Resources round-up: New World, CSS Stellar, Galileo Resources

New World Oil and Gas, an oil and gas sector investor, has completed a Farm-Out Agreement with Danica Resources to acquire an initial 12.5 per cent (and up to an 80 per cent) working interest in the highly prospective 6,420 sq km licence 1/08 in southern Denmark. New World is now the operator of the licence. The estimated cost for the company was 1.4m dollars.

CSS Stellar, which has moved its business into the natural resources sector, has reported a very positive assessment of its 49%-owned investment in Gold Mines of Wales, which holds the licensce over the prospective Dolgellau gold-belt in County Gwynedd, North Wales. The global exploration target for the entire gold-belt is between 500,000 - 2,000,000 tonnes at 3g per tonne gold and 15g per tonne gold for 130,000oz gold and 500,000oz gold.

African Rare Earth exploration company Galileo Resources has announced an indicated and inferred independent gross resource estimate of 28.93m tonnes at 1.24% total rare earth oxides at its Glenover Rare Earths Joint Venture project, in the Limpopo Province of South Africa. The gross resources estimate inferred in surface stockpiles was 2.68m tonnes at 1.94% total rare earth oxides. In addition, "significant" values of niobium, phosphate and scandium were also found at the site and are potential by-products.

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Scotgold Resources has announced positive results from the study of its 100% owned Cononish Gold and Silver project in the Grampian Highlands. At base case prices, the project generates £23.4m pre-tax free cashflow and a pre-tax internal rate of return (IRR) of 25.4%. At current spot prices, the project is highly cash generative with £65.9m pre-tax free cashflow over the life of the project, a pre-tax IRR above 60% and payback initial investment within 18 months of the start of production.