KEFI Minerals (LSE:KEFI) provides an update regarding its Tulu Kapi Gold Project in Ethiopia this morning. The company reports that progress at the project is moving at a significant pace with a newly recruited construction manager and senior site risk manager relocating to the site next week. They join around 100 locally recruited personnel hired for land clearing and the drilling rigs required to complete the geotechnical surveys. Kefi bought the mine from Nyota Minerals in 2014 and plans to pour first gold in the second half of 2020. The company estimates output from the mine will include open-pit gold production of around 140k ounces (oz) per annum over a 7-year period at an all-in sustain cost (AISC) of $800 per oz. Ore reserve estimates for the project is 15.4Mt at a grade of 2.1g/t gold, containing a total of 1.1Moz.

There are still a few remaining regulatory consents required from Ethiopian government agencies which are expected over the coming weeks ahead of triggering the project. These include the approvals of the final community resettlement plans, Project financing details and the updated works program. The final design of the foundations for the processing infrastructure and dam walls will follow the geotechnical surveys. Upon receipt of the remaining Government consents, project-equity investor ANS Mining Share Company (ANS) will release US$9m of equity funds into the company's project subsidiary Tulu Kapi Gold Mines Share Company (TKGM) for funding the planned activities in Q1 2019 – these include the first phase of community resettlement and ongoing project financing and planning costs.

An additional US$9m of funding is expected at the end of Q1 2019 to fund the planned Q2 2019 project development. This will allow TKGM to proceed with activities prior to the closing of the US$160m bond/lease of non-equity capital project financing. The remaining balance of ANS's planned US$30-38 million equity investment is expected to coincide with full project finance close as soon as the non-equity component is accessed.

Managing Director of KEFI, Mr Harry Anagnostaras-Adams, said: "It certainly is an interesting period in Ethiopia, with many changes taking place, including far-reaching transformation on many levels.  Our Tulu Kapi Gold Mine Project has remained a high priority for all stakeholders throughout this period and I am pleased with both the speed and level of progress being made. I would like to take this opportunity to thank all our partners and in particular the Ethiopian government at many levels for their continued support.  All the pieces of the Project are coming together and we look forward to providing further updates as matters progress."

Author: Stuart Langelaan

The Author does not hold any position in the stock(s) and/or financial instrument(s) mentioned in the piece.
The Author has not been paid to produce this piece by the company or companies mentioned above.
Catalyst Information Services Ltd, the owner of MiningMaven.com, has not been paid for the production of this piece by the company or companies mentioned above.
MiningMaven.com and Catalyst Information Services Ltd are not responsible for its content or accuracy and do not share the views of the author.  News and research are not recommendations to deal, and investments may fall in value so that you could lose some or all of your investment. Past performance is not an indicator of future performance

 

 

 

 

 

Mkango Resources Ltd (LSE:MKA) announced on Monday that it had intersected its highest grade rare earth mineralisation to date. The company is focused on assets in Malawi and released its final drill results from the Songwe Hill project. The final drilling phase comprised of 21 drill holes with 19 encountering significant zones of rare earths mineralisation grading above 1% total rare earth oxides (TREO).

Mkango holds interests in three exclusive prospecting licenses in Malawi, the Phalombe licence, Thambani licence and Chimimbe Hill licence. 

The Songwe Hill deposit is on the Phalombe licence which is 80% held my Mkango. This area features carbonatite-hosted rare earth mineralisation and was subject to previous exploration in the late 1980s. A Feasibility Study is currently underway and will be a main focus for 2019. Talaxis Limited will fully fund the study at Songwe with an investment of £12m for a 49% interest in the project. Talaxis has a further option to acquire a further 26% by arranging funding for the project which will leave Mkango retaining a 25% interest, free carried to production. The initial phases of the study includes the recently completed 10,900 metre drilling programme. Talaxis has already invested £5m so far and will invest a further £7m on the publication of an NI 43-101 technical report detailing the results at Songwe – the report is expected to be published in the first quarter of 2019.

Mkango completed a Pre-Feasibility Study for the Project in September 2014, which was subsequently updated in November 2015. The Pre-Feasibility Study is based on a conventional open pit operation using contract mining and a mine life of 18 years. 

William Dawes, Chief Executive Officer, commented: "This rounds off what has been a highly successful drill programme with another excellent set of results. Metallurgical optimisation and work relating to the Environmental, Social and Health Impact Assessment is also progressing well and we look forward to updating the market as we progress the feasibility study through 2019, starting with the resource update in the first quarter."

