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Mano River (MNO.V) Liberia gold Production next year
Mano River Hopes To Be Producing Gold In Liberia By End 2007.
Minesite -- Date: June 17, 2006
The news that AIM and Canadian listed Mano River Resources has signed up MODEM Engineering from Johannesburg to carry out a bankable feasibility study at its KGL and Weaju gold projects needs to be put in a historic context. The company listed in September 1998 and the president, Tom Elder, joined in October and immediately went out to Liberia . After studying the work done by artisan miners on hard rock at the King George Larjor project he ordered a drill from England and work started before the end of the year. The focus was on two sections each of around 100 metres in length where the artisans had been mining ore grading 5 to 10 g/t. The second hole, which was drilled in the first quarter of 1999 intersected 16 metres grading 8.8 g/t gold and the results were reasonably consistent thereafter with hole 13 hitting 26 metres at 6.2 g/t.
The gold price, however, was not encouraging at the time . The UK’s goonish Chancellor Gordon Brown was selling our gold reserves regardless of the impact on the citizens of poor countries in West Africa. As a result Mano River swiched its focus to diamond exploration and found the first diamondiferous kimberlite pipe in the country in 2000. From 2001 to the end of 2004, however, there was civil strife in the country which was under the rule of the ruthless Charles Taylor and Mano River had to put its activities there on hold.
By 2005 gold exploration work was resumed and the good results continued with an intersection of 37 metres grading 8.45 g/t gold announced last month.. The geology was straightforward, the metallurgy simple and the grades consistently good, so a resource estimate was the next move and the result of this should be announced next month. The feasibility study itself should only take four months to complete so can be anticipated in September. It will cost US$700,000 and will focus on KGL and Weaju, two neighbouring projects in Western Liberia being developed as open pit operations with conventional milling. Supervision of the study for Mano will be the responsibility of Mark Austin, a highly experienced ex-JCI and Placer Dome geologist and former manager of several gold and diamond mines in Africa, who was appointed as vice president operations recently.
The principal focus of the study, which is already under way, will be on the KGL deposit which will be renamed the New Liberty gold mine. A programme is being undertaken to enable the current gold ‘resource’ to be reclassified as a ‘mineral reserve’ and is nearing completion. Metallurgical and geotechnical holes, the latter to assist pit wall design, have already been finished. The study will also include the Weaju gold project which is 30kms to the north east, but still inside the 25 year Bea Mineral Development Agreement licence. Provided the ore from Weaju proves to be of sufficiently high grade it will be trucked to New Liberty Gold Mine for processing, so there will be no need for a separate plant.
If the bankable feasibility proves robust, as expected , it is thought that the project could be in production before the end of 2007, which is very fast indeed. The capital development requirement could be in the region of US$30 to US$40 million to develop mines and a plant capable of producing 60 to 70,000 ounces of gold/year at a cash cost of less than US$250/oz. At the present price of gold this would mean a substantial cash flow which should increase over time as the bankable feasibility study will also allow for plant upgrades to process other sources of ores. The use of “modular” design will be fully investigated, so as to permit increased gold production in the event that further exploration increases the gold reserves.
Mano River presently has some 25,000 sq kms under mineral licence with promising gold prospects in Liberia, Sierra Leone, and Guinea. It also has one, and possibly a second cluster of diamondiferous pipes in Liberia, and joint ventures in place with BHP-Billiton, Golden Star Resources, Navasota, Petra Diamonds, Searchgold and Trans Hex Group. Joint venture partner Trans Hex is now drilling several of the diamondiferous kimberlite pipes found by Mano in Liberia back in 2000 and 2001.
Companies featured in this Story
Mano River Resources Inc (TSX.V-MNO,AIM-MANA)
Petra Diamonds Ltd (AIM-PDL)
Keegan (KGN.V) finds 25.5m@.72g/t, 4.5m@2.89g/t in Ghana
Fri Jun 16, 2006
Keegan Drills New Discovery Hole at Asumura Gold Property
Vancouver, June 16, 2006: Keegan is pleased to announce that reverse circulation drilling at the 8 km long Mangoase Target Area has intercepted 25.5 metres @ 0.72 g/t Au from 16.5-42 metres including 4.5 metres @ 2.89 g/t Au. Keegan is awaiting results from parallel fences on the NE strike of the intercepted zone and is currently moving the core rig to Mangoase in order to more accurately define the structure. Please see www.keeganresources.com for a location map of the Mangoase target area.
The Asumura concession comprises a 210 square kilometer area within the highly prospective Sefwi greenstone belt. Keegan is in the process of completing the first phase of drilling at the 2 km long Wagyakrom, 4 km long Twiapasi, and 8 km long Mangoase target areas. Vincent Dzakpasu, a qualified member of the Institute of Mining and Metallurgy in the United Kingdom is Keegan's QP on the property.
Dan McCoy, president and CEO of Keegan Resources states: "We are extremely excited about the initial results from reverse circulation drilling at Mangoase our largest target area. Our first phase of drilling at Asumura has been very successful, yielding two new discoveries in two entirely separate target areas. We will now focus on integrating the remaining outstanding assays, interpreting the full data set, and planning our next phase of core drilling, which we expect to commence early this fall."
About Keegan Resources
With a primary focus on established gold districts located in stable political environments, Keegan's seasoned exploration and management team have leveraged their collective experience and networks of contacts to efficiently assess, acquire and explore high quality, mid stage, precious and base metal projects. With active exploration programs in Nevada and Ghana combined with an enviable capital structure the company is well positioned to deliver an active, exciting year for its investors.
On Behalf of the Board
Dan McCoy, Ph.D.
President & CEO
For more information please visit the company website at http://www.keeganresources.com or contact investor relations at 604-683-8193 or info@keeganresources.com.
NEW: General Metals (OTCBB:GNLM); Ghana Acquisition Update
[ This Pink Sheets penny stock had a 1 for 20 reverse stock split and two name changes from the (irrelevant) Interactive Multimedia Network, Inc. until 3-05, then the (equally irrelevant) RECOV Energy Corp. until 1-06. See http://www.pinksheets.com/quote/company_profile.jsp?symbol=GNLM
Hmmmm........ The below has the usual discussion of Newmont's concessions as opposed to its own. FL ]
2006-06-14 14:28 ET - News Release
RENO, Nev. -- (Business Wire) -- June 14, 2006
General Metals Corporation (OTCBB:GNLM) is pleased to
announce that it has moved from the Confidentiality Agreement stage announced on May 2, 2006, to the acquisition stage on its proposed Ghana, West Africa gold concessions. We received agreements yesterday that are now under review regarding 2 granted tenements in the famous Sunyani Basin comprising approximately 238 sq. Kilometers, located 400Km NW of Accra and located on the Sefwi belt 40Km west of Ahafo(Newmont) www.newmont.com. This property shares a common boundary with Newmont. The transaction would involve the acquisition of 80% of a Ghana licensed corporation who is already set up to conduct mining activities in the country. High grade surface soil samples ranging from 11 grams of gold/ton to 43 grams of gold/ton have been reported.
Newmont's Ahafo land package contains 11 open pit deposits.
Production began in 2004 with gold cash costs in the $200/ounce range. Newmont is currently developing Ghana into its fifth core district and successfully expanded its reserves from 4.9 million equity ounces in 2002 to 16 million equity ounces by the end of 2004 through their exploration program.
Company President and CEO, Steve Parent said, "Our best hedge against changing gold prices is to position our Company where production costs are closer to $200/ ounce. Ghana presents such an opportunity and we certainly are in good Company." He further commented, "We have a similar opportunity in developing the shallow targets at our Independence Mine in Battle Mountain, which is adjacent to Newmont's Phoenix Mine which contains 8.5 million ounces of gold and 660 million pounds of copper. The 235,000 ounces of gold and 2.5 million ounces of silver targeted in the Independence shallow operation should be able to be recovered in the mid $200/ounce range."
Permitting at the Independence Mine in Nevada is ongoing with SRK Consulting of Reno, NV, handling all permitting and environmental issues. Phase 2 drilling of the north target and the Independence Mine target will commence shortly. 4,000 ounces of gold and 250,000 ounces of silver are contained in already mined mineralized material and is awaiting the start of a heap leaching operation.
Notice Regarding Forward Looking Statements [omitted]
Ghana Must Process Minerals Locally- Says Ghana Veep
Ghanaian Chronicle (Accra)
June 14, 2006
Joseph Coomson
The Vice President, Alhaji Alui Mahama, has said that Ghana would earn more foreign exchange if minerals mined in the country were processed locally before exported.
He said the added value would also create a linkage with the other sectors of the economy leading to creation of jobs, especially in the private sector.
He noted that government would continue to provide the enabling environment and support for the private sector to become the real engine of growth.
The Vice President of the republic was speaking as the guest of honour at the opening ceremony of the 7th West African Mining and Power Exhibition and Conference in Accra yesterday.
