- Edenville Energy [LON:EDL] was the sector's biggest riser - up by more than more than 51.6% in late trading - after it agreed a strategic partnership for the Rukwa coal to power project with Sinohydro Corporation of China.

Edenville and Sinohydro have signed a memorandum of understanding over the codevelopment of the project.

Currently, Sinohydro has 486 international projects under construction in more than 72 countries, with a total contract value of nearly US$43bn.

Sinohydro will complete a bankable feasibility study for the power plant project and Edenville will continue to have responsibility for the coal mine and fuel supply.

The MOU sets out the basic terms to build a strategic partnership between Edenville and Sinohydro, with the aim of then proceeding to a formal joint development or joint venture contract, where Sinohydro will have the role of engineering, procurement and construction) contractor for the project.

The MOU is valid for 18 months until 19 July 2018 and gives both companies exclusive rights to work with each other on the project during this time.

The tasks to complete pre-development will be shared by the two companies, depending on the relevant experience and specialisation of each of Edenville and Sinohydro.

* * *

Landore Resources [LON:LND] has reported outstanding results from a preliminary metallurgical assessment of the BAM East gold prospect mineralisation on its Junior Lake Property, Ontario, Canada.

It said drill core material, in the form of two composites of 28 samples weighing a total of 67 kilos, was submitted to ALS Metallurgy, Kamloops of British Columbia for gravity concentration and cyanidation bottle roll leach testing on the gravity tails.


- Combined gold recovery by gravity concentration followed by cyanidation leach extraction of the gravity tail averaged about 98 percent for both composites tested.

- Gravity Concentration: Feed gold recovery to the pan concentrate ranged between 58 and 59% for Composite 1 and Composite 2. Between 0.02 and 0.03% of the feed mass was recovered to the pan concentrates grading between 3,687 and 6,977 grams/tonne gold.

- Gold leach kinetics recorded for all tests at a nominal primary grind sizing of 75�m K80 were rapid, with close to peak gold extraction measured in the first sampling interval at 6 hours.

Chief executive Bill Humphries said: "These outstanding results, showing 98% recovery of gold using a simple combined gravity/leaching process, further supports our expectations that the exciting BAM East Gold deposit has the strong potential of low capex/opex costs amongst the lowest quartile of gold mining producers."

* * *

Hochschild Mining [LON:HOC] is set to resume operations at its Pallancata mine in Peru after resolving a dispute with the local community.

Operations were stopped last month due to a road blockade by community members.

Hochschild said the dispute had now been resolved and mining would resume on 25 January.

The company confirmed that, despite the stoppage, Pallancata's 2017 production forecast of 6m silver equivalent ounces and associated all-in sustaining cost guidance were not affected.

* * *

The Kibali gold mine in the Democratic Republic of Congo has continued its performance improvement in the second half of the year after a tough first half, operator and part-owner Randgold Resources' [LON:RRS] chief executive Mark Bristow told a briefing for local media in Kinshasa.

He said that said metallurgical process enhancements had improved the recovery rate, the new Kombokolo and Rhino satellite pits had added flexibility and throughput for the year was above nameplate.

But he said grade would remain a challenge until the underground mine was fully commissioned later in 2017, as previously guided.

* * *

Tanzania-focused Kibo Mining [LON:KIBO] has completed the integrated bankable feasibility study for the Mbeya coal to power project with the delivery of the integrated financial model.

The IBFS - which comprises an integration of the definitive mining feasibility study, the definitive power feasibility study, the integrated financial model for the MCPP and all other relevant technical studies, inclusive of the financial outcomes from the power EPC agreement - concluded that the project is financially, technically and operationally very robust.

The model shows that the total capital requirement for the integrated project is reduced 21.1% from the original integrated prefeasibility study figure and indicative MCPP total revenue over an assumed 25-year life of project of approximately US$7.5-$8.5bn.

* * *

ZincOx Resources [LON:ZOX] has entered into a Joint Venture Agreement (JVA) with Korea Zinc Company Ltd (KZC) for the joint development of a recycling plant in Vietnam.