Author: Stuart Langelaan

The Author does not hold any position in the stock(s) and/or financial instrument(s) mentioned in the piece.
The Author has not been paid to produce this piece by the company or companies mentioned above.
Catalyst Information Services Ltd, the owner of MiningMaven.com, has not been paid for the production of this piece by the company or companies mentioned above.
MiningMaven.com and Catalyst Information Services Ltd are not responsible for its content or accuracy and do not share the views of the author.  News and research are not recommendations to deal, and investments may fall in value so that you could lose some or all of your investment. Past performance is not an indicator of future performance

Harvest Minerals (LSE: HMI), the Brazilian focused fertiliser producer, was up nearly 7% this morning after the company released an operational update. 

The company leads with news regarding its working relationship with Geociclo Biotecnologia S/A.  in July, Harvest announced that it had entered into a strategic alliance with Geociclo to enable the marketing and selling of the company’s KPfértil product.

As well as utilization of the sales team the deal also allowed access to of Geociclo’s MAPA accredited research and trial production laboratory and storage facilities. Harvest reports the alliance has been a success, however, Geociclo has sought judicial administration due to its existing liabilities and lack of available funding.

While at first this may sound problematic, the administration of Geociclo has actually created an opportunity for Harvest. The company has acquired the majority of the sales team, some support staff and Geociclo’s existing client database, allowing progress in developing new markets for KPfértil to continue. In addition, Harvest will no longer be required to pay commissions to Geolciclo.

KPfértil is produced at Harvests 100% owned Arapua Fertiliser Project in Brazil, a country that is currently trying to reduce its dependency on importing the potash it requires for fertiliser.

Harvest sells KPfértil to a number of distributors who deliver it to over 30 different farmers - with a further 12 currently testing it - ranging in size from small holders to some of the largest producers in Brazil.  

The Company now wants to double the size of the current storage facility to 20Kt and add additional silos to reduce the time taken to load each truck and expects this work to commence in the New Year.  The cost is expected to be less than US$300,000 and should be completed by Q2 2019 and will be funded via existing resources.  The company has been stockpiling around 4,000t of inventory in anticipation of the wet season. Harvest will focus its efforts on stepping up production during January and February, which tend to be quieter months, ahead of the ‘buying season’ starting in March.

The company also announces that KPfértil has been granted certification from the Brazilian Institute of Biodynamics as a fully organic and biodynamic product which the company expects will further enhance sales.

Harvest's Executive Chairman, Brian McMaster, commented, "During the year, we have been working hard to develop our brand and distribution channels for KPfértil.  Whilst contracts with distributors can allow us to leverage existing sales teams and their relationships in the market, direct sales through our own sales team are equally as important to building our brand.  We are therefore delighted to have acquired most of the existing sales, support and marketing team at Geociclo to support this strategy.

"We are pleased with the progress of the plant since it was commissioned. We are planning the expansion of our product storage capacity, which will be fully funded from available cash resources. We have recently slowed production due to early commencement of the rainy season, but the idiom 'every cloud' is even more true in our case as our customers are expecting a bumper harvest this year, which will mean they should be out in force to buy more KPfértil next year."

Author: Stuart Langelaan

The Author does not hold any position in the stock(s) and/or financial instrument(s) mentioned in the piece.
The Author has not been paid to produce this piece by the company or companies mentioned above.
Catalyst Information Services Ltd, the owner of MiningMaven.com, has not been paid for the production of this piece by the company or companies mentioned above.
MiningMaven.com and Catalyst Information Services Ltd are not responsible for its content or accuracy and do not share the views of the author.  News and research are not recommendations to deal, and investments may fall in value so that you could lose some or all of your investment. Past performance is not an indicator of future performance

Serabi Gold (LSE:SRB) was up 6% this morning after announcing an airborne survey has revealed significant new exploration targets at its Jardim Do Ouro tenement in the Tapajos region in Brazil. Mike Hodgson, CEO of Serabi said he was ‘delighted with the results’ which have identified a series of discrete ‘apparent conductivity’ anomalies. The company suggests these anomalies probably indicate sulphide bodies which it hopes will be gold-bearing.

Serabi has a number of other projects in the Tapajos region located in the state of Para including the Palito Mining Complex. The company started commercial production at the Palito orebody in 2014 and later at its satellite Sao Chico orebody in 2016 with total gold production from the mining complex approximately 40,000 ounces per year.

