TABLE OF CONTENTS
Randgold Resources - Four New Mines on Horizon
Sundance Raises A$85m for Iron Ore Project in Cameroon
Exxaro to Expand Into Nickel and Copper
Alexco Completes Bellekeno Mine Development Plan, Silver Wheaton Concurs
Polymet Publishes EIS Draft on NorthMet Minnesota Project
Increase in Palmarejo Silver and Gold Reserves for Coeur d'Alene Mines
Ecuador New Mining Law Good News for IAMGOLD
Kinross to Restart Gold Project in Ecuador
Hudbay Looking at Partner for Fenix Nickel Project
Bolivia to Develop Uyuni Lithium Project by 2014
Silver Dragon Reports High Grade Silver-Lead-Zinc Intersections at Mongolian Project
Finders Raises $21m / Sees Progress at Wetar Copper and Ojolali Gold-Silver Projects
Leighton Asia Expands Production at UHG Mine in Mongolia
Marmota Energy's New Uranium Prospect Shows Early Promise
NunaMinerals Announces Significant Gold Discovery in Greenland
Scottish Mining Company Scotgold Discovers Highland Gold
Randgold Resources Limited is to fast-track its Gounkoto project after a scoping study and first resource declaration confirmed robust economics well in excess of the company’s hurdle rates.
A prefeasibility study on the project, situated just 25 kilometres south of the company’s flagship Loulo complex in Mali, has been scheduled for completion by the end of the first quarter of 2010. The scoping study estimated an inferred mineral resource of 2.65 million ounces at a grade of 6.3g/t, with pit optimisations at gold prices of US$650/oz and US$850/oz both showing internal rates of return in excess of 60 percent.
Gounkoto joins a project line-up which also includes the Tongon mine in Côte d’Ivoire, currently being built and due for first production in the fourth quarter of 2010; Massawa in Senegal, where a prefeasibility study will be completed before the end of this year; and Kibali (formerly known as Moto) in the Democratic Republic of Congo, recently acquired in partnership with AngloGold Ashanti.
Chief executive Mark Bristow said that while 2009 was, as expected, proving to be a tough operating year for the company - which is substantially expanding its flagship Loulo complex and has converted the Morila joint venture into a stockpile treatment operation - it was also producing some very significant rewards thanks to outstanding delivery from its exploration and project teams and success on the new business front.
The company recently reported gold sales of US $103.5 million for the third quarter, in line with the figure for the second quarter and up 32 percent on the corresponding period for 2008. However, with total cash costs rising 17 percent to US $68.2 million, profit for the quarter was US$13.6 million against the previous quarter’s US$18.9 million and a loss of US $684 000 for the corresponding period in 2008. Costs for the quarter were impacted by higher open pit and underground mining costs at Loulo and by Morila’s full transition from mining to stockpile processing.
Loulo produced 86 940 ounces of gold at a total cash cost of US $591/oz (Q2: 87 261 ounces at US $483/oz). The cost increase was mainly attributable to the mobilisation of a second mining contractor and the mining of additional lower-grade volumes from the open pit as a result of the slower than expected ramp-up in tonnage from the Yalea underground operation. During the quarter Loulo produced its millionth ounce of gold.
Water control and ventilation issues hampered the development and operating performance of Loulo’s Yalea underground mine but remedial steps have been taken to correct this. During the quarter, work started on the boxcut for Gara, which will be Loulo’s second underground mine.
In its first full quarter as a pure stockpile processor, Morila produced 79 963 ounces of gold at a total cash cost of US$525/oz (Q2: 86 061 ounces at US$463/oz). The operation is maintaining its drive to contain costs and to ensure that it remains a strong cash generator until its closure, currently scheduled for 2013. The mine also continues to work on a feasibility study to establish a sustainable agribusiness for the local community.
In Côte d’Ivoire, the development of the Tongon mine is ahead of schedule. During the quarter the government’s interministerial commission approved the mining licence, clearing the way for the formalisation of the mining convention.
Since the end of the quarter, Randgold and AngloGold Ashanti have completed their acquisition of Moto Goldmines. They have since announced an agreement to purchase an additional 20 percent stake in the Moto project from the Congolese parastatal OKIMO. Following this, the two companies will together own 90 percent of the project. The transaction is subject to certain closing conditions, including the approval of Randgold’s shareholders.
Also since the quarter-end, Randgold has announced that it has sold its interest in the Kiaka project in Burkina Faso to Volta Resources for CAN$4 million in cash and 20 million common shares in Volta. It will retain an interest in the upside of the project through its equity holding in Volta.
