Mining Roundup

Avocet Mining (LON:AVM) was the sector’s biggest riser after a judge in Ouagadougou ordered the lifting of the seizure of the gold shipment which had taken place on 7 October.

The company continues to explore solutions to resolve the CFA2 billion (US$3.4m) legal claim made by ex-employees against Societe des Mines de Belahourou SA (the Burkinabe entity that operates the Inata mine), which remains ongoing. In the meantime, however, steps are being taken to recover the seized gold for export and to reinstate normal gold shipments thereafter.

The intention is to resume operations at Inata later this week if possible.

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Sunrise Resources (LON:SRES) says it has achieved significant progress on its priority Bay State silver project on a limited budget.

Project summary:

– Historical production (1860s-1920s) focused on Chihuahua Vein – significant historical production including direct shipping ores up to 7,200 g/t (210 oz/t) silver.

– Surface samples of vein material left behind by old miners average 387 grammes/tonne silver (11.3 oz/t) silver along a 280 metre strike length of the Chihuahua vein system.

– Underground sampling returned:

* bonanza values up to 4kg/tonne silver (4,020g/t or 0.4% or 117oz/t) within replacement style mineralisation at end of adit over 61cm (2ft).

* over 1kg/tonne silver (1,123g/t or 33oz/t) average for 18 samples along 230m strike length to end of adit.

– Surface and underground sampling together suggest a c.500m minimum strike length for drill targeting.

– Five holes drilled to date on Chihuahua vein system. Three holes hit high grade silver mineralisation: * 1,460 g/t silver (42.6 oz/ton) over 0.2m from 164.13m in Hole 15SRDD002.

* 566 g/t silver (16.5 oz/ton) over 0.5m from 70.71m in Hole 15SRDD001.

* 503 g/t silver (14.7 oz/ton) over 1.4m from 185.32m in Hole 15SRDD003.

– Fourth hole demonstrated continuity of Chihuahua vein system at 300m below surface. _ Further drilling provisionally scheduled for spring 2017.

Executive chairman Patrick Cheetham said: “The Company has achieved significant progress at Bay State on a limited budget. Through surface and underground sampling on the Chihuahua vein we have demonstrated high silver grades over a strike length of around 500m and have confirmed the occurrence of bonanza grades that supported historical production of direct smelter feed grades in the past.

“We have drilled just five holes so far on the Chihuahua vein, three have hit high grade silver mineralisation and one has demonstrated continuity of the vein system at a depth of 300m below surface. That’s an excellent strike rate and we have been successful in predicting the location of the Chihuahua Vein in all but one hole. This success was underpinned by careful and systematic sampling, and planning which is continuing.

“Due to the high cost of drilling in winter, it is proposed that follow-up drilling be scheduled for spring. This is likely to include further drill testing along strike south of Mining Canyon and deeper drilling beneath the existing high grade drill intersections obtained north of Mining Canyon. Further details will be provided in due course.”

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The sector’s biggest fallers were SolGold (LON:SOLG) and Tri-Star Resources (LON:TSTR) – down by more than 8.6% and 8% respectively in late trading.

At 3:59pm:

(LON:AVM) Avocet Mining PLC share price was +11.63p at 69.13p

(LON:BEM) Beowulf Mining PLC share price was 0p at 5.75p

(LON:BKY) Berkeley Energia Ltd share price was -0.25p at 46.25p

(LON:CEY) Centamin PLC share price was +1.3p at 155.3p

(LON:CHL) Churchill Mining PLC share price was +0.13p at 31.13p

(LON:CZA) Coal of Africa Ltd share price was 0p at 3.25p

(LON:FDI) Firestone Diamonds PLC share price was 0p at 56p

(LON:FRES) Fresnillo PLC share price was +28p at 1604p

(LON:GEMD) Gem Diamonds Ltd share price was +2.63p at 116.13p

(LON:HOC) Hochschild Mining PLC share price was +4.2p at 265.1p

(LON:KMR) Kenmare Resources PLC share price was -2.75p at 278.5p

(LON:SOLG) SolGold PLC share price was -2.13p at 22.38p

(LON:SRES) Sunrise Resources PLC share price was +0.02p at 0.18p

(LON:TSTR) TriStar Resources PLC share price was -0.01p at 0.12p

(LON:VED) Vedanta Resources PLC share price was -2p at 743.5p

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