Resources round-up: Silvermere Energy, Kryso Resources, Mediterranean Oil and Gas

published 9 May 2012

Medoilgas Italia, a subsidiary of Mediterranean Oil and Gas, has announced that its exploration permit BR269 GC has been granted a three-year extension until May 5th 2015 by the Italian Ministry for Economic Development. Chief Executive Bill Higgs said: 'We are pleased that this licence extension has been granted and we see this as a positive sign in our on-going discussions with the Italian authorities regarding the issuance of a production concession for our proposed development of the Ombrina Mare field.'

Silvermere Energy, an independent oil and gas company, has been informed that its contractor, Laredo, has found an alternative lift-boat from within its own fleet to operate at the I-1 well in its Mustang Island 8181-L field. The original lifeboat hit an unmarked and unreported obstruction during transit. The lifeboat is expected to come off its existing contract in about 30 days and will then complete the piling and installation of the platform for the re-entrt of the well. Silvermere has a 33.3% working interest in the Dominion Production-operated venture. The firm recently reported that poor weather has already delayed production somewhat.

Kryso Resources has passed that five million ounces of gold mark at the Pakrut and Eastern Pakrut gold prospects. The total now stands a 5.02m oz, an increase of 40% overthe previous year. Measured and indicated resources at Pakrut have increased by 305,000 oz to 2.21m oz of gold. "The updated resource estimate further supports our belief that Pakrut will develop into a significant underground gold mining operation," the firm said.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Angel Mining has announced that since the main generator was repaired and processing of ore recommenced on April 5th, the mining and processing operations have progressed well at the Nalunaq Gold Mine. On May 6th the company completed a gold dor pour of 19.295kg (538oz). Following the next gold pour, expected in about three weeks, the mine and plant are expected to settle into a much more consistent period of cash generative production. The company also raised £0.26m after issuing just over 18.6m shares at 1.40p each, the proceeds of which will be used to meet its repayment obligations for April 2012.

Strategic Natural Resources (SNR), a developer operating in South Africa, has agreed to form a joint venture marketing company which will focus on selling coal to the higher value anthracite market, from the company's Elitheni mine in the Eastern Cape of South Africa. EliTra will be owned 50-50 by Elitheni Coal, SNR's 74% owned subsidiary, and Trasteel. The JV has already pre-sold its first cargo of anthracite coal to a major Brazilian importer, with further pre-sales anticipated in the medium term.

The company has also begun operations at the Elitheni mine and around 100,000 tonnes of coal are set to be exposed by the end of the third quarter of 2012. In addition, the company has commenced stockpiling unwashed coal ahead of the upcoming delivery of a coal washing plant, which can was between 300-400 tonnes of coal per hour.