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Paragon Diamonds, EMED Mining, Ncondezi Coal, Oracle Coalfields, Zanaga Iron Ore, Griffin Mining news briefs

Contributed by Fox-Davies Capital

Paragon Diamonds' operation update for its Motete Dyke operation in Lesotho has highlighted that the bulk sampling and drilling programme is now complete. Material from its 3rd bulk sample from the central portion of the dyke has now been treated with 214 tonnes processed and 130 carats recovered. Combined with previous results, the overall recovered grade now comes in at 55 cpht. Tailings samples are being submitted to DebTec in Johannesburg for enhanced recovery to determine the presence of additional, smaller stones that could not be recovered at the bulk sampling plant to help the maximum economically viable grade is targeted. The completion of the delineation drilling (10 holes for 1,109m) has indicated the presence of the dyke for over 470 metres of vertical height and  that it remains open at depth. As the dyke does not appear to taper significantly with depth either, the original in-house estimate of +1Mt to a depth of 100 m below valley floor, and a deposit highly amenable to low-dilution  underground mining, appears to be validated according to the Company.

EMED Mining has announced continuing, on-schedule progress towards production at the Rio Tinto Copper Mine. In August: the Company: took possession of all lands required for its initially planned 14-year operation at the Cerro Colorado Open Pit; purchased options over additional lands exercisable within 4 years that could be used for waste deposition and potential development of other copper deposits; replenished corporate treasury for the €6M of cash expended on land purchases during the past two months by completing equity placements of €8.6  million ($10.7 million or £6.8 million) to existing shareholders

Ncondezi Coal has released its Interim Results to the 30 June 2012. During the period, the JORC Resource increased to 4.7Bt at its Ncondezi Project and work progressed on both the Project DFS and the Power DFS for an 1800MW mine mouth coal power plant. These are expected in H2 2012. The Group made a loss after tax of $4.5M for the period (H1 2011: $1.1M). Cash held at the end of the period totalled US$22.7M.

Oracle Coalfields has released details of the Implementation Plan for its Thar Coalfield Project in Pakistan, prepared by Dargo Associates. The Plan outlines total investment of $463M needed to bring the mine into full production, comprising $110M on mining equipment capex, $66M on infrastructure capex and $287M for opening up costs prior to production. The mining equipment and infrastructure cost has been reduced by $434M due to a reduction in planned mine production from 5M wet tonnes pa to 2.4M wet tonnes pa. Total cash cost per wet tonne has reduced from $42 to $24. The Company is satisfied that the Plan demonstrates the viability of its intention to supply a 300MW power plant from Block VI of the Thar Coalfied.

Zanaga Iron Ore has reported an increase in resource size and classification upgrade for its Zanaga Project in the Republic of Congo. Overall, the Mineral Resource has increased by 57% to 6.8Bt at an average grade of 32.0%, including a 74% increase in resources in the Measured and Indicated category to 4.69Bt. A total of 176,109m has been drilled to date, but this defined Mineral Resource still only incorporates 25km of the 47km orebody.

Griffin Mining has published its interim results for the six months ending 30th June 2012. Operationally, record production of zinc, lead and silver in concentrate was achieved at the Caijiaying Mine. Whilst metallurgical work continues on gold recoveries, mining of high grade gold has been deferred. Increases in costs of sales and net operating costs mainly reflect increased ore processed and concentrate produced. The Company recorded revenues of $39.7M (2011 equiv. $33.9M) and profit before tax ("PBT") of £15.0M (2011 equiv $17.9M). PBT was impacted by foreign exchange losses of $684,000 due to the strong US dollar.