Anglesey Mining (LON:AYM) was the sector's biggest riser after it entered into agreements giving it the right to acquire a controlling interest in the Grangesberg iron project in Sweden.

The Grangesberg iron ore mine is situated in the mineral-rich Bergslagen district of central Swedenabout 200 kilometres north-west of Stockholm.

Until its closure in 1989 due to prevailing market conditions, the Grangesberg mine was the third largest iron ore mine in Sweden, next only to the Kiruna and Malmberget mines in the north of Sweden, with in excess of 150 million tonnes of iron ore mined down to around 500 metres deep.

Prior indications are that at least 115 million tonnes of iron ore containing around 40% iron remain for exploitation at Grängesberg. The homogenous iron ore body in Grängesberg is of significant size and of the Kiruna geological type, making it well suited for cost-effective production of attractive iron ore products.

Anglesey has purchased for US$145,000 a direct 6% interest in Grangesberg Iron AB, a private Swedish company that was founded in 2007 with the target of re-opening the historic iron ore mine in Grangesberg and which, in conjunction with the Anglesey investment and with Anglesey assistance, has recently completed a financial and capital restructuring.

GIAB holds a 25 year exploitation permit covering the previously mined Grangesberg underground mining operations granted by the Swedish Mining Inspectorate in May 2013.

At the same time Anglesey has negotiated a 12 month evaluation option to acquire 51% of the enlarged share capital of GIAB for the issue of new ordinary shares of Anglesey.

Anglesey has also entered into shareholder and cooperation agreements such that during the term of the option Anglesey holds management control and operatorship of GIAB and will appoint three out of five directors to the board of GIAB including the Chairman.

The remaining 43% of GIAB is held by Roslagen Resources AB, a Swedish private company, which has led the re-development of the Grangesberg iron project since 2007. Roslagen will appoint two directors to the board of GIAB and provide experienced local executive management.

As part of the agreements and reorganisation an outstanding loan in GIAB in the principal amount of US$3.5 million due to KII Holdings Limited, a Cypriot company has been renegotiated and is now repayable by the end of 2016.

At the same time, Eurang Limited, a UK private company, has agreed to invest $1.75 million, of which $1.25 million has been invested in GIAB, for new shares representing the 51% shareholding interest in GIAB.

This has been carried out through a new wholly owned special purpose Swedish company, Eurmag AB over which, during the term of the option, Anglesey will hold management and control rights. The additional $500,000 will be used to cover transaction costs and expenses and certain outstanding liabilities.

Upon the exercise of the option, which will be entirely at Anglesey's discretion, Anglesey will acquire all of the shares of Eurang Limited by the issue of new shares of Anglesey to the value of $1.75 million, to be priced at the average of the Anglesey share price at the date of option (3.375p) and the 20 day average share price prior to date of exercise, (but at no lower than 3.375p), and thereby acquire direct ownership and control of the 51% shareholding in GIAB, and thus increase Anglesey's direct interest in GIAB to 57%.

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Alba Mineral Resources (LON:ALBA) has raised ã60,000 through a subscription of 24,000,000 new ordinary shares at 0.25p apiece. The company has also agreed to grant the subscribers warrants to subscribe for further ordinary shares on the basis of one ordinary share for every two new ordinary shares subscribed. These placing terms are the same as the terms of the placing announced on 4 March by which the Company raised ã230,718 (before expenses).

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Ariana Resources (LON:AAU) has announced the definition of drilling targets on two separate gold-silver prospects, Kizilcukur and Karakavak, within the Kiziltepe sector of the Red Rabbit project area which it holds in a joint venture with Proccea Construction.

Highlights:

- Exceptional grades from recent in-fill composite rock-chip sampling at Kizilcukur: 32.4g/t Au + 144g/t Ag, 8.6g/t Au + 115g/t Ag and 5.4g/t Au + 259g/t Ag.

- Composite rock-chip sampling at Karakavak yielded previously reported grades of up to 20.8g/t Au + 34g/t Ag, 8.9g/t Au and 4.0g/t Au + 3g/t Ag.

- 2,000m reverse circulation drilling programme prepared for the Kizilcukur and Karakavak prospects.

- Necessary forestry permits for drilling Kizilcukur and Karakavak already secured.

- Significant scope to define new high-grade open-pittable resources at both locations and further enhance the project economics of the entire Red Rabbit gold-silver project.

Managing director Dr. Kerim Sener said: "With development of Red Rabbit's initial mine at Kiziltepe continuing at pace, where first production is targeted during H1 2015, the Ariana exploration team was recently tasked with advanced planning for a drilling programme at two satellite prospects with the objective of delineating further resource ounces.

"With both prospects being located less than 25km from the initial mine, both Karakavak and Kizilcukur represent high priority targets for drilling and underpin Red Rabbit's significant potential to host multiple open pit mines within truckable distance to the planned processing plant.

"Follow-up surface sampling programmes were conducted at the Kizilcukur and Karakavak prospects in order to refine drilling targets for resource definition. These sampling programmes have returned some exceptional results that highlight the prospectivity of these prospect areas.

