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  • 1. 1 ALL dollars are US unless otherwise stated, and all units are metric. The subscription to IM Project News is personal and the content is copyright. IM Project News should not be passed on to others, either as forwarded emails, as photocopies, or copies in any other form. Intranet subscription details are available from Contact INTERNATIONAL MINING PROJECT NEWS (111) November 19, 2010 News from those projects making progress towards production – more every two weeks A collection of recent starts and progress reports from around the world - updates on projects around the globe likely to be in the market for equipment and services. PREFEASIBILITY................................................................................................................................................4 USA - Ventana Gold - SILVER/GOLD/COPPER ...................................................................................................4 BOTSWANA - Hana Mining - COPPER/SILVER/MOLY........................................................................................4 REPUBLIC OF CONGO - Cape Lambert Resources - RON ORE………………………………………………………………………5 AUSTRALIA - ATW Gold Corp/ Mutiny Gold Ltd - GOLD .....................................................................................5 CANADA - Coalspur Mines – COAL………………………………………………………………………………………………………………6 PERU - Cía. de Minas Buenaventura, Minera La Zanja/ Newmont Mining/ Soc Minera El Brocal/ CEDIMIN/ Minera Yanacocha/ Soc Minera Cerro Verde - (GOLD/COPPER/MOLY/SILVER.............................................................6 NAMIBIA - Minemakers Ltd/ Union Resources/ Namibian Marine Phosphate - PHOSPHATE................................6 KYRGYZ REPUBLIC - Orsu Metals Corp/ Gold Fields - GOLD/COPPER/MOLY ....................................................7 SIERRA LEONE - Cape Lambert Resources - IRON ORE ....................................................................................7 SWEDEN - Tasman Metals - RARE EARTH ELEMENTS .....................................................................................7 BURKINA FASO - Orezone Gold Corp - GOLD...................................................................................................8 AUSTRALIA - Syndicated Metals Ltd - COPPER/GOLD ......................................................................................8 CANADA - Avalon Rare Metals - TIN/INDIUM/POLYMETALLIC .........................................................................9 LIBERIA - African Aura Mining - GOLD.............................................................................................................9 REPUBLIC OF CONGO - Zanaga Iron Ore/ Mining Project Development Congo S.A.U. - IRON ORE..................10 FEASIBILITY STAGE.........................................................................................................................................10 PERU - Jinzhao Mining Peru/ Strike Resources - IRON ORE...........................................................................10 TANZANIA - Atomic Resources/ Aspac Mining/ New Hope Corp - COAL ..........................................................10 AUSTRALIA - Hancock Coal/ Hancock Galilee/ Hancock Coal/ BHP Billiton - COAL ..........................................11 USA - Electrum Resources/ THEMAC Resources/ Marley Holdings/ Tulla Resources - COPPER/MOLYBDENUM…………………………………………………………………………………………………………………………..11 USA - Romarco Minerals - GOLD.....................................................................................................................12 AUSTRALIA - Arafura Resources Ltd - RARE EARTHS.....................................................................................12 SOUTH AFRICA - Platinum Australia Ltd / African Rainbow Minerals Platinum - PLATINUM.............................13 IVORY COAST - Perseus Mining - GOLD..........................................................................................................13 TURKEY - Stratex International - GOLD...........................................................................................................14 USA - Nevada Copper Corp - COPPER ............................................................................................................14 CHILE - Herencia Resources - ZINC/LEAD/SILVER/GOLD/COPPER.................................................................15 BRAZIL - Guyana Goldfields - GOLD................................................................................................................15 SWEDEN - Avalon Minerals - COPPER/IRON ORE ...........................................................................................16 AUSTRALIA – Endocoal - COAL......................................................................................................................16 BRAZIL - Beadell Resources - GOLD ...............................................................................................................16 CANADA - Selwyn Resources/ Selwyn Chihong Mining Ltd - ZINC/LEAD.........................................................17 CANADA - Encanto Potash Corp - POTASH....................................................................................................17 SOUTH AFRICA - Firestone Energy/Sekoko/ Exxaro - COAL ............................................................................17
  • 2. PERU - Andean American Gold Corp - GOLD/SILVER/COPPER .......................................................................18 MALAWI - Globe Metals & Mining - URANIUM/REE.......................................................................................18 ERITREA - Chalice Gold Mines/ Eritrean National Mining Corp - GOLD..............................................................18 MALI - Ressources Robex - GOLD .................................................................................................................18 AUSTRALIA – FerrAus - IRON ORE .................................................................................................................18 KYRGYZ REPUBLIC - Manas Resources - GOLD...............................................................................................19 AUSTRALIA - Meridian Minerals/ BZ Minerals/ North West Mining and Geology Group Co - ZINC/LEAD...........20 MONGOLIA - Oyu Tolgoi LLC/ Ivanhoe Mines/ Rio Tinto - COPPER/GOLD ......................................................20 CANADA - Imperial Metals Corp - COPPER/GOLD ...........................................................................................20 AUSTRALIA - Atlas Iron/ BHP Billiton Iron Ore - IRON ORE ..............................................................................21 IN DEVELOPMENT..........................................................................................................................................21 SOUTH AFRICA - Pan African/ Phoenix Platinum Mining - PGM .......................................................................21 LESOTHO - Lucara Diamond Corp/ Mothae Diamonds - DIAMONDS ................................................................22 BOTSWANA - Discovery Metals - COPPER/SILVER..........................................................................................22 USA - Formation Metals Inc - RARE EARTHS....................................................................................................23 PERU - Bear Creek Mining Corp - SILVER ........................................................................................................23 CANADA - Mountain Province Diamonds Inc/ De Beers Canada - DIAMOND...................................................23 AUSTRALIA - WPG Resources Ltd - IRON ORE................................................................................................23 ETHOPIA - Nyota Minerals - GOLD .................................................................................................................24 GREECE - European Goldfields - GOLD ..........................................................................................................24 ERITREA -Nevsun Resources - COPPER/GOLD/ZINC/SILVER .........................................................................24 AUSTRALIA - : Reed Resources/ China Nonferrous Metal Industry’s Foreign Engineering and Construction - VANADIUM………………………………………………………………………………………………………………………………………………24 SPAIN - Ormonde Mining - TUNGSTEN ...........................................................................................................25 PANAMA - Minera Panama SA/ Inmet Mining Corp - COPPER.........................................................................25 MALAYSIA/AUSTRALIA - Lynas Corp - RARE EARTHS ....................................................................................25 SOUTH AFRICA - Keaton Energy Holdings Ltd - COAL....................................................................................25 USA – USCorp - GOLD/SILVER .......................................................................................................................26 AUSTRALIA - Gindalbie Metals - IRON ORE.....................................................................................................26 AUSTRALIA/CHINA - Galaxy Resources - LITHIUM…………………………………………………………………………………….26 ARGENTINA - Patagonia Gold - GOLD ............................................................................................................26 SOUTH AFRICA - Jubilee Platinum - PLATINUM..............................................................................................27 SOUTH KOREA - Woulfe Mining Corp - TUNGSTEN/MOLY..............................................................................27 CANADA - Potash One - POTASH..................................................................................................................27 AUSTRALIA - AngloGold Ashanti - GOLD ........................................................................................................28 CONGO - Tiger Resources - COPPER..............................................................................................................28 AUSTRALIA - Centrex Metals - IRON ORE.......................................................................................................29 TURKEY - Anatolia Minerals Development/ Anagold Madencilik Sanayi Ve Ticaret Anonim Sirketi/ Kurudere Madencili - GOLD…………………………………………………………………………………………………………………………………….29 MONGOLIA - Prophecy Resource Corp - COAL...............................................................................................30 AUSTRALIA - Sandfire Resources - COPPER/GOLD.........................................................................................30 RUSSIA - OJSC MMC Norilsk Nickel - COPPER/GOLD/IRON ORE ....................................................................30 ECUADOR - International Minerals Corp - GOLD.............................................................................................31 USA - Energy Fuels - URANIUM/VANADIUM...............................................................................................31 USA - RX Exploration - GOLD/SILVER .............................................................................................................32 USA - Augusta Resource Corp - COPPER .......................................................................................................32 CANADA - Copper Mountain Mining/ Mitsubishi Materials Corp - COPPER........................................................32 KAZAKHSTAN – Kazakhmys - COPPER/GOLD.................................................................................................32 ZAMBIA - Berkeley Mineral Resources (BMR) - LEAD/ZINC .............................................................................32 IVORY COAST - Scorpio Gold Corp - GOLD .....................................................................................................33 INTO PRODUCTION........................................................................................................................................33 IVORY COAST - Randgold Resources - GOLD..................................................................................................33 RUSSIA - Highland Gold Mining Ltd - GOLD.....................................................................................................33 RUSSIA - OJSC MMC Norilsk Nickel - NICKEL/COPPER....................................................................................34 MEXICO - Pan American Goldfields Ltd/ Minera Rio Tinto - GOLD/SILVER .......................................................34 MONGOLIA - Prophecy Resource Corp - COAL...............................................................................................34 AUSTRALIA - Range River Gold - GOLD ..........................................................................................................34 FINLAND - Endomines AB - GOLD..................................................................................................................35 USA - Uranium Energy Corp - URANIUM ........................................................................................................35 EXPANSION....................................................................................................................................................35
  • 3. CHINA - Silvercorp Metals/ Yunxiang Mining Co - GOLD/ZINC/LEAD..............................................................35 ZIMBABWE - New Dawn Mining/ Central African Gold - GOLD.........................................................................36 MONGOLIA - SouthGobi Resources - COAL....................................................................................................36 MOZAMBIQUE - Beacon Hill Resources - COAL .............................................................................................37 MEXICO - Nyrstar/ Farallon Mining- ZINC/COPPER/LEAD/GOLD/SILVER........................................................37 PHILIPPINES - Medusa Mining Ltd - GOLD.......................................................................................................38 USA/CANADA - Stillwater Mining Co – PGM……………………………………………………………………………………………….39 AUSTRALIA - Tanami Gold NL- GOLD.............................................................................................................39 CANADA - North American Palladium- PALLADIUM........................................................................................39 AUSTRALIA - Fortescue Metals Group - GOLD.................................................................................................40 NEW PLAYERS................................................................................................................................................41 CONGO - Cape Lambert Resources/Stirling Minerals Ltd/ DMC Mining Ltd - IRON ORE ....................................41 TURKEY - Anatolia Minerals Development/ Avoca Resources Ltd/ . Alacer Gold Corp - GOLD ...........................41 SOUTH AFRICA - Royal Bafokeng Platinum - PLATINUM.................................................................................41 GHANA - PMI Gold Corp - GOLD.....................................................................................................................41 USA/CANADA - Lexam Explorations/ VG Gold Cor/ Lexam VG Gold Inc - GOLD/URANIUM ...........................42 USA/ARGENTINA/SPAIN - Renaissance Gold - PRECIOUS METALS……………………………………………………………..42 AUSTRALIA - Carabella Resources - COAL…………………………………………………………………………………………………42 MEXICO - Silvermex Resources Ltd/ Genco Resources - SILVER/GOLD..........................................................42 PROJECT PEOPLE............................................................................................................................................43
  • 4. PREFEASIBILITY Country: USA Owner in CANADA SILVER/GOLD/COPPER November 8: Ventana Gold has announced an initial independent NI 43-101 compliant mineral resource estimate and the scoping study results for its wholly owned La Bodega gold project in the California gold district of northern Colombia. The scoping study and initial resource calculation work represent the aggregate technical analysis conducted to-date on a portion of the La Bodega and La Mascota mineralised zones that exist within Ventana‟s La Bodega project. Highlights of the report include: Average annual production for the first six full years of 347,000 gold equivalent (Au Eq) oz, which is comprised of 301,000 oz of gold, 1.4 Moz of silver and 6.9 Mlb of copper Average cash costs of $322/oz of gold for the first six full years, net of silver and copper by-product credits Pre-tax IRR of 34% Estimated start-up capital cost of $297 million Pre-tax NPV (NPV)* (5%) of $807 million Inferred mineral resource of 3.5 Moz of gold, 19.2 Moz of silver and 84.6 Mlb of copper mine life of 14 years at a planned production rate of up to 7,500 t/day Additional opportunities: resource expansion from ongoing drilling with surface exploration drills focusing on La Baja, Las Mercedes, Aserradero, and the gap area between the La Bodega and La Mascota zones resource expansion from underground drilling to explore deep extensions of the ore body past the current depth of the mineral resource Improved mineral recovery from metallurgical optimisation work conducted at a site-based pilot processing plant Increased production from further exploration and development of the known areas of mineralisation Stephen Orr, President and Chief Executive Officer of Ventana Gold: "The scoping study results and resource estimate for La Bodega demonstrate the robust economics and value this project has to offer. These results confirm our belief that the La Bodega project is one of the most exciting emerging gold deposits in South America. Concurrent with on-going exploration efforts to upgrade and expand the resource, we will now focus on completion of the feasibility to bring Ventana closer to becoming Colombia s leading precious metals producer. Country: BOTSWANA Owner in CANADA COPPER/SILVER/MOLY November 8: Hana Mining has announced final results on the first locked cycle tests on sulphide material from the Banana zone at the Ghanzi project. The results show that the copper-silver mineralisation at the Banana Zone sulphide mineralisation is highly amenable to conventional flotation recovery technology. Ghanzi project - Banana Zone Locked Cycle Test-1 Results Concentrate Grade %, g/t Recovery % Mass Cu Ag Mo Cu Ag Mo (%) (%) (g/t) (%) (%) (%) (%) Re-Cleaner Conc. 3.29 43.55 853.57 0.73 92.75 80.58 78.28 Cleaner-scav. Tails 10.21 0.05 7.63 0.01 0.33 2.23 1.89 Rougher Tails 86.50 0.12 6.93 0.01 6.92 17.18 19.83 Head 100.00 1.55 34.87 0.03 100.00 100.00 100.00 Highlights of recent metallurgical results: Initial locked cycled tests, at a coarse grind size of 150 microns, show a copper recovery of 92.75% and a silver recovery of 80.58%. The tests also show a final concentrate grade of 43.55% copper, 853.57 g/t silver and 0.73% molybdenum. Molybdenum recoveries in the copper concentrate were highly encouraging with an average recovery of 78.28%. Metallurgical work on applying conventional flotation technology on oxide and transitional material from the Banana Zone and sulphide material from the Chalcocite Zone is ongoing. Given the encouraging recoveries and concentrate grades of the molybdenum, Hana will look at the feasibility of producing a saleable molybdenum concentrate. The test data will be used to develop a process flow sheet, to identify further testing requirements, and to develop capital and operating costs for the PEA - which is scheduled to be completed by the end of 2010. Banana Zone Sulphide Composite Zones Hole-ID From (m) To (m) Total (m) New Discovery HA-99-DM 93 120 27 New Discovery HA-100-DM 76 150 74 South Limb HA-103-DM 115 122 7 Northeast Fold HA-105-DM 148 160 12 Total 120 In the Banana Zone, sulphide composite bornite and chalcocite represent 95% of the copper mineralisation. Approximately 80% of the copper minerals are liberated at a coarse grind size of 150 microns, while copper minerals which are not liberated are associated with hard silicates and phyllosilicates.
  • 5. Initial locked cycled metallurgical tests on the sulphides from the Banana Zone show that the mineralised material is highly amenable to conventional flotation methods resulting in a copper recovery of 92.75%, and a silver recovery of 80.58%. The testing also showed that conventional flotation can produce a relatively high grade concentrate, with average grades of 43.55% copper and 853.57 g/t silver. For comparison, most conventional copper sulphide mining and milling operations produce a product with concentrate grades of 25% to 30% copper. Highly encouraging results were also received on the contained molybdenum which showed a molybdenum recovery of 78.28% with the bulk concentrate grade of 0.73% molybdenum. Given the encouraging molybdenum results, Hana will move forward with additional work to evaluate the viability of producing a separate molybdenum concentrate. Results are not expected to be available until sometime in 2011. The following engineering and consultation activities are ongoing to fulfil the goal of completion of a PEA by Q4 2010: Preliminary mine open pit modelling has been carried out using the April 2010 resource. A revised model will be completed after the 2010 drilling has been incorporated; A NI 43-101 compliant resource estimate for the Banana and Chalcocite Zones is expected to be released soon; Metallurgical (column leaching) results are expected to be available by the end of the year; The Ghanzi project is located in the centre of the Kalahari Copper Belt in north western Botswana. Hana Mining‟s most recent NI 43-101 compliant resource estimate for the Ghanzi project has an inferred mineral resource of 3.9 billion lb of copper and 62.1 Moz of silver from 177 Mt. This mineral resource estimate consists of 73.5 Mt grading 1.5% Cu and 19 g/t Ag in the Banana Zone, 13.4 Mt grading 1.7% Cu and 12 g/t Ag in Zone 5, 6.3 Mt grading 1.5% Cu and 7 g/t Ag in Zone 6; all at a cut-off grade of 0.75% Cu. Also included is 83.6 Mt grading 0.46% Cu and 3.6 g/t Ag at a cut-off grade of 0.30% in the Chalcocite Zone. Country: REPUBLIC OF CONGO Owner in AUSTRALIA IRON ORE November 9: Cape Lambert Resources announces Davis Tube Recovery (DTR) results from magnetite mineralisation at its 80% owned Mayoko iron ore project in the Republic of Congo (ROC). The company has previously advised the market of the results of the Phase 1 drill program (18 diamond holes for 3,687 m) (ASX Announcement, September 14 2010), which included magnetite banded iron formation (BIF) occurring in two lenses varying from 50 to 200 m thick and extending to more than 300 m below surface over the full 7 km strike length of the Mount Lekoumou and Mount Mipoundi prospects. The company has received DTR results for six composite samples representing weathered BIF and Magnetite BIF. DTR testing has been conducted at two 80% passing grind sizes, being 73 and 67 micron. The DTR results show the Magnetite BIF at Mayoko can be beneficiated into a concentrate grading 68-70% Fe, 3-5% SiO2, 0.2-0.4% Al2O3, <0.05% S and 0.006-0.02% P with a mass recovery to concentrate of 40-45%. This is a high-grade concentrate, which may be suitable as a direct reduction feed stock. Executive Chairman, Tony Sage: "whilst the immediate development plan for Mayoko was based on the DSO cap and Enriched BIF, these results demonstrate the underlying magnetite mineralisation also has significant value and would underpin a substantial project mine life". Mayoko has the potential to be a world class iron ore deposit, with an exploration target size of up to 1,000 Mt of predominantly itabirite iron mineralisation. It is located in the southwest region of the ROC and is 2.2 km from the bulk haulage rail line which connects Mayoko to the wharf of Pointe Noire. Unlike many other resource projects operating in West Africa, the Mayoko project has secured crucial access to both rail and port facilities for the transport of iron ore from the project to market. This capitalisation of local infrastructure gives the Mayoko project significant advantage over other projects in the province. Country: AUSTRALIA Owner in AUSTRALIA GOLD November 9: ATW Gold Corp has provided an update on the company's Gullewa gold project (Gullewa) in Western Australia. The company's partner, Mutiny Gold Ltd recently completed its drill program on the Gullewa gold project's Deflector deposit. The program consisted of 41 holes totalling 3,461 m of RC drilling and was completed to upgrade the existing resource by converting part of the Indicated resource to a Measured resource. Assay results are expected by late November 2010 and the resource upgrade is expected to be completed by mid-December 2010. Mutiny's work on the Deflector Scoping study is continuing and expected to be complete before the end of the year. Gullewa is located 450 km north of Perth, in the Yalgoo mineral fields of Western Australia. Gullewa is a 550 km2 property that hosts several gold deposits of various size and grade, the most significant being the Deflector gold-copper deposit which contains total resources of 3.3 Mt @ 5.4 g/t Au and 0.76% Cu for 560,000 oz Au and 25,000 t Cu of which Measured and Indicated resources total 1.7 Mt @ 4.7 g/t Au and 1.03% Cu for 230,000 oz of Au and 17,000 t of Cu. Category T Au (g/t) Au (oz) Cu (%) Cu (t) Ag (g/t) Ag (oz) Measured Indicated Measured and Indicated Inferred Totals 535,000 1,200,000 1,700,000 1,600,000 3,300,000 3.9 4.3 4.2 6.5 5.4 67,000 160,000 230,000 330,000 560,000 1.18 0.96 1.03 0.48 0.76 6,300 11,000 17,000 8,000 25,000 8.0 6.3 6.9 3.0 5.2 140,000 240,000 380,000 200,000 580,000 Mutiny plans to commence production with an open pit mining operation at the Deflector deposit, followed by underground mining after two years. The payback period from the open pit operations is estimated to be eight months based on previous mine studies. It is intended that the ore will be processed at the existing Gullewa mill, following modifications to allow the treatment of copper- gold ores. Mutiny also plans to process gold concentrate from its White Well deposit near Cue at the Gullewa mill.
  • 6. Country: CANADA Owner in AUSTRALIA COAL November 10: Coalspur Mines announces a coal resource upgrade of 297.1 Mt on its Vista coal project (VCP) in Alberta, Canada ahead of the release of the company‟s PFS on the project. This increases the total coal resource to 1,370 Mt. Managing Director and CEO, Gene Wusaty: “The upgrade is a further testament to the size and quality of the Vista coal project and places the resource base of Coalspur in the top tier of emerging global coal developers. This upgraded resource will be incorporated into the final mine planning being conducted on the project in the PFS and we are excited about the potential of developing one of the largest export coal project in North America”. Table 1: JORC Coal Resources The VCP upgrade estimate has been based on the following: Addition of recently obtained historical drill hole information into the geological database Addition of the Silkstone seam which underlies the McPherson Seam in the central part of the deposit. The Silkstone seam historical drilling indicates three coal plies with an aggregate thickness of up to 4.5m Reinterpretation and modelling of the merged boundary areas of the Hinton East, Hinton West, Z-Block and McLeod River North leases which now form the VCP Reinterpretation of all coal seam splits and partings. The resource estimate has been completed in accordance with the JORC Code (2004) and NI 43-101. The company‟s coal resources now total over 1,370 Mt of low sulphur, high volatile bituminous, export quality thermal coal with the VCP resource accounting for 1,200 Mt and the Vista South coal project accounting for 168.3 Mt. Further resource drilling programs are currently underway to expand the resource over the large 32,000 ha coal lease position in the Hinton region of West Central Alberta. The VCP resource of 1,202.8 Mt is comprised of Measured resources of 588.9 Mt, Indicated resources of 331.6 Mt, and Inferred resources of 282.3 Mt. The resource is defined from four coal seams (Val D‟or, McLeod, McPherson and Silkstone) that have a cumulative coal thickness of approximately 28 m. The four coal seams which comprise the coal resource have a dip to the northeast ranging from 4–15o , which has resulted in the resource being defined within a10.11:1 strip ratio pit (modelled using a 20:1 incremental cut-off strip ratio). Included into the VCP geological model are 15 rotary and diamond drill holes (totalling 6,580 m) previously drilled by various operators between 1981 and 2008, comprising two diamond drill holes (totalling 118 m) and 13 rotary drill holes (totalling 6,462 m). The modelled pit uses 45° walls and was set up such that only coal within the company‟s leases is mined and uses a minimum mineable seam thickness of 0.5 m and a minimum removable parting thickness of 0.3 m (partings less than 0.3m are included with the coal seam). Coal quality characteristics are based upon drilling and washability studies completed to date. Expected yields are ~ 54% which produces a low sulphur, 5,800 kcal/kg GAR product which is currently in high demand in the Asia Pacific export thermal coal market. Country: PERU Owner in PERU GOLD/COPPER/MOLY/SILVER November 10: Cía. de Minas Buenaventura, Peru's top precious metals producer, plans to bring the porphyry copper/molybdenum/gold/silver Cerro Castrejón to prefeasibility, MinerAndina.e reports. It is located 5 km from the firm's new La Zanja gold/silver mine. Cerro Castrejon has been one of Minas Buenaventura's main exploration targets in the third quarter of 2010, with $0.9 million invested from a total of $7.1 million allocated for exploration efforts company-wide during that period. MinerAndina.e says "In this manner, Buenaventura increases its inventory of base metal resources in the Cajamarca region including those of Castrejon, and prepares itself for the exploitation of sulphides in Minas Conga and its symbolic participation in Yanacocha by the end of 2014 or beginning of 2015. It also has plans to bring the La Cueva and Cerro Campana targets of copper/molybdenum sulphides to prefeasibility stage, a matter that corresponds to the jurisdiction of La Zanja's operator, Minera La Zanja." Cerro Castrejon has an Inferred primary sulphide resource of 48 Mt @ 0.33% Cu and 0.13% Mo, in addition to 49,000 oz of gold in mixed oxides. The project, which covers an area of 32,070 ha, is located within the concession area of Minera La Zanja (53.06% Buenaventura and 46.94% Newmont Mining, in the Pulan district, Santa Cruz de Succhabamba province, Cajamarca department. La Zanja started production this year and should achieve an average annual production of 100,000 oz of gold from 2011, during an estimated mine life of five years. There are two oxide gold deposits: San Pedro Sur and Pampa Verde with reserves of 400,000 oz and 309,000 oz, respectively. Besides La Zanja, Minas Buenaventura also has a majority stake in Soc Minera El Brocal and CEDIMIN, and is a minority shareholder in Minera Yanacocha (43.65%) and in Soc Minera Cerro Verde (19.26%), ranked third among Peru's copper producers. Buenaventura's mines in operation are: Orcopampa, Poracota, Uchucchacua, Antapite, Julcani and Recuperada. The company's net income was $174.1 million, according to its third quarter 2010 report which was presented last month. This represents a climb of 17% compared to that of the same period of last year ($ 148.5 million), due mainly to an increase of profits by 54% in its operations in spite of a reduction of 29% in the contribution made by Yanacocha. The company's net sales were around $265.9 million, an increase of 24% with respect to the same quarter of last year. Income from royalties, however, went down by 14%, to some $14 million. Country: NAMIBIA Owner in AUSTRALIA PHOSPHATE November 11: Joint venture partners Minemakers Ltd, 42.5%, Union Resources, 42.5%, and Tungeni Investments,15%, are pleased to announce the results of the scoping study by the joint venture company, Namibian Marine Phosphate (NMP) for the Sandpiper/Meob Marine phosphate project. Operating costs have been estimated at $57.76/t FOB Walvis Bay for an operation on beneficiated material, ramping up to 3 Mt/y and start-up capital costs are estimated as $144 million. The beneficiated material is indicated to be suitable for marketing to fertiliser producers and for the manufacturer of phosphoric acid by the joint venture.
