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Gold/Mining/Energy : Gold and Silver Juniors, Mid-tiers and Producers -- Ignore unavailable to you. Want to Upgrade?

To: LoneClone who wrote (30870)	1/25/2007 9:54:09 AM
From: LoneClone	Respond to of 78419

Lonmin Reveals New Platinum Finds in Canada By Charlotte Mathews 24 Jan 2007 at 07:43 AM EST resourceinvestor.com JOHANNESBURG (Business Day) -- Platinum producer Lonmin [LSE:LMI], whose only producing mines are in South Africa, has discovered new zones of platinum group mineralisation at two properties in Canada’s Sudbury Basin, which it was exploring in joint ventures with CVRD-Inco [NYSE:RIO; TSX:N], it said yesterday. South Africa is the world’s biggest known source of platinum. Lonmin’s two operations at Marikana near Rustenburg and Limpopo near Polokwane make it the world’s third-largest producer. But it is also exploring for platinum group metals (PGMs) in Canada, Tanzania and Gabon. In Canada, Lonmin has joint ventures with both CVRD Inco and Wallbridge on 13 properties around the Sudbury Basin. Most of the PGMs produced in Canada are byproducts of nickel mining but it is still the largest source of PGMs after South Africa’s Bushveld complex and Norilsk-Talnakh in Siberia. Lonmin said the joint ventures had been targeting new deposits where high grades of platinum group metals are associated with low levels of copper-nickel sulphides. “This type of PGM mineralisation might have been overlooked in the past when exploration was geared to more massive sulphide nickel targets and we believe that there is further potential to discover similar mineralisation,” Lonmin chief strategic officer Ian Farmer said. A new zone of this type of mineralisation was found on the Capre property, which extends from 150 metres to 300 metres with a strike length of 100 metres. On the Denison property, the partners have identified an extension to an already-known zone and a new narrow zone. The extended zone now runs from 370 metres below surface to 550 metres with a strike length of 100m and the new zone has been intersected at depths of 300-400 metres. In the latest Lonmin annual report, the company states that the C1 cost per PGM ounce sold from the Marikana operations amounted to R2,441 ($337.41) for 2006 and the company was targeting C1 costs for fiscal 2007 for Marikana of around R2,450-R2,500 ($338.73-$345.72) per PGM ounce sold. The company expects to produce 1.02 million to 1.04 million ounces of platinum in concentrate from Marikana and Limpopo for the year, while sales are expected to be between 980,000 ounces and one million ounces. The company is targeting production of 1.3 million ounces per year by 2010. Lonmin’s shares rose 3% to an intraday high of £29.92 after the announcement before returning to previous levels of £29.68.