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Resource Clips

Posts tagged ‘Caledonia Mining Corp (CAL)’

Zimbabwean reserves

December 17th, 2012

New ounces boost New Dawn’s southern Africa gold mines

by Greg Klein

With five gold mines in operation and a sixth on care and maintenance, New Dawn Mining TSX:ND released updated resource and reserve numbers on December 17. The updates increase the measured and indicated categories by 44.1%, the company stated. Proven and probable reserves, included in the M&I, increased by 123%. Totals for the six mines now show:

  • measured resources of 22.36 million tonnes averaging 1.42 grams per tonne gold for 1.02 million gold ounces
  • indicated resources of 11 million tonnes averaging 3.59 g/t for 1.27 million ounces
  • inferred resources of 4.4 million tonnes averaging 4.29 g/t for 607,500 ounces.

Included in the measured and indicated resources are reserves showing:

  • proven reserves of 8.94 million tonnes averaging 1.2 g/t for 346,200 ounces
  • probable reserves of 1.21 million tonnes averaging 3.82 g/t for 148,200 ounces.
New ounces boost New Dawn’s southern Africa gold mines

New Dawn’s six Zimbabwean gold mines saw a 44.1% increase
in M&I resources, which includes a 123% jump in P&P reserves.

In October New Dawn announced a 41% increase in gold production for the year ending September 30, with 37,623 gold ounces and revenue of $61.94 million. New Dawn forecast another 41% production increase for fiscal 2013.

New Dawn’s wholly owned mines are the Turk and Angelus mine, Camperdown and Old Nic. Through the company’s 85% interest in its Falcon Gold Zimbabwe subsidiary, New Dawn owns 85% of the Dalny, Golden Quarry and Venice mines. Venice is on care and maintenance.

New Dawn intends to acquire the three mines’ remaining 15% prior to implementing a plan of indigenisation, a requirement that foreign miners allow a 51% takeover of their operations by Zimbabweans.

A few other Zimbabwe-based miners have indigenisation plans underway.

Under conditional agreements previously announced by Caledonia Mining TSX:CAL, a 16% interest in its Blanket gold mine would be sold to Zimbabwe’s National Indigenisation and Economic Empowerment Fund (NIEEF) for US$11.74 million. Another 15% would go to a Zimbabwean consortium for $11.01 million and 10% to a Blanket employees trust fund for $7.34 million. The company would also donate a 10% interest and $1 million to a local community trust.

On December 14, Impala Platinum and Aquarius Platinum announced a proposal to divest 51% of their 50/50 joint venture in the Mimosa platinum mine. Under this proposal, 10% of the mine would go to a local community trust, 10% to an ownership trust for Zimbabwean employees and 31% to the NIEEF. In return, Impala and Aquarius would get a total of US$550 million, based on an agreed fair market value of $1.08 billion. Mimosa Investments, the Impala/Aquarius JV, “will provide a vendor loan-funding mechanism to facilitate the transaction, which has a term of 10 years,” Aquarius stated.

New Dawn and the Zimbabwean government signed an MOU in 2011 but details are confidential. IR rep Richard Buzbuzian would only tell ResourceClips, “We’re still going through the process so we can’t provide clarity.” He added that New Dawn’s exploration projects show the company’s committed to Zimbabwean expansion. The geology features “the world’s third-largest greenstone belt” while the infrastructure is “excellent—Zimbabwe is one of the most highly developed countries in Africa,” he says.

New Dawn opened December 17 at $0.87 and closed on the day’s high of $0.89.

Quarterly records

October 9th, 2012

Gold producers with higher ounces for Q3

by Greg Klein

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With third quarter results rolling in, some miners are competing with each other to announce record-high gold ounces for their companies. Here’s a look at five companies that released Q3 production numbers on October 9.

Q3 marked a record 32,137 gold ounces for Avion Gold’s TSX:AVR Tabakoto open-pit and underground operation in Mali. That’s an increase from 28,640 ounces in Q2 and the third consecutive quarterly record. The company now expects to exceed its 2012 guidance of 95,000 to 102,000 ounces. Avion produced 91,200 ounces in 2011.

Gold producers with higher ounces for Q3

Liquid gold pours from Nevsun Resources’ Bisha Mine, which produced 98,000 ounces in Q3 2012.

Avion holds an 80% interest in Tabakoto. The company emphasizes that its southern Mali operation had uninterrupted production despite the sectarian violence centred in the country’s north following a March 22 military coup.

The company closed October 9 at $0.88, two cents above the day’s opening price. With a market cap of $390.71 million, Avion’s 52-week high and low are $2.31 and $0.41.

Another Q3 record-setter, St Andrew Goldfields TSX:SAS reported 25,742 gold ounces from three mines in Ontario’s Timmins Mining District. The Q2 total was 23,106 ounces. Q3’s breakdown comes to 13,147 ounces from the Holt underground mine, 5,408 ounces from the Holloway underground mine and 7,187 ounces from the Hislop open pit. All three share the Holt Mill.

Last month the company re-filed documents on Sedar to correct an overstatement of the inferred category for Holt and Holloway. The corrected estimate for Holt shows 1.09 million ounces measured and indicated, and 229,000 ounces inferred. The measured and indicated numbers include proven and probable reserves of 415,000 ounces. Holloway’s corrected estimate shows 110,000 ounces measured and indicated, and 452,000 inferred. M&I includes proven and probable reserves of 31,000 ounces. These figures correct an overstatement of 665,000 inferred ounces for Holt and 44,000 inferred ounces for Holloway.

Nevertheless the company maintains it’s on track to meet 2012 guidance totalling between 90,000 and 100,000 ounces for all three mines.

St Andrew opened October 9 at $0.47 and closed on $0.465. SAS has a market cap of $171.23 million, a 52-week high of $0.65 and a low of $0.305.

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