Proactiveinvestors United Kingdom

Channel Description:

Latest Articles in this Channel:

12/08/10--00:59: Metminco appoints new MD and new Nomad (chan 1774327)

Metminco (LON:MNC, ASX:MNC) has announced the appointment of William Howe as managing director and of FTSE 100 specialist banking group Investec (LON:INVP) as nominated advisor and broker to the AIM market.

Metminco has also requested and was granted a trading halt on the Australian Securities Exchange pending the issue of a prospectus. It is expected that the ASX trading halt will end no later than 10 December 2010 when the company has lodged the prospectus.

The company said it will maintain its strong association with Daniel Stewart who will continue to act as its joint broker in the AIM market.

Metminco’s new managing director Howe founded Hampton Mining Limited, which is now wholly owned by Metminco.

Metminco has a portfolio of copper and gold projects in Peru and Chile.

The Los Calatos project in Peru has a JORC compliant resource of 926 million tonnes (Mt), consisting  of indicated resources of 111 Mt at 0.39% copper and 380 parts per million (ppm) molybdenum and inferred resources of 815 Mt at 0.37% copper and 260 ppm molybdenum.

The Chilean assets include a 50% interest in the Mollacas copper leach project with JORC compliant resources of 17 Mt and a 50% interest in the Vallecillo gold zinc project with JORC compliant resources of 10.1 million tonnes.




12/15/10--00:39: An exciting year in store as a fully-funded Metminco embarks on an ambitious drilling programme (chan 1774327)

As announcements go it was fairly low key. But for Metminco the regulatory news release of December 6 heralded a new and exciting phase in the company’s development. We speak to director Bill Etheridge about plans to drill and develop the company's potentially world class copper project in Peru and he tells us about the other hidden gems of the Metminco portfolio.




12/22/10--01:46: Metminco starts 50,000m drilling programme at Los Calatos copper-moly project (chan 1774327)

Metminco (LON:MNC, ASX:MNC) announced that a 50,000 metre drilling programme is now underway at the Los Calatos copper-molybdenum project in southern Peru.

The drilling programme is designed to infill and extend the current resources, as well as testing a number of new targets.

Los Calatos has an existing resource of 4.7 million tonnes of copper equivalent metal, or over 10 billion pounds of copper equivalent.

The work is being carried out by Metminco’s, now wholly-owned, subsidiary Hampton Mining.

Earlier this month, Metminco completed a deal to take full control of Hampton Mining’s South American assets. It concurrently completed a A$30 million fund raising, issuing 150 million new shares.

Los Calatos is located in south Peru, within a well known major copper porphyry belt. 

The project covers a total tenement area of around 214 square kilometres and there are three large mines and mining infrastructure nearby.

The project area hosts a large copper porphyry 'cluster', which covers around 68 square kilometres. So far eight exploration targets have been identified within this cluster. Hampton recently commissioned a comprehensive geophysics survey across the cluster.

 




01/26/11--04:53: Broker Spotlight: Daniel Stewart & Co names ‘Top Picks’ for 2011 (chan 1774327)

Many of us welcome January with nicotine patches, detox smoothies and fitness DVDs. On the stock market however it is a month of big predictions.

Unlike many resolutions that are broken in matter of days, London’s top analysts are sticking their necks out by naming some of the stocks that they think will deliver all the way through the year.

Daniel Stewart and Co has named its ‘Top Picks for 2011’ in a note to clients. 

The broker’s analyst team has picked out two favoured stocks in each of their core sectors: Metals & Mining; Oil & Gas; Healthcare; Telecoms & Technology; Leisure & Gaming; Financials.

Metals and mining analyst Martin Potts named two juniors Metminco (LON:MNC, ASX:MNC) and Peninsular Gold (LON:PGL) as his top picks for the year ahead. Richard Nolan believes that Gulf Keystone Petroleum (LON:GKP) and Chariot Oil & Gas (LON:CHAR) will be the best two stocks in the oil and gas sector.

In the healthcare sector Vadim Alexandre named Asterand (LON:ATD), a tissue-supply and contract research group, and stem-cell specialist ReNeuron (LON:RENE) as his top picks.

Telecoms and technology analyst Mike Jeremy reckons Globo (LON:GBO) and Avanti Communications (LON:AVN) will lead the way in his sector. Meanwhile PartyGaming (LON:PRTY) and Playtech (LON:PTEC) are Michael Campbell’s top picks in the Leisure & Gaming sector.

Simon Willis named NEOVIA (LON:NEO) and Planet Payment (LON:PPT, OTC:PLPM) as his top picks for the financial support services sector.

Metminco (LON:MNC, ASX:MNC) Target  price 40 pence (current price 24 pence)

Analyst Martin Potts is a big fan of the company’s Los Calatos copper-moly project in Peru. Setting a price target of 40 pence a share, he sees little or no downside from current levels (24 pence).  

“The company also has an interesting portfolio of other assets in Chile ranging from advanced development projects to grass-roots exploration,” Potts adds. “It is well funded and at current levels investors have an excellent opportunity to become involved, with little downside risk.”

Peninsular Gold (LON:PGL). Target Price 99 pence (current price 45.5 pence)

Martin Potts singled out the Malaysia-based junior gold producer. He reckons an upcoming expansion of the Raub gold mine, in Pahang state, and ongoing exploration will drive a strong rally for the stock.

“Peninsular Gold is a straightforward business with one operating asset at the Raub mine and significant exploration ready to unfold,” Potts adds. “We expect the stock to appreciate with the commissioning of the plant expansion and receipt of drilling results from the current campaign.”

The mining expert emphasised that his price target is almost double Peninsular’s current share price.

Gulf Keystone Petroleum (LON:GKP) Price target 200 pence (current price 172 pence) 

Analyst Richard Nolan says things are “coming together quite nicely” for GKP, which he rates a buy up to 200 pence a share (current price 172 pence). 

The year promises to be one full of landmarks for the Kurdistan-based oil company with a major drill programme in store. 

Crucial will be the data from Shaikan-2 towards the end of the second quarter, which should furnish the market with the crucial oil/water contact depth, and in turn provide a little more information on the true scale of GKP’s oil finds. 

“Operations and volumes should trump financials in the short to medium term and be the dominant driver for Gulf Keystone’s share price,” Nolan adds. “We do not expect Gulf Keystone to return to the capital markets until late 2011 at the earliest barring a significant change in operations1. As such, we see an expanded and fully funded work program de-risking an investment in the company.”

