Monday 27 August 2012

Minnesota and London

Geology of Minnesota
See also: List of lakes in Minnesota and List of Minnesota rivers

Tilted beds of the Middle PrecambrianThompson Formation in Jay Cooke State Park
Minnesota contains some of the oldest rocks found on earth, gneissessome 3.6 billion years old, or 80% as old as the planet.About 2.7 billion years ago, basaltic lava poured out of cracks in the floor of the primordial ocean; the remains of this volcanic rock formed the Canadian Shield in northeast Minnesota. The roots of these volcanic mountains and the action of Precambrian seas formed theIron Range of northern Minnesota. Following a period of volcanism 1.1 billion years ago, Minnesota's geological activity has been more subdued, with no volcanism or mountain formation, but with repeated incursions of the sea, which left behind multiple strata of sedimentary rock.

In more recent times, massive ice sheets at least one kilometer thick ravaged the landscape of the state and sculpted its current terrain. The Wisconsin glaciation left 12,000 years ago. These glaciers covered all of Minnesota except the far southeast, an area characterized by steep hills and streams that cut into the bedrock. This area is known as the Driftless Zone for its absence of glacial drift. Much of the remainder of the state outside of the northeast has 50 feet (15 m) or more of glacial till left behind as the last glaciers retreated. GiganticLake Agassiz formed in the northwest 13,000 years ago. Its bed created the fertile Red River valley, and its outflow,glacial River Warren, carved the valley of the Minnesota River. Minnesota is geologically quiet today; it experiences earthquakes infrequently, and most of them are minor.


Palisade Head on Lake Superior formed from a Precambrian rhyolitic lava flow.

The state's high point is Eagle Mountain at 2,301 feet (701 m), which is only 13 miles (21 km) away from the low of 601 feet (183 m) at the shore of Lake Superior. Notwithstanding dramatic local differences in elevation, much of the state is a gently rolling peneplain.

Two major drainage divides meet in the northeastern part of Minnesota in rural Hibbing, forming a triple watershed.Precipitation can follow the Mississippi River south to the Gulf of Mexico, the Saint Lawrence Seaway east to the Atlantic Ocean, or the Hudson Bay watershed to the Arctic Ocean.

Sunday 26 August 2012

STRATEGIC EXPANSION – IRON ORE JOINT VENTURE IN CHINA



London Mining is pleased to announce that, further to its press release made on 22 August 2008, it has now entered into a conditional subscription agreement with Wits Basin Precious Minerals Inc ("Wits Basin") to become a joint venture partner for its iron ore projects in the People’s Republic of China ("PRC"). Under the subscription agreement it has agreed to subscribe USD 39.25 million for 50% of the shares in the joint  venture company, China Global Mining Resources (BVI) Limited ("CGMR BVI"). It has also agreed to make a loan of USD 5.75 million to Wits Basin. The subscription and loan will be funded from London Mining's existing cash resources.

CGMR BVI has entered into certain escrow arrangements in the PRC in respect of the acquisition of two Chinese companies: Xiaonanshan Mining Co limited ("XNS") and Nanjing Sudan Mining Co limited ("Sudan"). The two companies operate iron ore mining and processing operations near Maanshan in the Anhui and Jiangsu Provinces in the PRC. It is a condition of completion of the acquisitions that CGMR will also be granted the right to acquire a further iron ore mining company, Maanshan Zhaoyuan Mining Co Ltd ("Matang"), which is owned by the sellers of XNS and Sudan. Cost reduction and expansion of the existing operations (targeting a run rate of 1.2mtpa production capacity during 2011), combined with a more focused marketing strategy are expected to ensure operating margins remain strong despite the near term outlook for lower commodity prices. The close proximity to local steel mills of the mines enables premium pricing due to the low transportation costs.
The completion of the subscription agreement with Wits Basin and the acquisition of XNS and Sudan are subject to certain closing conditions, including the receipt of business licence and permits relating to the transfer and the operation of the mining properties. It is anticipated that the acquisition of XNS and Sudan will complete by the end of the first quarter of this year.

