StockMarketWire.com - Ormonde Mining's [LON:ORM] shares were down in late trading after it provided an update on progress at the Barruecopardo Tungsten Project in Salamanca, Spain.

HIGHLIGHTS:

� 100% of Priority 1 1 capital equipment orders placed, 60% of Priority 2 2 capital equipment orders placed.

� Plant Construction Management contract awarded to Fairport Engineering Ltd.

� ~30% of project capital budget now committed, with capital expenditure costs running below budget.

� Other progress includes: Construction readiness: second environmental bond placed. Preliminary environmental works underway.; Services: potable water feed line 80% installed.; Engineering: detailed process plant engineering design well advanced. Final site geotechnical investigations 100% complete. Dam construction engineering design 70% complete.

� 96% of land 'option to purchase' agreements exercised.

� Compulsory land acquisition process continues to be advanced on lands not covered by 'option to purchase' or rental agreements. A recent administrative appeal by a third party in relation to an element of the compulsory land acquisition process, which the Board of Saloro considers to be merely vexatious, will delay the completion of this process. Consequently, the Project Company is optimising the construction schedule, prioritising works on lands to which it has full access and temporarily deferring works on other lands, including construction of the process plant.

� These developments are expected to impact on the schedule for commissioning at Barruecopardo and a further announcement will be made once there is greater clarity on the expected period to completion of the compulsory acquisition process.

� Resource expansion drilling campaign is 85% completed and assay results are being received and evaluated.

� Focus of activities over the coming period will be on execution of onsite earthworks compaction trials and commencement of water dam construction works.

* * *

Karelian Diamond Resources [LON:KDR] says that the loss after taxation for the half-year ended 30 November 2015 was 106,913 Euro (2014: loss of 121,087 Euro) and the net assets of the Company as at 30 November 2015 were 8,249,640 Euro (2014: 8,319,399 Euro).

During the period the Company discovered a new kimberlite body, with the presence of G10(D) garnets confirmed.

It added that exploration work elsewhere is showing good results.

Other highlights from the Chairman's statement included:

"Diamond Exploration Programme

"Your Company's primary exploration area in Finland is in the Karelian Craton in North Eastern Europe.

"The Karelian Craton extends across Finland and northwest Russia. It is comparable in size to the diamond rich Slave Lake Craton in Canada. The Russian diamond company ALROSA Company Limited (Closed Joint-Stock Company), which is now the world's largest diamond miner, and owns the Lomonosova deposit in the Karelian Craton, has indicated previously that the Karelian Craton region will represent almost all of its future growth.

"Your Company's diamond exploration programme covers five regions in Finland. At Seitapera in Eastern Finland, the programme has outlined the largest diamondiferous pipe yet discovered in Finland.

"Exploration results from your Company's nearby Riihivaara target in Eastern Finland during the period covered by this report have been particularly exciting. High concentrations of kimberlite indicator minerals ("KIM") have been recovered suggesting the possible presence in the area of a new kimberlite source.

"Analysis by Rio Tinto Mining and Exploration in their Melbourne Laboratories of samples collected by your Company have identified high category rating diamondiferous kimberlite indicator minerals, which is highly encouraging.

"Exploration on our other diamond targets in Finland continues, particularly in the Kuhmo and Kuusamo areas of Eastern Finland.

"Agreement with Rio Tinto Mining & Exploration

"Under the agreement, Rio Tinto discloses to Karelian confidential information and physical geological samples relating to exploration in Finland for the purpose of the Company considering that information in relation to its own potential and existing exploration programmes in Finland.

"To date this information has included data on over 53,000 till samples, over 600 analytical results, data on KIM from over 200 locations and records on the discovery of 122 diamonds. The integration of this data with your Company's own data has been of great benefit.