Chariot Oil & Gas (LON:CHAR). Target Price 291 pence (current price 233 pence)

The AIM-listed oil company has been exploring over 30,000 square kilometres of prospective grounds offshore Namibia, with some success.

Earlier this month it identified a 3.1 billion barrel ‘mega-structure’ in its Southern licence, taking the overall prospective resources on the acreage to 13.2 billion barrels.

Richard Nolan believes that Chariot’s ‘mega-structure’ will tease potential farm-in partners into Chariot’s key projects, which would be a clear catalyst for the stock.

“Announcing a deal with an international partner should underpin the value of the whole company,” Nolan said.

Asterand (LON:ADT). Target price 30 pence (from 21 pence)

Analyst Vadim Alexandre raised his price target on the stock to 30 pence a share from 21 pence (current price 16 pence). He sees particular value being generated by last year’s acquisition of BioSeek. 

“The collaboration model works well for BioSeek given the significant intellectual property portfolio the company has developed around the BioMAP system and database,” Alexandre says. 

Deriving the new valuation, he says the group should be valued at a minimum of two times 2011 forecast sales. The hope is that Asterand is able to build on the progress made during 2010, when it landed a prestigious and valuable five-year contract with America’s National Cancer Institute. 

The base award is valued at US$5.4 million over 17 months, with provisions for renewal at the NCI's option,” the analyst adds.  “Not only is this contract expected to push Asterand back well into profitability, but it also further demonstrates the group’s success at expanding its work with government institutions.”

ReNeuron (LON:RENE). Target price 13 pence (current price 6.9 pence)

The stem cell pioneer gets a big thumbs up from Alexandre, who rates the stock a buy all the way up to 13 pence a share. Recently, ReNeuron’s ReN001 injection was used to treat the first stroke patient in a study group of 12 with no apparent side-effects. 

The Daniel Stewart analyst said: “With its lead stem cell therapy now in the clinic, and with over £10m of cash on its balance sheet, the company is poised to continue delivering positive news flow in 2011.” 

Avanti Communications (LON:AVN). Target Price £25.25 (current price 621 pence)

One look at Mike Jeremy’s target for Avanti quickly shows just how bullish the analyst is. He clearly thinks that the AIM-listed stock will be shot into orbit, just like the Hylas broadband satellites.

Avanti’s first broadband satellite, Hylas 1, was finally launched in November after a number of delays and it is scheduled to start beaming high-speed internet to remote areas in April 2011. The growing telecoms group plans to launch at least another two satellites in the coming years.

“We expect demand for satellite broadband to be driven by continuing uneven remote area provision, but also by mobile capacity (backhaul) needs and institutional (government) requirements,” Jeremy said.

Globo (LON:GBO). Target Price 103 pence (current price 16.5 pence)

Mike Jeremy’s other top pick is mobile-device software firm Globo. 

The Greek software group has reinvented itself in recent years. After a complete change of direction developed the CitronGO! Software platform. It synchronises email, instant messaging, files and contacts across a number of different devices like PCs, Laptops and smart-phones.

“Globo’s CitronGO! mobile platform is now established with 13 Major Network Operator partnerships We estimate a 10 million potential user base by 2016, 5 percent of a 201 million subscriber base,” Jeremy said.

He adds: “We have revised our DCF-based valuation from 45 to 103 pence to reflect the huge potential contribution from CitronGO!” 

PartyGaming (LON:PRTY) Target price 295 pence (current price 192 pence)

The online gaming group is valued at 295 pence a share, giving more than 50 percent upside from the current share price. Analyst Michael Campbell reckons may struggle in the poker arena, where the likes of Full Tilt and Poker Stars are piling on the competitive pressure. 

However he reckons this will be more than offset by the performance of Party’s bingo and casino offering. 

Campbell adds: “Party’s merger with BWIN results in the largest online gambling business across a number of product verticals. It’s the largest European Poker business across Europe and occupies top spot in casino, whilst sharing the spoils with Betfair in the sports betting vertical, though Betfair's model  is distinctly different to the Party-BWIN model.”

PlayTech Target (LON:PTEC) Target price 541 pence (current price 395 pence) 

Campbell calls the company the “best of breed” in the business to business market for online gaming. And he reckons the company will benefit from the dash to regulation in countries such as Italy, Scandinavia and the US. 

Setting a 541 pence a share price target, the analyst adds: “We expect to see continued growth in online casino and bingo when Italy and France come online. This is further underpinned by opportunities in the Scandinavian and US markets. Regulation, M&A, new licensees and a move to the main list are all catalysts for the share price.”

Planet Payment (LON:PPT,OTC:PLPM). Target Price 120 pence (current price 94.5 pence)

Simon Willis reckons Planet Payment is set up well for 2011, after a string of deals with US payment processor Global Payments (NYSE:GPN) and the lifting of the Visa moratorium on new business in October

“These two factors, together with a strong flow of new merchant acquisitions in Q4, set the group up well for 2011,” Willis said. 

“In addition, a flow of corporate activity in the sector last year, which saw Visa and MasterCard, as well as several private equity houses, acquire similar businesses suggests the 2011 EV/EBITDA (10x) looks cheap.”

Planet Payment’s multi-currency processing service helps retailers and other merchants perform transactions with international cardholders in the cardholder’s home currency. 

NEOVIA (LON:NEO). Target Price 80 pence (current price 64 pence)

NEOVIA is what is known as an alternative payments business, essentially it operates a number of services which facilitate secure online payment processing. It operates the NETELLER online payment business and it recently acquired US firm Optimal Payments.

Simon Willis reckons the acquisition is a big plus for the AIM-listed stock.

“The acquisition of Optimal Payments by NEOVIA is a transformational deal which achieves four of the group's five strategic objectives,” Willis said.

 




03/07/11--01:08: Metminco to join Australia’s S&P/ASX 300 index (chan 1774327)

Metminco (LON:MNC, ASX:MNC) will join Australia’s S&P/ASX 300 index effective 18 March 2011, seeking “stronger institutional investment support and wider investor recognition for our six assets in Chile and Peru”.

The S&P/ASX 300, which provides up to an additional 100 small cap stocks to the S&P/ASX 200, is designed to address investment managers' needs to benchmark against a portfolio characterized by sufficient size and liquidity.