Alhaji Mahama said favourable gold prices and the new minerals law have attracted more mining companies into the country.
He praised the mining industry for overtaking cocoa in foreign exchange earnings but cautioned mining companies to be abiding with best mining practices for a cleaner environment.
Ghana recorded a significant increase in all mineral productions in 2005 with gold taking over from cocoa as the leading foreign exchange earner for the country.
Mineral revenue went up from 798 million dollars in 2004 to 995.2 million dollars in 2005, contributing about 13 per cent of the total collection of the Internal Revenue Service in the year under review. Gold production recorded an increase of 63 per cent from 1,794,497 ounces in 2004 to 2,029,218 ounces in 2005 with its export revenue increasing from 731.2 million dollars to 903.9 million dollars.
These were contained in the 2005 annual report of the Chamber of Mines released at its 78th Annual General Meeting held in Accra under the theme, "The Impact of Mining on Local Economy."
The Report said bauxite revenue increased from 11.9 million dollars in 2004 to 18.1 million dollars in 2005, while diamond rose from 26 million dollars to 34.7 million dollars.
Manganese exports realized 39.1 million dollars in 2005, up from 30.2 million dollars the previous year.
The vice president also called for transparency in the utilization of mineral royalties, especially with communities around mines.
On the energy front, the Vice President said Ghana would have a reliable power supply, especially in the mining industry after the completion the West African gas pipeline, as there would be constant supply of gas for powering thermal generators in the country.
On his part, the chairman of the opening ceremony and former president of the Ghana Chamber of Mines, Mr. Kwabena Anaman, said the mining industry in the country is responsible for the implementation of many livelihood and social responsibility projects.
He said Goldfield Ghana sponsored the Black Stars of Ghana with $3million, whiles AngloGold Ashanti financed the $3million-malaria control programme in Obuasi.
He did not leave out the Ghana Manganese Company's support for the University College of Mines, Tarkwa.
Newmont's livelihood projects in Ahafo and Akyem were also mentioned, as they were described as one of the best in the world of mining.
Copyright © 2006 Ghanaian Chronicle. All rights reserved.
Action in Etruscan (EET.TO) today. Big Mali announcement.
Mon Jun 5, 2006
Etruscan Makes New Gold Discovery in Mali West
June 5, 2006, Windsor, Nova Scotia - Etruscan Resources Inc. (EET.TSX) reported that it has made a very significant new gold discovery located 15 kilometers south of the Sadiola Gold Mine, in Mali, West Africa. Gold mineralization has been confirmed in saprolite by auger drilling over an area measuring 2.5 kilometers in length and 300-500 meters in width. The mineralized zone is defined by single sample auger values in saprolite exceeding 0.1 grams per tonne with the highest sample returning 49.6 grams per tonne gold. Deeper multi-sample augering has encountered up to 114.0 grams per tonne gold at a vertical depth of 30 meters. The best intercept to date returned 12 meters of 12.6 grams per tonne and the hole ended at 30 meters depth in mineralization with 10.0 g/t gold over the last 1.5 meters.
Deep augering is limited to a vertical depth of 30 meters or even shallower when bedrock is encountered, and the majority of the holes drilled to date ended in mineralization. A number of holes encountered bedrock at shallow depth and were unable to penetrate the zone. A combined rotary air blast ("RAB") and diamond drill rig capable of drilling to 100 meters depth is expected to be on site later this month in order to assist with the continued evaluation of the discovery.
In 2005 Etruscan completed regional geochemical surveys which confirmed the presence of several low level (25-100 ppb gold) but extensive, kilometer-scale gold-in-soil anomalies at Diba, Kobokotosou and Keneibandi. Four of these anomalies have now been confirmed with single sample augering. Only the Diba target has been tested by deeper multi-sample augering. Prior to deep augering, the target at Diba measured 2.2 kilometers by 500 meters with a maximum value 3.2 g/t. Dimensions of the second target at Kobokotosou are 0.8 kilometers by 400 meters with a maximum value 1.1 g/t gold, and the third and fourth targets at Keneibandi measure 1.4 kilometers by 300 meters with a maximum value 1.1 g/t gold and 1.2 kilometers by 300 meters with a maximum value 1.5 g/t gold. Etruscan controls the entire 30 kilometer strike length over which these anomalies occur.
Don Burton, Etruscan's Vice President Exploration and Chief Operating Officer stated, "The discovery at Diba is the most exciting exploration development that Etruscan has delineated in its 12 year history of exploring in the Birimian of West Africa. Diba has all the early indications of being a very significant new gold discovery and may well be just the first of several new deposits in Mali West. Historically the Sadiola-type deposits occur on the east side of the Mali West Shear Zone but all four of these targets are on the west side of the shear. Diba is something new and we need to drill it to understand exactly what the geological context is and how big it might be."
The discovery is a result of a systematic regional exploration program that has been carried out over the past two years on Etruscan's principal land package in Mali West. The land package comprises 5 permits covering 639 km2 and is contiguous with the Sadiola land holdings of AngloGold-Ashanti. In addition to Diba (100 km2 permit granted February 2005), Etruscan holds interests in Kobokotosou (174.5 km2 permit granted May 2003, renewal in progress), Keniebandi (130 km2 Authorization of Exploration, permit application in progress September 2005), Djelimangara (110 km2 permit granted July 2004), Badiazilla (66.2 km2 convention signed December 2005), and Sebessounkoto (58 km2 convention signed December 2005).
All gold analyses were performed by Abilabs Laboratories at Bamako, Mali using standard 50 gram fire assay procedures. K. Kirk Woodman P.Geo., Etruscan's Chief Project Geologist, is the Qualified Person overseeing Etruscan's exploration programs in West Africa.
Etruscan Resources Inc. is a diversified Canadian junior mining company focused on acquiring dominant land positions in district scale gold and diamond belts within Africa. Etruscan has an aggressive exploration strategy and now holds strategic land positions in a number of gold belts covering over 8,400 km2 in five countries in West Africa. The Company also holds a dominant land position in the Ventersdorp alluvial diamond district in South Africa. The common shares of Etruscan are traded on The TSX Exchange under the symbol "EET". More extensive information on Etruscan can be found on its home page at http://www.etruscan.com.
For more information from Etruscan contact:
Richard Gordon, Investor Relations, email: rgordon@etruscan.com Tel: (877) 465-3674 / Fax (902)798-9702
Tony Hayes, email: thayes@etruscan.com Tel: (866) 638-3338 / Fax (905) 468-8407
[ "forward-looking statements" statement omitted ]
Who/Where will fare best in the "upcoming dislocations"? What do you think the dislocations will be? FL
Quote huesos:
South Afirican govt. Moving temporarily for less than ten years. Actually I'm closer to pink but yes, caucasian. I'm not even sure I can get imigrant status. Going primarily to surf so if I can't go there then there are other places. The country has some serious challenges but so do most in the upcomming dislocations.
Which govt? Moving permantly? Are you white? I read a book by a gorgeous Italian photographer who grew up in Kenya, loved it, spoke the languages in her area, etc., but finally moved to Europe in middle-age with much regret. Why? She concluded that, however well intentioned everybody is, and however much you love Africa, the future of Africa is for the black and has no real place for the white.
Beats me. I never understand Birim's price pattern. It was pretty good recently, since November, after years of - yuk.
The recent acquisition of the new Bui licenses was very reasurring to me. My favorite thesis (Bui could be The One) is intact.
See, I liked what happened with Glencar, but it would have been sweeter had I been in BEFORE the bonanza hit instead of just after.
I've always favored Birim's lack of hype over, say, Cassidy's mastery of it. Maybe that was the wrong view (see Goldcorp). Right after I sold long-languishing Cassidy, it doubled fast.
FL
Australia's Troy buying some Birim (BGI.T); Financing deal
MAY 24, 2006 - 09:00 ET
Birim Goldfields and Troy Resources Enter Into a Strategic Alliance, Troy Resources Leads Private Placement by Birim
MONTREAL, CANADA--(CCNMatthews - May 24, 2006) - Birim Goldfields Inc. (TSX:BGI)("Birim" or the "Company") and Troy Resources NL (ASX:TRY)("Troy") are pleased to announce that they have signed a Letter of Intent with the objective of establishing a strategic alliance for the exploration and development of selected projects in Ghana. As part of this strategic alliance, Troy will participate in the private placement in Birim described below and will receive various property rights.
In addition, Birim is pleased to announce a non-brokered equity financing (the "Offering") to raise a maximum of CAD $6,750,000. Pursuant to the Offering, Birim intends to issue up to 12,272,727 units at a price of CAD $0.55 per unit. Each unit will consist of one common share and one-half of one common share purchase warrant. Each whole warrant will entitle the holder to acquire an additional common share of the Company upon the payment of $0.80 per share for a period of 18 months following the closing date. If the 15-day weighted average closing price of the common shares of Birim on the Toronto Stock Exchange exceeds CAD$1.35, Birim will notify the warrant holders who will have 10 business days to exercise, failing which their warrants will automatically expire. As part of this Offering, Troy is acquiring 5 million units for CAD $2.75 million. Proceeds from the Offering will be used to finance the Company's exploration activities in Ghana and for general working capital purposes.
