Gladiator Exercises Orusur Option

GLA Takes 80 Per Cent Interest In Uruguay Assets

Orosur Mining Inc. today announces that on 30 April 2010 Gladiator Resource Ltd. has exercised its option pursuant to the Option Agreement announced on 11 January 2010 whereby GLA may earn an interest of up to 80% in the iron ore, manganese ore and base metals ("Assets") in OMI's project area in the Isla Cristalina Belt in Uruguay. OMI retains the rights to gold, silver and diamonds over the project area.

David Fowler, Chief Executive Officer commented: "We are pleased to partner with Gladiator's management team who have significant iron ore experience. Initial field work is confirming historical results which identified the potential to define significant iron ore resources within the Isla Cristalina Belt. Gladiator has moved quickly to raise the funding to complete its work program in the coming year and we look forward to supporting them in progressing the project".

The Option has been exercised subject to the execution of a Definitive Agreement detailing the farm-in joint venture arrangements. Upon execution of the Definitive Agreement GLA will issue AU$ 100,000 worth of fully paid shares to OMI at market value, calculated over the preceding five day trading period. The execution of the option entitles GLA to commence earning the initial 20% interest in the project by spending $US 1,000,000.

GLA will be entitled to earn a 20% interest in the Assets by spending US$ 1,000,000 on work programs. GLA may, at its option, earn a further 31% by spending a further US$ 4,000,000 taking its total interest to 51%. GLA may then elect to earn a further 29% taking its interest to 80% by producing a Bankable Feasibility Study on or before 31 December, 2014.

Based on GLA's initial understanding of the resource potential of the Project area, a number of development possibilities are expected to be considered:

1. Production of iron ore concentrates

2. Production of maganiferrous iron ore concentrates

3. Production of iron ore pellets

4. Production of pig iron and ferro alloys.

Xtierra Raises $500,000 For Mexican Project

Feaisibility Work To Place At Bilbao Project

Toronto-based Xtierra Inc. has closed the second tranche of a private placement for additional gross proceeds of $500,000.

This portion of the placement was purchased by TayCon Capital Corporation, a capital pool company under Policy 2.4 of the TSX Venture Exchange. The shares and warrants acquired will be distributed to the approximately 300 shareholders of TayCon Capital Corporation in proportion to their shareholdings and TayCon will be dissolved.

Proceeds of this issue, together with the $3.955 million raised in the first tranche closed on 1 March 2010, will be used by Xtierra to fund further metallurgical testing and feasibility work on its Bilbao silver-zinc-copper project in Zacatecas, Mexico, and for expenses of the offering, general corporate purposes and working capital.

Andover Ventures Announces Burgin Drilling Results

Utah Mine May Contain Ecnomically Sginificant Gold Deposits

Canadian miner, Andover Ventures has announced a new set of drilling results from its Burgin mine in Utah.

Andover is reporting grades of up to 365 g/t (grammes per tonne) of silver, 7.43% of lead, 2.39% of zinc and 2.55 g/t of gold from hole C0902 and 295 g/t of silver, 12.18% of lead, 4% of zinc and 1.481 g/t of gold from hole C0904.

“Our current interpretation suggests that the gold-rich horizon may be a consistent and economically significant, but previously unrecognized, zone within the deposit,” the company said in the statement.

Andover also announced a private placement of 1.2 million units with each consisting of a common share in the capital of the company at C$0.25 and one common share purchase warrant, entitling the owner to buy one additional share at C$0.35, exercisable over 24 months.

Peru's Gold Output Up, Silver Down

Peru's Energy and Mines Ministry has reported that the country’s gold production for February was 522,373 ounces, compared to 495,337 ounces in February 2008 – rise of 5.5%.

The increase was attributed to higher output at the Minera Barrick Misquichilca mine, as well as at mines owned by Compañia Minera San Simon, Companña Minera Podersoa, Minera Suyamarca and Minera Laytaruma.

Peru also mined 9,596,228 ounces of silver last month, an 11% decrease compared to February 2009’s 10,819,793 ounces of silver were produced.

Meanwhile lead production declined by 11% over the past year, tungsten dropped by 2% and molybdenum rose 13% during the same period.

