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US Under-Secretary Carson Wants More US Investment In Cameroon
Jun 28, 2011 03:40:13 (ET)
YAOUNDE, Cameroon (Dow Jones)--Visiting U.S. diplomat Johnnie Carson has told Cameroon President Paul Biya Monday to make it easier for U.S. companies to invest in the West African nation.
His declaration comes as a surge of U.S. mining firms have begun operating in Cameroon, particularly Colorado-based Geovic Corp Inc. (GVCM), which has just acquired approval to exploit cobalt, nickel and manganese deposits.
Several U.S. diplomats and officials have complained about red tape hampering the business atmosphere in the country.
"We talked about the economy, about the desire that we have in the U.S. to encourage more American businesses and companies to invest in this country," Carson said after meeting with Biya.
Carson is the Assistant U.S. Secretary of State for the Bureau of African Affairs.
Following his visit to Cameroon, Carson will head to neighboring Equatorial Guinea for the African Union summit.
"Ambassador Carson...encouraged the Government of Cameroon to take all appropriate steps necessary to ensure the 2011 presidential and 2012 parliamentary and local elections are free, fair, open and transparent," a statement issued by Richard Johannsen, U.S. Embassy Spokesperson, said.
"Ambassador Carson urged the Government of Cameroon to make sure governmental authorities allow Cameroon's citizens to participate in open public discussions about all issues of interest to the voters," the statement said.
-By Emmanuel Tumanjong, contributing for Dow Jones Newswires; +237-9655-6261, +7773-1930; tnuel@yahoo.com.com
A summer of opportunities... in my belief. Best of success.
It is gloomy, GVCM wil probably follow the general market. I have lots of confidence in the business plan though and expect news soon.
Fukishima is screwing up REEs and Cobalt is really important.
b4
For the week: -8.79%
I think we can get back to .60 but someone keeps taking profit when we get there. When GVCM starts producing it will be a new story. I own plenty and it is just time to hold and wait. Summer always sucks for metals.
b4
Big sell of in May - is this the end?
Hope it is only a major investor getting out.
Doesn't look too good at the moment.
GLTY
Geovic Initiates Cornudas Mountains Advanced
Metals Exploration Program, New Mexico
28 April, 2011 – Denver, CO - Geovic Mining Corp. (“Geovic” or “the Company”, TSX:GMC, OTCBB:GVCM) is pleased to announce that it has completed the staking of five square miles (13 sq. km) of mining claims at its Cornudas Mountains exploration prospect in southern New Mexico. Initial work completed by the Company indicates that the Cornudas Mountains claims host an alkaline laccolithic intrusion that contains significant concentrations of the heavy rare earth enriched mineral eudialyte. In addition to the rare earths, significant enrichment in zirconium, hafnium, tantalum, tin, yttrium and niobium have been confirmed.
Project Background
Detailed surface geologic mapping and sampling programs carried out over the past six-months has established the geological potential of the higher grade resource areas located on the new claims block. The nepheline syenite host rocks are characterized by mineral-filled cavities which contain on average 10% eudialyte, ranging up to 30% in analyses completed to date. Eudialyte is typically comprised of 11.8% zirconium and 2.5% to 5% rare earths, preferentially enriched in the more valuable heavy element suite. Preliminary laboratory tests indicate that the crushed eudialyte-bearing rock samples may be easily and inexpensively processed and leached, producing high-value mineral concentrates as well as a potential fiber-glass/bottle-glass byproduct.
Geovic scientists working together with researchers at the Minerals Engineering Centre of Dalhousie University have devised a new ore beneficiation technology through a combination of physical and chemical separation techniques that were refined to take advantage of the unique properties of eudialyte. This new technology, together with proprietary hydrometallurgical extraction protocols, could lead to the development of a new class of rare earth ore deposit. Moreover, this research work found that 75% of the gangue minerals of the host rock can also be utilized as a nepheline-feldspar byproduct, an essential component of green products such as fiberglass insulation and recyclable glass containers and bottles.
In a publication released in October 2010 by the United States Geological Survey entitled “The Principal Rare Earth Elements Deposits of the United States,” it is stated that the Wind Mountain portion of the Cornudas Mountains area where the Company’s claims are located hosts dikes and sills of nepheline syenite and syenite, at least some of which “ ... contain thorium, uranium and rare earth elements (REE) mineralization. The alkaline dikes and sills reportedly also contain anomalous concentrations of beryllium (Be), niobium (Nb), lithium (Li), nickel (Ni), tin (Sn), zirconium (Zr), and fluorine (F, in fluorite). Other analyses reported in the USGS publication from Wind Mountain listed concentrations of 70 ppm lanthanum (La), 270 ppm neodymium (Nd), and 242 ppm yttrium (Y).The publication further states that “ However, a full rare earth elements resource evaluation of the Wind Mountain uplift would require much more sampling than has been completed thus far.” While these reported whole- rock concentrations are relatively low, the apparent ability to substantially upgrade and process a eudialyte concentrate significantly enhances the potential economic viability of the project. The Cornudas Mountains claims have the potential to host a large advanced metals resource capable of becoming a long-life small scale limited impact mining operation which would strongly support long-term growth in the local economy.
“The Eudialyte mineral is the host to all the advanced minerals of interest. The key is to concentrate the mineral and process it separately, which is what we have done on a small scale test basis. These advances in processing technology and scientific research are quite exciting...”, comments Company founder William Buckovic, who further notes: “If this exploration project works out the way we expect, it will enable production of many key ingredients for materials essential to the new “Greentech” (green technology) and national defense systems industries, with limited impact on our environment.
2011 Work Program
Geovic has filed its initial work program for consideration by the Bureau of Land Management and New Mexico Mining and Minerals Division. This program consists of a first-stage “minimal impact” (disturbed area of less than 0.8 acre) drilling program to test the extent and grade of subsurface mineralization in a small portion of the claimed area.
1
This low impact program will utilize a portable hand-operated “Winkie” drill to complete several shallow core holes. The drill will be carried to each of the pre-approved drill sites and the small quantity of water necessary for the drilling operation will be pumped in temporary water lines to the sites using water trucked in on existing roads, thereby eliminating the need for any new roads or heavy equipment in the area. A more extensive program would follow later in the year, pending the success of the initial program and further approvals.
Rare earths include a number of strategic metals critical to the industrial and green movement in America. Recent legislation has been introduced by the Federal government supporting the immediate development of prospective rare earth deposits in the USA. The critical importance of these advanced metals to all aspects of energy and industrial development are driving the re-prioritization of such developments nation-wide. The Cornudas Mountains prospect has the potential to supply a portion of long term advanced metals needs.
Mr. Gary R. Morris, Senior Vice President of the Company and a registered professional geologist is the Qualified Person, as defined by Canadian National Instrument 43-101, responsible for the technical information contained in this press release.
Geovic Mining Background
Geovic is a U.S.-based corporation whose principal asset is 60.5% ownership of a significant cobalt-nickel-manganese deposit in the Republic of Cameroon, Africa. Additional Company information may be found on the websites www.geovic.net, www.sedar.com, and www.sec.gov.
For more information, please contact:
San Diego Torrey Hills Capital Direct (858) 456-7300 info@torreyhillscapital.com
On behalf of the Board John E. Sherborne, Director President Geovic New Ventures
Cautionary Note Regarding Forward Looking Statements
Statements contained in this press release that are not historical facts are forward-looking statements (within the meaning of Canadian securities legislation) that involve risks and uncertainties. Forward-looking statements include, but are not limited to, statements with respect to the timing and completion of necessary exploration activities, timely receipt of required regulatory approvals, demand for the various advanced metals or respective concentrates; future prices of metals; the estimation of mineral resources; the timing and amount of estimated future capital expenditures; costs and timing of development of new deposits; and success of exploration activities, permitting time lines, requirements for additional capital, government regulation of operations, environmental risks, unanticipated reclamation expenses, title disputes or claims and limitations on insurance coverage. In certain cases, forward-looking statements can be identified by the use of words such as “proposes”, “expects”, “is expected”, “scheduled”, “estimated”, “intends”, or variations of such words and phrases or state that certain actions, events or results “will” occur. Forward-looking statements involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance, or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward- looking statements. Such risks and other factors include, among others, risks related to operations; actual results of planned exploration activities; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; future prices of metals; failure of plant, equipment or processes to operate as anticipated; accidents, labor disputes, other risks of the mining industry, delays in obtaining governmental approvals and other factors as described in detail in the Company’s Annual Report on Form 10-K, quarterly reports on Form 10-Q, and other filings with the U.S. Securities and Exchange Commission and Canadian securities regulatory authorities. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The forward-looking statements in this press release speak only as of the date hereof. The Company does not undertake any obligation to release publicly any revisions to these forward-looking statements to reflect events or circumstances after the date hereof to reflect the occurrence of unanticipated events.