The issuance of any units over and above 8,596,100 units is subject to shareholder approval anticipated at the Company's next Annual and Special Meeting of the Shareholders scheduled for early July. Accordingly, Birim intends to complete the issuance of 8,596,100 units (including the issuance to Troy) as soon as possible and to complete the balance promptly after receiving shareholder approval. Birim has 51,576,604 common shares issued and outstanding. Assuming all 8,596,100 units are issued, immediately after the completion of this issuance, Troy will own approximately 8.31% of Birim's then issued and outstanding common shares (and assuming all of Troy's warrants are exercised, Troy will own approximately 11.97% of Birim's then issued and outstanding common shares). Troy is acquiring the units for investment purposes and may increase or decrease its ownership of securities of Birim depending upon future market conditions.
The shares and warrants forming part of the units are subject to a 4-month hold period.
"The funds raised in the current financing will ensure that Birim will be capable of sustaining an aggressive work program, including extensive drilling, on multiple targets already defined on it's Bui and Sefwi properties. We are particularly pleased with Troy's significant participation in this financing and look forward to co-operating within the strategic alliance. This brings together Troy's highly regarded reputation for rapidly developing profitable low cost mining operations with Birim's considerable exploration experience and quality property portfolio in Ghana", says Vic King, Birim's President.
"This represents Troy's first investment in the West African region exposing Troy to the significant exploration potential of Birim's extensive tenement positions in Ghana. We look forward to developing the strategic alliance with Birim, a well established explorer in Ghana, through its high quality people and prospective exploration portfolio", says Tommy McKeith CEO of Troy Resources NL.
Troy Resources NL is an Australian listed public company with gold mining operations in Australia and Brazil, expected to produce in excess of 100,000oz this year, and exploration properties worldwide including a large tenement position in Mongolia. Troy has about 55.5 million shares outstanding and over A$55 million in cash and investments.
The second largest placee in this financing is African Lion 2 Limited ("AFL2"), a specialist investor in mining and exploration companies with gold and base metal activities in Africa. The shareholders of AFL2 are AuSelect Limited (ASX: AUS), Commonwealth Development Corporation, Proparco, Investec Bank, European Investment Bank and the Botswana Africa Mining Fund.
Birim also wishes to acknowledge the continuing support of Sprott Asset Management, SODEMEX (a subsidiary of the Caisse de Depot et de placements du Quebec) and Royal Bank Investment Management.
Birim Goldfields Inc. is a royalty-based exploration company and trades on the Toronto Stock Exchange under the symbol BGI.
CONTACT INFORMATION
Birim Goldfields Inc.
Denis Simoneau, CEO
info@birim.com
or
Birim Goldfields Inc.
Vic King, President
(514) 393-8611
(514) 393-1158 (FAX)
vic.king@birim.com
www.birim.com
or
Troy Resources NL
Tommy McKeith, CEO
t.mckeith@troyres.com.au
or
Troy Resources NL
John Jones, Chairman
(61) 8 9481 1277
(61) 8 9321 8237 (FAX)
j.jones@troyres.com.au
www.try.com.au
Ghana gold diggers pose headache for mining firms
[ Note: The Galamsey (local artisanal miners) are among the best scouts of gold deposits. Most gold exploration companies in West Africa boast in their web pages about galamsey (or in French, "orpailleur") workings as indicators of gold. But for gold producing companies, galamseys/orpailleurs are no help and have a lot of liabilities and problems beside just taking some gold ore. It's a big social, justice, safety and environmental problem. FL ]
Fri 19 May 2006 10:07 AM ET -- REUTERS
By Orla Ryan
DAMANG, Ghana, May 19 ( Reuters) - Using chisels and spades, Alhassan Fuseini and his crew of 20 co-workers dig out $1,000 worth of gold a week from a muddy patch of ground in western Ghana.
But the land is on a concession held by South African mining giant Gold Fields Ltd. <GFIJ.J> and Fuseini and his colleagues are "galamsey" or illegal miners, some of the thousands who compete with large corporate miners to tap Ghana's gold riches.
Not far from where Fuseini stands, Gold Fields trucks grind away, engaged in their own exploration work.
"It's true, it's illegal," Fuseini shrugs, and adds: "But we were here first."
Long before the world's biggest gold companies saw potential in the west of Ghana, formerly known as the Gold Coast for its rich alluvial deposits, small-scale miners had been scrabbling a living from its seams of gold.
Ghana is Africa's second biggest gold producer after South Africa.
Estimates put the number of small-scale miners operating in Ghana at anything between 300,000 and 500,000.
Some are legally registered and have their own concessions. But most work illegally on or near the concessions of large gold firms, such as AngloGold Ashanti <ANGJ.J> and Newmont <NEW.N>.
The galamsey, who use basic tools to carve out makeshift trenches and mercury to recover the gold, pose a problem with no easy solution for Ghana's big gold mining investors.
Mining firms say the galamsey steal their gold, obstruct their work and create environmental damage for which the companies are liable. Some, like Gold Fields, have learnt to live with them.
"Ordinarily, you would say it is a criminal issue but you cannot easily criminalise it. Any attempt would meet a public backlash," Anthony Aubynn, Gold Fields' public affairs and social development manager, said.
"The big companies are in a fix about how to handle it because of the negative publicity," he added.
ARRESTS RARE
In practice, galamsey arrests and prosecutions are extremely rare in a country where the deep pockets of international gold firms jar with the poverty of their surroundings and the limited job opportunities available.
Some galamsey work locally but many are itinerant miners and violence can erupt between them and mine security guards.
And it can be a dangerous occupation. In August, about 40 small miners are thought to have died when an illegal gold mine collapsed on a Newmont exploration site.
But for a handful like Fuseini, returns can be big.
He sells an average of $1,000 worth of gold a week, financing his small illegal mining business which hires 20 people and his immediate and extended families.
The rising price of gold is encouraging many gold dealers to prefinance galamsey, he said.
"There is a lack of jobs and not everybody can work in the mines ... Even if the mines could employ everybody, not everybody would work there. The mine would not give what they can get from galamsey (illegal mining)," he said.
REGISTRATION SCHEME
Decades of conflict between the galamsey and their larger counterparts prompted Ghana's Minerals' Commission to set up a registration scheme in 2004, under which small-scale miners could register to get government-approved concessions.
About 15,000 miners have registered under the scheme but many complain the process is long and complicated.
And often the areas where they want to work have already been registered by a large firm, said Amponsah Tawiah, the Minerals Commission officer in charge of small-scale miners.
Even galamsey who do get legal concessions know that one day these will be exhausted and they may end up back on the concession of a large miner.
Many think the solution would be to help the galamsey retrain and find other work.
Tawiah suggests that larger firms give parcels of their concessions to the small miners. "Giving part of the land to the galamsey will buy peace for them," he said.
Until now, Gold Fields has largely ignored the hundreds of galamsey on part of its Damang concession, the smaller of its two mines in Ghana. But now it wants to mine this area too and has set the galamsey an August deadline to leave the site.
Fuseini has registered as a small-scale miner but has yet to receive a concession.
"Galamsey is all I know ... If I don't get a concession, I will ask Gold Fields if they have a piece of land they are not interested in and I will go there," he said.
© Reuters 2006. All Rights Reserved.
Mosquito Consolidated Gold Mines Limited (MSQ.v)
Adamus' "South Ashanti" in Ghana
Date: May 19, 2006
Adamus Resources Should Complete Feasibility Study On South Ashanti Gold Project By End Of Year.
When our Man in Oz wrote about Adamus Resources last September he was trying to pin down whether the company was going to go on drilling and increasing the resources on its South Ashanti gold project or get into production. The company has its main listing in Australia and a secondary listing in Canada which is explained by the fact that Australian investors proved lukewarm to a company with its assets in Ghana despite the fact that it is mining friendly and hosts a number of major gold mines. The proportion of North American investors built up quickly to around 40 per cent, confirming the wise decision to operate in Ghana, but the nagging doubt remained as Canadians have a tendency to drill deposits to the consistency of cheese before starting development.
Since then the doubts have rolled away as Australians have embraced Adamus at last as evidenced by the A$13 million raised by Euroz Securities to fund the current feasibility study and accelerate exploration drilling at its Southern Ashanti gold project.The decision to raise further funding and commence the feasibility study followed very positive results from a scoping study into the economics of developing the project announced in February. The gold resource is currently estimated at 22 million tonnes grading 2.1 g/t gold to give 1.5 million ozs, but Hamish Halliday, the managing director of Adamus, wants more and has committed to a further 25,000 metres of drilling.