Christopher Brown, Managing Director of London Mining said "This joint venture with Wits Basin is of great strategic importance to us and it should help to regenerate interest in our company. We will be one of the first western companies to own a profitable iron ore mine in China, a country which is the largest importer of iron ore in the world. The concentrates are of good grade and we expect premium pricing compared to other exporting producers to China, due to the much shorter transport distances to local steel mills. This deal not only is expected to give us solid cash flows, but also to give our company access to market intelligence on what really is happening to iron ore markets in China, as well as further iron ore mining opportunities in the region.”

Wednesday 22 August 2012

London Mining coal deal

The Company has agreed in principle a supply agreement with a local coking coal producer at a small discount to local market prices for up to 300ktpa of low volatility coking coal from mines being developed on neighbouring properties to London Mining’s coke ovens. Following a high-level drilling programme on these properties, London Mining decided to enter into a supply agreement in preference to the original proposed joint venture structure. The Company is in the process of investigating the potential of further concessions both in proximity to the coke ovens and also in other areas with high coking coal potential. An agreement has been signed for a concession in the vicinity of the coke ovens and which the Company is currently drilling with the expectation of developing a low and mid volatility coking coal mine to supply the coke ovens.

London is the capital city of England and the United Kingdom, the largest metropolitan area in the United Kingdom, and the largest urban zone in the European Union by most measures 

Tuesday 21 August 2012

Mining


What is your main objective?
 
London Mining’s objective is on identifying, developing and operating mines to become a significant producer of high quality iron ore to the global steel industry.

When was the company incorporated?
April 2005.

How many people do you employ?
In Q1 2012 the average monthly number of employees for continuing operations (including Directors) was:
Marampa (Sierra Leone)1288
Wadi Sawawin (Saudi Arabia)4
Isua (Greenland)5
Colombia54
Corporate30
Technical Service team5
Total1386

Monday 20 August 2012

London Mining Coal Division


Coal Division Overview

London Mining made its first coal acquisitions in August 2008 as part of an overall strategy to develop a complimentary metallurgical coal supply for its iron ore production and in doing so take advantage of the robust long-term outlook for thermal coal. The Company owns 100% of London Mining Colombia, a coking coal developer in Colombia.

Monday 6 August 2012

Q2 2012 PRODUCTION REPORT


Highlights
  • Quarterly production of 397,000 wmt (369,000 dmt) of iron ore from Marampa mine in Sierra Leone, up 26% on previous quarter
  • Sales of 350,000k wmt (326,000 dmt), up 36% on previous quarter
  • Consistent premium quality specification ore of 65.3% Fe with low impurities
  • Expansion to 5Mtpa progressing well  with second plant  expected to be commissioned in Q1 2013
  • Ramp up tracking production of 1.5Mt in 2012
Post period highlights
  • Appointment of James North as Chief Operating Officer
Graeme Hossie, Chief Executive Officer of London Mining said "The ramp up at Marampa is going well and we are on track with our production plans. We continue to ship our premium quality ore to customers in China where the product has been extremely well received. We have made excellent progress with our expansion plans at Marampa to 5Mtpa next year and will complete our bankable feasibility study for the next stage growth to 9Mtpa later this year as planned. The combination of near term softening of spot prices, along with an extended commissioning period of the transhipment platform has reduced current margins, however we expect a significant margin uplift once we commence loading of larger, ungeared vessels in Q3 2012. Overall, we are pleased with the progress we have made this quarter, with logistics from mine to ship proven to be robust in the earlier than expected wet season. The hedging of some of our 2012 volume at USD148/dmt has also helped our realised price.
I am also delighted about the recent appointment of James North, who will replace Luciano Ramos as COO of the Company. James brings over 20 years of mining experience to London Mining and will play a vital role as we continue the ramp up at Marampa and execute our planned expansion plans. I am also extremely pleased that Luciano remains on the board and continues to provide ongoing support and technical advice.”