TABLE OF CONTENTS
Big Bear Mining Corp Announces 2011 Exploration Plans
Nautilus Plans C$150 Million Raising Through Offering
Champion Finds New Quebec Iron Mineralisation
Western Sierra Mining to Start First Development Phase at Big Chief Mine in Arizona
Siemens Filter Presses Selected for Bolivian Mine
Iron Mining to Explore Mineral Concessions in Mexico
Severstal Acquires Stake in Brazilian Iron Ore Exploration Company
Ghana Gold Project Set for Upgrade for PMI Gold
Namibia to Increase Stake in De Beers Marine
Wolf Minerals Receives Positive DFS for UK Tungsten Project
Vale Initiates Mining Activities at Moatize Mine, Mozambique
Rio Tinto Exports 1-Billionth Ton of Iron-Ore to China
Cliffs Natural Resources Receives Clearance from Chinese Ministry
India Seeks Uranium Mines Abroad
Gloucester Outlines Acquisition Plans
New Merged Mid-Tier Gold Company Aims for 800,000 Oz By 2015
New Zealand Coal Projects March Forward
ASD Portable Rapid Analysis and Measurement Solutions for Mineral Analysis
Big Bear Mining Corp (OTCBB: BGBR) recently announced the 2011 exploration plans for its portfolio of projects, which includes the Lewiston Mining District and Rattlesnake Hills projects, both in Wyoming, and the Red Lake projects in Western Ontario:
Lewiston Mining District, Fremont County, Wyoming: Management intends to use historical data and geologic mapping in order to carry out high level structural analysis, surface prospecting, and magnetic and induced polarization surveys to identify targets so that an initial drilling program can be completed by the end of 2011. Initially, seven to ten shallow core holes are planned to test unconfirmed high grade gold findings associated with several historic prospects and small mines, as well as possible new targets generated from the surface exploration program. This program will be the first drilling ever initiated in this district.
Rattlesnake Hills, Natrona County, Wyoming: Evolving Gold recently announced a $76M joint venture agreement with Agnico - Eagle Mines to complete feasibility studies at the North Stock and Antelope Basin areas where gold mineralization is hosted in geologic settings similar to those encompassed on the adjacent Big Bear Mining Corp property. Additional geologic reconnaissance and overburden auger sampling will be conducted to better define existing drill targets on Big Bear's Dry Creek claims, whose proximity is less than 6,000 feet from the North Stock gold mineralization. On Big Bear's Barlow Gap claims, alteration, breccia pipe development and areas containing anomalous silver will be further evaluated for gold mineralization utilizing targeted soil surveys. Efforts will also be made to expand surface work in previously unexplored parts of the extensive Big Bear property position. With similar geological signatures and features to Evolving Gold's discoveries, Big Bear is committed to the expeditious and prudent development of this land package. The work in this area is targeted for completion by early 4th quarter with results to follow shortly thereafter.
Red Lake Mining Division, Birch Uchi Region Western, Ontario: Continued activity in the Red Lake area, marked by the ongoing work of Gold Canyon, Rubicon, Confederation Gold, and Gold Corp (which operates Canada's largest producing gold mine) clearly dictates to management the need to do additional reconnaissance on each of Big Bear Mining Corp's three land packages in anticipation of developing future drill targets. Significant new claim acquisitions and positive results from current competitor drilling programs are occurring on an ongoing basis, making this a highly prospective target. Big Bear Mining Corp will work to continue exploration of its Sol D'or Mine, Shabu and Skinner claims through line cutting, detailed mapping and measured sampling, and geophysical surveying for high grade gold mineralization. Work should be completed by the end of 3rd quarter with results to follow shortly thereafter.
Canada’s Nautilus Minerals Inc intends to raise about C$150 million (US$153.2 million) for its deep-water polymetallic mining operation through a public offering of shares.
The planned offering would be conducted through a syndicate of underwriters led by TD Securities Inc and Credit Cuisse Securities Inc, Nautilus said.
For 30 days following closing of the offering, the underwriters would also be granted an over-allotment option of up to 15% of the shares sold.
Nautilus said proceeds from the offering would be used to fund the development of the Solwara 1 copper-gold project, which is located in the waters off Papua New Guinea in the Pacific Ocean.
Proceeds would also be used to fund the company’s equity contribution associated with the production-support vessel joint venture agreement, and for general working purposes, Nautilus said.