This increased resource estimate resulted from drilling on the main Salman trend, particularly at the Akanko prospect where reconnaissance drilling has already intersected 20 metres at 8.99 g/t gold from 26 metres depth, and from parallel zones as well as from deeper mineralization at the Anwia deposit. There is a strong case for rolling in more ounces as the scoping study projected net free cash flow of around A$186 million at a gold price of US$625/oz.
Hamish Halliday describes the recent acquisition of Anwia South as a sweetener to the Southern Ashanti gold project. Well they don’t come much sweeter than that as the company announced earlier this month that a diamond drilling programme has started at the Atom prospect which is only 3 kms south of the Anwia deposit. This drilling will target high grade mineralization as it contains RC drill intersections up to 6 metres at a grade of 148 g/t gold. There seems little doubt that Anwia South will add significant resource ounces to the Southern Ashanti project and drilling will focus on the main lode over a strike length of 250 metres and to a depth of 65 metres.
Halliday has also contracted two additional RC rigs and the first of these will carry out infill drilling on the Salman trend as part of the feasibility study. The second rig, which does not arrive until June will carry out exploration work at Salman and Anwia. When Minews spoke to him today he suggested that 2006 could be the year for Adamus. It certainly looks like that as the feasibility study on the South Ashanti project should be complete by the end of December. Two firms of engineers have just been appointed to report on the metallurgy, tailings and plant infrastructure, so things are rolling along. Like CBH Resources the company has also made a couple of crucial appointments of people experienced in geology and plant development in this part of Africa, which is always a good sign.
The acquisition of Anwia South also enables Adamus to explore over a whole new regional area which must add further to the value of the company. African Lion 2, an Australian based fund which is an offshoot of Lion Selection, certainly thinks so as it has just invested A$2.7 million though a private placement. Pity the Aussies didn’t cotton on to Adamus earlier as it would saved it having to go for the dual listing in Canada with all the additional expense that this involves.
Companies featured in this Story:
Adamus Resources Ltd (ASX - ADU)
CBH Resources Ltd (ASX-CBH)
Copyright ©2003 MINESITE
Cluff Gold proceeding in Burkina Faso, Cote d'Ivoire
[ CLF on London AIM exchange ]
from Creamer Media Mining Weekly-- 18 May 2006
Cluff Gold set to pull trigger on two African projects
UK-domiciled gold junior Cluff Gold is set to proceed with the development of the Kalsaka deposit in Burkina Faso, West Africa, following the recalculation of the prospect's reserves by RSG Consultants.
Reserves are now estimated to be over 300 000 oz, while the project has a resource base of some 600 000 oz, which is being assessed together with the nearby Yako prospect, estimated to have resources of 150 000 oz.
Speaking at the company's AGM on Thursday, chairperson Algy Cluff said there were also four identified drill targets at Kalsaka, which have been drill-tested in the past with positive results.
“The combination, therefore, of this level of ounces, complemented by the significant increase in the gold price, has led your board to determine to proceed with the development of the project which is expected to yield in the region of 60 000 oz/y. We are now in the process of arranging project finance with our bankers, RMB Resources Limited. Politically speaking, Burkina Faso remains stable,” Cluff stated.
In the Ivory Coast, the company would look to restart mining at Angovia, a gold-mine, which was in operation between 1998 and 2003.
“We are acquiring from the Ivorian State mining company, for a sum equivalent to approximately $200 000, assets which include a significant part of the plant, all of the housing and other facilities. We are presently undertaking a resource definition-drilling programme, which is planned to be completed during the next three months and which, we hope, will enable us to optimise the development of the oxide material currently estimated at between 200 000 oz and 300 000 oz.” The redevelopment costs of $10-million, should be funded without recourse to the banks for project finance, he added. “The political circumstances of the country have been complex for the past two years. It is now clear that the situation has stabilised and the de facto division of the country into two halves, the legitimate government in the south and the rebellious factions in the north, could well be resolved by national elections presently being planned. From our point of view, we judge that there is presently no consideration that will deter us from proceeding to mine our deposits,” Cluff stated.
The company's fund raising, sponsored by BMO Nesbitt Burns, had added about £1- million to its treasury, which, Cluff said, provided it with a strong enough balance sheet to advance two of its projects towards production, while continuing with exploration.
He also said that good progress was being made on the Baomahun project in Sierra Leone, where the company was particularly bullish about the possibility of evolving it into a multimillion-ounce orebody.
At last, Birim's (BGI.TO) Bui concession news
Birim Goldfields Inc.
TSX: BGI
INDUSTRY: Mining - Precious Metals
MAY 16, 2006 - 08:31 ET
Drilling to Commence at Chert Ridge, Badu and Akrobi Prospects: Ghana's Minister of Mines Grants Birim 9 Prospecting Licenses on Bui Belt
MONTREAL, CANADA--(CCNMatthews - May 16, 2006) - Birim Goldfields Inc. (TSX:BGI) ("Birim" or "the Company") is pleased to announce that final Ministerial approval has been obtained for the granting of nine successor Prospecting Licenses that have followed systematic regional exploration on the Bui Reconnaissance License. Scout drilling will therefore shortly commence on the first three drill-ready priority targets already defined on these recently granted licenses.
All three drill-ready targets lie on major (greater than 40km long) regional scale northeast-trending structures that are clearly defined in airborne magnetic and EM datasets, and are supported by mapping and gold-in-soil anomalism (see map of the Bui Prospecting Licenses, Ghana West Africa - Drill-Ready Targets at the following address: http://www.ccnmatthews.com/docs/Birim%20Goldfields_a.jpg and http://www.ccnmatthews.com/docs/Birim%20Goldfields_b.jpg ). The targets occur in settings typical of some of the large world-class shear zone hosted gold deposits in West Africa. They occur in Birimian metasediments in proximity to metavolcanic, mafic intrusive or chert contacts on jogs or at an intersection of crosscutting structures with the NE trending structure. The targets are also associated with significant alteration typical of Ashanti-style deposits, including silicification, carbonate and sericite alteration with sulphides (pyrite and arsenopyrite).
The Chert Ridge target (Cluster Prospecting License) is comprised of two anomalous centres along a discrete 8km-long mineralized portion of a 13km-long shear structure. Of these two, the northeastern anomaly extends for 2,700 meters and is 50 meters to 100 meters wide at the 50 ppb level and has a highest assay value of 4,000 ppb gold-in-soils. The southwestern anomaly extends for 4,800 meters and is 50 meters to 100 meters wide at the 50ppb level and has an assay high of 3,080 ppb gold in soils. These samples were analysed by firing a 50-gram portion of a finely pulverized and homogenized sample followed by an atomic absorption finish at SGS Laboratories in Kumasi, Ghana.
The Akrobi target (Akrobi-Kakum Prospecting License) comprises a 2.7km-long anomalous zone. The largest anomaly extends for 1,800 meters and is 100 meters wide at the 50 ppb level with a high of 9,370 ppb gold in soils. These soil samples were collected by Santa Fe Mining in 1996 and were analysed by firing a 50-gram portion of the sample and using an atomic absorption finish at Inchcape Testing Services Mineral Laboratories at Obuasi, Ghana. Later sampling by Birim verified the existence of the anomaly and its dimensions and these samples achieved a maximum assay value of 541 ppb gold when assayed using neutron activation at Actlabs in Canada.
Approximately 10 km to the southwest of Akrobi lies the Badu target (also on the Akrobi-Kakum Prospecting License). A 4,000-meter long and 50 meter to 100 meter wide gold-in-soil anomaly at the 20 ppb level with a high of 2,512 ppb has been identified. These samples were analysed by firing a 50-gram portion of each sample followed by an atomic absorption finish at SGS Laboratories in Tarkwa, Ghana.
A scout drilling program has been budgeted for 1,400 meters and will commence during June 2006. A further 4 targets on the newly converted licenses are to be brought to the drill ready stage within a short period, following limited soil geochemistry infill sampling, ground geophysics and trenching to better refine them.
"These priority scout drilling programs are the vanguard of Birim's concerted efforts to aggressively advance the multiple targets generated during the systematic regional exploration programs on the Bui Reconnaissance License," says Vic King, President of Birim. "Follow up drilling is also being planned to advance previously drilled targets at Tombe, Chenchu Mountain and Tinga. Earlier stage exploration work continues on the 13 Bui properties as well as on the 4 more recently acquired Sefwi properties."
Jean Rainville, M.Sc., P. Eng., a qualified person under NI 43-101 has verified the contents of this release.
Birim Goldfields Inc. is a royalty-based exploration company focused on gold exploration in Ghana and trades on the Toronto Stock Exchange under the symbol BGI.
Nevsun first shipment of gold from Tabakoto, Mali
Nevsun Resources Ltd. announced that the Company has made its first shipment of gold produced from the commissioning phase of its Tabakoto Gold Mine in Mali, West Africa. The Tabakoto Gold Mine's processing facilities have been designed to treat the ores from both the Tabakoto license and the adjoining Segala mining license.