  • 7. Indicated Category: 73.9 million dry t at 20.57% P2O5 Inferred Category: 1,507 million dry t at 18.7% P2O5 Total 1,581 million dry t at 18.8% P2O5 The JV considers there is a reasonable exploration target of an additional 1,000 - 2,000 Mt in the grade range of 18 – 21% P2O5. The scoping study incorporates a ramp up to 3 Mt/y of beneficiated product by year 3 of operation. The economics show potential for an operation lasting over a century. The financial highlights from the scoping study base case study over the first 25 years of project operation are summarised as follows: scoping study base case Financial Model 25 years Saleable Rock phosphate 3 Mt/y Cash Operating Costs, FOB Walvis Bay $57.76/t Capital Costs (Years 1-3) $144M Capital Costs per tonne $7.65.t NPV @ 10% discount rate $312M NPV @ 15% discount rate $133M IRR 25.5% Processing test work has indicated that through conventional sizing, screening and attrition processes the mined material can be concentrated to 28% P2O5 and, in addition, attrition test work also showed a partial removal of the contaminant gangue including iron (Fe), magnesium (Mg), aluminium (Al) and insoluble matter into the slimes. Chemical test work completed to date shows that the Namibian rock concentrate can be used to make either Phosphoric Acid or Single Super phosphate (SSP). The positive results of the scoping study show the project‟s economics and long life production potential and indicate that NMP and its shareholders should progress the project rapidly through to completion of a feasibility study beginning at the start of 2011.; Country: KYRGYZ REPUBLIC Owner in UK GOLD/COPPER/MOLY November 11: Orsu Metals Corp has announced the positive results of a scoping study for the Tadybulak gold-copper- molybdenum porphyry deposit at its Talas joint venture project in the Kyrgyz Republic. Gold Fields, through its subsidiary Gold Fields Orogen Holding, has a 60% interest in the Talas joint venture company, whilst Orsu retains a 40% interest in the Talas project. Gold Fields is the project manager. The Taldybulak scoping study establishes key design criteria for an open pit mine scenario with a 15 Mt/y processing facility for average annual recovery of 242,000 oz gold and 137,600 (dry) t of copper concentrate and 1,880 (dry) t of molybdenum concentrate via conventional communition and floatation process flow sheets at estimated initial capital expenditures of about $516 million. Taldybulak has been the primary focus of exploration and mineral resource development within the Talas project licence area. The Talas project is located 250 km west of the Kyrgyz capital of Bishkek. The SAMREC Code resource contains 127 Mt in the indicated category, which is comprised of 2.6 Moz gold at 0.64 g/t, 477 Mlb copper at 0.17%, and 29.4 Mlb molybdenum at 0.01%, and 296 Mt in the Inferred category, which is comprised of 3.71 Moz gold at 0.40 g/t, 1,098 Mlb copper at 0.17%, and 69.2 Mlb molybdenum at 0.01%. Preliminary metallurgical test work indicated that the recovery of gold, copper and molybdenum should be possible using a conventional communition and flotation process. Based on metallurgical test work results, a conceptual process flow sheet has been developed consisting of crushing, grinding and bulk flotation to produce a gold-copper-molybdenum concentrate. The concentrate would then undergo a further flotation stage to produce both a copper-gold concentrate and a molybdenum concentrate. In this scenario some copper must be present in order to recover any other elements, therefore any Standard Mining Unit containing some gold but zero copper would not be profitable to treat. Due to the polymetallic nature of the Taldybulak ores, material that is profitable to treat is not simply based on a single element cut-off grade. Country: SIERRA LEONE Owner in AUSTRALIA IRON ORE November 12: Cape Lambert Resources continues to advance its wholly owned Marampa iron ore project in Sierra Leone, West Africa, towards a possible late 2012 production start-up, with the company announcing a maiden JORC compliant Inferred mineral resource at the Marampa project of 197 Mt at 28.5% Fe (above a 15% Fe lower cut-off). The Marampa project is a hematite iron ore project uniquely leveraged to a rapid and low risk pathway to production, via existing rail and port infrastructure that is currently being refurbished (refer ASX announcements 6 April 2010 and 15 October 2010). Tony Sage, Executive Chairman of Cape Lambert: “We have made rapid progress in the past twelve months and with five rigs now drilling at site, we expect to accelerate the timing of our first resource update, scheduled for the March 2011 quarter, at which time the bulk of the rail and port infrastructure refurbishment associated with the project will be completed.” “With this substantial maiden JORC resource complete, we will now be able to finalise a scoping study looking at a proposed initial development rate of 2-5 Mt/y, from late 2012, with the maiden JORC resource providing for a mine life in the order of 20 years at 2 Mt/y concentrate production, with significant resource growth to follow.” “In addition, the metallurgical test work has shown that the hematite resource can be upgraded to a sinter fines or blast furnace pellet feed product, at a coarse grind size using mature, low risk magnetic separation,” Country: SWEDEN Owner in CANADA RARE EARTH ELEMENTS November 16: Tasman Metals has begun metallurgical testing on material from its 100% owned Norra Karr heavy rare earth element (REE) – zirconium (Zr) project in Sweden. SGS Minerals Services has been contracted to undertake a program of advanced mineralogical characterisation, concentrate preparation and hydrometallurgical testing on a 100 kg sample. This metallurgical study is the first comprehensive work to be undertaken on the Norra Karr project, and is anticipated to generate a first phase of reportable results during the first quarter 2011.
  • 8. Tasman‟s 2010 drilling program at Norra Karr was very successful, intersecting REE – Zr mineralization in all 26 drill holes on five sections over 800 m strike length to a vertical depth of approximately 110 m. Numerous holes were terminated in mineralisation, and all sections remain open at depth. Tasman has retained Pincock Allen Holt to provide a first time NI 43-101 compliant mineral resource estimate on the Norra Karr project, which is expected during November 2010. Mineralogical characterisation will focus on identifying the presence and abundance of REE bearing minerals using Qemscan and electron microprobe technology. REE bearing minerals identified to date include eudialyte plus lesser britholite, rosenbuschite and mosandrite. Metallurgical test work shall focus on the preparation of an REE mineral concentrate applying gravity, magnetic, electromagnetic and flotation procedures with a view to determining the most efficient and effective method for future processing. The REE mineral concentrate will then be subjected to various hydrometallurgical techniques, to identify possible extraction methods. SGS Minerals Services was chosen as the preferred research partner for this work due to its “strong global reputation and extensive experience in REE processing, including recent work on projects with similar processing characteristics to Norra Karr,” Tasman explains. The company shall be supported by Les Heymann, a highly experienced consulting metallurgist with extensive experience in REE processing including building and operating REE plants within China. “The start of metallurgical testing is a significant milestone for both Tasman and the Norra Karr project” said Mark Saxon, Tasman‟s President & CEO. “Our senior REE consultant Dr Tony Mariano has completed the first phase of mineral identification and bench scale concentrate preparation, which encouraged us to advance to the next stage. We now look forward to learning more from Les Heymann and the team at SGS Minerals Services. Both the imminent NI 43-101 compliant resource statement and the metallurgical results will put Norra Karr on the map as a potential REE source within Europe.” Norra Karr demonstrates a range of features that may facilitate near term development: Excellent infrastructure, with roads, power and water at site and active rail and port facilities in close proximity Sweden is a mining friendly jurisdiction. Large mines operate within 90 km of the site, providing a skilled local work force and mining related contractors Numerous intersections of mineralisation are greater than 100 m true thickness, which begin at surface and remain open at depth, suggesting a significant mineralised volume plus amenability to shallow open pit mining An unusually high proportion of high value heavy rare earth oxides (HREO). Using a 0.4% TREO cutoff on data from Tasman‟s 26 drill holes, the weighted average of HREO/TREO exceeds 50%. An unusually high proportion of yttrium and dysprosium, two rare earth elements in scarce supply with strong demand. Data from Tasman‟s drilling show Dy2O3/TREO averages 4.8% and Y2O3/TREO averages 34.6% Work by Dr Tony Mariano suggest REE‟s are concentrated in one mineral only, allowing focused metallurgical research and potentially simplified processing Norra Karr is unusually low in uranium and thorium relative to peer company projects. The site will not require any special permitting or monitoring for radioactivity, and transport of concentrates will not require radioactive permitting. Uranium and thorium average 14 ppm and 8 ppm respectively. Sweden is the home of REEs, many of which were first discovered in a quarry in the village of Ytterby, near Stockholm. REE consumption is growing, being essential in the production of hybrid/electric cars, solar panels, wind turbines, compact fluorescent lighting, high-energy magnets, mobile phones and computers. Tasman hold numerous claims and claim applications across mining friendly regions in Scandinavia with potential for REEs, and is well placed as the European Union is actively supporting policies to promote the domestic supply of REE‟s to secure high-tech industry. Country: BURKINA FASO Owner in CANADA GOLD November 16: Orezone Gold Corp has started an extensive 120,000 m drill program to further infill and expand gold resources at its wholly owned Bomboré project in Burkina Faso, West Africa. Indicated resources of 1.6 Moz and Inferred resources of 1.9 Moz grading an average of 0.9 g/t are contained within optimised open pit shells using current economic and technical parameters. Over 80% of the resources are located in the top 80 m from surface. Since drilling only averages 60 m deep to date, there is immediate potential to add more resources by drilling beneath and along strike of the current resources. The first of several planned core rigs has recently started drilling which will focus on expanding and testing the continuity of the sulphide resources at depths between 60 to 120 m. The first results from the new drilling are expected to be reported before year end. To date, the company has secured three core rigs and one RC rig and additional core rigs will be required to complete the 120,000 m program. In January 2011 the RC rig is expected to commence an infill and expansion drill program focused on the surface oxide resources in conjunction with the deeper sulphide core drilling program. To assist with the expansion drill program of the surface oxide resources, the company has just completed a high-resolution airborne geophysical survey over the entire Bomboré gold project. A PEA of the project is already underway to study both heap leach and CIL plant scenarios and is expected to be completed in Q1 2011. Country: AUSTRALIA Owner in AUSTRALIA COPPER/GOLD November 17: Syndicated Metals Ltd has completed a substantial upgrade of the previous mineral resource estimates for its Barbara copper-gold deposit contained within the broader Mount Remarkable project area in the Mount Isa region of Northwest Queensland. Resources By Classification - Copper Zone - 1% Cu cut-off Category T Cu % Au g/t Ag g/t Co ppm *Cueq% Cu t Au oz Ag oz Co t *CuEq t Indicated 3,778,00 0 1.6 0.2 2.7 265 1.8 59,000 18,000 328,000 1,000 68,000 Inferred 1,552,00 0 1.1 0.1 2.0 272 1.3 17,000 6,000 102,000 400 20,000 Total 5,331,00 0 1.4 0.1 2.5 267 1.7 76,000 25,000 430,000 1,400 89,000
  • 9. Category T Cu % Au g/t Ag g/t Co ppm *Cueq% Cu t Au oz Ag oz Co t *CuEq t Indicated 1,913,000 2.4 0.2 4.1 366 2.7 45,000 14,000 249,000 700 52,000 Inferred 686,000 1.5 0.2 2.9 297 1.8 10,000 4,000 64,000 200 12,000 Total 2,598,000 2.1 0.2 3.7 348 2.5 56,000 17,000 312,000 900 64,000 Approximately 2% of the resource has been classified as either oxide or transitional material. Preliminary metallurgical studies have indicated that the sulphide copper mineralisation at Barbara is amenable to conventional flotation and extraction processes with acceptable recovery of copper to concentrate and concentrate grade being achieved. The near surface copper mineralisation could be amenable to shallow, low-cost open pit mining with the higher grade material below the limits of an open pit potentially recoverable by underground mining methods. Syndicated listed on the ASX in December 2007 and has since generated a significant metal resource inventory in the Mount Isa region comprising its interests in the Barbara (copper-gold) and Kalman South (molybdenum-rhenium-copper-gold) deposits. The Mount Remarkable project (including the Barbara copper deposit) comprises a group of mostly contiguous tenements covering over 1100 square km. The project tenements are located about 60 km northeast of Mount Isa within close proximity to existing infrastructure and are considered prospective for copper-gold and sediment hosted lead-zinc-silver style mineralisation. Historical uranium prospects are also present within the tenements. Country: CANADA Owner in CANADA TIN/INDIUM/POLYMETALLIC November 17: Avalon Rare Metals has provided a progress report on its 2010 work programs on the East Kemptville tin- indium project. These programs involved 1) continuing evaluation of the development potential of historical tin resources on the company's Special Licence at the past-producing East Kemptville mine and 2) a grass-roots exploration program on the company's neighbouring Ike's Ridge tin indium prospect. A work program proposal was submitted to the government of Nova Scotia and Rio Algom, the holder of surface tenure at the East Kemptville mine site, to access the site to carry out sampling. In the meantime, the company applied for, and received, a 12 month extension of time to complete the expenditure obligations under the Special Licence which total about $1.5 million. A $500,000 grass roots exploration program was carried out in 2010 program to test targets for additional tin / rare metal resources on the company's 100% owned, 12,520 acre Ikes Ridge property, neighbouring the company's East Kemptville Special Licence. Three promising target areas, Gardners Meadow (GM), Ikes Ridge (IK) and the Northeast Extension (NE) Area were identified from regional compilation, prospecting and geochemical sampling work. All are located within 6 km of the East Kemptville mine property. The most encouraging results were obtained from the Gardners Meadow Area where coincident geochemical and geophysical targets returned several 0.10 to 3.00 m wide zones of highly anomalous, polymetallic, tin-indium mineralisation associated with weakly developed zones of quartz-sulphide veining and alteration in meta-sedimentary rocks. The best individual assay returned 0.26% tin. 0.96% zinc, 0.12% copper, 3 g/t silver and 22 ppm indium across 1.75 m. Narrow, semi-massive sulphide mineralisation (mainly pyrrhotite) encountered in the drilling explains the IP responses. The model was to test for a mineralised East Kemptville style granite at depth but no definitive evidence for such a body was observed, although it could still exist at greater depths. The Ikes Ridge area produced similar narrow intersections in two of the three holes, ranging from 0.3 to 0.8 m assaying 0.12 to 0.26% tin associated with greisen style sulphide mineralisation at the granite sedimentary contact. The third hole at Ikes Ridge intersected a barren shear zone. Three drill holes, NE-10-01 to 03, were completed to the northeast of the East Kemptville mine, referred to as the Northeast Extension area. The holes were targeted on IP and geochemical anomalies on trend with the known deposits. No significant tin mineralisation was intersected in these holes, but hole NE-10-03 did encountered numerous low grade zinc intercepts including 0.121% Zn over 2.2m and 0.255% Zn over 1.1m. This suggests potential for additional East Kemptville style mineralisation in the area. There are no immediate plans for further drilling on the Ike's Ridge property while additional compilation and target definition work is completed. Country: LIBERIA Owner in UK GOLD November 17: African Aura Mining has announced the results of an independent mineral resource estimate for the company's wholly owned New Liberty gold project located in western Liberia. The PEA of the New Liberty mine is expected to be complete by the end of 2010. Luis da Silva, Chief Executive of African Aura:"The resource estimate offers the opportunity to achieve our objective of developing an open pit gold mine with the potential to produce roughly 100,000 oz/y. We are particularly pleased with the much higher grade of 4.17 g/t for the 751,000 oz in the indicated category, all of which are within an open pit depth of 200 m from surface. New Liberty remains open at depth and we anticipate that substantial further resources may be defined by deeper drilling in future.” The total resource estimate of 1.51 Moz of gold grading 3.78 g/t is comprised of 5.59 Mt grading 4.17 g/t (for 751,000 oz) in the indicated category and 7.04 Mt grading 3.40 g/t (for 762,000 oz) in the inferred category. The indicated resource has been projected to an approximate depth of 200 m below surface. The inferred resource remains open down dip and open along strike. New Liberty NI 43-101 mineral resources Zone Indicated Inferred T Au T Au (Kt) (g/t) (KOz) (Kt) (g/t) (KOz) Larjor 1637 4.37 230 2109 3.5 234 Latiff 1080 5.03 175 380 4.2 51 Kinjor 1449 4.26 198 2310 3.8 280 Marvoe 1433 3.21 148 2230 2.8 198 Total 5599 4.17 751 7040 3.4 762
  • 10. The results of statistical analysis demonstrated that the mineralised zones have a range of mean grades (from 1.61g/t Au to 6.47g/t Au), but the corresponding coefficients of variation fall within a relatively narrow window (1.18 -- 1.53). Some of the gold may be recoverable by a gravity method, suggesting potential for pre-concentration of the sample prior to leaching. The 2006 work confirmed the responsiveness to gravity recovery, suggesting that greater than 50% gravity recovery is achievable, and an overall recovery of 93% can be obtained by a combination of gravity and carbon-in-leach (CIL) processes. The best drill intersect from New Liberty is currently 8.45 g/t Au over 37m from 55m depth and the deposit, which crops out at surface, remains open at depth. Metallurgical testwork undertaken by the company on drill core from New Liberty has indicated a non-refractory ore with excellent expected recoveries of up to 93%. New Liberty is one of a series of gold deposits, including the Ndablama and Weaju prospects, located within the company's 457km2 'Class A' 25 year renewable Mining Licence. Country: REPUBLIC OF CONGO Owner in REPUBLIC OF CONGO IRON ORE November 18: Zanaga Iron Ore has announced a placing of new and existing shares which has raised gross proceeds of £62.1 million ($100 million). The placing of the shares will raise £31.06 million ($50 million), before expenses. Zanaga Iron Ore is focused on the management, development and construction of a world class iron ore project, located in the south west of the Republic of Congo (Congo Brazzaville). Zanaga owns, through its wholly owned subsidiary Jumelles Ltd, 100% of Mining Project Development Congo S.A.U. which owns two exclusive exploration licences, each covering 500 km², the Zanaga-Madzoumou Exploration Licence and the Zanaga-Bambama Exploration Licence (Zanaga Exploration Licences). The company has a large scale mineral resource of approximately 3,340 Mt at an average grade of 32.8% FeT. This is comprised of 843 Mt of haematitic itabirite with an average grade of 38.5% FeT and 2,490 Mt of magnetite with an average grade of 30.82% Fe. This resource has been defined as a result of drilling that has taken place on only 25 km of an indicated 47 km strike of magnetite mineralisation. The Zanaga project has targeted annual output at 45 Mt/y of iron ore concentrate once full capacity is reached. Based on metallurgical test work to date, the company is targeting production of two high quality products, namely: a 65% Fe sinter product and a 67% Fe concentrate product, both with low deleterious elements. The company has reached an advanced stage of exploration with a prefeasibility study (PFS) on the Zanaga project expected to be finalised by the end of Q1 2011. Following completion of the PFS, the company aims to commence a bankable study (FS) before moving towards construction and production. FEASIBILITY STAGE Country: PERU Owner in CHINA IRON ORE November 5: Jinzhao Mining Peru, operator of the Pampa de Pongo iron project, located in the Arequipa region, plans to drill about 50 holes (40,000 m), to further delineate the resource, Deputy General Manager, Xiaouang Tang, told MinerAndina.e. This drilling campaign will also allow for the gathering of information necessary to conclude prefeasibility and feasibility studies in 2011. This project is considered the second largest of its kind in Peru, after the Apurimac project. Apurimac is operated by the junior miner Strike Resources in the Apurímac region. "The semi-detailed Environmental Impact Assessment approved by the Ministry of Energy and Mines gives us the permit to drill up to 100 holes in Pampa de Pongo, but we will only carry out 50. What we are doing in Pampa de Pongo is a study that combines the prefeasibility and the feasibility," stated Tang, who added that Jinzhao will start the EIA following the completion of the feasibility study. The EIA is scheduled for completion by 2012. He said that Jinzhao has been optimising the preliminary economic assessment which was developed in 2008 by the previous project operator, junior firm Cardero Resources. He stated that the Chinese company holds a different technical opinion than that of Cardero in that study. For example, the benefit of implementing an open-pit operation rather than a large-scale underground mining operation as was proposed by the Canadian company. The Chinese company is also contemplating to reduce the capacity of the project. Cardero proposed a production of 24 Mt/y of concentrates, but Jinzhao deems it more feasible to produce 10 Mt. The Pampa de Pongo project is located in the district of Bella Union, province of Caraveli, Arequipa región, over an effective area of 3,019 ha. This iron oxide/copper/gold (IOCG) type deposit was discovered by Rio Tinto in 1994; acquired by Cardero Resources in 2008 and subsequently sold to the Chinese mining company, Nanjinzhao Group Co, the parent company of Jinzhao Mining Peru, for $200 million. Country: TANZANIA Owner in AUSTRALIA COAL November 6: Atomic Resources has entered into an agreement to raise A$5 million in a placement. The subscriber to the placement is Aspac Mining, an entity owned and managed by Graeme Robertson. As a term of the placement, and in recognition of his extensive coal industry experience, the board of Atomic Resources has invited Robertson to accept an appointment as a non executive chairman of the company. He has been a very strong supporter of the company and its plans to develop a major thermal coal mining operation in the southwest region of Tanzania. He has been responsible for pioneering and managing world class mining, energy and transport infrastructure operations throughout Africa, Australia and the Asia- Pacific region. He was CEO and developer of the largest open-pit coal mine in the Southern Hemisphere, PT Adaro Indonesia, and is a former Managing Director of New Hope Corp (1987 – 2005). In 2010, Robertson was awarded the Coaltrans Lifetime Achievement Award for his contribution to the coal industry. The funds raised will be used to fund a near-surface drilling and exploration program at the Mbuyura/Mkapa and Mbalawala coalfields in the Ngaka Coal Basin, commencing in December 2010 and will enable Atomic to commence small-scale coal mining before the end of this calendar year. The Ngaka thermal coal project is Atomic Resources‟ most advanced and exciting development project. The Ngaka coalfields are situated in the resource-rich western minerals province of Tanzania, approximately 600 km from the major port city of Dar Es Salaam.
  • 11. Atomic, through its 100% owned subsidiary Pacific Corporation East Africa (PCEA) has entered into a joint venture with the Tanzanian Government (Tancoal - PCEA 70%/Tanzanian Government 30%) to conduct a Bankable Feasibility Study into the development of a thermal coal mining operation at Ngaka and the development of a 400 MW power station, using proven clean coal gasification technology, at the Ngaka mine site. The electricity produced by the proposed power station at Ngaka will increase Tanzania‟s national power supply by approximately 40% and is considered to be a vitally important “nation building project” by the Tanzanian Government. Ngaka has a JORC-compliant resource of 179 Mt of thermal coal. Additional coal resources may be identified in the future through further exploration at Ngaka and at the recently granted concessions in the nearby Mbuyura and Mkapa coal fields. Initial coal production of 1 Mt/y for the first two to three years will increase to 2 Mt/y once the power station becomes operational. Coal that is not sold to the power station will be available for sale to other customers in Tanzania and for export to markets in Africa and Asia. Mining at Ngaka is expected to commence within 12 months of the completion of the BFS. The BFS started in May 2009 and is expected to be completed soon. It will focus on three strategic components: Mining of thermal coal for on-site power generation and export Development and project financing for a coal gasification plant and 400Mw power station using coal gasification technology Development of a private public partnership with TANESCO (the Tanzanian Governments electrical authority) for the construction of power transmission lines to connect the Ngaka project to the Tanzanian power grid. Country: AUSTRALIA Owner in AUSTRALIA COAL WorleyParsons and Ausenco have won a significant contract to manage the delivery of Hancock Coal's A$7.5 billion Alpha Coal Project in Queensland. WorleyParsons and Ausenco will provide program management services to the project in a 50% joint venture throughout the next four years. Hancock Coal and Hancock Galilee are focused on the Alpha Coal and Kevin's Corner Projects in the Galilee Basin. The projects include development of two adjacent 30 Mt/y thermal coal mines. In the 1970s, resource exploration started in the Galilee Basin, which was considered to be uneconomic due to the lack of associated infrastructure on Australia's east coast. Now, some 30 years later, with more developed rail and port infrastructure coupled with the global demand for coal fired power, there is an exciting opportunity for this area of regional Queensland. This project includes associated port and rail infrastructure. Each mine has an expected life of 30-plus years. The Alpha Coal and Kevin's Corner projects moved into the Bankable Feasibility Study (BFS) phase earlier this year. This work is continuing along with the Environmental Impact Statement (EIS) studies currently being undertaken for both projects. In April, the North Queensland Bulk Ports Corporation (NQBP) announced the awarding of Preferred Developer status to Hancock Coal and BHP Billiton for two major expansions at the Port of Abbot Point. The preferred developers were chosen following a competitive process whereby they were able to demonstrate that they offer the best opportunity to optimise the use of the land and achieve the best tonnage throughput. The Queensland Government endorsed the proposals from the two companies to build two new coal terminals at Abbot Point to export an estimated 110 Mt/y of coal. On the July 2 2010, Premier Anna Bligh announced the Declaration by the Coordinator-General of the proposed Hancock rail corridor, an essential milestone towards the Alpha coal mine. The corridor has been declared an Infrastructure Facility of Significance (IFS). The proposed 495 km standard gauge railway will run from Hancock's Alpha mine to the Port at Abbot Point. The Kevin's Corner mine will also use the railway. The approval was significant in that it can only be sought by projects which meet the strict definition of an infrastructure facility and also have the potential to contribute to the State through economic growth and job creation. The port and rail infrastructure associated with the Hancock projects will directly contribute to the State's economy. The development of the Hancock railway from the Alpha and Kevin's Corner projects to Abbot Point near Bowen is an integral requirement for the development of the mines. In September, Hancock Coal started work on a temporary bulk coal sample project at its Alpha coal tenement approximately 60 km northwest of the town of Alpha. The bulk sample project plays an important role in securing the long-term viability of the two proposed future coal projects. Hancock's Bulk Sample Project will extract up to 450,000 t of thermal coal from the bulk sample pit site near Alpha, with the first stage being 120,000 t. As part of the project, Hancock will wash the coal prior to export. Hancock's current plan is for the transportation of coal by truck from Alpha to an offsite coal preparation plant near Blackwater for washing, before trucking to an en route rail loading facility for rail transport to the coal terminal near Gladstone. The road transportation component of the project will take approximately four months starting early in 2011. All loads will be covered as an added measure. The transportation by road will only apply to the Bulk Sample Project. Future projects, Alpha Coal and Kevin's Corner operations will rely on the proposed Alpha to Abbot Point railway line. Paul Mulder, Managing Director of Hancock Coal announced the appointment of Thiess as the Bulk Sample Pit operator, and Wagners as the transport contractor. "Both companies place safety and the environment as key priorities" he said. Country: USA Owner in AUSTRALIA/CANADA COPPER/MOLYBDENUM November 9: Electrum Resources notes the announcement made by THEMAC Resources regarding a C$10.2 million financing of THEMAC by Marley Holdings, THEMAC's majority shareholder. Marley (or its affiliate Tulla Resources) is to purchase 40,000,000 units of THEMAC, each unit consisting of one common share and one common share purchase warran. The financing is expected to enable completion of the purchase by THEMAC of Electrum's exclusive option over a 100% interest in the Copper Flat copper-molybdenum-gold-silver project in New Mexico, USA and to provide funding for the exercise of the Option thereafter. The proceeds of the Financing will also fund ongoing feasibility, permitting and other development work at the Copper Flat project.
