Mining Sector: Central Rand Gold down after it gives output estimates for rest of the year
Source - SMW
Shares in Central Rand Gold (LON:CRND) fell after it revealed that it expected output to average 1000 ounces per month for the rest of the year.
The company said the third quarter had been a period of mixed fortunes.
It said the company had made significant progress in improving its understanding of the operational uncertainties disclosed in its announcement on 29 March.
These uncertainties included rising acid mine drainage in the Central Basin; the occurrence of double voids within Central Rand Gold's current mining area; and the challenge of dilution when utilising the longhole stoping methodology.
In that announcement the company committed to providing its shareholders with a re-assessment of its prospects based on the resolution of the abovementioned uncertainties by the end of October.
This re-assessment was interrupted by a decision taken on 22 September by the Minister of Mineral Resources of South Africa to cancel the company's mining right.
This decision was suspended on 24 October when the minister consented to the temporary suspension of her decision to cancel the mining right.
The company immediately re-commenced mining operations and, by mid November, 10,650 tonnes from surface and 2,697 tonnes from underground mining were delivered to the metallurgical plant and stockpile.
West Africa-focused GoldStone (LON:GRL)- which earlier announced that it had conditionally raised £4.7m, before expenses, through a placing of 94,080,160 new ordinary shares at 5p apiece - was another faller.
The company intends to utilise the proceeds to explore further projects in Ghana, Gabon and Senegal - particularly the Homase/Akrokerri project, which contains a JORC compliant gold resource of 405,600 ounces.
CEO Jurie Wessels said: "We view the completion of the fundraising, which exceeded expectations in difficult market conditions, as a vote of confidence in the potential of our projects.
"The proceeds of the placing will be used to further unlock the potential value of our assets by an extensive drilling campaign at Sangola, continued exploration at our intriguing Gabonese prospects, continuing our work at Manso Amenfi and by executing our resource drilling endeavours at our flagship Homase/Akrokerri project."
The placing is conditional on shareholder approval at the annual general meeting on 5 December. Anglesey Mining (LON:AYM was also down.
Earlier, its 33%-owned associate Labrador Iron Mines Holdings has appointed Rod Cooper as president and chief operating officer with effect from 1 December.
Anglesey Mining CEO Bill Hooley, who is LIM's current president and COO, will become vice-chairman and director.
Cooper is currently vice-president and senior analyst-mining with Dundee Securities, a position that he has occupied for two years.
Prior to that he served for four years as vice-president operations and COO with Baffinland Iron Mines Corporation during its major development activities on the Mary River iron ore project on Baffin Island.
African Barrick Gold's (LON:ABG) listing on the the Dar es Salaam Stock Exchange has been approved.
Trading is expected to start on or around 7 December.
CEO Greg Hawkins said: "This represents an important step in establishing a framework to promote broader liquidity and ownership of our shares in Tanzania as part of our longer term commitment to the country."
Yamana Gold (LONJ:YAU) has started operations at its Mercedes mine.
It is located in Sonora, Mexico, and is Yamana's newest mine and represents the first of a number of new mines due to begin production in the next year.
With mine development and plant commissioning well advanced, and a sufficient stockpile having been created during the mine development period, a first gold pour occurred, which marks the formal start-up of production at the mine.
The company has been working on the commissioning of various components of the operation last month and is six months ahead of schedule.
To date, there have been over 11,000 metres of underground development completed, including the start of development of the Barrancas zone, which includes the higher grade Lagunas Norte vein, one of the newest discoveries at the mine, which was not included in the original mine plan and represents a significant opportunity to increase production.
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