Australian miner Sundance Resources has raised A$85 million from institutional investors to advance its Mbalam iron ore project in Cameroon, the company said recently.
According to the agreement, 567 million shares will be issued at A$0.15 per share, subject to shareholder approval.
Proceeds will be used to complete a definitive feasibility study of the Mbalam project, undertake drilling to define more high-grade mineralisation and provide general working capital.
Sundance Resources submitted a feasibility study on Mbalam to the Cameroonian government last month, projecting the Central African country would receive some $5 billion in royalties, taxes, and dividends during the 25-year life of the mine.
The project, some 400 km (250 miles) southeast of the capital Yaounde, holds an estimated 2.5 billion tonnes of hematite, a mineral form of iron oxide. The company hopes to produce some 35 million tonnes per year.
Sundance said last month it was putting back its target for initial production at the project to 2013 from 2011 because of the global economic slowdown which has seriously impacted iron ore markets and the availability of project finance in 2009.
South African diversified miner Exxaro Resources plans to expand into nickel and copper mining in Africa, its Chief Executive Sipho Nkosi said recently.
Nkosi said Exxaro would spend its own cash and raise additional capital from banks and seek equity partners to develop projects in coal, minerals sands, nickel and copper mining and to expand its interests in the iron ore business.
Nkosi said the company, which is developing major coal reserves in South Africa's Waterberg area in the Limpopo province, expected the Richards Bay Coal Terminal (RBCT) to double its port capacity within the next few years from an estimated 6.3 million tonnes at the end of 2009.
"Our plans are, probably in the next five-six years, to double that one," Nkosi told Reuters in an interview.
Nkosi said Exxaro, the main supplier of coal to South Africa's power utility Eskom, could spend up to 12 billion rand expanding the Grootegeluk mine to supply coal to Eskom's Medupi plant, which is under construction, by October 2010. .
Nkosi said Exxaro had started discussions to develop the Mafutha coal mine as a joint venture with South Africa's petrochemicals group Sasol, and around R12-13 billion could be spent on the project. .
Nkosi said Exxaro also planned to explore possibilities of mining for coal in Botswana but the project would need to be supported by new rail infrastructure to transport coal. Exxaro is in talks with Transnet Freight Rail (TFR), the freight arm of South Africa's logistics group Transnet Ltd for a possible joint venture to expand rail capacity.
Exxaro forecast it would supply Eskom with up to 38 million tonnes of coal this year, versus 36 million tonnes last year. However, its ability to export coal will depend on the rail capacity to the RBCT. The port owners had said they would expand its capacity to 91 million tonnes by October, but logistics group Transnet has said it signed contracts with coal producers to rail only up to 70 million tonnes of coal to the port this year. Exxaro has said it could use private haulers if Transnet is unable to bring all its coal to the port.
Alexco Resource Corp. recently announced the completion of a positive Development Plan for its wholly owned silver-lead-zinc Bellekeno mine in the Keno Hill Silver District, Yukon. The Development Plan incorporates the terms of Alexco's agreement with Silver Wheaton Corp. and outlines a project with a pre-tax net present value to Alexco of C$31.9 million over an initial mine life of approximately four years. Silver Wheaton has provided Alexco with written confirmation of their acceptance that the Development Plan is favourable, and Alexco's Board of Directors has authorized the initiation of construction activity in anticipation of full mine production in the third quarter of 2010.
The Development Plan is a comprehensive study describing the proposed mining methods and proposed mineral processing methods, as well as expected metallurgical recoveries, engineering design of mill and mine facilities, permitting requirements, environmental impacts and other factors relevant to the construction and operation of the proposed mine. The Plan encompasses an updated mineral resource estimate for Bellekeno on which the proposed mining plan is based, as well as an economic analysis of the project.
Key highlights from the Development Plan are summarized as follows:
· Average net smelter return ("NSR") over the life of mine ("LOM") is estimated at C$458 per tonne mined, including C$535 per tonne mined over the first two years.
· Average operating costs over the LOM are estimated to be C$287 per tonne mined, including mining, milling, general and administrative costs and royalty payments, yielding an LOM operating margin of C$171 per tonne, with average operating costs over the first two years estimated to be C$287 yielding an operating margin of C$248.
· Silver production costs on a net of by-products basis are estimated to be US$6.07 per ounce over the LOM under the base case scenario, and US$3.83 per ounce under the current metal prices scenario.