Oz, Azure Agree To Mexico Joint Venture

Australian mining firms Azure Minerals and OZ Minerals have signed US$13 million joint-venture agreement on Azure’s 100%-owned San Eduardo property in Sonora Mexico.


Azure’s executive chairman, Mr Tony Rovira, welcomed the interest of one of Australia’s premier mining companies as confirmation of the high quality of Azure’s Mexican projects.

Mr Rovira said, "We are delighted to have attracted OZ Minerals to the Sierra Madre Occidental district of northern Mexico, which is one of the world’s great mining provinces.

“To secure the involvement of OZ Minerals in this exploration project is a strong vote of confidence in Azure’s on-going program of regional exploration, target identification and project staking, confirming the effectiveness of our exploration team in Mexico. This Joint Venture will enable Azure to accelerate our exploration programs and develop our projects.”

To earn an initial 51% participating interest in San Eduardo, OZ Minerals will spend US$3,000,000 over the next 3 years, with a minimum commitment of US$300,000 to be expended within the first year. OZ can earn an additional 19% participating interest in the project by spending a further US$10,000,000, taking its total equity to 70%.

The San Eduardo property is a granted mineral concession covering 201km2. It adjoins Azure’s 100%-owned El Tecolote project and is situated 10 kilometres west of Azure’s La Tortuga property (subject to an earn-in joint venture with JOGMEC).
Historical sampling by the Mexican Geological Survey at Alejandra collected a 40 channel samples of wall-rock, returning an average grade of 25 g/t Ag, 7.34% Pb and 1.89% Zn, with maximum values of 80.9 g/t Ag, 20.04% Pb and 5.45% Zn.
Planning of the San Eduardo work program is at an advanced stage and field work will commence shortly. Phase 1 will comprise geological mapping and surface sampling, an airborne magnetic and radiometric survey, Induced Polarisation (IP) surveying and drilling.
This involves a minimum expenditure commitment of US$300,000, which will be sole-funded by OZ Minerals, and is expected to be completed by the end of 2010.

August Resources Raises £32 million To Develop Arizona Project

Vancouver-based miner, August Resource Corporation, is to raise $32.5 million (U.S.) dollars in a share issued.

The company plans to use the net proceeds to advance the development of its new Rosemont Copper mine located 30 miles south of Tucson, Arizona in the Santa Rita mountains.

The offering is scheduled to close on March 12.

Augusta have also announced that it has signed an agreement with the Silver Wheaton Corporation under which the company will provide Silver Wheaton with silver and gold in the amount equal to 100 percent of the payable silver and gold to be produced by the Rosemont Copper Project.

Silver Wheaton will be paying Augusta up front cash payments totalling $230 million (U.S) and payments of $3.90 per ounce of silver and $450 per ounce of gold delivered during the mine life, or the prevailing market prices if lower.

Rosemont is expected to produce an average of 2.4 million ounces of silver and up to 15,000 ounces of gold each year over a projected 22-year mine life.

Anvil Sells Stake In Congo Copper-Silver Project

Canada's Anvil Mining Ltd is to sell its 90 per cent interest in the Dikulushi copper-silver mine in the Democratic Republic of Congo (DRC) to Australia's Mawson West Ltd. In return Anvil will receive a 28 percent stake in the junior miner.

The company said it is focused on larger copper projects in the DRC, in particular the copper mine project Kinsevere Stage II in Congo which is expected to yield 60,000 tonnes per year of cathode copper and is expected to begin commissioning during the first quarter of 2011. The Company plans to carry out further drilling at Kinsevere during 2010 and is investigating expansion opportunities with attractive synergies for the Kinsevere operation with the possibility of extending the processing life of the project.

The Dikulushi copper-silver mine was placed on care and maintenance in the fourth quarter of 2008 due to weaker commodity prices.

Arehada Mining Sells Chinese Operating Subsidiary To Shanjin Mining

Toronto-quoted Chinese mining company is being bought by the Shandong-based mining company, Shanjin Mining Corporation. Under the terms of the agreement the Barbados-based subsidiary of the TSX-quoted company is to sell its shares in the Chinese operating subsidiary to Shanjin Mining.