Champion Minerals recently said it had found additional mineralisation at its Lac Moire iron-ore project in north-eastern Quebec, located next to ArcelorMittal's Mt. Wright mine.
The company said that two new drill holes had intersected iron at widths of between 130 m and 133,5 m grading at 28,9% to 30,5%.
“The latest drilling results at Lac Moire look very promising and could potentially enable the company to meet its short-term goal of increasing its NI 43-101-compliant inferred mineral resources to two-billion tonnes,” Champion CEO Tom Larsen said in a statement.
The company now plans to drill 7 000 m at the property, instead of the 5 000-m previous programme.
The company said in a presentation on its website that it could cost about $754-million for a seven-million-ton-a-year mine at the Fire Lake North project, which forms part of the Lac Moire properties.
Champion aims to complete a feasibility study on the project by the second quarter of next year.
This Big Chief contains numerous unpatented claims located in the Hassayampa Mining region around 12 miles south of Prescott in Arizona. In late 1890s, Big Chief mine had the most historical production and then various periodic productions. Chiefly, the property is an underground gold deposit and has some exterior exposures along with little amounts of silver.
The company will start a geological estimation of the mine having a plan to extend the present claim block. The samples are taken from the present outcrops and trenches to verify the earlier exploration. Western has planned to open the current tunnels after claiming an exploration permit and analyze the shafts to additionally describe the current ore body.
Western has proposed a Plan of Operation during the exploration phase. This plan has to be filed with the U.S. Forestry Service for study and the program is extended to embrace the first pre-production target.
Coeur Manquiri has purchased three MC Press filter presses from Siemens Water Technologies for its San Bartolome mine in Potosi, Bolivia.
The MC Press dewatering filter presses will allow improved dry stacked tailings management on site. The filter presses are expected to become operational later this year.
Located at the base of the Cerro Rico Mountain near Potosi, Bolivia, the San Bartolome mine is one of the world’s newest and largest pure silver mines.
Heirro IMG Mexico, a subsidiary of Iron Mining Group (IMG) has signed an exclusive iron ore development agreement with Minera BarraNava, to explore mineral concessions in Mexico.
Under the terms of agreement, Heirro IMG Mexico will pay Minera BarraNava a royalty of $10 per metric tonne of iron ore sold through the agreement and a 35% profit share of all iron ore mining profits generated.
The mineral concessions cover about 4,800 hectares with strong iron ore interest, identified by Heirro IMG Mexico.
The firm has started a ground magnetometry study to identify the potential mineral resource, and will later conduct a core-drilling programme to confirm and quantify the ore bodies identified.
The firm intends to complete the necessary applications for exploration and exploitation permits with the Mexican environmental authority.
OAO Severstal, one of the world’s leading vertically integrated steel and mining companies, announced recently that it has acquired a 25 percent stake in the Brazilian company SPG Mineração. SPG owns highly-prospective iron ore exploration licences in the northern state of Amapa, Brazil.
The total consideration of the deal is $49 mln payable in performance-related installments, with part of the amount to be directed to finance the first stage of geologic exploration, which aims to re-confirm the attractive geologic potential of the target’s properties. Severstal has also entered into a call option agreement to purchase an additional 50 percent stake in this company, exercisable upon completion of certain conditions.
Severstal believes that the Amapa project has high potential with an estimated resources potential of 0.5 — 1.5 billion tonnes with an approximately 40−45 percent Fe grade. Production potential is estimated at around 10−20 million tonnes of iron ore concentrate. The project is located near to a railway and a port, however, the company intends to consider developing its own logistics solution, with a few options currently considered.
Investing in primary steel-related raw materials is one of Severstal's strategic priorities, allowing the company to develop a global portfolio of projects to diversify raw material supply and secure the future growth of the steel operations. Severstal focuses on attractive emerging markets with significant long-term growth potential and favourable export logistics.
Australian company PMI Gold Corporation believes its latest round of drilling on the Nkran deposit on its Obotan gold project in Ghana will be a prelude to a resource upgrade.
The company has undertaken infill and resource extension and has detailed the latest seven diamond holes that included some wide low to medium grade intersections spiced with high grade intervals.
Better drill holes included 125 metres grading 2.18 grams/tonne gold from 271 m depth including 8m @ 19.01 g/t; another of 118m @ 2.43 g/t from 386m including 23m @ 3.66 g/t.
Managing director Colin Ellison said broad widths of high grade gold had been picked up 150m below the base of the previously mined Nkran open cut.