Bringing Tabakoto into production has transformed Nevsun Resources Ltd. from an explorer into a junior gold producer. The combined Tabakoto and Segala mining operations are expected to produce 100,000 ounces of gold per year for the next nine years from their combined surface open pit mining reserve base of 1 million ounces of gold.
Future growth at Tabakoto
Continued surface exploration and possible future underground mining extensions to the existing Tabakoto/Segala operations could provide expansion opportunities in Mali and opportunities for corporate growth for the Company. Crusher and leach capacities at the Tabakoto plant have already been designed at over capacity to facilitate future expansions of operations at minimal cost and disruption.
Additional corporate growth
Advancing the world-class gold/copper/zinc Bisha project in Eritrea will continue to fuel Company growth. The Bisha project is currently in the engineering feasibility stage which is scheduled for completion in Q3 2006. The Company has already commenced planning to facilitate the debt financing the Bisha project after the completion of the Bisha feasibility study.
A scoping study released in December 2005 shows Bisha to be a highly economic ten year life open pit mining project with post open pit underground potential. Bisha is a VMS deposit comprising a high grade surface gold oxide cap overlying a high grade copper supergene massive sulphide deposit which itself lies on top of a robust zinc/copper primary massive sulphide deposit.
The scoping study indicates that the Bisha project can recover approximately 420,000 ounces of gold in each of its first two years of production. In the next three years the project produces approximately 150 million pounds of copper per year from its copper supergene ores which is followed by a further five years production from its primary massive sulphides with approximately 260 million pounds of zinc and 50 million pounds of copper produced each year. The study also demonstrates the potential to recover 16 million ounces of silver over its initial ten year open pit mine life. An underground mining study to exploit the appreciable additional resources below the open pit will be initiated in the future.
The successful completion of mine development at Bisha (currently planned for late 2008) will provide Nevsun with the potential to become a plus 500,000 oz per year gold producer. The commissioning of the Tabakoto Gold Mine is management's first step in achieving this target.
Tid-bit on Akrokeri-Ashanti Bonte Mine in Ghana
Here's a message I sent on a Ghana-related board. When last seen, the Akrokeri-Ashanti stock was on the Canadian NEX exchange, before trading was suspended.
Posted: Tue May 16, 2006 1:29 pm Post subject: Be careful about this Bonte Gold offer!
----------------- quote ---------------
bonte wrote:
Dear sir,
WE ARE BONTE GOLD MINNER (LTD),IN GHANA, WEST AFRICA
HERE IS A BRIEF SUMMARY OF WHAT WE HAVE TO OFFER:
1.PRODUCT: AU METAL(GOLD)/GOLD DUST
2.ORIGIN: GHANA,WEST AFRICA..
3.TYPE: ALLUVIAL DUST (GOLD).
4.PURITY: 22+ KARAT, OR 92%.
5. PRICE: $8,000USD
6, QUANTITY: 200KILOS
WE WISH INTERESTED BUYERS LIKE YOU TO COME WITH YOUR CONDITIONS OF PURCHASE AS NO UPFRONT PAYMENT IS NEEDED FOR US TO START OFF BUSINESS WITH YOU. UPON YOUR CONFIRMATION OF INTEREST, WE WOULD SEND A DETAILED FCO TO YOU, PREFERABLY VIA YOUR FAX NUMBER. AN URGENT RESPONSE WOULD BE APPRECIATED AS WE LOOK FORWARD TO DOING BUSINESS WITH YOU. Email bontegoldmines1@yahoo.com
----------------- end quote ------------------
Before you have anything to do with any "Bonte Gold Minner (Ltd.)" offer, check very carefully what is going on -- what is this company, is this real or a 419-type fraud scandal, etc. I'm not saying it is a fraud, just check everything yourself by independent means.
The Bonte Gold Mine was an alluvial (placer, gravel-scooping) mine, near Ahwereya south of Nkawie off the Kumasi-Bibiani road, in central Ghana. It had a lot of problems.
Shortly after I visited the Bonte Gold Mine a couple of years ago, it ran out of money, its creditors refused to waive payment, and it became insovent. The entire management resigned. The mine officially closed down, and the parent company (Akrokeri-Ashanti Gold Mines of Toronto, Canada) also went insolvent, and they had to leave Ghana in a hurry. The stock shares became worthless, I thought. It was a financial, mining and ecological mess. I assumed that the big Moulsen concentrators, that separate out the heavier gold particles from the gravel, would belong to the creditors because Bonte and Akrokeri-Ashanti could not pay their bills. I thought that the concentrators would be repossessed by the creditors.
So it is strange to see this offer from a "Bonte Gold Miner Ltd." (Does this mean that the shares of Akrokeri-Ashanti Gold Mining are now worth something again? I will be glad to hear it.)
I don't see how this Bonte Gold Miner company could come back to life. Or is this a new and different company? Are these galamsey operators? Is it real at all?
_________________
Yours truly, FL
GHANA: Campaign to stop the violence in mining
by National Coalition on Mining (NCOM)
4th May 2006 (from http://www.minesandcommunities.org/Action/press1039.htm )
PRESS STATEMENT: LAUNCHED MAY 4TH, 2006, ACCRA, GHANA
Introduction
Dear Chairperson, Distinguished ladies and gentlemen of the press, Coalition members.
Ladies and Gentlemen:
I am happy to read this statement on behalf of the National Coalition on Mining (NCOM) a grouping of communities affected by mining and civil society organizations.
I wish to express my sincere gratitude and warm welcome to you the media, for making time to participate in this press conference. Today marks the launch of a national campaign to stop violence by the mining companies and state agencies against communities.
Violence against communities
Over the last two decades, communities such as Tarkwa, Prestea, Obuasi, Kenyasi, Bibiani, Akote, Ada and Bolgatanga have suffered systematic violence. The mining industry and state agencies have used violence against citizens and communities on the fringes of mining projects in order to protect mining interests. Many of these acts of violence have resulted in loss of property, severe injuries and even deaths of innocent community members whose only crime is by default to have settled on gold/mineral bearing rocks. The relationship between communities on the one hand and mining companies and the state on the other has been inherently disruptive.
Conditions for violence
State agencies and mining companies have often set the conditions for violence in order to suppress and diminish the interest and concerns of local communities. Mining activities mostly take place in rural areas and the people who live in these areas have already been marginalized in terms of their access to quality education, health and other social and economic infrastructure. The siting of mining projects that could potentially contribute to improving their quality of life have in many cases turned out to be a curse, further exacerbating their marginalized and subsistence existence. Mining activities have resulted in mass eviction and dislocation of whole communities, their environment the main source of livelihood destroyed, and their total economic, social and political organization needlessly disrupted. Compensation figures for various losses as a result of mining activities are often undervalued and payment unduly delayed. Promises of employment opportunities and community development usually made by mining companies and state officials to such communities with the start of mining projects are never materialized.
Nationally, very little has been achieved from the sustained mining boom. Despite the long history of mining in Ghana and the gold boom over the last two decades, the country has not as yet been able to translate the wealth of mining into building the productive capacity of the local communities and the country as a whole. The mining industry contributes only 5 % to GDP and about 12 % to national revenue. The large-scale industry directly employs only 18,000 people and yet there is escalating environmental and social cost externalized by the industry.
These conditions set the stage for dissent. With loss of farmlands, clean environment, housing and fresh water, coupled with unsustained alternative sources of livelihood, most communities on the fringes of mines logically protest. The protest takes many, varied forms such as complaints, petition, and demonstrations calling the attention of the state and the mining companies to their right to survival, clean environment, access to a minimum level of decent existence.
State and Corporate Response and cases of violence
The response of the state and mining companies to such calls has often turned violent. These are a few examples.
On 2nd February 2006, Soldiers acting on behalf of AngloGold Ashanti Iduapriem Mine Limited(AAIL) shot 4 farmers in Teberebie.
In Prestea, the communities demonstrated against Bogoso Gold Limited on 13th July 2005, the company in collaboration with the Ghana military opened fire on the demonstrators and seven people were wounded.
On 2nd November 2005, some farmers embarked on demonstration against Newmont Akyem mine on compensation issues. They were greeted with gunshots and two people died from gunshot wounds.
Yaw Mensah, a 20-year-old farmer in Dumase was shot in the arm by soldiers acting on behalf of Bogoso Gold Ltd. On accusation of trespassing on company property.
Invasion of communities by the military and police on the pretext of checking galamsey in communities such as Sanso and Binsere in Obuasi are common.
Awudu Mohammed was shot by a combined team of Police, Military and Mine security on 21st June 2005 on allegation of embarking on galamsey ["illegal" smallscale mining].
On 29th September 2005, there was a military/police and mine security swoop in Sanso. The security team arrested a 70-year old lady by name Madam Afua Frimpomaa on allegations of galamsey. She was in the custody of the mine security for about 8 hours.