"Both prospects show excellent potential to add to the resource base of the Kiziltepe Sector, and with this in mind, the company is preparing for a drilling programme at both sites, which we are planning to initiate in Q3 2014."

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Minco (LON:MIO) booked a Q1 consolidated net loss of $271,000, from income of $223,000 a year earlier, the latter resulting primarily from a foreign exchange gain of $404,000.

Administrative expenses (excluding foreign exchange) for the three month period ended March 31, 2014 amounted to $292,000 compared to $224,000 in the first quarter of 2013, with the increase arising from increased corporate activity and expanded operations.

At March 31, 2014, Minco held $8,867,000 in cash and cash equivalents and had a working capital surplus of $8,417,000, compared to a working capital surplus of $9,739,000 at December 31, 2013, and is adequately financed to meet its planned programs and business objectives.

During the three month period ended March 31, 2014, Minco invested $1,017,000 in exploration and development expenditures. At March 31, 2014, Minco held mineral properties with a book value of $12,329,000.

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Red Rock Resources (LON:RRR), the mining and exploration company with gold interests in Kenya, Colombia and Ivory Coast, has announced the results of a preliminary technical and economic assessment on the Nyanza deposit of the Migori Project in SW Kenya.

It currently has 15% direct and 32.27% indirect interest and options at Nyanza.

This study represents the first stage of a Bankable Feasibility Study ("BFS") for the Nyanza deposit. Upon completion of the full BFS, Red Rock will acquire a 60% direct interest in the project.

Over the projected life of the mine revenue from gold sales of $95m have been estimated.

The capital costs of $3m should be recoverable within the first six months of operation.

Chairman, Andrew Bell, commented: "The results of this technical assessment indicate that the Nyanza pit is a potentially robust project and we will continue to work on cost optimisation as we continue our studies.

"RRR will proceed with its objectives of upgrading and expanding existing mineral resources at Nyanza in parallel with further feasibility phases as well as continuing greenfield exploration.

"The development of this project to the mining stage continues to be our focus to increase total project value."

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Leyshon Resources (LON:LRL) has announced the completion of a study into pumped storage hydro power generation at Mt Leyshon.

The high level study is part of broader strategic review which includes assessing the reprocessing of the mill scats and the historical exploration data.

The concept involves generating near-instantaneous electrical power and supplying it into the grid at times of peak power demand by releasing water from the existing upper reservoir through a hydro generation plant. The upper reservoir is refilled from the existing open pit during periods of off-peak prices.

The Australian Energy Market Operator forecasts that new generation capacity will be required in Queensland by 2020 in order to maintain supply reliability within the National Electricity Market Reliability Standard. Under a high growth scenario, this requirement for new capacity may be as early as 2017.

The optimal project sizing based on the physical reservoir characteristics is estimated to be around 40 megawatts (MW). The existing power line infrastructure connected to the site supports a project of up to 20MW and with modest upgrades may support up to 40MW.

The unit cost of production for a 20-40MW PSH plant at the Mt Leyshon site compares favourably to the cost of a larger-scale open-cycle gas turbine project, the assumed next best alternative for providing fast-start peak to intermediate generation capacity (i.e. a capacity factor of up to 30-40%).

Whilst the study demonstrated positive project economics, further work will be required in areas including water chemistry, capital and operating cost estimates, networks, engineering, and regulatory.

The report recommended identifying a strategic partner to assist with managing market risk and underpinning the commercial viability of the project by securing either a medium to long-term off-take with an electricity retailer or major energy user, or a medium to long-term network support contract with the local network service provider







At 3:56pm:

(LON:AAU) Ariana Resources PLC share price was 0p at 0.85p

(LON:ALBA) Alba Mineral Resources PLC share price was 0p at 0.25p

(LON:AMI) African Minerals Ltd share price was +3.13p at 109.38p

(LON:AQP) Aquarius Platinum Ltd share price was +0.38p at 24.88p

(LON:AYM) Anglesey Mining PLC share price was +0.5p at 4p

(LON:BEM) Beowulf Mining PLC share price was +0.43p at 4.68p

(LON:BKY) Berkeley Resources Ltd share price was 0p at 14.5p

(LON:CEY) Centamin PLC share price was +0.55p at 61.25p

(LON:CHL) Churchill Mining PLC share price was 0p at 17.75p

(LON:CZA) Coal of Africa Ltd share price was +0.02p at 3.93p

(LON:FDI) Firestone Diamonds PLC share price was 0p at 4p

(LON:FRES) Fresnillo PLC share price was +13p at 834.5p

(LON:GEMD) Gem Diamonds Ltd share price was 0p at 156.5p

(LON:HOC) Hochschild Mining PLC share price was +3p at 152p

(LON:KMR) Kenmare Resources PLC share price was +0.13p at 10.38p

(LON:MIO) Minco PLC share price was -0.02p at 1.93p

(LON:RRR) Red Rock Resources PLC share price was -0.01p at 0.23p

(LON:VED) Vedanta Resources PLC share price was +26.5p at 1123.5p