Resources round-up: Berkeley, Providence, Resaca

Berkeley Mineral Resources, which earlier this year signed a memorandum of understanding with Yunnan Xiangyun Feilong Nonferrous Metal Company, has said that the initial series of tests by Feilong on Berkleley's samples of mine tailings it owns in Kabwe, Zambia, have concluded that the material is processable for lead and zinc using standard Feilong technology. These tests have also shown that the material has processable grades of Indium, Silver, Antimony, Germanium and Copper and as a result Feilong is now proceeding to full assays for all the elements which can be liberated in the Kabwe material.

By MoneyWeek

published 13 September 2012

Providence Resources, the oil and gas explorer working in the North Celtic Sea offshore Ireland, has confirmed that is has now received formal notification from ExxonMobil Exploration and Production Ireland that a letter of intent has been signed with Ocean Rig for the Eirik Raude semi-submersible drilling rig. The rig will drill an exploration well in the Frontier exploration licence 3/04, offshore Ireland, with an estimated programme duration of up to six months. The contract is scheduled to begin in the first quarter of 2013.

Resaca Exploitation, the energy company focused on the Permian Basis in the USA, has had to lower its production targets for the year to June 30th, 2013, as a result of being in violation of its debt covenants. The company said it is having to rein in activities to those that can be funded through cash flow. As a result, it is not now anticipating being able to increase its current fiscal year production levels to its previous targets, which were in excess of 1,000 barrels of oil equivalent per day.