Roadhouse Briefs

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Envirogold completes trial mining

Australian-based mineral resources company, EnviroGold has completed a trial mining exercise on its Las Lagunas gold tailings project in the Dominican Republic.

The company said the trial demonstrated ease of operations under dry conditions, and confirmed contractor’s pricing.

“It is exciting for the company to be nearing gold and silver production early next year in an environment of record bullion prices,” Envirogold executive chairman Brian Johnson said in the company’s ASX release.

“If current prices are maintained for the first two years of operations, profits over the two year period would be expected to increase from the previously estimated US$78 million to approximately US$104 million after tax and Government profit sharing, which would result in significant early cashflow for an emerging producer.”

Alchemy identifies new Hermes mineralisation

Alchemy Resources has received assay results from four out of five diamond core holes targeting four areas of mineralisation at the Hermes gold deposit, which is part of the company’s Gascoyne gold project.

Results include best intersections, applying 1.0 grams per tonne lower cut-off and maximum two metres of internal dilution, of:

8 metres at 24.75 grams per tonne gold from 126 metres;

4m at 16.47 g/t gold from 90m;

4m at 8.57 g/t gold from 136m;

1m at 7.17 g/t gold from 86m; and

1m at 5.74 g/t gold from 97m.

Alchemy said it was encouraged by the results as it considers them to indicated potential for depth extensions of the gold mineralisation and existing Indicated Mineral Resource of 1.68 million tonnes at 2.39 g/t gold for approximately 130,000 ounces at Hermes.

The company is currently conducting  a revised mineral resource estimate on Hermes, which will incorporate drilling undertaken by Alchemy during 2009 and 2010 and a more constrained geological model.

This re-estimation is scheduled for completion before the end of September.

Intra Energy commences mining at Mbalawala

Intra Energy Corporation announced that a Mining Licence has been issued to Tancoal Energy Limited over the initial mining area of the Mbalawala Mine at the Ngaka Coalfields in southwest Tanzania.

Tancoal is a Joint Venture between Intra (70%) and the National Development Corporation of Tanzania (30%).

Intra said coal mining is due to commence during August when land compensation has been finalised.

Mining will commence at the rate of 10,000 tonnes per month to meet sales contracts to local industry and production will increase as additional sales contracts are concluded.