Apr 19, 2011 14:21:25 (ET)
DENVER, COLORADO, Apr 19, 2011 (MARKETWIRE via COMTEX) -- Geovic Mining Corp. (GVCM, Trade ) ("Geovic" or "the Company") is pleased to announce that the final Feasibility Study for its Nkamouna Cobalt-Nickel-Manganese Project (the "Project") in Cameroon, Africa has been received and accepted by the Company and by its 60.5%-owned subsidiary Geovic Cameroon PLC ("Geovic Cameroon"). The Feasibility Study was prepared by Lycopodium Minerals Pty Ltd. ("Lycopodium") of Perth, Australia. The Feasibility Study incorporates comprehensive input from SRK Consulting and Knight Piesold and Co., both of Denver, Colorado.
The Feasibility Study was prepared to an estimated accuracy of +/-15% and includes the following highlights:
-- Proven and probable reserves of 68.132 million tonnes at average grades
of: Cobalt 0.26%, Ni 0.66%, and Mn 1.48%;
-- A 23 year Project life;
-- Average annual production for the first eleven years of full production:
-- Cobalt: 13.5 million pounds (6,115 tonnes)
-- Nickel: 7.25 million pounds (3,297 tonnes)
-- Manganese Carbonate: 138 million pounds (62,800 tonnes)
-- Initial capital expenditure of $617.2 million (including average 10%
contingency);
-- After-tax Project net present value ("NPV") of $669.6 million at an 8%
discount rate (Geovic Mining's 60.5% share $405.1 million), assuming
average three-year trailing prices (in accordance with SEC guidelines)
of $26.20 per pound for cobalt and $8.71 per pound for nickel; and $0.54
for manganese, based on current prices for manganese carbonate;
-- After-tax internal rate of return ("IRR") of 22% based on 100% equity;
-- Payback period of 41 months;
-- Total free cash flow (before debt service) of $2.14 billion over the
Project life.
"We are pleased with the results of the Nkamouna Feasibility Study, and will aggressively move forward with financing and off-take arrangements as quickly as possible," stated Mike Mason, Geovic's CEO. "We are confident the capital and operating costs have been well vetted, and that the overall economics are solid and defensible. Our ability to finance Nkamouna has been significantly enhanced, and we are now in a position to advance ongoing discussions with various parties."
The end products to be produced include a high-quality cobalt-nickel mixed sulfide precipitate ("MSP") product and a manganese carbonate product. Due to the strong off-take demand observed for MSP, it was determined that building a refinery to manufacture high-purity finished products was neither necessary nor cost efficient at this time. "Producing a high-quality intermediate MSP represents a much lower process risk in terms of our ability to get the metallurgical plant up-and-running, as well as to produce a more marketable and consistently high quality product sooner," Mr. Mason commented.
Financial Sensitivity to Product Prices
The Feasibility Study includes the financial sensitivity of the Project to changes in underlying commodity prices, calculating estimated operating results from 15% increases and decreases in cobalt, nickel, and manganese prices from the base case assumptions as follows:
Price Assumptions: Base - 15% Base + 15% Base Case
Cobalt, US$/lb $22.27 $30.13 $26.20
Nickel, US$/lb $7.41 $10.02 $8.71
Manganese, US$/lb $0.46 $0.63 $0.54
100% Equity - After Tax:
IRR, % 16% 27% 22%
NPV 8%, US$M 316 1,021 670
NPV 8%, US$M (Geovic Mining 60.5% Share) 191 618 405
Payback, Production Years 4.7 2.8 3.4
Feasibility Study Changes Compared to Previous Studies
-- A 24.5% increase in reserves based on the 54,900 meter drilling program
completed in 2009, yielding an updated mine plan that delivers higher
grade ore in the critical early years of production;
-- A simpler and highly flexible mining method better suited for all-
weather operation that enables concurrent mining and reclamation of
multiple ore zones;
-- An improved physical upgrading circuit that significantly improves the
economics by efficiently delivering higher grades to the process plant,
while removing the non economic material, deemed as waste;
-- A simplified and more robust metallurgical process, utilizing powdered
pyrite and sulfuric acid to leach the ore concentrate at atmospheric
pressure, which has been validated by significant additional
metallurgical test work, including a continuous pilot testing program in
2010;
-- A more environmentally protective water management and tailings disposal
system, including water treatment;
-- A detailed Project-wide energy balance enabling the economic use of
imported fuels replacing a dedicated biomass power plant that was
dependent on other local industries to supply fuel material; and
-- A modular design that allows the Project to produce cobalt-nickel MSP
and manganese carbonate as the marketable products, while retaining the
ability to add a refining facility at a future date.
When the news gets around a little more, yes, I agree... lots more upside!
Yes, and this should put us on a fast track to production. Something I have been waiting for for sometime. We should see a steady increase in sp from here on out.
A 24.5% increase in reserves based on the 54,900 meter drilling program completed in 2009, yielding an updated mine plan that delivers higher grade ore in the critical early years of production...
Great news all by itself!!!
And the market embraces the news... +22%
Geovic Completes Feasibility Study on Nkamouna Cobalt Project, Commences Financing Phase
Apr. 19, 2011 (Marketwire Canada) --
DENVER, COLORADO -- Geovic Mining Corp. (TSX:GMC)(OTCBB:GVCM) ("Geovic" or "the Company") is pleased to announce that the final Feasibility Study for its Nkamouna Cobalt-Nickel-Manganese Project (the "Project") in Cameroon, Africa has been received and accepted by the Company and by its 60.5%-owned subsidiary Geovic Cameroon PLC ("Geovic Cameroon"). The Feasibility Study was prepared by Lycopodium Minerals Pty Ltd. ("Lycopodium") of Perth, Australia. The Feasibility Study incorporates comprehensive input from SRK Consulting and Knight Piésold and Co., both of Denver, Colorado.
The Feasibility Study was prepared to an estimated accuracy of +/-15% and includes the following highlights:
Proven and probable reserves of 68.132 million tonnes at average grades of: Cobalt 0.26%, Ni 0.66%, and Mn 1.48%;
A 23 year Project life;
Average annual production for the first eleven years of full production:
Cobalt: 13.5 million pounds (6,115 tonnes)
Nickel: 7.25 million pounds (3,297 tonnes)
Manganese Carbonate: 138 million pounds (62,800 tonnes)
Initial capital expenditure of $617.2 million (including average 10% contingency);
After-tax Project net present value ("NPV") of $669.6 million at an 8% discount rate (Geovic Mining's 60.5% share $405.1 million), assuming average three-year trailing prices (in accordance with SEC guidelines) of $26.20 per pound for cobalt and $8.71 per pound for nickel; and $0.54 for manganese, based on current prices for manganese carbonate;
After-tax internal rate of return ("IRR") of 22% based on 100% equity;
Payback period of 41 months;
Total free cash flow (before debt service) of $2.14 billion over the Project life.
"We are pleased with the results of the Nkamouna Feasibility Study, and will aggressively move forward with financing and off-take arrangements as quickly as possible," stated Mike Mason, Geovic's CEO. "We are confident the capital and operating costs have been well vetted, and that the overall economics are solid and defensible. Our ability to finance Nkamouna has been significantly enhanced, and we are now in a position to advance ongoing discussions with various parties."
The end products to be produced include a high-quality cobalt-nickel mixed sulfide precipitate ("MSP") product and a manganese carbonate product. Due to the strong off-take demand observed for MSP, it was determined that building a refinery to manufacture high-purity finished products was neither necessary nor cost efficient at this time. "Producing a high-quality intermediate MSP represents a much lower process risk in terms of our ability to get the metallurgical plant up-and-running, as well as to produce a more marketable and consistently high quality product sooner," Mr. Mason commented.
