Shares in Metallica Minerals Ltd rose more than 9% yesterday after the small miner revealed that it was a step closer to developing a multi-metal mine and processing operation in northern Queensland.
Metallica shares ended up 2.5c, or 9.2% at 29.5c after rising as high as 30.5 cents.
That’s close to the highest the shares have been for months.
That was after the company told the ASX that a scoping study had deemed its $132 million NORINCO nickel, cobalt and scandium project, northwest of Townsville, as economically and technically robust.
"The scoping studies will position Metallica for a decision to commence a full feasibility study early next year with a view to achieving first nickel-cobalt and scandium (Ni, Co, Sc) production from the Greenvale and nearby Lucknow deposits, starting 2013," Metallica’s Managing Director, Mr Andrew Gillies, said in yesterday’s statement to the ASX.
Metallica said it planned to be in production by 2013 and would run a full, bankable feasibility study from next year.
The company said it would mine the Greenvale and Lucknow deposits at the southern end of the project area initially.
Later, it would mine the Kokomo deposit north of the project area, managing director.
Processing during the first stage of the project, expected to last for 10 years, would be at a 180,000 tonne per annum heated agitated atmospheric acid leaching plant on the Greenvale nickel mine site.
The second stage is expected to be much larger, Mr Gillies said.
Scandium is a rare earth element used in aluminium alloys, fuel cells and lighting.
Thailand’s Banpu plc has extended by a week its offer period for shares in Australian miner Centennial Coal.
Banpu’s $2.45 billion off market bid for Centennial was launched in July, and has since been backed by the Centennial board and Banpu shareholders.
The cut-off date for the offer of $6.20 per Centennial share has been extended from September 27 to October 5, Banpu said yesterday.
Banpu said the extension meant that Centennial shareholders who already had accepted the offer may withdraw their acceptance by giving notice to Banpu within one month.
Banpu currently holds 36 per cent of Centennial shares.
Centennial operates nine coal mines, mainly in the Hunter Valley north of Sydney.
Centennial shares closed at $6.08 yesterday, unchanged on the day.
And Kiwi coal miner, Pike River Coal is seeking a short-term working capital facility to pay for the development of its West Coast coal mine in New Zealand.
The company told the ASX yesterday that a combination of proactive steps it had taken to sustain the rate of underground mine development would require the company to seek the facility.
Pike River chairman John Dow said in the statement that discussions with potential funders were at an advanced stage and the company expected to be able to advise an outcome by the end of this month.
While progress installing hydro-mining equipment had been good in the current quarter, capital costs had been higher than budgeted and installation had taken longer than expected, Mr Dow said.
"During the current quarter good progress has been made with the installation of hydro-mining equipment although capital costs have been higher than budgeted and installation has taken longer than expected," says Mr Dow.
"Pike River has also committed to the purchase of a second (previously unbudgeted) ABM20 continuous miner.
"The introduction of the first ABM20 in August has proved an unqualified success in driving production roadways and in achieving improved development rates and we look forward to taking delivery of the second machine ready for operation at the start of 2011.
"The increases in costs, and the delay in the receipt of revenues from the second coal shipment last week, have impacted short-term cash flow and led to the need for additional working capital."
Mr Dow said the mine’s hydro-mining equipment is now fully installed with commissioning and first extraction planned to start this week.
Pike River will review the progress of roadway development and hydro extraction over the coming weeks and incorporate the data into a review and updated forecast of annual production expectations.
Mr Dow said the company was now into a phase where future production rates could be forecast with more confidence.
The company did not say how much it was seeking.
Pike River shares closed off half a cent on the ASX at 83c.