"In consideration of Rio Tinto disclosing the confidential information to it, Karelian has agreed that Rio Tinto will have the option to earn a 51 per cent. interest in any project identified in Finland by Rio Tinto paying the direct cash expenditures incurred in developing the project, subject to the following conditions:

"1. For diamond projects the option will be triggered if Karelian completes 10 tonnes or more of bulk sampling for diamond exploration; and

"2. For all other minerals the option will be triggered if Karelian discovers a resource with an in situ value that is equal to or greater than the in situ value of 3 million ounces of gold in a JORC compliant resource calculation."

* * *

KEFI Minerals [LON:KEFI] says its Tulu Kapi gold project in Ethiopia remains on track for financing mid-2016 and production end-2017.

Operational Progress: - FEED (Front-End Engineering and Design) has been delivered on schedule, this month, by the Engineering, Procurement and Construction contractor (via a fixed-price, lump-sum arrangement).

- KEFI's expanded Social Performance Team has refined the plans for livelihood restoration of community members to be resettled and for the community development foundation. The Company now also plans to build an airstrip, which will provide advantages operationally for KEFI and for the community.

- KEFI has significantly expanded the proposed exploration activity to occur in the vicinity of the planned Tulu Kapi ore processing facility, with the aim of increasing production and extending project life by expanding Ore Reserves.

Finance Plan and Syndication:

- Capital estimate remains at c. US$120 million (including working capital) and c. US$130 million after adding transaction, financing and insurance costs.

- All targeted syndicate members are engaging along the foreshadowed lines as follows:

* US$60 million senior secured debt with average tenor of 6 years

* US$30 million equity, either already invested or to be invested for project level equity

* The balance of capital requirements to be sourced from product-linked gold finance plus a 100,000oz hedge facility (from Ore Reserves of 1Moz) and cost-overrun facilities

* Final specifics will need to cater for the gold price prevailing in mid-2016, which is presently higher than what was prevailing when the syndicate's plan was first designed

- KEFI has advised all planned financiers of their preferred status and role within the base case financing syndicate. However, whilst due diligence continues, alternative proposals will remain under consideration. Formal syndicate commitment is scheduled for mid-2016 and debt drawdown towards the end of 2016.

- Stress testing of the financial projections re-affirm robust cash flows for coverage of all planned commitments. The focus is now on refinement and independent review of cost-overrun facilities designed to complement the proposed terms of engagement with the project contractors.

- The project equity contributions are to be made prior to debt drawdown towards the end of 2016:

* More than US$60 million of equity capital will have been invested before debt drawdown from the financing syndicate, including more than US$5 million of the start-up capital estimate of US$130 million that will have been spent during 2016.

* Legal documentation is being prepared with the Government of Ethiopia for a proposed US$20 million project equity investment.

* KEFI maintains dialogue with parties interested in equity investment at the project level as well as with the Company's major shareholders.

* Directors intend to present the finalised plan to shareholders for approval at the Company's Annual General Meeting, which is expected to be held in June.

Finance director John Leach said: "We are pleased that we remain on track to complete financing in mid-2016, which will be transformational for the Company, and commence production at the end of 2017. The assembly of an international financing syndicate always requires intense activity, which is especially challenging in the prevailing weak capital market conditions for the mining sector. It is, therefore, gratifying that we continue to progress with the syndicate that we had targeted from the outset - all leaders in their field.

"This is a testament to the excellent work completed by our team and contractors, which has transformed Tulu Kapi into a robust project, and also to the commitment demonstrated by the Government of Ethiopia to the development of the mining sector - commencing with Tulu Kapi as the first international-financed mine development project. As such, the fundamentals of the project remain strong, and we look forward to generating value for all shareholders and other stakeholders."

* * *

Stratex International [LON:STI] has advised partner Lodos Maden Yatırım Sanayii ve Ticaret that it will not be contributing its pro-rata share of recent financing at the Muratdere copper-gold project in Turkey.

As a result, the company's interest has been reduced to 14.87%.

This decision is based on the decrease in the price of copper and the belief that it will be some considerable time before the copper price recovers sufficiently to justify further investment by Stratex.