The agreement will take effect upon the regulatory approval of authorities in the Inner Mongolia Autonomous Region and Shandong Province of China.

Arehada is engaged in the exploration, development, extraction and refining of base metals, primarily lead, zinc and silver in Inner Mongolia.

Tara Minerals To Commence Production At San Felipe Vein

Tara Minerals has announced that is to advance the San Felipe gold and silver vein into production. The company has commenced a mine development plan and is enhancing the current mill design to incorporate the production of Gold and Silver concentrates. To date approximately 800 tonnes of material has been mined from San Felipe.

San Felipe is a Gold and Silver quartz vein located 1.5 km southeast of the Don Roman mine and mill near the town of Choix in Sinaloa state, Mexico. Recent channel samples returned an average grade of 10.06 grams per tonne Gold and 149.85 grams per tonne Silver.

The Don Roman mill is currently processing silver, zinc, and lead at a rate of 240 tonnes per day, which will be expanded to 360 tonnes per day by commissioning a third circuit. Further expansion will give a total plant production capacity of 660 tonnes per day. The expansion projects are anticipated to begin on 1 April this year and will be completed within nine months. The processing and sale of silver, zinc and lead concentrate will continue during the expansion work.

Tara Minerals President Francis Biscan Jr said "With the strong economics of the San Felipe Gold and Silver vein and the strategic location of this structure to our existing plant, we expect to achieve an expeditious return on investment. With the development of San Felipe, we will add to the diversity of metals produced, add substantial cash flow beyond our original expectations, and give our shareholders leverage to the Gold price."

Griffin Mining Reports Higher Gold Output At Caijiaying

UK-based miner, Griffin Mining Limited, has reported increased production at its Caijiaying Zinc Gold Mine in Hebei province, China, in the quarter to 31st December 2009.

Gold output in the quarter was up 33.7 per cent at 1673 ounces, while zinc output was up 5.3 per cent at 7141 tonnes. Output of silver fell by 21.9 per cent to 29,695 ounces while that of lead fell 36.7 per cent to 138 tonnes. Total ore processed was up 9.8 per cent at 125,379 tonnes.

Following the grant of a new mining licence permitting the extraction of ore below the 1300 level, mine development and stope preparation below the 1300 level is now underway with the expectation of ore being extracted from the lower levels later this quarter. Work is also continuing on the upgrade of the processing plant and tailings dams to increase processing capacity to 750,000 tonnes of ore per annum by the autumn of 2010.

Chairman Mladen Ninkov said: “The operating performance of the Caijiaying mine continues to improve and we look forward to even better results as the next levels of the mine are accessed and the plant upgrade is completed.”

Oriental Minerals Exercises Option On Korean Lead-Zinc Properties

Canadian-based Oriental Minerals, the only western metals exploration company active in South Korea, announced on Wednesday that it has given notice of intent to exercise options on the Yeonwha and Taebaek lead-zinc properties in South Korea in return for cash and shares worth $2.1 million. Oriental was granted the options under a 2006 agreement with the Se Woo Mining Company.


Oriental is currently progressing its three core mineral deposits in South Korea: Sangdong tungsten-molybdenum, Sangdong molybdenum and Muguk gold but regards the Taebaek and Yeonwha properties as longer-term additions to its portfolio.

Southern Copper Sees Prices Remaining Strong In 2010

Southern Copper Corp - a subsidiary of Grupo Mexico - said on Tuesday it expects average copper prices of $3.25 per pound in 2010, as it expects demand to be boosted by emerging and developed economies.

The price of copper rose 140 percent in 2009 on strong Chinese buying and supply concerns, but fell 8.5 percent in January as rising inventories suggested demand outside China was weak. Current price is a little over $3 a pound.

"We believe that inventories of copper will start to die off during the year, reversing the last month's trend," Southern Copper's Chief Financial Officer Genaro Guerrero said on a conference call with buying from emerging economies like China supporting prices through this year. Mr Guerrero also said that he expected consumption to rise in developed countries.

Southern Copper estimates copper production for this year at 500,000 tonnes, slightly above the 485,376 tonnes it mined this year, with molybdenum production forecast at 18,500 tonnes, in line with last year's output. Zinc sales this year are expected to be around 110,000 tonnes and silver sales to come in near 16 million ounces.

