Resources round-up: Sefton, W Resources, Bullabulling

Sefton Resources, the independent oil and gas exploitation and production company with interests in California and Kansas, said the Southern Star-LAGGS pipeline is now complete. Transmission revenue will commence once sufficient equity gas and third party gas production has been accumulated to provide for economic operations. The company added that Allenby Capital has been appointed as its Nominated Adviser (Nomad).

By MoneyWeek

published 31 October 2012

in Features

W Resources, the gold mining company formerly known as Caspian Holdings, has made continued exploration progress at its wholly owned Portalegre asset in Portugal. Consistent grades above one gram per tonne (g/t) indicate potential for an open pit deposit close to the surface, the company's Chairman, Michael Masterman, said. Drilling at the project, which comprises to adjacent gold exploration licences covering an area of some 500 square kilometres, will continue, Masterman added.

Sticking with gold miners, Bullabulling Gold said it made good progress with the pre-feasability study on the Bullabulling gold project in the third quarter. Average operating costs over the forecast 10-year life of the mine have been estimated at around $27.50 per tonne of ore mined and processed. These cost estimates are based on contractor mining and so include the contractor's margin and full ownership costs of the mining fleet. An average head grade of around 0.88g/t is indicated, with plant recovery of about 88% leading to average life of mine cash costs of $1,100 per ounce of gold produced. In the early years of the project cash costs are expected to be materially lower, as higher than average grade ore will be preferentially targeted and mining depth will be shallower. Total capital costs for the project are expected to be in the range of $297m to $333m.