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London Mining, Nyota Minerals, Premier Gold Resources, Tertiary Minerals news briefs

Contributed by Fox-Davies Capital

London Mining announced it has reached a settlement agreement with Wits Basin Precious Minerals Inc. regarding previously disclosed litigation between the companies pertaining to their joint venture company, China Global Mining Resources (BVI) Limited (CGMR). Under the terms of the settlement arrangements, the parties have agreed to dismiss all claims against each other and end their joint venture relationship. Both companies have agreed to a mutual, unconditional, full and final release of any and all claims between them, no cash is payable by either party to the other and London Mining has agreed to transfer its interest in CGMR to Wits Basin. London Mining has previously written the asset down to zero value. The asset has been subject to various claims on it by local Chinese parties, and the termination of the joint venture with Wits Basin with no further obligations or liabilities allows London Mining to focus on its core assets, save on legal costs and bring an end to litigation on an asset that the Company believes has no value.

Nyota Minerals announced its Quarterly Report for the three months ending 31 December 2012. At the Tulu Kapi Gold project the publication of a Definitive Feasibility Study ('DFS') which confirmed the technical and economic feasibility of a 105,000oz per annum open pit operation. A maiden JORC-compliant Probable Ore Reserve for the proposed open pit of 16.9 Mt grading 1.82g/t for 986,000 ounces of contained gold was calculated using a cut-off grade of 0.3g/t gold. There are 14.59Mt grading 2.36g/t in the Indicated Resource and 10.31Mt grading 2.30g/t in the Inferred category. The DFS is based only on the open pittable component of the main Tulu Kapi ore body and doesn't include the higher grade "feeder zone" mineralisation, which is still open at depth, or the multiple proximal targets. Feeder Zone drilling below the proposed open pit mine, completed in the period and announced in January, intercepted high grades (up to 15.04 g/t Au over 9.45m) and provided an initial in-house Inferred resource of 1.1Mt at an average grade of 5.4 g/t for 188,000 ounces of gold.

Premier Gold Resources announced that a five year extension (to 31 December 2017) has been granted for its exploration licence 1684 AP (the "Cholokkaindy" licence) by the State Agency for Geology and Mineral Resources, the controlling mining authority in the Kyrgyz Republic. The application, made through the Company's licence-holding Kyrgyz subsidiary, Alji, follows extensive trenching and sampling work undertaken on the licence, the results of which support the Company's view that Cholokkaindy is a single mineralising system with the potential to form a sizeable and commercially viable gold deposit. The licence extension will enable Premier Gold to advance the project by undertaking a programme over the next two exploration seasons of infilling and extending the areas of known mineralisation and carrying out drilling on 22 target areas identified. Premier Gold is aiming to undertake up to 8,200m of drilling to average depths of 100m in order to build a three dimensional picture of the asset. The Company is planning to undertake up to a further 4,400m of trenching and to acquire samples from up to 3,000 sites. As a result of planned exploration and analysis activities, and subject to financing, the Board hopes to be able to establish a maiden gold resource in 2013.

Tertiary Minerals announced that independent consultant Wardell Armstrong International Ltd has reported its Tonnage-Grade Estimate for the Company's MB Fluorspar Project in Nevada, USA, and classified this as an Exploration Target under the 1JORC Code. The tonnage-grade range estimated at 85-105Mt grading 9-11% fluorspar (CaF2) at 8% CaF2 cut-off. The exploration target is part of a larger mineralised system estimated at 395-615Mt grading 5-7% fluorspar at 2% CaF2 cut-off and Wardell Armstrong recommends a staged drilling programme to upgrade Exploration Target to JORC compliant Mineral Resource. Wardell Armstrong has also evaluated the historic results from 108 drill holes completed by various companies between 1960 and 1984, details of which were reported in the Company's announcement on 29 November 2012. The estimate suggests potential for definition of at least 8Mt of contained fluorspar which is double the combined amount of fluorspar estimated for the Company's Minerals Resource inventory at its more advanced Scandinavian fluorspar projects, at Storuman (Sweden) and Lassedalen (Norway).

FD Comment:
This is very positive news for Tertiary Minerals since the mineralised system is very large and open at depth. There is considerable potential to increase the size of the deposit.