· Accounting for mining dilution and recovery, a total of 321,941 tonnes containing an estimated 871 grams per tonne silver, 9.5% lead and 5.6% zinc on a payable metal basis are included in the current LOM mining plan. The mining plan is based entirely on indicated resources. LOM metal production to concentrate is estimated to be approximately 8.6 million ounces silver, 65.2 million pounds lead and 35.2 million pounds zinc.
· Processing will utilize a standard lead and zinc differential flotation process incorporating dry stack tailings technology, with the processing plant carrying a design capacity of 408 tonnes per day. Average LOM recoveries are estimated to be 95.8% silver, 96.9% lead and 88.4% zinc to produce approximately 42,043 dry tonnes of lead/silver concentrate and 29,293 dry tonnes of zinc/silver concentrate over the LOM.
· Mining and milling operations will be carried out year-round at a base-plan production rate of 250 tonnes per day.
· Mining will be carried out by a mining contractor, using predominantly cut-and-fill mining methods augmented with some minor shrink stoping to optimize high grade mineralization extraction and reduce dilution. Mined-out stopes will be backfilled with a cemented blend of development waste rock and the pyritic component of dry filtered tailings backhauled from the processing plant.
· In early 2009, Alexco completed a decline accessing the historic Bellekeno workings to enable an extensive underground resource drilling program as well as rehabilitate the historic infrastructure, re-establish mine ventilation and provide a secondary escape. This has also allowed direct geotechnical study and assessment of ground conditions in the resource body, enabling development of a robust strategy for ground control management.
· Total construction and development capital to achieve commercial production is estimated to be C$41.6 million, including a contingency factor of approximately 16%. Of this, US$35 million (C$38.0 million at an estimated exchange rate of $0.92) will be funded by Silver Wheaton under its silver purchase agreement with Alexco.
· The economic analysis reflects 25% of the silver production being sold to Silver Wheaton at US$3.90 per ounce, in accordance with the silver purchase agreement.
· The construction and development schedule in the Development Plan anticipates initial mine and mill production commencing in June 2010.
· Approximately 83,000 tonnes of zinc rich inferred resources in the lower East zone are not included the mine plan, but represent a potential opportunity to expand the minable resource base depending upon definition drilling and future zinc prices. Additionally, based on structural and stratigraphic studies combined with the extensive drilling carried out on the Bellekeno deposit, a number of resource expansion and exploration targets have been identified in areas within and immediately adjacent to the existing minable resource. The highest priority of these targets will be tested in the first half of 2010, during the mine development period.
The Duluth Complex is considered to host one of the world's largest undeveloped repositories of copper, nickel and PGMs, including the world's third largest accumulation of nickel sulphides, and one of the world's largest accumulations of polymetallic copper and platinum group metals. The most advanced project development there is that of PolyMet Mining, which has effectively been paving the way for the companies following behind in terms of geological data, metallurgical testing and now has published its draft Environmental Impact Statement (EIS) on its NorthMet mining project, the next stage in developing a mine in area of the U.S. Altogether, including PolyMet and Duluth Metals there are four prospective major mine developments in prospect on the Complex.
In effect the Polymet draft EIS becomes the start of the public comment period on its NorthMet project. U.S. Federal rules require a minimum of a 45-day public comment period. As lead Agencies covering the state and federal aspects of any development, the Minnesota Department of Natural Resources and the U.S. Army Corps of Engineers have decided on a 90-day public comment period ending at 4:30 pm on February 3, 2010. PolyMet is confident that the duration of the public comment period will affect its expectation of a 6-9 month process to complete permitting for what will be one of the most important new mine developments in the U.S. for some years.
The local population is thought to be very much in favour of this and the other potential mining projects in the area. The decline of taconite mining in this part of Minnesota means that it has a very mining-aware population suffering very high unemployment levels - and perhaps importantly for the developers, there is a potentially highly-skilled available workforce.
PolyMet itself is a publicly-traded mine development company that controls 100% of the NorthMet copper-nickel-precious metals ore body through a long-term lease. It also owns the Erie Plant, a large originally taconite processing facility located approximately six miles from the orebody which would be converted to process the NorthMet ore making this part of the project a brownfields, rather than a greenfields, redevelopment. PolyMet has completed its definitive feasibility study and is thus seeking the necessary environmental and operating permits to enable it to commence production. The NorthMet project is expected to require approximately 1.5 million man hours of construction labour and create at least 400 long-term jobs, a level of activity which the company reckons will have a significant multiplier effect in the local economy.
