This week’s news in the mining sector included a raft of drilling report from small cap precious metals miners including Hambledon Mining (LON:HMB), Nyota Minerals (LON:NYO) and Medusa Mining (LON:MML) most of which were positive.
Starting with Hambledon, the group said the latest drill results from its Sekisovskoye underground gold project in Kazakhstan provided “robust” confirmation of the geological model.
The main intersections from December’s drilling were 9m at 4.86g/t gold, 2m at 3.5g/t gold and 4m at 2.62g/t gold.
The drill results and mined grade compare favourably to ore body number 11 where mining started in late 2011 and that will be mined in 2012, Hambledon said.
“The results are consistent and in many areas exceed the geological and mineral resource modelling previously carried out,” it added.
The Sekisovskoye deposit comprises approximately ten large mineralised zones intermingled with numerous "narrow and sinuous" mineralisation zones.
In the meantime, peer Nyota Minerals announced the restart of drilling at its Tulu Kapi project in Ethiopia and unveiled further drilling results.
The firm added that a new resource estimate was underway for the project, which is on track to be released later this quarter.
The firm's chief executive Richard Chase told investors: "Drilling continued right up until Christmas and recommenced yesterday (Jan 17).
"Although there are a large number of sample assay results still pending we anticipate all of this additional data being available for the new resource estimate, which is underway and on track for release later this quarter."
Other drilling reports came from Medusa Mining and Cluff Gold (LON:CLF).
Medusa Mining revealed more positive results from the Bananghilig gold deposit in the Philippines where drilling continues.
Medusa is currently validating the existence of a 650,000-ounce resource at Bananghilig, which it aims to extend to a reserve of around 1 million ounces. It is currently focused on upgrading the resource to the indicated category.
This reserve would form the basis for a feasibility study, which would target production of 200,000 ounces of gold per year from a new milling facility.
Africa-focused Cluff Gold has reported "significant" gold sulphide drilling results from the Angovia project - now called the Yaoure project in the Ivory Coast.
The company is confident that the existing resources at Yaoure - consisting of 169,000 ounces in the measured category and 123,000 ounces in the indicated - can be significantly increased during this year.
Initial work suggests that a significant open pit resource could be delineated at favourable stripping ratios. Importantly, testwork indicates that the sulphides are not refractory, suggesting that recovery from a standard CIL plant will not be a problem.
"To this end, we have approved a US$6.6 million budget for an aggressive 79,000m exploration drill programme in 2012 which is currently underway," said Cluff's chief executive Peter Spivey.
Sticking with gold miners, Anglo Asian Mining (LON:AAZ) was nearly debt free by the end of 2011 after its final quarter saw increased gold production and a strong selling price.
The miner produced 15,292 oz of gold from its Gedabek gold and copper mine in Azerbaijan in the three months to December.
That was the highest quarterly output in 2011 and up from 13,166 ounces in the previous three months.
Total production for the year was 57,068 oz gold, with Anglo achieving an average sale price of US$1,573. In the fourth quarter the average price it received was US$1,688.
Elsewhere in the sector, Beowulf Mining (LON:BEM) has appointed a technical consulting firm to advance its Kallak project in northern Sweden.
Micon International has provided services to the international mining industry for more than 20 years, the firm said in a statement.
It will review existing drill data and recommend future drilling, focusing on extending the limits of the deposits - Kallak North and Kallak South - and define additional inferred resources.
Among other work, it will develop a programme of definition drilling so that the resource can be upgraded from the JORC inferred category into the higher indicated level.
Fellow iron ore miner Afferro Mining (LON:AFF, CVE:AFF) said it has now received final approval from the TSX Venture Exchange for the sale of its 38.5 per cent stake in the Putu iron ore project to Severstal Resources associate company Lybica Holdings.
The US$115 million deal was announced mid-December 2011 and gives Lybica full control over the Liberian project.
The funds allow Afferro to accelerate the development of its wholly-owned Nkout iron ore project in Cameroon and enhance its negotiating position as it seeks a strategic partner for Nkout.
In other news, North River Resources (LON:NRRP) said this week it is acquiring a 50 per cent stake in a company which holds two uranium licences in Namibia.
Brandberg Energy was created by Extract Resources (ASX:EXT, TSE:EXT) and holds exclusive prospecting licences 3327 and 3328, located near the old tin mining town of Uis in the northwest of the country.
NRR will receive its half share in Brandberg in return for pumping US$800,000 into the company.
Separately, a horizontal loop electromagnetic survey over 3327 and 3328 has identified of two uranium target areas.
Namibia-focused copper miner Weatherly (LON:WTI) increased output by 11% in its latest quarter as grades and recoveries both improved again.
Copper concentrate production increased 14.2% in the three months to December from the previous quarter to 5,714 tonnes, while contained copper production increased 10.9% to 1,421 tonnes.
Recovery rates rose to 92.8% with grades up to 1.56%, the fourth consecutive quarter both metrics have improved.
The Matchless mine maintained target ore output in the second quarter and its ore body width, strike length and grade all continue to improve with depth.
Finally, Metminco (LON:MNC, ASX:MNC) said the latest drilling results from its 100 per cent owned Mollacas copper leach project in Chile confirms the continuity of the copper oxide and enriched supergene zones.
The group has now received all assay data for drill holes MD 61 to MD 84, which completes the infill drilling phase of the project in advance of completing a final resource estimate, conducting confirmatory metallurgical testwork and commissioning a feasibility study.
The infill drilling results will allow Metminco to convert current resources into JORC-compliant measured and indicated categories, as well as to define the outer limits of the oxide and supergene mineralisation.
This week’s research included notes on Horizonte Mineral’s (LON:HZM, TSE:HZM) and Aureus Mining (LON:AUR) from Panmure Gordon and Clarus Securities respectively.
Panmure said the recent resources upgrade at Horizonte Mineral’s Araguaia nickel project to 100Mt confirms that the project is potentially world-class.
The upgrade to 100Mt at 1.3% nickel, including a 50Mt higher-grade zone averaging 1.5% demonstrated Brazil-located Araguaia is comparable to other ferronickel projects currently being developed in Brazil by global majors including Anglo American’s Barro Alto project and Vale’s Onça Puma project.
Over the next three months Horizonte should release initial metallurgical results for Araguaia, while a preliminary economic assessment is due for completion in the first half of this year.
Meanwhile, Canadian broker is expecting significant news flow from Aureus, which is developing the New Liberty mine, as well as pursuing other exploration projects in the surrounding area – all of which is found within the Bea Mountain licence area.
Clarus analyst Nana Sangmuah says a definitive feasibility study is expected within a matter of weeks at New Liberty.