Black Ridge Mining expects "substantial progress" with China's Donghui Group
Black Ridge Mining (ASX: BRD) set sail for the new year, changing company type from a public company limited by shares to a public no liability company.
Completing an issue of 29,420,000 shares at an issue price of $0.01 each, the company raised $294,200 to fund ongoing exploration activities.
At E57/420 Unaly Hill in Western Australia, BRD announced the results of the diamond drilling program to the south of the tenement in which wide intervals of high grade magnetite, vanadium and titanium were identified.
The widest band of high grade mineralization was 117 metres between 170 and 287 metres down hole which produced an average of 34.56% Fe, 0.66% V2O5 and 9.56% TiO2.
Hole UH4 intersected multiple zones of high grade mineralization through to the down hole depth of 320 metres, at which time, it was decided to complete the hole, even though it was still in mineralization.
The 26 metres prior to completing the hole, still produced almost identical grades on average and further testing under a separate program, will determine the full depth of the ore body.
Of major importance, was the high grade nature of the material throughout including 42 intervals between 30 - 40% Fe, and more than 70 intervals above 40%, with 19 intervals above 50% Fe.
Donghui Group
BRD entered into an Exclusive Dealing Agreement in association with Quest Minerals Ltd (ASX: QNL), with the Chinese Donghui Group. The deal allowed the Donghui Group 120 days to conduct further studies and to determine whether it will participate in the future development of Unaly Hill under a joint venture or, similar arrangement with BRD.
The Donghui Group is one of the largest producers of coal and associated products in the mining and industrial Shanxi Province. It produces 2.7million tones of metallurgical coke per annum.
This has now been extended an additional period of 120 days to allow continuing evaluation of the latest drilling results and metallurgical testing to be completed, both locally and, in China.
Interestingly, the company expects substantial progress on these discussions in the next quarter.
In the quarter, the company entered into an Exclusive Dealing Agreement with Indonesian company PT.Inmas Abadi, in relation to their sub bituminous coal deposit in Bengkulu Province, on the island of Sumatra.
Under the agreement, the company has the exclusive right for a period of five months to conduct Due Diligence in respect of legal and geological documentation for the concession area.
The Bengkulu Province is one of the most significant coal producing regions in Indonesia and the market for sub bituminous coal is largely directed towards local power utilities with the Indonesian government being a primary market for producers.
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