see the fruits of their efforts with increasing confidence.


Hummingbird Resources (LON:HUM) 18.4p, Mkt Cap £65m – Q1 production update

  • 23.8koz produced in Q1/19 (Q4/18: 17.9koz) processing 281.3kt at 2.46g/t (Q4/18: 333.7kt at 1.91g/t).
  • AISC amounted to $1,297/oz versus $1,677/oz  in Q4/18 reflecting Komana East pit wall remediation works carried during the period.
  • Production is reported to have come below estimates led by weaker plant throughput due to reduced supply of softer oxide ore blend and lower treatment facility availability as well as lower mined grades.
  • Lower grades and availability of oxide ROM ore was attributed to deeper and more extensive artisanal mining depletion in Komana West, higher than anticipated mining dilution and ore losses as part of rehabilitation works in Q4/18 and early 2019 and lower mining volumes of higher grade zones that are yet to be accessed.
  • The team is working closely with the mining contractor to improve the delivery of additional tonnes to the ROM pad ahead of the west season.
  • Additionally, the Company is looking to update resources/reserves and Yanfolila LoM in Q2.
  • Second ball mill construction works are 60% complete with the project due to be completed in Q3/19 allowing to raise throughput of the milling circuit by c.25% from current 1mtpa (based on fresh ore).
  • The Company cautiously reiterated its 110-125koz production target for the year while highlighting that AISC may exceed its previous $800-850/oz guided range.

Conclusion: Quarterly production update highlights challenges encountered on the mining side as well as lower than anticipated plant availability which are being addressed by the management. While reiterating previous production and AISC guidance, the Company cautioned those may come in weaker than anticipated.


KEFI Minerals* (LON:KEFI) 1.7p, Mkt Cap £11m – Q1 update

  • Relocation programme approved by the federal government with regional authorities having begun triggering the consecutive steps of the resettlement which is to lead to compensation payments for the phase one move of some 60 households in July.
  • The central bank has issued approvals regarding capital ratios, hedging and bank accounts with residual matters expected to be resolved shortly.
  • Earlier, PM Dr Abiy Ahmed expressed his support for the project by issuing the remaining instructions for the project go ahead.
  • Infrastructure-wise, the Ethiopian Electrical Power Corporation and Ethiopian Roads Authority had their budgets approved and are readying sub-contractor tender documentation.
  • Processing plant commissioning targeted for Q4/21.
  • The Company raised £1.0m in February and has not yet drawn on the first £2m of the available £4m convertible loan facility with Sanderson.
  • The team is expecting cash burn to come down to £1m per annum once development works start while the Company is estimating £2m of costs-reimbursement would be available once full financing is closed.
  • The Tulu Kapi is estimated to generate £90m (100% based, post tax, after debt, 8% DR and $1,300/oz) or £41m for KEFI 45% interest at start of construction.
  • In Saudi Arabia, the exploration team is in the field completing a programme of trenching and geophysical surveys ahead of the initial drilling scheduled for Q3/19 targeting copper-gold anomalies.
  • The new Saudi Government continues the review of mining regulations with little information on changes involved so far.

*SP Angel act as Nomad and Broker to KEFI Minerals


Neo Lithium (CVE:NLN) C$0.95, Mkt Cap C$111.6m – 3Q Environmental Impact Assessment submission

  • Neo Lithium present the Environmental Impact Assessment (“EIA”) to Catamarca Environmental and Mining Authorities, prepared by GT Ingenieria SA (Argentina), a company specialized in environmental studies with deep experience in the mining and industrial sectors.
  • The EIA included work with local professionals from University of Catamarca, Tucuman and Mendoza as well as the IHLLA Research center in Buenos Aires, specialised in Hydrogeology. The hydrogeological model allows authorities to understand the impact of exploitation in brine water table in the salar, and surrounding lithium brine lakes.
  • The EIA follows reporting of the pre-feasibility study which outlined the production of 20,000tpa lithium carbonate.
  • In October 2018, the Company presented to the environmental authorities the environmental baseline study, with two years of data for flora, fauna, social studies, water studies, air studies, soil studies, archeology, limnology and complete overview of the environmental issues of the region. Baseline studies suggest the 3Q project can be developed with minimal impact in the ecosystem and identified areas outside the tenements that are environmentally sensitive, proposing to the authorities a special treatment of those sectors.
  • Renewal of the initial environmental permit allowed for the development of further infill drilling for the final feasibility study, production wells, monitoring wells and further drilling in the high-grade zone. The Company is also running a fully operational lithium carbonate pilot plant in Fiambalá.


Orosur Mining (LON:OMI) 3.1p, Mkt Cap £4.7m – Q3 results highlights support by Newmont in jv with Orosur on the Anza project in Colombia

  • Orosur Mining report Q3 financial results to end February 2019.
  • Orosur has recently received some US$740,000 from Newmont Mining as part of its joint venture agreement over the Anza gold project in Colombia.
  • The company report Current Assets of $7.3m made up of $1.033m in cash $5.301m in inventories added to $0.1m of receivables
  • Current Liabilities stand at $22.8m and principally relate to bills owing on the Uruguay assets where 72% of creditors by value support management’s proposed reorganisation agreement. The agreement is for the Uruguay subsidiary to reclaim and close its operations and to disperse remaining funds to creditors.
  • Orosur spent $1.9m on exploration over the past three months taking the group net loss to $2m for the three-months to end February 2019.
  • Corporate and admin costs rose to $0.5m through the period from $0.4m yoy.