Metminco, which is also listed on the AIM market of the London Stock Exchange (LSE), has a portfolio of copper and gold projects in Peru and Chile.

The Los Calatos project located in southern Peru has JORC compliant resources of 926 million tonnes, comprising indicated resources of 111 million tonnes at 0.39 percent copper and 380 parts per million (ppm) molybdenum and inferred resources of 815 million tonnes at 0.37 percent copper and 260 ppm molybdenum.

The Chilean assets include a 50% interest in the Mollacas copper leach project with JORC compliant resources of 17 million tonnes consisting of indicated resources of 7.2 million tonnes at 0.56 percent copper and inferred resources of 9.8 million tonnes at 0.52 percent copper.

The company also holds a 50 percent interest in the Vallecillo gold zinc project with JORC compliant resources of 10.1 million tonnes consisting of Indicated Resources of 7.9 million tonnes grading 1.14 grammes per tonne (g/t) gold, 11.4 g/t silver; 1.32% zinc, 0.29 percent lead and Inferred Resources of 2.2 million tonnes at 0.78 g/t gold, 8.2 g/t silver, 0.58% zinc and 0.26% lead.

Late last year, Metminco announced that a 50,000 metre drilling programme was underway at Los Calatos with an aim to infill and extend the current resources, as well as test a number of new targets.

Prior to that the company completed a deal to take full control of Hampton Mining’s South American assets and raised A$30 million via a share issue.




03/16/11--02:04: Metminco choice of new chairman applauded as Fillmore resigns (chan 1774327)

John Fillmore, the founding chairman of Metminco (LON:MNC, ASX:MNC), has resigned to devote more time to new mining exploration ventures and to focus on his growing Melbourne legal practice. He will be replaced by Antonio Ortuzar, a Chilean lawyer and a “respected figure in the global resources sector”. 

 

 




03/31/11--05:08: Metminco’s Fillmore reflects on a year of substantial achievement (chan 1774327)

Metminco (LON:MNC, ASX:MNC) chairman John Fillmore said that 2010 was a year of substantial achievement, in which it has built on its decision to focus on South America.

“During the year Metminco transformed from being a company focused on Australian exploration projects with limited potential to a company with a controlling interest in a portfolio of high potential assets located in Peru and Chile,” Fillmore said.

Initially it acquired a 69.4 percent stake in Hampton Mining – this was subsequently increased to 72.6 percent, and it agreed to buy the whole company. Also it raised A$24.5 million and joined London’s AIM market in April 2010.

With the acquisition Metminco took control of the world class Los Calatos copper and molybdenum porphyry deposit located in southern Peru, as well as the two projects in Chile - the Mollacas copper leach project and the Vallecillo gold-zinc project.

Since then it has focused much of its attention on Los Calatos. A 10,000 metre drilling program helped increase the project’s estimated resources from 1.6 million tonnes of copper equivalent to over 4.7 million tonnes of copper equivalent -  over 10 billion pounds (lbs) of copper equivalent.

Fillmore highlights that the group has also identified 8 high level targets at Los Calatos, within a “Porphyry Cluster”.

Meanwhile at Mollacas it is working on detailed metallurgical tests with the aim to complete a detailed feasibility study, and possibly start copper cathode production in 2013.

At Vallecillo preliminary metallurgical test work indicates a gold recovery on site of more than 90 percent into Dore bullion and recovery of more than 90 zinc into a concentrate averaging more than 50 percent zinc, Fillmore highlighted.

“I am confident that the company will continue to meet its goals and grow its resource base,” Fillmore said.

In the six months ended 31 December 2010 Metminco made a $11.34 million loss.




04/06/11--04:42: Metminco is 'Elephant Hunting' says Investec, initiates coverage with a 'buy' (chan 1774327)

Metminco (LON:MNC) received a boost today as Investec started coverage of the miner with a buy recommendation and 31 pence a share price target - it currently trades at 24 pence.

In a note entitled 'Elephant Hunting', analyst Hunter Hillcoat, focused mainly on the potential of Los Colatos, the company's flagship asset in Peru.

Metminco has already defined a resource of 926 million tonnes, though as Hillcoat pointed out, Colatas has the potential to be a world class project. 

Of the A$30 million it raised towards the end of last year the majority will go into a drilling campaign at Calatos.

Around A$10 million is being earmarked for a 50,000 metre programme, which it is hoped will at least double the size of asset, likely to be followed by a second round of the same order of magnitude.

The project occurs in a major copper porphyry belt in far south Peru. 

It is located in desert, near the coast (around only 70 kilometres inland) and near power and water, so it is very well located for possible development.

The tenements total 214 square kilometres and are home to a large copper porphyry cluster, with at least eight different exploration targets identified by surface mapping and geochemical sampling.

And it is in an incredible neighbourhood geologically  with three major copper mines in the vicinity - Cerro Verde, Cuajone and Toquepala.

Investec’s Hillcoat said: “In our view, given the opportunity to expand this resource, the general scale of the alteration system in which it occurs and the abundance of follow up targets, Metminco will continue to expand the resource base, with the possibility that it will develop into a true world class porphyry cluster system, such as found in Escondida.”

Most of Metminco’s current valuation is accounted for by Calatos. But there is a lot more besides this monster project.

A potential fire-cracker is Camaron, the company’s gold property in Chile.

The company has collated some “very good” sampling results from Camaron, but hasn’t until now had the funds to drill the area. 

It does now and will spend around A$1 million starting next year on a modest programme.

It  also has a half share Mollacas and Vallecillo, two copper-gold projects in Chile.

The latter has a lot of potential with a resource of more than 700,000 ounces of gold equivalent and seven untested exploration targets: four polymetallic, two comprising a copper-gold porphyry, and one gold.

However, the company’s partner in both projects, Chilean company MN, isn’t in a ready position to contribute financially.

“We look forward to ongoing exploration newsflow, as well as progress on the early development assets (Mollacas and Vallecillo) and the possibility of a simplification of the asset ownership structure,” Hillcoat said.

 




04/28/11--01:42: Metminco announces landmark financing deals (chan 1774327)

The South America focused copper and gold explorer unveiled a fundraising in two separate transactions and revealed that Barrick Gold has surrendered the buyback rights to the company’s potentially world class Los Calatos copper-molybdenum project in Southern Peru.