Financial Sensitivity to Product Prices
The Feasibility Study includes the financial sensitivity of the Project to changes in underlying commodity prices, calculating estimated operating results from 15% increases and decreases in cobalt, nickel, and manganese prices from the base case assumptions as follows:
Price Assumptions:
Base - 15% Base + 15% Base Case
Cobalt, US$/lb $22.27 $30.13 $26.20
Nickel, US$/lb $7.41 $10.02 $8.71
Manganese, US$/lb $0.46 $0.63 $0.54
-1.92% is the scorecard for the week...
Although no realized gain, last week's candle is BULLISH!!!
Somebody likes the new Chromite mining plan.
b4
http://www.geovic.net/userfiles/file/NC_PR_2-14-2011.pdf
71K shares just bought @ .658 - not eactly chump change!
Wonder what's up?
Hmmmmm... not your typical mining site!!!
WTF .....
DENVER, COLORADO--(Marketwire - 02/15/11) - Geovic Mining Corp. (TSX:GMC - News)(OTC.BB:GVCM - News) ("Geovic" or "the Company") is pleased to announce that its Geovic New Caledonia SAS subsidiary (GNC) has been granted exclusive exploration licenses in New Caledonia, a French overseas island territory in the South Pacific. These licenses will enable the Company to evaluate the quality and extent of promising chromite-rich heavy mineral beach sand deposits in a program expected to commence later this year.
Project Background
Several members of Geovic's senior management team prospected for chromite deposits in the mineral-rich sands along the coast of New Caledonia during the 1980s. Based on this work, together with subsequent advances in mineral separation technology, the Company determined that an opportunity existed to define and ultimately develop a potentially economic major chromite resource.
Consequently, the Company established GNC to carry out its exploration and evaluation efforts and in 2009 carried out reconnaissance sampling programs and conducted airborne magnetometer surveys, resulting in the issuance by the government of prospect licenses (PMAs) for up to 120 square kilometers.
In the past year, more than 400 samples were collected from areas covered by the PMAs, and the prospects were ranked according to development potential. Based on these results, GNC submitted exploration license applications for areas deemed to be the most prospective, and was recently awarded a total of 31 licenses: 12 exploration licenses comprising 40 square kilometers in North Province and 19 Licenses comprising 60 square kilometers in South Province.
Favorable Results from Preliminary Prospecting and Process Tests
The onshore prospecting program carried out thus far has resulted in the discovery of several potentially large-tonnage high-grade chromite accumulations. In some of these areas, chromite concentrations exceed 50% of the total sand grains present.
In preliminary metallurgical test work, the chromite was found to be easily concentrated by conventional gravity, magnetic and electrostatic separation, and many concentrate assays exceeded 54% Cr2O3, well above global averages. Additionally, bulk sample test work indicates that premium grade chromite can be produced from multiple sites tested thus far. Additional information about this project can be found on the Company's web-site (www.geovic.net).
Chromite market
The principal source of chromium metal is chromite. The world chromite market consumes over 22 million tonnes of chromite per year (2008), greater than 90% of which is consumed as ferrochrome, mostly dedicated to stainless steel production. Chrome content in stainless steel ranges from about 13-20%. Demand for stainless steel is expected to increase significantly. Premium quality foundry grade chromite sand is the preferred casting media for production of metal castings.
2011 Exploration Program
Environmental baseline studies are being initiated to establish site specific impacts and mitigation requirements prior to drilling. Subsequently, following regulatory approval to commence exploration, onshore and offshore drill campaigns are planned to assess the quality and extent of chromite deposits on the exploration licenses. The initial drilling program is targeted to commence in the second half of 2011 and continue into 2012, at which point we anticipate that resources will be estimated.
Custom onshore and offshore drill rigs are being fabricated to utilize a proprietary process that will ensure sample integrity while minimizing impacts during the drilling program. Bulk samples will also be collected to confirm the mineral separation process, forming the basis for advanced engineering and design studies and estimated capital and operating cost requirements.
John Sherborne, President of Geovic New Ventures, comments: "The award of exploration licenses culminates several years of prospecting work in New Caledonia. We believe the potential exists for an economically viable, world-class chromite deposit, and the upcoming work program will be an important first step in establishing the parameters for such a project."
Mr. Gary R. Morris, President of Geovic Mineral Sands and a registered professional geologist is the Qualified Person, as defined by Canadian National Instrument 43-101, responsible for the technical information contained in this press release.
Nice find swayne!
Not many folks watching cobalt.
b4
FWIW....
The European Commission recently announced a plan to secure the continent’s supply of cobalt and other natural resources, with the aim of reducing the EU’s dependence on imports.
“In order to secure supply of raw materials for the European industry for coming years, we need to link this policy with our reforms of the regulatory framework for financial markets,” said Commission President José Manuel Barroso on Wednesday.
The Commission has now agreed to update the list of crucial raw materials at least every three years, instead of five years as previously decided.
The Commission identified 14 crucial materials including cobalt and other “high-tech” metals, but also natural rubber, woods and even foodstuffs like grains. The major countries which are involved in the global trade are Russia, Republic of China, Brazil and Democratic Republic of Congo. One of Europe’s current main suppliers of the cobalt needed to produce batteries is the war-torn Democratic Republic of Congo (DRC). Europe is 100 percent reliant on foreign suppliers for cobalt, of which 71 percent originates from the DRC. Most of the world’s rare earth elements, and other elements like indium - in high demand for use in flat screen televisions and computer monitors - are mined in China, which recently cut its export quotas.
A report published by the Commission entitled The Raw Materials Initiative — Meeting our Critical Needs for Growth and Jobs in Europe states that “though often needed only in tiny quantities, these metals are increasingly essential to the development of technologically sophisticated products in view of the growing number of their functionalities. The EU will not master the shift towards sustainable production and environmental-friendly products without such high tech metals. These metals play a critical role in the development of innovative ‘environmental technologies’ for boosting energy efficiency and reducing greenhouse gas emissions.”
The report also addressed concerns over securing supplies of cobalt in the future, as “emerging economies” like China and India have increased their engagement in mineral-rich countries like the DRC in recent years, with the goal of supplying their increasing demand for cobalt.
Moving forward, the Commission recommends a raw materials strategy that ensures continued access to cobalt through maintaining positive relations with international suppliers, fostering European-based supplies, and promoting initiatives to recycle and reduce consumption.
A geographically closer source for cobalt is the Russian Federation, but the mineral is so rare that since 2008, Russian law doesn’t allow foreigners to dig it out of the ground, sell it or export it without special permission. Russian mining giant Norilsk Nickel (PINK:NILSY) currently controls close to 95 percent of domestic cobalt production.
Belgium-based Tesla Motors Inc. (NASDAQ:TSLA) recently garnered attention for launching its initiative to refine cobalt from recycled used battery packs, then transforming the cobalt into high-grade lithium cobalt oxide, which can be resold to battery manufacturers.
My friends, for the week: -3%
MM's (Chaikin's Oscillator) have been buying and insiders (OBV) just started... we shall see... the price of Cobalt has come off the bottom and may well continue to move up. The market will tell us.
US Wants Closer Links To Boost Cameroon Mining - Report Dec 30, 2010 11:07:09 (ET)
YAOUNDE, Cameroon (Dow Jones)--The U.S. is in a diplomatic push toward the Cameroon government to bolster the West African nation's lagging mining sector, state-run daily Cameroon Tribune reports Thursday.
"We talked extensively about American companies that are looking to develop minerals here in Cameroon," the newspaper cited U.S. Ambassador to Cameroon Robert P. Jackson as having said after meeting with Cameroon's Minister of Industries, Mines and Technological Development Badel Ndanga Ndinga.
"We also talked about the experience of the American companies that have been working in the petroleum sector, how they hope to expand on what they are already doing," Jackson was quoted as saying.
Cameroon has vast mineral potentials, including iron ore, bauxite, uranium, diamond, gold, nickel, cobalt and manganese, but barely 0.13% of the resources are tapped of the 40% national territory surveyed to date.