The PolyMet project is surrounded by former and active mines on the eastern end of the Mesabi Iron Range. The proposed project will reuse much of the existing infrastructure at the brown field site. Ore will be transported from the open pit mine along existing rail track to the Erie Plant. The Erie Plant and existing infrastructure include large-scale crushing and grinding facilities, extensive tailings capacity that will be reused without disturbing additional land, an electrical substation, and water supply.
Local infrastructure includes power, road, rail, major equipment suppliers, and a large pool of skilled labour that lives in nearby towns. The University of Minnesota has independently estimated the total economic impact to be approximately $250 million a year.
As the pioneer on exploiting the Duluth Complex's mining potential, PolyMet has spent considerable sums not only on defining the orebody on its holdings, but also in metallurgical testwork on a complex ore material. The process was developed by PolyMet with SGS Lakefield laboratories in Canada to come up with a metallurgical flowsheet which will likely be followed by other producers as the various Duluth Complex projects move to production over the next few years - assuming all the necessary permits are forthcoming.
Coeur d'Alene Mines announced Wednesday a 40 percent increase in silver and gold reserves at its Palmarejo silver and gold mine in Chihuahua, Mexico, to a total of 88.6 million ounces of silver and 1.1 million ounces of gold.
The 25.8 million ounces of new silver reserves and 315,000 ounces of new gold reserves represent the initial underground ore reserves at the nearby Guadalupe deposit. Guadalupe is expected to begin contributing to Palmarejo's production in 2011.
In a news release, Don Birak, Coeur's senior vice president of exploration, said, "The Guadalupe vein system is now over 2.1 kilometers long and remains open along strike to the north and at depth. ...This area, along with other targets near Guadalupe, will continue to be the focus of our aggressive drilling program in 2010."
Palmarejo began production in March of this year. It is expected to produce 5.3 million ounces of silver and 72,000 ounces of gold in 2009.
Coeur anticipates beginning underground development of Guadalupe's reserves in 2010.
Ecuador's President Rafael Correa signed the mining law reform that could help IAMGOLD and other companies set the stage for gold, copper and silver production.
IAMGOLD says it is ready to resume activity at the Quimsacocha gold, silver and copper project. Once an authorization is received from the Ecuadorian government, a feasibility study and an environmental assessment are expected within 12 months.
Over a 7.5-year mine life, Quimsacocha is expected to produce 202,000 ounces of gold, one million ounces of silver and 9.3 million pounds of copper annually. IAMGOLD hopes to begin first production in 2012, the same time Correa said Ecuador will begin mineral exports.
IAMGOLD, Kinross Gold, and Corriente Resources have Ecuador's three largest mining projects. The new Mining Law signed recently stresses responsible mining and provides for taxation including a royalty rate of not less than five percent on gold production.
Kinross Gold said recently it has received authorization from the government of Ecuador to restart development of its Fruta del Norte gold project, which it put on hold last year when the country froze mining activity.
Ecuador said in March it planned to lift its ban on high-priority projects such as the 13.7-million-ounce Fruta deposit, and Kinross has been waiting for final approval to recommence exploration at the site.
The Toronto-based company said it will restart its drilling program shortly, with the aim of completing a prefeasiblity study in January 2010.
Kinross acquired the project last year when it bought Aurelian Resources for about C$870 million.
HudBay Minerals will consider taking on a joint venture partner to help finance construction of its Fenix nickel project in Guatemala, which could get the go-ahead by the middle of next year, the company's CEO said recently.
Speaking on a conference call to discuss the company's third-quarter results, Chief Executive Peter Jones said HudBay is currently working on a plan to develop a dedicated electricity source for the project in hopes of lowering its expected $1 billion price tag.
HudBay will update the market on the project early next year, and could make a decision on whether to proceed with construction around mid-2010.
"As we move forward we will ... look at various financing alternatives, including potential joint venture partners, offtake agreements and other strategic options that could make Fenix more attractive for HudBay," Jones said.
An offtake agreement is a long-term contract to sell processed ore to a specific customer.
HudBay is also working on community relations at Fenix, which have long been testy as locals have occupied large expanses of company land near Lake Izabal in Guatemala, claiming the land belonged to their ancestors. Violence has erupted at or around the property, and in September a man was killed.
Winnipeg, Manitoba-based HudBay acquired the project in mid-2008, but soon after it put the project on hold due to plunging nickel prices.
Bolivia plans to go it alone in developing the Salar de Uyuni lithium deposits with production predicted by government ministers for 2014, despite potential processing and logistical problems.