05/20/11--06:22: Singer Capital Markets gives Metminco seal of approval as broker starts covering firm (chan 1774327)

Analyst Charlie Long at broker Singer Capital Markets reckons miner Metminco (LON:MNC, ASX:MNC) is a good prospect and recommends investors start building a position.

The City broker, which recently visited the site, started coverage on the firm, which is mainly focused on copper, with a "buy" rating and a target price of 33 pence (current price 24.50p).

"We think there is good reason for Metminco to outperform over the medium (12m months) and longer term, and recommend investors start building a position here.

"Management own 18 percent of the company, have never sold shares and we believe they will continue to add value as the existing portfolio is developed and new projects ar acquired," he said in a note to clients.

The broker said its "buy" case was based on the firm's ability to find and/or acquire new properties and develop them into large economic mining projects - underpinned by the value of the firm's flagship copper project -  Los Calatos in Peru.

Metminco has six projects in Chile and one in Peru. Los Calatos in Peru is at an early stage of exploration and already has an estimate of 4.7 mio/t contained copper equivalent, which Singer reckons will be added to.

Based on the current in-ground value of copper, this would be worth approximately US$500m, representing 85 percent of the current market capitalisation.

There are also several very exciting projects at various stages in Chile, added the broker.

Long said Vallecillo was probably the company's "most exciting" Chilean project with a 700Koz resource of gold and base metals at V1 which Long thinks will be expanded and mined. V6 provides blue sky potential with copper oxide and Cu-Au porphyry targets.

Metminco recently raised around US$30mln in a placing and can now complete nearly 100km of drilling at Los Calatos and to undertake scout drilling at Vallecillo (copper-gold project, Chile) and Camaron (gold property, Chile), and to progress with the feasibility studies at Mollacas, added the broker.

It thinks at least three of the assets (Los Calatos, Mollacas, Vallecillo) have the potential to be world class.

Singer added that Metminco was well placed to deliver on its development strategy because of its skilled management team.

"Metminco will add to resources at Los Calatos and Vallecillo but also discover new large metal deposits from properties either recently pegged or yet to be acquired. These discoveries should drive the share price upwards and limit the downside in the event of a market sell-off," said Long.




06/03/11--03:33: Tim Read at Metminco says its copper project has the potential to be a “very big” asset (chan 1774327)

Tim Read, Non Executive Director at Metminco (LON:MCN ASX:MCN) tells Proactive Investors that there’s little doubt that their main mine at Los Calatos is a very large and a very deep copper resource. Before then, the Mollacas project is forecast to produce 30mln lbs of copper a year with income of around $45mln a year of cash flow, returning capital in 15-months.


06/10/11--07:42: Metminco share fall unreasonable - analyst (chan 1774327)

The election of left-wing Ollanta Humala as president in Peru has unreasonably spooked investors and brought miner Metminco's (LON:MNC, ASX:MNC)) share price down around 14 per cent since last Friday, says analyst Charlie Long at Singer Capital Markets.

In a research note, he says the main fear was Humala's proposal for a windfall tax on mining profits but the broker believes that any new tax regime will be "less onerous" than is feared.

Now is an excellent time for investors to pick up the stock of the copper-focused firm and rates it a "buy" with a target price of 33 pence (current price: 19.5 pence), he added.

Humala replaces Alan Garcia and is 94th president of the South American country. He will serve for five years.

Long says Humala has pledged to govern by consensus and consult mining firms on any proposed tax change and says the broker thinks that onerously high taxes are an unlikely outcome.

He adds that mining windfall taxes have a reputation for not lasting and emphasised that presidential terms are restricted to five years, so even if Humala introduced a tax, it is very possible that it would be changed or scrapped before mining starts at the firm's flagship project "Los Calatos".

He also said Peru's sign-up to several trade agreements meant if it introduced unacceptably high new taxes it would risk legal action from foreign-owned miners and pressure from US and other governments.

Metminco has six projects in Chile and one in Peru. Los Calatos in Peru is at an early stage of exploration and already has an estimate of 4.7 mio/t contained copper equivalent.

Also, Long points out that Humala has pledged to end the environmental conflicts, which were a big issue under Garcia, who is blamed for rapid expanion at the detriment of the environment and indigenous people.

"Interestingly, if Humala gives more power to local anti-mine groups, Los Calatos could benefit from being a project with low environmental and social risk. Los Calatos is located in an uninhabited area with no history of Indian populations, 50km from the nearest town and where there are no rivers to pollute. Furthermore, the land is owned by the government which removes land ownership and access issues."




07/03/11--23:39: Metminco confirms that Los Calatos is a ‘classic major porphyry system’ (chan 1774327)

The group acquired the project last year and it has quickly become its flagship asset. A 50,000 metre drill programme began in December 2010. Metminco has encountered significant intercepts of mineralisation through this programme so far.




07/04/11--04:00: Metminco’s Los Calatos fast becoming globally important copper discovery, says Singer Capital (chan 1774327)

Metminco acquired the project last year and it has quickly become its flagship asset. This morning it revealed drill results that show the Los Calatos porphyry system is much larger than previously thought.




07/05/11--02:29: Metminco drilling results “encouraging”, says Investec (chan 1774327)

Yesterday’s drilling results from Metminco (LON:MNC, ASX:MNC) are “encouraging” according to the South America-focused miner’s house broker Investec.

In a research note released today, the broker wrote that “while political outcomes in Peru remain uncertain, MNC is progressing with what it can control, namely the current drill [programme] at Los Calatos”.

Investec highlighted that some “excellent intersections” have been reported “particularly at depth” as the geological model continues to evolve with a further 15 holes – amounting to 23,000 metres of drilling – planned for the next phase of drilling.

In particular, the broker noted some very highly-mineralised intersections, including CD-31 with 1,340 metres at 0.64 percent copper and 0.036 percent molybdenum and CD-27 with almost 800 metres at 0.5 percent copper and 0.029 percent molybdenum.

Investec said the best interpretation of the geological model is a section that “illustrates a broadening of mineralisation with depth, with grades remaining very good at depth”. Here, the bottom 475 metres of CD-31 carried 0.52 percent copper and 0.051 percent molybdenum, while the bottom 628 metres of CD-27 carried 628 metres at 0.50 percent copper and 0.021 percent molybdenum.

The broker added that the new drill results adjacent to this section “look less enticing”, although it acknowledged that “there is not yet enough drill information to extrapolate”. However, Investec said it is worth noting that 700 metres away, the bottom 215 metres of CD-28 carried 0.57 percent copper and 0.009 percent molybdenum, illustrating the extent of the system.

