Chaarat Gold (LON:CGH) was the sector’s biggest faller after posting an operating loss of $1.97m for the six months to the end of June – down from $2.2m last time.
The group also announced a refreshed strategic focus to achieve production and that its largest shareholder, Martin Andersson, who holds his shares through Labro Investments, has agreed to join as non-executive chairman.
– Development of Tulkubash Heap Leach Project (the “Tulkubash Project”) confirmed
– Tulkubash Project expected to process approximately 8,000 tonnes of ore per day to produce approximately 60-70,000 ounces of gold per annum
– GBM and WAI contracted and working on preparation of Bankable Feasibility Study for Tulkubash Project
– Metallurgical and geotechnical drilling underway on site and due for completion by the end of the 2016 season
Chief executive Dekel Golan CEO said: “I am delighted to welcome our new chairman and director to the Board at this pivotal time in the Chaarat story and look forward to working with them.
“The whole Board is hugely appreciative of the patience and support shown by our loyal shareholders. I know it may have seemed to them that nothing was happening at the Chaarat Project but, as we have now demonstrated, we have implemented concrete plans to achieve production in the near future.
“I am also very grateful for the wise counsel of Christopher, our outgoing chairman, which I am sure, will still be available to me and the rest of the board.”
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Greatland Gold (LON:GGP) says drilling at its Bromus project in Western Australia has detected anomalous levels of silver, zinc, cadmium and sulphur (including 3m at 1.3g/t Ag and 0.5% Zn in BRD004) that are indicative of a polymetallic VMS-type system.
In addition, several broad, low level, nickel intercepts were encountered in BRD002 including 48m at 0.14%, 22m at 0.14% and 27m at 0.14%.
A VMS-type system represents a relatively new discovery for the region and Greatland believes that the results merit further investigation.
Greatland will be conducting downhole EM over the next few weeks to determine the location, size and orientation of buried conductive bodies.
Executive director Callum Baxter said: : “Initial results from the limited drilling campaign recently conducted at Bromus are indicative of a polymetallic VMS-style system.
“Most notably, the association of silver, zinc, cadmium and sulphur that was detected in both BRD002 and BRD004 is relatively unusual in the region, and Greatland intends to do further work over the next few weeks, including downhole EM, in order to better ascertain the nature and size of the mineralisation.”
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Regency Mines (LON:RGM) confirms the sale of its remaining direct interest in the Tenements, comprising its Fraser Range Project in Western Australia, to Ram Resources Ltd for AU$100,000.
– Regency surrenders conversion rights of its remaining 4% direct interest in Tenements into Ram shares for AUD 100,000 cash
– Carrying cost of AUD 3,906 in Regency audited accounts at 30 June 2015
– Additional consideration to Regency of 16,666,666 four year options to buy Ram shares at AUD 0.006 per share
– Regency retains performance shares and a 1% gross revenue royalty interest in Tenements
– Regency has first right of refusal in event of disposal of Tenements.
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Berkeley Energia (LON:BKY) has signed a letter of intent with a European based commodity trading company relating to the sale of the first million pounds of production from the Salamanca mine.
The agreement with Interalloys Trading Limited contemplates the sale of up to one million pounds of uranium concentrate over a five year period starting from the commencement of the mine and extendable thereafter by mutual consent.
The average price contemplated by the parties is above US$41 per pound compared with the current spot price of around US$25 per pound.
A combination of fixed and market related pricing will apply in order to secure positive margins in the early years of production whilst ensuring Berkeley remains exposed to potentially higher prices in the future.
Discussions are under way to finalise the non-binding agreement into an offtake contract by the end of the year.
Berkeley is also in discussions with another potential off-taker in relation to a sales contract with terms similar to those outlined in the Interalloys agreement.
Berkeley’s view is that whilst uranium prices may remain flat in the near term, from 2018, when Salamanca is scheduled to come into production, the market is expected to be dominated by US utilities looking to re-contract who will at the same time be competing with Chinese new reactor demand, which may lead to higher spot and term contract prices.
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The sector’s biggest risers were Nyota Minerals (LON:NYO) and Herencia Resources (LON:HER) – up by more than 33.3% and over 22.2% respectively in late trading.
(LON:BEM) Beowulf Mining PLC share price was 0p at 4.25p
(LON:BKY) Berkeley Energia Ltd share price was +4.5p at 50.5p
(LON:CEY) Centamin PLC share price was +0.3p at 143.2p
(LON:CGH) Chaarat Gold Holdings Ltd share price was -1.43p at 5.88p
(LON:CHL) Churchill Mining PLC share price was +0.13p at 27.25p
(LON:CZA) Coal of Africa Ltd share price was +0.06p at 3.31p
(LON:FDI) Firestone Diamonds PLC share price was 0p at 45.25p
(LON:FRES) Fresnillo PLC share price was +5.5p at 1675.5p
(LON:GEMD) Gem Diamonds Ltd share price was +0.75p at 122.75p
(LON:GGP) Greatland Gold PLC share price was -0.04p at 0.18p
(LON:HOC) Hochschild Mining PLC share price was -1.55p at 257.85p
(LON:KMR) Kenmare Resources PLC share price was +2.88p at 287.88p
(LON:NYO) Nyota Minerals Ltd share price was +0.01p at 0.05p
(LON:RGM) Regency Mines PLC share price was 0p at 0.48p
(LON:VED) Vedanta Resources PLC share price was -10.5p at 511.5p
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