Aurum Mining (LON:AUR) has appointed Michael (Mo) Joseph Stevens as chief executive with immediate effect.
Stevens, aged 54, has held a number of senior leadership roles with global and national businesses operating in security, cyber, aerospace, defence and high technology sectors.
This includes over 25 years of experience with large global portfolio businesses, where he has held Managing Director and CEO-level positions. Most recently, Stevens was Head of International Market Development for Airbus Defence & Space, a role he assumed after the integration of Cassidian UK, where he was CEO. As previously stated, and in response to the on-going challenging market conditions in the Natural Resources sector, the Board continues to pursue a process of transformation in order to maximise potential returns to shareholders.
As CEO, Stevens will be responsible for drawing on his diverse commercial skills, including business growth, portfolio management and operations, to help the Company identify attractive opportunities and achieve a successful change in strategic direction.
* * *
Alba Mineral Resources (LON:ALBA) has successfully completed an extensive airborne electromagnetic (EM) survey at the Amitsoq graphite project in southern Greenland, targeting graphite zones and extensions of the former graphite mine at Amitsoq, nickel and platinum group elements to the north of the former mine as well as potential gold targets on the mainland to the south of Amitsoq island.
The contractor has now commenced the processing of the data acquired in the survey. Further developments will be announced as and when they are available.
Maps and photographs from the survey will be available on the Alba website in the next few days.
* * *
Horizonte Minerals (LON:HZM) has announced positive economic results from its new pre-feasibility study on its 100%-owned Araguaia project in Brazil.
This includes both the Araguaia nickel project area ('HZMA') and the Glencore Araguaia project area.
- Robust economics based on a 28 year life of mine ('LOM') producing ~14,500 tonnes per annum ('TPA') nickel in ferronickel from a single line Rotary Kiln Electric Furnace Plant ('RKEF')
- Post tax NPV8 of US$581 million at a nickel price of US$14,000/t and an NPV8 of US$328 million at US$12,000/t Ni
- Post tax IRR of 26.4% at US$14,000/t and 19.3% at US$12,000/t Ni
- Project is expected to generate US$1.3 billion in free cash flow over LOM at US$12,000/t Ni
- High grade ore with average nickel grade of 1.96% for the first 10 years of production
- Project on the lower range of the global cost curve with C1 cash costs of US$3.15/Ib Ni (US$6,948/t Ni)
- 43-101 Proven and Probable Mineral Reserve Estimate of 24.6 Mt grading 1.77% Ni
Chief executive Jeremy Martin said: "We are pleased with the positive results from the PFS delivering a post-tax NPV of U$328M and IRR of 19.3% based on a long term nickel price of U$12,000/t.
"If we use the bank's consensus mid-term nickel price of US$14,000/t, the NPV increases to US$581M with an IRR of 26.4% showing the significant gearing that is available with any future increase in nickel prices. Importantly the PFS demonstrates that the Project is cash flow positive at today's nickel prices which puts Araguaia within a limited group of global assets that are considered viable in the current low price nickel environment.
"Our low-cost acquisition of the adjacent nickel project from Glencore was a game-changer for Horizonte. The value is demonstrated in this new PFS which now has an overall grade for the first 10 years of mining averaging 1.96% nickel and the LOM grade over 28 years averaging 1.77% nickel which places the Project firmly in the upper quartile of the global grade curve for this type of deposit.
"The Project is expected to generate US$1.3 billion in free cash flow over the LOM with the planned operation producing around 14,500 tonnes per year of nickel in ferronickel at a grade of 30% utilising the proven RKEF process.
"The next major milestone in the development of Araguaia is the Feasibility Study which we anticipate starting in 2017. In parallel with this we will be looking at the development funding options available as well as offtake partners. We believe that the timeline for the development of Araguaia is well aligned with the market's expectation of an increase in nickel price over the mid-term.
"Future demand looks robust with predicted growth running between 2% and 4% this year and demand is anticipated to outpace supply, ensuring that Araguaia is a compelling project to generate value for shareholders.
"This, combined with strong economic fundamentals, confirms that Araguaia is well positioned to be one of the next major nickel projects to be developed and we look forward to providing updates as we advance the Project through Feasibility."
* * *
Shanta Gold (LON:SHG) announces high-grade intercepts at its Singida project in northern central Tanzania.
Singida is an advanced stage project with a mining licence in place and is expected to become an important contributor to Shanta's growth.
"With New Luika's expanding resource generating strong free cash flow, we have refocused on Shanta's original flagship project at Singida," said CEO Toby Bradbury in a statement.
"The recent Singida drill results increase our confidence that, subject to an updated Feasibility Study, Shanta will be able to significantly increase its production of low cost ounces at an extremely competitive capital cost.
"The results from this latest drilling campaign further reinforce the value that our exploration emphasis is creating and the exciting prospectivity of Shanta's portfolio both at Singida and in the Lupa Goldfield."
- 1m @ 7.72g/t from 68m-69m in SC653
- 3m @ 9.94g/t from 59m-62m in SC657
- 1m @ 12.45g/t from 65m-66m in SC662
- 6m @ 3.81g/t from 52m-58m in SC665
- 3m @ 5.66g/t from 105m-108m in SC668
- 5m @ 6.91g/t from 69m-74m in SC676
- 3m @ 4.44g/t from 100m-103m in SC677
- 12m @ 9.24g/t from 130m-142m in SC679
* * *
Anglo American (LON:AAL) has completed the sale of its niobium and phosphates businesses in Brazil to China Molybdenum Co. Ltd, following the agreement announced on 28 April.
The economic benefits of the businesses transfer to CMOC as of the end of 30 September.
Anglo American has received cash proceeds of approximately $1.7 billion, constituting the agreed consideration of $1.5 billion and approximately $187 million of working capital and other adjustments, subject to certain post-closing adjustments.
Net proceeds, after taxes payable and transaction costs, of $1.5 billion from the sale will be used to reduce debt.
(LON:AAL) Anglo American PLC share price was +24.65p at 992.25p
(LON:ALBA) Alba Mineral Resources PLC share price was +0.03p at 0.28p
(LON:AUR) Aurum Mining PLC share price was +0.38p at 2.23p
(LON:BEM) Beowulf Mining PLC share price was +0.5p at 5.13p
(LON:BKY) Berkeley Energia Ltd share price was +7.5p at 54.5p
(LON:CEY) Centamin PLC share price was +3.25p at 151.65p
(LON:CHL) Churchill Mining PLC share price was 0p at 30.38p
(LON:CZA) Coal of Africa Ltd share price was +0.01p at 2.85p
(LON:FDI) Firestone Diamonds PLC share price was -3.25p at 49p
(LON:FRES) Fresnillo PLC share price was +11.5p at 1825.5p
(LON:GEMD) Gem Diamonds Ltd share price was +0.88p at 124.38p
(LON:HOC) Hochschild Mining PLC share price was +2.9p at 292.4p
(LON:HZM) Horizonte Minerals PLC share price was +0.15p at 2.23p
(LON:KMR) Kenmare Resources PLC share price was -0.25p at 320p
(LON:SHG) Shanta Gold Ltd share price was +0.25p at 11.5p
(LON:VED) Vedanta Resources PLC share price was +20.5p at 603.5p