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Mining Sector

Mining Roundup

15 December 2016 16:25

Production at Hochschild Mining's (LON:HOC) Pallancata mine in Peru has temporarily stopped due to a road blockade by members of a local community demanding the renegotiation of existing agreements for land easements.

Hochschild says that in keeping with the company's approach to active stakeholder engagement, discussions with relevant parties, which have been facilitated by the government, are ongoing. Despite the temporary stoppage at Pallancata, the company's production and cost guidance for 2016 are not affected.

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Condor (LON:CNR) has issued an update on scout drilling and regional exploration at the La India project in Nicaragua, which hosts a high grade mineral resource of 18.08 M tonnes at 4.0 g/t for 2.31 M oz gold.

Highlights:

- 142.4 g/t gold rock chip sample identified approximately 30 m along strike from a 53.9 g/t gold rock chip on the Los Limones prospect at the northern end of a 12.5 km mineralised corridor, 9 km north of the main La India open pit reserve.

- 168 sq km of 313 sq km soil survey completed. The aim is to identify feeder zones and new gold targets.

- Initial interpretation of soil results shows two major feeder zones, the La India and Andrea Corridors, and supports the concept of a major gold District.

- 1,123 m of 4,000 m scout drilling has been completed, assay results due in 2017.

Chief executive Mark Child said: "Condor's strategy of proving that La India project is part of a major gold district is yielding positive results. A 142.4 g/t gold rock sample, 30 m along strike from a 53.9 g/t gold rock chip, at the northern end of the 12.5 km-long Andrea mineralised corridor, and 6 km away from the nearest gold resource, is highly encouraging. A regional soil survey is about 50% completed. The purpose is to generate new gold targets and better understand the district-scale mineralisation. For example, to determine upflow zones of the fossil geothermal (epithermal) system and identify new gold targets.

"The initial interpretation of the soil survey, combined with helicopter borne geophysics, structural and regional mapping, is that there are two major feeder zones. The La India Corridor is better understood and hosts 90% of the Project's high grade mineral resource of 18.08 M tonnes at 4.0 g/t (2.31 M oz gold). The Andrea Corridor is less well understood and is the focus of the current 4,000 m scout drilling programme."

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Green Dragon Gas (LON:GDG) has reached agreement with GIC Private Limited to extend the maturity of the US$50 million convertible bond entered into in June 2014.

Under the agreement, the bond remains unsecured, has a revised coupon of 10% and a maturity date extended to 31 December 2020 (subject to a one-time redemption option exercisable by GIC on the current maturity). The bond is convertible into ordinary shares at a conversion price of US$2.83 per share representing a 25% premium over the 13 December 2016 closing price.

At final maturity of the bond, GIC has the right to require the company to purchase its conversion shares at a price based on the 90 day VWAP calculated as of 31 December 2020 and to be settled prior to 30 April 2021.

Green Dragon founder and chairman Randeep S. Grewal said: "We are very pleased with the continued support from GIC who has been a very supportive shareholder and bond holder since 2013. This extension allows the Company to focus on the expanding operations in China and concluding our agreements on the joint account audit with our partner China National Offshore Oil Corporation."

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Thor Mining (LON:THR) has announced a new drill campaign designed to expand the tungsten resource at the Company's wholly owned Pilot Mountain tungsten project in Nevada, USA.

Scheduled to commence early in February 2017, using the proceeds of the final Spring Hill settlement, the program of eight reverse circulation (RC) drill holes is designed to confirm and expand upon existing high grade drill intersections, which the directors hope will facilitate a significant increase in the existing Pilot Mountain resources, and also test for extensions of very high grade mineralisation, intersected in the Desert Scheelite resource in 2012.

Highlights:

- Two holes target extension of the 2012 high grade Desert Scheelite intersection from DSDD015 which comprised; 13.9 metres (m) @ 0.89% tungsten trioxide (WO3) from 198m, and 17.5m @1.8% copper and 2.2% zinc from 196m;

- Six holes to validate selected 1970's Union Carbide Corporation drill intersections from the Garnet deposit;

- Estimation of initial Garnet deposit resource.

- Potential extension of the Pilot Mountain resource of 6.79 million tonnes (Mt) @ 0.31% WO3.

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Alba (LON:ALBA) says it has been advised by the operator, Angus Energy, that work has now commenced at the Brockham oil field, in which Alba is earning a 5% interest. Brockham is located near Gatwick Airport and is only a few miles from Alba's other UK onshore oil and gas interests at Horse Hill.

Angus has advised that it has today received the final approvals required from the UK Government Oil and Gas Authority and Health and Safety Executive to commence work on the BR-X4Z well on UK onshore Production Licence PL 235.

At 4:25pm:

(LON:ALBA) Alba Mineral Resources PLC share price was +0.03p at 0.39p

(LON:BEM) Beowulf Mining PLC share price was 0p at 5.38p

(LON:BKY) Berkeley Energia Ltd share price was 0p at 46.75p

(LON:CEY) Centamin PLC share price was -15.4p at 115.1p

(LON:CNR) Condor Gold PLC share price was -1.5p at 55.5p

(LON:CZA) Coal of Africa Ltd share price was 0p at 3.33p

(LON:FDI) Firestone Diamonds PLC share price was 0p at 55.25p

(LON:FRES) Fresnillo PLC share price was -58.5p at 1121.5p

(LON:GDG) Green Dragon Gas Ltd share price was +1.63p at 181.5p

(LON:GEMD) Gem Diamonds Ltd share price was +0.5p at 107.25p

(LON:HOC) Hochschild Mining PLC share price was -17.65p at 225.35p

(LON:KMR) Kenmare Resources PLC share price was +0.13p at 250.13p

(LON:THR) Thor Mining PLC share price was +0.03p at 0.6p

(LON:VED) Vedanta Resources PLC share price was -18p at 915p

Story provided by StockMarketWire.com

Related Company: HOC

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