U.S., European, Australian, South Korean, and Chinese companies have signed several mining contracts with the Cameroon government, yet full take-off of the projects has been delayed due to a lack of experienced local manpower.
Colorado-based Geovic Mining Corp. (GVCM) has become one of the first foreign firms to obtain a permit to exploit cobalt, nickel and manganese in the eastern Cameroon localities of Nkamouna and Lomie.
Web site: http://www.cameroon-tribune.net/
-By Emmanuel Tumanjong, contributing to Dow Jones Newswires; +237-9655-6261; tnuel@yahoo.com
(END) Dow Jones Newswires
December 30, 2010 11:07 ET (16:07 GMT)
Press Release Source: Geovic Mining Corp. On Tuesday December 21, 2010, 8:30 am EST
DENVER, COLORADO--(Marketwire - 12/21/10) - Geovic Mining Corp. ("Geovic" or "the Company", (TSX: GMC)(OTC.BB:GVCM - News), on behalf of its 60.5%-owned subsidiary Geovic Cameroon PLC, announces the current status of the Feasibility Study for its Nkamouna Cobalt-Nickel-Manganese Project (the "Project") in Cameroon, Africa.
The report, in preparation by Lycopodium Minerals Pty. of Perth, Australia, will incorporate Project changes since 2008, including improvements to the process chemistry, processing plant, and mine plan. It will not be completed as initially anticipated by the end of 2010.
Through December 2010, the following observations and conclusions have been made:
-- The process of updating the Feasibility Study has revealed significantly
higher Project capital costs. Geovic's third quarter 2010 10-Q disclosed
that initial capital costs plus working capital would be at least $100
million higher than the $417 million combined estimate from the previous
Feasibility Study, dated September 2008. The Company now anticipates
total initial capital costs plus working capital to be closer to $600-
$650 million (including estimated contingencies), not including
construction of a process refinery which, if needed, is estimated to
cost at least an additional $150 million.
-- Discussions with potential offtake partners, nearly all located in the
Far East, have yielded a high level of interest in purchasing
intermediate cobalt/nickel mixed sulfide precipitate, or MSP, a product
that would not require construction of a refinery. Consequently,
deferral of the refinery (for converting MSP to finished cobalt and
nickel products) is being considered by the Geovic Cameroon shareholders
and Board of Directors, a decision that will be made in the coming
months.
-- The Company is evaluating several opportunities to improve Project
economics, and will actively pursue all such avenues immediately, with
the Feasibility Study projected to be finalized by the end of April
2011. The Feasibility Study will address all aspects of Project
economics, and is intended to establish Project viability.
Geovic Mining Background
Geovic is a U.S.-based corporation whose principal asset is 60.5% indirect ownership of a significant cobalt-nickel-manganese deposit in the Republic of Cameroon, Africa. Additional Company initiatives and project information may be found on the websites www.geovicenergy.com, www.sedar.com, and www.sec.gov. For more information, please go to www.geovic.net.
On behalf of Geovic Mining:
Greg Hill, CFO, Geovic Mining and Chairman, Geovic Cameroon PLC
Cautionary Note Regarding Forward Looking Statements
Statements contained in this press release that are not historical facts are forward-looking statements (within the meaning of Canadian securities legislation) that involve risks and uncertainties. Forward-looking statements include, but are not limited to, statements with respect to the anticipated total initial capital costs of the Project, the potential decision to defer the refinery, the timing for completion and the content of the final Feasibility Study. In certain cases, forward-looking statements can be identified by the use of words such as "proposes", "expects", "is expected", "scheduled", "estimated", "intends", or variations of such words and phrases or statements that certain actions, events or results "will" occur. Forward-looking statements involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance, or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such risks and other factors include, among others, risks related to exploration activities and operations; actual results of our efforts to improve Project economics, current exploration activities; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; future prices of metals; possible variations in ore reserves, grades, or recovery rates; failure of plant, equipment or processes to operate as anticipated; accidents, labor disputes, other risks of the mining industry, delays in obtaining governmental approvals or financing or in the completion of development or construction activities and other factors as described in detail in the Company's Annual Report on Form 10-K, quarterly reports on Form 10-Q, and other filings with the U.S. Securities and Exchange Commission and Canadian securities regulatory authorities. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The forward-looking statements in this press release speak only as of the date hereof. The Company does not undertake any obligation to release publicly any revisions to these forward-looking statements to reflect events or circumstances after the date hereof to reflect the occurrence of unanticipated events.
Contact:
Contacts:
Geovic Mining Corp.
Andrew C. Hoffman, CFA
V.P., Investor Relations
(720) 350-4130 or Toll-Free: (888) 350-4130
ahoffman@geovic.net
www.geovic.net
San Diego Torrey Hills Capital
(858) 456-7300
info@torreyhillscapital.com
Vanguard Shareholder Solutions
(604) 608-0824 or Toll Free: (866) 801-0779
ir@vanguardsolutions.ca
Form 10-Q for GEOVIC MINING CORP.
12-Nov-2010
Quarterly Report
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following discussion and analysis should be read in conjunction with "Management's Discussion and Analysis of Financial Condition and Results of Operations" contained in our Annual Report on Form 10-K for the year ended December 31, 2009 as well as with the financial and related notes and the other information appearing elsewhere in this report. As used in this report, unless the context otherwise indicates, references to "we", "our", "ours" and "us" refer to Geovic Mining Corp. and its subsidiaries collectively.
Overview
This Management's Discussion and Analysis ("MD&A") is intended to provide an analysis of our capital resources and liquidity at September 30, 2010 and financial results of operations for the three and nine months ended September 30, 2010 compared to the prior year periods. All amounts are presented in U.S. dollars unless indicated otherwise. Reference should also be made to the financial statements filed with this report and the Company's other disclosure materials filed from time to time on www.sec.gov or the Company's website at www.geovic.net .
Business
We are engaged in the business of exploring and developing a cobalt, nickel, and manganese mining project in Cameroon through our majority-owned (60.5%) subsidiary, Geovic Cameroon, PLC ("GeoCam"), a financially dependent public limited company duly organized and incorporated under the laws of the Republic of Cameroon. We also engage in other exploration, property acquisitions and investments in other minerals that we believe would provide high-quality diversification opportunities.
Our future success will be largely dependent on our ability to finalize, and secure financing for, a development plan to mine and process the mineralization in GeoCam's Nkamouna and Mada deposits (together, the "Nkamouna Project"), the first of several deposits we have located on the Cameroon Properties. A feasibility study on development of a cobalt-nickel mine and mineral processing facility, delivered in November 2007, estimated that total capital, pre-opening and initial operating expenses for the Nkamouna Project in Cameroon would be approximately $397 million. An optimization study by other outside consultants to review and improve the efficiencies was completed in September 2008 ("2008 OS") and estimated total capital construction costs (exclusive of escalation) and pre-production operating expenses at approximately $379 million including additional processing equipment required to recover manganese carbonate. In addition, working capital required during startup and commissioning was estimated at $38 million. We anticipate that the FSU estimate of total capital, pre-opening and initial operating expenses will be significantly higher than these earlier estimates, and will be an increase of at least $100 million or more.
The Company and noncontrolling interests of GeoCam concluded in the fourth quarter of 2008 that debt and equity financing and commencement of construction at the Nkamouna Project would be delayed indefinitely due to worldwide financial turmoil. While delaying the construction and financing process, we reviewed and revised technical and metallurgical aspects of planned metal processing at the Nkamouna Project. In December 2009 GeoCam engaged a consulting firm to prepare the FSU which is expected to be completed in late 2010. Spending activity has been limited to expenditures expected to enhance the value and ultimate development of the Nkamouna Project. We took these actions because we concluded that the operating results forecast in the 2008 OS would not support financing, particularly under the turbulent late-2008 economic conditions. Such conditions have historically been accompanied by lower demand and falling prices for certain commodities. Cobalt prices rose moderately from late 2009 through the second quarter 2010 and stabilized in the third quarter.
We plan to continue this cautious approach until we are reasonably satisfied that Nkamouna Project debt and equity financing of required amounts can be completed.
We had consolidated cash and cash equivalents of approximately $35 million at September 30, 2010, of which $33 million was held in the U.S. We do not plan to raise debt or equity capital until 2011 at the earliest.