Clement Kofi Baffoh of Aduaneyede in Obuasi was arrested on 9th June 2004 on allegations of galamsey by the mine security of AngloGold Ashanti. He died nine hours later in the custody of the mine security because of brutalization.
There are also several cases of the use of guard dogs on galamsey victims and the beating of suspects to death. Amos Abu of Sanso is one of the victims of an attack by a guard dog of AngloGold Ashanti. Suspects who were alleged to have been beaten to death by the combined security team of AngloGold Ashanti include Kwame Opoku of Sanso.
We wish to state that the systematic use of naked force and violence against communities has permeated the extractive sector. We witness several cases of violence against communities on the fringes of forest reserves. On 8 April, officials of the Forestry Commission (FC) evicted hundreds of so-called "illegal" settler communities from the Digya National Park at gunpoint. They further compelled the master of private vessel (also at gunpoint) to transport these "deportees" across the Volta Lake even though this involved exceeding the vessel's load capacity and clearly posed a risk to the "deportees". The overloaded vessel riding low in the water hit an underwater obstacle and capsized leading to the loss of possibly hundreds of lives. In the three weeks since this mass killing, and despite public outrage, the FC has not offered a public apology to the families of the victims. Nor has it held a single official of its Wildlife Division accountable even on an interim basis. How cheap the lives of poor rural citizens have become!
Only few days ago, it was announced that the Ghanaian government procured ships from the United States of America to mount surveillance on the Gulf of Guinea. This relationship between the governments of Ghana and the USA is not without a desire on the part of the US to capture the oil resources of the "New Persian Gulf" i.e. the Gulf of Guinea. The surveillance exercise and the US interest along the Gulf of Guinea have consequences for the future prosperity of local fisherfolks. Any major protest at community level has resulted in a retrenchment on community civil liberties and any serious but legitimate opposition to national policies has often been scorned as anti-development.
Reason behind State violence against communities
These atrocities against communities, the environment and the national economy, under the guise of law and order, are deliberate acts by the State to offer protection for transnational mining companies and to guarantee easy profitability. It is unfortunate that the state has turned against its primary role of offering protection for its citizens. We know that this is not an isolated act by the State and its agencies but rather an illustration to the extent to which the mining industry has systematically and remotely controlled the State since colonial period to their advantage.
In the current democratization process, Ghanaians are entitled to question the legitimacy of the practice of deploying the state military and their use to offer protection for private companies. Ghanaians are equally entitled to question the arbitrary use of private security by mining companies against communities. The practice of deploying the military to mining facilities is illegal.
Demands
In the light of the forgoing we members of NCOM thus:
1.. Demand that the state and the mining companies should stop the violence.
2.. Call on the state to carry out public investigation into cases of violence against communities.
3.. Demand that the state military should not be involved in policing mining projects.
4.. The police should be accountable to their actions in accordance with their own rules.
5.. All the laws applicable to the use of private security and their relationship with the public should rigorously be enforced.
6.. We call on mining companies to respect the right of local communities and the State must take its proper role of offering protection for the citizenry.
Conclusion
We are committed to working with communities and all other progressive minded people in the world to resist and eradicate violence in the mining sector. We wish to use this occasion to solicit public support and that of the media in eradicating such violence in the mining sector
List of organizations
1.. Third World Network-Africa (TWN-Af)
2.. Civic Response
3.. ABANTU for Development
4.. Centre for Public Interest Law (CEPIL)
5.. Wassa Association of Communities Affected by Mining (WACAM)
6.. Centre for Environmental Law and Development (CELD)
7.. Friends of the Earth-Ghana (FOE-Ghana)
8.. Green Earth Organization (GEO)
9.. GrassrootsAfrica
10.. Friends of the Nation
11.. Integrated Social Development Centre (ISODEC)
12.. Challenge Africa
13.. Richard Adjei-Poku, Kenyasi Community
14.. Benjamin Anan, Obuasi Community
15.. Teberebie Community
16.. Prestea Community
TWN-Africa is secretariat of the National Coalition on Mining (NCOM). For further information, contact Abdulai Darimani at Third World Network-Africa (TWN-Africa), Box AN 19452, Accra-North, Ghana. Tel. +233-21- 503669/500419/511189
Fax:+233-21-511188
Email: environment@twnafrica.org
Website: www.twnafrica.org
Searchgold also had 11.5m@13.04g/t, 15.75m@10.21g/t in Gabon
Note- the previous message was my opinion, not an article.
FL
Why I bought Searchgold (RSG.V) http://www.searchgold.ca/
As readers know, I considered buying Searchgold for a long time, based on its gold-laden properties in Gabon, Africa, and its new backing from Morocco's Managem. I didn't move on it, though. Then (vexatiously) it announced a substantial hit on its Canadian properties, which (along with a pop from lisitng in Frankfurt) ran the price up to a post-halt closing high of C$0.21, after a trading halt for failure to report. Before the halt it had got as low as C$0.06 - where we all should have bought, of course.
He who hestitates is lost.
Then in the last couple of weeks the price has settled down from that flurry to C$0.14 now, meanwhile gold's risen to $700 per ounce.
Among several nice results, a recent hole in Gabon found 4.64 grams/ton gold over 55.10 meters.
The Managem deal impresses me. That Moroccan, francophone, competent mining company was the big investor in Semafo (SMF.TO) which has done superbly, now with well-executed operating gold mines in Guinea and Niger and a new exploration hit in Burkina Faso (I own some SMF). Managem recently took big profits from Semafo and now is backing Searchgold, not only in Gabon but also in Guinea where Managem is very experienced.
Gabon is richer per capita than Ghana or Guinea, in fact it's all-black Africa's richest country. But it's wealth is based on coastal oil, and Gabon's culture (mainly the Fang tribe) was never gold-oriented like the Ghanaians. It's jungle interior is hardly explored. Gabon has been stable and capitalistic. It's francophone. Searchgold is the dominant explorer in Gabon with big hits already. Then there's the whole promising Guinea thing (let alone Canada). Still its market cap is only about C$13m.
So I finally jumped in. Any other opinions?
Loulo Back On Track (Randgold Resources -- GOLD)
from MineBox
Randgold Resources in Africa
London and Nasdaq listed gold miner Randgold Resources posted a solid net profit of US$13 million for the March quarter on the back of an increase in profit from mining to US$33 million, resulting from its new Loulo gold mine and a higher gold price.
Reporting its results yesterday, the company said the second phase of the Loulo plant - threatened with derailment by a defaulting contractor - was back on track for completion towards the end of the second quarter. Meanwhile Loulo’s Phase 1 throughput, recoveries and costs before additional costs relating to temporary crushing were in line with expectations, and production of 64 677 ounces in the mine’s first full quarter of operation was on target.
Planning for the underground developments to complement Loulo’s existing open-pit operations progressed with the completion of the detailed design and production scheduling of the Yalea underground section. A contractor will be appointed next month and main decline development is due to start towards the end of 2006, with the first stoping ore likely to be accessed by the end of 2007.
Chief executive Dr Mark Bristow said a particularly significant aspect of what had generally been a challenging but good quarter was the increase to 56% in the reserve-to-resource ratio at Loulo.
“While the discovery of new ounces is important, it’s the conversion of these resources to reserves that is really critical in creating value. We have been very successful in converting the Yalea resources to reserves as a result of the deep drilling programme and the completion of the detailed underground mine plan,” he said.
Exploration within the Loulo region continued to highlight the potential for further extensions to the known orebodies as well as identifying new deposits. The company is also progressing early stage exploration programmes in Burkina Faso and Ghana.
- 09 May 2006
Randgold (GOLD) moves on five African countries
Randgold Resources moves on five African countries
Creamer Media's Mining Weekly -- 9 May 2006
RANDGOLD London- and Nasdaq-listed gold miner Randgold Resources has indicated that the next quarter of the year will be taken up with drilling in five African countries as it seeks to build on its current portfolio.
The miner, which reported a net profit of $13-million for the March quarter, saw the first full inclusion of production from its second Mali mine, Loulo.
Loulo, which became operational on November 8, 2005, saw throughput at 722 000 t.
Randgold saw profit from mining increase to $33-million, largely as a result of the inclusion of Loulo and a higher gold price.
While Randgold has not ruled out corporate activity, stating that it “continues to evaluate various opportunities both at corporate and project levels”, it is focused on “generating its own opportunities”.
Remaining focused on Africa's key gold belts, Randgold Resources has an aggressive period of drilling planned for the second quarter of this year.
Drilling is expected in five African countries, Mali, Senegal, Burkina Faso, Côte d'Ivoire and Tanzania. These five countries will host seven drill projects.
CEO Dr Mark Bristow noted that most of the gold depleted as a result of mining last year had been replaced by the end of the year, however, it continues to seek new orebodies and develop brownfields drilling.