The company's 2010 copper forecast does not include potential output from the Cananea copper mine in Mexico, which usually produces around 20 per cent of the company’s copper but which has been closed by a strike for two years. The company was not able to give an estimated date for production to re-commence at Cananea.

Earlier this week copper trader Mr David Threlkeld said he expected the price of copper to plunge to around $1 a pound as he believed there to be much higher inventories than have been reported.

Kagara Buys Liontown Deposit

Zinc and copper producer Kagara Ltd has bought a metals deposit from Liontown Resources Ltd for $4.5 million.

Kagara has agreed to buy the Liontown deposit, which is thought to have a resource of 1.85 million tonnes at 7.5 per cent zinc, 2.4 per cent lead, 0.6 per cent copper, 28 grams per tonne of silver, and 0.55 grams per tonne of gold.

The company will pay Liontown Resources $2.25 million in Kagara shares, plus another $2.25 million on commencement of mining operations.

The deposit lies adjacent to Kagara's Waterloo deposit and will significantly increase the company's resources in the area, Kagara said in a statement.

The deposit is near Charters Towers, in Queensland's northeast and is just 30 kilometres from Kagara's Thalanga processing plant.

Completion of the deal is expected to occur on January 6, when the Kagara shares will be issued.

Liontown's managing director Doug Jones said given Kagara's ownership of Waterloo and a nearby processing plant it was a natural buyer of the project.

Source: AAP

Drilling May Lead To Eureka Mines Re-Opening

A major mining company has plans to re-open mining in about a year in what is described as the richest silver, leaf and zinc deposit in the United States.

Chief Consolidated Mining Co. is drilling core samples in the extension of the old Kennecott Bergin Mine and the Trixie Mine for gold, silver and copper, "to make sure the deposits are there," chairman and chief executive officer Gordon Blankstein said.

Chief owns about 16,000 acres of land, which includes part of Eureka and south and west of the historic mining town on both sides of U.S. 6. Chief is one of the largest landholders in Utah. The company is refurbishing an old mill as part of the return to mining there, Blankstein said. The mill was rebuilt about nine years ago.

"The Bergin is extremely rich," Blankstein said.

Over the years, Kennecott Resources, Sunshine Mining Co. and Chief have drilled more than 100 exploration holes in the district. Current crews are confirming the findings made then. They finished drilling hole No. 1 on Nov. 21 at a depth of 1,721 feet. Samples were sent for assay. A second hole went to 1,700 feet. Crews are also working on a third hole.

In the early years, mining would stop when the miners hit water. Today's miners have better ways of pumping and treating the water to continue mining. It has been studied as a source for potable water for the developing west side of Utah Lake, Blankstein said.

However, the Trixie mine doesn't have water issues, he said.

The company also plans to update a 2001 feasibility study before beginning mining operations in the East Tintic Mining District. Historically, the district has yielded 2.3 million ounces of gold, 250 million ounces of silver, 250 million pounds of copper, 2.2 billion pounds of lead and 1 billion pounds of zinc, Blankstein said.

Andover Ventures of Vancouver, British Columbia, acquired 65 percent of Chief in 2008. Chief has been mining in the district sporadically since 1876.

"If we open a mine there, we will be creating jobs," Blankstein said. "There will be jobs created in the mill and in the underground mines."

Two drilling crews are working there now.

Several years ago, the Environmental Protection Agency mandated environmental cleanup in Eureka from lead residue left from the old days of mining. That work delayed Chief's mining pursuits but is nearing completion, he said.

Source: Deseret News

Trevali Commences Expansion At Peru Silver-Lead-Zinc Project

Trevali Resources Corp. in conjunction with partner Glencore International A.G. has successfully completed a positive internal mine development study examining initiating mining operations on the newly discovered Magistral deposits at the Santander polymetallic project in west-central Peru.

Trevali and Glencore have entered into a definitive development agreement for the Santander project that will see Glencore provide and operate a 2,000-tonne-per-day concentrate plant, undertake mining operations on a 'contractor/toll basis' and enter into a long-term concentrate offtake agreement for 100% of Santander project production at benchmark terms.