* * *

Russia-focused PGM explorer and developer Eurasia Mining [LON:EUA] has confirmed positive developments at its West Kytlim project.

Highlights:

- The Technical Design Report for the diesel operation at Malaya Sosnovka has been submitted to the Ministry for Subsoil use.

- Contractors assessing the route for the proposed power line to West Kytlim have finished all necessary field work including land surveying, ecological sampling and shallow geotechnical drilling.

- The Company has now received the topographic survey from the contractors for the next area to be mined, the Kluchiki area.

The mining schedule requires a diesel powered start up phase targeting high grade reserves at surface in the Malaya Sosnovka area. The Technical Design Report mentioned above has been submitted to the relevant ministry for mine plan approval to be obtained prior to commencement of operations. Separately, a mine plan is being developed to cover development of the entire licence area using mains electrical power, which is planned to be available after construction of a power line to site. We believe the main advantage for the use of grid electrical power is clear, as the price is estimated at 5 US$ cents per KWh.

This compares with average industrial power costs in the UK of 13 US$ cents per KWh. A field assessment on the route of the power line has now been completed. Eurasia believes the advantages of electrical power will become obvious as we move towards producing from more than one site, and with the commencement of the deployment of electrically powered dragline operations. Draglines can operate 12 months of the year and will be used for overburden removal and stockpiling of mineralized material for later processing. The next area (within West Kytlim) which Eurasia will target for mining operations, the Kluchiki area, has now been surveyed in detail. We believe this will greatly assist advanced planning for the location of infrastructure including wash plants and water storage and tailings dams required for production in the second year of operations at West Kytlim

Managing director Christian Schaffalitzky said: "While the diesel operation is smaller scale and more expensive per tonne than electrical power, it allows us to establish operations at West Kytlim for the long term. Eurasia is aiming to establish a minimum 10 year project producing platinum."

* * *

Nyota Minerals [LON:NYO] has noted speculation surrounding the notifications of shareholdings made recently by third parties, and in particular Harwood Capital LLP (as investment adviser/manager).

The board has not received any correspondence from Harwood Capital, other than the TR1 notification. At the request of certain other shareholders the board is considering the composition and compensation arrangements of the board and the possibility of further appointments, but no decision has to date been taken. No fieldwork can be undertaken at the Ivrea nickel-copper project this quarter due to the weather. During this period the board continues to review new business opportunities for the development of the company as they arise. As disclosed in the chairman's statement at the annual general meeting, these opportunities include those in new sectors. It says further announcements will be made as and if appropriate.











At 4:06pm:

[LON:AQP] Aquarius Platinum Ltd share price was -0.12p at 13.13p

[LON:BEM] Beowulf Mining PLC share price was -0.05p at 4.45p

[LON:BKY] Berkeley Resources Ltd share price was 0p at 23.25p

[LON:CEY] Centamin PLC share price was +2.55p at 92.2p

[LON:CHL] Churchill Mining PLC share price was 0p at 17p

[LON:CZA] Coal of Africa Ltd share price was +0.09p at 2.21p

[LON:EUA] Eurasia Mining PLC share price was 0p at 0.65p

[LON:FDI] Firestone Diamonds PLC share price was +0.88p at 20.25p

[LON:FRES] Fresnillo PLC share price was +3.5p at 997p

[LON:GEMD] Gem Diamonds Ltd share price was +0.38p at 114.63p

[LON:HOC] Hochschild Mining PLC share price was +2.75p at 69.75p

[LON:KDR] Karelian Diamond Resources PLC share price was -0.03p at 0.78p

[LON:KEFI] KEFI Minerals PLC share price was -0.01p at 0.33p

[LON:KMR] Kenmare Resources PLC share price was +0.01p at 0.66p

[LON:ORM] Ormonde Mining PLC share price was -0.08p at 1.35p

[LON:STI] Stratex International PLC share price was -0.05p at 1.78p

[LON:VED] Vedanta Resources PLC share price was +20.05p at 273.35p



Story provided by StockMarketWire.com