Bolivia, one of the poorest countries in Latin America, recently said it would invest up to $500 million to build a plant to produce lithium carbonate at Uyuni, believed to be one of the world's largest lithium deposits.
Bolivia has around 50 percent of the world's lithium, about 5.4 million tonnes, but it does not mine the metal—unlike neighboring Chile and Argentina, which also hold big reserves.
After negotiating with companies including France's Bollore, South Korea's LG, and Japan's Sumitomo and Mitsubishi Corp, Bolivia's leftist government decided to develop a lithium industry in Uyuni by itself because the firms did not offer to manufacture lithium batteries in the landlocked South American country.
"We know there are obstacles ... (but) we're optimistic we'll have a large lithium plant on target (by 2014)," Mining Minister Luis Alberto Echazu told reporters recently after a summit of lithium experts in La Paz.
Lithium carbonate is the main component of the rechargeable batteries that power portable electronic devices. Demand for the metal could soar if car makers raise production of hybrid cars or start large-scale manufacturing of electric vehicles.
According to the government, the plant will produce up to 30,000 tonnes of lithium carbonate a year, which represents around 30 percent of the current global supply.
Speaking at the same lithium summit in La Paz, the government's mining director, Freddy Beltran, told Reuters the government also will need to invest up to $500 million in the area to build roads, a natural gas pipeline and water and power infrastructure.
He said companies like Japan's Sumitomo and Mitsubishi, and South Korea's state-run Kores, are helping the government find the best way to extract lithium from Uyuni "free of charge," but will be the preferential buyers of Bolivia's lithium carbonate.
Silver Dragon Resources Inc. reported further encouraging results from the Dadi silver-lead-zinc polymetallic project in Inner Mongolia, Northern China, where owner Sanhe Sino Top Resources and Technologies Ltd - a 40 pct affillate of Silver Dragon - during recent drilling encountered 15 mineralised intervals of high grade material.
One of the intersections in hole ZK0401 returned 15.3 metres grading on average 914.8 grams per ton of silver, 7.58% lead and 9.11% zinc. The hole was completed to a depth of 446 metres and revealed significant silver, lead, and zinc mineralization, many of which are at greater depths, which may turn out to be new mineralized zones.
Drill hole ZK0401 is located at exploration line No. 4, the purpose of which was to detect dipping extensions of mineralised body No II, which had been revealed by near-surface tunnelling.
Silver Dragon will report more data from the ongoing drilling and tunnelling at Dadi as it becomes available.
Finders Resources Ltd released its quarterly report for the period ended September 30th and the statement highlighted a quarter in which the company raised a combined $21m through two separate fund raisings. Finders also made progress on its development of the Wetar Copper Project and the Ojolali Gold-Silver Project.
At the Wetar Copper Project in Indonesia optimization of the demonstration project is underway, during the quarter Finders has focused on improving leach and plant performance. The Wetar Copper Project, comprises of two high grade deposits Kali Kuning and Lerokis, according to Finders the deposits are suitable for open pit mining with a low waste:ore ratio. Across both the Kali Kuning and Lerokis deposits, the JORC resource statement reveals a total of 8.8 million tonnes grading 2.4% copper with contained copper of 218,000 tonnes. The Kali Kuning deposit has a measured resource of 5.2m tonnes grading 2.6% with contained copper of 133,000 tonnes, while Lerokis contains 2.1m tonnes grading 2.4% with contained copper of 51,000 tonnes.
The demonstration SX-EW (Solvent Extraction / ElectoWining) plant with 5 tonnes per day copper cathode capacity has been operational since February 2009 and is permitted to process 100,000 tonnes of ore from the Kali Kuning deposit.
During the quarter, the Definitive Feasibility Study (DFS), which is being conducted by Ausenco, became functionally complete and according to Finders, it confirms the validity of the project. The progress of the DFS relied on information generated from the demonstration plant. Additional test work was also undertaken at HRL's laboratories in Brisbane, which successfully added acid neutralisation capacity into the DFS.
According to Finders, the basic development philosophy encompasses three stages, each of which are subject to permitting and finance.
Under Stage 1, Finders will expand the demonstration plant up to 5,000 tonne per year, with the whole of this stage being contained within the environmental footprint of the previous gold mining operation. Through Stage 2, Finders will relocate and commission the ‘Whim Creek SX-EW plant' to add a further 18,500 tonnes per year cathode capacity to the project. Finally in Stage 3, Finders will establish haulage operations to transport ore from the Lerokis deposit to the leach pads at Kali Kuning to maintain a 23,000tpa copper cathode production from both SX-EW plants.