There were three drill rigs currently operating at Obotan.
Ellison said this latest drilling will help underpin a resource upgrade in the September Quarter and, subsequent, completion of the pre-feasibility study.
The original Resolute Resources pit produced about 590,000 oz to a vertical depth of 150m.
Latest results suggest that the "internal integrity" of the deposit continues down dip. Broad spaced drilling below 350m indicates it continues to below 450m -- the level tested by drilling to date.
PMI's Obotan project takes in four known deposits - the larger Nkran and satellite deposits Abore, Adubiaso and the virginal Asuadi.
As part of the geological appraisal of Nkran deposit, sites will be identified to drill metallurgical holes for a future metallurgical test work programme and geotechnical holes for a geotechnical programme.
The Government of the Republic of Namibia (GRN) has signed an agreement with the De Beers Group to increase its shareholding in De Beers Marine Namibia (DBMN) from 15% to 50%.
Shareholders have agreed to establish a new 50:50 joint venture holding company for Namdeb and DBMN.
Namdeb Diamond is owned in equal shares by the GRN and De Beers Centenary.
The new joint venture will hold licences of all land and sea operations, which are currently held by Namdeb, and will own the diamonds mined from those areas.
The diamonds produced by Namdeb and DBMN will be sorted, valued and marketed by the Namibia Diamond Trading (NDTC), a 50:50 joint venture between the GRN and De Beers.
Wolf Minerals has received a positive definitive feasibility study (DFS) for its Hemerdon tungsten and tin project in the UK.
The project consists of a two-stage open pit, along with a 3Mtpa concentrator and associated infrastructure.
According to the study, the value of the project is £74m ($105m), with cash cost of $105/metric ton unit and has a mine life of ten years.
The ten-year DFS pit design is limited only by the approved planning permission and has the resource potential for the mine life to be extended by several years.
Wolf Minerals managing director Humphrey Hale said that, following the completion of the feasibility study, the firm is ready to commission the processing plant by the end of 2013.
Vale Initiates Mining Activities at Moatize Mine, Mozambique
Vale recently celebrated the beginning of mining activities at its coal mining project in Moatize, in the Tete province of Mozambique, ahead of operations at the processing plant. Production is set to start in July 2011. With an investment of USD 1.658 billion, the mine will have a production capacity of 11 million tons per year of metallurgical and thermal coal. The coal from Moatize will be transported via the Sena railway line, over a distance of 600 kilometres, to the coal terminal currently under construction at the Port of Beira in the Sofala province.
Pre-operational activities began in June last year. The mining equipment operator team that has been involved in the pre-operational activities is 90% Mozambican.
Diversified miner Rio Tinto recently shipped its one-billionth ton of iron-ore from its operations in Western Australia to customers in China.
The billionth ton was loaded onto the Yi Da at its Cape Lambert port operations with a cargo of 205 000 t of Yandicoogina iron-ore fines sourced from the Hamersley operation.
The load would be delivered to China in early June.
Rio’s CEO for iron-ore and Australia Sam Walsh said that the achievement highlighted the longevity of Rio's relationship with China.
“Over the years, that relationship has broadened and deepened, through our joint ventures with Baosteel and SinoSteel in the Pilbara and most recently, our partnership with Chinalco in Africa and China itself,” Walsh said.
“No other company has exported anywhere near this amount of iron-ore to China and it took 38 years for us to do so.”
Rio’s first shipment delivered to China in September 1973 was 21 812 t of Hamersley lump ore on the vessel Stolt Vista. Rio Tinto CEO Tom Albanese said earlier this month that the group remained confident about the demand outlook for iron-ore. China is the world’s largest importer of iron-ore, used in the steelmaking process.
Cliffs Natural Resources Inc. recently announced that the Chinese Ministry of Commerce (MOFCOM) has cleared Cliffs' proposed acquisition of Consolidated Thompson Iron Mines Limited. MOFCOM is the final regulatory agency whose approval was necessary to proceed with the closing of the acquisition of Consolidated Thompson. Subject to certain other closing conditions, Cliffs anticipates closing the acquisition on May 12, 2011.
India, aiming to increase atomic-energy generation capacity 13-fold in the next two decades, is in talks with Kazakhstan, Niger and Namibia to acquire uranium mines, the head of the nation’s nuclear programme said, according to an article in Mining Journal.
