In the first 2011 issue of International Mining Project News, Russia’s OJSC Uralkali and OJSC Silvinit have proposed to combine forces to create what would be one of the largest potash companies in the world. The combination would lead to significant synergies which would see the group enjoying one of the lowest cost structures in the potash industry and, with 84% of the company’s combined 1H 2010 sales being exported to fast developing economies, will allow the new group to take full advantage of the expected growth in potash demand. Kangaroo Resources (KRL) is also looking forward to a productive 2011. Not only has the company secured a $23.8 million share placement, in part to drive a ramp up of production at its newly acquired Mamahak coking coal project, but it has signed a deal to buy almost all of the world class Pakar thermal coal project for $277 million in Kangaroo shares. If the transaction meets the usual approvals it will see PT Bayan Resources taking a 57% stake in KRL which will, in turn, become one of Indonesia’s largest coal producers.
After the successes of 2010 Atlas Iron and Giralia Resources are looking to merge with Atlas making a takeover bid for all of Giralia’s shares. The two companies have iron ore deposits that either join, or are very close to, each other in the Pilbara region and the takeover will, potentially, allow an increased production rate of 22 Mt/y by 2015 as well as increased cost efficiencies and a DSO resource base of over 600 Mt. Another Australian company, Energia Minerals, has received assay results from the Carley Bore deposit that could herald an early 2011 boost to its Nyang project’s 12.2 Mt JORC resource. Although the company is eagerly awaiting more assay news these initial results indicate that the Carley Bore deposit will be a significant ISR uranium project. The company believes that the existing mineral resource and exploration target will now undergo a happy revision upwards and plan to begin a scoping study soon.
Territory Resources has begun commissioning of its $4.3 million beneficiation plant at the Frances Creek iron ore mine. The company already has about 800, 000 t of 51% Fe scalp ore stockpiled close to the Australian plant which, once it has reached steady state operation, will treat 80,000 t of scalp ore to produce roughly 44,000 t/m of high grade fines ore.
Herencia Resources’ JV company, Compania Mineria Paguanta (CMP), has allowed Major Drilling’s proposal to undertake a 15,000 m drilling program at CMP’s polymetallic project in Chile. The program, due to start by the end of February 2011, will be aimed at two of the Paguanta project’s prospects, as well as the Patricia mineral resource, with the hope of increasing a five and a half year mine life at a production rate of 500,000 t/y. The company has also planned a feasibility study at Patricia to begin in 1Q 2011 and currently plans to have Paguanta in production by 4Q 2012.
In Egypt, Centamin has announced the results of a scoping study which has revealed substantially improved project economics and the potential for Centamin to expand its Sukari gold project to process roughly 10 Mt/y of ore – which would be twice the amount of the original base case scenario. The company has already tendered an EPCM contract for the expansion and expects to be fully committed by 1H 2011
As part of a proposed move into the resources sector Medical Corporation Australasia has announced the conditional purchase of Amphion International along with a share placement of up to $2.8 million that will leave MOD with around $12 million to invest in the resources sector. Cortona Resources has revealed early drilling results, only 500 m from its Darques Reef gold project, which discovered very high grades of silver as well as more gold mineralisation at the nearby Chinaman prospect. Cortona has already catered for silver in its process design but will now begin drilling a range of targets “very early next year” to further investigate the Au-Ag mineralisation around Darques Reef.
Centaurus Metals reports an updated resource of 10 Mt, at 36.6% Fe, at its Itambé project in Brazil. Although this is a lower tonnage than previously thought (15.5 Mt at 37.2%) the company has succeeded in bringing almost half of its resource into the Indicated category for the first time – and much of this ore will be susceptible to low cost mining and beneficiation procedures.
All this and much, much more in International Mining’s Project News….
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