Trevalis Santander silver-lead-zinc mine project is located approximately 215 km by road from Lima, in the western extent of Peru's prolific Cerro de Pasco mineral district. The mine operated from 1958-1993 targeting a single Carbonate Replacement Deposit--type pipe and manto structure, the Santander Orebody.

Substantial site infrastructure at the formerly producing operation includes a fully refurbished 200-man camp and associated support facilities, an ore processing / concentrator plant (including various crushers, mills, flotation cells and filters able to produce zinc, lead-silver and copper concentrates) undergoing refurbishment, and the Tingo hydroelectric power-station located 17 km down-valley to the west. The Santander project and the considerable existing infrastructure form a highly strategic asset in this mining district. The Company commenced exploration at Santander in November 2007 discovering four new high-grade silver-lead-zinc replacement and massive sulphide bodies to date.

A recently completed independent NI 43-101 resource estimate of the three Magistral deposits by Golder Associates Engineers (see NR-09-06) reviews a total Indicated Mineral Resource of 5,298,000 tonnes with an average grade of 3.34% zinc, 1.27% lead and 38 g/t silver (using a 2% ZnEQ* cut-off grade) -- for a contained metal inventory of 390 million lbs. zinc, 149 million lbs. lead and 6.5 million oz. silver in the Indicated category. An additional Inferred Mineral Resource of 2,244,000 tonnes grading 2.92% zinc, 0.50% lead and 18 g/t silver was also reviewed in the three deposits using the same cut-off grade -- for contained metals of 144 million lbs. zinc, 25 million lbs. lead and 1.3 million oz. silver. All three Magistral bodies remain open at depth and to the East.

Additionally, a further 100 million contained lbs. of zinc are estimated to be present in the 1,656,000 indicated tonnes grading at 2.74% zinc (using a 2.0% zinc cut-off grade) within the Santander Tailings Impoundment.

Additionally, through its wholly owned subsidiary Trevali Renewable Energy Inc., the Company is undertaking a significant upgrade of the Tingo run-of-river hydroelectric generating facility along with transmission line upgrades and extensions to allow the potential sale of surplus power into the Peruvian National Energy Grid.

Source: Financial Post

Yemen To Export Zinc And Silver By 2010

Yemen is to export the first shipment of zinc and silver by the beginning of 2010, a source at the General Board for Survey and Geology said on Thursday.

The first quantities will be produced at the Sulb Mountain in Nehm area, 110 km northeast of the capital, Sana'a.

50 percent of the Zinc and Sliver Plant there has been completed so far, and construction works would be completed by 2009.

The project is deemed a milestone in the mining sector which grew by 6 percent over the last two years.

About 24 companies are working on mining in Yemen providing jobs for 11.800 people, recent studies reveal.

More efforts are exerted by the authorities to improve the sector and increase mining sites, with studies being conducted in association with specialized foreign companies.

Source: Yemen Post

Hana To Take Stake In Botswana Copper/Silver Project

TSX-listed exploration company Hana Mining has agreed to buy an initial, indirect 70% interest in five prospecting licences in Botswana, comprising the Ghanzi copper/silver project.

The company reported on Tuesday that it had concluded a share purchase agreement with the shareholders of Stellent, a privately held corporation located in Botswana, which was the holder of the licences.

The agreement also granted Hana Mining the exclusive right to purchase the remaining 30% share in Stellent.

The Ghanzi project has an inferred resource of 2,9-billion pounds of copper and 51,1-million ounces of silver.

"I am very pleased for the company shareholders and for Stellent, as this represents the conclusion of a process of negotiation which began in 2007, with our securing initial rights to explore the ground at Ghanzi, and it also reflects the value growth in the resource which we have unlocked over that time,” said Hana Mining CEO Marek Kreczmer.

Under the agreement, Hana Mining would pay a cash consideration of $200 00, and issue 166 666 common shares to Stellent. A further 666 666 share purchase warrants would be issued, each warrant entitling the purchase of one additional common share, for a period of 24 months, at a price of C$0,32.

To acquire an additional 20% share in Stellant, Hanna Mining could make a cash payment of $9-million is to be paid upon the completion of a positive bankable feasibility study, the sale of all the issued common shares of Hana Mining to a third party, or at the company’s election.