Investec concluded: “The new drilling has extended the mineralised zone with MNC indicating potential for a substantial increase in the resource volume (our back of envelope numbers suggest a near fourfold increase in the volume, based on the new lateral and depth extents)."




07/07/11--23:28: Metminco moves to buy La Piedra project in Chile (chan 1774327)

Metminco (LON:MNC,ASX:MNC) has entered an agreement to buy 100 percent of the La Piedra copper,gold,moly project in Chile, it emerged today.

The company said the option agreement for the project in the V region is with Alfonso Bianchini Frost and provides Metminco time to evaluate the prospectivity of the area until it expires on 30 June 2015.

The agreement includes the following payments: US$350,000 on signing, US$350,000 per year in advance for 2 years to 30 June 2013, US$1 million on or before 30 June 2014.

It also requires US$28 million in cash, or US$14 million in cash and US$14 million in Metminco shares (at Metminco´s election), on or before 30 June 2015, if the company chooses to buy 100 percent of the La Piedra tenements.

The AIM and ASX-listed company plans to complete a surface mapping and sampling program by the end of the fourth quarter of this year, as well as a surface geophysical survey before beginning drilling to gauge copper and moly anomalies.

The La Piedra tenements cover 60.5 sq km and are 75 km from the capital Santiago and around 35 km from two copper mines owned by Anglo American (LON:AAL) (Los Bronces) and Codelco (Andina).

Los Bronces and Andina produced 221,400 and 209,727 tonnes of copper in concentrate and cathode respectively in 2010. Both mines also produce significant amounts of molybdenum.

Metminco may choose to terminate the option agreement at any time before 30 June 2015.




07/10/11--23:22: Metminco: Los Calatos designated "Project of National Interest" by government (chan 1774327)

Metminco's (LON:MNC,ASX:MNC) main project -  Los Calatos - in Peru has been designated a "Project of National Interest" by the country's government.

The firm believes the move will assist it in obtaining relevant surface rights across the copper and moly project in southern Peru.

Metminco's subsidiary - Minera CN SAC - can now acquire surface title for the tenements on state-owned lands directly from the government - as opposed to by a public auction.

"This designation only applies in circumstances where the project's feasibility and economic benefit for the country can be demonstrated to the Peruvian government," said Metminco.

Los Calatos project is found in desert near the coast at a height of around 2800-3000 metres. It is 80km southeast of the city of Arequipa, or around 300km by road.

The  port of Ilo lies around 100km south of the project.

The company is currently carrying out a 50,000m diamond drill program designed to infill and extend the current resources at Los Calatos which contain around 4.7 million tonnes of copper equivalent(at a cut-off grade of 0.2 percent Cu and CuEq in-situ assuming a ratio of Mo/Cu prices of 5), or over 10 billion CuEq pounds.

The drilling will also test a number of new targets identified by surface geochemical sampling.

Meanwhile in Chile, the firm has begun a drilling program of 16,000 metres of RC drilling and 12,000 metres of diamond drilling at the Mollacas, Vallecillo and Camaron projects - expected to be finished by the end of the year.

The drilling at Vallecillo and Camaron will be preceded by IP and ground magnetic geophysical surveys to help refine drill targets.

Last week the company revealed it had entered an agreement to buy 100 percent of the La Piedra copper,gold,moly project in Chile.

The option agreement for the project in the V region of the country provides Metminco time to evaluate the prospectivity of the area until it expires on 30 June 2015, it had said.




07/26/11--00:57: Metminco on track for updated resource estimate for Los Calatos by end 2012 (chan 1774327)

Metminco (LON:MNC,ASX:MNC) said today it remained on track to complete an updated mineral resource estimate for its flagship Los Calatos project in Peru by the end of 2012.

The firm said it will then commission a pre-feasibility study for the project.

The news came as the AIM-listed company released a report of its activities for the quarter ended June 30 this year, including its purchase of 50 percent of SCM Ovalle.

The purchase now means the company owns a 100 percent of three projects - the Mollacas copper leach project, the Vallecillo Au-Zn project and the Loica Cu-Mo deposit in Chile.

Metminco also highlighted its important acquisition of Barrick Gold's potential "buy back right" for the Los Calatos project meaning that the risk of the gold giant buying a 51 percent stake in the project for significantly lower than a resources based market value has now been removed.

Also featured was the company's A$30.4 million capital raising and that a 16,000 metre RC and 12,000 metre diamond drilling program at Mollacas, Vallecillo and Camaron in Chile are to be completed in 2011.

An agreement to purchase all of the La Piedra copper, gold, moly project in Chile was sealed in July this year, added the company.

Deep drilling at Los Calatos had confirmed the classic porphyry system and hit some significant interections including 798 metres with 0.50 percent copper and 288 ppm (parts per million) moly, including 406m with 0.65 percent copper and 442 ppm moly.

The firm will now focus on completing 23,000 metres of drilling to test the full strike length of the area of interest.

"On completion of these drill holes the company expects to be in a position to commence an in-fill drill program of the mineralised system with a view to completing an updated mineral resource estimate for Los Calatos by the end of 2012," it said.




08/22/11--01:10: Metminco’s drilling campaign at Los Calatos project indicates significant mineralisation (chan 1774327)

Metminco (LON:MNC) said drilling at its wholly owned Los Calatos copper/molybdenum project in Peru has indicated the existence of significant mineralization close to surface, which could enhance early cash flows from future development of the project.

The drilling programme has also confirmed that mineralization at Los Calatos extends to at least 1,700 metres below surface.

In the meantime, Metminco has begun a drilling programme at the Mollacas copper project in Chile to provide ore for further testwork and additional information for the final resource estimate.

Metminco noted that all of its current drilling activities are fully funded from its cash reserves. The company had A$31.5 million in the bank as at 30 June.

Investors cheered the update, sending shares in Metminco up 6 percent to trade at 13 pence in early deals, giving it a market cap of £190 million.

The presence of significant mineralisation at Los Calatos was indicated by hole CD 31. The hole intersected 1,690 metres grading 0.60 percent copper and 3.46 parts per million (ppm) molybdenum including an interval of 255 metres at 1.68 percent copper and 310 ppm moly.

Another hole drilled at the project, CD 27, intersected 1,037 metres grading 0.42 percent copper and 226 ppm moly.

