- Edenville Energy [LON:EDL] says a technical assessment carried out by Sound Mining Solution (Pty) shows there is the potential to significantly increase the ultimate size of the Rukwa coal to power project from 120MW to 300MW.

The company, in conjunction with SMS, has looked at several different scenarios with the focus on the provision of fuel of suitable energy value; the targeting of near surface coal to keep mining costs low and maximising the yield from any washing of the raw coal. The results indicate that the Mkomolo and Namwele deposits can provide a mineable resource of approximately 90 million tonnes based on an overall strip ratio of 4:1.

This resource could provide enough fuel to supply a 300MW power plant for a period of approximately 30 years. The company is looking at suitable mining options to maximise the recoverable tonnage from the deposit with the aim to keep coal extraction and processing costs below US$30 per tonne.

An update says: "Washing the coal to a moderate degree could provide a product with an energy value of approximately 14.5MJ/kg, the raw coal yielding a high recovery of approximately 74%. Recent independent feasibility work on the project by a major EPC (Engineering, Procurement and Construction) group has confirmed this grade of fuel product as being suitable for power generation utilising recognised Circulating Fluidized Bed (CFB) technology.

"Whilst the company continues to focus on completing the Phase One feasibility requirements for a 120MW project we can now move forward with the knowledge that the project has sufficient minable coal resources to support a potential phased expansion for an increase in size of the power plant up to 300MW.

"As mining progresses along the strike of the deposit there is also the possibility to selectively target coal through highwall or auger methods to extract tonnages without the need to mine overburden. The company will look at the potential of this in more detail as part of an overall life of mine plan." Edenville says these numbers only take into account the Mkomolo and Namwele deposits. Limited drilling already completed at Muze results in approximately 5 million tonnes of coal at a similar 4:1 strip ratio and high yield of 75% when washed at a similar coal specification. The Muze deposit has a historical resource of some 60 million tonnes and provides further potential for options on expanding fuel supply in the future.

In parallel with the development of an integrated coal to power project, the Company continues to assess the potential for small scale mining to supply coal to the local market. Additionally, preliminary results are being received from SGS Laboratories who are analysing the bulk samples extracted in September.

Full results are expected to be received in the coming weeks and will be announced when received.

Chief executive Rufus Short said: "These latest calculations confirm the availability of minable resources to expand the Rukwa Coal to Power Project to a possible 300MW power project. We are both excited about the potential and also reassured that the existing project has access to ample near surface economic fuel supplies.

"At this point we are concentrating on completing the phase one feasibility work for a 120MW project and will now build in expansion possibilities for a larger project as appropriate. The coal resources at Rukwa underpin significant potential for Tanzania to produce much needed power and we look forward to further working alongside the government of Tanzania to achieve this goal."

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Horizonte Minerals [LON:HZM] is proposing to raise £9.0 million, before expenses, through a conditional placing of 450,000,000 ordinary shares at 2p apiece.

The net proceeds will be used to fund the preparation of a definitive feasibility study for the company's 100% owned Araguaia nickel project in Brazil and for general working capital purposes. The placing is conditional upon, among other things, shareholder approval.

* * *

Anglo American Platinum [LON:AAL] has confirmed the completion of the sale of the Rustenburg operations by its wholly owned subsidiary Rustenburg Platinum Mines to Sibanye Rustenburg Platinum Mines Proprietary Limited and that Sibanye has now taken over ownership, control and management of those operations.

The Rustenburg operations comprise the Bathopele, Siphumelele (including Khomanani), and Thembelani (including Khuseleka) mining operations, two concentrating plants, an on-site chrome recovery plant, the Western Limb Tailings Retreatment Plant, associated surface infrastructure and related assets and liabilities on a going concern basis, including normalised levels of working capital.

Anglo American Platinum chief executive Chris Griffith said: "This is a major step in the repositioning of Anglo American Platinum's portfolio. The sale of the Rustenburg Operations allows us to focus on our most competitive assets, consisting of largely open-pit and more mechanised operations which will result in higher margin production, a smaller and more highly skilled workforce, safer operations and a less complex organisation. As a result, our core operations stand to benefit from dedicated management attention and technical expertise, as well as our disciplined capital allocation model."

* * *

Firestone Diamonds [LON:FDI] swung into the black in the year to the end of June posting after-tax profits of $13.6m against a loss of $10.4m in 2015.

This resulted from the recognition of tax credits of US$22.6 million, which, if excluded, present a loss of US$9.0 million compared with the prior year loss of US$10.4 million, a more appropriate comparison presenting a slight improvement year on year.