Financing to develop the Nkamouna Project will be dependent on numerous additional factors affecting the expected economics of the Nkamouna Project, including: completion of the FSU with conclusions that the Nkamouna Project is feasible from a financial standpoint and would support project debt financing incurred to develop the mine and build processing facilities and related infrastructure; our success in raising our portion of required equity for project financing, availability and cost of capital, market conditions and demand for the metal products to be produced, satisfying lenders that mineral processing and the financial returns forecast in the development plan will be achievable from a technical standpoint, arrangement of metal sales agreements and the pricing and terms of such agreements, cost trends and availability of mining and processing equipment and operating materials and services necessary to develop and operate the properties, existing environmental and reclamation commitments, compliance with any additional government requirements or approvals associated with project development and operation, political unrest, geopolitical developments, and the relative competitive position of existing and prospective cobalt and nickel projects worldwide. Other significant factors affecting development of the Nkamouna Project include operating the Nkamouna Project through GeoCam as a separate Cameroonian entity, GeoCam's ability to recruit, train and retain a stable local workforce and qualified mining professionals to manage mine development, construction and operation, and the logistical challenges of operating the project in a relatively undeveloped, remote area in Cameroon.
We are the majority shareholder of GeoCam; however, as a matter of policy, we do not take major strategic actions at GeoCam without general concurrence by the other shareholders. We view a good working relationship with the other shareholders of GeoCam as imperative to the future success of the Nkamouna Project. Two of five GeoCam directors are nominated by the other shareholders.
Table of Contents
Capital Resources and Liquidity
At September 30, 2010 we had approximately $35 million of cash and cash equivalents on a consolidated basis, a decrease of approximately $14.2 million from December 31, 2009 and $4.7 million from June 30, 2010. During the three and nine months ended September 30, 2010, approximately $2.1 million and $4.4 million in additional capital was paid to GeoCam by the noncontrolling interest. Our cash is invested in U.S. dollar ("US$") deposits and highly liquid money market funds, and in the Cameroon branch of a large international bank. The money market funds in which we invest have not experienced losses during the recent financial crisis.
We do not anticipate generating revenue until operations at the Nkamouna Project begin. We believe that our cash resources will satisfy our capital and liquidity requirements through 2011 or longer, depending on GeoCam's level of activity, and subject to our equity funding obligations for the Nkamouna Project.
The GeoCam capital increases are obligated to be funded by the shareholders of GeoCam in accordance with the respective ownership interests prior to the capital increase.
The total GeoCam 2010 budget is approximately $21 million of expenditures. The budget reflects the increased technical evaluation, pilot testing and related expenses associated with the FSU, all currently underway and aimed at reducing technical risk, improving estimated economic performance and establishing feasibility of the Nkamouna Project.
Any future project debt financing for the Nkamouna Project will likely require GeoCam and its shareholders to furnish at least 40% of total estimated capital, cost overruns and initial operating costs. Accordingly if the Nkamouna Project is to be developed, we expect to be obligated to contribute our proportionate share of capital prior to funding of project debt financing. Based on the current capital cost estimates for the Nkamouna Project, we will not have sufficient cash available to satisfy this obligation at the time it will be required. Our ability to raise required additional capital for this purpose will depend on a number of factors that are partly or wholly outside of our control, including the status of world-wide financial, commodity and other markets, which could make it difficult for the Company or the noncontrolling interests to obtain the required equity and any related debt financing. Terms of such financing, if available, may be dilutive to present stockholders.
In December 2009, we engaged a financial advisor to assist with the preparation of and planning for project financing, consideration of early-stage efforts to locate potential strategic investors and product purchasers, and related activities. During 2010 we have met with various large international businesses that have indicated an interest in future off-take from the Nkamouna Project.
We expect our 2010 general and administrative expenses in the United States to total approximately $7 to $8 million and anticipate up to $3.5 million for acquisition and exploration of mineral properties, or investment in other resource entities, in the United States and elsewhere. We expect that a significant portion of our cash resources will be expended or committed for these purposes through 2010 or later and that our cash balances will continue to decrease from quarter to quarter.
Based on our current planned 2010 expenditures, we anticipate our cash and cash equivalents will be approximately $25 to $26 million at December 31, 2010.
Neither the Company nor GeoCam has any material debt or other similar obligations or commitments, except as disclosed, and we believe that our present capital resources will be sufficient to satisfy the capital and liquidity requirements described above through at least the end of 2011. We have no standby financing arrangements currently in place.
Results of Operations
Nine Months Ended September 30, 2010 Compared to Nine Months Ended September 30, 2009
The Company had no revenue and incurred losses from operations during the first three quarters of 2010 and 2009, and has had no revenue from operations since inception. The net loss attributed to the Company increased approximately $0.6 million in the first nine months of 2010 compared to the first nine months of 2009 due primarily to increases in exploration costs. The 2010 exploration costs increased by $3.3 million compared to 2009 which includes property evaluation costs in GeoCam increasing by $3.7 million in 2010, mainly due to the feasibility study work, pilot process testing and related costs. These increases were partly offset by the settlement of two disputed supplier accounts in 2010 which resulted in the reversal of approximately $0.6 million of accruals from prior years. Exploration office costs of GeoCam decreased $0.3 million in 2010.
General and administrative expenses in the United States decreased $0.7 million in the first nine months of 2010 compared to 2009. The decrease is mainly due to $1.0 million lower accounting, consulting and information technology related costs and $0.1 million lower acquisition related due diligence costs. These were offset by an increase in financial advising fees of $0.4 million and $0.3 million related to additional staff.
Depreciation was $136 higher in 2010 due to the addition of assets and the timing of the additions.
Interest income was $104 lower in 2010, reflecting a significantly lower interest rate earned on our cash and lower cash balances.
Table of Contents
As an exploration stage company, we have charged our exploration and pre-construction expenses incurred for GeoCam to operations in the periods incurred and no such expenditures have been capitalized. We expect to continue this practice until a final development and mining plan is adopted and project financing is committed. Once we begin to capitalize expenditures at the Nkamouna Project, our results of operations for financial reporting purposes during periods before mining and processing activities begin may be affected.
Three Months Ended September 30, 2010 Compared to Three Months Ended September 30, 2009:
The Company had no revenue and incurred losses from operations during the third quarters of 2010 and 2009, and has had no revenue from operations since inception. The net loss attributed to the Company increased approximately $1.2 million in the third quarter of 2010 compared to the third quarter 2009. Exploration expenses increased by $2.3 million in the quarter compared to the year earlier period, which consists mainly of increases in exploration costs in Cameroon, including increased property evaluation expenses of $1.7 million in the quarter over the third quarter of 2009 due to the feasibility study work, pilot process testing and related costs.
General and administrative expenses in the United States decreased approximately $0.2 million in the quarter, when compared to the third quarter of 2009. The decrease is mainly due to $0.2 million lower acquisition related due diligence costs.
As an exploration stage company, we have charged our exploration and pre-construction expenses incurred for GeoCam to operations in the periods incurred and no such expenditures have been capitalized. We expect to continue this practice until a final development and mining plan is adopted and project financing is committed. Once we begin to capitalize expenditures at the Nkamouna Project, our results of operations for financial reporting purposes during periods before mining and processing activities begin may be affected.
Off-Balance Sheet Arrangements
We have no off balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures, or capital resources.
Safe Harbor Statement
Certain statements contained in this report (including information incorporated by reference) are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are intended to be covered by the safe harbor provided for under these sections. Our forward-looking statements include, without limitation statements with respect to the expected completion of the feasibility study update for the Nkamouna Project; our expectations regarding capital required prior to production at the Nkamouna Project; requirements for additional capital; anticipated terms and requirements under future project debt financing arrangements; anticipated expenditures in 2010; our anticipated cash position at the end of 2010; and our plans with respect to future debt and equity financing.
Where we express an expectation or belief as to future events or results, such expectation or belief is expressed in good faith and believed to have a reasonable basis. However, our forward-looking statements are subject to risks, uncertainties, and other factors, which could cause actual results to differ materially from future results expressed, projected, or implied by those forward-looking statements. Important factors that could cause actual results to differ materially from such forward-looking statements ("cautionary statements") are disclosed under "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2009 and include the results of the feasibility study update; the availability of financing on acceptable terms or at all; actual results of current exploration activities; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; future prices of metals; possible variations in ore reserves, grades, or recovery rates; labor disputes, delays in obtaining governmental approvals or changes in governmental laws and regulations; delays in the completion of development or construction activities and other factors as described herein. Many of these factors are beyond our ability to control or predict. Given these uncertainties, readers are cautioned not to place undue reliance on our forward-looking statements.