For example, positive results from the Morila exploration initiative have confirmed the company's belief in the further prospectivity of this area.
In addition to the ongoing hunt for new ounces at and around Loulo and Morila, and the tactical programme at Tongon, several additional targets have been lined up for drilling in Senegal while a four-hole drilling programme has been completed at Kiabakari in Tanzania.
The company is also progressing early stage exploration programmes in Burkina Faso and Ghana.
The prefeasibility-stage Tongon project in the Côte d'Ivoire, which has the potential to become Randgold Resources' third mine, is being revived in anticipation of that country's return to political stability following the general elections scheduled for later this year.
A team has moved onto site to complete plans for a ten-borehole tactical drilling project, which will form the basis for planning the final feasibility-drilling programme.
If the election outcome is satisfactory, the company plans to complete the final feasibility study within two years.
In the meantime it has been granted two new permits in the south of the country and has started early-stage reconnaissance work there.
Reporting its results on Monday, the company said the second phase of the Loulo plant - threatened with derailment by the defaulting contractor - was back on track for completion towards the end of the second quarter.
Meanwhile Loulo's Phase 1 throughput, recoveries and costs before additional costs relating to temporary crushing were in line with expectations, and production of 64 677 ounces in the mine's first full quarter of operation was on target.
Planning for the underground developments to complement Loulo's existing open-pit operations progressed with the completion of the detailed design and production scheduling of the Yalea underground section.
Already, a detailed mine design and production scheduling has been completed and a twin decline system for underground access, 4,5 m high and 4,5 m wide, has replaced the previous single decline access.
One decline will be equipped with a conveyor belt for rock transport and the other decline is to be used for vehicle access.
“This design is expected to bring about advantages in safety, ventilation and timing of the project,” said the miner in its report.
A contractor will be appointed next month and main decline development is due to start towards the end of 2006, with the first stoping ore likely to be accessed by the end of 2007.
In addition, the mine ventilation design has been completed and the boxcut and portal design is in the process of being completed and portal construction for the conveyor decline is expected to start in the third quarter of 2006.
The conveyor decline development is scheduled to start in the fourth quarter of 2006, while accessing of first development ore is expected in 2007.
First stoping ore is expected by the end of 2007 and the heavy-vehicle fleet for Yalea has been completed with a delivery schedule set for 2006 and 2007.
The underground development plan for Loulo 0 is also currently being revised.
Work is in progress to further review the plan to integrate ore tonages from the opencast and underground sources.
This will form the basis of a decision to increase plant capacity to 300 000 t per month from the current nameplate design of 200 000 t a month.
The company's Morila joint venture also pleased the company, with the plant expansion reaching the designed throughput for the first time.
This 11% increase in throughput partially compensated for the expected grade decline and production for the quarter was a satisfactory 135 779 ounces.
Bristow said a particularly significant aspect of what had generally been a challenging but good quarter was the increase to 56% in the reserve-to-resource ratio at Loulo.
“While the discovery of new ounces is important, it's the conversion of these resources to reserves that is really critical in creating value.
“We have been very successful in converting the Yalea resources to reserves as a result of the deep-drilling programme and the completion of the detailed underground mine plan,” he said.
Exploration within the Loulo region continued to highlight the potential for further extensions to the known orebodies as well as identifying new deposits.
Reserve replacement was also achieved at Morila, where an infill and resource-extension drilling programme has produced an additional 510 000 ounces of reserves and has increased the proportion of reserves in the higher-confidence proven category from 50% to 70%.
Total attributable production for the quarter was 118 989 ounces at total cash costs of $281/oz. This compares to 66 908 ounces at total cash costs of $211/oz in the March 2005 quarter.
The increase in production and cash costs is due to the additional ounces from Loulo's first full quarter of production.
Newmont mining in Ghana: Collaboration needed on human rights
(from Ethical Corporation, http://www.ethicalcorp.com/content.asp?ContentID=4245)
Events around a Newmont mining site in the west African nation of Ghana demonstrate the pressing need for multi-party action on conflict management
At the end of January, the board of the International Finance Corporation (IFC), the World Bank’s private sector arm, approved loans of $125 million for Newmont Mining’s Afaho gold mining project in Ghana.
The IFC investment includes $75 million of IFC’s own resources, with the remainder raised through a syndicate of commercial banks.
To say that this project has been controversial would be no overstatement, and Ghanaian and international human rights and environmental NGOs had previously called on the IFC board to postpone consideration of the loan until IFC and Newmont had fully addressed the project’s human rights and environmental problems.
An IFC board official said after the decision: “The board recognised that it is a risky venture, but agreed that it is good to have the IFC around pushing for higher standards and social and environmental compliance.
“All precautions and safeguards have been put in place and that everything will be done in accordance with World Bank principles. It was also clear that many of the fears expressed by people related to previous experiences and not necessarily this project.”
Background to the controversy
For those unfamiliar with Newmont Mining, it is a Denver-based gold-producer, with 28,000 employees across five continents. Founded in 1925, Newmont claims to be “committed to high standards and leadership in the areas of environmental management and health and safety for its employees and neighbouring communities”.
Newmont acquired the Ahafo project in southern Ghana in February 2002, from Australia’s Normandy Mining. Since then, the company has expanded its concession to cover an area of some 621 square miles and has identified gold deposits estimated to be capable of producing 500,000 ounces of gold a year.
The IFC loan will help to develop a processing plant and related infrastructure that is expected to begin production in the second half of this year.
Campaigners are concerned about two issues related to the Ahafo project: the environmental impacts and the treatment of local people whose land has been expropriated by the project.
In a letter to the IFC board, a group of leading NGOs, including Oxfam America and Earthworks, identified five environmental impacts of the Ahafo project.
These include depletion of water supply for drinking and irrigation; groundwater contamination because of use of cyanide and sulphuric acid at the site; and pollution from tailings. They alleged: “Newmont has not provided sufficient information to assess these risks, and the proposed remediation measures are inadequate.”
Human rights issues
It is, however, the impact of the project on local communities that has attracted most attention. Campaigners argue that 9,500 people have lost their land and livelihood, and have not been adequately compensated by Newmont.
“It is irresponsible of the IFC board to grant a loan without any binding commitment by Newmont to resolve the issues around land and resettlement,” argued Ute Hausmann, of FoodFirst Information & Action Network. “Already, affected people are experiencing economic hardship and food security has become a pressing issue.”
November incident
Disquiet over compensation payments came to a head in November last year, when a local farmer was shot, and three others injured during a demonstration near the Newmont site.
There is some debate about exactly what happened. However, it appears that the shootings resulted from tension at a town meeting held to discuss the compensation process to local people.
When the local member of parliament who had been due to speak failed to appear, youths at the meeting blockaded the local road and began to attack vehicles. The police were called and a scuffle ensued. One of the youths, allegedly under the influence of drugs and alcohol, tried to take a rifle from a police officer. Shots were fired into the ground, the ricochets hitting four people, of whom one died.
Unsurprisingly, Newmont was heavily criticised for the incident, especially as the company is a signatory to the Voluntary Principles on the Use of Security Forces.
John O’Reilly, a member of the Amnesty International Business Group, criticised Newmont for having “apparently done little ... to follow through on what was clearly a very serious human rights incident … the company should request an independent investigation of the attack”.
Newmont’s response
However, Newmont actually does appear to have responded thoroughly to this incident.
In a response to O’Reilly’s criticisms, lodged on the Business and Human Rights website, Chris Anderson, external affairs director for Newmont in Europe and Asia, set out a detailed list of actions that the company had taken after the shooting.
The company says it had sought mediation around local tensions; had urged restraint on police before the incident; supported the bereaved families; and has met with the police and the Ghanaian Chamber of Mines to encourage them to sign up to the Voluntary Principles.
Lessons to learn
Assuming that Newmont is telling the truth, then this whole episode begins to shed light onto issues broader than just events in Ghana. Specifically, how it is possible to work with global standards such as the Voluntary Principles on Use of Security Forces.
Newmont does seem to have tried hard to translate its global commitment to the Voluntary Principles into concrete actions in-country.
A report by the indepdent NGO Collaborative for Development Action (CDA) into the Ahafo project last September said: “Local stakeholders displayed a positive perspective about the Newmont activities.” However, the November shooting shows that it has not been entirely successful in this endeavour.
Equally, however, Newmont does not appear to have had very much support from campaign groups that might have helped them. The NGOs who wrote to the IFC to protest at the proposed loan do not seem to have engaged with Newmont in the difficult and messy business of making the Voluntary Principles work.
Interestingly, Newmont does seem to be in the unenviable position of being the lightning conductor for the sins, past and present, of others in Ghana. The CDA report says: “Newmont operates in a context where practices [both past and present] of the mining industry have established a widely known and negative legacy.”
In his recent report on the subject, John Ruggie, professor of international affairs at Harvard and adviser on human rights and business to the UN secretary-general, wrote at length of the importance of “collaborative arrangements” for addressing human rights issues. The evidence in the case of the Ahafo project suggests that little collaboration has been forthcoming.
