Mining News

GGG Resources (LON:GGG) (GGG LN, 25.9p ? 0.0%) Trading was suspended this morning, pending the result of the Final Court hearing, expected later today, on the scheme of arrangement and proposed listing of Bullabulling Gold Limited following the merger with Ausex. Once the scheme is effective GGG shareholders will receive 1 Bullabulling Gold share for every GGG share and admission of Bullabulling Gold Depositary Interests are expected to start trading on AIM at 8am tomorrow.

ENK (LON:ENK) PLC (ENK LN, 12.25p, ? 0.0%) released a resource update on its ACOJE nickel laterite project in the Philippines. The new resource is Indicated 40.9mt at 1.08% Ni and 0.05% Co and Inferred of 29mt at 0.96% Ni with 0.06% Co. The grades are low in our opinion for a traditional laterite project to be economic. However, ENK currently has a pilot plant working at the project and is evaluating the use of atmospheric nickel leaching (BFS expected in 2Q12) and Atmospheric pressure Tank Leach (BFS expected in 4Q12) which the company is hoping will provide an economic alternative to traditional HPAL or smelting of laterites.

Firestone Diamonds (LON:FDI) (FDI LON, 9.38p, ? 0.0%) has released its interim results and details of £14.7m placing. The interims were disappointing, but unsurprising given the announcement on 28 February that the company?s BK11 mine in Botswana was being placed on care and maintenance. One of the drivers for this was the fall in diamond prices with BK11 receiving an average price of US$133/carat (ct) in the half compared to US$233/ct in 2H11 (30 June yearend). At Liqhobong in Lesotho the pilot plant produced 70,192cts at 33.77 carats per hundred tonnes (cpht) compared to 23,296cts in 2H11. However, the 42,802 cts sold received an average price of US$59/ct compared to US$140/ct in 2H11. The company also announced a £14.7m (£12.8m net) private placing at 8.5p per share. Roughly a third of this will be used as capex and to complete the treatment plant DFS at Liqhobong, with a third on BK11 care and maintenance costs and debt repayments and the remaining £5.4m for working capital purposes. The company expects the DFS on the main treatment plant to be complete in 3Q12 when it will need to raise additional funds for the construction of the main plant which…

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