Resource round-up: Weatherly Int, Mercom, Goldstone Resources, Continental Coal


LONDON (ShareCast) - Aim-listed copper mining producer Weatherly International said it is to reopen the Old Matchless mine in Namibia, allowing the company to double production in the area. Production at the mine, which closed in 1983 and sits around 2km east of current mining operations, is expected to start within 13 months, reaching capacity within 24 months. This would see the company mine 15,000 tonnes of ore a month by 2014, Weatherly said.

Mercom Oil Sands rocketed after one its minority shareholders, Mauricio Trevino Zambrano, said he had formed a company to make a bid for Nordic Petroleum ASA. If successful, Zambrano intends to enter into negotiations with Mercom to sell it a 100% interest in the four Chard Oil Sands Leases. The firm said there was currently no arrangement or understanding between Mercom and Zambrano. But Mercom added it found today's announcement "an encouraging sign of shareholder support and will follow any developments with interest". Shares rose 28% on the news.

Shares in Goldstone Resources (LSE: GRL.L - news) were up on the news that estimates for its Homase/Akrokerri gold resource had been increased by 100,000oz to 602,000oz. The overall gold grade was also increased to 1.77 grams per tonne. Shares were up 4.5% on the news.

Continental Coal announced the Botswana Department of Mines had renewed the company's three coal prospecting licenses in the country for a further two years. Continental (EUREX: CON.EX - news) , which holds licenses that cover an area of around 475km² through its Botswana subsidiary, Weldon Investment, said the decision meant it could move to the next phase of exploration planning.

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