Negotiations are also being held with Canada for importing the reactor fuel and an accord may be signed “soon,” said Srikumar Banerjee, chairman of the Atomic Energy Commission. India, which buys uranium from France, Russia and Kazakhstan, will push ahead with its nuclear-energy programme, he said.
India’s nuclear plants comprise about 3% of its electricity capacity, with plans to increase its nuclear-generation capacity to 60GW by 2030, according to the Planning Commission. Nuclear Power Corp of India, the nation’s monopoly atomic-energy producer, said on April 13 it was considering a venture with state-run Uranium Corp of India to buy mines overseas.
Higher uranium supplies helped Nuclear Power Corp boost generation capacity 41% to a record 26.47 billion units in the year ended March 31, Finance Director Jagdeep Ghai said recently. The company expects to lift capacity to 32 billion units this year, he said.
India’s annual domestic uranium production is expected to double to about 800t by 2014 from mines in the eastern state of Jharkhand and the southern state of Andhra Pradesh, Banerjee said. The country is developing a new mine in Tummalapalle in Andhra Pradesh with reserves of 49,000t, he said.
Gloucester Coal Ltd plans to become one of Australia’s leading coal miners through the acquisition of Donaldson Coal Holdings Ltd and Monash Group.
To help fund the acquisitions, Gloucester said it was undertaking a A$230 million equity raising at A$9/share through a fully underwritten entitlement offer.
Gloucester has agreed to buy Donaldson from its major stakeholder, commodities trader Noble Group Ltd, for A$585 million.
The deal includes A$360 million in new Gloucester share issued to Noble at A$9.75/share, subject to a 12-month escrow period on all shares issued.
Gloucester would take on the remaining A$225 million in debt, including A$186 million to Noble and A$39 million to a third party lender. Donaldson owns one open cut and two underground mines producing thermal coal and semi-soft coking coal 25km west of Newcastle in New South Wales.
The company also owns a 11.6 percent founding shareholding in NCIG Holdings Pty Ltd, a new coal-export terminal at the Newcastle port.
To acquire Monash, Gloucester has agreed to pay Elemby Holdings and its associated entities A$30 million plus a number of new converting shares (subject to reaching certain milestones).
A completed deal would see Gloucester gain control of the Monash thermal and semi-soft coking coal project in the Hunter Valley region of New South Wales.
A company which was formed by the marriage of an Australian gold company with a Canadian listed producer has a target of attaining production of 800,000 ounces by 2015.
Chief operating officer of Alacer Gold Corporation Louw Smith told the Resources and Energy Symposium in the Australian mining city of Broken Hill that there were growth developments at both the company's operations in Western Australia and in Turkey.
Alacer is a merger of Australia's Avoca Minerals and Canadian-listed Anatolia Minerals Development in February this year, taking in the West Australian mines of Higginsville, South Kalgoorlie and a 49% stake in the Frog's Leg mine - in partnership with La Mancha - and Anatolia's Copler mine in Turkey.
Louw Smith said group March quarter production was 91,259 oz, elevated by the ramping up of production at Copler.
Aggressive exploration had seen reserves for operations increase to 5.5 million gold oz.
Copler, a heap leach operation, poured first gold last December and achieved 17,000 oz in the March quarter on a head grade of 1.2 grams/tonne. Estimated cash operating costs were $US350/oz.
This mine was forecast to produce 135,000 oz this year with cash operating costs of $US463/oz.
The Higginsville mine, between Coolgardie and Norseman, produced 36,123 oz in the March quarter at an underground head grade of 3.5 g/t, and is projected to produce 172,000 oz this year at a cash cost of $US660/oz.
Satellite ore sources to the Triton underground mine - Vine and Chalice - are being developed.
The smaller South Kalgoorlie operation produced 16,790 oz in the March quarter at a grade of 1.1 g/t and has a forecast output of 40,000 oz this year at a cash operating cost of $US963/oz.
Mining studies show South Kalgoorlie has potential for 15 Mt grading 1.5 g/t gold.
The 49% owned Frog's Leg underground mine provided Alacer with 15,080 oz in March from ore grading 6.5 g/t and there is a projected 60,000 oz for 2011 at a cash cost of $US446/oz.
Smith said the company has a budget this year of spending between $US30-35 M in Turkey and that takes in the Cevizlidere copper-gold prospect and the Karakartai gold-rich copper porphyry and evaluation on some of the 82 exploration licences held in Turkey.
