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Salamander Energy, Highland Gold, Chromex Mining, Beowulf Mining, Griffin Mining news briefs

By Fox-Davies Capital

Salamander Energy has agreed to acquire the full authorised share capital of Bontang Energy Limited, the holder of a 20% interest in its operated Bontang PSC, from PT. Eksindo Petroleum Tabuhan ("Eksindo"). On completion Salamander will have a 90% interest in the Bontang PSC, which is located in East Kalimantan, Indonesia. The consideration will be satisfied through the issue of 792,942 new Salamander ordinary shares to Eksindo. The Bontang PSC lies at the northern end of the prolific Kutei basin and has not seen any exploration drilling in the past 25 years. In 2008 and 2009 Salamander acquired 3D seismic data across the block. This data highlights multiple prospects in both structural and stratigraphic plays with cumulative mean gross prospective resources in excess of 500 MMboe. The Angklung prospect has been selected as the first exploration drilling target on the block and is expected to spud in Q2 2010. It is forecast to contain mean prospective resources of 125 MMboe.

Highland Gold announced the first shipment of concentrate from the Novoshirokinskoye mine commissioned in October 2009.1,200 tonnes of concentrate were produced and shipped in February 2010 for smelting and refining at the Ust-Kamenogorsk plant in Kazakhstan operated by Kazzinc, a subsidiary of Glencore. The mine remains on track with increasing production from the underground operations and process plant and anticipates ca. 300,000 tonnes of ore to be mined and processed during 2010, thereafter ramping up to an annual projected capacity of 450,000 tonnes by 2011.
Comment: We retain the BUY recommendation with an unchanged target price of ?1.24. Peter Rose +44(0)20 7936 5246

Chromex Mining announced encouraging results from Platinum Group Elements ('PGEs') testwork conducted on its 271 hectare Stellite 255JQ ('Stellite') farm on the Western Limb of the Bushveld Complex in South Africa, where the Company is currently mining chrome. In light of these results, a study is now underway to determine the economics of adding a PGE floatation plant to treat the tailings arising from the gravity concentration plant at Stellite. PGEs, comprising platinum, palladium and rhodium, are present in small concentrations in the chromite reefs. Results of recent testwork on a series of run of mine MG3 samples show an average 3PGE and gold content of 1.74g/t.

Beowulf Mining announced the conceptual study by Raw Materials Group ("RMG") shows the Kallak deposit containing a significant resource of iron ore close to the surface and therefore amenable to open-pit mining. Kallak is one of Scandinavia's largest known iron ore deposits still awaiting commercial exploitation. Similar economic potential to that of Beowulf's Ruoutevare deposit. Conceptual study shows Kallak to be a "robust project" with a total potential cash flow, after capital and operating costs, of approximately US$2.9bn over a 15 year mine life .A pay back period of 3.6 years has been calculated at the higher forecast range for market prices of iron ore.

Griffin Mining announced the latest JORC reported Mineral Resource for Zone III at its Caijiaying Mine in the People’s Republic of China. The results confirm increased grade and Measured Resources from that previously reported in the Micromine 2002 Mineral Resource Estimate, and extensive resources and long mine life for the continuing mining operations at Zone III. Total measured, indicated and inferred resources now total 27.3Mt grading 5.11% zinc, 0.29% lead, 29.09g/t silver and 0.91g/t gold.