  • 12. After completion of the Transaction and the Financing, Electrum's total shareholding in THEMAC will be equivalent to approximately 20% of THEMAC' issued common shares. Following the exercise of Electrum's warrants along with all warrants and options held by other parties, the company's interest in THEMAC would be approximately 22%. Patrick Harford, Managing Director of Electrum: "Completion of the Transaction will give Electrum a significant shareholding in THEMAC, which will as a result of the Financing be well funded to continue advancing the Copper Flat project through feasibility and permitting with the objective of returning the project to production as soon as possible." A preliminary economic assessment was completed for the Copper Flat project by SRK Consulting (US), Inc. in June, 2010 with robust results despite exclusion of gold and silver from economic model: Mine life of 17 years and payback 1.75 years from start of production NPV (6%) $144 million; initial capital $179 million Average annual production of 36 Mlb copper and 628,000 lb molybdenum over first 14 years with average production of 15 Mlb/y copper and 335,000 lb/y molybdenum over a further 3-4 years Life-of-mine operating costs $1.41/lb copper, excluding gold and silver credits The PEA was based on copper and molybdenum only (copper at $3/lb and molybdenum at $12/lb), with gold and silver to be brought to account in financial model as soon as possible SRK Consulting (US) mineral resource estimate, May 6, 2010 Classification Mt Cu (%) Cu (Mlb) Mo (%) Mo (Mlb) Indicated 97.05 0.303 645 0.010 21.4 Inferred 41.7 0.240 222 0.006 5.6 Reported at a cutoff grade of 0.12% Cu contained within a potentially Marley Holdings is controlled by Kevin Maloney, a director of THEMAC and founder of The MAC Services Group, Australia's largest listed provider of remote area mining accommodation and services. Electrum Resources is a mineral and renewable energy development company with interests in Argentina, the USA, Indonesia, Thailand and Australia. Its interests in Argentina include the Sierra de las Minas and Los Aquirres gold/base metal projects, at which it is pursuing a exploration oriented around high-grade, smaller tonnage targets potentially suitable for progression towards early mining. Country: USA Owner in CANADA GOLD November 9: Romarco Minerals is a gold development company focused on production in the US and Mexico. Its flagship project is the Haile gold mine in South Carolina which is currently in the process of a feasibility study and continued exploration drilling. The Pinos Gold District in Mexico is a high grade epithermal vein district in the advanced exploration stage. Romarco has successfully drilled and condemned the current proposed tailings location for Haile (Duckwood). The tailings area itself will encompass 510 acres of a more than 1,000 acre continuous land parcel. With successful condemnation drilling for a tailings location Romarco is now moving into the final phases of the feasibility study including mine modelling and planning, operating and capital cost estimations, cash flow analysis and final permit applications. With the increase in the drill rig fleet from six to nine rigs, the company will resume primarily drilling for ore. Romarco also recently held a groundbreaking ceremony to mark the construction start of an analytical and metallurgical lab at Haile. The laboratory will be seeking independent accreditation and will transition to the operating lab on production. While third-party check assays and verifications will remain critical, the completion of the lab will allow greatly reduced turnaround time for assays. Rudy Carter, Lancaster County Council Chairman stated, "The residents of Lancaster County and Lancaster County Council are excited about the continued progress being made at the Haile gold mine. The people of Lancaster County are fully supportive of the mine reopening and this new $5 million lab and creation of additional jobs is further proof of Haile's commitment to Lancaster County. We welcome this new facility and look forward to a long and prosperous relationship with the company in Lancaster County." M3 Engineering and Technology is providing the design and engineering services for the project. Compass Development is providing construction management services for the project. The facility is expected to be completed by June 2011. Charlie Foote, a former senior assayer at Kennecott's Ridgeway mine, has been employed by Romarco as the Senior Lab Coordinator and Romarco is actively recruiting for the chemist and metallurgist positions. The road to the assay lab will be named Rex Outzen Road in memory of Romarco's first Chief Operating Officer who passed away in 2008. The TSX has granted conditional approval for the listing of Romarco's shares. The company is in the process of co-ordinating the arrangements for listing on the TSX and de-listing from the TSX-V. Country: AUSTRALIA Owner in AUSTRALIA RARE EARTHS November 10: Arafura Resources Ltd has entered into a contractual arrangement with Parsons Brinckerhoff to join Arafura‟s existing staff and create the larger integrated client team now required for the management of the completion of the engineering aspects of its BFS. With the recent decision on the Whyalla site location, for the Rare Earths Complex, Arafura is on track to complete the BFS for the Nolans project in Q4 2011. The remaining engineering work on the BFS will gather together all previous bodies of work and advance and finalise the engineering and project definition to a level where the information will be ready for project financing. Arafura will be approaching “first tier” process consulting/EPCM organisations to complete the study program as their study contractor. Parsons Brinckerhoff will bring project management systems and processes as well as personnel into the company‟s project team to help manage the study contractor during this final phase of the study. Arafura‟s Managing Director and CEO, Dr Steve Ward: “Our recent successful capital raising has provided the funds for us to drive forward with our Nolans project plan at full pace.” Arafura Resources will, in the next few years, become a long term supplier of rare earth oxides, phosphoric acid, uranium oxide and gypsum from its wholly owned Nolans project. The Nolans project comprises operations at two sites within Australia:
  • 13. the Nolans bore mine in the Northern Territory; and the Whyalla rare earths complex in South Australia. As at November 2008, total identified resources for Nolans Bore are as follows: Nolans Bore Resource Classification Mt REO% REO (kt) P2O5% U3O8Ib/t Measured 5.1 3.2 167 13.5 0.57 Indicated 12.3 2.8 350 13.4 0.43 Inferred 12.8 2.6 333 12.2 0.40 TOTAL 30.3 2.8 850 12.9 0.44 Country: SOUTH AFRICA Owner in UK/AUSTRALIA PLATINUM November 9: Platinum Australia Ltd has announced the results from the recently completed DFS report for the Kalahari platinum (Kalplats) project, located in the north-west province of South Africa, 330 km west of Johannesburg. The DFS report shows the project to be commercially and technically viable and able to generate a return of ~25% on the base case assumptions based on mining seven of the eight known deposits. The DFS report has been submitted to African Rainbow Minerals Platinum for their consideration. The key results from the study are as follows: The project would deliver a return of 24.5% on the Base Case or 27.8% at current prices; The project would achieve a pre tax NPV10 of $79 million on the Base case or $108 million at current prices; The project would generate a net cash flow (undiscounted) of US$211 Million on the Base Case or $267 million at current prices; Initial Capital Cost of the project would be $150 million; Cash Operating Cost of $415/oz 3E (platinum + palladium + gold) concentrate produced on the Base Case or $462/oz 3E at current prices; The project would produce 992,000 oz 3E over a 9 year operating life from open pit mining of seven deposits, Crater, Orion, Crux, Sirius, Mira, Serpens North and Vela; Construction power from Eskom would be available in 2011, while permanent power would be available in 2014; PLA Managing Director John Lewins: “The results of the Kalplats DFS show that a project based on seven of the eight known deposits would achieve an IRR of almost 25% at the Base Case and almost 28% at Current (October 2010) prices. In addition the study is based on only the Measured and Indicated high grade resource, which equates to 1.55 Moz 3E, the balance of 1.75 Moz 3E being in the Inferred category”. Country: IVORY COAST Owner in AUSTRALIA GOLD November 9: Perseus Mining has announced details of its feasibility study for the Sissingue deposit which forms part of the company‟s Tengrela gold project (TGP) in Côte d‟Ivoire. In summary, the FS confirms the robust project economics of the TGP as well as the upside potential that exists from ongoing resource definition drilling. Highlights of the Tengrela FS; Initial Probable ore reserve of 657,000oz of gold (using $950 gold price pit design). Production of 340,000 oz (3.5 Mt at 3.3 g/t) of gold in first two years of a six year mine life. Cash costs (C1) in the first two years of $421/oz, with mine life average cash costs of $505/oz. EBITDA of $221 million for first two years of production at $1,100 gold price. Start-up capital cost of $115 million paid back in 14 months at $1,100 gold price. Plan to advance as fast as practicable, targeting first gold pour Q4 2012. Ongoing aggressive drilling will provide resource growth and extend mine life – next upgrade scheduled for Q1 2011 Mark Calderwood, Managing Director: “The robust outcome of the FS has provided Perseus with the basis for a decision to proceed with project permitting and construction planning for the Sissingue deposit on the Tengrela Gold project. Even at a gold price under $900/oz, the FS provides a payback period under two years.” “Perseus now has combined reserves of 2.79 Moz between the TGP and the Central Ashanti Gold project (CAGP) in Ghana and we are anticipating another significant reserve upgrade for the CAGP in December 2010.” “Though Measured and Indicated resources were limited as a function of drilling density, we fast tracked the Sissingue FS to enable an early start to be made to the approval process and planning. Assuming that site construction can begin in 12 months, we would expect production to commence in Q4 2012.” “We are confident that with further drilling we will convert existing Inferred mineral resources to the Indicated category during Q1 2011, thereby potentially adding a further 200,000 oz to the $950/oz pit shell model. In addition, extensional drilling following up on recent drill hits is likely to further expand our inventory of mineral Resources and, ultimately, reserves.” “Also, increasing the drilling density in the high grade zones within the existing Indicated resource envelope may provide the statistical grounds to increase the top cut that has been applied to drill results, potentially allowing us to include some of the 280,000 oz (or 40%) of the gold top cut out of the mineral resource used in the calculation of stage 1 and 2 ore reserves.”
  • 14. Country: TURKEY Owner in UK GOLD November 9: Stratex International has announced a positive development update of its Inlice and Altyntepe gold projects located in Turkey, which are being advanced with its joint venture partner NTF Insaat Ticaret Ltd Sti (NTF) with a target of first gold production by Q1 2012. Highlights include; Feasibility study at the Inlice gold project will be finalised by January 2011 Preliminary open pit planning, waste storage, plant design and related cost calculations now well advanced Inlice Exploration Licence now converted to Operation Licence, clearing the way to commence the permitting process immediately after completion of the Environmental Impact Assessment report Metallurgical test work at Inlice demonstrates leach recoveries of 85% to greater than <90% for oxide material Early indications of good leach recoveries from talus material overlying bedrock resource Initial mine production planned at 1,000 t/day with leach-heap capacity designed for 1 Mt - option to increase to 3 Mt to allow for increased production High-grade oxide material at Altyntepe confirmed with best intersections of 43.00 m averaging 5.39 g/t gold and 41.00 m averaging 3.08 g/t gold Stratex International‟s CEO Bob Foster: “As the feasibility study at our Inlice gold project draws close to conclusion we are one step closer to establishing ourselves as a gold producer in Turkey to take optimum advantage of the high gold price whilst minimising capital costs. The very positive leaching results reported here, together with the results of the other technical studies, will enable the financial modelling of this project to be completed and the final report submitted in January 2011. The ongoing EIA study is due to be completed by June 2011. Following completion of the permitting process, the processing plant will be constructed within three months, which will see Stratex move into gold production at Inlice in early 2012. “Following completion of the preliminary resource drilling of the Extension Ridge Zone at Altyntepe, we are now well placed to revise and upgrade the previously identified resources of this much larger oxide-gold project, with a view to commencing the full feasibility study in early 2011. The development of the Inlice and Altyntepe gold projects, which contain a current combined oxide Au resource of about 570,000 oz, is being funded by the company‟s joint venture partner NTF through NS Madencilik Sanayi Ticaret Anonim Sti (NS Madencilik), the joint-venture development company 45% owned by Stratex. The previously reported resource for the Inlice project comprises 262,300 oz Au using a geologically well defined cut-off grade of 0.1 g/t Au. The open pit, in situ, oxide resource was 944,495 t grading 2.29 g/t Au for 69,324 oz but this resource is currently being revised as an integral part of the feasibility study. At Altintepe, the oxide resource currently stands at 472,318 oz Au, comprising 13,098,137 t grading 1.12 g/t Au in all categories at a cut-off of 0.2 g/t Au and including 8.3 Mt grading 1.48 g/t Au. However this will be revised in the light of the new drilling results reported below. Inlice 200 kg bulk samples of gold-bearing oxide material from the main Ana Zone, have been subjected to leach tests to determine the leach characteristics of both oxide and underlying mixed oxide-sulphide (transition) material. Results indicate recoveries of 85% to greater than 90% for oxide material crushed to -19 mm, and more than 60% for mixed oxide-sulphide material. Design criteria for both the mine and the processing plant are essentially complete and are based on an initial operational capacity of 1,000 t/day. The pit design comprises two pits, one on the Ana West Zone and a second on the nearby Ana East Zone, the two being separated by what has been named in the past as the „Gap Zone‟, a 150 m-wide low-lying area underlain by relatively high-grade gold-in-sulphide material that might be exploited at a later date. The leach heap will initially be constructed to contain 1 Mt of material but is being designed such that it can easily be expanded to contain up to 3 Mt. Altyntepe Drilling of the Extension Ridge Zone has now been completed with the focus on the oxide material that caps the low ridge. Although the drilling invariably intersected underlying sulphide material, sometimes over significant lengths (for example 34.50 m @ 1.20 g/t Au in ER-DD-11), the programme was designed to provide data for estimation of the oxide-gold resource that has the potential to be readily exploited using the same heap-leaching technology planned for the Inlice project. The high grade oxide-gold intersections returned by holes ER-DD-07 and ER-DD-10 demonstrate the presence of a high-grade core to the Extension Ridge Zone that was first highlighted by the results released in an RNS dated 26 August 2010: ER-DD-01: 37.90 m from surface averaging 6.17 g/t Au ER-DD-02: 17.00 m averaging from surface averaging 3.47 g/t Au Country: USA Owner in USA COPPER November 9: Nevada Copper Corp has announced the results of latest feasibility level metallurgical test work on its Pumpkin Hollow project ore composites. These results, which confirm the preliminary metallurgical test work disclosed in a January 2010 PEA, will be incorporated into a DFS which is anticipated for completion by June 30, 2011. Preliminary work on the DFS is expected to begin within a week. The results on composite samples from the four ore zones indicate uncomplicated metallurgy and ores with a moderate work index that can produce gold and silver-bearing, high grade copper flotation concentrates with high copper recoveries and a relatively coarse primary grind.
  • 15. Copper Recovery vs. Concentrate Grade* Deposit Copper Recovery % Copper Concentrate Grade % North 90.1 25.4 East 94.8 23.6 South 85.4 28.5 E2 93.5 30.3 * Optimum results based on maximising net smelter return. Nevada Copper's Executive Vice President, Robert McKnight: "The project is capable of producing a high-quality saleable copper concentrate and we expect to be able to secure a very favourable off-take agreement for this product going forward." The primary metallic minerals include chalcopyrite, pyrite and magnetite, with magnetite representing 20-30% of the total content of three of the four composites. The process flow sheet is conventional, with primary and secondary crushing followed a SAG/ball mill and rougher and cleaner copper concentrate flotation and regrind circuits. Use of high pressure grinding roll (HPGR) technology will be investigated as an alternative to the SAG mill for reduced power consumption. Because the E2 and South deposits are elevated in pyrite, the facility will also incorporate a pyrite flotation circuit in order to recover, thicken, filter and ultimately sequester this mineral, to reduce acid generation potential. Country: CHILE Owner in UK ZINC/LEAD/SILVER/GOLD/COPPER November 10: Herencia Resources has provided an update on the Paguanta project in northern Chile. The Paguanta project, which is 70% owned and managed by Herencia, comprises the Patricia JORC-compliant zinc-lead-silver-gold mineral resource, the Doris high grade copper/silver target and the La Rosa porphyry-copper prospect, all located within the same granted mining tenements. The company has updated the economic model for the Paguanta project using spot commodity prices for zinc, lead and silver as at 5 November 2010. The result, using the assumptions set out below and the existing 1.66 Mt mining inventory, is a NPV of $90.4 million. Given the projects significant potential for tonnage increases, as demonstrated by the positive results from the 2010 drill program, two sensitivity cases were prepared based on the upside potential for the project, assuming additional tonnage was identified by further drilling: Post-feasibility study case (6 years @ 400,000 t/y = 2.4Mt) NPV(8%) = $139.5 million Upside case (8.25 years @ 400,000 t/y = 3.3 Mt) NPV(8%) = $184.9 million The post-feasibility study case assumes an additional 740,000 t are added to the mining inventory in 2011 and the upside case assumes that the current mining inventory of 1.66 Mt is doubled. Key assumptions include: 100% project value Discount rate of 8% Throughput - 400,000 t/y Capital cost - $56 million Operating costs increased to reflect 400,000 t/y throughput Zinc price - $1.12/lb ($2,468/t) Lead price - $1.13/lb ($2,490/t) Silver price - $26.78/oz Assumed gold revenue (0.26g/t at 50% recovery and $1000/oz) Doris Update: The company is currently obtaining submissions from leading geophysical survey companies in Chile in relation to a geophysical program over Doris. At this stage it is planned to undertake the fieldwork in December this year, subject to crew availability. Currently, surface geological investigation continues on site with breccia zones, stockworks and quartz outcrops recently mapped at La Rosa. The company is working closely with selected consultants in relation to the proposed feasibility study. The goal is to finalise the scope and cost by month end. Managing Director Michael Bohm: “This significant increase to project NPV is a function of increased tonnage, increased grade and improved commodity prices. What is also significant is the sensitivity to tonnage upside, particularly given the mineralisation remains open at depth, along strike, and with new high grade veins awaiting potential expansion. It is worth noting that we added significantly to both the resource base and the NPV in 2010, with only 5,700 m of drilling." Country: BRAZIL Owner in CANADA GOLD November 10: Guyana Goldfields has announced that, due to the identification of several additional mineralised zones at Aurora and the nearby Sulphur Rose discovery (Aranka), the feasibility study which was scheduled for completion by year end will be deferred. These discoveries are sufficiently significant that their integration into the feasibility study may have a materially positive impact and must be evaluated. Accordingly, the planned 2011 drilling programs will be significantly expanded. Since March 24, 2010, the DFS drill cut-off date, an additional 36,748 m of drilling has been completed at Aurora, enabling significant growth of the three newest zones identified within the Golden Square Mile. These zones have been tested with forty- three drill holes and remain open along strike and at depth. The discovery and further confirmation of these zones significantly increases known gold mineralisation within the bounds of the Aurora gold project area. The DFS will be modified to include the following; Infill drilling within the Golden Square Mile completed from March 24, 2010 (the current feasibility study cut-off date), to the end of June 2011 (the new feasibility study cut-off date), will be included in a new resource estimate to be completed by the end of August 2011 A mine plan to include the three zones mentioned above plus assessment of any additional new zones discovered before the end of June 2011 Assessment of the Sulphur Rose discovery feasibility study completed in Q4 2011
  • 16. Additionally, the company will continue to carry out civil and infrastructure works that are critical to an expanded exploration effort and mine construction. Below are some of the key objectives and milestones for the remainder of 2010 and 2011; Examine merits of early construction of an underground portal and access ramp to allow for earlier underground access and additional underground exploration drilling Complete the Hydropower feasibility study and assess its potential inclusion in the overall feasibility study Complete negotiations with the government on the mineral Agreement and obtain the Mining License for the Aurora gold project Guyana Goldfields is dedicating an estimated $25-30 million for exploration in 2011 to advance both drilling programs at Aurora and Aranka. Country: SWEDEN Owner in AUSTRALIA COPPER/IRON ORE November 11: Avalon Minerals has begun a major new resource extension drilling program at its wholly owned Viscaria copper-iron project in Northern Sweden. The objective of the drilling is to convert previously established exploration targets to JORC reportable resources and to increase Avalon‟s overall JORC reported resource inventory, which comprises more than 66.2 Mt of both VMS and skarn-type mineralisation for 601,000 t of contained copper and 2.4 Mt of contained iron. In addition, a major new regional exploration program has started targeting a number of high priority areas within Avalon‟s tenure in the broader Kiruna region. The resource expansion and regional exploration programmes will run in parallel with the BFS into the development of the Viscaria project. Drilling started at D Zone on 11 November 2010 with the aim of delineating JORC reported resources in this area, where Avalon has previously established an exploration target of 30-50 Mt at 0.5% to 1.0% Cu and 25% to 35% Fe. This area is located to the south of the main mineralised zones at Viscaria. Drilling will initially comprise both percussion and diamond drilling to define the copper and magnetite content of the D Zone South at a drill spacing of 800 m. The drill programme is expected to take approximately three months to complete. Further diamond rigs are currently being mobilised to the Viscaria site to commence resource definition drilling at the northern end of D Zone, A Zone and B Zone over the established resource area. Resource definition drilling in these areas will continue through the rest of 2010 and into the first half of 2011. The planned drilling program comprises roughly 30,000 m and is aimed at increasing open pittable material from 15 Mt to 25 to 35 Mt to support the development case defined in the recently completed PFS of 3M t/y for 10 years, on which the Viscaria BFS will be based. This target of 25 - 35 Mt of open pittable material is an interim target only. Avalon‟s contiguous tenure in the Kiruna area contains several high priority targets identified from the recently acquired geochemical maps of the area. These areas have not been subject to detailed exploration for several reasons. Firstly, prior to 1995 it was not possible for foreign companies to control mining projects in Sweden. Secondly, the Swedish mining industry has generally restricted its exploration activities over the past 20-30 years to brownfields and near mine exploration. Kurravarra Kurravarra is approximately 10km north of Viscaria and is a 20km long target with overlying copper and magnetite geochemistry. The Kurravarra target is located in a geologically similar environment to the Viscaria project area (66.2 Mt @ 0.9% Cu resource including 9 Mt @ 0.6% Cu and 27% Fe). Vittangijarvi Vittangijarvi is 25 km north-west of Viscaria and is a large area (about 10 km by 6 km) of geochemical copper anomalism over greenstone rocks of a similar age to Viscaria. The area has evidence of numerous, small-scale, alluvial copper mining operations, and hosts several large scale magnetite rich horizons adjacent to a large granite intrusion. Karkejaure Karkejaure is a large (8 km by 7 km) granodiorite intrusion 50 km north of Viscaria. It carries a very large magnetic and gravity anomaly, and wide alteration halo of magnetite iron. Karkejaure is considered prospective for large scale iron oxide-copper- gold type mineralisation. Kallojankka Kallojankka is 10 km north-west of Viscaria. The prospect covers a 5 km by 2 km zone of anomalous geochemical copper mineralisation in greenstone rocks within the Kiruna shear zone to the north-east of the operating Kiruna mine. It is targeted for VMS style copper and base metal mineralisation related to the nearby granite intrusion. Country: AUSTRALIA Owner in AUSTRALIA COAL November 12: Endocoal is focused on the exploration and development of hard-coking, thermal and PCI coal projects in the Bowen Basin. Its current tenement package includes over 5,000 km2 in the highly prized Bowen Basin region of Queensland and are immediately adjacent to many existing coal producing mines. To date six of Endocoal's 10 tenements have been granted by the Queensland Department of Mines and Energy which will position the company well for the future. In addition Endocoal has registered six of its tenements, spanning approximately 2,800 km2 for the potential development of Underground Coal Gasification (UCG). Endocoal's strategy is to develop at least two new high quality coal mines over the next three years. Country: BRAZIL Owner in AUSTRALIA GOLD November 12: Beadell Resources has announced that JORC resources at the Tucano project have increased by 48% to 4.3 Moz. Global JORC resources for Tucano now total 90.4 Mt @ 1.5 g/t for 4.3 Moz of gold at a 0.5 g/t cut off, comprising 19.5 Mt @ 1.5 g/t gold for 1.0 Moz of oxide which will form the main ore source for the first 3 to 4 years of the operation followed by the primary ore which comprises a resource of 63.6 Mt @ 1.5 g/t for 3.1 Moz of gold. The global resource comprises Measured resources from stockpiles of 7.4 Mt @ 0.8 g/t gold for 0.18 Moz. Total Indicated resources for Tucano are 40.1 Mt @ 1.5 g/t for 2.0 Moz and total Inferred resources are 42.9 Mt @ 1.6 g/t for 2.2 Moz. All resource models have been handed over for mining optimisation work to be completed by the end of this year as part of the DFS, culminating in the release of a maiden JORC reserve.
  • 17. Beadell‟s Managing Director Peter Bowler: “We are moving rapidly towards a decision to mine at completion of the DFS at the start of next year and look forward to joining the ranks of mid tier gold producers by early 2012” The Urucum deposit is the largest of the known gold deposits at Tucano forming a 3 km long zone of mineralisation hosted in sheared and sulphidised BIF. Total resources for Urucum are 48.8 Mt @ 1.6 g/t for 2.5 Moz, significant oxide mineralisation exists along the 3 km strike length totalling 7.7 Mt @ 1.3 g/t for 0.3 Moz. The primary ore, totalling 41 Mt @ 1.6 g/t for 2.2 Moz, has been drilled to roughly 500 m below surface where ore grade intercepts remain completely open at depth. Taperaba AB is the southernmost deposit along the main 7 km long north-trending mineralised BIF. Total resources for Tapereba AB are 25.3 Mt @ 1.5 g/t for 1.2 Moz of gold. Total oxide resources for Taperaba AB stand at 6.7 Mt @ 1.7 g/t for 0.4 Moz of gold with underlying fresh rock primary resources of 18.6 Mt @ 1.4 g/t for 0.8 Moz of gold. A high grade zone referred to as the Trough zone forms a central lode to the broader deposit where extremely high grade results have been reported recently including 10.4 m @ 25.6 g/t gold and 10.3 m @ 23 g/t gold. At Tap AB 1 a gently west- dipping lode with very low strip ratio exists where recently reported approximate true width results included 33 m @ 4.3 g/t gold from 4 m and 19 m @ 4.5 g/t gold from 3 m. Total resources for Tapereba C are 6.5 Mt @ 1.2 g/t for 0.3 Moz of gold. The deposit has a deep weathering profile and is dominated by oxide mineralisation. Tapereba D – 2.4 Mt @ 1.2 g/t gold for 0.1 Moz Duck Head – 0.1 Mt @ 17.1 g/t gold for 63,000 oz Stockpiles – 7.4 Mt @ 0.8 g/t gold for 0.2 Moz A large inventory of spent ore and low grade stock piles adjacent to the plant site are an important source of ore for future processing. Total resources for spent ore and low grade stock piles are 5.8 Mt @ 0.8 g/t gold for 140, 000 oz and 1.5 Mt @ 0.9 g/t for 44,000 oz respectively. Metallurgical test work completed on these stock piles indicates excellent recoveries averaging 90% for the spent ore. Country: CANADA Owner in CANADA ZINC/LEAD November 12: Selwyn Resources has announced that Selwyn Chihong Mining Ltd (SCML) has reimbursed Selwyn C$7.44 million for the second tranche of Selwyn project pre-development program expenditures incurred. Selwyn has received an aggregate C$12.52 million for its project expenditures. With receipt of these funds, Selwyn has C$9.8 million in working capital to fund its ongoing corporate and administrative expenses and no debt. The ongoing exploration and development of the Selwyn project will be funded by the joint venture. The newly formed Selwyn Chihong Mining Ltd. joint venture company is carrying out the C$89 million exploration and development program that started in June 2010 in support of the completion of a feasibility study and permitting activities. Selwyn's focus is the exploration and development of the Selwyn project in eastern Yukon and Northwest Territories with its joint venture partner Yunnan Chihong Zinc and Germanium Co. The mineral resource at the Selwyn project stands at 154.35 Mt grading 5.35% zinc and 1.86% lead of Indicated resources, and 234.15 Mt grading 4.54% zinc and 1.41% lead of Inferred Country: CANADA Owner in CANADA POTASH November 12: Saskatchewan First nations are making a push to get involved in the lucrative potash industry. The Muskowekwan First Nation has signed an agreement with Vancouver based Encanto Potash Corp to develop a mine on its land northeast of Regina. Chief Reg Bellegarde: "It is good for our community, it is good for our First Nation, and it's good for our future." The mine would cover a 43,000 acre region, creating almost 300 jobs and generating a 3% royalty for the First Nation. "Our government funding through contributions is not meeting the needs, so our focus is our own source of revenue. The best way is to partner with industry." Members of the First Nation still need to approve the venture through a vote, and a feasibility study needs to be done, but Encanto is confident this project can be a success. Encanto President and C.E.O. James Walchuck: "There's six holes surrounding it that tell us that there's potash at fairly good grades, and then we have two holes telling us that it's as good or better than the existing mines right now." Encanto was created to work with First Nations peoples in Saskatchewan to assist them in developing potash resources on their lands. It is focused on exploring for potash in five southeast Saskatchewan prospects, working with the Chacachas, Day Star, Muskowekwan, Muscowpetung and Ochapowace First Nations. At the Muskowekwan project initial assays returned values greater than 25% K2O or 40% KCl over mineable widths in two separate potash beds. The company plans to drill four infill holes at Muskowekwan for its initial resources calculation due in Q1 2011. Seismic results from an extensive 3D program at Muskowekwan are currently available. Country: SOUTH AFRICA Owner in SOUTH AFRICA/AUSTRALIA COAL November 12: The Firestone Energy/Sekoko Joint Venture has made tremendous progress in development of the Waterberg coal project adjacent to the 30 year old Exxaro Grootegeluk coal mine in the Limpopo region of South Africa. The DFS has been completed and signed offtake expected by December 2010. The current open-pit mine has a 21-year mine life with a very low strip ratio of overburden to saleable coal strip ratio of 2 to 1 and only 6.4% of the total coal gross tonnes in situ (August 2010 resource update) will be mined within this initial pit, so the coal seams are still open in all directions, and six coal seams are still under the first stage 70 m deep pit floor. Submission has been made of the Mining Rights application, Social Labour Plans and the Environmental Impact Assessment scoping report. The Water Use Licence Authority (WULA) will be completed by end of November 2010 followed by the submission of the Environmental Management Program (EMP) before the end of December 2010. Completed site visits by the Department of Water Affairs, the Department of Environment and Tourism and the Department of Local Economic Development Environment and Tourism revealed no issues, and gives the company confidence that its application for both WULA and EMP will be accepted with minimal or no queries expected.
