StockMarketWire.com - Caledonia Mining (CMCL) has announced that it has entered into a 6 month "cap and collar" hedge over 15,000 ounces of production using a "collar" value of USD1,050 per ounce and a cap value of USD1,080 per ounce.

The Company said that the hedge will provide it with greater certainty as to its cash flows in the period up to July 2016, by when it is expected that operating cash flows at Blanket will benefit from the projected increase in gold production.

Blanket has completed the first year of a six-year investment programme in terms of which it will invest USD70m over the years 2015 to 2021 with the objective of increasing production to approximately 80,000 ounces of gold by 2021. When the Revised Investment Plan was announced in October 2014, the anticipated capital investment in the three years 2015 to 2017 was USD50m; it is now expected to be approximately USD45m.

The hedge comprises a series of weekly contracts. If the gold price at the end of each contract falls below the collar value, Caledonia will receive the value of the shortfall below the collar multiplied by the hedged ounces. If the gold price at the end of each contract falls between the cap and the collar value, Caledonia will pay to the hedge counterparty the excess over the collar value multiplied by the hedged ounces. If the gold price at the end of each contract exceeds the cap value, Caledonia will pay to the hedge counterparty the difference between the cap and the collar multiplied by the hedged ounces. There are no other fees or expenses arising in terms of the hedge. The hedge arrangement is a financial instrument between Caledonia and a financial counterparty: Blanket will continue to sell 100% of its gold to Fidelity Printers and Refiners in Zimbabwe.

Caledonia says it intends to maintain its existing dividend policy of paying 1.125 US cents per quarter.

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Asa Resource Group (ASA) says gold sales incresed 2.4% for the 3rd quarter to 31 December 2015, to 18,506 ounces.

The average realised gold sale price for the quarter was USD1,096/oz and all-in Sustaining C3 Cost for the quarter was USD988/oz and C1 cash cost for the quarter of USD820/oz.

Other operational highlights included:

Gold - Freda Rebecca Mine (Zimbabwe)

- 3 percent All-in Sustaining C3 costs cut and 5.7% C1 cash costs cut

- All-in Sustaining Cost was below the average realised gold price for the quarter

- Average feed grade for the quarter of 2.19g/t

- Clean ROM stockpile Nickel - Trojan Mine (Zimbabwe)

- 5.6% growth in Nickel Sales to 1,577t

- 10% increase in production of nickel in concentrate to 1,584t

- Averaged net realised nickel in concentrate sale price for the quarter of US$6,121/t

- All-in Sustaining C3 costs of nickel in concentrate for the quarter of US$6,349/t and C1 cash cost for the quarter of US$4,933/t

- 16% All-in Sustaining C3 costs cut and 28% C1 cash costs cut

- Average Head grade for the quarter of 1.78%

- Nickel Recovery rate for the quarter of 87.3% Diamonds - Klipspringer Mine (South Africa)

- 3% growth in Klipspringer's throughput of Marsfontein fine residue tailings to 54,596t

- 43% decrease in Diamond sales quarter-on-quarter to 19,398cts

- Average realised fine diamonds sale price for the quarter of US$18.18/ct

Mr Yat Hoi Ning, the Company's Chief Executive Officer commented:

Although the commodity prices continue to fall in this quarter, making the overall business environment even more challenging, with the ongoing improvements put in place by management, our businesses are slowly but surely showing good progress on all levels.

At BNC's Trojan Nickel Mine, our new cost control measures have reduced C1 and C3 costs by nearly $2,000/t and $900/t respectively since quarter ended March 2015. Our management team in Trojan is still investigating ways to further reduce transport costs by 10-15%. Both nickel head grade and concentrate production have increased by 10%, over the past quarter, mainly due to our strategic priority to accessing the higher grade ores.

At Freda Rebecca Gold Mine, the total increase in tonnes mined was almost 25,000t and gold sales were increased by almost 10,000oz gold production, year to date compared to the same period last year. We endeavour to continue with our rolling plan at Freda Rebecca, as it continues to yield positive results.

At Klipspringer Diamond Mine, the diamond treatment plan has treated an additional 12,000t since the comparable 2014 period. The Diamond sale price was increased by US$1.56/ct.

The results in January 2016 were promising and encouraging:

Trojan had a good start in the year. Despite experiencing a lost week at the start of the month our nickel production was close to the target of 644t, only short by 33t in terms of production targets.

It is expected that the call for the last quarter will be met due primarily to operational improvements which will result in reduced underground power interruptions, resolution of compressed air shortages and increased access to dump trucks, enhancing the development pace and hence increased access to high grade ore.

At Freda Rebecca in January 2016 there was an improvement in gold production during the month resulting in 5,769oz being produced (Dec 2015 - 5,688oz) at an average realized price of $1,109/oz. Power suspension is still the major disruption factor. We will replace current transformers in February and expect the new transformers will improve power supply continuity to the operation. To combat other challenges we have faced we are installing off-set liners that are intended to improve on throughput as well as commissioning a new loading unit to improve and stabilise ore availability.

In the meantime, our cost control measures shall continue in order to optimise the performance of the mines. I remain confident that this pattern of steady improvement will persist until operating targets are reached.

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Landore Resources (LND) has entered into an option agreement with Ardiden to sell the Root Lake lithium property in north-western Ontario, Canada. The option agreement provides that Ardiden can purchase Landore's interest in Root Lake on the following terms:

- a non-refundable deposit of CD50,000 payable to Landore upon the date of execution of the option agreement; and if the Option is exercised:

- CD150,000 cash payable by Ardiden to Landore on the Completion Date; and

- CD150,000 of ordinary shares of the Optionee, such ordinary shares to be: (i) issued by Ardiden to Landore on the Completion Date, and (ii) issued at the 20-day VWAP (such VWAP to be calculated in accordance with the rules of the Australian Securities Exchange, the "ASX", excluding block trades) of Ardiden's ordinary shares; and

- The granting to Landore of a 3% net smelter royalty from minerals produced from the Root Lake property, to be effective at the Completion Date which will be evidenced by a customary royalty agreement. The Royalty Agreement shall include the right for Ardiden to purchase 50% of the Royalty (i.e. half of the 3%) from Landore for a payment of CD1,000,000.00. The completion date shall be the earlier of a) 20 business days after the completion of the due diligence period (150 days from the signing date of the option agreement); or b) 31 July 2016.

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BMR Mining (BMR) has announced that, at its Annual General Meeting held earlier today, all resolutions put to shareholders were passed.

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ECR Minerals (ECR) has announced the issue and allotment of 537,618,001 new ordinary shares of 0.001 pence each in the Company at a price of 0.0193 pence per share pursuant to the conversion of USD150,000 of outstanding principal amount under the Company s convertible loan facility with YA Global Master SPV Ltd.

Accordingly, the outstanding principal amount will be reduced by USD150,000, to nil.

A further 2,945,868 new Ordinary Shares are to be issued and allotted to YA Global at a price of 0.0193 pence per share in settlement of accrued interest.

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At 3:55pm:

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[LON:CHL] Churchill Mining PLC share price was +0.01p at 17.63p

[LON:CMCL] Caledonia Mining Corp share price was 0p at 45.5p

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[LON:LND] Landore Resources Ltd share price was 0p at 0.58p

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