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Archipelago Resources, Aurum Mining, Balamara Resources, Bezant Resources, Continental Coal news briefs

Contributed by Fox-Davies Capital

Archipelago Resources PLC announced production results for the Toka Tindung Mine in North Sulawesi, Indonesia for the year ending 31 December 2012. Production owns 139,012 Au Eq oz at a cash cost of $635 per oz (net of silver credits), meeting both production and cash cost guidance set for the first full year of operations. For the three months ending 31 December 2012, Archipelago set a quarterly production record of 42,302 Au Eq oz. For the year to 31 December 2013, Archipelago expects to produce between 140,000 and 155,000 Au Eq oz at a cash cost of between $620 and $680 per Au oz.

Aurum Mining PLC announced further positive assay results from the second stage drilling programme at the Peralonso Permit in the Salamanca Province, which forms part of the Company's joint venture with Ormonde Mining plc. A total of eight holes were drilled over a total depth of 991 metres, to test for near surface extensions to the gold mineralisation identified in the first drilling programme of three holes, the results of which were announced in July 2012. Results have now been received for six of these eight holes, and the results do indeed indicate shallow depth extensions of the mineralised structures identified by the initial drilling programme. The results were near surface and the mineralisation showed good grades and width.

Balamara Resources Limited announced that it has signed separate Memorandums of Understanding to add two valuable strategic partners to its consortium for the world-class Togo Phosphate Project in West Africa. Balamara has signed an MOU with ASX-listed Minemakers Limited (ASX: MAK), an experienced phosphate company which owns 100% of the 1.5Bt Wonarah Phosphate Project in Australia and has recently sold its interest in the vast Sandpiper Phosphate Project in Namibia.
 
Under the terms of the MOU, Minemakers will assist Balamara in technical matters associated with the production of phosphate in Togo, with their experience and expertise strengthening the overall Balamara tender bid. In return for this assistance, Balamara has given Minemakers a right of first refusal for an equity position in the project should Balamara decide to introduce an equity partner at a later stage, on commercial terms and entirely at its discretion. In addition, Minemakers has a minority position in a US company, JDC Phosphate Inc, which is developing a new cost-effective and environmentally-friendly technology for the production of super phosphoric acid that could ultimately prove very valuable for the Togo Project. Under the terms of the MOU Balamara would consider this solution for production of SPA in Togo if awarded the tender. Minemakers has provided assistance to Balamara in the tender document and will continue to add value wherever possible throughout the remainder of the tender process and thereafter.

Separately, Balamara has signed an MOU with Deepak Fertilisers and Petrochemicals Corporation Limited, a listed Indian company with significant experience in the production and sale of fertilizer products, including phosphoric acid.

Bezant Resources PLC announced that further to its release of 29 November 2012, the Company is still awaiting final approvals from the provincial authorities in respect of the Environmental Impact Assessment ("EIA") for its wholly owned Eureka Project, in the province of Jujuy, north-west Argentina. EIA approval will ensure that the project's existing licences meet all the relevant criteria for exploration under local and federal law and enable Bezant to proceed with the next phase of its initial exploration work programme. The authorities' approvals process in the Jujuy Province is anticipated to resume shortly, following the recent summer recess, and a further update will be provided in due course.

Continental Coal has released a production update for the Ferreira Coal Mine during Dec'Q.

In this news:

- ROM coal production exceeded budgeted levels which is the first full quarter of operations in the recently acquired adjacent Prospecting Rights
- ROM 152,280t +40% QoQ
- Production ramped up over Q with Dec producing 57,550t the highest ever despite the Christmas break
- Mining and total Production costs/t down 30% and below budget
- Successfully completed initial pre-stripping for the new opencast mining
- operations and moved approx 1.3 million BCM of material
- On track for 600kt ROM and 420kt sales for FY'13
- Total Company export thermal coal sales of 0.6Mt and domestic thermal coal sales of 1.3Mt in FY'13.

FD Comment: Throughout what has been a difficult year for the South African coal industry, Continental Coal have been quietly going about their business starting production at Penumbra, with no strikes or mine closures and a hedge contract in place that cushions it against the current lower coal prices. The additional prospecting rights acquired in April and May 2012 have given Ferreira a bit more life, giving exports a boost whilst Penumbra ramps up production.