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By KRISTEN HAYS Copyright 2009 Houston Chronicle

ConocoPhillips put its exploration efforts front and center Wednesday in an apparent effort to debunk Wall Street’s view that the Houston-based oil major grows by acquisition rather than finding its own oil and gas.

That view was bolstered when ConocoPhillips slashed $34 billion in asset values late last year to bring them in line with oil and natural gas prices that plunged from lofty highs as the worst recession in decades gripped the globe. The company also is eliminating more than 1,300 jobs.

Some analysts said the write-offs exposed the potential weakness in ConocoPhillips’ prevailing growth-by-acquisition strategy.

Bernstein Research analyst Neil McMahon suggested in a recent report that ConocoPhillips consider spinning off its exploration operation. Read more

Virginia Uranium, Inc. announced late Monday its intention to merge with Santoy Resources, Inc., a Canadian mineral exploration company with interests in uranium, oil, gas, methane and gold deposits in Canada.

The merger, which will involve the exchange of stock, cash and future interests, would give the combined company additional money, expertise and investment backing to open up the Coles Hill deposit in Pittsylvania County for mining. Virginia Uranium has been at the forefront of efforts to overturn Virginia’s 25-year moratorium on uranium mining.
“It’s really a way for us to raise money, for the future and long term of the project,” Walter Coles Sr. of Virginia Uranium, Inc., told the Virginian-Pilot newspaper.

Santoy signed a letter of intent to acquire interests in three entities — Virginia Uranium, Inc., which is based in Virginia and controls the rights to the Coles Hill deposit near Chatham; Virginia Uranium Ltd., a Yukon corporation; and VA Uranium Holdings, Inc., also based in Yukon. Virginia Uranium, Inc. is a wholly owned subsidiary of VA Uranium Holdings, and Virginia Uranium Ltd. holds a 12 percent minority interest in VA Uranium Holdings.

As a result of the deal, Santoy will take a 20 percent stake in VA Uranium Holdings. Santoy will also put up $3.5 million in cash as part of its investments in VA Limited and VA Holdings.
In a statement, Santoy said it “is pleased to proceed with this transaction as it gives the Company a significant position in a uranium project situated in a stable political location.” The Coles Hill uranium deposit, located on Walter Coles’ family farm, is one of the largest untapped uranium deposits in the United States and worth an estimated $10 billion.

The combined company will be led by Norm Reynolds, currently chief executive officer of Virginia Uranium Ltd., Reynolds is expected to be appointed as Chief Executive Officer of the new corporation. Walter Coles Jr., currently Executive Vice President of VU Limited, is expected to be appointed Executive Vice President of the new company. Ron Netolitzky, currently Chief Executive Officer of Santoy, will continue his active involvement in the company as a director. Mike Cathro of Santoy will serve as vice-president of exploration.

The merger of Santoy and Virginia Uranium must be approved by Canadian authorities. The companies expect to remain incorporated in Canada.

Santoy describes itself as a “junior Canadian mineral exploration company” which has focused on four main geographic locations for uranium mining: the Prolific Athabasca Basin in Saskatchewan, Southeast British Columbia, Otish Mountains of Quebec and in the Central Mineral Belt of Labrador. With the price of uranium steadily increasing, the company says it has a record of success in the discovery and development of uranium deposits and “of taking uranium discoveries through to feasibility study.”

The fate of the Coles Hill project will depend on efforts to lift Virginia’s moratorium on uranium mining, which was put in place in 1983 when Marline Uranium last attempted to mine the Coles Hill site. After a proposed feasibility study died this year in the General Assembly, legislators called on the Virginia Coal and Energy Commission to sponsor a feasibility study, to be conducted by the National Academy of Sciences or a similar scientific organization. The scope of the study has yet to be determined, and the Coal and Energy Commission also must determine how the study will be paid for.