  • 18. Following the submission of mining rights in June 2010 two Public Participation Meetings (PPMs) were held where interested and affected parties (IAPs) were invited. No major issues were identified but all queries raised were attended to and mitigation plans put in place. The PPMs were followed by individual visits to IAPs that raised specific concerns. This process has also revealed no major concerns. Sekoko Chairman, Tim Tebeila, expects that the Record of Decisions (ROD) will be issued at the end of Q1 2011, which will then lead to approval of Mining Rights by Q2 2011. Removal of overburden and commissioning of the plant will follow to enable the project to reach its first coal by the end of 2011 and then supply its off-take customer by Q2 of 2012. FSE/Sekoko have completed the rail siding study. This involved the implementation of a 7 km line connecting to the main Transnet Freight Rail line going to Thabazimbi at a capital cost of A$20million. The environmental studies relating to the rail siding construction will be completed before the end of 2010. Country: PERU Owner in CANADA GOLD/SILVER/COPPER November 12: Andean American Gold Corp has closed its private placement at a purchase price of $0.90 per common share for aggregate gross proceeds to Andean of $16.35 million. The company intends to use the net proceeds from the financing primarily for advancing its Invicta gold project in Peru. David Rae, President of Andean American Gold Corp: "The majority of the funds raised through this bought deal will be used to advance our Invicta project, a gold, silver and copper project. SRK continue to upgrade the feasibility study completed in July this year and we still anticipate completion in Q2 2011." Andean is focused on the development of gold and copper projects in Peru and currently has two key assets: the 28,200 ha Invicta gold-silver-copper advanced exploration stage project and 60.13% of Sinchao Metals Corp., owner of the Sinchao gold- silver-copper exploration project. Country: MALAWI Owner in AUSTRALIA URANIUM/REE November 12: Globe Metals & Mining has entered into a binding agreement to form a strategic partnership with East China Mineral Exploration and Development Bureau (ECE). Globe chairman Mark Sumich: “The strategic partnership allows Globe to take the Kanyika niobium project through the development, financing, construction and production phases, as well as funding for early stage projects. It therefore enables Globe to continue and complete its transition from an exploration and development company, into a profitable mining company.” ECE‟s Director General, Shao Yi: “The joint approach of ECE with Globe is a win-win cooperation based on a highly complementary affinity between our two companies. This is mainly reflected in three ways: first, the enormous demand in China for metals will be the right target market for the highly prospective resources owned by Globe; second, the great expertise of ECE will be helpful to the projects being undertaken by Globe in their various stages of development; and lastly, ECE‟s assistance in securing abundant financial support will ensure Globe is able to fully explore and develop its projects.” Globe‟s main focus is the niobium-uranium-tantalum-zircon Kanyika niobium project in central Malawi. A BFS was commissioned in August 2009 and production is planned to begin in 2013 at a rate of 3,000 t/y niobium metal, principally in the form of ferro-niobium. Country: ERITREA Owner in AUSTRALIA GOLD November 15: Chalice Gold Mines has announced that, in an important step towards finalisation of a Mining Agreement for the Koka Gold project, the Eritrean Government has advised its intention to purchase, at fair value, a 30% paid participating interest in the project through the Eritrean National Mining Corp (ENAMCO). This paid participating interest is in addition to ENAMCO‟s 10% carried interest. Finalising the terms on which ENAMCO will acquire the 30% interest in the project will greatly assist Chalice‟s efforts to secure the necessary approvals to develop Koka. Chalice Executive Chairman Tim Goyder: “This agreement will allow Chalice and ENAMCO to move rapidly towards finalisation of the agreements covering the project and the granting of a Mining Licence.” “ENAMCO‟s involvement will also play a significant role in enabling the project to secure funding and in the process reduce Chalice‟s funding requirements.” Country: MALI Owner in CANADA GOLD November 15: Ressources Robex has awarded the contract to perform the feasibility study for the Nampala project to Bumigeme was awarded. The study, slated to begin in December 2010, will aim to confirm the economic viability of an open-pit mining operation, through a cyanide treatment plant, processing 5,000 t/day for an estimated annual production of 45,000 oz of gold. André Gagné, president and CEO: “The awarding of the contract for the feasibility study is a very important step in the advancement of the project, which should lead Robex to achieve its production goals. In addition, we are convinced that excellent past drill results, recent metallurgy tests, which demonstrated recovery rates of about 90%, the low rate of cyanide consumption inferior to 0.33 kg/t, the resource‟s geometrically uniform distribution, as well as the rising price of gold, are all factors that will allow Robex to carry out this mining project and to develop the deposit to its full potential.” According to the terms of the contract, Bumigeme intends to retain the services of subcontractors for certification of resources, to model the pit to be exploited and for the extraction model. Discussions are underway with recognised engineering firms and those selected for these contracts will be announced shortly. Country: AUSTRALIA Owner in AUSTRALIA IRON ORE November 15: FerrAus Ltd has released the results of the PFS of the FerrAus Pilbara project in Western Australia and approved the commencement of a DFS. The PFS estimates that the NPV of the FerrAus Pilbara project, using an 8% discount rate (after tax), ranges from A$1,120 million to A$1,340 million, with an after tax IRR return of between 24 and 26% and a discounted payback of 4 years. The PFS is based upon the following key parameters; life of mine production was assessed to be 227 Mt (wet); the final product grade is approximately 59% Fe, 2.3% Al2O3, 4% SiO2, 0.09% P, 8.3% LOI;
  • 19. product specification is comparable to Fortescue Metals Group Rocket Fines and Rio Tinto iron ore Pilbara Blend fines; average life of mine waste strip ratio of 4.32; pre strip costs included in operating cost; 75% of all ore and waste material is free dig; production ramping up to 15 Mt/y of fines (wet); total operating costs are in the range A$43.5 to A$46.5/(wet) t of ore sold, including the rail and port tariffs and excluding royalties, administration and marketing costs; Executive Director, Bryan Oliver: “The PFS confirms the project is robust and economically attractive. FerrAus has the capacity to deliver a high quality product, which requires minimal beneficiation and there is considerable potential for further exploration success. “We expect to ship our ore through that new port development in Port Hedland. We will now proceed with a DFS in order to be ready to commence construction of the mine in 2012 and achieve first shipments in 2014. “Exploration programs will continue across all of the FerrAus Pilbara project tenements to target additional resources.” FerrAus also announced a maiden iron ore reserve estimate of 126 Mt at 57.3% Fe for the Pilbara project. The ore reserve statement has determined that the FerrAus Pilbara project contains Probable ore reserves contained within optimised pit designs. Also, analysis of additional drilling results at the Mirrin Mirrin prospect has led to a 23% increase in the +55% Fe resource, to 37.9 Mt. This takes the total resource for the FerrAus Pilbara project to 328.7 Mt. During the mining study, advanced metallurgical test work was completed and subsequently reported confirming the assumed metallurgical recoveries. Based on that report, the current Inferred mineral resource material for Robertson Range between 53% and 55% Fe and Davidson Creek between 52% and 55% Fe, was upgraded to an Indicated mineral resource. The analysis of recent RC drilling results from the Mirrin Mirrin prospect increased the 50-55% Fe resource from 18.1 Mt to 23.3 Mt, an overall increase in resources of 12.3 Mt. The Mirrin Mirrin prospect is part of the Davidson Creek Area within the project and this program of 200 m x 50 m spaced RC drilling was completed in late September. Oliver: “The results from the new exploration holes, which are outside the defined resource area, continue to indicate that Fe mineralisation is continuous along strike to the east and west, as well as to the north.” The total resource (JORC) for the FerrAus Pilbara project is 328.7 Mt. FerrAus Limited has stated that its corporate objective is to achieve a resource total of 400 Mt which, depending on future drilling and development, may or may not be achieved. Country: KYRGYZ REPUBLIC Owner in AUSTRALIA GOLD November 16: Manas Resources has reported results from a detailed scoping study at its wholly owned Shambesai gold project in the Kyrgyz Republic. The leach operation in total is estimated to recover 180,000 oz of gold over six years at a cost of $250/oz of gold, placing Shambesai into the lowest quartile of cash costs for gold producers worldwide. Key project parameters of the Shambesai leach project include; In-pit resources – Run of mine 1.8 Mt at 4.3 g/t gold includes 400,000 t at 5.2 g/t gold sulphide ore Annual gold production; 30,000 oz/y (average) 35,000 oz/y in the first three years Processing Recovery; 92% High-grade oxide ore (Vat Leach) 75% Low-grade oxide ore (Heap Leach) 20% Sulphide ore (Vat Leach) The detailed scoping study shows that a technically simple, low-cost vat leach and heap leach operation for the high grade oxide (greater than 2 g/t gold), low grade oxide (less than 2 g/t gold) and sulphide ore has the potential to generate $96 million of undiscounted cash flow before tax, and after capital and operating costs, over the six year life of mine. A NPV of $59 million (before tax) and an IRR of 201% using a conservative $1,000 gold price and 12% discount rate, has been projected. The initial capital costs are estimated to be $16.3 million with the first three years of operation producing 100,000 oz of gold at a head grade of 5.7 g/t gold and showing a payback of capital within the first nine months of operation. Recoveries from column leach test work predict recoveries for oxide ore of 91% for this period. A full feasibility study for government submission has now started. Drilling of oxide extensions at Shambesai and oxide satellite deposits such as Pum, 3 km from Shambesai, will continue. Manas Resources MD Stephen Ross: “The project is an extremely simple, low-risk, low-cost operation that can be brought into production very quickly, The outstanding recoveries we are getting from the leach test work of the oxide ore indicates the potential for high-margin gold to be produced at Shambesai for a very low initial capital cost and therefore incredibly quick pay back of capital. Manas are targeting completion of the feasibility study for the first half of 2011. Manas has also appointed Philip Reese to the management team as Operations Manager. Most recently Reese was involved with developing and managing the operations of Sino Gold in China. He will be responsible for completion of the feasibility study and the development of the Shambesai Leach project. Manas has a mineral resource base of 1.13 Moz of gold at the Obdilla and Shambesai prospects, which are only seven km apart. The main focus for Manas is developing the Shambesai Leach project and exploring for Carlin-style gold deposits on seven projects collectively called the South Kyrgyz gold project covering over 4,200 km2 .
  • 20. Country: AUSTRALIA Owner in AUSTRALIA ZINC/LEAD November 16: Meridian Minerals has announced that A$6.5 million in placement funds have been received from cornerstone shareholder BZ Minerals. Meridian‟s largest shareholder, North West Mining and Geology Group Co (NWME), have confirmed that they will contribute a further A$4.6 million in order to maintain their existing 41.34% interest in Meridian. Following receipt of the funds from NWME the placement will raise a total of A$11.1 million, following which BZ Minerals will have a 17.15% interest in Meridian and NWME a 41.34% interest. Meridian‟s Managing Director Jeremy Read: “Currently Meridian is drilling out the extensions of the Cadjebut Splay mineral resources and we are on track to complete this drilling before the end of 2010,” The Cadjebut Splay resources are in the Lennard Shelf project, located in the Kimberley region of Western Australia, to date Meridian has increased the mineral resource inventory, since the project acquisition, by 210% to the current 17.23 Mt @ 5.5% Zn and 4.0% Pb. The BFS is due for completion in the third quarter of Country: MONGOLIA Owner in CANADA/UK COPPER/GOLD November 16: International engineering and project management company AMEC has been commissioned by Oyu Tolgoi LLC to undertake the feasibility study for Lift 1 of the underground Hugo North block cave operation of its copper and gold mining project in Mongolia. Oyu Tolgoi is the world's largest known undeveloped copper-gold project and is located in the South Gobi region of Mongolia, approximately 80 km north of the Mongolia-China border. When Oyu Tolgoi moves into full production, it will be one of the world's top three copper-gold mines. Over the next 25 months, AMEC will work with Oyu Tolgoi‟s engineering team to develop designs, specifications, cost estimates and a construction schedule for an 85,000 t/d block cave operation. Matt Gili, Chief Operating Officer for Oyu Tolgoi said: “The high grades of the underground mine make its design a crucial part of realising the value from the project over the long-term, for all stakeholders. We look forward to working with AMEC and itspartners in delivering this value.” To support in the delivery of this complex project, AMEC has partnered with RSV of South Africa for shaft engineering, AC-Tek for dynamic simulation of underground conveyors and Analytical Laboratory Consultants for laboratory service design. On October 6, 2009, Ivanhoe Mines and Rio Tinto signed a long-term, comprehensive Investment Agreement with the Government of Mongolia for the construction and operation of the Oyu Tolgoi copper-gold mining complex. The agreement creates a partnership between the government -- which will acquire a 34% interest in the project -- and Ivanhoe Mines, which will retain a controlling 66% interest in Oyu Tolgoi. Global miner Rio Tinto, which joined Ivanhoe Mines as a strategic partner three years ago, presently holds a 29.6% interest in Ivanhoe Mines. Based on Ivanhoe Mines' discoveries at Oyu Tolgoi during the past nine years, independently verified estimates indicate that Oyu Tolgoi contains approximately 81,000 Mlb of copper and 46 Moz of gold in Measured, Indicated and Inferred resources. Ivanhoe Mines announced a 2010 construction budget of $758 million, to begin full-scale construction of the copper-gold mining complex in southern Mongolia. Ivanhoe is considering a schedule that could see construction of the initial open-pit mine completed in 2012 and commercial production begin in 2013." The 2010 budget provided for an early start on a site-wide development program and is planned to include: Resumption of the sinking of the 10-m diameter Shaft #2, which will be used to hoist ore to the surface from the deep, underground, copper-gold-rich Hugo Dummett Deposit Construction of a 97-m tall (approximately 31 storeys), reinforced-concrete headframe for Shaft #2 Pouring the concrete foundation for the 100,000-t/d concentrator and deliveries of building materials for the concentrator and infrastructure Installation of a 20-MW power station and 35-kV distribution system Initial earthworks for the open-pit mine at the Southern Oyu deposits Continuation of lateral underground development off Shaft #1 at the Hugo Dummett Deposit Construction of a 105-km highway link to the Mongolia-China border, which will be fully paved by the time production begins Construction of a regional airport, with a concrete runway to accommodate Boeing 737-sized aircraft.; Country: CANADA Owner in CANADA COPPER/GOLD November 16: Imperial Metals Corp has completed an update of the Red Chris copper-gold project, located in the Tahltan traditional territory of northwest British Columbia. Imperial's Red Chris 2010 feasibility study update is intended to guide development of the project within its current Provincial and Federal Approval framework and does not take into account the results deep drilling carried out by Imperial. The 2010 update indicates an after tax IRR of 15.7% at metal prices of $2.20/lb copper and $900/oz gold and a capital cost of C$443 million. Highlights of the 2010 update include; Reserves of over 300 Mt grading 0.359% copper and 0.274 g/t gold provide for a 28 year project life at a milling rate of 30,000 t/day. Pre production period of only four months during which 1.8 Mt of rock and overburden would be relocated. The Red Chris ore body is exposed at surface resulting in a comparatively limited pre-production phase. Recovered metal in concentrate would total 2.08 billion lb copper and 1.324 Moz gold. The project is the development of an open pit mining and milling operation. The mining fleet would include 311mm electric rotary drills, 28 m3 hydraulic excavators, 230 t capacity haul trucks and associated support equipment. Plant design is based on a standard porphyry copper flow sheet employing SAG and ball milling, flotation, regrinding, thickening and filtering to produce a concentrate for export averaging 27% copper at a moisture content of 8%. The Red Chris copper/gold deposit has several identified mineralised zones. The mineable reserves estimate in the 2010 update for the pit shell designed in 2005 are provided below, and are all contained within the upper portion of Main and East zones.
  • 21. ---------------------------------------------------------------------------- Mt Cu % Au g/t ---------------------------------------------------------------------------- Proven and Probable 301.55 0.359 0.274 ---------------------------------------------------------------------------- The Red Chris property hosts significant mineral resources. The resource for the Measured and Indicated category and the Inferred category, a copper cut-off grade of 0.10% of the entire property, including all zones of mineralisation, ---------------------------------------------------------------------------- 2010 Technical report ---------------------------------------------------------------------------- Measured and Indicated ---------------------------------------------------------------------------- Mt 619.42 ---------------------------------------------------------------------------- Cu % 0.38 ---------------------------------------------------------------------------- Au g/t 0.36 ---------------------------------------------------------------------------- Contained lb copper 5.14 billion ---------------------------------------------------------------------------- Contained Moz gold 7.16 ---------------------------------------------------------------------------- Inferred mineral resource ---------------------------------------------------------------------------- Mt 619.13 ---------------------------------------------------------------------------- Cu % 0.30 ---------------------------------------------------------------------------- Au g/t 0.32 ---------------------------------------------------------------------------- Contained lb copper 4.12 billion ---------------------------------------------------------------------------- Contained Moz gold 6.43 ---------------------------------------------------------------------------- Country: AUSTRALIA Owner in AUSTRALIA IRON ORE November 18: Atlas Iron has agreed to enter into good faith discussions with BHP Billiton Iron Ore concerning an integrated transport solution in Port Hedland. Atlas Iron and BHP Billiton Iron ore have agreed to consider point to point rail haulage on BHP Billiton‟s declared Goldsworthy line to the junction of BHP Billiton‟s Newman rail line. The companies have agreed to an independent feasibility study examining a multi-purpose ore car and truck dumping hub on the eastern side of the Goldsworthy junction and the construction of a conveyor to bulk stockyards at Utah Point in Port Hedland. Atlas is currently undertaking a DFS on its Turner River Hub (TRH) project to establish a centralised processing and haulage point to further increase its production rate from 6 Mt/y to 12 Mt/y by 2012. It is intended that the centralised plant would blend and process ore from 3 of Atlas‟ 4 North Pilbara iron ore projects (Wodgina, Abydos and Mt Webber) in preparation for transport to Utah Point via private haul road. This independent study will contemplate new options with the potential to deliver significantly improved efficiencies in ore handling systems. Atlas will continue with its Turner River Hub DFS in parallel with the proposed independent feasibility study, both due for completion by June 2011. IN DEVELOPMENT Country: SOUTH AFRICA Owner in UK PGM November 5: Pan African has concluded the formal Chrome Tailings Retreatment Plant (CTRP) agreement with International Ferro Metals SA (IFM) that will enable Phoenix Platinum Mining, Pan African‟s wholly owned subsidiary, to construct and commission a CTRP on IFM‟s Lesedi mine, in the Bushveld Complex in the North West Province, 50 km east of Rustenburg. The CTRP is a surface processing plant that extracts Platinum Group Metals (PGM 4E‟s), comprising 60.9% platinum, 21.9% palladium, 16.9% rhodium and 0.2% gold, from chrome tailings. Construction of the CTRP will begin immediately, with full production anticipated by end 2011. The Phoenix project has a total mineral resources and mineral reserves (SAMREC) compliant resource of 469,000 oz PGM 4E‟s (4.65 t at 3.15 g/t PGM 4E‟s in situ). The project is expected to produce 211,000 oz PGM 4E‟s at a plant recovery of 45% over the 17 year life of the operation with a planned annual retreatment capacity of 240,000 t. The total capital cost required to construct and commission the plant is estimated at ZAR104 million (£9.4 million). The capital cost for the plant will be funded from existing cash resource. The payment of ZAR80 million (£7.2 million) in phased tranches to IFM by Pan African will enable Phoenix to: site and build the CTRP on IFM‟s Lesedi mine; leverage off IFM‟s existing mining permits and licences; gain access to, and use of, existing infrastructure and services, substantially accelerating the commissioning of the project from three years to one year; enable Phoenix to expand the 20,000 t/month CTRP capacity to a potential 40,000 t/month; terminate the 25% net profit interest held by IFM in respect of the PGM 4E‟s contained in the Lesedi mine; purchase and own the property on which the CTRP has been built; and, secure additional tailings resources as a result of the geographical location.
  • 22. Pan African Chief Executive Officer, Jan Nelson: “At a conservative PGM 4E‟s basket price of $1,250/oz, the project is anticipated to have a profit margin of over $850/oz with a cash cost of less than $400/oz.” Country: LESOTHO Owner in CANADA DIAMONDS November 5: Lucara Diamond Corp reports excellent first results from the trial mining program at the Mothae diamond mine in Lesotho. Lucara is conducting a trial mining program to mine and process up to 720,000 t of kimberlite from the Mothae pipe to gather further data on diamond grade, size distribution and diamond value information following a previously completed successful 100,000 t bulk sample program. The bulk sampling and trial mining programs are in preparation for future commercial diamond production from the Mothae mine. Trial mining to date has recovered 2,101.73 ct of diamonds from approximately 86,928 t (dry) mined from the „C‟ kimberlite domain of the Mothae pipe. Included in this parcel are 97 stones between 2 and 5 ct in weight, 25 stones between 5 and 10 ct in weight, nine stones between 10 and 20 ct in weight, and three stones greater than 20 ct. The largest three stones recovered to date in this program are 53.53 ct, 37.24 ct and 20.26 ct. The process plant is designed to recover diamonds greater than 2 mm in size. Test work demonstrates that a significant proportion of the larger diamond recoveries, including all three of the stones exceeding 20 ct in size, are Type IIa diamonds which are the rarest and most valuable diamonds in the world. These early results are very encouraging for the potential of the mine. There are very few new diamond mines coming into production to meet the growing demand for quality diamonds and Lucara is developing two of them: Mothae as well as the recently announced AK6 diamond mine in Botswana (reported in the previous issue of International Mining Project News). In addition to the above, 77.65 ct of diamond were recovered from some 1,592 t (dry) of „F‟ domain kimberlite remaining on stockpile from prior bulk sampling work and used to commission the upgraded Mothae process plant. This brings the total parcel recovered to date in the trial mining program to 2,179.38 ct. William Lamb, Lucara‟s President and CEO: “Mothae continues to deliver great results with the coarse nature of the diamonds being recovered. The recovery of a 53 ct type II diamond from the first 3,000 t processed confirms our belief that Mothae will generate some of the rarest diamonds in the world. We are looking forward to the first open tender sale of diamonds from Mothae in the first quarter of 2011.” Trial mining is currently focused on the „C‟ kimberlite domain which is interpreted to make up the largest single domain of the Mothae Pipe. As trial mining progresses, work will focus on the higher grade „F‟ and „G‟ domains, the „H‟ domain which was not tested in prior bulk sampling work, and the „E‟ domain which was subjected to limited sampling in the prior bulk sampling program. The diamond recovery information is provisional, Mothae Diamonds intends to process all recovery tails over a grease recovery system as an audit of the performance of the X-ray diamond recovery system employed in the process plant. Tonnage estimates are based on daily plant weightometer readings and moisture content measurements to determine a dry tonnage estimate. The process plant is being operated by Minopex under contract to Mothae Diamonds. Diamond recovery and characterisation work is carried out independently by the diamond sorting staff of Remote Exploration Services, also under contract to Mothae Diamonds. Current tonnage and grade estimates are provisional and may be adjusted depending on results of planned audit work of X-ray recovery tailings and final tonnage reconciliation with survey volumes. Mothae Diamonds is jointly held indirectly by Lucara Diamond (75%) and the Government of the Kingdom of Lesotho (25%). One half of the interest held by the Government is free carried, and one half is paid through the Government‟s share of dividend. Country: BOTSWANA Owner in AUSTRALIA COPPER/SILVER November 5: Discovery Metals has successfully completed the institutional placement component of the equity raising announced on 4 November 2010. The A$51 million offer was priced at a 10% discount to the last trading price on 3 November 2010 and a 6% discount to the 5 day volume weighted average price ending 3 November 2010. Discovery Metals is focused on the emerging Kalahari copper belt in north-west Botswana. The company is currently developing its flagship wholly owned Boseto copper project towards production in Q2 2012. The Boseto copper project is host to a JORC compliant resource of 102.8 Mt @ 1.4% Cu & 17.3 g/t Ag containing 1.4 Mt copper & 57 Moz silver. In August 2010, the company completed a BFS and Development Plan which demonstrated the project can produce 34,400 to 36,500 t/y of copper for a 15 year mine life. Discovery Metals owns a 10,100 km2 tenement area along the Kalahari copper belt. The company has identified a number of copper anomalies and has earmarked $5 million for follow up exploration in 2011. The BFS examines the open pit mining of proved and probable ore reserves only for an initial 5 year period, with power provided by diesel generation. The Boseto Development Plan examines the continuation of mining beyond the BFS period, with mining of reserves plus inferred mineral resources via open pit methods and inclusion of the Zeta underground mine. The BDP covers a 15 year period and establishment of a coal fired power station to provide power. The total mineral resources and ore reserves for the Boseto copper project, at a cut-off of 0.6% Cu, are: Mineral Resources ZETA PLUTUS & PETRA TOTAL Mt Cu (%) Ag (g/t) Mt Cu (%) Ag (g/t) Mt Cu (%) Ag (g/t) Measured 3.9 1.6 23.0 0.1 1.3 11.4 4.0 1.6 22.7 Indicated 7.0 1.5 23.8 11.5 1.4 14.1 18.5 1.4 17.8 Subtotal M&I 10.9 1.6 23.5 11.6 1.4 14.1 22.5 1.5 18.7 Inferred 24.5 1.4 21.8 55.8 1.4 14.8 80.3 1.4 16.9 Total mineral Resources35.4 1.4 22.3 67.4 1.4 14.7 102.8 1.4 17.3 The mineral resource is inclusive of high grade ore reserves at a cut-off of 0.6% Cu; High Grade ore reserves ZETA PLUTUS & PETRA TOTAL Mt Cu (%) Ag (g/t) Mt Cu (%) Ag (g/t) Mt Cu (%) Ag (g/t) Proved 4.0 1.6 22.1 0.2 1.3 11.0 4.2 1.6 21.6 Probable 6.5 1.5 23.6 11.1 1.3 14.5 17.6 1.4 17.3 High Grade ore reserves**10.5 1.5 23.0 11.3 1.3 14.5 21.8 1.4 18.2
  • 23. Discovery Metals has prospecting licences covering 9,656 km2 along the Kalahari copper belt. The company has identified a number of exploration targets and has begun a $5 million exploration programme. Country: USA Owner in CANADA RARE EARTHS November 5: Formation Metals Inc has announced that a wholly owned subsidiary, Formation Capital Corp, has reported additional positive results from its recently concluded diamond drill program on its wholly owned Idaho cobalt project, located in Lemhi County, Idaho. Data from the program is being used to further assist in mine plan optimisation studies. In addition, split drill core samples collected will be used to conduct initial metallurgical test work to assess the economic viability of the extraction and separation of Rare Earth Elements (REE's) from the cobalt, copper and gold mineralised ore horizons. A total of 5,727 ft were drilled in six holes across 400 ft of strike in a previously untested area along the southern extension of the Ram deposit. The primary goal of the optimisation study is to maximise ore production as early in mine life as possible with a resulting positive impact on the overall economics of the project. The drill program, to date, has also confirmed economic ore grade mineralisation for an additional 230 ft along strike to the south and 200 ft down dip. The occurrence of REE's is closely associated with the cobalt, copper and gold mineralised horizons. Metallurgical test work will be used to determine the economic viability of extracting and separating the rare earths elements from the mineralised horizons to be mined from the deposit. Any potential future REE production would be considered by-product production with provisions for mining, milling and concentrating already included in the existing approved mine plan. Country: PERU Owner in CANADA SILVER November 5: Bear Creek Mining Corp has closed its bought deal short form prospectus financing through a syndicate of underwriters. Including the proceeds from the exercise of the over-allotment option, the total gross proceeds of the offering were $129.9 million. The company intends to use the net proceeds from the offering to fund the development of the company's Santa Ana project in Peru, to make property payments under the company's Corani project in Peru and for general working capital and other corporate purposes. Bear Creek has recently completed a PFS on its Corani project and a feasibility study on its Santa Ana project, which together estimate measured and indicated resources in excess of 500 Moz of silver of which over 320 Moz are in proven and probable reserves providing near-term production potential and excellent leverage to silver prices. The feasibility study for Santa Ana defines a low cost pure silver mine producing 4.6 Moz/y in the first six years of an estimated 11 year mine life. The PFS for the flagship Corani project estimates average annual production of 10 Moz for the first six years of an estimated 27 year mine life, with low cash costs and fast payback of capital costs. Santa Ana is proceeding towards permitting and construction while Corani is undergoing a feasibility study. Bear Creek, active in Peru since 2000, maintains exploration programs to expand resources at its two principal projects and make new precious metals discoveries. Country: CANADA Owner in CANADA DIAMOND November 5: Mountain Province Diamonds Inc has announced that the operator of the Gahcho Kué joint venture, De Beers Canada, has notified the Gahcho Kué Environmental Impact Review Panel that the Gahcho Kué Environmental Impact Statement (EIS) is on track for completion and submission before the end of 2010. The review Board is a co-management board responsible for the environmental impact assessment process in the Mackenzie Valley, where the Gahcho Kué project is located. Mountain Province President and CEO, Patrick Evans: "Completion and submission of the Gahcho Kué EIS will represent a key milestone in the permitting process of Gahcho Kué diamond project". Located in Canada's Northwest Territories, the Gahcho Kué project consists of a cluster of kimberlites, three of which have a probable mineral reserve of 31.3 Mt grading 1.57 carats/t for total diamond content of 49 million carats. A recently completed independent feasibility study indicates that the Gahcho Kué project has an ungeared IRR of 33.9% (excluding sunk costs) and can support an annual average production of 4.45 million carats over an 11 year mine life. Mountain Province is a 49% participant in the Gahcho Kué JV with De Beers Canada (51%). Country: AUSTRALIA Owner in AUSTRALIA IRON ORE November 5: WPG Resources Ltd has, on behalf of its wholly owned subsidiary Spencer Gulf Ports, lodged the Development Application for the construction of an ore storage and load out facility at Port Pirie. The DA has been lodged as a public infrastructure project sponsored by the Department for Transport, Energy and Infrastructure through the Office of Major projects and Infrastructure. The Port Pirie ore storage facility will be built to allow the export of iron ore from WPG‟s Peculiar Knob high grade direct shipping iron ore deposit south of Coober Pedy. WPG intends to take the decision to put this project into production later this year, with construction to be finished in 2011. The life of the Peculiar Knob mine on a stand-alone basis is 6 years. However the release by the Commonwealth on 5 November of an interim review of the Woomera Prohibited Area suggests that the Buzzard and Tui deposits at Hawks Nest could be developed within proposed new guidelines, which would extend a combined DSO project‟s life to more than 10 years. Peculiar Knob will be developed to produce 3.3 Mt/y of high grade iron ore fines. The Port Pirie facility will have the capacity to handle 7 Mt/y, and excess capacity will be offered to other exporters. In May 2010 the Commonwealth Government started a review of the Woomera Prohibited Area (WPA) in South Australia. The review is led by Dr Allan Hawke AC and the final Hawke report is due to be handed to government by the end of this year. Amongst other things, the interim Hawke report recommends the adoption of a smaller Core Area of Operations in the WPA than is currently the case, in which mining operations would not be allowed. This is referred to as the Red Zone. In other areas of the WPA access to land for mining and exploration purposes would be allowed, except for certain agreed times when Defence‟s activities would have priority on safety or national security grounds. Time sharing arrangements outside the Red Zone have been proposed.