At the company's other project, the Ojolali Gold-Silver property, also in Indonesia, Finders intends to increase the oxide gold resource to +300,000 ounces of gold. The objective is to provide the basis for a low cost 30-50,000 ounce per year open pit mine based on the Jambi oxide resource. Following extensive surface trenching, results highlighted the potential for a significant expansion of the resource. During the period, a new major target area of high grade Au-Ag bearing quartz veins were defined at Way Neki, with channel samples up to 2m at 50 grams per tonne gold. A programme of 5,000m of RC and 1500m of diamond drilling is planned to test these targets.
Energy Resources LLC has requested Leighton Asia to expand the production capacity at its UHG Coal Mine in the South Gobi region of Mongolia. The contract adjustment will ramp up production rates from a current level of 2.5 million tonnes per year to 5 million tonnes per year by December 2010. Leighton Asia was awarded the mining contract for the UHG mine in February 2009 and coal production commenced in March 2009 with the first million tonnes of metallurgical coal loaded on transport in October 2009.
The UHG Mine is the first large scale coal mine in Mongolia developed and operated to international mining standards and practices. Coal from the mine is currently transported by road approximately 220 kilometres to the Chinese border for sale to China’s expanding steel industry. Energy Resources is currently developing a rail freight line to transport the coal to market at reduced costs and lower environmental impacts, and a five million tonnes per year capacity coal handling and processing plant (CHPP), first of its kind in Mongolia, to deliver value-added high quality premium hard coking coal. .
The ramp up in mine production will increase the value of Leighton Asia’s mining contract to A$480 million.
Marmota Energy Ltd recently revealed first exploration results from the Junction Dam uranium project in the mid north of South Australia prompting the company to suggest the greenfield discovery may be geologically analogous with the nearby Honeymoon uranium mine.
Marmota is earning 51% in the Junction Dam area from the regional exploration team of Teck Australia, subsidiary of Canada's Teck Cominco group, Platsearch NL and Eaglehawk Geological Consulting Pty Ltd.
Drilling completed last week showed three holes providing peak grades of more than 1,000 ppm U308, with the best returning 7,551 ppm.
Managing director Dom Calandro said another hole showed two large distinct peaks of above 1,000 ppm from the downhole gamma tool. The first peak indicated an equivalent grade of 1,095 ppm eU308 while the second showed an equivalent grade of 1,996 ppm.
This hole, he said, was about 500 metres south of hole JDRM115 detailed last week that gave a best result of 1,676 ppm eU308.
Calandro said these drill results are from what has been interpreted as Eyre Formation sediments that host the nearby Honeymoon uranium mine and the emerging Beverley Four Mile project, north of Junction Dam.
Exploration firm NunaMinerals has made a gold discovery on the southern tip of Greenland, the company said on Monday, lifting its shares sharply.
"Significant gold discoveries have been identified in two of five drilled targets in the Vagar exclusive license," Copenhagen-listed NunaMinerals A/S said in a statement.
The company said further investigation, including drilling and test mining would be needed to determine the grade and volume of the discoveries.
The discoveries were made on the north coast of the 300 square km Niaqornaarsuk peninsula, about 25 km north of the Nalunaq Gold Mine, it said. Nalunaq, where commercial mining began in 2004, is Greenland's first gold mine.
"It is encouraging that the two largest targets yield remarkably higher gold contents than the target at Kirkespirdalen where Nalunaq Gold Mine is situated," Chief Executive Ole Christiansen said in the statement.
In addition to gold, scheelite, which is a tungsten mineral, has also been found at the prospect, NunaMinerals said.
As a consequence of the discoveries, NunaMinerals has applied to enlarge the Vagar license to about 470 km2 from 287 km2, the Nuuk, Greenland-based company said.
Scotgold has discovered huge quantities of gold at Coconish in the Scottish village of Tyndrum and is pursuing planning permission to commence mining in the area.
The company, which has a small mine located close to Tyndrum that has never been commercially mined, says it is aware that the site contains 4.5t of gold worth £100m at the current gold price.
Scotgold says there could still be huge amounts of undiscovered gold in the Tyndrum area the company is not aware of, according to The Guardian.
The company has an exploration license that is applicable for a further 2,200km2 expanse of the Scottish Highlands. Scotgold has made a £2.5m investment in the venture. The company has set a target of annually generating 200kg of gold at the mine by 2011.
McIlvaine Company
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Tel: 847-784-0012; Fax: 847-784-0061
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