All subsequent written and oral forward-looking statements attributable to us or to persons acting on our behalf are expressly qualified in their entirety by the cautionary statements. We disclaim any intention or obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.
Recent article from African Business Journal:
Championing cobalt in Cameroon
When TABJ spoke with Geovic Mining Corporation’s CEO, Jack Sherborne, in July 2009, he was hopeful that cobalt would be “a star performer of the 21st century,” in which case the company was well-positioned to capitalize.
We asked if this was still the case, and Sherborne’s answer was a resounding “yes.”
“It’s clear the internal combustion engine isn’t going to be the primary global transportation solution of the future,” he states. “There is a major shift underway toward hybrid and electric-only vehicles that use rechargeable batteries. There is a lot of cobalt in these batteries, which will power the cars of the future. Thus, it appears likely that cobalt will be a very important industrial element for decades to come.”
Work at Geovic’s Nkamouna cobalt project in Cameroon is coming along very well and, although Sherborne says you can “never make as much progress as you’d like,” progress over the past year speaks for itself. From approaching completion of the final feasibility study, to working toward securing financial backing, to preparing to commence construction, we have a lot to catch up on with the company committed to putting Cameroon on the global mining map.
Updating Nkamouna feasibility study
In late 2009, Geovic hired Lycopodium Minerals Pty. of Perth, Australia to update the Nkamouna Feasibility Study. This update commenced in January of this year, and “is expected to be completed in the fourth quarter, which we are very much looking forward to,” Sherborne says.
“Moreover, in late 2009 we also engaged Standard Chartered Bank of London, UK, to be our financial advisor, to help us with all the issues related to financing the project.”
Standard Chartered, which has a long, storied history working with African mining projects, is providing a myriad of advisory services, particularly regarding the potential for off-take agreements with Asian industrial companies, as well as financing arrangements that could be tied to them. The updates to the Feasibility Study incorporate numerous changes Geovic has made to project chemistry and processing, as well as other streamlining efforts to improve overall efficiency and reduce project risk. Geovic announced a 97 per cent increase in Nkamouna’s Measured & Indicated Resources in late 2009, and accordingly will incorporate this data into the Final Feasibility Study.
“Those results, some of which have already been published, have extended the project’s resources considerably,” Sherborne says.
“The updated reserves will certainly be more substantial than they were before, although we really aren’t lacking for material to put through the processing plant. Nevertheless, they look much more attractive from the standpoint that with a bigger reserve base, we can be more selective earlier on, running higher grade material through the processing plant and thus materially improving project economics.”
The updates have also allowed the company to plan for operation over many more years, offering greater project flexibility.
Regarding the Lycopodium project update, “mostly they’re incorporating the pilot plant test work performed this summer by Hazen Research, also based here in Colorado,” Sherborne says.
“They’re still performing those tests, but for the most part it’s done, at least to the extent that Lycopodium has started work on the engineering aspects of the Project.”
With Geovic’s efforts moving full-steam ahead on all fronts, there is, of course, a looming milestone that will signify the next stage for Nkamouna.
Considering construction
“That’s always the question people want to know—when will construction start?” Sherborne says, pointing out that however many targets you set, there are always going to be unplanned surprises that try to thwart your timeline.
“Nonetheless, we aim to commence some limited construction activity before the end of this year,” he says. “However, major construction will probably have to wait until the first half of 2011, once we can get project financing completed.”
In addition to firming up off-take agreements, which Sherborne highlights as being “absolutely essential to the project,” Geovic is looking forward to initiating mining in Cameroon.
“They’ve never had a mining industry. They’ve got substantial resources in the country, particularly bauxite and iron ore, and thus are very enthusiastic about attracting foreign investment to develop these projects. Our modest-sized mining project is leading the way,” he says.
“We’re extremely enthusiastic to get started, as is the state investment corporation (SNI, which controls 39.5 per cent), and hopefully we’ll be able to do so in the very near future.”
It is important to differentiate between mining for cobalt and other metals such as gold, iron ore, and copper. Sherborne explains that unlike those projects, where you mine as much ore as you can profitably handle, cobalt is an altogether different animal. Geovic has to be exceptionally aware of global supply/demand dynamics, as more than 90 per cent of the world’s cobalt is mined as a by-product to nickel and copper mines from a variety of geographic regions such as the Democratic Republic of Congo.
“Those mines are not driven by the cobalt market per se. However, we will be a primary producer, so we can work together with consumers to make sure we produce at a rate consistent with market demand—and that’s a lot trickier than just producing at whatever rate suits us,” he says.
“That’s a key aspect in advancing this project; trying to obtain off-take agreements that recognize the nuances of the (roughly 60,000 tonne/year) cobalt market.”
Geovic recognizes this extremely well. So well, in fact, that numerous trading and industrial companies have started to pay due attention to their work at Nkamouna, opening new possibilities for financing, off-take agreements, and beyond.
Cobalt, Cameroon and construction
By year end, Geovic expects to have completed the updated Feasibility Study, and there are plenty of people watching for the results.
“We’ve had a lot of discussions with companies from the Far East related to off-take agreements, and some of those discussions tie in financing schemes as well. There’s a lot of interest amongst the major companies from China, Korea, and Japan,” Sherborne says. Moreover, “most all of these companies are keen to purchase the nickel and manganese we will be producing as by-products as well.”
These companies tend to be scouting out long-term mineral supplies and, perhaps, we ask, will we see project financing and/or off-take announcements in due course?
“It’s not inconceivable that we’ll have something useful to tell you about these discussions in the next few months,” Sherborne says.
Separately, Geovic has taken great strides with its political and humanitarian partnerships over the past decade, and as a result it is not surprising to see that its work with the Government of Cameroon continues to impress.
“Often working with government entities on mining projects is a daunting endeavour. We have had our ups and downs, but are becoming much better at getting along,” Sherborne says. “[Better] to the point, both partners understand that Nkamouna can be advanced in both of our interests when we share a common vision. They’ve taken the time to thoroughly understand what we’re doing, and actually get involved in helping us.”
With a nod to the New Caledonia Heavy Mineral Sands project that Geovic is currently putting together, set to hit news wires in the coming months, and a deep breath as we consider how promising Nkamouna is currently looking, one year on it looks like Geovic is stronger than ever. Its work with Lycopodium and Standard Chartered Bank, its understanding of the cobalt market, the updated reserves, international attention to the exploding market for hybrid and electric-only vehicles, and a quest to advance mining in Cameroon are all stellar signs that this is the cobalt miner to watch.
For the week so far: +19%!!!
Just noticed GMC.TO up over 14% today
BIG day today... 10day ave. vol. 54K 84K today...
PAL did it when they went on maintainance for their big mine. Diversification helped in this case. I'm sure Geovic sees potential.
I agree gs, still I hope some details come out. It takes a lot of cash to bring a gold mine on line. I would sure rather see the cobalt come on line but I agree that long term it is exciting.
b4
This is interesting news. Although I invested in Geovic over a year ago strictly for their Cobalt it won't hurt to add a little gold to their portfolio.
Geovic Acquires Gold Exploration Permits in Whetstone Mountains,Arizona
Nov 5, 2010 07:31:17 (ET)
DENVER, COLORADO, Nov 05, 2010 (MARKETWIRE via COMTEX) -- Geovic Mining Corp. (GVCM, Trade ) ("Geovic" or "the Company") is pleased to announce the acquisition of 71 exploration permits on a 66.5 square mile area in the northwest Whetstone Mountains of Arizona, specifically in Pima and Cochise Counties.
During a 2009-10 sampling program, Geovic discovered surface gold mineralization discontinuously along a nine-mile trend, in what appears to be a "hot-springs", quartz-hosted, micro-fine gold deposit in regional detachment faults. Such settings tend to be excellent sites for hosting shallow, bulk-tonnage disseminated gold deposits.