  • 24. The Red Zone is confined to the south eastern corner of the WPA where most of Defence‟s infrastructure lies. WPG‟s Hawks Nest iron ore projects do not lie in the south eastern corner of the WPA. The interim Hawke report also recommends that mining outside the Red Zone be governed more by an agreed access and inspection regime than by the nature of foreign investment in mining projects or foreign buyers of mineral products. Country: ETHOPIA Owner in AUSTRALIA GOLD November 8: Nyota Minerals has announced that all shares in connection with the £21.58 million placing have now been issued by the company and admitted to trading on AIM and ASX. The funds will be used to continue to fast track development of the company‟s flagship Tulu Kapi gold project and the recently initiated regional exploration programme. Nyota CEO, Terry Tucker: “We look forward to delivering shareholders further drilling updates, the results of the PEA and initial findings from the airborne survey which is currently being conducted across Nyota's 3,550 km2 of land holding." Nyota is focused on the exploration and development of Tulu Kapi in Western Ethiopia, which comprises an area of approximately 3000 km2 where the company has established a total Inferred JORC resource of 1.38 Moz at a cut off grade of 0.50g/t Au. Country: GREECE Owner in UK GOLD November 8: European Goldfields has announced that another milestone has been reached in the permitting process for its project in Greece. The EIS submitted by the company‟s 95% owned subsidiary Hellas Gold for the development of the project has now been reviewed by the Greek Ministry of Environment Energy and Climate Change (MOE). The project consists of; Continuation of operations at the Mavres Petres deposit of the Stratoni mine. The next stages of the Olympias project, namely the mining and processing of ore and metallurgical treatment of the concentrate, in accordance with the business plan as originally submitted. The development of mining and processing at the Skouries project and of: The port facilities at Stratoni in service of the above projects‟ operations. The MOE acting through a Special Technical Committee has reviewed the EIS in detail and provided important guidance to Hellas Gold in concluding that the EIS conforms to relevant Greek and EU requirements. Country: ERITREA Owner in CANADA COPPER/GOLD/ZINC/SILVER November 10: Nevsun Resources provides a brief update on the Bisha project. Mine construction has continued as scheduled, with Nevsun completing the following during the course of Q3 and to date: Completion of substantially all civil, plate work, structural, mechanical and piping elements of the project Completion and establishment of operation of the power plant Completion of all major earthworks associated with the tailings management facility Installation of the liner for the tailings management facility required to support operations Commissioning of various mechanical equipment Pre-strip mining continued per plan and stock-piling of ore has started. Cost expenditures over the quarter were incurred as budgeted and the project remains on track to come within the targeted $260 million cost. Commissioning is progressing smoothly and the following targets are expected to be achieved in Q4. The Bisha project is a large precious and base metal-rich volcanogenic massive sulphide (VMS) deposit located 150 km west of Asmara, Eritrea, East Africa. Deposit mineralisation consists of gold and silver oxides, in addition to copper and zinc massive sulphides. The mine is expected to go into production in late 2010, and be a low-cost gold producer for the first two years, and a high- grade copper concentrate and zinc producer for the remaining mine life. Bisha's feasibility study estimates a 10-year mine life with metal prices conservatively based on $435/oz gold, $1.44/lb copper for the first five years ($1.28/lb thereafter), $0.57/lb zinc and $6.50/oz silver. Bisha is expected to produce gold at an operating cost of less than $250/oz, with copper operating costs ranging from $0.54-$0.67/lb, and zinc operating costs at $0.50/lb (including all royalties and credits). It is expected to produce 1.06 Moz of gold, 9.4 Moz of silver, 734 Mlb of copper, and over 1,000 Mlb of zinc. Bisha's mining and exploration licenses cover a contiguous area of 110 km2 . The Bisha Main and North West zone are both located within the 16.5 km2 mining license. Nevsun, through its Eritrean subsidiary, Bisha Mining Share Co (BMSC), holds the licenses. Under existing Eritrean mining legislation, the State of Eritrea has an automatic right to a free carried 10% interest and under an agreement with Nevsun has an additional 30% paid participating interest. This 30% contributing interest was agreed upon in October 2007, with a provisional $25 million payment made to Nevsun; the remaining balance to be paid to Nevsun will be determined by an independent valuator and shall be based on the net present value of 30% of the project, as evaluated upon the first shipment of gold from the mine. Country: AUSTRALIA Owner in AUSTRALIA VANADIUM November 11: Reed Resources has entered into a Memorandum of Understanding (MoU) with Chinese conglomerate China Nonferrous Metal Industry’s Foreign Engineering and Construction (NFC) for the Barrambie vanadium project in Western Australia. The MoU formalises discussions to date between Reed and NFC, specifically covering an EPC and project financing, and represents the next step towards the development of the Barrambie Vanadium Project, which is recognised as one of the world‟s highest grade, known vanadium deposits. The MoU envisages NFC will undertake the EPC contract for Barrambie in conjunction with West Australian based engineering and construction company Arccon. NFC will also assist Reed in securing debt and equity funding for the development of Barrambie. As part of the MoU, NFC and Arccon have agreed to provide Reed with an updated fixed-price EPC estimate by early 2011. The updated estimate from NFC will specify the use of Chinese equipment and services for the Barrambie project and Reed expects the updated estimate will deliver significant savings compared to the original DFS capital cost estimate of A$628.9 million.
  • 25. The involvement of both NFC and Arccon in the EPC consortium enables Reed to access the cost benefits of a Chinese contractor, whilst retaining appropriate Australian expertise and experience, to ensure Australian standards and work practices are adhered to and construction of the project can be executed smoothly. Reed and NFC are in discussions with banks and potential equity financing partners and will ensure the market remains fully informed about further developments as they arise. Reed DFS into the production of vanadium (FeV) from the Barrambie deposit in May 2009. Key results included: Average EBITDA per annum of A$105 million using an average ferrovanadium price of $30/kg and an exchange rate of A$1=US$0.60, along with; Operating costs of less than $20/kg of vanadium Initial mining reserve of 39.7 Mt of ore at a grade of 0.82% V2O5 Indicated and Inferred resource of 65 Mt of vanadium ore at a grade of 0.82% V2O5 Minimum of 12 years mine life at throughput of 3.2 Mt/y Capital cost estimated at A$628.9 million. Country: SPAIN Owner in IRELAND TUNGSTEN November 11: Ormonde Mining announced ongoing progress on its Barruecopardo Tungsten Project in Salamanca, Spain, following the Technical and Economic Review and Optimisation Study carried out by Scott Wilson Mining and reported in mid- September. Following a review of the open pit optimisation completed by Scott Wilson in September, drilling resumed at Barruecopardo in October with an infill program designed to reduce the drill spacing and upgrade relevant parts of the open- pittable portion of the Inferred mineral resources to Indicated status. Initial holes are being drilled on the southern part of the deposit, progressively moving north, and results will be reported as appropriate as the program proceeds. This drilling program is scheduled to be completed in February next year. The Base Case open pit optimisation study was carried out only on the Indicated portion of the current resource and encompassed 3.9 Mt of resource with an average life of mine grade of 0.43% WO3. The Scott Wilson report indicated that, at an open pit production rate of 500,000 t/y of ore for an initial mine life of 10 years, this would yield averaged production of 155,000 mtu/y of WO3 in concentrate, resulting in net operating cash flows of EUR9.3 million to 13.7 million per year at tungsten APT prices of $245/mtu and $290/mtu, respectively. Country: PANAMA Owner in CANADA COPPER November 11: Joint Venture Panama (JVP), a joint venture led by SNC-Lavalin (70%), has been awarded a contract by Minera Panama SA (MPSA), a wholly owned subsidiary of Inmet Mining Corp, to provide, initially, the basic engineering followed by EPCM services for the development of the Cobre Panama copper mine project in Panama. Preliminary engineering studies have estimated the capital cost of the project at over $4 billion. The Cobre Panama project involves an open pit mine; ore crushing, conveying and stockpiling facilities; concentrator and processing facilities; and ancillary systems and equipment including a tailings management facility (TMF), access roads, a utility corridor, power transmission and distribution lines, a filter plant, a concentrate storage facility, offshore dock marine facilities and a port. The process throughput initially will be a nominal 150,000 t/d increasing to a nominal 225,000 t/d from year 10. The mine life is expected to be 30 years. The initial phase of the EPCM contract will involve basic engineering for all facilities except the power plant and should take approximately 12 months. The process plant EPC contract will be awarded as a separate package at the end of the basic engineering phase in the first quarter of 2012 and SNC-Lavalin and its JV partners will be one of the bidders. Basic engineering will commence immediately in our Toronto office, with construction scheduled to commence late in 2011 or early in 2012. The project is scheduled to be operational in 2016. The Cobre Panama project hosts measured and indicated mineral resources of 32.7 Mt grading 0.36% copper and 0.06 g/t gold. These mineral resources include proven and probable mineral reserves of 21.4 Mt grading 0.41% copper and 0.07 g/t of gold. Inmet Mining expect Cobre Panama to produce 289,000 t/y of copper and 108,000 oz/y of gold (open pit) during the first 16 years of a 30 year mine life.; Country: MALAYSIA/AUSTRALIA Owner in AUSTRALIA RARE EARTHS November 9: Lynas Corp has signed a new long term supply agreement with a European Rare Earths consumer for the supply of Mount Weld Rare Earths to be produced at the Lynas advanced materials plant (LAMP) in Malaysia. The contract shall be for product supplied from the 11,000 t/y REO Phase 1 of the LAMP, which is on schedule for first feed of Rare Earths concentrate into the LAMP in the third quarter of 2011. The contract has an evergreen clause, allowing the contract to extend upon mutual agreement. Lynas‟ Executive Chairman, Nicholas Curtis: “Lynas is able to provide support to the market with production in 2011, and being the first new Rare Earths project into production outside China gives Lynas a significant advantage in developing close relationships with the market consumers. With six signed contracts and two letters of intent already in place the company anticipates further contract announcements over coming months”. Lynas owns the richest known deposit of Rare Earths, also known as Lanthanides, in the world at Mount Weld, near Laverton in Western Australia. The first feed of ore into the Concentration plant in Western Australia is on target for early 2011. The first feed of concentrate to the kiln at the LAMP in Malaysia is on target for the third quarter of 2011. Lynas has received all required approvals to construct both Country: SOUTH AFRICA Owner in SOUTH AFRICA COAL November 9: Keaton Energy Holdings Ltd has declared a 24% increase in the coal reserve of its 74% held, Mpumalanga based, Vanggatfontein project to 32.2 Mt - with 22.3 Mt in the proved category and 9.9 Mt in the probable category. The declaration is contained in an updated SAMREC-compliant East Resource Block: coal reserve and resource statement released by the company following further exploration drilling on the project and completion of a feasibility update report. The updated gross t in situ coal resource estimate for the East Resource Block is 84.2 Mt. Keaton Energy Managing Director Paul Miller: “With the 5-Seam plant currently being commissioned, 5-Seam coal being produced from the open pit and a run-of-mine stockpile in place, the Vanggatfontein project is well under way. The 2 & 4-Seam plant is under construction with first deliveries to Eskom expected in the second quarter of 2011”.
  • 26. Country: USA Owner in USA/CHINA GOLD/SILVER November 9: USCorp has provided further details with regard to its recently announced agreement (October 18, 2010) to form a joint venture to fund up to $125 million to develop gold and silver properties. USCorp has signed an agreement with a fully reporting public US company, which is the holding company of a major Chinese-based conglomerate with revenues in excess of $700 million annually, to form a joint venture to complete exploration and begin development of USCorp's mining properties. The US company has requested confidentiality until the joint venture is funded with an initial $25 million, which must take place on or before January 15, 2011. The agreement calls for USCorp to contribute to the joint venture the claims it presently owns in Arizona and California once the $25 million have been received. Initially the joint venture is expected to carry out the following: Completion of the drilling program at Twin Peaks in Arizona Initiating the drilling program at Picacho Salton in California Updating the mineralisation estimates in the company's Technical reports Completion of all engineering and permitting on the two projects Retirement of all existing debt Commencement of mining operations. This newly-formed joint venture entity will seek to raise an additional $100 million to expand its asset base. Reports from previous drilling show significant gold and silver mineralisation on the properties. USCorp's Twin Peaks property in Yavapai County, Arizona is near to, and on the same fault zone as the world famous Freeport-McMoRan mine in Arizona. USCorp's Picacho Salton Property, in California, is adjacent to both NewGold's open pit gold mine and the Goldcorp claims group in Imperial County California. Country: AUSTRALIA Owner in AUSTRALIA/CHINA IRON ORE November 9: Gindalbie Metals has advised that the $74.5 million share placement to its joint venture partner Ansteel, which formed part of the $206.4 million capital raising earlier this year, has been completed following receipt of final Chinese regulatory approval. The completion of the placement enables Ansteel to maintain its 36.12% interest in Gindalbie following the other elements of the capital raising completed earlier this year – a $111.8 million institutional share placement and a strongly supported Share Purchase Plan (SPP) to existing shareholders. The funds raised are predominantly being used to fund Gindalbie‟s equity share of the construction cost of the Karara project, as well as its equity share of the estimated $430 million working capital requirements for the project. Gindalbie‟s Managing Director, Garret Dixon, said the completion of the share placement to Ansteel marked the final stage of the $206.4 million capital raising undertaken earlier in the year. Dixon: “Construction of the mine site and all associated infrastructure required for our start-up, including Geraldton Port, is progressing well and we remain on track for first production in the first half of 2011.” Country: AUSTRALIA/CHINA Owner in AUSTRALIA/CHINA LITHIUM November 10: Emerging lithium producer, Galaxy Resources has finalised a capital raising of A$91.5 million to several investors, including the private investment company of the founder and major shareholder of Geely Automobile Holdings and Fengli Group (Hong Kong). Managing Director, Iggy Tan, said that both the convertible bond issue and equity placement will strengthen the company's capital base as it enters the final stages of development of its projects and moves closer to generating revenue through the first shipment of spodumene concentrate from Mt Cattlin, which is planned for the end of Q4 2010. "In an excellent endorsement for Galaxy's business model and projects, it is very pleasing to see two high quality, strategic investors support the Company on its growth plans" Tan said. Geely is a Hong Kong listed company principally engaged in the manufacture and sales of automobiles in China. Geely has a market capitalisation of $3.5 billion and reported turnover of about $2 billion in 2009. Fengli is a large, privately owned company based in Zhangjiagang city, Jiangsu Province, China. Fengli's main businesses are in mineral resource development, the manufacture and trade of steel, transportation and logistics, and foreign investment. It is the largest used metal processor and distributor in China. Galaxy intends to use the proceeds of the capital raising to fund the completion of construction and ramp-up of its Mt Cattlin and Jiangsu projects, as well as for working capital and the potential acquisition of other lithium-related projects. Galaxy is a Western Australian company which plans to become one of the world's leading producers of lithium comlb - the essential component for powering the world's fast expanding fleet of hybrid and electric cars. By 2011, Galaxy's Mt Cattlin mine will be the world's second largest producer of lithium mineral concentrate globally, and through the development of its 17,000 t/y lithium carbonate plant in Jiangsu province, China, it expects to be one of the largest and lowest cost lithium compound producers in China. Country: ARGENTINA Owner in UK GOLD November 10: Patagonia Gold (PGSA) has announced that construction of the 50,000 t heap leach pad (HLPAD) at the Lomada de Leiva project, located in the Santa Cruz province in Argentina, is progressing ahead of schedule with the completion of earthworks and civils. PGSA has also initiated a resource infill and extension drill program, consisting of 38 diamond HQ drill holes for 4,700 m, targeting the inferred and peripheral mineralisation at Lomada de Leiva and surrounds. The Lomada de Leiva gold-heap leach project (Lomada project) is located on the La Paloma property block approximately 40 km to the south of the town of Perito Moreno and currently contains a NI 43-101 compliant resource of 161,346 oz of gold in the measured and indicated categories with a further inferred 73,725 oz Au. The first stage of the Lomada project consists of constructing a 50,000 t trial heap leach pad and plant, which based on 70% recovery, is estimated to yield approximately 2,200 oz. of gold for the first 6 m loading. A reverse circulation (RC) grade control drill program, consisting of 89 drill holes for 2,645 m, has now been completed with a total of 2,660 samples collected and submitted for testing.
  • 27. Drill and blasting of the first 20,000 t ore package is scheduled for mid November with mining, hauling and loading of ore onto the HLPAD to commence soon after for completion by year end. Construction of the concrete footings and base area for the processing facility is in progress. The facility is scheduled for completion with commissioning planned for early Q1, 2011. Irrigation of the heap leach pad will then commence with the production of the first gold soon thereafter. Subject to successful leaching and additional permitting, further loading and production from the first stage heap leach will continue until the main 5 million t heap leach project is fully operational, scheduled for Q4 2011. The features of the main heap leach project are: Low pre-production capital of $8.5 million Production of 21,000 oz/y of gold, for a mine life of 7 years, at a cash cost of $299/oz. Project cash flow before tax, of $63.6 million, based on a cash price of $850/oz gold. There is significant potential to increase the mine life at Lomada de Leiva with further drilling on the remaining inferred resource not included in the main heap leach project, together with additional extension and exploration drilling on Lomada de Leiva and the adjacent Breccia Sofia prospect. Country: SOUTH AFRICA Owner in UK PLATINUM November 10: Jubilee Platinum has provided an update on the significant progress made by the company. The company has announced a wide ranging update on its operations in Southern Africa with tangible progress being made on multiple projects. Due to extended confidential negotiations with Northam Platinum to jointly construct a ConRoast furnace, the company is unable to provide forecasts until the MOU has become binding. The company expects the MOU to be concluded during January 2011 after which it hopes to provide forecasts. Leon Coetzer, CEO: “The implementation of the new ConRoast facility is progressing well and the project team is driving hard to secure all long lead items to adhere to the project timelines. The drilling program on Tjate continues to illustrate the quality of this asset. Our near term deliverables are clearly set on the commissioning of the new ConRoast Facility and delivering the feasibility study of Tjate while we continue to grow early revenues from our Middelburg smelting operation.” Middelburg Facility Jubilee acquired a 70% shareholding in the Middelburg ferro-alloy smelting plant earlier in 2010 to expedite the construction of its ConRoast platinum processing facility. The key features of the existing Middelburg plant are: - Strategically located in the eastern region of South Africa near the emerging new platinum mines with easy access to a national highway for ease of transport; Secure own power available on-site to meet the requirements of the expanded processing facility; Existing smelting infrastructure to support the expansion of the processing facility to include the ConRoast Process; Existing platinum process licences; and The potential ability to derive early revenue from the processing of ferro-alloys, which are complementary to the Jubilee processing division. Although not the core reason for the acquisition by Jubilee, the existing alloy smelting facility is targeted to be profitable by the end of November 2010. Trial smelting for ConRoast smelter scheduled for Q2 2011. This smelter is outside of the Northam MOU and will be the first to be built to a commercial scale. Due to the engineering design work taking longer than originally thought, the company has delayed the start-up of this smelter by 3 months. Framework agreement with Sylvania extended to 2011. The binding agreement with Sylvania envisages the formation of a jointly-owned company to mine and concentrate tailings and a smelting company, controlled by Jubilee. We understand that Sylvania is current finalising a feasibility study on its low grade bulk tonnage palladium-rich project on the Bushveld‟s Northern Limb. Resource definition and step out drilling at Tjate progressing well. The drill programme to demonstrate down-dip continuity is progressing well and is on schedule to complete before year end. Important social and environmental base-line studies are ongoing as part of the PFS which is scheduled for delivery in 2011. Drilling commences in Madagascar. A contract has been awarded to a local company in Madagascar to drill the Ambodilafa nickel early-stage exploration project which has restarted after a period of geopolitical uncertainty. Country: SOUTH KOREA Owner in AUSTRALIA TUNGSTEN/MOLY November 10: Woulfe Mining Corp has located and secured all equipment required for the front-end truck discharge and primary crushing area for its Sangdong tungsten-molybdenum project in South Korea. The package is of new equipment that has been procured at a heavily discounted rate from a cancelled contract and comes with all technical documentation intact, including design drawings. With slight modification by Woulfe, the equipment will be incorporated into the Sangdong project. Brian Wesson, President and CEO of Woulfe: “This first package of equipment represents approximately 20% of that which will be required for the processing plant at Sangdong. This purchase is another example of using existing relationships to fulfil our objective of locating and procuring the best quality equipment at the lowest possible cost.” The company's current projects include the Sangdong tungsten-molybdenum mine, historically, one of the largest tungsten mines in the world; the Muguk gold-silver mine, formerly South Korea's largest gold mine, as well as a number of other properties with significant known mineralisation and excellent regional exploration potential. Country: CANADA Owner in CANADA POTASH November 10: Potash One has announced that the Saskatchewan Ministry of Environment has approved the Legacy project's EIS. Robert Friedland, Chairman of Potash One: "This landmark approval sets the stage for the development and operation of Saskatchewan's first greenfield potash production facility in almost 40 years. Licensing to permit construction will now commence." Potash One recently released the results of a feasibility study on the Legacy project, located in one of the world's richest potash regions 80 km northwest of Regina, Saskatchewan, Canada. The study projects an economically robust solution mine with the capacity and reserves to initially produce 2.86 Mt of potash product every year for an initial 47 years. Production, upon securing financing, is anticipated to start in the third quarter of 2014.
  • 28. The company owns 100% of more than 515,000 acres of potash subsurface exploration permits in Saskatchewan, Canada. It includes the Legacy project which is located in the southern portion of the 97,240 acre KP 289 permit where previous mineral resources have been up-graded to 27.3 Mt of recoverable KCl proven reserves from material grading 28.6% KCl and 108.5 Mt of recoverable KCl probable reserves from material grading 29.0% KCl. The total proven and probable reserves is 135.8 Mt of potassium chloride from material with a weighted average grade of 28.9% KCl. Indicated resources of 80.1 Mt of KCl are estimated from material grading 27.05% KCl. Inferred resources of 859.4 Mt of KCl are estimated from material grading 26.9% KCl. Country: AUSTRALIA Owner in AUSTRALIA GOLD November 11: AngloGold Ashanti and the Independence Group has approved development of the Tropicana gold project in Western Australia. AngloGold Ashanti has a 70% interest in the project, which is located 330 km east-northeast of Kalgoorlie in WA, and Independence Group has 30%. The approved project will produce 3.45 Moz of gold over a 10 year mine life at a cash cost of A$710-A$730/oz ($696/oz- $715/oz). In the first three years of operation, gold production will be between 470,000-490,000 oz/y at a cash cost of A$580/oz-A$600/oz ($568/oz-$588/oz). Capital expenditure, including pre-production operating costs, is estimated at A$690-A$740 million (Real) or A$725-A$775 million (Nominal – including escalation). The higher production rate in the first three years will contribute to accelerated payback. Discovered in a remote, barely-explored area not previously thought prospective for gold, Tropicana is the most significant gold discovery in Australia for more than a decade. Construction will begin in the June quarter of 2011 and first gold is anticipated in the December quarter of 2013. The decision to commit to development follows the successful outcome of a BFS based on open cut mining of the Tropicana and Havana deposits. The approved project will use conventional drill and blast, truck and excavator open cut mining methods carried out by a mining contractor. The 5.8 Mt/y capacity (fresh ore) process plant has been designed for water and energy efficiency, with the comminution circuit comprising two-stage crushing, high pressure grinding rolls and ball milling, followed by a carbon-in-leach circuit for gold recovery. The BFS was based on a Proved and Probable reserve of 48 Mt grading 2.2 g/t for 3.4 Moz of gold. The BFS mining inventory totalled 59 Mt grading 2.0 g/t for 3.8 Moz. Whilst the initial mine life is estimated at 10 years, the joint venture partners are confident this can be extended. Step-out exploration drilling in late 2009 returned significant results from the Boston Shaker prospect, which lies approximately 360 m north of Tropicana resource. Drilling to date has identified the faulted offset of Tropicana mineralisation over an 850 m strike length and the mineralisation remains open at depth. An open pit scoping study based on data available to July 2010 has been completed on Boston Shaker and indicates that an expansion to the current BFS open pit resource is highly likely. Boston Shaker progressed into full feasibility study in September 2010, with completion targeted for the first half of 2011. The recently-completed Havana Deeps scoping study, based on drilling data to the end of July 2010, indicates the potential viability of underground mining at Havana Deeps. Although it is too early to determine the scale or timing of underground mining it could commence in parallel with open pit mining. It is anticipated that Havana Deeps will progress into a PFS in early 2011. Work is in progress to incorporate the results of the Boston Shaker and Havana Deeps scoping studies, along with subsequent drilling results, into a revised resource estimate by year-end. Encouraging intersections have also been returned by recent infill RC drilling at the Crouching Tiger prospect, 250 m south of the Havana South BFS pit outline, including 11 m @ 5.27 g/t from 102 m, 13 m @ 1.47 g/t from 147 m (including 7 m @ 2.27g/t) and 10 m @ 1.69 g/t (including 4 m @ 3.24g/t). Graham Ehm, EVP Australasia, said Tropicana would add to production from the 100% owned Sunrise Dam mine to lift AngloGold Ashanti's Australian gold output to 600,000 oz/y by 2014. Tropicana gold project October 2010 Proved and Probable reserves; Category T (Mt) Gold Grade (g/t) Contained Gold (Moz) Proved 24 2.3 1.8 Probable 24 2.1 1.6 Total 48 2.2 3.4 Country: CONGO Owner in AUSTRALIA COPPER November 12: Tiger Resources has begun mining operations at the Kipoi copper project in the Democratic Republic of Congo (DRC). On 8 November 2010 mining of ore and waste material started at the Kipoi Central deposit. Mineralisation at Kipoi Central is exposed at surface and the ore grade material is being stockpiled as future feed for the HMS plant. Some of the waste material will be used as construction material for infrastructure developments on site. The HMS plant has been completed and will be erected at Kipoi from December 2010. Tiger is on schedule to start commercial production in the first quarter of 2011. The company plans to produce approximately 35,000 t/y of copper for three years from the first stage of the development at Kipoi. The Kipoi project covers an area of 55 km2 and is located 75 km north‐north‐west of the city of Lubumbashi in the Katangan Province of the DRC. The project contains a 12 km sequence of mineralised Roan sediments that host at least five known deposits: Kipoi Central, Kipoi North, Kileba, Judeira and Kaminafitwe. The company has reported JORC standard resources at three of the deposits. The principle deposit is Kipoi Central which contains a zone of high grade copper mineralisation within a much larger lower grade global resource. The company proposes a staged development at the Kipoi project. The high grade zone of mineralisation at Kipoi Central is proposed to be exploited during the Stage 1 development. During the three year life of Stage 1 a total of 900,000 t/y of 7% Cu is planned to be processed through a HMS plant to produce the equivalent of 35,000 t/y of copper.
