- Landore Resources [LON:LND] says latest drilling has extended the BAM East gold prospect on its Junior Lake Property, Ontario, Canada.

Landore remobilised to site on the 30 June to undertake a 3,500m drill programme to test the east, west and down dip extensions of the new gold zone following the positive results from drilling on the prospect, announced on 4 April.

To date, 15 NQ diamond drill holes (0416-524 to 0416-538), for 2,613m, have been completed with results received for the first 4 drill holes. Highlights: - Drilling continues to report wide zones of gold mineralisation including high grade intersections with drill hole 0416-526 reporting 38.50 metres (m) at 3.42 grams/tonne (g/t) gold including 1.94m at 34.69g/t gold, 3m at 8.84g/t gold and 3m at 6.61g/t gold.

- Visible gold: 10 of the 15 drill holes completed to date have multiple instances of visible gold (VG) up to 2 millimetres long occurring as singular pieces or in clusters contained in or adjacent to quartz veinlets.

- Drilling at 50m stations has extended the BAM East Gold Prospect lithology to 400m along strike and up to 150m down dip. The prospect remains open along strike to the east and west and down dip.

Landore's mineral exploration consultant Chris Cooper said: "BAM East gold mineralisation is a typical shear-hosted gold-bearing system in an Archaean greenstone belt. The local intensity of the quartz-gold veins focussed by shear style deformation is such that potentially economic mineralisation could be present with a zone up to at least 38m true thickness, possibly more. The mineralisation is structurally lead and not bound to any one lithology. Ultimately the style of the shear induced fractures will determine the width of the prospective vein zones.

"The mineralisation is open to the East and West and to current drill depth. Mineralisation is open to surface, below the overburden. The prospective area under consideration is also big enough to host other similar gold mineralisation or could host a much larger deposit. "The gold is from sub-visible size to large, 2mm, pieces and is free gold and not thought to be encapsulated in sulphides or bound to sulphides.

"The style of mineralisation has many corollaries with similar commercial gold deposits in the Canadian Shield, noteworthy are those also in the Superior Province such as Kirkland Lake, Hollinger-McIntyre, Kerr-Adison and Sigma-Lamarque"

* * *

Kibo Mining [LON:KIBO] is pleased with the continued progress at the Mbeya coal to power project and the Imweru gold project but warns changes being considered by the Tanzanian government may delay completion of the integrated bankable feasibility study.

Kibo says work on the MCPP is continuing at pace with all attention and resources focused on completing the integrated bankable feasibility study as soon as possible, so that financial close activities can commence.

Kibo says policy changes currently being considered by the Tanzanian government which are aimed at improving and simplifying the procurement process for independent power producer projects like the MCPP, may cause a slight delay in completing the IBFS.

It says: "delays may be required to allow the company to incorporate the latest IPP-policy (should any change occur) with regard to power purchase agreements associated with IPP-projects. Productive interaction with the Tanzanian Ministry of Energy and Minerals and TANESCO is continuing, with all parties working diligently towards the development and conclusion of a mutually agreed commercial PPA for the MCPP. Parallel work streams are also progressing well.

Imweru project On June 2 the Company signed a Memorandum of Understanding ("MOU") with Lake Victoria Gold LTD in which the two companies agreed to consolidate their respective Imweru and Imvelo gold projects. On July 5 the Company announced a minor unforeseen delay in completing the compliance and legal work required to finalise the definitive agreement which will conclude the transaction contemplated in the MOU.

The final component required to satisfy compliance and legal requirements, was a site visit to Imweru and Imvelo, attended by representatives of the Company and LVG respectively, as well as independent technical consultants and financial advisors to the transaction. This site visit was successfully conducted from 26 to 29 July 2016, during which the independent consultants and advisors were able to obtain conclusive independent verification of all technical and legal representations fundamental to the definitive agreement.

All outstanding compliance and legal work have now been completed and the Company and LVG are now in a position where they can execute the definitive agreement, upon receipt of the final version thereof from legal counsel. This is expected by no later than 8 August.