The gold identified to date is recognized as a high level, low temperature gold-arsenic-antimony-mercury assemblage of near surface emplacement. The mineralization is closely associated with extensive silica flooding and veining, and related clay alteration and replacement of sediments, volcanics, and older basement rocks.
The Company knows of no historic gold exploration in the area, and thus sees the opportunity to explore for a material gold deposit in a virgin district.
The Company is developing an initial exploration program, expected to be initiated in 2011 upon receipt of an appropriate level of financing.
Geovic Mining Background
Geovic is a U.S.-based corporation whose principal asset is 60.5% ownership of a significant cobalt-nickel-manganese deposit in the Republic of Cameroon, Africa. Additional Company initiatives and project information may be found on the websites www.geovicenergy.com , www.sedar.com , and www.sec.gov .
Bid is building - this stock is soooo under the radar.
Appears ready to breakout.
Its all aboutt he financing and I bet a deal is imminent
Interesting facts on Cobalt from interview The Energy Report, Gordon Monk of Performance Capital Advisers Apr 2010:
Gordon Monk: There are a number of sectors that I'm interested in. There's been a tremendous move of capital to wind in recent years. Certainly solar is another area that's also gaining a lot of attention. One of the areas that I'm focused on right now would be hybrid electric vehicles, specifically the batteries containing cobalt.
TER: There have been some failures with batteries containing cobalt. Some reports indicate there is a small possibility of those batteries catching fire. Do you have some information that you could share with us on this topic?
GM: As I understand it, the problems associated with those batteries had to do with overheating. The chemistry was such that the batteries would release a small amount of oxygen, which then creates the chance of possible combustion. There's been a lot of technology focused on the problem. Modern batteries now are equipped with microchips that control the discharge conditions of batteries. There have also been additives to the batteries which have more or less solved the problem. With the problems being solved, the benefits of using those batteries far outweigh the negatives of the past.
TER: Do you see cobalt continuing to be used in these types of batteries?
GM: Oh, absolutely. A report by J.P. Morgan suggests that the current output of around 740,000 units is going to increase to 12.9 million by 2020. So I think that in itself is a pretty strong indication that cobalt is here to stay.
TER: What do you find interesting about wind and solar companies? Their potential?
GM: Yes, it falls into the whole movement to green. In recent years there's just a tremendous focus on the environment and the environmental problems associated with conventional energy. I can speak to oil and gas and coal, the usual culprits. I find solar and wind fascinating because they solve a lot of the problems associated with greenhouse gas emissions. The capital flows that are going into these areas suggest to me that they are here to stay. I think there are tremendous opportunities in the space.
TER: How is cobalt connected to solar and wind technologies?
GM: Cobalt plays a role in renewable solar panel technology and wind generation. Cobalt is also used as a super alloy in wind turbines.
TER: So you see increased demand for cobalt because of wind and solar technologies, in addition to batteries?
GM: Yes, because of the batteries and because of the green movement in general. Cobalt is not just found in batteries and that's something that's key. I think a lot people misunderstand that. Batteries currently account for around 26% of the market for cobalt. Super alloys, which include turbine blades and heat-resistant steel, account for another 23% to 25% of the market. It's underappreciated about what it can do.
Thanks swayne, you should start a board. Looks like you have the experience. PM me if you don't know how. Appreciate the tip.
b4
FWIW - not pumping ...
You may want to keep an eye on GWMGF - just bought in today.
Great Western Minerals Group - mine rare earth metals.
Thanks swayne, nice find!
b4
CHICAGO -- Cobalt and molybdenum trading have made “an encouraging start” in the six months since it was launched on the London Metal Exchange on Feb. 22, exchange officials said Monday.
Total notional value of contracts for the two minor metals traded in the first months was put at $230 milliion. Cobalt volume so far has been 4,047 or 4,047 tonnes valued at $161 million and totaled 427 tonnes in the first full months but has been over 800 tonnes per month since May when a peak of 893 tonnes were traded.
Molybdenum volume was put at 321 lots or the equivalent of 1,926 tonnes valued at $69 million. Volumes have swung widely from month to month with 480 tonnes traded in the first full month followed by two months under 200 tonnes and a peak of 516 tonnes in June followed by 216 tonnes in July. For August by Friday trading volume of 348 tonnes had been tallied, officials said.
The LME’s bigger base metals contracts traded a total of 111.9 million lots valued at the equivalent of $7.4 trillion last year, or $29 billion on an average business day.
Executives said they considered volumes, liquidity and open interest for the minor metals to be building well and said they were particularly encouraged by the progress of cobalt. At the close of trading Thursday, cobalt market open interest, which is published two days later by the exchange, had grown to 406 lots (406 tonnes) and open molybdenum open interest was 41 lots or 246 tonnes.
For the week, nearly +22%!
holding strong
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Geovic Mining Corp (GMC) is committed to sustainable development and social responsibility. By this we mean that our long-term welfare is directly related to the welfare of the people and communities in the areas where we operate. In the end, these are the people who should be the main beneficiaries of our cobalt mining activities.
We expect to leave behind the capacity for a better future for our hosts. This commitment encompasses the following values:
GMC is also committed to excellence with regard to the environment. We recognize and embrace the concept that sound environmental management is essential for our business.
Understanding, minimizing and mitigating all environmental impacts, as well as using all resources prudently and efficiently, is critically important to GMC. We pledge to conduct our activities in a manner that safeguards all the resources under our stewardship, whether they are minerals, forests, water, land or air.
The best way to reduce the effects of our operations on the environment is to disturb as little of it as possible. We will implement sustainable development initiatives that meet present needs without compromising those of future generations.
In Cameroon, GMC is developing an understanding of how the interplay of social, ideological, environmental and economic factors affects the fragile balance of the country's ecosystem. GMC is developing its GeoAid (“Earth Aid”) program to ensure that sustainable and high quality environmental and socio-humanitarian standards are an integral and essential component of the Company's mining operation. This program is more fully outlined in the document "Geovic, GeoAid and the Environment."
Wade Nesmith Chairman | John E. (Jack) Sherborne Chief Executive Officer, Director |
David C. Beling Executive Vice President, Chief Operating Officer | Barbara A. Filas Executive Vice President, Corporate Development & Chief Administrative Officer |
William A. Buckovic Executive Vice President, Exploration, Director, Founder | |
Greg Hill Senior Vice President, Chief Financial Officer | Gary R. Morris Senior Vice President, President Geovic Mineral Sands |
Conrad Houser Senior Vice President, President, Geovic Energy | Alan W. Peryam Senior Vice President, General Counsel |
Andrew C. Hoffman, CFA Vice President, Investor Relations | |
Diane Hartnett Corporate Controller | Shelia I. Short Corporate Secretary |
Michael Goldberg Director | John T. Perry Director |
Robert J. (Don) MacDonald Director | Gregg Sedun Director |
Michael T. Mason Director |
Greg Hill Chairman | Richard Howe General Manager, Director |
Moger Jean Claude Ayem Director | David C. Beling Director |
Ambroise Ondoa Onana Director | |
Anita Efoua Mbozo'o Deputy General Manager |
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Pierre-Marie Noah Procurement, Logistics | |
Patrick Holmes Finance, IT |
Corporate Information for | Geovic Mining | |
Corporate Head Office Geovic Mining Corp Telephone: 303.476.6455 Operations Office Geovic Mining Corp Exchange: TSX Exchange | Registered Office 2711 Centerville Road, Suite 400 Auditor Transfer Agent Email: service@computershare.com |
Know the Management | Know the News | |
http://www.geovic.net/biographies.php | http://www.geovic.net/news.php |
Cobalt is an element that has many diverse and critical uses. In most applications, substitution for cobalt yields lower product performance. Below are cobalt’s most common usages.
