Anglo Asian Mining's gold resource at its Gedabek gold/copper mine in Azerbaijan has increased to 704,000 ounces of gold in the 'measured' and 'indicated' classifications.

The JORC compliant block model estimate has been produced by mining consultants SGS Canada Incorporated Geostat Group and includes updated information available as of 7 June.

The report significantly increases the resource from the estimate prepared in 2006 by SRK.

Both the report and the SRK estimate employ a cut-off grade of 0.3g/t Au for all categories.

Newly available structural geologic information has been incorporated into the geologic model on which the report was based.

The estimate excludes mined materials, including ore mined in the period to 7 June and that which is currently in the leach pad process, or contained in ore stock piles.


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OceanaGold Corporation (ASX, TSX, NZX: OGC), which is domiciled in Melbourne but has the Toronto Stock Exchange as its home bourse had a net earnings for the September quarter of US$13.7 million (NZ$18.28 million) and, at $42.6 million (NZ$56.8 million), a 9% improvement in EBITDA over the previous quarter.

Gold production for the quarter totalled 68,763 ounces, realising a year-to-date total of 201,595 -- in line with company projections.

There have been improved mining and milling rates at the Fraesers open cut and Frasers underground operations at Macraes, north of Dunedin on the South Island, resulting in a 20% increase in production when compared to the previous quarter.

A New Zealand exploration program added 3,600 metres of underground drilling completed at Frasers Underground at Macraes and 7,600m of drilling at Globe Deeps at its Globe-Progress mine at Reefton on the South Island's West Coast.

Mill throughput of Macraes ore for the September quarter was 1.48 million tonnes, compared to June quarter's 1.34 Mt and the grades treated were generally higher. Cash operating costs were $US568/ounce (NZ$758/oz) compared to June quarter $US564/oz. A key factor for this was the progressively weakening American dollar, as the company pointed out that since June the $US had declined 10% to the $NZ.

The operating margin grew to US$664/oz (NZ$885/oz) compared to US$627/oz (NZ$836/oz) for June.

The Globe-Progress mine, which delivers a concentrate to the Macraes pressure oxidation plant, mined 14% less ore in the quarter due mainly to wet conditions on the West Coast that gave mining equipment poor access to the pit floor.

Gold production attributable to Reefton was 19,031 oz, 7,000 oz less than the June quarter.

OceanaGold's executive chairman, Jim Askew, said the company's third quarter results demonstrated higher cash operating margins and solid cash flows from our NZ operations.

With the resumption of development of the Didipio gold-copper project in the Philippines "the company will be well positioned for ongoing earnings growth and expansion".

"Didipio represents a long life mine with robust economics that, after allowing for copper by-product credits, will create a cash cost profile that aims to put the company within the lowest quartile amongst its peer group," he said

Since releasing the quarterly results, OceanaGold separately released a new technical report that provides positive signs for lifting the mothballs of this project and have it contributing to group production within two years. This year's group production from NZ operations was estimated to be between 270,000-300,000 oz.


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Vale plans to more than double production by 2015, prompting its board of directors to approve a US$24 billion capex budget for 2011, dedicated to sustaining existing operations, R&D, and project execution.

Next year's capex budget is a 125.1% increase over the US$10.66 billion invested in the last 12-month period ended on September 30, 2010.

Vale plans to bring 18 large projects on line between 2010 and 2012 at an estimated total price tag of US$26 billion. Approved projects include Carajás Additional 30 Mtpy, Conceiçao Itabritos, Vargem Grand Ibabiritos, Oman, Tubarão VIII, CLN 150, Salobo, Salobo II, Konkola North, Long Harbour, Totten, Moatize, Biofuels, Estreito and Karebbe.

Five projects are expected to be completed next year including nickel/copper project Totten, an old mine in Sudbury; copper project Salobo; coal project Moatiz; and power generation projects Estreito and Karebbe.

"While iron ore and nickel will remain as our largest operations, our investments will entail a significant expansion of fertilizers, copper and coal, thus fostering the consolidation of a diversified portfolio of world-class assets, composed of bulk materials, base metals and fertilizers," Vale said in a news release Thursday.

While planned iron ore production is 311 million metric tons for 2011, Vale has targeted 522 million metric tons of production by 2015. Nickel production will be increased from the 295,000 tonnes planned for 2011 to 381,000 tonnes by 2015.

Copper production will be increased from 332,000 tonnes anticipated next year to 691,000 tonnes in 2015. Coal production will rise substantially from 11.6 million tonnes in 2011 to 42 million tonnes in 2015.

Potash production will be more than quadrupled from 800,000 tonnes in 2011 to 3.4 million tonnes in 2015. Phosphate rock production will be nearly double from 6.4 million tonnes in 2011 to 12.7 million tonnes in 2015.

Vale plans to spend $15.3 billion or 63.8% of its capex budget in Brazil, along with $1.96 billion budgeted for Canada, $1.4 billion for Argentina, $1.13 billion for Guinea, $1.12 billion for Mozambique, $663 million for China, $436 million for Australia, $338 million for Indonesia, $306 million for Oman, $166 million for Malaysia, $163 million for Peru, $102 million for Columbia, $98 million for Liberia, and $93 million for Zambia among other countries.

Budgeted R&D expenditures in 2011 are US$681 million to finance global exploration, $236 million for natural gas exploration, $805 million for conceptual, pre-feasibility and feasibility studies, and $264 million to be invested in new processes, technological innovation and adaption. Mineral exploration programs are being implemented in 22 countries.


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