The group had no revenue from the sale of diamonds as it was still developing its Liqhobong mine during the 2016 financial year.

The group says: "Our aim is to ensure that the project completes during Q4 2016 within the original US$185.4 million budget and at the year end, the Group was well on track to achieve this, having reached 85% completion at the end of June 2016. Costs across the Group are well controlled, particularly those related to the Project where the team has performed exceptionally.

"Whilst the Project has undeniably benefited from the weakness in the rand, there was no guarantee at the time the funding was secured that the rand would continue to devalue and this presented a risk which had to be managed accordingly.

"The Group entered into a series of currency contracts which mitigated this risk, the success of which is clearly evident. As at the year end, additional Project costs of ZAR240 million have all been funded from foreign exchange gains through effective treasury management. ZAR156 million was related to increased overburden and adverse weather delays experienced in the early part of construction and ZAR84 million related to risk mitigation items which include increased water storage capacity on site.

"During the year, funding of US$73.4 million was received. Liqhobong commenced drawdown from the ABSA project debt facility in September 2015 and received US$43.4 million during the year, and US$30.0 million in net proceeds was received from the issue of Eurobonds by the Company. This funding, together with opening cash of US$17.6 million was sufficient to cover Project and other operating costs of US$77.6 million and US$3.4 million in corporate overheads."

The board also announced the appointment of Deborah Thomas as an independent non-executive director with immediate effect. She will chair the audit committee. Thomas retired as a partner from Deloitte in May after a career spanning 22 years, during which time she has gained extensive experience advising some of the world's leading mining companies.

* * *

Amur Minerals Corporation [LON:AMC] has announced the completion of its highly successful and cost effective 2016 field season on its flagship Kun-Manie nickel copper sulphide project.

A total of 19,785 metres of drilling was completed, resulting in the expansion of the length of the Maly Kurumkon / Flangovy deposit from 2,100 metres to a total length of 3,000 metres.

In addition to the record drill season, further activities were completed during the season.

These included a phase one survey of water sources for ore processing, selection of the final access road corridor and additional trench work to identify further resource potential at Kubuk.

The total unaudited operating cost for the season is US$1.68 million, which includes the winter ice road mobilisation cost of US$122,000. The all in cost per drilled metre for 2016 is estimated to be in the order of US$85.12.

Actual drill costs per metre for the season are estimated to be US$40.17 per metre. The remainder of the costs are allocated to other field activities.

The direct drill cost per metre includes mobilisation, rig moves, standby time, maintenance of two days per month, rig support transport (fuel, water and crew changes), full drilling and support labour, allocated food stuffs and lodging, spare parts, drill bits, on site sample preparation work, helicopter support and analytical results determined by Alex Stewart Laboratories.

An update says: "When compared to current contract drilling rates, actual drilling alone would have cost the Company US$1.65 million averaging US$83.40 per drilled metre.

"The purchase of the LF-90 Boart Longyear rig, which drilled 13,304 metres during the field season, for US$406,000 has resulted in substantial savings to the Company. Average saving per drilled metre are estimated to be in the region of US$43.23 per metre representing a total cost saving of over US$575,000 to the Company when compared to contract drilling rates. On this basis, the LF-90 Boart Longyear drill rig is considered to have more than recouped its purchase price during a single field season."

At 4:10pm:

[LON:AAL] Anglo American PLC share price was -1.25p at 1129.75p

[LON:AMC] Amur Minerals Corporation share price was -0.05p at 3.95p

[LON:BEM] Beowulf Mining PLC share price was 0p at 5.5p

[LON:BKY] Berkeley Energia Ltd share price was +0.25p at 47.25p

[LON:CEY] Centamin PLC share price was +2.4p at 160.2p

[LON:CHL] Churchill Mining PLC share price was +1.75p at 30.5p

[LON:CZA] Coal of Africa Ltd share price was +0.01p at 3.25p

[LON:EDL] Edenville Energy PLC share price was +0.03p at 0.62p

[LON:FDI] Firestone Diamonds PLC share price was -0.25p at 56.25p

[LON:FRES] Fresnillo PLC share price was +72p at 1712p

[LON:GEMD] Gem Diamonds Ltd share price was +0.88p at 116.88p

[LON:HOC] Hochschild Mining PLC share price was +2.15p at 268.65p

[LON:HZM] Horizonte Minerals PLC share price was +0.1p at 2.18p

[LON:KMR] Kenmare Resources PLC share price was +7.5p at 307.5p

[LON:VED] Vedanta Resources PLC share price was +23.5p at 737p

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