BONAVENTURE ENTERPRISES INC. is pleased to update shareholders on its recent exploration work at the Company’s Squaw Creek and Cottonwood Projects in Nevada (U.S.A.).

At the Squaw Creek Property core hole SC-0801 intersected 120 feet (37 meters) averaging 1.07 g/t gold, including two gold assays over 3 g/t in a deeper offset of previous intersections (refer to the news release issued by Bonaventure on February 15, 2008). At the Cottonwood Property, ground magnetics and CSMT geophysical surveys have identified major north-south trending structures that may be feeder faults for mineralization based on the Carlin-gold mineralization model.

Squaw Creek Property

A 1,358 feet (414 meters) long core hole (SC-0801) was drilled in late 2008 to test a mineralized fault zone down dip from drill hole SC-0702, which gave 70 feet (22.5 meters) grading 1.02 g/t gold. Previous drilling by Bonaventure indicated the fault dipped approximately 70 degrees. However, the fault now appears to flatten to roughly 45 degrees causing SC-0801 to intercept the zone only 180 feet (55 meters) below the elevation of SC-0702.
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Tight credit and falling metals prices due to the international financial crisis have caused a sharp slowdown in mining exploration along Argentina’s Andes.

Exploration in San Juan province this year fell 14% from 2007 to 175 million pesos ($51 million), according to a study from the provincial mining ministry cited by industry magazine Mining Press.
San Juan is heavily dependent on revenues from mining, and the province’s strong support of the industry has attracted a number of major projects. About 20% of all investment in

Argentine mining exploration was spent in San Juan this year, according to Mining Press.
Barrick Gold Corp. (ABX) operates the Veladero gold mine in the province, and development projects include Yamana Gold Inc.’s (AUY) Gualcamayo mine and Xstrata PLC’s (XTA.LN) $1.8 billion-to-$2 billion El Pachon copper mine project. Twenty-six companies are exploring in the province, provincial Mining Minister Felipe Saavedra said recently.
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Central Mine Planning and Design Institute (CMPDIL) plans to join hands with Mineral Exploration Corp (MECL) to fast-track the process of coal exploration in the country. The tie-up will help CMPDIL to involve MECL in undertaking its drilling works without inviting tenders.

CMPDIL, the exploration subsidiary of the country’s largest coal producer Coal India (CIL), will soon sign a memorandum of understanding (MoU) with MECL for conducting coal drilling projects of 1 lakh meters, CMPDIL chairman & managing director A K Singh said. The move would accelerate coal exploration activities by saving time lost in the
tender system.

“After signing the MoU with MECL, CMPDIL will not require to outsource drilling projects to MECL via tendering process,” he said. The company plans to enhance coal exploration capacity from 2 lakh meters per annum to 10 lakh meters per annum by 2011-12.
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SHANGHAI (AFP) — China Shenhua Energy, the country’s largest coal miner, said it had paid 299.9 million Australia dollars (185.7 million US dollars) for a coal exploration licence in Australia.

The 190-square-kilometre project, located in New South Wales state, is estimated to contain more than one billion tonnes of coal, the company said in a statement with the Shanghai Stock Exchange.

If granted a mining licence, Shenhua will have to pay an additional 200 million Australia dollars to the state government, according to the statement.
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Subsequent to an announcement, a June 12th, 2008 press release, of a proposed Joint Venture program between Royal Standard Minerals Inc. and Sharpe Resources Corp. to jointly explore and develop coal projects in Eastern Kentucky, the Boards of Directors of Royal Standard Minerals Inc. and Sharpe Resources Corporation have completed a 50-50 Joint Venture agreement to jointly pursue the exploration and development of coal projects in Eastern Kentucky. The agreement was approved and executed on November 21, 2008 and is subject to regulatory approvals, according to Roland M. Larsen, Qualified Person.

The information presented in this press release is subject to the various regulatory approvals. The economic viability of these projects is uncertain and is contingent upon coal pricing and mining conditions that could affect the project economics.
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