Fox-Davies Capital Tuesday Energy and Mining News Wrap

Gasol (GAS) has now assumed the position of African Gas Development Corporation Ltd in Sonaf G.E. S.A. Sonaf was created as a joint-venture to develop and monetise gas from the Zafiro Development Area for supply to the domestic and export markets.

Emerald Energy (EEN) has completed the Gigante-2 well in Colombia at a total depth of 15,630 feet. A production liner is being run in preparation for testing operations. Gigante-2 was planned as a development well for the Tetuan reservoir but also as a test of the deeper Caballos formation. Difficult open hole conditions have curtailed wireline logging operations and despite hydrocarbon shows, oil has not been proven present in the latter.

Venture Production (VPC) has agreed to acquire the 1.8% shareholding in Nogat B.V. from Lundin Petroleum B.V. for €9m in cash. Nogat is an infrastructure owner in the Netherlands and through its shareholding Venture will benefit from improved economics of some of its field development projects.

Dwyka Resources (DWY) announce that they have reached agreement on the terms of a recommended all share offer by Dwyka to acquire the entire issued and to be issued share capital of Minerva. Under the offer, Minerva shareholders will receive 1 Dwyka share for every 5 existing shares in Minerva. Based on a Closing Price per Dwyka Share of 5.88p on 22 June 2009, the Offer values the entire issued share capital of Minerva at approximately £1.8 million and each Minerva Share at approximately 1.2p, representing a premium of approximately 71.4% to the Closing Price of 0.7p per Minerva Share on 29 January 2009 (being the last business day prior to the suspension from trading on AIM of the Minerva Shares). Full acceptance of the Offer will result in the issue of up to 30,858,891 New Dwyka Shares, representing approximately 13.9% of the Enlarged Share Capital being held by existing Minerva Shareholders.

Arian Silver Corporation (AGQ) announces the results of a Preliminary Economic Assessment ("PEA") for its San Jose Project in Zacatecas State, Mexico. The PEA, undertaken by A.C.A. Howe International Limited ("Howe"), reviewed the economics of entering into contract mining and toll milling on three silver blocks with lead and zinc credits.

Howe concluded that Arian's approach and mining plan is achievable and realistic with up to four years of contracted mechanized mining, with concurrent exploration and development on the rest of the property.
The mine would operate 250 days per year at 500 tonnes per day ("tpd") and produce an average of approximately 125,000 tonnes per year ("tpy") using three selected mining blocks.

Mining and milling of approximately 500,000 tonnes of resources is estimated to recover approximately 2.15 million ozs of silver, 1,800 tonnes of lead and 3,100 tonnes of zinc at operating cash costs of US$32.00 per tonne

The Project net present value stands at US$13.44 million based on an 8% discount rate, with and internal rate of return of 159%.

Patagonia Gold (PGD) reports a drilling update on its Cap-Oeste gold-silver project in Argentina. Highlights include 2m @10.38g/t gold and 846g/t silver from 33m and 1.3m @ 13.5g/t gold and 180g/t silver from 323m.

Kirkland Lake Gold (KGI) announces an update on exploration drilling testing part of the South Mine Complex. Drill hole 53-1279 assayed 23.75 ounces of gold per ton (opt) uncut (3.60 opt cut) over a true width of 14.0 feet on the New South Zone, and included: 15.89 opt (uncut) over a true width of 0.9 feet, 17.96 opt (uncut) over a true width of 1.8 feet, 27.93 opt (uncut) over a true width of 0.9 feet, and 192.50 opt (uncut) over a true width of 1.3 feet.

Three other drill holes, located 70 to 80 feet from hole 53-1279, returned high grade mineralization on the New South Zone including: 1.98 opt (cut) over a true width of 4.8 feet (hole 53-1218), 3.25 opt uncut or 2.25 opt cut over a true width of 7.7 feet (hole 53-1223) and 1.96 opt uncut or 1.46 opt cut over a true width of 9.7 feet (hole 53-1278).

http://www.proactiveinvestors.co.uk