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Baobab Resources, Condor Gold PLC, Gemfields, Goldplat PLC, Metminco, Sirius Minerals, Weatherly International news briefs

Contributed by Fox-Davies Capital

Baobab Resources has released the Pyro - Metallurgical Testwork Results for its 85% owned Tete VTM project in Mozambique.

In this news:
- Company carried out bench-scale pyro-metallurgical test work at the Commonwealth Scientific and Industrial Research Organisation (CSIRO) laboratories in Australia
- Used 6.3 and -3.35mm dry cobbed concentrates derived from the Tenge resource block and 50kg samples of a middling thermal coal by-product that is not economic for export from two local commercial operations as a reductant
- Produced a Pig Iron with 97.0% Fe, 1.76% C, 0.2% S, 0.161% P, 0.002%Ti, 0.102V, 0.037%Cu, 0.209% Ni, 0.045% Co and 0.175%Cr suitable to produce steel in an Electric Arc Furnace
- Tests were unfluxed so Sulphur and Phosphorus assays were higher than would be actually produced and much of the vanadium would also be removed.

FD Comment:
These are very positive test results for Baobab as they indicate that the Company can make use of the abundant thermal coal middlings in the region as a reductant that the producers are looking to find a use for allowing the Company to increase the value of its product for little additional cost.

Condor Gold PLC announced the results of a further 31 drill holes for 3,931m of the current phase of resource infill drilling at the La India Vein Set and the initial drill testing and further trenching of wallrock gold mineralisation on the America Vein Set. Drilling results continue to confirm continuity of gold mineralisation and grade of the current geological model. The best new drill intercept was from la India of 6.80m at 13.99g/t gold. A drill intercept of 41.26m at 1.41g/t gold near surface demonstrates coalescence of La India and California veins. 28 drill holes for 2663.5m were completed on the America Vein Set to test for remnant wallrock gold.

The wallrock of the historic America mine intercepts up to 4.65m (4.4m true width) at 6.11g/t gold and significant zones of quartz brecciation were intercepted at the intersection of the America-Escondido-Constancia veins, assay results pending. Trench testing of the Escondido Vein on the America Vein Set returned best intercept of 6.8m at 3.59g/t gold.

Gemfields has released its interim results to 31 Dec 2012.

In this news:
- Revenues from rough (a single auction held in November 2012) and finished emerald sales of US$27,688,682 (2011: US$45,732,943)
- EBITDA for the period of US$19,539,633 (2011: US$32,243,445)
- Net profit after tax for the period US$4,740,518 (2011: US$22,002,078)
- Cash in hand at 31 December 2012 of US$27,887,811 (2011: US$32,382,069)
- Estimated production cost of emerald and beryl inventory at hand of US$37,451,292 (2011:US$22,112,885)
- Average production cost of US$0.57 per carat of emerald and beryl (2011: US$0.83 per carat)
- 14.5 million carats of emerald and beryl produced (2011: 8.8 million carats produced)
- Completed the acquisition for 100% of the globally recognised Fabergé jewellery brand
- Mila Kunis announced as Gemfields' global brand ambassador and the face of its rare coloured gemstones campaign
- Two auctions of rough emerald and beryl and a ruby auction scheduled for the second half ending 30 June 2013
- The next emerald auction will be held in Jaipur in March 2013
- Revenues lower than comparative period FY11 due to less auctions occurring. Three auctions scheduled before FY12 year end.

FD Comment:
Revenues were down sharply due to the timing of auctions with only 1 in 1H'12. Production was up due to increased grades at Kagem from 205cts/t (FY'11) to 271 cts/t 1H'12 rather than an increase in ore production which was flat at 54Mt as the focus has been on waste stripping to open new areas with 4.8Mt removed compared to 8.7Mt for entire FY'11. The key for Gemfields is going to be marketing its products. The acquisition of Fabergé and signing of Mila Kunis should help, but with only one auction in November it is difficult to assess how robust the market is currently. The auction later this month in Jaipur will be the acid test.

Goldplat PLC announced its interim results for the six months ended 31 December 2012. A strong operational performance driven by the market leading gold recovery operations in South Africa and Ghana resulted in gross profit increasing 13% to £2.97M (H1 2012: £2.62M). Profit before tax decreased 34% to £1.56M (H1 2012: £2.37M). Gold production increased 16% to 17,918oz (H1 2012: 15,404oz) but at the Kilimapesa mine in Kenya, the planned output has been reduced to 5,000oz pa resulting in an impairment charge of £2.38M. The Company has a healthy cash position of £1.95M and is initiating a share buy-back scheme.

Metminco Ltd announced the results of the Mining Scoping Study on its 100% owned Los Calatos copper project located in the prolific copper-molybdenum mining district of southern Peru some 32km to the north-northwest of the town of Moquegua. The Study, undertaken by an independent, internationally experienced mining consulting firm, highlights the following, an open pit operation followed by an underground block-cave giving a mine life of 31 years. Total material treated over LoM of 656Mt at 0.45% Cu and 0.026% Mo. The initial open pit will be a 7 year operation with a low 2.2:1 strip ratio. Cash costs net of credits are forecast to be $1.09/lb in the lowest quartile and pre-production capex, including the initial underground development is estimated to be US$1.5B. The project is now suitably advanced to consider alternatives for project financing and development, including the potential introduction of a strategic partner.

Sirius Minerals has released an update on the planning procedure for its planned pipeline from the minesite to a planned Teeside processing plant and port.

In this news:
- As part of the formal pre-application process for the development consent order for the Pipeline, drafts of relevant reports and supporting statements have been provided to the Planning Inspectorate ("PINS")
- This is a standard process ahead of a full submission to ensure that the procedural requirements are understood by the applicants. PINS will review the documentation and provide feedback to the Company in due course. The full pipeline application is expected to be submitted within the next two months.

FD Comment:
Once constructed the pipeline should significantly reduce the environmental impact and reduce operating costs of the York Potash project. The current plan is for two 600-700mm lined and buried (1.2m below surface) pipelines to carry up to 20Mtpa of Polyhalite ore as suspended particles in water ~44.5km's to Teesside - the preferred processing and port site. This pre-application is to give the planning inspectorate more time to understand the process before having to make a decision on what is a critical part of the project.

Weatherly International PLC announced its unaudited interim results for the six months ended 31 December 2012. The Company reported a net profit of US$2.7M for the period and as at 31 December 2012 had cash at the bank of US$3.5M. The Bankable Feasibility Study for the Tschudi Project completed and will add 17,000 tonnes of copper per annum. The US$88M project financing term sheet signed with RK Capital covering 100% funding of the Tschudi project. The Tschudi financing and legal due diligence is nearing completion.