These two holes are part of an extensive drilling campaign, which should assess the full extent of the porphyry system at Los Calatos.

Five drill rigs are currently operating on site, with a further drill rig being requested in order to speed up completion of the phase 3 drill programme. Twelve holes have been completed, four are currently being drilled and a further 9 holes are planned.

The phase 3 programme is expected to complete by the end of the year.

Once the current programme is completed, the company will begin an in-fill drilling campaign to update the mineral resource estimate for Los Calatos during 2012, which will be followed by a pre-feasibility study.

Metminco has also provided an update from its Mollacas project in Chile, where it has just started a drilling programme consisting of 2,000 metres of reverse circulation (RC) drilling and 3,000 metres of diamond drilling.




09/13/11--02:27: Metminco reports healthy cash balance as first half losses unchanged (chan 1774327)

Metminco Ltd (LON:MNC, ASX:MNC) gave investors an outlook on planned activities on its projects as it reported results for the first half to end-June 2011, which showed losses practically unchanged from a year earlier.

The pretax loss came to US$5.27 million, against US$5.3 million in the previous first half.  Cash and cash equivalents stood at US$31.4 million at the end of June.

At Los Calatos in Peru, infill drilling is currently in progress, and once this is completed, Metminco expects to be in a position to complete an updated mineral resource estimate scheduled for completion during 2012, and thereafter commission a pre-feasibility study on the project.
 
Los Calatos has a JORC compliant resource of 926 million tonnes, comprising indicated resources of 111 million tonnes at 0.39 percent copper and 380 parts per million molybdenum, and an inferred resource of 815 million tonnes at 0.37 percent Cu and 260 ppm Mo - at a 0.2 percent copper cut-off grade.

Among its other projects, which are in Chile, at the Mollacas copper project, Metminco commenced a drilling program in late June 2011. The program comprises 3,000 metres of diamond drilling to provide data for conversion of mineral resources at Mollacas to measured and indicated status.
 
Two drill rigs are currently operating at Mollacas with a third scheduled to commence during September 2011.  Metallurgical testwork will provide information for leaching and solvent extraction/electrowinning design, and will refine copper recoveries and provide more accurate estimates of operating and capital costs.

In addition, reverse circulation drilling of 12 holes for 2,000 metres will be undertaken to provide clearance for infrastructure development and for hydrogeological and hydrological studies. Base line environmental studies have also commenced.  The group is currently buying land adjacent to the deposit in preparation for the future development of the project.

Mollacas has a JORC compliant resource of 17 million tonnes consisting of indicated resources of 7.2 million tonnes at 0.56 percent Cu and inferred resources of 9.8 million tonnes at 0.52 percent Cu at a 0.2 percent cut-off grade.

At the Vallecillo polymetallic project, Metminco has scheduled a geophysical survey comprising induced polarisation, resistivity and ground magnetics to assist in refining targets which are to be drilled during the last quarter of 2011.

Vallecillo currently has a JORC compliant resource of 10.1 million tonnes consisting of indicated resources of 7.9 million tonnes at 1.14 g/t Au, 11.4 g/t silver, 1.32 percent zinc and  0.29 percent lead; and an inferred resource of 2.2 million tonnes at 0.78 g/t Au; 8.2 g/t Ag; 0.58 percent Zn; 0.26 percent Pb, all at a cut-off grade of 0.3 g/t Au.

Metminco has also scheduled a geophysical survey over portions of the Camaron gold/ copper/molybdenum project with a view to refining targets which are to be drilled during the last quarter of 2011.

The company has entered into an option agreement to purchase a 100 percent interest in the La Piedra project, approximately 75 kilometres to the northeast of Santiago de Chile. 

Metminco plans to complete a surface mapping and sampling program as well as a surface geophysical survey by the end of the last quarter of 2011, prior to initiating a drilling program to evaluate identified copper and molybdenum anomalies.

At Isidro, north of the Camaron project, surface geochemical sampling by the company has indicated extensive strong copper-gold anomalism.  Future exploration will comprise regional reconnaissance, prospect scale mapping and geochemical sampling assisted by satellite imagery to define drill targets. A maiden drilling program is scheduled to commence in 2012.

Metminco believes the Loica project warrants further exploration, after drilling in 2007 intersected signifi cant widths of low grade copper-molybdenum mineralisation.  It plans mapping, geochemical sampling and geophysical surveys of as a prelude to possible further drill testing.

Finally, reconnaissance exploration activities are being planned for areas currently held under application over the Caldera in the Arica, and Jaspe in the Antofagasta area of northern Chile.




09/26/11--00:23: Metminco making good progress on Chilean copper and gold projects (chan 1774327)

Metminco Ltd (LON:MNC, ASX:MNC) reported good progress on its projects in Chile, where it is untertaking 16,000 metres of reverse circulation drilling and 12,000 metres of diamond drilling at the Mollacas, Vallecillo, Camaron and La Piedra projects.

The programmes were commissioned in June 2011 and are expected to be completed during first quarter of 2012.

At the Mollacas open pit copper leach project, it completed 24 diamond drill (DD) holes for 2,250 metres to provide information for an updated JORC resource estimate, expected to be completed by December 2011, and additional metallurgical testwork.

Condemnation drilling in areas to be affected by future leach pads, process and mine infrastructure and waste dumps comprising 1,158 metres of RC drilling in 14 drill holes was completed as part of the same program.  Also known as sterilization drilling, this work is aimed at ensuring there are no valuable minerals in an area where infrastructure is planned to be built.

A feasibility study for Mollocas is expected to be completed by mid-2012.

At Vallecillo project, 6,000 metres of DD drilling has now commenced at the La Colorada deposit for resource definition purposes, and 3,000 metres of DD drilling to test gold-lead geochemical targets.  This will form the basis of a scoping study to be to be completed on La Colorado and the surrounding polymetallic targets during 2012.

A further 4,000 metres of RC drilling has been initiated to test two geochemical anomalies in the northwest of the Vallecillo project area.

Results from a magnetic and induced polarisation geophysical survey are expected shortly.

Metminco has a portfolio of copper and gold projects in Peru and Chile. 

Los Calatos in Peru has a JORC compliant resource of 926 million tonnes, comprising indicated resources of 111 million tonnes at 0.39 percent copper and 380 parts per million molybdenum, and an inferred resource of 815 million tonnes at 0.37 percent Cu and 260 ppm Mo - at a 0.2 percent copper cut-off grade.