2007 Global Cobalt Use(1) | % of Market |
Batteries - Cell phones, computers, hybrid vehicles, portable tools, etc. | 25 |
Super Alloys - Turbine blades, mainly jet engines | 22 |
Chemicals - Includes pigments and dyes | 26 |
Wear Resistant Alloys - Hard facing and cobalt carbide | 12 |
Catalysts - Includes Gas-to-Liquid conversions | 9 |
Magnets - High performance applications | 6 |
Cobalt in rechargeable batteries is the fastest growing use, and notably in 2007 the percentage of cobalt use for rechargeable batteries rose to 25% of total cobalt demand from 22% in 2006. Nickel metal hydride and lithium-ion batteries both contain cobalt and are used in hybrid electric vehicles (HEVs), computers, cell phones, portable tools, audio/visual units, and numerous electronic devices. The fastest growing segment of battery applications is for HEVs, which reduce air pollution and fuel consumption by at least 50% compared to conventional vehicles. The HEV “plug-in” option is even more environmentally friendly, and includes an extra cobalt-bearing battery that can be charged from electrical outlets and achieve fuel economies that exceed 100 miles per US gallon. In the US, roughly one-third of all CO2 emissions come from transportation sources.
The Toyota Prius HEV was named 2004 Motor Trend Car of the Year and 2005 European Car of the Year. The one millionth unit was sold in April 2008, and Toyota estimates sales of one million hybrid vehicles annually "as early as possible in the 2010s". In the next few years, the Company plans to offer all Toyota and Lexus models as hybrids. General Motors, Ford, Daimler-Chrysler, Mercedes, and others are attempting to catch up with Toyota’s hybrid success. Nearly all current HEVs use nickel-metal hydride batteries that contain about 22 pounds of nickel and 3 to 5 pounds of cobalt. Lithium-ion batteries containing 5 to 7 pounds of cobalt and little or no nickel are expected to dominate future HEV markets because they charge in minutes rather than hours and offer many other economic and technical advantages. Global production of HEV’s in 2007 was about 400,000-500,000 units, and is estimated to increase to 8 million units by 2015(2), thereby increasing annual cobalt demand by nearly 22,000 tonnes/year. In 2006, the world produced 69 million conventional cars and light trucks, and is expected to produce over 80 million units by 2015.
Cobalt Supply and Demand
The cobalt market is dynamic but small in comparison with other base metals. Consumers purchase cobalt through negotiated agreements, bids, and open markets from producers, traders and to a lesser degree, government stockpiles and private inventories. Approximately 48% of the world’s 2007 cobalt mined was a byproduct of nickel from sulfide and laterite deposits. An additional 37% was produced as a byproduct of copper operations, mainly in the Democratic Republic of the Congo (DRC) and Zambia. The remaining 15% of cobalt mining came from primary producers.
Several new projects are deemed to be sufficiently advanced and financed to produce significant quantities of cobalt in 2009-10 (mainly as a byproduct), including those listed below. However, until that time cobalt demand is expected to significantly exceed production due to limited new production and the absence of stockpiles. Additional projects may also come on stream in the intermediate term, however political and logistical issues in the DRC may endanger the viability of some of the larger projects.
Major New Projects | Start Up Year |
| Annual Prod. |
Tenke Fungurume | 2009 | DRC | 4,000 |
Talvivaara | 2009 | Sweeden | 2,500 |
Goro | 2009 | New Caledonia | 1,500 |
Kamoto | 2010 | DRC | 1,000 |
Katanga | 2011 | DRC | 1,000 |
Camec | 2011 | DRC | 1,000 |
Nama | 2011 | Zambia | 1,000 |
Idaho | 2011 | U.S. | 1,000 |
Total | n/a |
| 13,000 |
Cobalt consumption in 1995 was only 24,000 tonnes, but grew to 60,800 tonnes in 2008, for a compound annual growth rate (CAGR) of 7.4% for the 13-year period.
Geovic's preliminary estimate for 2009 world demand is 52,600 tonnes, or a 13% decrease from 2008 demand, principally due to the impact of the global economic crisis in the first half of the year. On the supply side, Geovic estimates that 2009 cobalt production will fall by approximately 5% compared to 2008, to around 53,000 tonnes.
In the chart below, actual world supply and demand data from external sources are used through 2008, whereas the projections from 2009 through 2015 are based on an 11% CAGR (principally due to the "catch-up effect" following the aforementioned significant demand decline in 2009). The combination of production from existing mines and new production is expected to yield 10% CAGR between 2008 and 2015, however the aforementioned demand growth is expected to yield a relatively tight supply/demand balance during that period.
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Source: Actual supply and demand by USGS, The CDI and other independent research groups. Projections after 2008 were developed by Geovic. |
Roskill Consulting, an international group that researches mineral industry information, estimates growth in demand by 2011 in a most likely case to be 72,500 tonnes(3). However, this forecast could be considerably understated given the exponential growth in batteries for hybrid vehicles and new demand from emerging markets such as China and India.
Global cobalt consumption by country and the increase for the four-year period ending 2006 is shown below(4).
Tonnes Cobalt
Country | 2002 | 2006e | % Change |
Europe | 11,100 | 13,730 | 24 |
Japan | 7,250 | 12,300 | 70 |
China | 4,300 | 11,000 | 156 |
USA | 9,250 | 11,450 | 24 |
Other | 5,200 | 7,520 | 45 |
Total | 37,100 | 56,000 | 51 |
The table below shows approximate production of refined cobalt and reserves and resources by country.
Refined Cobalt Production in 2007 & Reserves(4).
Country | Mine Production | Tonnes x 1000 | Tonnes x 1000 |
Australia | 3,700 | 1,500 | 1,800 |
Brazil | 1,150 | 29 | 40 |
Belgium | 2,900 | ||
Canada | 5,650 | 120 | 350 |
China | 13,250 | 72 | 470 |
DRC | 600 | 3,400 | 4,700 |
Cuba | 3,900 | 1,000 | 1,800 |
Finland | 9,100 |
| |
France | 300 | ||
India | 1,000 | ||
Japan | 1,100 | ||
Morocco | 1,600 | 20 | n/a |
New Caledonia | 0 | 230 | 860 |
Norway | 4,000 | ||
Russia | 3,600 | 250 | 350 |
South Africa | 250 | ||
United States | 0 | 33 | 860 |
Uganda | 700 | ||
Zambia | 4,600 | 270 | 680 |
Other |
| 180 | 1,100 |
Total | 53,500 | 7,100 | 13,000 |
*includes reserves plus measured and indicated resources |
There are no published statistics on world use of cobalt scrap, but the USGS estimates 2006 U.S. scrap consumption was about 25% of reported US consumption.
Prices
Cobalt prices fluctuate significantly in response to world events and changes in the overall supply/demand balance. Historically, cobalt prices have had limited transparancy, although quotes can be found from sources such as Platt's Metals Bulletin and www.minormetals.com. In late 2009, or early 2010 the latest, the London Metals Exchange (LME) plans to launch the first-ever cobalt futures contract, which should materially improve such transparancy.
As of April 2009, the 3-year and 20-year average prices of 99.8% cathode cobalt are approximately $18/lb. and $28/lb, respectively.
Footnotes
Much of the project and cobalt market data in this report were obtained from the four sources below:
(1)The Cobalt Development Institute, www.thecdi.com.
(2) Credit Suisse Metals & Mining report, 04-02
(3) The Economics of Cobalt, 11th Ed., 2007 by Roskill Information Services Ltd., www.roskill.co.uk
(4) USGS website, http://minerals.usgs.gov/minerals/pubs/ commodity/cobalt/.www.sfp-metals.co.uk
References
Cobalt market data, publications and related services may also be obtained from other
sources, including:
Disclaimer
This document contains certain forward-looking statements and projections estimated by Geovic personnel regarding future production, metals markets, competition, capital spending, earnings, cash-flow, commodity prices, resources and other considerations. The statements are based upon Geovic’s current expectations and beliefs, and are subject to a number of known and unknown risks and uncertainties that could cause actual results to differ materially from those presented herein. Any use of this document is at the sole risk of any party that so relies.
Geovic Energy, a wholly owned subsidiary of Geovic Mining Corp. (TSX.GMC, OTCBB.GVCM), aims to become a major energy and metals mining company, targeting project opportunities in the U.S. and international markets.
The Company is developing uranium mining projects in the United States, having leased uranium properties in the Cheyenne-Denver Basin of northeastern Colorado and the Wyoming Red Desert Region, as well as gold/uranium properties in the Whetstone Mountains near Tucscon, Arizona, and three oil and gas projects in Wyoming.
Moreover, other mining interests are being pursued in various metals, mining, and energy markets worldwide.
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