*SP Angel act as Nomad and broker to Orosur Mining


Rio Tinto (LON:RIO) 4708.5p, Mkt cap £79.99bn – Cyclone disruption to Pilbara iron ore business overshadows solid production quarter

  • Rio Tinto reports a solid “quarterly operational performance in our other products” in the first quarter of 2019, but the quarterly results also draw attention to Australian the iron ore business which “faced several challenges at the start of this year, particularly from tropical cyclones. As a result, and following the continuing assessment of damage at the port resulting from the cyclones and other minor disruptions, 2019 guidance for Pilbara shipments is reduced to between 333 and 343 million tonnes.”
  • The weather related disruption in the Pilbara was exacerbated by “a fire at Cape Lambert A in January. These events will have an impact on second quarter performance”. Overall iron ore shipments from the Pilbara declined by 21% to 69.1mt during the quarter. As previously reported, the overall impact on 2019 production is expected to be around 14mt of lost production.
  • Mined copper production during the quarter declined by 5% to 143,900t with an 11% increase from Oyu Tolgoi more than offset by reductions of 10% and 5% at Kennecott and Escondida respectively. Grades at Kennecott have, however improved from Q1 2018 “coupled with productivity improvements and increased plant throughput”.
  • Copper production guidance for 2019 remains unchanged at 550-600,000t of mined copper ”subject to grade availability”.
  • Bauxite production “of 12.8 million tonnes was one per cent higher than the same period of 2018. Increased production capacity following the expansion of Amrun in Queensland was partly offset by weather events throughout the quarter at Weipa, Amrun and Gove, which significantly impacted production. Amrun ramp-up is progressing well, with production rates as per plan”.
  • Rio Tinto is maintaining its 2019 bauxite production guidance at 56-59mt with alumina production expected to be in the range 8.1-8.4mt and aluminium metal of 3.2-3.4mt.
  • The company spent $124m on exploration during the quarter. Fifty-one percent of the total was incurred by “central exploration, 38 per cent by Copper & Diamonds, seven per cent by Energy & Minerals and the remainder by Iron Ore and Aluminium.”
  • During the quarter, Rio Tinto announced the discovery of copper/gold mineralisation at its Winu project located in the Paterson Province of W Australia about 350km southeast of Port Hedland. In our experience, the announcement of relatively early stage exploration results by a major mining company is relatively unusual and we note that today’s announcement also refers to the discovery of “copper-gold mineralisation in the Paterson Province in the far east Pilbara region of Western Australia.”

Conclusion: Despite a solid performance across most of its operating divisions, the quarterly results are likely to attract attention for the iron ore production setbacks resulting from the aftermath of Cyclone Veronica in March.


Thor Mining* (LON:THR) 0.75p, Mkt Cap £6.1m – Drilling underway at Bonya tungsten project

  • Thor Mining reports that it has started drilling at its 40% owned Bonya tungsten project (Arafura Resources 60%) adjacent to its Molyhil deposit in Australia’s Northern Territory.
  • In January 2018 Molyhil reported a JORC compliant probable ore reserve of 3.5mt at an average grade of 0.29% tungsten trioxide and 0.12% molybdenum.
  • The 2500m programme of reverse circulation drilling is expected to take approximately 2 weeks and will concentrate on the Samarkand, Jericho, White Violet and Tashkent deposits and will be undertaken in conjunction with approximately 200m of trench sampling across each of the Marrakesh and Tashkent deposits.
  • The company reports that the area is known for historical tungsten mining activity although “it has had no tungsten drilling since the 1970s”. In particular, the company says that “The Jericho deposit, in particular, has been mined historically, with a surface stockpile estimated at several hundred tonnes of scheelite ore at surface adjacent the deposit”.
  • Commenting on the drilling programme, Executive Chairman, Mick Billing, explained that there are “13 outcropping tungsten deposits at Bonya, several of which have historical mine workings, have the potential to add considerably to the life, scale, and economic outcomes of the Company's flagship Molyhil project nearby."

Conclusion: The programme of drilling and trench sampling at Bonya should establish the potential to provide additions to the mineral inventory at Molyhil. We look forward to results as they become available.

*SP Angel act as joint broker to Thor Mining


W Resources (LON:WRES) 0.53p, Mkt Cap £30.7m – Commissioning of the jig and mill plant underway at La Parilla


  • W Resources has confirmed that commissioning is now underway for the Jig and Mill plant at its La Parilla tungsten operation in Spain.
  • The plant is designed to upgrade feed to the concentrator plant “allowing for a significant upgrade in production rates”.
  • The company also says that “the new large scale Concentrator Plant … is scheduled for construction completion this quarter”.
  • Commenting on the progress, Chairman, Michael Masterman, said “The commencement of commissioning the La Parrilla Jig and Mill Plant following construction completion is a very important milestone as we advance to full completion of the 2 million tonne per annum plant. We expect to be able to feed crushed ore to the Jig and Mill Plant in late April and then process it through our existing Concentrator Plant.”

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