Mollacas has a JORC compliant resource of 17 million tonnes consisting of indicated resources of 7.2 million tonnes at 0.56 percent Cu and inferred resources of 9.8 million tonnes at 0.52 percent Cu at a 0.2 percent cut-off grade.

Vallecillo currently has a JORC compliant resource of 10.1 million tonnes consisting of indicated resources of 7.9 million tonnes at 1.14 g/t Au, 11.4 g/t silver, 1.32 percent zinc and  0.29 percent lead; and an inferred resource of 2.2 million tonnes at 0.78 g/t Au; 8.2 g/t Ag; 0.58 percent Zn; 0.26 percent Pb, all at a cut-off grade of 0.3 g/t Au.




10/18/11--23:36: Metminco drilling at Los Calatos in Peru confirms copper/moly project as ‘world class’ (chan 1774327)

Metminco (LON:MNC, ASX:MNC) has intersected mineralisation from surface to vertical depths of about 2,000 metres from drilling at Los Calatos copper/molybdenum project in Peru, confirming it as world class.

Highlights of the latest assay results include 1,158 metres at 0.33 percent copper and 165 parts per million (ppm) molybdenum from 56 metres, 1,242 metres at 0.32 percent copper and 269 ppm molybdenum from 333 metres and 607 metres at 0.49 percent  copper and 170 ppm molybdenum, including 112 metres at 0.78 percent copper and 338 ppm molybdenum from 328 metres.

These holes form part of the current Phase 3 drill program, which is designed to define the outer limits of the mineralised porphyry system at Los Calatos and is expected to be completed by the end of 2011, the company said in a statement.

Los Calatos currently has a JORC compliant resource of 926 million tonnes, comprising indicated resources of 111 million tonnes at 0.39 percent copper and 380 ppm molybdenum and an inferred resource of 815 million tonnes at 0.37 percent copper and 260 ppm molybdenum - at a 0.2 percent copper cut-off grade.

Five drill rigs are currently operating on site, with a further drill rig being requested in order to expedite the completion of the Phase 3 drill program.

On completion of these drill holes, Metminco expects to be in a position to commence an in-fill drill program of the mineralized porphyry system, to be completed by the end of 2012.

Following the infill drill program Metminco will commission a prefeasibility study on the Los Calatos project.

Metminco's current drilling programs at the Los Calatos, Mollacas, Vallecillo, Camaron and La Piedra projects are fully funded from existing cash reserves.

Metminco had A$31.5 million cash as at June 30 2011.

Regarding its Chilean operations, Metminco has completed a drilling program comprising 1,154 metres of reverse circulation drilling and 2,250 metres of diamond drilling at the Mollacas open pit copper leach project to provide information for an updated JORC resource estimate, expected to be completed by December 2011, and additional metallurgical testwork.

A feasibility study for Mollocas is expected to be completed by mid-2012.

Mollacas has a JORC compliant resource of 17 million tonnes consisting of indicated resources of 7.2 million tonnes at 0.56 percent Cu and inferred resources of 9.8 million tonnes at 0.52 percent Cu at a 0.2 percent cut-off grade.

At the Vallecillo project, 6,000 metres of DD drilling has now commenced at the La Colorada deposit for resource definition purposes, and 3,000 metres of DD drilling to test gold-lead geochemical targets.  This will form the basis of a scoping study to be to be completed on La Colorado and the surrounding polymetallic targets during 2012.

A further 4,000 metres of RC drilling has been initiated to test two geochemical anomalies in the northwest of the Vallecillo project area.

Vallecillo currently has a JORC compliant resource of 10.1 million tonnes consisting of indicated resources of 7.9 million tonnes at 1.14 g/t Gold, 11.4 g/t silver, 1.32 percent zinc and 0.29 percent lead; and an inferred resource of 2.2 million tonnes at 0.78 g/t Au; 8.2 g/t Ag; 0.58 percent Zn; 0.26 percent Pb, all at a cut-off grade of 0.3 g/t Au.




10/31/11--05:14: Metminco says current drill programmes are fully funded (chan 1774327)

South America focused Metminco's (LON:MNC, ASX:MNC) current drill programmes are all fully funded from existing cash reserves, said the firm, as it released a report of activities for the three months to September 30.

On that date, the firm had reserves of A$ 26.5 million, it told investors today, as it provided details of its work at the Los Calatos, Vallecillo, Camaron and La Piedra projects - due to be completed in the first quarter of next year.

Recent results from the Los Calatos copper/moly project in Peru confirmed it as "world class" with intersections carrying mineralisation from surface to more than 1,700 metres, the company noted.

Highlights included 1,158 metres with 0.33 percent copper and 165 parts per million (ppm) molybdenum from 56 metres and 1,242 metres at 0.32 percent copper and 269 ppm molybdenum from 333 metres.

Los Calatos currently hosts a JORC compliant resource of 926 million tonnes, comprising indicated resources of 111 million tonnes at 0.39 percent copper and 380 ppm molybdenum and an inferred resource of 815 million tonnes at 0.37 percent copper and 260 ppm molybdenum - at a 0.2 percent copper cut-off grade.

Running through the highlights of the September quarter, the company noted that Los Calatos had been declared a "Project of National Interest" by the Peruvian government, which will help the firm increase its land holding for development.

At Mollacas in Chile, the diamond and RC drilling programmes totalling 3,404 metres have been finished enabling the completion of metallurgical test work and a final resource estimate.

At the Vallecillo project, 13,000 metres of drilling is now underway to upgrade the existing resource at La Colorada, test the adjoining polymetallic targets and assess the copper- gold porphyry target, added the firm.

Metminco also told investors that when drilling at Vallecillo has been finished, 10,000 metres of RC drilling is planned for the Camaron and La Piedra projects - to be finished by the end of Q1 2012.

Broker Cannacord Genuity maintains its 'speculative buy' rating on the stock and left its 12 month price target of 39 pence unchanged (current share price: 14.13 pence).

Regarding the latest results from Los Calatos, it said they suggested that previous holes to the north and south of the deposit confirmed strike extensions previously seen in the results in July and August this year.




11/24/11--00:08: Metminco share trading halted on the ASX ahead of possible fundraising (chan 1774327)

Trading of shares in the copper explorer Metminco (LON:MNC, ASX:MNC) was halted overnight in Australia ahead of a possible fundraising.