  • 29. The company is currently undertaking a feasibility study to evaluate the economic viability of constructing an SXEW plant (Stage 2) targeted to come on stream within three years of the start of the HMS operation. It is envisaged that ore from Kipoi Central, Kipoi North and Kileba South and the other deposits within the Kipoi project and within the nearby Lupoto project would be processed at the Stage 2 phase. Country: AUSTRALIA Owner in AUSTRALIA IRON ORE November 15: Centrex Metals has announced a multi-mine production plan for South Australia which represents a significant new strategy for the company‟s iron ore mining ambitions and project focus on Eyre Peninsula. Priority will now be given to delivering maiden production in the company‟s first years as a producer from the rolling introduction of multi mine sites, replacing the previously announced plan for a single site start-up. Centrex said iron ore would most likely be exported through the company and joint ventures‟ own new $150 million wharf at Sheep Hill, north of Port Lincoln. Completion of China-backed agreements has allowed and prompted an intense „everything on the table‟ review of all project options for Centrex‟s portfolio of hematite and fully exploration funded magnetite assets. These assets are in an almost continuous corridor from near Port Lincoln along the coast and into southern and central Eyre Peninsula. The review identified that the original intent to develop the 13.3 Mt Indicated hematite resource at Wilgerup, near Lock, to now be less of a priority. The objective is to develop a higher value, large capacity, long-term magnetite-based focus commencing with 3-10 Mt/y magnetite concentrate in 2014/2015. This is expected to see first iron production delivered onto the Sheep Hill wharf for export in 2014/2015 – with the Wilgerup hematite likely to be first ore mined and exported but closely followed by higher magnetite volumes from the JV projects. Here, the JV partners are targeting an Inferred resource of more than 500 Mt within two years. David Klingberg, Chairman of Centrex: “It is the successful completion of both joint venture negotiations in June and July which will see WISCO contribute $78 million to Centrex, a further $75 million to the joint venture and potentially additional rewards to Centrex if Inferred resource milestones over and above 1.25 billion t are met. “In the second joint venture, Bungalow, with Baotou, this three stage partnership has so far contributed $8 million and could contribute up to $40 million to the joint venture, subject to achieving certain milestones. As a result, substantial drilling programs have started on both joint venture tenements and results so far from the Bungalow joint venture are encouraging. Current expectations are that drilling results for Bungalow will be modelled for the purposes of determining an initial Bungalow Inferred resource by mid 2011. “We expect first assays results to be available early in 2011. Environmental and process engineering work is proceeding on both joint ventures as critical inputs to prefeasibility studies.” Centrex also announced today that work was now advancing rapidly on environmental and engineering scoping for the Centrex/JV‟s ambitions to have their own bulk commodities deepwater port at Sheep Hill ready to handle their own mine multi- mine production from 2015. “We plan to lodge with the South Australian Government, and within the first quarter of calendar 2011, a development Application for the port,” 2013 construction start Jim White, Centrex Metals‟ MD: “We expect to lodge the Sheep Hill port development Application early next year – 2011 – with first port work underway by the second half of 2012. By no later than 2012, Centrex will be starting to make project investment decisions about Eyre Peninsula, worth more than one billion dollars.” He said the Sheep Hill port would be available on a commercial basis for other bulk commodities users. Initial estimates suggest a construction cost of A$150 million for a wharf that is within 27 kilometres of existing rail network. The project is listed in the priorities table of Infrastructure Australia. The site is also within 25 km of the WISCO JV area, less than 100 km from the Bungalow ground and only 120 km from Wilgerup. The Centrex-WISCO JV area contains 70 km of known magnetic BIF anomalies and already has an Inferred resource of ~200 Mt of magnetite BIF from less than 10% of the magnetic strike length within the JV area. WISCO expects that the initial targets have the potential for a >300MT resource and a total resource >500Mt. Baotou already owns 10% with potential to earn up to 50% if the Bungalow tenement just north of Cowell. The JV aims to define an Inferred resource of >200Mt by late 2011-early 2012 with PFS commencing immediately the resource is defined. A BFS on Bungalow is expected to commence late in 2012-early 2013 – amid aspirations of first production at a rate of up to 5 Mt/y by the third quarter of 2016. Country: TURKEY Owner in CANADA GOLD November 15: Anatolia Minerals Development has announced the company, through two of its subsidiaries Anagold Madencilik Sanayi Ve Ticaret Anonim Sirketi (Anagold) and Kurudere Madencilik, entered into a $25 million three year credit facility with Standard Bank. Edward Dowling, President and CEO of Anatolia: "An enormous amount of work has been accomplished at Çöpler and key production systems are currently being tested and commissioned. The current schedule shows the first gold pour will occur in mid-December; however, unanticipated events could push this important milestone into January.” An internal preliminary economic assessment of the mining, processing and recovery of gold from the sulphide resources at Çöpler was completed earlier this year. The results supported advancing the sulphide project to pre-feasibility level engineering. During Q3 2010, metallurgical test work was undertaken along with preliminary mining and process engineering design. Work was also focused on developing capital cost and operating cost parameters. Management plans to complete and announce the results of this work during the first quarter of 2011. Previously, management expected to announce this study during Q4 2010. Work to date has produced favourable results and additional optimisation is being advanced through a value engineering exercise coordinated with corresponding resource modelling and mine planning.
  • 30. Country: MONGOLIA Owner in CANADA COAL November 15: Prophecy Resource Corp has reported that a Detailed Environmental Impact Assessment (DEIA) pertaining to the construction of a pit-mouth 600 MW coal fired power plant by Prophecy's 1,200 Mt Chandgana coal project has been approved by the Mongolian Ministry of Nature and the Environment. According to the preliminary plan of construction as outlined in the DEIA, the 600MW power station will be built and put into operation within 20 months and supply electricity through connection of 220 KW electricity transmission lines from the power plant to the Central Energy System (150km away) and Eastern Energy System (60km away). 2 x 220 kV Central Electricity System (CES) transmission lines power 90% of Mongolian electricity demand. Furthermore, Chandgana is right on the path of a Government approved future CES grid extension. John Lee, CEO of Prophecy Resource:"The DEIA approval is a major milestone clearing the way for full scale permitting in early 2011." Chandgana is approximately 1,000 km from Beijing and 350km from the Chinese border. Mongolia's Choibalsan City, where Mongolian East Energy System ends, is merely 70km from the Chinese border. The initial 2x300 MW power plants will be serviced by 2.4 Mt of coal annually from Prophecy's 150 Mt Chandgana Tal coal project with a strip ratio of 0.5 to 1. Future plant expansions will be serviced by Prophecy's 1,050 Mt Chandgana Khavtgai coal project (9 km from Tal) with a strip ratio of 2 to 1. Chandgana Tal has a renewable 40-year mining license and the coal mine can be fully commissioned within 90 days. Measured Indicated Heating Value Ash Sulfur Strip Thickness Khavtgai 524.3 Mt 545.7 Mt 4,354 kcal/kg 12.66% 0.72% 1.9:1 37.7 m Tal 141.3 Mt 4,238 kcal/kg 12.49% 0.68% 0.53:1 45.4 m Total 665.6 Mt 545.7 Mt Country: AUSTRALIA Owner in AUSTRALIA COPPER/GOLD November 16: Sandfire Resources has announced a $102 million equity raising to underpin initial development and ongoing exploration of its DeGrussa copper-gold project in Western Australia, positioning it to commence construction in 2011 and deliver first open pit production by the end of that year. The equity raising will raise about $72 million, and a underwritten institutional placement is hoped to raise a minimum of $30 million.The proceeds of the raising will be used, together with Sandfire‟s existing cash resources of approximately $35 million, to assist in funding: completion of the current PFS scheduled for this quarter and the DFS of the DeGrussa project scheduled for the end of the first quarter of calendar 2011; completion of other pre-development and infrastructure activities required for the DeGrussa project, as well as completion of the approvals process; pre-stripping of the initial open pit, which is targeted to commence, subject to receipt of approvals, in the second quarter of calendar 2011 to extract the high grade near-surface oxide and chalcocite material which lies above the main ore bodies. A portion of this has been classified as direct shipping material, with first production targeted by the end of 2011; deposits to be placed for the acquisition of key long-lead items for the proposed 1.5 Mt/y concentrator; and working capital. Sandfire‟s Managing Director, Karl Simich, said the proceeds of the raising would enable the company to maintain the current development momentum at DeGrussa and move from Pre-feasibility through feasibility and into construction and development scheduled for the middle of next year. Sandfire recently announced plans to increase the targeted design throughput rate for the DeGrussa processing facility to 1.5 Mt/y following the Phase III resource upgrade to 10.67 Mt grading @ 5.6% copper, 1.9 g/t gold, 15 g/t silver (containing 600,000 t copper, 660,000 oz gold, 5.1Moz silver). Sandfire expects to announce a further update to this resource inventory later in November following completion of in-fill drilling and a revised resource estimate for the dispersion zone of near-surface oxide copper. Country: RUSSIA Owner in RUSSIA COPPER/GOLD/IRON ORE November 15: OJSC MMC Norilsk Nickel is moving to the next stage of its project in Zabaikalye Territory, which is being implemented by the company jointly with the state as part of the mineral resources development program. The company plans to begin designing mining and processing plant at Bystrinskoye deposit ahead of the approved schedule. Norilsk Nickel says it has completed all necessary exploration work and is preparing the development of the deposits. The company and the state through its RF Investfund will invest over RUB104 billion in the project. Norilsk Nickel itself will invest over RUB 80 billion of which 72.358 billion will be invested in the development of Bystrinskoye and Bugdainskoye deposits and 8.059 billion in railway construction: a 223 km rail track to connect Naryn-1 (Borzya) with Gazimursky Zavod. Railway construction is to be finalised by 2012. The construction of mining and processing plants will commence in 2012-2013 and will be completed upon phased commissioning of the production facilities over the period of 2015-2016. Vladimir Strzhalkovsky, Chairman of the Management Board of Norilsk Nickel: “The project in Zabaikalye is very important in terms of the company‟s further growth and diversification. The project will enable increasing significantly mid-term and long- term production of copper and add new products – molybdenum and iron ore to our product line. It will also strengthen the company‟s position in Asia.” This is a national-scale investment project to be implemented within the framework of public-private partnership by two partners: Investfund of the Russian Federation and Norilsk Nickel. The projects are in the southeast of Zabaikalsky Territory,
  • 31. Chita Region. Total investments in the project will amount to RUB104.597 billion. The scope includes: 1) co-operative construction of a railway line (223 km) from Naryn-1 station (Borzya) to Gazimursky Zavod; 2) development of Bystrinskoye and Bugdainskoye mineral deposits by MMC Norilsk Nickel alone (projected life-of-mine is about 30 years). The project is expected to produce: Bystrinsky GOK: Copper in concentrate – 62,000 t/y Gold in concentrate – 6.3 t/y Iron in concentrate – 2.113 Mt/y Bugdainsky GOK: Molybdenum in concentrate – 9,800 t/y. In June 2007, Norilsk Nickel and the Federal Railway Transport Agency of the Russian Transport Ministry (Roszheldor) signed an investment agreement covering the construction of transport infrastructure for the development of mineral deposits in the southeast of Chita Region. The agreement provided for the construction of Naryn – Lugokan railway line and development of five mineral deposits: Bystrinskoye, Kultuminskoye, Lugokanskoye (copper sulphides), Solonechenskoye (antimony–gold) and Bugdainsloye (gold–molybdenum–porphyry). It was envisaged that 69% of the railway construction costs would be financed by the Russian Investfund and 31% by Norilsk Nickel. Industrial development of mineral deposits would be carried out solely at Norilsk Nickel‟s expense. Norilsk further reports: “As became evident in the course of on-site exploration that took place along with economic environment deterioration, three mineral deposits out of five initially selected could not ensure a viable rate of return. Having analysed the situation, the company suggested that the Russian government revise the project parameters so as to shorten the railway line and exclude three uneconomic mineral deposits from the scope of the project. Co-ordination of these modifications with interested ministries and agencies was completed in summer of 2010, and on October 25, 2010 a governmental decree was signed confirming the changes in the investment project certificate. Country: ECUADOR Owner in USA GOLD November 15: International Minerals Corp has signed Memoranda of Understanding with a Chinese company, China CAMC Engineering Co for the financing and construction of IMZ‟s Rio Blanco and Gaby gold projects in Ecuador. IMZ currently holds a 100% interest in the Rio Blanco project and variable interests in the mineral concessions comprising the Gaby project, ranging from 51% to 100%. Based on the terms of the MOUs for the projects China Co would: Arrange the required production debt financing for the projects Construct and deliver turnkey mining operations for the projects, based on an EPC contract. The projected timeline for construction of the projects is dependent on several factors: At Rio Blanco, a feasibility study has already been completed (February 2006) and detailed engineering is 90% complete. Approval of the Environmental Impact study (EIS) for construction of a mine was well advanced prior to the suspension of all exploration activities in Ecuador by the Ecuadorian government. The EIS approval process is expected to resume shortly and it is hoped that approvals can be received by IMZ in the first half of 2011. It is anticipated that the earliest that production could commence at Rio Blanco would be late in 2013 or early 2014. At Gaby, although a preliminary feasibility study has been completed by IMZ with an estimated 6.9 Moz Au in the Measured and Indicated resource category, the time line will be longer than Rio Blanco because a feasibility study remains to be completed. Below are the key parameters of the Rio Blanco project; Proven & probable reserves: 605,000 oz gold and 4.3 Moz silver, contained in 2.2 Mt at 8.8 g/t gold and 62 g/t silver. Estimated average annual production: approximately 70,000 oz gold and 400,000 oz silver. Total cash costs: approximately $300/oz gold Initial mine life: 7.5 years at 800 t/day production (underground). cash flow: approximately $246 million at $1,000/oz gold and $405 million at $1,300/oz gold. Below are the key parameters of the Gaby project (on a 100% project basis) Measured and Indicated resources: 6.9 Moz gold contained in 356 Mt at 0.6 g/t gold Inferred resources: 2.9 Moz gold contained in 143 Mt at 0.6 g/t gold Estimated average annual production: approximately 330,000 oz gold. Total cash costs: approximately $700/oz gold. Initial mine life: 16 years at 60,000 tpd production (open pit). cash flow: approximately $900 million at $1,000/oz gold and $3 billion at $1,300/oz gold. Country: USA Owner in USA URANIUM/VANADIUM November 16: Energy Fuels has provided an update on its license application for the Pinon Ridge uranium and vanadium mill located near Naturita, Colorado. As of this date, all the necessary technical responses have been filed. The company is now awaiting a decision from the State. Once the draft decision is reached, a 60-day public comment period will occur after which the Radiation Program will make its final decision. Stephen Antony, President and CEO of Energy Fuels: "A positive decision from the State would represent the first uranium mill permitted in the United States in 30 years and will enable Energy Fuels to continue the aggressive pursuit of our consolidation and development plan for the historic Uravan mineral belt uranium/vanadium district".
  • 32. Country: USA Owner in CANADA GOLD/SILVER November 16 RX Exploration has received approximately $17,750,000 from the exercise of 44,849,474 common share purchase warrants since July 1, 2010, the beginning of the company‟s financial year. It is proceeding with a number of initiatives relating to the development or further exploration of the Drumlummon mine, Marysville, Montana, USA. A new 757 m main decline is currently being driven to access the 600 level of Drumlummon. This decline will provide a secondary access/escape way into/from the Charly Vein workings and an additional ventilation airway. It will also enable the company to build toward an extraction capacity estimated at 1,500 t/d of mill feed and waste rock, and provide a platform from which to diamond drill unexplored portions of the Drumlummon, Frankie and Empire Veins at depth. Metallurgical test work is continuing at the leased Philipsburg mill with feed being provided by a test mining program operating from the 400 level access tunnel. A 14,000 m diamond drilling program, to be conducted over a period of about eight months from both surface and underground, is also underway. Drumlummon is a past producing high-grade, bonanza-type, epithermal underground gold and silver mine in Montana. Ore from a current test mining program is being trucked to and processed in a leased mill located in Phillipsburg, Montana. Country: USA Owner in USA COPPER November 16: Augusta Resource Corp has delivered a full draft of the Environment Impact Statement (DEIS) to the US Forest Service, Coronado National Forest for internal review. Upon completion of these reviews the DEIS will then be printed and released to the public, which starts the 90 day public consultation period. The company anticipates the release of the Rosemont DEIS and subsequent public hearings to be scheduled for early 2011. Augusta's wholly owned Rosemont deposit is expected to produce 221 Mlb/y of copper once it begins production in 2012, accounting for as much as 10% of US copper output. In addition to copper, Rosemont will produce significant amounts of silver and molybdenum over its 20 year mine life. As of January 2009, Rosemont has proven and probable mineral reserves containing 546 Mt grading 0.45% copper, 0.015% molybdenum and 0.12 oz/t silver in sulphide ore, and an additional 70 Mt at 0.17% copper in oxide ore. Country: CANADA Owner in CANADA/JAPAN COPPER November 17: Copper Mountain Mining (CUM) reports construction work on its Copper Mountain project continues on schedule and as planned. On November 18 the company with SMS and Komatsu celebrate the commissioning of the mine‟s new production shovel, a Komatsu PC 8000. The shovel being delivered to Copper Mountain is Komatsu‟s 75th PC 8000 hydraulic shovel produced globally. Preproduction mining activities are planned to commence with this main loading unit and the seven 240 t capacity haulage trucks that are already on site. The second half of the mining fleet, including a second PC8000, is scheduled to be on site by April 2011. Preproduction mining will start in the Pit 3 area with a push-back on the western wall. A total of 24 Mt of material is scheduled to be moved prior to the mill startup in May 2011. Delivery of the SAG and ball mills occurred in late summer and assembly is well underway as is the erection of interior structural steel and access platforms. Installation of various other major pieces of equipment in the mill is progressing well. The new substation has been connected to the BC Hydro grid and has been energized to provide site power. Installation of the fresh, reclaim water and tailings management facility pipeline is well advanced, and expected to be completed by month end. Construction of the overland conveyor connecting the primary crusher to the concentrator via the reclaim tunnel is on target. The overall schedule for the project remains unchanged with construction planned to be completed by the end of April 2011 for plant commissioning in May and in full production in June 2011. CUM owns 75% and Mitsubishi Materials Corp owns 25% of the Copper Mountain project. The mine site is located 15 km south of the town of Princeton in southern British Columbia. The project has a current resource of approximately 5,000 Mlb and aims to produce some 100 Mlb/y of copper by mid 2011. Country: KAZAKHSTAN Owner in KAZAKHSTAN COPPER/GOLD November 18: Kazakhmys announces that a draft feasibility study for the Bozshekul project has been completed by the study contractor Aker Solutions. Following on from the results of the study, further drilling work is being carried out. This will provide additional data, particularly on the gold resource, and assist in the development of the mine plan. The drilling will be completed in the first half of 2011 and a revised feasibility study is scheduled to be issued in Q4 2011. Basic engineering for the project, also carried out by Aker Solutions, has started and should be completed during 2011. Several larger items with long delivery times, notably the mills and drive systems for the comminution circuit, have been ordered and some $90 million has already been committed. Based on this timetable, first ore will be produced by the end of 2015. See also Country: ZAMBIA Owner in UK LEAD/ZINC November 18: Berkeley Mineral Resources (BMR), engaged in the processing of tailing dumps at Kabwe in Zambia, has raised a total of £6.6 million before expenses by way of a placing. The net proceeds of the placing will be used, following the completion of the proposed acquisition of the additional tailings dumps at Kabwe, to fund the construction of the processing plant which will be sited at the Kabwe mine. The Directors believe that the net proceeds of the placing, together with existing cash resources of the company, will be sufficient to substantially fund the construction and commissioning of the planned zinc and lead processing plant and provide working capital to commence operations. Completion of the acquisition of the tailings dumps at Kabwe has not yet completed and finalisation of the necessary documentation is continuing. Masoud Alikhani, Chairman of BM R: “We are looking to complete the acquisition at Kabwe as soon as practicable especially as the capital costs of our planned processing plant are now substantially funded. This will allow our team to focus on generating cashflow, harnessing the full potential at Kabwe and continuing to investigate the further opportunities which we see in the tailings processing sector.” The Kabwe deposits, located some 110 km north of the Zambian capital Lusaka, were discovered in 1902. From 1906, Kabwe was a significant mine. By the time it closed in 1994, due to depletion of the massive sulphide mineralisation and lowered metal prices, it had produced about 1.8 Mt of zinc, 800,000 t of lead, 7,800 t of vanadium pentoxide and lesser quantities of cadmium, silver and copper. After closure, most of the mine complex was sold off on a piecemeal basis. BMR's project is part of an overall plan to re-assemble the Kabwe site into a single entity operating under a single large scale Mining Licence. The waste
  • 33. dumps at Kabwe cover an area of about 1 km² and contain over 7 Mt of various waste residues with an estimated combined metal content of 455,000 t zinc and 368,500 t lead. BMR benefits from the existing infrastructure at Kabwe, including processing plant, good roads, water supply, ample power, local labour and direct on-site sidings connection to overseas markets via international railways to South Africa and to Indian Ocean ports. Country: IVORY COAST Owner in UK GOLD November 17: Scorpio Gold Corp has provided an update on rehabilitation work being carried out at the Mineral Ridge gold project, acquired from Golden Phoenix this spring, with a view to recommencing gold production. Highlights include; Leach pad rehabilitation is well advanced with the new drainage system nearing completion. Crushing of the over- liner drainage aggregate and covering of the exposed liner will be completed by the end of November. Crushing the previously mined and placed Golden Phoenix material is scheduled to begin in the latter half of December with leach solution application commencing in January. Sludge removal from the barren pond was completed and all necessary liner repairs were performed. The barren pond is now fully operational. Removal of coarse material from the pregnant pond is underway and scheduled for completion by month end. The on-site assay laboratory expansion is in progress and scheduled for completion in February. Carbon columns in the adsorption desorption recovery (ADR) plant have been replaced and will be operational by mid December. Contractual arrangements for the stripping of carbon and refining of gold with outside parties are currently being finalised with first shipments scheduled to take place in January. Exploration Planning Scorpio Gold‟s successful exploration and modelling of the mineralised deposits and related structures at Mineral Ridge has led to an extensive staking program adding an additional 2,934 ha (7,250 acres) of unpatented mining claims with no underlying royalties to the property. The overall land package now consists of 351 claims which encompasses 4,118 hectares (10,176 acres) representing an increase of 348% from the original Golden Phoenix holdings. Exploration targets on the new claims are currently being mapped and sampled with several drill targets having already been identified. The 2011 exploration plan includes 13,000 m of drilling. Amendments to both the Mineral Ridge mine Plan of operations and the associated Environmental Assessment (EA) are well advanced, upon completion of which the company will proceed with additional exploration drilling. Gold production is scheduled to commence in the first quarter of 2011 with material previously mined by Golden Phoenix that is available for restacking and re-leaching. Ramp up will take place using this material and then followed with newly mined material from the Drinkwater pit. Production is expected to reach a steady state by June and then continue to track positively in the second half of 2011. INTO PRODUCTION Country: IVORY COAST Owner in UK GOLD November 8: Randgold Resources' mine at Tongon, in the Côte d'Ivoire, officially poured its first bar of gold today in a ceremony attended by government representatives and other dignitaries. The first stream of the plant was commissioned on schedule following the first ore being fed in the latter half of September. The second stream is expected to be on line in December, followed by the crushing circuit which will allow the mine to start treating sulphides in the first quarter of 2011. First gold was derived from CIL treatment with commercial production expected to start soon. When the plant has been ramped up to full production, its throughput rate will be 300, 000 t/month. Randgold Resources' general manager of operations for West Africa, Samba Touré: "Building a mine in a remote area such as this is always very challenging, and in the case of Tongon we also had to deal with the distraction of the political dynamics around the Ivorian presidential election during the crucial final stage. The team took this in its stride, however, and we still managed to bring the mine in on schedule," Chief Executive Mark Bristow noted that Randgold Resources had commissioned its three existing mines at five yearly intervals: Morila, in Southern Mali, in October 2000; Loulo, in Western Mali, in October 2005; and now Tongon on the 4 Moz gold deposit in Northern Côte d'Ivoire. Bristow: "We're planning to beat that cycle with our next developments. We're fast-tracking our Gounkoto project in Western Mali and we're aiming to start trucking ore from there to the nearby Loulo plant next year. The massive Kibali project in the Democratic Republic of Congo is also expected to be in production ahead of the five year mark". Country: RUSSIA Owner in JERSEY GOLD November 9: Highland Gold Mining Ltd has begun mining at its Belaya Gora open pit operations. Select oxide ores will be hauled to and processed as planned at the Mnogovershinnoye (MNV) plant. This marks the initial production at Highland Gold's third producing mine just 12 months after commissioning its second producing asset (Novoshirokinskoye) with its joint venture partner in October 2009. To maximise efficiencies the MNV processing plant gravity circuit is undergoing upgrades that include the incorporation of additional concentrators and in-line leach reactor technology. These upgrades will improve gold recovery levels benefiting both operations. The Belaya Gora mine is situated 66 km south of MNV. Design for a stand-alone processing facility at the Belaya Gora mine site is underway with completion of construction scheduled for mid 2012. The plant will process the Belaya Gora ore stockwork in addition to potential ore from nearby satellite deposits at Blagodatnoye and Belaya Gora Flanks, both of which were acquired by the company earlier this year. Mnogovershinnoe is located in the Nikolaevsk area of the Khabarovsk territory in the far-east of the Russian Federation. The mine is located some 650 km north of the city of Khabarovsk, between 1991 and the present day the mine has produced some 700,000 oz of gold
