World Mining Exploration News

Research and Markets has announced the addition of the “Mining Industry – Global Strategic Business Report” report to their offering.
The global outlook series on the Mining Industry provides a collection of statistical anecdotes, market briefs, and concise summaries of research findings. The report provides a bird’s eye view of the industry, and highlights the implications boded by the consolidation wave, and rising mineral prices. The discussion on the global market is laced with 61 statistically rich, market data tables evaluating demand and consumption patterns by country/region and end-use applications, across market verticals such as, Platinum Group Elements, Bauxite and Alumina, Fluorspar, Feldspar and Nepheline Syenite, Copper, Lead, Manganese, Nickel, Cobalt, Zinc, Tin, Zirconium, Gold, and Iron Ore, among others. The reader also stands to gain an introductory prelude to regional markets such as the US, Canada, Armenia, Russia, Spain, Australia, China, India, Indonesia, the Philippines, Africa, Argentina, Bolivia, Brazil, Chile, Colombia, Ecuador and Peru. (more…)

FORTESCUE Metals Group has been forced to renegotiate iron ore delivery contracts with some struggling Chinese customers, as plunging steel prices push higher-cost mills to crisis point.

FMG has locked in shipping freight contracts for a little over half of its customers and has contracted to pass on those costs to customers in China.

But some mills have been stranded by tumbling shipping freight prices, which have fallen from a peak of $US50 ($A72) to as low as $US9.

China’s steel industry has been savaged by weak demand from residential construction companies and the financial crisis.
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Edmonton, Alberta CANADA, October 14, 2008 Mindoro Resources Ltd. is pleased to report results for a further 21 drill holes from the Agata North Nickel Laterite Project, Philippines. The limonite horizon averages 1.10 percent nickel, 0.12 percent cobalt and 46.04 percent iron over an average thickness of 3.18 meters. The underlying saprolite horizon averages 1.26 percent nickel over an average thickness of 7.83 meters. Grades and thicknesses are consistent with those previously reported and continue to be of potential economic interest.

The resource delineation drilling program was recently terminated at Agata North, with about 80 per cent of the mineralization drill-defined. Results of a further 80 drill holes are awaited. An updated NI 43-101 resource estimate will be released in November. Management believes that an adequate resource has now been defined in order to establish the optimal mining and processing concept, and on which to base an initial scoping study. (more…)

Cuervo Resources Inc. is pleased to release assay results from the next 8 diamond drill holes on the Huillque zone of mineralization on its wholly owned Cerro Ccopane iron ore project in southern Peru. The Huillque zone is the second of five known target zones to be drilled and is located 2.5 km to the north of the Orcopura zone; the Orcopura zone currently reports a Mineral Resource Estimate of 60.5 million tonnes “inferred”, grading 51.5% Fe. The Company continues to be impressed by the results from Huillque in comparsion to those from Orcopura.

Results from the Huillque zone appear to be very similar to those encountered in the Orcopura zone and include intersections of 49.10% Fe over 41.90 m in HDH – 07 and 53.66% Fe over 50.85 m in HDH – 12. The majority of the current drill holes were executed in a fan shape from a single platform to minimize environmental impact. Significant intersections that were sampled during the recent work program, location maps and further information for all drill holes can be found at (more…)

Coal stocks jumped off a cliff Thursday, placing a soot-covered exclamation mark on a gut-wrenching period for commodity stocks. For one hybrid iron ore and coal producer, the climb back up the cliff is now more likely to involve a major acquisition.

While hedge funds were reportedly unloading positions in droves yesterday amid this acute global credit crunch, one hedge fund sought permission to increase its stake in raw materials miner Cleveland-Cliffs (NYSE: CLF). Harbinger Capital Partners wanted shareholder approval to double its 15.6% stake in the company in order to block Cleveland’s proposed acquisition of coal miner Alpha Natural Resources (NYSE: ANR).

Harbinger considers Cleveland’s move to acquire Alpha Natural Resources a “profound strategic mistake,” suggesting that coal mining is a much riskier endeavor than Cleveland’s prior core business of iron ore mining. (more…)

The speculative end of the resources sector is being beaten up something shocking. Tales of woe abound, with just a sample of announcements on Friday showing the euphoria of the past five years has been replaced by the harsh new reality of crumbling commodity prices and the start of a prolonged equity funding drought.

Independence Group has pulled out of the Ravensthorpe nickel joint venture, leaving Traka to find a new big brother, while Advance Energy has deferred a planned options and placement issue.

Vital has reduced the pace of work at its Watershed tungsten project in Queensland, and Terramin has had to cope with the news that OZ Minerals wants out of their Menninnie lead/zinc project after spending $8 million.
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FOX Resources (FXR), which recently updated the market on its Mt Oscar project, has released assay results from further drilling at the iron ore operation.

The explorer said drilling in the Pilbara region of Western Australia was progressing as planned, with the helicopter-supported diamond drilling program completed. There are three drill holes on Anomaly 1 and four drill holes on Anomaly 2.

The holes at Anomaly 1 intersected strong magnetite mineralisation about 80m thick. Initial geological indications are that this mineralisation is less silicified than that encountered in drilling at Anomaly 2.

RC drilling of Mt Oscar is also under way, with six holes completed for 1133m. These holes were targeted at Anomaly 1, an exceptionally strong magnetic anomaly over banded iron formation (BIF).
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Baffinland Iron Mines Corporation announced today that it has signed a joint venture agreement (the “JV Agreement”) with the Nunavut Tunngavik Inc. (”NTI”) for the exploration and development of minerals within approximately 16,695 hectares of Inuit Owned Lands parcel PI-17 (the “Exploration Area”). The Exploration Area surrounds but excludes Baffinland’s existing Mining Leases, ML 2484 and 2485, which are wholly-owned by Baffinland.
Under the terms of the JV Agreement, Baffinland has the right to earn 100% interest in the Exploration Area if it enters into a production lease and prepares a Definitive Feasibility Study. Up to that point, Baffinland would design and fund all exploration work programs. Upon the completion of a Definitive Feasibility Study and entering into a production lease, the NTI has the option of forming a joint venture and hold a 28% participating interest in the production lease area. If the NTI decides not to participate, it would be reduced to a 13% net profits interest royalty. In addition, the NTI maintains a 12% net profits interest royalty (”NTI Basic Royalty”) that assumes a minimum 25% net profits interest from production. The NTI Basic Royalty is payable whether the NTI participates or is reduced to a net profits interest royalty, which is not subject to any minimum net profit. (more…)