Under the JVA, KZC would fund 100% of a Definitive Development Study (DDS) in sufficient detail to enable the raising of project finance for the construction of the project.

The DDS was expected to cost about $2.5m.

KZC would own 51% of a special purpose company which has been set up to develop the recycling plant, with the remaining 49% held by ZincOx.

In the event the DDS costed more than $3m, the interest of ZincOx in the joint venture shall be diluted proportionately accordingly to the additional funds that KZC has contributed, however ZincOx would be able to buy back its interest to 49% on the same terms in the following six months.

The recycling plant will be based on the Rotary Hearth Furnace (RHF) technology developed by ZincOx in Korea.

The Korean Recycling Plant, now owned by KZC, is one of the world's largest facilities recycling the waste dust (EAFD) generated by recycling galvanised steel scrap and has a design capacity of 200,000 tonnes per annum.

The Vietnamese recycling plant is planned to treat up to 100,000 tpa of EAFD and, in addition, to upgrade both the iron and zinc intermediate products of the RHF to final products.

* * *

Red Rock Resources [LON:RRR] notes that Jupiter Mines, an Australian unlisted public company in which it owns 27.3m shares, has given more details of its planned $55m distribution to shareholders.

Red Rock also updated on the sale of certain assets, including subsidiary American Gold Mines Ltd.

"The distribution, by way of an equal access share buy-back, is being accepted by directors and we expect it to be accepted by the other significant shareholders," said Red Rock's chairman, Andrew Bell.

"Our percentage shareholding will then remain unchanged."

Bell noted that, at the buy-back price, Red Rock's holding was valued at £8.83m, compared with the carrying value in its books of £1.5m.

"The expectation of a further increase in manganese sales, and the possibility of further distributions, sale of the asset or a relisting later in the year, mean that we expect value to continue to increase," he added.

Referring to the sale of certain assets, in a separate statement Red Rock said it intended to pursue its rights in relation to the sale of its gold assets at El Limon in Colombia.

"The sale agreement signed by Colombia Milling Ltd (CML) was intentionally structured in such a way as to allow the new owners to defer a significant amount of the consideration in the form of a Promissory Note and net smelter return royalties, while they immediately invested these savings in the underground mine and in improved gold production capabilities at the plant.

"Were CML to succeed in its stated intention to put them into a public vehicle, Red Rock was to share the benefit from this early liquidity event through a right to convert the Note into shares into the listed entity."

Red Rock said that CML had completed the plant upgrades taking advantage of the deferred consideration, and Para Resources Inc, a listed entity in Canada and investor in CML, has acquired the entirety of the assets sold by Red Rock.

It added that CML and PRI were now refusing to adhere to the clause that would allow conversion of the Note into listed shares while simultaneously interpreting the royalty in a way that would stretch the timeline of payments.

"This is unacceptable to Red Rock and the Company is now pursuing arbitration on these issues through the ICC in Paris to protect its rights and to obtain for our shareholders the full value of the agreements."

* * *

Arian Silver [LON:AGQ] has completed preliminary exploration work on its wholly-owned La Africana project which is located within the Panfilo Natera area of central Zacatecas.

La Africana is a past-producing high grade silver mine located in close proximity to the company's San Celso project, and benefits from excellent infrastructure, just 3 kilometres from the Zacatecas-San Luis Potosi highway.

Chief executive Jim Williams said: "The results from this latest underground sampling programme demonstrate consistently high silver grades at La Africana ranging from around 200g/t Ag up to approximately 1200g/t Ag, and include encouraging lead and zinc grades.

"The systematic exploration of our concessions within the State of Zacatecas continues on schedule and some excellent exploration targets are emerging. Further exploration of these targets will involve geophysical methods as well as preliminary drilling programmes."

* * *

Serabi Gold [LON:SRB] reports record annual production of almost 40,000 ounces (oz) of gold, beating guidance, and has provided an operational update for Q4 2016 on its Palito and Sao Chico gold operations in northern Brazil.

"We are delighted to have exceeded our production guidance with a total of 39,390 ounces of gold being produced for the year which also represents the highest annual gold production from Serabi's operations in the Tapajos region," said CEO Mike Hodgson in a statement.