  • 34. Country: RUSSIA Owner in RUSSIA NICKEL/COPPER November 9: OJSC MMC Norilsk Nickel has reopened the ore concentrator at the company‟s Nkomati mine in South Africa. The concentrator that was put under reconstruction in July 2010 was put into operation ahead of schedule. The capacity of the upgraded concentrator in terms of ore processing increased from 100,000 t/month to 250,000 t/month. Total rated capacity of both Nkomati concentrators reaches 7.5 Mt of ore/year. It is expected that in 2010 Nkomati mine will produce 12,300 t of Ni in concentrate and 6,400 t of copper in concentrate. MMC Norilsk Nickel owns a 50% stake in Nkomati nickel mine, a JV with the South African company African Rainbow Minerals. Nkomati deposit is a sulphide mineralisation containing nickel, copper, cobalt and PMG. Nkomati proven ore reserves amount to 159 Mt containing over 500,000 t of nickel, 200,000 t of copper, and 150 t of PMG. Two types of ore were identified at Nkomati: relatively rich ore with nickel content 0.42% (73 Mt) and low-grade ore with nickel content 0.16% - 0.24% (86 Mt). Country: MEXICO Owner in MEXICO GOLD/SILVER November 8: Pan American Goldfields Ltd has announced that the company's partner Minera Rio Tinto (MRT) continues to increase production and optimise operations at the Cieneguita project mill in Chihuahua, Mexico with a goal of reaching design capacity by year end. These improvements have increased the daily production rate of ore through the mill as well as the recovery of gold, silver and other metals from the processing operations underway at the mill. Both the ball mill and the new flotation cells have successfully undergone commissioning and start-up and full operational integration with the existing mill facilities. Successful operation at a rate of 400 t/day began October 1st increasing, beginning October 16th to a continuous rate of 500 t/day. Recoveries of gold and silver averages in excess of 95% of the mined material, which has had an average head grade of 1.25 g/t gold and 110 g/t silver over the same period. The mill is expected to exit November at a continuous rate of 600 t/day. Full commissioning is now being finalised to reach the planned operating level of between 700 and 800 t/day with an appropriate grind size to continue to achieve the maximum recovery rate of gold, silver and other metals. Miguel Di Nanno, Pan American's new president: "Based on these improvements and guidance by our partner MRT we expect the performance of the operations to be greatly enhanced and the results to be felt in our bottom line in the very near future." The anticipated increase in the production capacity at Cieneguita will not require any modifications to the plant at Choix. Over the last quarter (July-September) during the start-up phase of operations, approximately 30,000 t of material was mined from the pit and 2,000 t of bulk concentrate shipped to Choix with the following average grades as follows: Au g/t Ag g/t Cu% Pb% Zn% Mined head from pit 1.20 90 0.04 0.35 0.65 Bulk concentrate 12.0 900 0.40 3.5 4.0 With the completion of the construction start-up phase at Cieneguita, the focus will now be the acceleration of the feasibility study. This study will evaluate a full-scale operation which will target a production rate of about 5,000 t/day of material processed along with saleable metal production directly from the Cieneguita site. Country: MONGOLIA Owner in CANADA COAL November 11: Prophecy Resource Corp has received the final permit to begin mining operations at its Ulaan Ovoo coal mining project in Mongolia. The mine is production ready, with an official mine opening ceremony scheduled for November 20, 2010. The Ulaan Ovoo open pit mine is 10 km from the Russian border and within 120 km from Nauski TransSiberian railway station, enabling transportation of coal to Russia and by extension to Russia's eastern seaports. Thermal coal prices are trading at 2 year highs at Russian seaports due to strong demand from Asian economies. Coal and trucking operations have started in transporting coal by established road for 120 km from the mine site to Sukhbaatar rail station. The coal then travels either south to local Mongolian thermal power plants or north to Russia by rail. Prophecy has received several Russian written expressions of interest and is working to finalise coal sales (off take) contracts with Russian entities. Prophecy has a 100% interest in the 208.8 Mt (174.5 Mt Measured, 34.3 Mt Indicated) and (35.9 Mt Inferred) Ulaan Ovoo Mine that features Bituminous (5,204 kcal/kg), low ash (12.46%), low sulphur (0.40%) thermal coal suitable for export markets. The deposit features a single massive coal seam 45-80 m thick with an average strip ratio of 2:1. The Mongolian Government has granted the project a fully transferable 30 year mining license that can be extended by an additional 40 years. Country: AUSTRALIA Owner in AUSTRALIA GOLD November 16: Range River Gold has begun open pit mining of Ramornie North and Sarah gold mines at Mt Morgans. RNG has also re-opened its producing Transvaal underground gold mine. Managing Director Rick Watsford: “The Transvaal underground gold mine will be the major producing mine at Mt Morgans for the next four years and beyond. The successful exploration and development into production of Ramornie North and Sarah is the first tangible step of the plan to grow actual production to 100,000 oz/y Au within five years.” “These developments and the recently announced 44% increase in mineral resource to 869,140 oz Au emphasise the excellent exposure of Range to a rising gold price through re-evaluation, discovery and development of near mine extensional resources.” The Ramornie North and Sarah gold deposits are located along and parallel to the Ramornie-Transvaal trend. Surface mapping and a review of historical drilling data indicated the potential for near surface mineralisation along two mapped structural features. Both opportunities were prioritised in a list of several potential targets. Drilling of both features identified gold mineralisation. The total mineral resource for Ramornie North and Sarah is 33,090 oz Au. The mineral resources for Ramornie North and Sarah gold mines contributed to the 44% increase in the mineral resources
  • 35. at Mt Morgans to 869,140 oz Au. Based on the geological models, open pit optimisation studies were undertaken and the determination of ore reserves for both deposits. On 1 November RNG announced the gold ore reserves for Mt Morgans of 145,200 oz Au. The mine plans are based upon mining the ore reserves and Inferred mineral resources. Drilling is underway to convert the Inferred mineral resources to Indicated mineral resources. The Western Australian Department of Mines and Petroleum (DMP) has approved the Mining Proposal for Ramornie North and Sarah. Plans have been prepared to produce 40,000 - 50,000 oz/y of gold from existing resources. The company has developed a plan to increase production from Mt Morgans to 100,000 oz/y of gold within five years through exploration success. The development of the Craic underground gold mine is a key element of the production plan for Mt Morgans. The underground mine is expected to provide high grade gold ore through open stoping of ore blocks that continue at depth below the open pit. Since starting in early October development has included: 162 m of decline development (54m remains to the first main level) from 365RL. Completion of a separate ventilation portal in the open pit at 375RL. 39m of ore drive in the southern wall of the pit at 360RL. Development of two drill drives for stope design drilling. The water level in the Transvaal open pit has been lowered sufficiently with the small pump to allow access to the original ventilation portal and drives at this level. Rehabilitation of the portal and drives has started. The ground conditions and status of the drives is excellent. Underground drilling is being undertaken for stope design. The expectation is that stope ore could be produced ahead of schedule in December. The larger water pumps required to complete the dewatering and allow access to the lower levels of the mine are due to be installed in the coming week. This will progress the dewatering at a rate to meet the planned production schedule from Transvaal. Country: FINLAND Owner in SWEDEN GOLD November 17: Endomines AB has completed construction at the Pampalo gold mine on schedule. The new power line was commissioned November 16, with test runs commencing immediately thereafter. The final remaining critical elements - a 48 km long power line, switchyards and transformer stations,have been inspected and accepted for use. Markus Ekberg, CEO of Endomines: “The Pampalo gold mine processing plant has now been commissioned on time and as/the original schedule. With the completion of the new power line, we have sufficient power on-site, enabling efficient test runs of the plant equipment and crushers. Although we decided to upgrade certain critical areas during the construction period, such as crushers and the plant laboratory, the overall cost of the Pampalo project is still in line with the budget.” “We are currently testing the complete processing plant with water and further, with waste rock and ore. We shall finalise these tests before the year-end so that commercial production can be started during Q1/2011". By the end of 2010, the company will commence production at the Pampalo gold mine, with a projected output of 900-1,000 kg/y of gold. Other deposits along the Karelian Gold Line will be exploited subsequently. Country: USA Owner in USA URANIUM November 17: Uranium Energy Corp has started uranium production using in-situ recovery (ISR) methods at the Palangana project in South Texas. Phase I of three separate development phases of the wellfield at Production Area 1 (PAA-1) is complete. Now, gaseous oxygen and carbon dioxide are being added to the circulating ground water, which has activated the mining process of dissolving the uranium from surrounding sandstones. Amir Adnani, President and CEO: “We are exceedingly proud that Palangana is the first new ISR uranium mine to achieve production in the USA in over 5 years. Palangana is one of the company‟s four projects in South Texas. This initial production is really just the first step in the company‟s regional strategy of greatly expanding resources and production in the re-emerging South Texas Uranium Belt, with the next project, the nearby Goliad ISR project, anticipated to join Palangana as a producing asset next year.” Harry Anthony, Chief Operating Officer: “The next milestone will be the start of regular deliveries of uranium-loaded resin beads to our Hobson processing plant, scheduled to commence before month-end. Shortly thereafter, we will be marketing and delivering yellowcake, the company‟s final product. Hobson is a state-of-the-art processing plant, and anchors the company‟s South Texas regional strategy with up to 3.0 Mlb of annual capacity.” Phase 1 of the PAA-1 wellfield is in operation with 30 injection wells and 15 production wells on-line, with each being brought gradually up to maximum flow rates of approximately 50 gallons/minute. Phases II and III of the PAA-1 wellfield each will contain 45 production and injection wells. All Phase II wells have been completed, and are targeted to commence mining in the first quarter of 2011. Installation of Phase III wells is underway with three rigs actively casing and then completing each well. The company is scheduling these wells to come on-line and to start production during the second quarter of 2011. Uranium Energy Corp is employing in-situ recovery or ISR mining technology at the Palangana uranium project. On-site ground water is being fortified with gaseous oxygen and introduced to the uranium ore body through a pattern of injection wells. The solution dissolves the uranium from the sandstone host. EXPANSION Country: CHINA Owner in CANADA GOLD/ZINC/LEAD November 8: Silvercorp Metals has signed a share purchase agreement and a sino-foreign cooperative joint venture contract to acquire a 70% equity interest in Yunxiang Mining Co, a local private mining company in Hunan Province. Yunxiang's primary asset is the BYP Au-Pb-Zn mine, located 220 km southwest from Changsha, Hunan's capital city. The cost of the share purchase and the joint venture capital investment is about $33 million for Silvercorp.
  • 36. The BYP mine has a mining permit covering 3.67 km2 , a safety production permit, and a 400 t/day floatation mill. The mine and mill has been in production since 2006 and has mined and processed about 300,000 t of lower grade lead-zinc mineralisation near the surface. Currently the mill is not in operation as the tailings pond is full. A new tailings facility is under construction and is expected to be completed in five months. Over 4,100 m of underground development is completed, including four declines totalling 767 m and 2,010 m of exploration drifts. Based on 36,151 m of diamond drilling in 105 holes, a historical report defined 5.44 Mt of gold mineral resources grading 2.76 g/t Au, containing 482,000 oz of in situ gold, and 3.12 Mt of "higher grade" lead and zinc mineral resources grading 2.45% Pb and 5.26% Zn. A qualified person has not done sufficient work to classify the historical estimates as current mineral resources. Gold, lead and zinc mineralisation zones appears from surface to a depth of about 350 m based on the deepest drill holes. As drilling to date has been widely spaced (100 m to 400 m between holes) it is possible that additional mineralisation will be proven through future extensive exploration of underground tunnelling and closely spaced diamond drilling, as the recent underground tunnels have intercepted several gold and lead-zinc mineralisation zones. At present, gold mineralisation is accessible by underground tunnels at the 252 m elevation, about 100 m from surface. As part of the due diligence review, extensive gold mineralisation defined by previous drilling has been confirmed by Silvercorp geologists who carried out a systematic channel sampling program in four newly developed underground tunnels that cross-cut through the #3 gold ore. Underground channel samples by Silvercorp; Tunnel Tunnel cross-cut interval (m) Gold grade (g/t) CM 16-17 33 2.79 CM17 72 5.75 including 15.08 g/t over 12 m CM17-18 90 4.83 including 14.13 g/t over 9 m CM18 99 2.42 including 7.67 g/t over 6 m The preliminary metallurgical tests on gold and lead-zinc mineralisation from the BYP mine and previous production records show that gold can be recovered at about 90% recovery rate by conventional floatation to produce a gold-sulphide concentrate. Lead and zinc can also be recovered by conventional floatation with 80% lead and 90% zinc recoveries. Within 200 km there are one gold and seven lead and zinc smelters with ample capacity ready to take these concentrates. Once the transaction is completed, Silvercorp, through Yunxiang, intends to use the existing 400 t/d floatation mill to mine and process the gold mineralisation starting from fiscal 2012. Concurrently, Silvercorp will expand the mining and milling capacity to 1,000 t/d gold mineralisation for fiscal 2013 then to 2,000 t/d (1,000 t/d gold mineralisation and 1,000 t/d lead-zinc mineralisation) by fiscal 2014. Silvercorp will carry out an extensive exploration program to upgrade and expand the current resources. Silvercorp will also complete a NI 43-101 report on the project and engage a Chinese engineering firm to design a full plan for mining development. Country: ZIMBABWE Owner in CANADA GOLD November 9: New Dawn Mining has completed a non-brokered private placement with several funds managed by an international investment firm based in the UK for proceeds totalling C$7,520,850. The proceeds will be used for general working capital purposes and to advance gold production and mine development at New Dawn's three operating gold camps in Zimbabwe. In particular, the proceeds will be used in part to fund the working capital requirements of Central African Gold (CAG), as well as to expand gold production at CAG's gold mining operations in Zimbabwe. The Company acquired an 89% controlling interest in CAG in June 2010. New Dawn is currently expanding gold production at its wholly-owned Turk and Angelus mines and, with its 89% controlling interest in CAG, it is targeting consolidated annualised gold production of 50,000-60,000 oz within the next 18 to 24 months, increasing to 100,000 oz of annualised gold production within the next four to five years. Having recently filed a new NI 43-101-compliant mineral reserve and resource estimate for the CAG properties, New Dawn's total attributable mineral reserves, including Turk and Angelus, increased 32% to 1,785,000 t of mineralised material grading 3.81 g/t Au. The attributable mineral reserves are comprised of attributable Proven mineral reserves of 874,700 t of mineralised material grading 3.69 g/t Au and attributable Probable mineral reserves of 910,300 t of mineralised material grading 3.78 g/t Au. Additionally, New Dawn's total attributable Measured and Indicated mineral resources (inclusive of attributable mineral reserves) increased by 92% to 20,436,000 t of mineralised material grading 2.37 g/t Au and total attributable Inferred mineral resources increased by 54% to 3,477,000 t of mineralised material grading 4.95 g/t Au. Presently, New Dawn operates three significant gold camps in Zimbabwe, where it owns six mines, three of which are currently producing gold and expanding production annually. Ultimately, New Dawn says it "looks to becoming a leading gold mining company in Zimbabwe, active in both gold production and gold exploration, by employing modern mining techniques and deploying capital in a country that is geologically rich, highly prospective, and vastly under explored." Country: MONGOLIA Owner in CANADA COAL November 10: SouthGobi Resources has announced an operational update. Highlights include; Higher sulphur observed to date is primarily due to near-surface factors and as the Ovoot Tolgoi open-pit deepens the sulphur levels are expected to drop. Secondary coal processing is planned, which is expected to improve the value of higher ash, higher sulphur coals at Ovoot Tolgoi. Wet washing of the higher-ash, higher-sulphur coals will upgrade the coal to a semi-soft coking coal product at a 65- 75% overall yield.
  • 37. Approximately $55 million is budgeted for new open pit mining equipment to expand capacity beyond original plan and improve fleet flexibility and productivity. The company has announced increased sales volume guidance for the second half of 2010 of about 1.5 Mt. October contracted sales of 527,000 t exceeded the previous monthly record of 232,000 t set in June 2009. Since becoming aware of the presence of higher sulphur levels in certain coals being mined during 2010, SouthGobi undertook an internal review of the Ovoot Tolgoi coal quality. The raw semi-soft coking coal mined to date from the Sunset Pit No. 5 seam has run at an average level of 0.9% sulphur versus the overall resource estimate of 0.6%. Coal from the Sunset Pit No. 8/9/10 seams has averaged 1.5% sulphur versus the average resource estimate of 1.2%. SouthGobi‟s subsequent preliminary review of coal quality suggests the higher sulphur mined to date results both from local coal variability and near-surface factors. The review indicates there is a clear trend to lower sulphur levels with depth. It is likely that the overall remaining in-pit resources for both the Sunset Pit No. 5 seam and the upper Sunset Pit No. 8/9/10 seams will approach the average resource sulphur values previously disclosed. Dry Air Separation Wet Washing Description of the process Separates coal and waste using vibrating table with air lift Uses dense media in water to separate lower density coals from higher density waste Impact on #8/9/10 seams coal quality Value enhancement – lowers ash level to 14-18% and sulphur by 0.1% Substantial upgrade in value of product – recovery of an 8% ash semi-soft coking coal and sulphur reduced by around 0.3% Overall cash costs (per tonne of raw coal) $2-2.50 $3-3.50 Overall average yield (%) Approximately 80% 65-75% Capital expenditure $45 million (including previously announced basic coal handling facility capital expenditure) $100-130 million (additional to dry air separation) Timing to implement End 2011 2013 Country: MOZAMBIQUE Owner in AUSTRALIA COAL November 11: Beacon Hill Resources has announced an update on progress at the Minas Moatize coal mine in the Tete Province of Mozambique. The exploration programme is progressing well – drilling has been completed and testing of coal has started. Initial results from the exploration programme indicate an increase in the size of the overall resource and higher yields of coal than originally anticipated in addition to lower stripping ratios than originally expected. Production has increased to 8,000 t/month, a 220% increase in production from levels seen at the time of acquisition, while stripping of initial open pit complete with production to commence in conjunction with the commissioning of temporary wash plant by the end of 2010. Beacon Hill Executive Chairman Justin Lewis: “The initial results from our exploration programme are particularly encouraging, demonstrating the potential for BHR Mining to significantly increase the current 33 Mt resource and increase yields, in particular of coking coal and export thermal coal. “The Group remain focussed on establishing a large open pit mine capable of producing 4 Mt/y. In line with this, we have significantly increased current production, and this trend is set to continue with the extension of the current trial open pit, generating significant revenues for the Group ahead of the commencement of the main open cut mine.” BHR Mining, the Group‟s majority controlled operating subsidiary, started a drilling programme in May 2010 after acquiring the Minas Moatize coal mine in the Tete region of Mozambique. The objective of this drilling programme was to expand and further define the current 33 Mt resource. Following the completion of the drilling programme, the Group has initiated a testing programme of the core samples. Initial results from these tests demonstrate that potential likely yields of coal are higher than previously anticipated; Fraction Current Yield Estimated Revised Yield (Note 1) Annual tonnage (Note 2) Coking Coal 15.0% 18.0% 760,000 Export Thermal 22.5% 25.0% 1,000,000 Domestic Thermal 12.5% 16.0% 680,000 Reject 50.0% 41.0% 1,560,000 1 As a percentage of Run of Mine (ROM) 2 Assuming annual ROM of 4 Mt/y Stripping of the initial open pit has been taking place and is now complete. This will allow the production of a further 10,000 t per month over the next 12 months, commencing towards the end of 2010. In addition, following a further exploration campaign, the Group has recently decided to expand this initial pit to include a further 80,000 t, further increasing production over the next 12 months prior to commencement of the main open cut mine. Minas Moatize continues to work towards the commencement of production from the main open pit mine from January 2012, ramping production up to ROM 4 Mt/y by the early 2013. It remains the target of the Group to make an export shipment of coal in the next few months. Country: MEXICO Owner in SWITZERLAND ZINC/COPPER/LEAD/GOLD/SILVER November 15: Nyrstar has entered into a binding support agreement with Farallon Mining in which Nyrstar has agreed to make an all cash offer to acquire all of the issued and outstanding shares of Farallon by way of a friendly take-over offer valuing
  • 38. Farallon's equity at roughly C$409 million on a fully diluted basis. Farallon has unanimously recommended that shareholders tender their shares in favour of the Nyrstar offer. Farallon is the owner of the Campo Morado zinc-rich polymetallic mining operation in Mexico (the Campo Morado operation). The Campo Morado operation comprises roughly 12,000 ha in six mining concessions, located 160 km south-southwest of Mexico City. The ore deposit currently being mined is the G-9 deposit which achieved commercial production in April 2009 and comprises high grade zinc, copper, lead, gold and silver. In addition to the G9 mine, there are four additional deposits that have been delineated (Reforma, El Largo, El Rey, Naranjo). Nyrstar intends to ramp-up production to a rate of 2,500 t/day of ore by the end of 2012, representing production of approximately 70,000 t/y of zinc in concentrate, 8,000 t of copper in concentrate, 7,000 t of lead in concentrate, 3 Moz of silver and 35,000 oz of gold. Once fully ramped-up, the G9 mine is expected to have a first quartile C1 cash cost of less than $500/t of payable zinc due to significant by-product credits. The company believes that current estimated total resources, if all deposits were included, would support a mine life of more than 10 years. However, Nyrstar believes that there is significant exploration potential at the G-9 and surrounding deposits as demonstrated by Farallon's recent announcement of a newly discovered zinc-rich polymetallic zone at the G9 deposit Nyrstar's Chief Executive Officer, Roland Junck: “The acquisition is expected to increase our capacity for zinc metal production from our own concentrates by 6% to about 31% and is expected to reduce our group mining C1 cash costs to less than $1,000/t by 2012 once all operations are fully ramped up. “Whilst the rapid development of the G9 mine has meant that Farallon has not yet undertaken a comprehensive exploration program, we believe that there exists significant exploration potential.” G-9 reserves and resources*, 31 December 2009 resource Class T (kt) Zn (%) Cu (%) Ag (g/t) Au (g/t) Proven reserves 525 10.36 1.28 274 3.69 Probable reserves 1,425 9.87 1.37 187 2.77 Total reserves 1,950 10.00 1.34 211 3.03 Measured resource 1,418 8.65 1.23 239 3.64 Indicated resource 1,606 10.04 1.39 185 2.72 Inferred resource 930 9.17 1.14 187 2.50 Total resource 3,954 9.34 1.27 205 3.00 * mineral resource inclusive of mineral reserve with a 3% zinc grade cut-off grade Additional deposit resources**, 31 December 2009 Category T (kt) Zn (%) Cu (%) Ag (g/t) Au (g/t) South West Zone Inferred 242 6.10 0.83 169 2.51 El Largo Indicated 2,860 6.69 0.34 124 0.79 Inferred 241 6.43 0.42 151 1.41 El Rey Indicated 323 5.88 0.53 162 2.98 Naranjo Indicated 577 6.00 0.66 178 3.11 Reforma Indicated 1,173 5.9 0.58 262 4.74 Total Indicated 4,933 6.37 0.45 166 2.14 Inferred 483 6.26 0.63 160 1.96 ** Using 5% zinc grade cut-off grade; Country: PHILIPPINES Owner in AUSTRALIA GOLD November 16: Medusa Mining Ltd, through its Philippines operating company Philsaga Mining Corp, has approved the construction of a Co-O treatment plant and associated infrastructure. In addition, a major mine expansion/development program at the Co-O mine to increase production capacity has started. For the year ended 30 June 2010, the Co-O mine and current mill produced 89,679 oz of gold. Once fully operational, the plant is expected to provide processing capacity to produce 200,000 oz of gold/y based on the current grade of the Co-O mine‟s reserves. Preliminary cost estimates for the New Plant (with an initial design capacity to treat 750,000 t/y) and expansion are expected to be approximately $80 million and the company intends to fund the cash requirements of the New Plant and Expansion internally. The construction time for the plant after the necessary regulatory approvals are granted is estimated at between 18 to 24 months. The company is currently in preliminary discussions with engineering groups and will provide further details in due course. Geoff Davis, Managing Director of Medusa: “The drill results released on 29 October 2010 reinforce the growth potential of the Co-O mine and surrounding area. The capital requirements of the plant and expansion will be funded out of cashflow - the cashflow generated from the plant, once operational, is intended to fund the company‟s next project, Bananghilig.” Peter Jones, Chairman of Medusa Mining: “Within and around the Co-O mine, together with areas identified as advanced exploration targets, we will this year continue our $21 million annual exploration programme” “Well before financial year-end, our Co-O mine and mill were consistently operating at a rate equivalent to 100,000 oz/y of gold. The company produced 89,679 oz of gold in the last financial year and as one of the lowest cash cost producers in the world generated a net profit after tax of $65.8 million. “We plan to continue to make improvements with the aim of increasing gold production from the Co-O mine by having available the full 1,000 t/day ore processing capacity of the Co-O mill. In the 2011-2012 financial year, we also expect to have the new Saga vertical shaft which will access new mining areas.”