For the remaining 10%, Hanna Mining would have to issue four-million purchase warrants, each entitling the purchase of one additional common share, at a price of C$2,00 a share.

The Ghanzi project is located in northwestern Botswana. The area contains near surface sediment-hosted copper/silver deposits with a demonstrated cumulative strike length of over 16 km.

Significant infrastructure is planned, or is in place in the region, including a new 800 MW power plant in Botswana, which would provide power for the project and the paved trans-Kalahari highway, which runs from Namibia to South Africa, passes within 15 km of the property.

SourcE: Mining Weekly

Pan American Begins Silver Production At Bolivian Mine

Vancouver-based Pan American Silver has begun producing silver and zinc concentrates at its San Vincente mine, in Bolivia, the firm announced on Wednesday.

Pan American owns 95% of the mine and the balance is held by a State-owned company.

The company decided to build its own processing facility at the mine and ramp up throughput rates, after discovering a high-grade Litoral vein system.

Before that, ore was trucked to a small third-party mill for processing.

Pan American started commissioning the new 750 t/d facility in mid-January, and expects San Vicente to reach design capacity “within the next few months”.

At full capacity, the mine is expected to contribute just less than 3-million ounces a year to Pan American's production profile.

Altogether, the company, which also officially opened its Manantial Espejo mine, in Argentina, last month, expects to produce 21,5-million ounces of silver this year, at cash costs of $6,28/oz.

Source: Mining Weekly

Does Run Peru Smelter "Faces Problems"

Renco Group Inc.’s Peruvian unit said it is in talks with banks and mining suppliers about financing after a global credit crisis discouraged banks from lending.

The Doe Run Peru unit “faces temporary problems,” Victor Belaunde, a spokesman, said today in an e-mailed response to questions. The unit cut 1,100 subcontracted workers at its copper mine and zinc, lead and copper smelter in January, according to the Mining Federation.

The problems are “a consequence of the impact that the international financial crisis has had on the company’s operations,” Belaunde said. “Doe Run Peru is working with banks and mining-concentrates suppliers in search of solutions.”

Lima-based newspaper El Comercio reported today that the Peruvian government may bail out the company after a group of banks led by Peru’s Banco de Credito cut off a $75 million line of credit. Belaunde declined to comment on the report.

Banco de Credito spokeswoman Aida Kleffmann didn’t immediately return calls or an e-mail from Bloomberg News seeking comment. Fernando Mendoza, Finance Ministry spokesman, declined to comment when contacted by Bloomberg.

The smelter has shut zinc- and lead-processing plants for lack of concentrates, Roiberto Guzman, a Doe Run Peru metallurgical union spokesman, said by telephone from La Oroya.

“The company said it isn’t able to buy concentrates as it owes suppliers,” Guzman said. “It was also late paying workers’ wages.”

Doe Run’s La Oroya smelter, 140 kilometres (87 miles) east of Lima, last year refined 114,259 metric tons of lead; 43,440 tons of zinc; 53,831 tons of copper and 1.1 million kilograms of silver, according to the Energy & Mines Ministry. It also refines minor metals.

The company, which was Peru’s fourth-largest exporter with $1.45 billion in sales abroad in 2007, buys $1 billion of concentrates a year, according to Doe Run’s Web site.

SourcE: Bloomberg

Hindustan Zinc Puts Up Lead And Silver Prices

Vedanta Resources group firm Hindustan Zinc said it has hiked prices of lead by Rs 4,100 to 79,600 a tonne with effect from Thursday.

Lead is primarily used by battery manufacturing, rubber and paint industries.

The firm also announced an increase in silver rates by Rs 140 to 21,980 per kg. It reviews silver prices almost daily.

Silver is used in manufacturing of electrical contacts and conductors, mirrors and catalysis of chemical reactions. Its amalgamations are used in dental fillings.

However, it retained prices of zinc, used in producing galvanised steel, at previous week's level of Rs 76,100 per tonne.

The price revision is effective from today, a company circular said.

The miner revises rates of its base metals mostly twice a week in tandem with the price movement at the London Metal Exchange.

SourcE: The Hindu