Chief executive Louis Coetzee said: "We are very pleased with the continued progress at the company's two main projects. Significant progress has been made on both over the past four months and both projects are continuing to grow in stature and value. We are looking forward to realizing this value over the coming months and further updates will follow shortly."

* * *

Sunrise Resources [LON:SRES] has signed a contract for a further drill programme at its Bay State Silver Project in Nevada.

"High-grade silver mineralisation was encountered in all three holes in our first phase of drilling on the Chihuahua Vein, so I am pleased to be announcing a contract for follow up drilling as well as a proposal for our first drill test of the parallel Lincoln Vein," said executive chairman Patrick Cheetham.

"Our key objective in this next phase of drilling is to demonstrate continuity of mineralisation along strike; to justify a substantial resource definition drilling programme, and a scoping study for the development of future silver mining operations."


- Three further drill holes planned as follow up to high-grade silver mineralisation found in Phase 1 drilling.

- Two holes to test Chihuahua Vein south of Mining Canyon and beneath 19th/20th Century mine workings.

- Additional hole planned as first test of Lincoln Vein System.

- Archaeological clearance work under way.

- Programme start provisionally scheduled for end of August.

* * *

Rio Tinto [LON:RIO] has posted H1 net earnings of $1.713bn, up 113% from $806m a year earlier, but more than halved its interim dividend per share to 45 cents, from 107.5 cents.

"Rio Tinto has generated net cash from operating activities of $3.2 billion and reported underlying earnings of $1.6 billion, against a backdrop of continued volatility and lower commodity prices," said CEO Jean-Sebastien Jacques in a statement.

"We focus on delivering value to shareholders. This focus is unrelenting, with further cost reductions achieved in the half and EBITDA margins of 33 per cent.

"With our strong operating cash flows, tight control over capital expenditure and progress on divestments, the balance sheet remains robust. Having paid the 2015 final dividend of $1.9 billion in April 2016, we reduced net debt during the half to $12.9 billion.

"Our balance sheet strength and Tier 1 assets provide a stable foundation in these uncertain and volatile markets, which is fundamental in a cyclical and capital-intensive industry.

"We will generate cash at every opportunity, which we will then allocate in a disciplined way to deliver returns to shareholders, while also investing in compelling growth.

The board, today, has announced an interim dividend of 45 US cents per share, consistent with our commitment to no less than 110 US cents per share for the full year."


- As announced in February 2016, for 2016 only, the intention of the board is that the total full year dividend will be not less than 110 US cents per share, equivalent to $2 billion.

- Operating cash cost improvements (including exploration and evaluation savings) of $2 billion (pre-tax) expected over 2016 and 2017, in line with previous guidance.

- Capital expenditure expected to be around $4.0 billion in 2016, around $5.0 billion in 2017 and around $5.5 billion in 2018. Each year includes around $2.0 billion of sustaining capex.

- Continuing to target 20 to 30 per cent gearing ratio through the cycle.

- Underlying effective tax rate of approximately 27 to 30 per cent expected in 2016.

- Production guidance is unchanged from the Second Quarter Operations Review, except for mined copper which is now expected to be between 545 and 595 thousand tonnes in 2016, following the revision to Freeport's guidance for Grasberg.

* * *

Beowulf Mining's [LON:BEM] geologists have completed an initial assessment of the company's Atvidaberg VMS (volcanogenic massive sulphide) lead-zinc-copper-silver exploration licence, located in the Bergslagen area in southern Sweden.

Bergslagen is one of Europe's oldest mining areas and contains one of the world's main VMS districts, with ore deposits characterised by high contents of zinc, lead, copper and sometimes silver and gold. It yielded a substantial portion of Sweden's mineral wealth in the 1800-1900s, with a number of large mines and hundreds of smaller mines producing copper, zinc, lead, gold, silver and iron ore. Several reconnaissance field excursions have been made to the licence area, to establish 'first impressions' and assess the geological environment, the structural setting, style and type of mineralisations present. Two main areas have been visited, Bersbo and Mormor, where old mine workings, waste dumps and exploration pits were examined.

