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Minera IRL, Black Mountain Resources, Bullabulling Gold, Jubilee Platinum news briefs

Contributed by Fox-Davies Capital

Minera IRL announced the approval of the Environmental Impact Assessment (EIA) and the granting of the Development Permit for the Don Nicolas Gold Project by the Santa Cruz Argentinan provincial authorities. This is a significant step towards bringing the mine on-stream. The EIA was based upon the Don Nicolas Feasibility Study, completed in February 2012.  The feasibility study demonstrated a robust project based on the open pit mining of high grade epithermal gold deposits in the La Paloma and Martinetas vein fields.  The conventional crush, grind and carbon-in-leach (CIL) treatment plant at Martinetas will have a processing rate of 350,000 tonnes per annum, providing an initial mine life of 3.6 years.  Average annual steady-state gold and silver production will be 52,400 ounces and 56,000 ounces respectively.  Capital cost is projected at US$56M and the cash operating cost is estimated at US$528 per ounce, after silver credits.  Post tax internal rate of return using a base case gold price of US$1,250 per ounce is 22.8% rising to 38.1% if a gold price of US$1,500 per ounce is assumed.  Payback period is projected to be 2 years or less.

Black Mountain Resources Ltd announced that further drill results confirm high grade silver zones and identifies new mineralisation structure at the Conjecture Silver Project in Idaho. The Company recently completed a 16 hole diamond core drill program (1,800m) at the previously producing mine. The drilling was undertaken from 3 drill pad locations, each location drilled into the hanging wall through the vein structure into the footwall material. The vein structures encountered showed mineralisation and the assays results returned have confirmed high concentrations of silver with gold that correspond with historical values of mineralisation and correlate to mapping and underground structures seen in the historical Conjecture workings. The decision was made to extend the program from 10 holes to 16 due to positive results from drilling undertaken at the Rainbow Pad, where shallow mineralisation was intercepted in an area previously untested.

Bullabulling Gold Ltd announced that the cost of establishing the operation has been estimated at between $297M and $333M, comparing favourably with the 2011 scoping study forecast of $366M (note all references to currency in this announcement are Australian Dollars). The plant is estimated to cost $213M to $225M, approximately 25% below the scoping study estimate of $293M. However infrastructure requirements have been estimated at between $84M and $108M, exceeding the scoping study provision of $73M. Principal variations in infrastructure costs relate to power supply, process water supply and accommodation facilities. Operating costs have been forecast to average $27.50 per tonne of ore mined and processed over the initial 10 year life of the mine, approximately 8% below scoping study estimates of $30 per tonne. Royalties will add $1.50 to $2.00 per tonne depending on gold price. Whilst expenditure estimates have improved, work carried out during the PFS has indicated that metallurgical recovery and head-grade will be lower than the levels adopted in the scoping study, leading to forecast gold production costs that exceed the scoping study estimate of $968 per ounce. Current estimates generate average cash costs before royalties of approximately $1,100 per ounce over the life of mine, however early scheduling of higher grade ore is expected to produce materially lower cash costs in the initial years of the project.

Jubilee Platinum PLC announced that further to the release dated 27 September 2012, Power Alt (Pty) Ltd ("Power Alt") has now received approval from the National Energy Regulator of South Africa (NERSA) for the sale of electricity to South Africa's national power generating company to commence. Sales of electricity are expected to commence on 26 October 2012. Jubilee currently has a 51% interest in power generating company Power Alt and as previously announced has entered into a process of acquiring an additional 19% interest in Power Alt.