  • 39. Country: USA/CANADA Owner in USA/RUSSIA PGM November 17: Stillwater Mining Co (SMC) plans to proceed with two mine resource delineation and development projects along the Stillwater Complex: the Graham Creek project, immediately to the west of the company's East Boulder mine, and the Blitz project, immediately to the east of the company's Stillwater mine. Both projects lie within the boundaries of existing mining permits, and each would initially be serviced from existing mine infrastructure. Based on indications from historical surface delineation drilling in these areas, both proposed projects are viewed by SMC as having a high probability of ultimately adding significantly to the company's probable PGM reserves. Announcement of these projects fits well with SMC's pending acquisition of the Marathon PGM/copper project located near the town of Marathon, Ontario, Canada, located at the north end of Lake Superior. As was announced earlier, the Marathon acquisition was overwhelmingly approved by Marathon shareholders at a general shareholder meeting. Completion of planned permitting and development efforts at Marathon is expected to take about three years. Over the next several years, the Graham Creek project aims to extend development of the East Boulder mine ore resource about 2,410 mfurther to the west. East Boulder mine's TBM, which was used about a decade ago to develop initial access to the JM Reef and then the west footwall lateral access paralleling the mineralised JM reef, has recently been re-commissioned for this new project. Initial work will assess the continuity and structural controls related to the JM Reef in this area on the far western end of the Stillwater Complex. Based upon historical surface drilling and production experience to date at East Boulder, the project potentially could develop over time up to 6 Mt of additional ore grading on the order of 0.41 oz/t in-situ. Once the initial development is completed, any future mining in this area would require adding ventilation raises and additional infrastructure prior to beginning ore production. Costs to complete the TBM development drive and assess the PGM resource for the Graham Creek area are projected at about $8 million over the next five years. The project is expected to yield information on the Graham Creek resource as diamond drilling work is completed behind the TBM drive. The Blitz project at the Stillwater mine is designed to explore and define the PGM resource along the far eastern extent of the JM Reef. It will extend some 4,115 m to the east of the existing Stillwater mine via two conventionally driven footwall laterals from the 5000 and 5600 levels. Diamond drilling and geologic evaluation will be concurrent with footwall lateral advance on both levels. Once the Blitz assessment project is completed, additional development will require excavating new ventilation raises to support bulk sampling, final pre-production development and eventual ore production. Based upon production experience to date and historical surface drilling, we believe the project has the potential over time to define up to 9.5 Mt of additional resource grading on the order of 0.71 oz/t. The project will begin to yield resource results within its first couple of years. Initial development and resource evaluation costs for the Blitz area are expected to total about $60 million to be spent over the next five or six years. Francis R. McAllister, Stillwater's Chairman and CEO: "Earlier this year we produced and published in our annual report and analysis entitled, The Case for Palladium. Based upon the report's conclusions regarding the outlook for palladium, we have taken a number of actions, including commissioning an internal engineering team to study tactical and strategic opportunities to develop new production along the Stillwater Complex. Historical surface drilling along the 28-mile (45 km) extent of the Stillwater Complex confirmed continuous palladium and platinum mineralisation essentially along the full extent of the JM Reef, but extensive portions of the reef still await more detailed delineation. The team reviewed the historical data and identified several potential resource development projects along the Stillwater Complex, of which the Graham Creek and Blitz projects were considered the most promising. These two projects, coupled with the recent acquisition of the Marathon PGM/Copper project in Canada and the new recycling facilities commissioned in 2010 provide a robust growth profile for Stillwater over the next few years." Stillwater Mining Company is the only U.S. producer of palladium and platinum and is the largest primary producer of PGMs outside of South Africa and the Russian Federation. Country: AUSTRALIA Owner in AUSTRALIA GOLD November 18: Tanami Gold NL has approved an $8 million upgrade of the treatment plant at its western Tanami operations in Western Australia, representing another important step in its production growth plans. The upgrade, which will be funded by a combination of debt and existing cash on hand, will double the capacity of the plant from 250,000 t/y currently to approximately 500,000 t/y, enabling the company to significantly increase gold production. The western Tanami operations produced 47,960 oz for the 2010 financial year by treating 227,610 t at an average grade of 6.7 g/t Au. The additional plant capacity will enable the company to leverage off recent exploration success at depth at the Bald Hill open pit operational centre 35 km to the north by increasing mine production. Stage 1 will initially be undertaken to increase the CIP leach capacity with the installation of three additional leach tanks and improvements to the existing elution circuit. The second stage will see the installation of an additional SAG mill which will double overall throughput capacity to 500,000 t/y. Country: CANADA Owner in CANADA PALLADIUM November 17: North American Palladium has provided an update on the drill results from its 2010 exploration program at the company's flagship Lac des Iles (LDI) palladium mine in Northern Ontario. These results are the second tranche of drill results from the 2010 drill program underway at LDI. Highlights include: New PGM zone, named the Sheriff Zone, was intersected approximately 100 m south east of the Offset Zone Continued positive drill results throughout the Offset Zone (including 122 m of 4.4 g/t Pd) Offset Zone continues to extend higher towards surface and to the north by 50 m Cowboy Zone intersected again in Offset drilling Deep drilling results indicate Offset and Cowboy zones are completely open at depth Roby resources reclassified as reserves following start of production William J. Biggar, President and CEO: "This second release of positive drill results from our 2010 exploration program confirms our belief that LDI has considerable exploration upside," said. "We are very excited with the discovery of the new Sheriff Zone,
  • 40. which in addition to the Cowboy and Outlaw zones, has the potential to increase annual production rates and extend LDI's mine life." NAP's $15 million 2010 exploration program at LDI initially included 53,000 m of drilling aimed at expanding the size of the Offset and Roby zones, increasing the grade of the Offset Zone mineralisation and exploring the West Pit and other surface areas. Following the exploration success from the first tranche of drill results (20,500 m) that were released on June 7, 2010, the company has completed a further 35,000 m of drilling, for a total of approximately 55,000 m. Exploration at LDI is ongoing, expected to include approximately 7,000 more m prior to year end. The Roby Zone is presently mined at a rate of 2,600 t/day. Additional drilling tested the limit of the extension and mine planning is underway to access the area while further drilling will also continue to follow the upward extension of the Upper Offset Zone, and to further delineate the Cowboy Zone. Country: AUSTRALIA Owner in AUSTRALIA GOLD November 19: Fortescue Metals Group (FMG) has approved plans to expand its production from 55 Mt/y to 155 Mt/y. The approval sets the platform for a major $8.4 billion works and procurement expansion program to commence at Fortescue‟s Chichester and Solomon Hubs. Fortescue‟s CEO Andrew Forrest: “This decision will enable Fortescue to leverage its existing infrastructure and its massive land holding across the Pilbara to exponentially increase product sales within key markets of Asia, Europe and Australia. After years of planning for the next phase of development, the depth of management experience and breadth of construction and operational expertise will enable Fortescue to rapidly achieve its growth ambitions within a sector that is underpinned by an extraordinary demand profile.” Fortescue‟s Board approved the expansion plans after assessing the recently completed Solomon Stage 1 feasibility study and a full review of the detailed planning for the Chichester Hub expansion. The decision to proceed was enabled by the recent highly successful refinancing of Fortescue‟s debt facilities. The total capital expenditure budget, for construction of the infrastructure platform together with the procurement of the materials handling equipment including rail is $8.4 billion. The strategy for contractor versus owner mining has yet to be finalised and therefore the cost of any mobile mining equipment, should it be acquired by Fortescue, will be in addition to this amount. The project will be managed in three distinct work programs. Port & rail budget $4.6 billion comprises expansion of the existing port, train unloader and the main line rail network, including construction of the new rail line to the Solomon mining area. Chichester Mining Hub budget $1.5 billion comprises brownfield development of the existing Chichester mines to lift total Fortescue production to 90 Mt/y across the Cloudbreak and Christmas Creek mining operations. Solomon Mining Hub budget $2.3 billion comprises greenfield development of Solomon Stage 1 covering two mining operations at Firetail and Kings together with related infrastructure. In making this announcement Fortescue acknowledges that the Port Hedland Port Authority (PHPA) has given it priority to ship 120 Mt/y from Fortescue‟s port facilities. Fortescue will ship up to 155 Mt/y using any additional capacity that is available. The current configuration of Fortescue‟s port equates to installed capacity of 55 Mt/y based on two berths and a single in-load and out-load system. The approved works program will enable the construction of an additional two in-load and out-load circuits. The PHPA has currently allocated capacity to Fortescue for the construction of two additional berths at the Port. Fortescue intends to seek approval for a fifth berth to increase the efficiency of its operations. Some preliminary port works have already commenced and completion is scheduled for the December Quarter 2012. The rail works program includes the duplication of some 120 km of existing track, the construction of a new 130km spur line out to Solomon, the construction of four new bridges and the completion of two new rail loops at the port to deliver into a new dual train unloader for conveying to an expanded port stockpile area. Fortescue is advanced in engaging contractors it has strong working relationships with to commence earthworks in early 2011 for the main line duplication. The program also includes the complete upgrade of the existing signaling system. The construction of certain parts of the rail works (including the connection to the Solomon mines) are subject to a number of consents and approvals which are expected in 2011. The expansion of operations will enable 90 Mt/y to be produced from the Chichester Hub. Output from Cloudbreak will be maintained at its current production level of approximately 35 Mt and Christmas Creek production will be expanded to some 55 Mt through additional processing facilities and increased mining activity. In addition, there is 5 Mt/y of planned production from the BC Iron/Fortescue 50:50 joint venture. The Christmas Creek expansion will comprise the construction of a second Ore Processing Facility (OPF) adjacent to the existing OPF, using much of the current stockpile and train load-out infrastructure. A new primary crushing hub will be located to the east of the central OPF facilities with an overland conveyor system connecting the two facilities. Additional investment will be made in other infrastructure for utilities, accommodation and water management. Works are scheduled to commence in the March Quarter 2011 with targeted completion by end 2012. The greenfields development of the Solomon Stage 1 Hub is still subject to the delivery of a number of consents and approvals which are expected in early 2011. Construction is expected to commence in the June Quarter 2011. The development will be a two stage process with an initial OPF for the Firetail Brockman product and then a separate OPFfor the Kings Channel Iron Deposit product. The mining areas are 25 km apart and the processing will be different for the two types of ore. Other planned infrastructure includes a central 2,500 person camp, an airstrip, power station and an overland conveyor system that takes product from both OPFs to a centralised train load-out facility. Direct ship ore export is forecast for the September Quarter 2012 with first ore through the OPF exported in the September Quarter 2013. The expansion will be funded through one or more new bank or bond debt facilities, cash on hand and cashflow from operations. The mix of external debt and cash flows will depend on market factors including iron ore price. In accordance with the recently issued 2015 Unsecured Notes, Fortescue is permitted to incur additional indebtedness. The company will continue to monitor the level of internal cash flow and the capital expenditure profile through the term of the construction period to ensure that sufficient liquidity exists to provide for the safe and timely delivery of the expansion program.
  • 41. Fortescue Development Director Peter Meurs: “Fortescue is transforming to be a bigger, faster and more innovative company focused on delivering a low cost, high volume and safe working environment. To achieve the expansion timetable, Fortescue will spend capital of $8.4 billion over a planned 30 months, which at the peak of construction will equate to approximately $26 million per day. Early works undertaken all the way through and prior to the Global Financial Crisis has given Fortescue a very strong and competitive lead to its current expansion program. These include dredging of the third berth and pouring of the concrete foundations for a second and third train unloader at Port Hedland. This is providing a huge advantage and momentum to the expansion. Assembly of long lead items such as stackers, reclaimers and shiploaders which had commenced prior to the GFC, is now progressing strongly. “Fortescue has a proven ability in expedited construction and operations ramp-up. The record construction of the initial mine, port and rail business and the rapid delivery of the increase up to 55 Mt/y (due for completion in February 2011) provides proof of the company‟s focus and capability to provide a platform for the next phase of development.” Meurs said. NEW PLAYERS Country: CONGO Owner in AUSTRALIA IRON ORE November 5: Cape Lambert Resources has entered into a Heads of Agreement with Stirling Minerals Ltd to sell 100% of its wholly owned subsidiary DMC Mining Ltd, the principal asset of which is the Mayoko iron ore project in the Republic of Congo. Stirling will seek to raise a minimum of A$96 million by the issue of 320,000,000 fully paid ordinary shares. In consideration for the sale of DMC Mining, Cape Lambert will be; (a) issued 120 million SMZ shares (on a post-consolidation basis) (consideration shares), which shall be escrowed for a period of 12 months from the date of issue in accordance with ASX Listing Rules and represent a 25% interest in Stirling following completion of the Capital raising and transaction; and (b) paid A$47 million cash, In addition to the consideration, Cape Lambert will be granted a royalty of A$1/t of iron ore shipped (whether DSO, beneficiated DSO or magnetite concentrate) from the Mayoko project. Upon completion of the transaction, all the members of the current Board of Stirling will resign and the Board will change to introduce an experienced executive team who will oversee the exploration and development activities of the Mayoko project. The Board appointments will include, a yet to be identified, Managing Director. The company's Executive Chairman, Tony Sage: "The sale enables Cape Lambert to recover its cash investment in DMC Mining whilst retaining exposure to the Mayoko project's upside through a 25% equity holding in Stirling. Cape Lambert will also retain a production royalty, which on the commencement of mining operations will provide the company with access to a future cash flow".; Country: TURKEY Owner in AUSTRALIA GOLD November 4: Anatolia Minerals Development has received approval from Australia's Foreign Investment review Board (FIRB) regarding its proposed merger with Avoca Resources Ltd. Anatolia and Avoca jointly announced on September 8, 2010, that they had entered into a Merger Implementation Deed (MID) to combine the two companies to create a leading intermediate global gold producer. The combined company will be called Alacer Gold Corp, and will bring together two of the leading junior resource companies in the world. Anatolia is developing the Çöpler project, located in Turkey. Initial plans are to produce approximately 1.3 Moz Au at a cash cost of about $300/oz. The first gold pour at Çöpler is expected in 2010 with full production to average about 175,000 oz/y Au after ramp up. Additional production expansion of the oxide and sulphide gold resource is expected at Çöpler by taking advantage of the inherent large resource through on-going technical activities. Country: SOUTH AFRICA Owner in SOUTH AFRICA PLATINUM November 8: Royal Bafokeng Platinum (RBPlat) has listed on the main board of the JSE Ltd, in the „Platinum and Precious Metals‟ sector. It will trade under the abbreviated name RBPlat and its share code will be RBP. 49.32 million shares were placed at a placement price of R60.50 a share, raising R2.98 billion. RBPlat was created from the restructuring of the Bafokeng Rasimone platinum mine joint venture between Royal Bafokeng Holdings and Anglo Platinum Ltd, of which Rustenburg Platinum Mines Ltd is a wholly-owned subsidiary. RBPlat is a black- owned and -controlled mid-tier platinum group metals (PGM) producer whose operations include the Boschkoppie mine, and is currently in the process of bringing phase one of the Styldrift Merensky project into production. RBPlat‟s assets, located in the largest PGM-enriched zone, are shallow, high-grade and have well-known resources and reserves. Chief Executive Officer, Steve Phiri: “RBPlat is a very, very special South African mining company. Our journey towards this listing has been interesting and sometimes challenging. It began many years ago, towards the end of the 19th century when young Bafokeng men were sent to work on the country‟s diamond mines to earn money to buy their own land. Today, we participate fully with investors and mining companies”. Country: GHANA Owner in AUSTRALIA GOLD November 7: Surging Australasian investor interest in West Africa – one of the world‟s gold exploration hot spots – is set to be tapped by PMI Gold Corp, which launches its $27.5 million Australian IPO this week ahead of a planned co-listing on the ASX on 10 December 2010. PMI Gold plans to build an international gold mining house by accelerating exploration and feasibility studies at its two near- production gold projects located in southern Ghana, while at the same time launching a major regional exploration program on its large land-holding covering some 85 km of strike in one of the world‟s most prolific gold producing areas. PMI Gold‟s Managing Director, Douglas MacQuarrie: “Ghana already hosts a number of +10 Moz gold deposits such as Obuasi, Tarkwa and Ahafo – with the West African region as a whole projected to become the world‟s second largest gold producer with production approaching 9 Moz a year,”
  • 42. PMI Gold‟s two key assets are the Obotan gold project and the Kubi Gold project, both located within world-class, multi-million oz gold belts in southern Ghana. The assets are located near the centre of some 200 Moz of historical production and current gold resources, with excellent infrastructure including a transportation network, telecommunications and mining infrastructure. The company is targeting initial production of 100-150,000 oz/y from these two assets, commencing in 2013, for a minimum mine life of 8 years. This will be underpinned by the planned development of open pit and underground operations at the Obotan gold project and a high-grade underground mine at the Kubi gold project. In addition, a vigorous exploration program of around $8 million will be undertaken in 2011-2012 to target new gold discoveries with +1Moz potential. The Obotan project includes an Indicated resource of 3.064 Mt @ 1.59 g/t for 156,000 oz and an Inferred resource of 15.637 Mt @ 2.1 g/t for 1.053 Moz, which mainly lies below three open pits (Nkran, Adubiaso and Abore) which were mined by Resolute up until December 2002 resulting in production of 730,000 oz. The operation closed when the gold price was less than $350/oz. Like most gold deposits in Ghana, the major gold lodes are steeply-plunging and remain open at depth, with an exploration target of 1-2 Moz established beneath the Nkran pit alone. Recent drilling results beneath the open pit have returned stunning intersections of 153 m @ 2.37 g/t Au including 46 m @ 5.23 g/t Au. PMI Gold‟s development strategy at Obotan will be to expand and upgrade near-surface open cut resources via a 40,000 m in- fill drilling program at Nkran and other shallow satellite deposits which offer the possibility of early cash flow to fund a major cut- back of the Nkran open pit. The company is aiming to complete a PFS on this project by December 2011. The broader Obotan project contains numerous priority exploration targets with the potential to host +1Moz deposits within a 70 km strike length of tenement holdings over a major gold belt, much of which remains untested by drilling. This region, which previously had a fragmented ownership, has been consolidated under one ownership for the first time. The second asset, the Kubi Gold project, is located 15 km south of and along strike from AngloGold Ashanti‟s 60 Moz Obuasi mine within the +100 Moz Ashanti trend. Under a tribute agreement at the Kubi Gold project, 500,000 t @ 3.65 g/t were mined by the previous tenement holder from two shallow pits yielding 59,000 oz of gold up until 2005. This previous mining focused on just 400 m of a total strike length of +1km of the deposit, with the project offering the potential to develop and mine steeply- plunging 6-8 g/t shoots which remain open at depth. An Indicated mineral resource of 604,000 oz and an Inferred mineral resource of 315,000 oz Au have been estimated. PMI Gold‟s development strategy will be to update a 2008 scoping/PFS produced by Golder Associates with a view to developing Kubi as a high-grade underground satellite mining operation to Obotan, a trucking distance of 110 km. PMI Gold has also announced a private placement to raise up to $7.5 million by the issuance of up to 10.72 million special warrants, with the financing scheduled to close by November 29. Country: USA/CANADA Owner in CANADA GOLD/URANIUM November 8: Lexam Explorations and VG Gold Corp have entered into a definitive arrangement agreement in which Lexam and VG Gold will amalgamate to form a new company - Lexam VG Gold Inc (Lexam VG). VG Gold's projects are located in the centre of the Timmins gold camp, which has produced in excess of 70 Moz of gold. The new Lexam VG will be well positioned to take advantage of rising gold prices as well as; Good land position that holds four gold deposits which have attractive exploration potential situated next to large gold mines in Timmins. Strong treasury with $15 million and no debt Growing resource base Attractive valuation versus Timmins peers. It was previously announced that Rob McEwen, current Chairman and CEO of Lexam, would invest $5 million in VG Gold immediately prior to the completion of the business combination.; Country: USA/ARGENTINA/SPAIN Owner in CANADA PRECIOUS METALS November 10: Trading of the common shares of Renaissance Gold started under the symbol REN. Renaissance Gold is a precious metals exploration company that has a current portfolio of 18 exploration projects in Nevada, one project in Utah, four projects in Argentina and one project in Spain. It controls some 40,000 ha of unpatented claims and fee land in prospective areas of Nevada. Fifteen of the projects are in exploration earn-in or formal joint venture agreements with nine companies who provide exploration funding. Country: AUSTRALIA Owner in AUSTRALIA COAL November 12: Carabella Resources is a coal exploration and development company. It currently holds a portfolio of seven coal exploration assets that were acquired in May 2010, covering a total exploration area of approximately 3,606 km2 in the Bowen, Mulgildie, Clarence-Moreton and Eromanga Basins in Queensland, Australia. To date, the company has focused its initial exploration activities at its flagship coking coal Tenement, Mabbin Creek. Mabbin Creek is located adjacent to a number of worldclass coking coal mines in the Northern Bowen Basin. Exploration activities to date at Mabbin Creek have identified a maiden JORC resource of 91.7 Mt of coking coal at the Grosvenor West prospect on the eastern border of the Tenement. This is comprised of 21.8 Mt of Indicated resources and 69.9 Mt of Inferred resources. The company has also further identified in excess of 450 Mt of prospective coal exploration targets in the Mabbin Creek Tenement area. Country: MEXICO Owner in CANADA SILVER/GOLD November 16: Silvermex Resources Ltd and Genco Resources have completed the proposed business combination between the companies. The arrangement provides for the acquisition by Genco of all of the issued and outstanding common shares of Silvermex, with each Silvermex shareholder receiving one common share of Genco for each Silvermex common share. Further details regarding the arrangement are set out in Silvermex's Notice of Special Meeting and Management Information Circular dated October 6, 2010 and Genco's Notice of Special Meeting and Management Information Circular dated October 8, 2010, which are available at
  • 43. Silvermex Resources is focused on advancing the recently consolidated Rosario/San Marcial Mining Camp in south eastern Sinaloa, Mexico. This mining concession consists of two past producing mines and numerous known high-grade deposits. The project has significant resources and historic reserves with extensive production related infrastructure in place. Genco Resources is focused on developing its core asset, the producing La Guitarra silver-gold property located in the Temascaltepec Mining District of Mexico. La Guitarra mine presently consists of two underground operation centres and a flotation mill with a proven capacity of 320 t/day. Genco is evaluating options for the expansion of existing mining operations at La Guitarra mine. New Silvermex, the combination of the two companies, is focused on developing the producing La Guitarra silver-gold property located in the Temascaltepec Mining District of Mexico.; PROJECT PEOPLE Continental Coal Ltd has appointed six senior mining executives who had previously worked with unlisted South African thermal coal mining and export coal producing company Mashala Resources. Mashala was acquired by Continental Coal in mid-2010, with the transaction due to settle in the coming days. Former Mashala Resources CEO, Johan Heystek, has been appointed as Chief Operations Officer of Continental Coal and will assume responsibility for the operational aspects of the company's existing two mining operations, at Vlakvarkfontein and Ferreira and development of its third mine, the Penumbra underground project, into production in 2011. Heystek is a registered professional mining engineer with over 25 years of industry experience, focused exclusively on coal in Southern Africa, including senior appointments at Ingwe Coal and BHP Billiton. Heystek: "My immediate focus will be on integrating the Continental and Mashala teams into an efficient management structure that will oversee the immediate commencement of development of the company's third profitable coal mining operation at Penumbra; to realise the full potential and value of the company's now broadened asset base; and to take advantage of the tremendous exploration and growth opportunities that exist within our South African and Botswana projects," Other key executive appointments include; Ken Hodge joins CCL as a Project Manager. Hodge is a professional mining engineer with more than 35 years' experience in underground and opencast coal exploration, development and mining industry in South Africa. His career includes senior management and technical appointments in mining and operations with major coal mining companies such as BHP Billiton and Xstrata. He will work closely with Continental's existing project Manager, Eugene de Villiers, in the mine design, project management and ultimate development of the Penumbra underground project and Continental's other South African coal projects. Martin Westerman will assume the role of Head of New Business Development where he will be initially focused on the listing of the company on the Johannesburg Stock Exchange in 2011. Mike Nell will assume the role of Senior Manager of Operations where he will be directly involved in all operational aspects of the company's Vlakvarkfontein and Ferreira coal mining operations. Continental's Chairman, Andy Macaulay: "In securing these key appointments, Continental has significantly enhanced its ability to deliver on its stated goal of producing 10 Mt/y of run-of-mine coal by 2015 and the development program for the Penumbra underground project," Rio Alto Mining has appointed Enrique Garay Manyari as Vice President Geology and Timothy Williams as Vice President Operations. Garay has over 22 years experience in the precious and base metal resource industry with a focus on both exploration and mine geology. Garay possesses strong skills in the assessment of base and precious metal mineralised systems and has worked throughout Peru and been involved in the assessment of various mining projects in Chile, Colombia, Mexico, Argentina and Ecuador. He has been employed by several mining companies including Barrick Gold, Hochschild Mining, Trafigura and Consorcio Minero Horizonte. From 1996 to 2004, Garay contributed to the resource definition work at Barrick Gold's, multi-million oz Pierina gold mine located in Peru and was the project's Chief Mine Geologist. Williams has over 18 year's international experience in the mining industry, in Australia, Tanzania and Peru. For the past two years, Williams has been an operations manager for various joint venture mining contracts operated by the GyM - Stracon JV. His previous employment roles include, Geotechnical Superintendent at AngloGold Ashanti Ltd's Geita gold mine located in Tanzania and Senior Geomechanics Engineer at Western Mining Corp's Leinster nickel operations located in Australia. From 1996 to 2000, Williams was a Senior Consultant with Australian Mining Consultants. Alex Black, Rio Alto's President: "We have been focused on the development of the La Arena gold oxide project in Peru. This development is now advanced, with the placement of first ore on pad scheduled for December and first gold production in Q1 2011. " Flinders Mines Ltd has appointed Gary Sutherland as Chief Executive Officer. Sutherland - previously the company‟s General Manager, Project Development – was appointed Acting CEO in August this year following the resignation of Dr Kevin Wills. Flinders Mines‟ Chairman, Robert Kennedy: “Gary is a results-driven executive with more than 25 years of achieving business growth and success with vast experience in projects such as the massive Olympic Dam mine in South Australia and the world‟s biggest open cut producer of zinc, the Century mine in Queensland,” Sutherland, who is currently managing Flinders‟ PFS on the Pilbara project:“The results from this wholly owned project – including our recent further significant increase in the JORC compliant resource estimate to 748 Mt – continue to build on our expectations of a successful transition from exploration to iron ore project development.” Before joining Flinders Mines, Sutherland spent 9 years in senior leadership roles at BHP Billiton‟s Olympic Dam in both operations and expansion project roles, including more than 5 years as General Manager – Processing. Prior to his senior BHP Billiton positions, he was Manager Metallurgy at Pasminco‟s Century mine and also spent several years at the Elura silver– lead–zinc mine and worked in various mining roles with CRA (now Rio Tinto). Dundee Precious Metals has appointed Rick Howes, currently the General Manager and Executive Director of Chelopech Mining EAD, as Executive Vice President and Chief Operating Officer of DPM. Adrian Goldstone has also been promoted to become DPM's Executive Vice President of Sustainable Business Development.
  • 44. Howes has over 30 years experience in the mining industry. Throughout his career, he has been closely associated with the practices that make for world-class mining operations including Inco's North mine which won the 2006 Ryan Award as the safest mine in Canada. In his expanded role, Goldstone will continue to be responsible for DPM's corporate CSR function and the Krumovgrad gold project as well as assume responsibility for the operations and development at the Tsumeb smelter in Namibia. Scorpio Mining Corp has announced that Parviz Farsangi will replace retiring Chief Executive Officer Peter J. Hawley, effective as of November 15, 2010. Peter J. Hawley, former Chairman, will continue to serve Scorpio Mining as a director and will assume the role of non-executive Chairman effective January 1, 2011 in place of Ewan Mason, who will continue as a director after such time. Farsangi has an extensive operations background and knowledge of the mining industry, with a history of employee and community engagement. Most recently he was Executive Vice-President and Chief Operating Officer of Vale (formerly, Vale Inco Limited) with the responsibility for leading the operations of Vale's wholly-owned subsidiaries. Prior to joining Vale, Farsangi had a long career with Falconbridge Ltd starting at Falconbridge's Kidd Creek Mine in 1987 and rising to General Manager of the Falconbridge Sudbury Mines/Mill Business Unit in 2002. Subsequently he was President, Gramercy Alumina in Louisiana and St. Ann Bauxite in Jamaica for Falconbridge. OceanaGold Corp has appointed Dr. Michael Roache as Vice President, exploration. Dr. Roache will be part of the senior executive team and will oversee all aspects of exploration for the company with a near-term focus on New Zealand and the Philippines. Dr. Roache is an industry veteran with over 23 years experience throughout Asia, Australia and New Zealand focusing on gold exploration and discovery. Previously with Metex resources, Delta Gold and AngloGold, Michael led the exploration team at OceanaGold until late 2007 when he temporarily left the minerals industry. His experience crosses over a wide range of gold deposit styles, including extensive porphyry experience in Asia. Jim Askew, Executive Chairman: “The exploration program in New Zealand has already delivered significant increases in resources and reserves over the past 18 months and Michael will provide added expertise to these programs. In the Philippines, OceanaGold has gold-copper prospects immediately adjacent to the Didipio project and extensive exploration tenements prospective for gold-copper porphyries spread across the Philippines archipelago.” Midlands Minerals Corp has appointed Tom Neelands, PGeo, to the position of Vice President, exploration. Neelands has over 30 years of hands on international exploration experience with a history of gold discovery. He is associated with the FDN gold discovery in Ecuador, South America where he worked with Aurelian Resources. He has also worked with Placer Dome and Noranda, as well as other majors. Neelands recognises the importance of structural controls in gold deposits and will be an asset to the team working on the Sian/Praso and Kaniago gold projects in Ghana, Africa. OceanaGold Corp has appointed Mick Wilkes as Chief Executive Officer, commencing in mid-January, 2011. In the intervening period, he will finish up his role as Executive General Manager of operations at OZ Minerals. Mick Wilkes is a mining engineer with 26 years of broad international experience, predominantly in precious and base metals across Asia and Australia. Most recently, he had responsibility for the evaluation studies and construction of the Prominent Hill copper-gold project in South Australia. Previously he was General Manager of the Sepon gold copper project for Oxiana in Laos where he was responsible for operations, leading the site team that built and commissioned the first international standard mining operation in the country. His earlier experience was in Papua New Guinea in various senior roles and, at the outset of his career, at Mount Isa Mines in operations and design. Andreas Enzler is joining Normet group in Switzerland, as Vice President Business Development and Marketing. He brings 12 years experience in the field of construction chemicals, mainly concrete admixtures but also epoxy resin and PUR flooring and waterproofing. In several years of international assignments for construction chemicals such as regional controller Latin America in Cleveland, USA, and CFO Asia/Pacific in Shanghai, PRC, for MBT, Degussa and BASF he has gathered extensive experience in business- and strategy-development, M & A as well as development of corporate structures, particularly in emerging regions and markets. In his latest position before joining Normet he was regional marketing director for BASF Flooring Europe. Malaga has appointed Pierre Monet as President of the company. Jean Martineau: "Our tungsten production capacity now reaches a record level, but there are more improvements to make in terms of production in light of future expansion. Exploration of the property will also become more and more important in the coming year." Before this appointment, Pierre Monet was Vice-President and Chief Financial Officer since 2007, during which time he helped restructure Malaga, spin off Dynacor Gold Mines, negotiate a long-term contract with a major tungsten user and arrange debt and equity financings. Monet has close to 15 years of experience in the resources industry, ten of which were at Iron Ore Co, a subsidiary of Rio Tinto. Anglo Swiss Resources has announced the addition of Lloyd Penner as the Manager of Exploration and Development of the Kenville gold mine property. Penner brings many years of experience and knowledge as a large part of his 25 year career spent in the exploration, development and mining of western Canadian gold deposits, from the coastal mountains of British Columbia to the gold camps of northern Canada and most recently in west Africa. His mining career began developing the high grade, narrow veins of the Bridge River Valley of BC., in 1986. Other notable projects to-date include the position of Mine Manager of the QR Mine in the BC interior, a 1,000 t/d cyanide plant with multiple underground and open pit mines operating. Other projects include late stage exploration properties such as Selkirk Metals‟ Ruddock Creek property, Imperial Metals‟ Red Chris property and Avion Gold‟s gold mine in Mali. Given Penner‟s knowledge and experience with high grade vein properties like Kenville will be apposite as the company is now discovering new high grade vein systems to the south and southwest in previously unexplored areas of the property. Anglo Swiss Resources is developing the 100% owned Kenville property and is also earning a majority interest in the 160 km2 Nelson Mining Camp, south of the Kenville property. The Nelson Camp is the host to numerous, historical producing gold, silver and copper mines, surface adits and old workings. Exploration programs are underway throughout the area with the focus on building a larger gold resource within the Kenville property and beyond to the south.