The company also announced today that the airborne survey has identified an interesting Electromagnetic anomaly trending north-south located to the south-east and east of the Sao Chico tenement. To date, this is untested ground with Serabi’s current ground geophysics and drill programmes yet to extend out that far. The anomaly extends for more than 10 kilometres and the company describes the new find as a ‘very exciting development’. 

Until earlier this year, Serabi’s exploration activities had been essentially suspended since 2011, with only ‘headframe exploration’ taking place around the Palito and Sao Chico orebodies.

Tenements located between Palito and Sao Chico have been largely untested until now although the areas have been the subject of considerable historical artisanal gold production. This new survey is the first real indication of the potential that exists within the Company’s wider exploration tenements and Hodgson states the survey complements the ground geophysics work that is ongoing around Sao Chico.

Mike Hodgson, CEO of Serabi, commented:

“What stands out most in the results of this airborne survey is the extremely pronounced magnetic high that runs east-west across the tenements (see Figure 1).  This is a regional feature and we see many of the electromagnetic anomalies lying on the flanks of this magnetic high. 

“A smaller but nonetheless very exciting anomaly is the ‘Cinderella shear’ which is located traversing the Sao Chico mining license area in a south-west to northeast trend.  The airborne survey results highlight an eight kilometre long magnetic and electromagnetic high which is very coincidental with the four-kilometre long chargeability ‘high’ identified by the ground geophysics IP survey, as reported in the Company’s news release of 20 September 2018. 

“The Company’s next steps will be to undertake soil geochemistry sampling over the areas of these anomalies. Programmes will be designed to further define the anomalous zones to provide better targeting for subsequent drilling which I hope we can undertake during 2019. 

“The results of the survey are better than we had hoped for. The scale of some of the features that have been identified are significantly larger than the signatures that we see for the existing Palito and Sao Chico orebodies. I am looking forward to the Company being able to start the initial follow-up work which will provide a clearer indication of the future potential”.

Author: Stuart Langelaan

The Author does not hold any position in the stock(s) and/or financial instrument(s) mentioned in the piece.
The Author has not been paid to produce this piece by the company or companies mentioned above.
Catalyst Information Services Ltd, the owner of MiningMaven.com, has not been paid for the production of this piece by the company or companies mentioned above.
MiningMaven.com and Catalyst Information Services Ltd are not responsible for its content or accuracy and do not share the views of the author.  News and research are not recommendations to deal, and investments may fall in value so that you could lose some or all of your investment. Past performance is not an indicator of future performance

Jangada Mines’ (LSE:JAN) flagship asset is the Pedra Branca PGM project in north-eastern Brazil.  Pedra Branca is the largest Platinum Group Metals (PGM) project in South America and currently has a JORC compliant resource of approximately 1.45 million ounces of PGM+Au. Today Jangada announced it has updated the process flowsheet for the project with Consulmet Metals (Pty) Ltd and the result is a projected 32% reduction in total capital expenditure. Jangada’s share price was up 5% on the news this morning.

As part of the initial work programme, Consulmet reviewed all metallurgical test work results from the Project and produced a preliminary flowsheet for the production of a PGM-rich nickel-copper sulphide concentrate and a chrome concentrate. Jangada states the review has resulted in important changes to the flowsheet which have simplified and improved the efficiency of the overall process. 

The company has continued to deliver positive news on progress at Pedra Branca as it works towards producing a bankable feasibility study (BFS). The current resources are at surface and the study will assume shallow open pit mining and conventional processing methods.

Jangada announced the discovery of significant nickel and copper sulphide anomalies just a month ago and has also commissioned an independent nickel and copper maiden JORC resource estimate which is expected to be published in Q4, 2018.

Brian McMaster, Chairman of Jangada, said:

"As we extrapolate the revised capex number into the already robust economic model, the financial merits of Pedra Branca will simply get stronger.  Importantly, the revised process flow sheet has demonstrated a simpler and more efficient process route.  We anticipate that this will reflect in reduced operating cost metrics that will feed into the ongoing BFS."

 Author: Stuart Langelaan 

The Author does not hold any position in the stock(s) and/or financial instrument(s) mentioned in the piece.
The Author has not been paid to produce this piece by the company or companies mentioned above.
Catalyst Information Services Ltd, the owner of MiningMaven.com, has not been paid for the production of this piece by the company or companies mentioned above.
MiningMaven.com and Catalyst Information Services Ltd are not responsible for its content or accuracy and do not share the views of the author.  News and research are not recommendations to deal, and investments may fall in value so that you could lose some or all of your investment. Past performance is not an indicator of future performance