Beowulf says that based on the preliminary findings of its fieldwork at Atvidaberg, it is planning and budgeting the next stages of it exploration programme, which has already commenced and includes: - Ground magnetic surveys to define areas of high magnetic relief, which might potentially indicate mineralisation, particularly in poorly exposed areas covered by glacial till, concealing 'blind' deposits;

- Rock chip sampling; and

- Geological and structural mapping. Looking further ahead, if results continue to be positive, it will undertake geochemical till sampling, and additional geophysical surveys, to best define targets for drilling during 2017.

Chief executive Kurt Budge said: "We have not wasted anytime getting on the ground at Atvidaberg and starting work.

"As I wrote when we were awarded the licence, Atvidaberg diversifies our current portfolio and is a further demonstration of the Company's commitment to investing and doing business in Sweden.

"Our hypothesis, to explore in the backyard of producing mines, and areas that have been mined in the past, is already delivering positive findings, such as visible high grade mineralisation lying in dumps, and mining records that show the potential for new discoveries, and extensions to known orebodies.

"With both Atvidaberg and our graphite portfolio in Finland, we are focused on 'intelligent exploration'. This includes managing our costs, understanding all the historic data that is available, efficiently committing resources to fieldwork to develop our knowledge base, to eventually define the best possible targets for drilling."

* * *

Anglo American [LON:AAL] has announced the commissioning of De Beers's Gahcho Kue diamond mine in the Northwest Territories of Canada.

Gahcho Kue- the world's largest new diamond mine - is expected to ramp up to reach full commercial production in Q1 2017, producing an average of 4.5 million carats per year over its anticipated 13-year life.

De Beers chief executive Bruce Cleaver said: "Starting the ramp up to production at Gahcho Kue- on time, on budget and in a challenging environment - is a remarkable achievement from the team. The mine is an exceptional resource in terms of carat volume, value and its potential to create meaningful economic opportunity for the surrounding community."

Anglo American chief executive and chairman of De Beers, Mark Cutifani, added: "Our successful development of Gahcho Kueis testament to the technical expertise of the entire project team, the sensitive approach we take towards our surroundings and the strength of the relationship with the community local to the operation. Discovering and bringing to fruition a new source of diamonds of this quality reminds us all of the rarity value of diamonds."

Gahcho Kueis located about 280km north east of Yellowknife in the Canadian Northwest Territories and is a joint venture between De Beers (51%) and Mountain Province Diamonds (49%).

At 4:22pm:

[LON:BEM] Beowulf Mining PLC share price was +0.01p at 4.13p

[LON:BKY] Berkeley Energia Ltd share price was 0p at 47p

[LON:CEY] Centamin PLC share price was +0.65p at 169.05p

[LON:CHL] Churchill Mining PLC share price was +0.5p at 24.63p

[LON:CZA] Coal of Africa Ltd share price was +0.14p at 3.64p

[LON:FDI] Firestone Diamonds PLC share price was -1p at 39.25p

[LON:FRES] Fresnillo PLC share price was -12.5p at 1942.5p

[LON:GEMD] Gem Diamonds Ltd share price was -0.5p at 130p

[LON:HOC] Hochschild Mining PLC share price was +2.85p at 291.05p

[LON:KIBO] Kibo Mining share price was -0.5p at 5.38p

[LON:KMR] Kenmare Resources PLC share price was +2.75p at 210.75p

[LON:LND] Landore Resources Ltd share price was -0.3p at 2.53p

[LON:RIO] Rio Tinto PLC share price was -13.75p at 2427.75p

[LON:SRES] Sunrise Resources PLC share price was -0.01p at 0.2p

[LON:VED] Vedanta Resources PLC share price was -8p at 535p

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