Trading will resume on November 28 “when the company will be in a position to provide an announcement to the market”, it added. No further details were given.

Metminco’s flagship project is Los Calatos in Peru, which, according to analysts, is fast becoming a globally important copper project.

Certainly the ‘nearology’ is encouraging as it is located along the copper porphyry belt in far south of the country with three major mines in the vicinity - Cerro Verde, Cuajone and Toquepala.

It is around 70 kilometres inland and near power and water, so it is very well positioned for possible development.

The tenements total 214 square kilometres and are home to a large copper porphyry cluster, with at least eight different exploration targets identified by surface mapping and geochemical sampling.




11/24/11--01:43: Metminco confirms plans for US$50 mln cash call (chan 1774327)

The cash is being earmarked for next year’s drill programme on the Los Calatos project. It will also be spent on the ongoing development of the Mollacas and Vallecillo projects.




11/24/11--04:48: Metminco chief executive "delighted" with institutional backing for cash call (chan 1774327)

The success of the placing and open offer serves to underscore the potential of Metminco’s Los Calatos asset, which is one of the largest single copper deposits currently owned by a junior.




11/25/11--04:52: Metminco closes US$40 million institutional placing (chan 1774327)

Metminco (LON:MNC, ASX:MNC) this afternoon confirmed that it has now closed its US$40 million share placing.

It will issue over 285 million new shares to institutional investors at a price of 8.8p each.

The company also plans to raise a further US$10 million through a one-for-twenty rights issue, also priced at 8.8p.

"We are delighted to have successfully concluded this fundraise in very challenging market conditions,” said chief executive William Howe.

“We are encouraged by the strong support of not only our existing shareholders but also an excellent group of blue chip international institutional investors. 

“Completion of this placing will ensure we are fully funded to deliver our 2012 work programme and make significant progress in delineating the world class Los Calatos porphyry system and position ourselves to bring Mollacas towards near term production as planned."

The institutional placing comprises two tranches. It is expected that the first tranche, of 211 million shares, will be admitted to the AIM market on December 1 2011. The second admission is expected to take place in January, following a shareholder vote.

The new capital is being earmarked for next year’s drill programme on the company’s Los Calatos project in Southern Peru. 

This work is expected to provide data for two new JORC resource updates. 

The firm is also going to spend money on the ongoing development of the Mollacas and Vallecillo projects in Chile.




12/02/11--01:45: Quadra deal with Sumitomo could offer Metminco the key to unlocking the value of Los Calatos (chan 1774327)

The recent deal between TSX-listed miner Quadra FNX Mining and Japanese giant Sumitomo underlines the intense interest in South American copper at the moment. It possibly also serves as a blue-print for other deals in the sector – one in which an ambitious explorer is able to finance a world class project without giving away too much of the upside.




01/16/12--00:32: Metminco completes infill drilling ahead of Mollacas copper resource upgrade (chan 1774327)

Metminco (LON:MNC, ASX:MNC) said the latest drilling results from its 100 per cent owned Mollacas copper leach project in Chile confirms the continuity of the copper oxide and enriched supergene zones.

The group has now received all assay data for drill holes MD 61 to MD 84, which completes the infill drilling phase of the project in advance of completing a final resource estimate, conducting confirmatory metallurgical testwork and commissioning a feasibility study.

The infill drilling results will allow Metminco to convert current resources into JORC-compliant measured and indicated categories, as well as to define the outer limits of the oxide and supergene mineralisation.  

The current JORC-compliant resource for Mollacas comprises 17 million tonnes, consisting of indicated resources of 7.2 million tonnes at 0.56 per cent copper and inferred resources of 9.8 million tonnes at 0.52 per cent copper.

A final resource estimate based on the in-fill drilling results is expected in the first quarter 2012.  Metminco has started a further metallurgical testwork program in order to allow the optimal design of the plant and leach circuit. 

It is also close to finalising the environmental base line study for the project and has completed the purchase of land and water rights for its development.

It expects to complete the application to the Chilean authorities for a development licence in the fourth quarter 2012.

Oriel Securities commented on the latest Metminco update.  It believes that if the resource update turns out positive for Mollacas, the company is likely to seek funding of at least US$56 million for developing the project. 

The broker pointed out that current capex cost assumptions, average operating cash costs and production of 13,500 tonnes copper cathode are based on a 2008 scoping study, which could be a little light given industry-wide cost inflation over the past few years.

“Nonetheless, followers of Metminco will  know that the company has a number of significant copper and copper-gold  porphyry deposits in Chile and Peru, including the world class Los Calatos  molybdenum-copper project that are the main prize,” Oriel added.




01/31/12--02:48: Metminco fully funded for 2012 work programme (chan 1774327)

Metminco (LON:MNC, ASX:MNC) told investors it has enough cash in the bank to fund the busy 2012 work programme, which will see the mining company advance all of its key projects.

Investors welcomed the news, sending shares in Metminco up 10 percent to trade at 12.5 pence at 10:30 am today, valuing the company at £218.7 million.

Following a placing to raise A$40 million in November, Metminco had A$54 million in the bank at January 6, the firm revealed in today’s quarterly report.

The programme planned for the current year will include further drilling at the Los Calatos copper-moly project in Peru, the detailed pre-feasibility study and pre-development work at Mollacas and the pre-feasibility study at Vallecillo following the completion of drilling programmes at both projects.

Late last year, Metminco completed the Phase 3 drilling programme at the Los Calatos project in Peru to delineate the extent of the mineralisation at the project.

The Phase 4 programme has already started and Metminco currently has eight rigs operating at Los Calatos with more than 10,000 metres of the 100,000 metre programme having been completed to date.

The mineralisation at Los Calatos remains open to the southeast and southwest.

The first part of the Phase 4 drilling programme will be completed during the second quarter of 2012, followed by a further resource estimate by mid-2012.

The second phase will involve 70,000 metres of diamond drilling, which will be completed by the end of the year and will be followed by another resource estimate in early 2013.

At the Mollacas project in Chile, infill drilling confirmed copper grades of 1.01 percent.

Metminco has also completed the drilling programme at the Valecillo project in Chile with initial drill hole results confirming grades of up to 1.66 grammes per tonne (g/t) gold and 1.56 percent zinc with the company due to report further assay results.

The company is also preparing to start drilling the La Piedra project in February. This will be followed by drilling at the Camaron project, which is located north of Vallecillo.