He added that the final three months of the year saw another steady quarter of production of about 9400 oz of gold, to compliment the gold production of the previous three quarters and demonstrating the continued dependable performance of the business.

"The mines have performed well," Hodgson said.


At Palito the operation continued to perform steadily, although extracted mine grade during the quarter was lower than planned as a result of ore being 'cemented' in two stopes.

"This ore is not lost, and is being slowly recovered, but not as fast as we had budgeted," Hodgson said.

The production shortfall was partially compensated by more development ore, albeit with a lower gold grade.

This resulted in a Palito head grade for the quarter of 7.4 g/t of gold, compared to 9.5 g/t of gold for the previous quarter.

"However, the benefit of this ore development is that the mine is now generating ore from four sectors, Senna, Chico da Santa, G3 and Pipocas with Senna playing an ever increasing role in our production plan.

"Production from stoping has not commenced there but, in 2017, we will see a significant level of ore being produced from stoping at Senna."


"At Sao Chico, ore development and production continued in line with our plans and grades were excellent, returning over 14 g/t for the quarter," Hodgson said.

"The main ramp has now reached the 70mRL with the Main Vein intersected. Development continues on the 100mRL, 86mRL and the new 70mRL. Stoping is focused on the final blocks on the 186mRL, 156mRL and 140mRL.

"As reported last quarter, the plant saw the introduction of the third mill during Q3. This was primarily acquired to establish much needed contingency in the plant and to reduce the impact of unforeseen mechanical problems, essential in a moderately remote operation such as ours.

"In October and again in December the importance of this contingency planning was demonstrated. In both months we suffered short-term breakdowns, and the ability to maintain throughputs rates by having a third mill was therefore invaluable.

"An additional short term benefit of three mills operating has been the increased throughput capacity, allowing us to consume the low grade surface stock that had built up over the past three years."

* * *

Petra Diamonds Ltd [LON:PDL] said its H1 production rose 24% to 2,015,087 carats due to increased contribution from undiluted ROM ore leading to improved ROM grades, and additional tailings production from Kimberley Ekapa Mining.

It remained on track to deliver FY production of about 4.4-4.6 million carats (Mcts). The company said H1 revenue rose 48% to $228.5m due to increased sales volumes.

Diamonds sold rose 47% for the period to 1,910,113 carats.

"In line with past years, H2 is expected to be a stronger sales period, due to the timing of tenders being weighted towards the latter half of Petra's financial year," the company added in its H1 trading update.

CEO Johan Dippenaar commented that due to the increased contribution in H1 from undiluted ore, Petra had delivered strong operational results, reporting significant increases in production and revenue.

"We continue to advance our expansion programmes and, from this point onwards, will see a meaningful reduction in Capex as the capital projects, which were first set out in 2009, come to fruition," said Dippenaar.

"Safety remains our highest priority at Petra and we are placing renewed focus on this vital area and relentlessly striving for a zero harm workplace."

At 4:02pm:

[LON:BEM] Beowulf Mining PLC share price was +1.51p at 9.63p

[LON:BKY] Berkeley Energia Ltd share price was 0p at 60p

[LON:CEY] Centamin PLC share price was +1.65p at 151.15p

[LON:CZA] Coal of Africa Ltd share price was +0.01p at 3.5p

[LON:EDL] Edenville Energy PLC share price was +0.36p at 1.13p

[LON:FDI] Firestone Diamonds PLC share price was -2.5p at 46p

[LON:FRES] Fresnillo PLC share price was +45.5p at 1447.5p

[LON:GEMD] Gem Diamonds Ltd share price was +2.75p at 119p

[LON:HOC] Hochschild Mining PLC share price was +27.4p at 253.2p

[LON:KIBO] Kibo Mining share price was 0p at 6p

[LON:KMR] Kenmare Resources PLC share price was -6.5p at 337.5p

[LON:LND] Landore Resources Ltd share price was +0.33p at 3.65p

[LON:VED] Vedanta Resources PLC share price was +11.5p at 1006.5p

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