In Australia, the spend would be between $US20-25 M and take in targets in the Higginsville region that extend from between St Ives (near Kambalda) down to Norseman, depth exploration at South Kalgoorlie and further work on depth extensions at Frog's Leg.
Bathurst Resources Ltd and L&M Energy Ltd both presented at the first Resources and Energy Symposium in the major mining centre of Broken Hill in the far west of New South Wales.
Bathurst holds a series of coal prospects in the Buller coalfield on the South Island's West Coast with the most advanced, Escarpment, being geared for production for high quality coking coal which it will ramp up to 1 million tonnes per annum, leading in about two years to 2 Mtpa.
The company, which arrived on the NZ scene as an Australian penny dreadful only last year, acquired a series of Buller coalfield prospects and also moved into production status this year through the acquisition of two operating mines - Cascade in the Buller field and Takitimu sub bituminous coal in Southland - from Brisbane-based Galilee Energy.
An aggressive drilling programme, assisted by established non-JORC Code resources at Escarpment and Deep Creek, allowed Bathurst to undertake major capital raisings and transform from a market capitalisation of about $A6 million to $A750 M.
In his presentation Bathurst executive Steve O'Dea said initial production would be an annualised 650,000 tpa building up to 1 Mt and that the prime export point would be the under-used port of Westport, which could be viewed from the top of the Denniston Plateau that contains the Buller coalfield.
Escarpment ore would go from a washery near the open cut on a slurry pipeline down the Denniston Plateau to a railhead in the low country for transport to Westport. Ore shipped out of Westport would go on limited-draft ships up to New Plymouth, a major port on the North Island for export to China and elsewhere in Panamax class ships.
Later, as production builds up Bathurst will look at the option of sending some coal on the 380 kilometre long railway across the Southern Alps to Christchurch's port of Lyttelton for shipping out in Panamax class vessels.
L&M Energy's chief executive Kent Anson told delegates that the company was currently drilling its Ohai coal seam gas (CSG) in Southland to convert existing 3P reserves of 274 petajouls to 2P status for development.
One major offtake deal for the CSG is with the New Zealand Aluminium's Tiwai Point smelter at Bluff near Invercargill - a facility with a high energy demand - that is controlled by Rio Tinto.
Anson said should there be a strong conversion rate at Ohai to 2P status then the project would be as large if not larger than any existing conventional gas deposits in the Taranaki Basin of the North Island.
The 2P status should be known by the end of this year and Ohai should be in production within two years, making it the first CSG project in NZ, ahead of the advancing CSG projects of the country's State-owned coal miner Solid Energy.
L&M Energy has a large number of coal and CSG prospects in NZ and also holds onshore and offshore oil exploration prospects in the Taranaki.
ASD Inc., a manufacturer of high-performance analytical instrumentation for materials measurement, announced recently the launch of two mining industry-specific spectroscopic measurement solutions, the TerraSpec Explorer and TerraSpec Examiner, for the analysis of minerals in exploration and production. These solutions provide precise real-time data for an entirely new level of visibility into every stage of mining - anywhere the sample resides.
The TerraSpec® Explorer spectrometer is designed for rapid qualitative minerals analysis during deposit mapping and exploration efforts. The TerraSpec Examiner is well-suited for use in the lab or field to perform quantitative materials analysis of ore in production.
"With the ever-increasing cost of mining exploration and operations, gathering real-time data improves productivity and reduces costs through the entire mining process - from deposit mapping and exploration to heap leaching operations," said Dr. Brian Curtiss, Chief Technology Officer for ASD. "Our near-infrared mineral analyzers have already made a major impact on geologic exploration. Now we are applying that deep understanding and precise, rapid materials analysis to the rest of the mining industry."
ASD pioneered the use of portable spectroscopic technology in mining exploration over a decade ago with the invention of the first TerraSpec. Now with the release of the TerraSpec Explorer, this portable, field-approved instrument provides immediate mineralogical analysis anywhere to speed the exploration process. The TerraSpec Explorer can assist analyzing a wide variety of deposit types by determining the key alteration minerals. With a broad spectral range (350 - 2500 nm) and 6 nm resolution, geologists can easily evaluate samples across a broad area, and rapidly determine the mineralogy of prospective mining locations, identify alteration patterns and classify ore systems.
McIlvaine Company
Northfield, IL 60093-2743
Tel: 847-784-0012; Fax: 847-784-0061
E-mail: editor@mcilvainecompany.com
Web site: www.mcilvainecompany.com