The Letter of Intent provides terms for a future off-take agreement, subject to successful technical and legal due diligence, and also to Thor securing necessary funding to develop the Molyhil project, including:
- Off-take for in the order of 70-75% of the annual production of scheelite concentrate from Molyhil.
- Off-take for the current 4 planned year life-time of the mine with right of first refusal to a 2 year extension term.
- A market price of the scheelite concentrate based on discounts to the London Metal Bulletin (LMB) Low Tungsten APT European free-market price.
Condor Gold [LON:CNR] is encouraged by a new technical study on its La India project in Nicaragua which shows that steeper pit walls will improve the economics of the mine.
The company says the geotechnical report has demonstrated that the La India open pit will support pit wall angles varying between 40 and 48 degrees, an improvement in the 40 to 42 degree angles assumed in the preliminary economic assessment.
Condor says steeper pit angles may allow the open pit to be pushed deeper and reduce the strip ratio of waste rock to mineralised ore, thus improving economics.
Chairman and chief executive Mark Child said: "This is particularly significant to La India project as 432,000 oz gold at 4.9g/t sits beneath the current open pit resource of 954,000 oz gold of 3.6g/t. It is also noted that the PEA used a smaller pit containing 800,000 oz gold.
"An improvement in pit angles could drive the pit deeper, so that circa 1 million oz gold open pit resource could be used in the next mining study.
"Furthermore, it is likely that the pit angles with be improved/optimised further once hydrogeology studies are completed, which include hydrogeological drilling to determine the dewatering characteristics of the open pit."
The geotechnical study was planned and overseen by SRK Consulting (UK) Limited and completed to pre-feasibility study level of confidence incorporating data from:
*Â· Geotechnical mapping of surface outcrops and old mine workings.
* Geotechnical core logging by an SRK consultant of 11 geotechnical drill holes for 1836m, supplemented by geotechnical logging of 12 selected resource drill holes for a further 2550m.
* Measurement geo-mechanical properties of over 400 samples completed both on-site and in specialist geotechnical laboratories in Nicaragua and the United Kingdom.
* Groundwater data collected from 13 existing wells and mine shafts, supplemented by 6 piezometers installed in selected geotechnical drill holes, including hydraulic conductivity data collected using falling head tests on three selected drill holes.
* 3-Dimensional geological mapping of rock types, geological structures and weathering horizons.
Bezant [LON:BZT] is encouraged by assay results from the phase one exploration programme at the Eureka copper-gold project in Argentina.
The company says the results indicate an average 1.68% copper content for the samples assayed and strongly support the project's potential and confirm previous sample values.
Chief executive Bernard Olivier said: "The 1.68% average copper content from our trenching work confirms our belief that Eureka hosts a valuable near surface copper-gold resource. Located near established infrastructure in an area with a history of profitable small-scale mining, we continue to assess the viability of Eureka through our ongoing considered exploration work programme.
"We are further encouraged by the high copper assay results and geological similarities between the known Eureka I mine area and the samples taken along a potential southern extension over the 10km of the mineralised zone.
Stellar Diamonds [LON:STEL] confirms the first blast in its bulk sampling programme of its 100% owned Tongo kimberlite dyke project in eastern Sierra Leone.
"The objective of the bulk sampling programme is to obtain a representative diamond parcel for valuation and price modelling which forms an integral part of the feasibility study process," said EO Karl Smithson in a statement.
"The Tongo Dyke-1 diamonds are of exceptional quality with a 1,140 carat parcel previously achieving a modelled average value of $248 per carat, even though this parcel did not contain any diamonds larger than 4 carats," he added.
Highlights of the bulk sampling included:
- First ore blast completed successfully and on schedule
- Targeting diamond parcel of up to 2,000 carats for enhanced diamond value modelling
- DMS plant on site and ready to process bulk sample material
- Photographs to be uploaded on to the Company's web site
- Tongo diamonds are of exceptional quality with average modelled value of $248/ct.
Hochschild Mining [LON:HOC] is on track to meet its full year production target of 20 million silver equivalent ounces.
This follows a solid third quarter with attributable output of 5.4 million silver equivalent ounces.
Chief executive Ignacio Bustamante said: "We have had an exciting quarter with the Inmaculada advanced project receiving its mill construction permit, as expected, as well as the recent announcement of our proposed buyout of the International Minerals minorities in Peru.
"In addition, Hochschild's cashflow optimisation programme continues apace and I am confident that we will be able to demonstrate significant savings at our full year results early in 2014."
Wessex Exploration [LON:WSX] booked a FY pretax loss rises of Â£3.4m, from a loss of Â£16m. Revenue was nil. Much of the loss could be pinned to administrative expenses and a share of joint venture losses.
"Last year was challenging, as our enthusiasm following the 2011 Zaedyus oil discovery in Guyane, was tempered by three unsuccessful wells. However, we remain hopeful that GM-ES-5, the last in the current four well drilling programme, will be successful on a prospect located down-dip from the GM-ES-1 Zaedyus discovery," the company said in a statement.
Wessex said in order to remain appropriately funded throughout 2014 and be in a position to benefit from the re-evaluation of the potential of Guyane, Wessex elected to trigger a contractual right contained in the Northpet Shareholders Agreement to conserve cash resources by opting out of paying up to Â£1.5m of funding requests still expected to be made in 2013 by the joint venture.
This would lead to Wessex reducing its interest in the Guyane Maritime Permit from 1.25% to approximately 1.1%. Alongside this, the Board has commenced a non-project cost reduction programme aimed at reducing overhead costs by a minimum of 25%. These actions should provide sufficient time and resources for the Company to optimise the value of its exploration interests during 2014.
KEFI Minerals [LON:KEFI] has raised Â£500,000 through a placing of 22,222,222 ordinary shares at 2.25p apiece.
The funds will be used to expand the pre-feasibility study on Jibal Qutman which KEFI has already started. The company's joint venture company, G&M, aims to complete the pre-feasibility study and lodge an application for its first mining licence by the end of the fourth quarter or early in the first quarter.
Managing director Jeff Rayner said: "During the past few months we have made rapid progress in Saudi Arabia with a further upgrade of the JORC Inferred Resource at Jibal Qutman. The additional funds raised will assist our efforts to complete the Pre-Feasibility Study, expand the resource base and advance the project towards development."
In connection with the placing the company has granted, conditional on admission, warrants to Fox-Davies Capital to subscribe for up to 1,111,111 0rdinary shares at 2.25p per share, representing 5% of the total number of placing shares. Such warrants will be exercisable for five years following admission of the placing shares.
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[LON:BEM] share price was -0.22p at 7.78p
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[LON:BZT] share price was 0p at 18.25p
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