This week: OMG! A new superhero franchise, Designs on Europe, TyraTech re-order, Cheers! Shepherd Neame breaks records and Summit makes progress in a difficile market
African Eagle (AFE 5.38p/ £20.68m)
African Eagle Resources (LON:AFE) last week announced an important resource update. The Company has seen a 13 per cent increase to 917kt in contained nickel metal of the JORC inferred resource at Dutwa Project. There is a 6 per cent increase in average Ni grade to 0.93 per cent Ni and 4 per cent increase to 0.96 per cent in nickel equivalent grade after cobalt credits. Resources in each different ore type are delineated for the first time. There is also potential for a further 8-10m tonnes of ore at Ngasamo. The drilling for the bulk ore sample is well ahead of schedule. Whittle optimisation and revision of project economics is now underway. Comprehensive, second-stage metallurgical test work on the bulk sample is expected to commence in December.
Allied Gold Ltd (LON:AGLD) (AGLD 31.75 p / £330.24m)
Allied Gold is a fast growing Pacific Rim gold producer with production, exploration and development projects in Papua New Guinea (including the Simberi gold mine) and the Solomon Islands (the Gold Ridge mine). Simberi is an open-pit operation with a 2.2Mtpa processing plant that produced over 64,000 oz Au in the year to 30 June 2010, with 75,000 oz to 80,000 oz expected this year. Gold Ridge, which was effectively acquired at the end of 2009, is undergoing development works with the aim of producing 120,000 oz Au in the year to end June 2012. Allied Gold has just released its September production level of 18,000 oz Au, in line with management guidance. The throughput at the mill during the quarter was 560,000 tonnes at a grade of 1.09 g/t, a recovery rate of 91.3 percent and a cash cost of US$660 per ounce (subject to inventory adjustment and final review). The quarterly numbers and full production report will be published within the next couple of weeks. Although production costs per ounce cannot be described as cheap, the management’s projections for production increases over the next few years should ensure an avid investor following.
Beowulf Mining (LON:BEM) plc (BEM 10.5p/£16.78m)
The Company…
