Companies: AGLD    CZA   

In a buoyant coal market, South Africa-focused Coal of Africa has upgraded potential resources at Vele in Limpopo Province 25 per cent to 441.47 million tonnes.

The company, quoted on AIM and the Australian and Johannesburg stock exchanges, says a 65-borehole drilling programme has led to the upgrade of soft coking coal resources at Vele. The measured element in the new resource estimate is 133.84 million tonnes, most of it open-cast, with indicated, inferred and ‘reconnaissance’ resources taking the total to 441.47 million tonnes.

Meanwhile, AIM-quoted Allied Gold claims a ‘spectacular’ gold intercept at Pigiput Ridge in Papua New Guinea (PNG). Based in Western Australia, Allied, which has already poured gold from its Samberi exploration licence area in PNG, says the latest drilling of seven holes at Pigiput Ridge within the area has encountered 16 metres at 15.11 grammes of gold per tonne of ore and three metres at 8.6 grammes a tonne, along with 25 metres at a more mundane 3.89 grammes a tonne.

The company, which says it intends to hoist expected annual production from Simberi to 135,000 oz, is in line for funding of up to £9 million over eight years to develop the project from mining giant Barrick Gold, which would receive 70 per cent of Simberi in return.