It may well be true that Newmont needs to try harder, as its critics demand. However, those critics also need to look hard at their own behaviour. Global standards are no use unless they are operationalised in countries such as Ghana.
To drive sustainable change, NGOs may now need to collaborate with companies on finding the solutions, often messy and dirty, that make this happen.
www.business-humanrights.org
www.miningnews.net
www.newmont.com/en/social/policy/social/index.asp
Participants in the Voluntary Principles on Security and Human Rights
Companies: Amerada Hess Corporation, Anglo American, BG Group, BHP Billiton, BP, ChevronTexaco, ConocoPhillips, ExxonMobil, Freeport McMoRan Copper and Gold, Marathon Oil, Newmont Mining Corporation, Norsk Hydro, Occidental Petroleum Corporation, Rio Tinto, Shell, Statoil
Governments: Netherlands, Norway, United Kingdom, United States
NGOs: Amnesty International, The Fund for Peace, Human Rights Watch, Human Rights First, International Alert, Pax Christi
Observers: International Committee of the Red Cross
www.voluntaryprinciples.org
Keegan (KGN.V) Acquires the Esaase Gold Property in Ghana
Tue May 9, 2006
Vancouver, May 9 2006: Keegan is pleased to announce the acquisition of the Esaase gold property in southwest Ghana. Keegan has signed an agreement with Sammetro Co. Ltd of Takoradi, Ghana which gives Keegan the right to earn 90 % interest in the property. In consideration for the 90% interest, Keegan will be paying Sammetro, a Ghanaian company, a total of US$140,000 and 780,000 shares over a three year period. In conjunction with the payments to Sammetro, Keegan will be required to conduct expenditures of US$2.25M on exploration over a three year period. Under the terms of the option agreement Keegan will also be required to pay an underlying party US$420,000 over a two year period. All payments are contingent on the successful completion of due diligence and TSX exchange acceptance of the acquisition.
The Esaase gold property is in the NE trending Asankrangwa belt in southwest Ghana, 13 km NE of Resolute's 3 M oz Obotan deposit and 12 km SW of Ashanti-Bibiani's 200,000 ounce high grade Mpesetia deposit. The property is within a 100 km radius of Newmont's 17 M oz Ahafo deposit and Anglo-Ashanti's 48 M oz Obuasi deposit.
Previous operators of the Esaase Concession have produced over 181,000 ounces of fine to coarse crystalline placer gold which they mined up small narrow tributaries to the apparent source: a hundreds of meters wide mineralized bedrock fault marked by extremely deformed and altered metasediments and extensive gold bearing lode quartz veins, which have historic shafts and adits.
In the course of completing technical due diligence on the property Keegan's geological team had the opportunity to conduct rock and soil gold geochemical surveys. Access to outcrop was excellent on the property due both to steep terrain and the presence of adits, shafts and road cuts. Some highlights of what was discovered are 1-5 g/t Au in rock chip samples over 1-2 meter intervals across numerous veins. Keegan further sampled deformed and altered country rocks between major veins finding grades of 0.12 to 0.56 g/t Au over up to 10 meter sample widths.
On the soil geochemical program, geologists ran three lines (800 meter average spacing, 25 meter sample spacing) across the structure indicated by outcrop. Of the 31 samples, 27 assayed greater than 100 ppb Au and four were greater than 1000 ppb Au. The central, most prospective line had 14 samples that averaged 1212 ppb Au over a 350 meter width. The soils were sampled at the soil/bedrock contact and were obtained in relatively steep ground containing no alluvial content, the soils revealed additional parallel mineralized structures on the property as well. These preliminary results indicate that the mineralized bedrock structure has at least a 2.4 km strike length (completely open to the northeast) with 300-500 meter strike width, suggesting excellent prospectivity for the discovery of bulk mineable resources on the property. Richard Haslinger, P.Eng., is the Qualified Person with respect to NI 43-101 at Esaase. Please see www.keeganresources.com for maps and photos.
As evidenced at Asumura and in keeping with Keegan's business objectives it will immediately commence an aggressive exploration program designed to rapidly determine the potential of this exciting new project.
Dan McCoy, president and CEO of Keegan Resources states: "We are pleased to have successfully obtained another exceptional gold property. Exploring the Esaase concession gives us an opportunity at making another exciting new discovery as we have at Asumura. Keegan is well on its way to discovering a significant gold deposit in Ghana, a mining friendly country containing some of the world's largest gold deposits."
About Keegan Resources
With a primary focus on established gold districts located in stable political environments, Keegan's seasoned exploration and management team have leveraged their collective experience and networks of contacts to efficiently assess, acquire and explore high quality, mid stage, precious and base metal projects. With active exploration programs in Nevada and Ghana combined with an enviable capital structure the company is well positioned to deliver an active, exciting year for its investors.
On Behalf of the Board
Dan McCoy, Ph.D.
President & CEO
For more information please visit the company website at http://www.keeganresources.com or contact investor relations at 604-683-8193 or info@keeganresources.com.
This release includes certain statements that may be deemed forward-looking statements. All statements in this release, other than statements of historical facts, that address future production, reserve potential, exploration drilling, exploitation activities and events or developments that the Company expects are forward-looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and that actual results or developments may differ materially from those projected in the forward-looking statements. For more information on the Company, Investors should review the Company's filings that are available at www.sedar.com.
TSX VENTURE EXCHANGE DOES NOT ACCEPT RESPONSIBILITY FOR THE ACCURACY OR ADEQUACY OF THIS NEWS RELEASE.
NEW: Gryphon Minerals Ltd. http://www.gryphonminerals.com.au/
This is a Perth/Fremantle, West Australia company, with director links to Adamus Resources, including Hamish Halliday who was in on the Salman project in Ghana. Its other properties have been mostly basemetal in Australia before, now also gold in Burkina Faso. The stock trades in Sydney as GRY, around A$0.34/share.
(Not to be confused with Gryphon Gold Corp. (GGN.TO) http://www.gryphongold.com/s/Home.asp which has Nevada properties.)
Gryphon (huh?) finds gold in Burkina Faso
Significant Gold Mineralization Intersected at Banfora
Significant gold minersalisation has been intersected during the recently completed reconnaissance style air-core drill program at Gryphon Minerals Ltd's Banfora Gold Project, Burkina Faso - West Africa.
The air-core drilling was completed over three main target areas (Nogbele North, South and Central) within the large grano-diorite intrusion known as the Nogbele (Nog-be-lee) Prospect. Targeted areas comprised of broad magnetic zones averaging 75m width, as well as high order magnitude soil geochemical anomalies. Drilling within each of the target areas intersected significant gold mineralization.
Gryphon Minerals’ managing director Steve Parsons said the company considers the results extremely significant as they confirm the correlation of large scale magnetite alteration and the association of significant gold mineralization. The new target areas identified from the air-core drilling will be followed up with RC and diamond drilling over the coming weeks.
Significant drill results include up to 41m at 2.12 grams per tonne (g/t) gold for the entire hole, and again reinforce the potential for the Banfora Gold Project to host large scale gold mineralization. Other significant drill results include:
· BNAC051 - 41m at 2.12g/t Au from 0m including 28m at 3.01g/t from 4m;
· BNAC063 - 7m at 3.49g/t Au from 8m including 1m at 17.51g/t Au from 11m;
· BNAC152 - 1m at 15.22g/t Au from 11m;
· BNAC225 - 12m at 1.33g/t Au from 20m; and
· BNAC226 - 4m at 3.50g/t Au from 12m.
A total of 7,107m were drilled with an average depth of approx 33m each, for the air-core program. At the Nogbele Prospect the average depth to the base of
oxidation (fresh rock) is approximately 60m below surface. Many of the drill holes stopped in hardened bands of quartz veins and several holes stopped in significant gold mineralisation.
“The company has commenced a Diamond and Reverse Circulation drill program to follow up on these air-core drill results and the previously announced RC drill results at the Nogbele Prospect,” said Mr Parsons.
Gryphon Minerals Ltd is exploring the Banfora Gold Project through an “earn-in” Joint Venture agreement which grants Gryphon Minerals the right to acquire 90% (Government 10%) of the project.
The Banfora Gold Project is located in the south-west of Burkina Faso, West Africa in a major gold producing district host to such world class gold deposits as Tongon (2.9 Moz) Syama (5.2 Moz) and Morila (5.6 Moz). The project area contains two granted exploration licenses and three exploration license applications covering a total of 1150sqkm and entirely encapsulating the highly prospective “Loumana” Birimian geological belt within Burkina Faso.
- 08 May 2006
Randgold Resources (GOLD) profit up 13%
LONDON (SHARECAST) - Randgold Resources, the gold exploration group, announced much stronger profits as solid operations saw it dig even deeper.
The group announced first quarter gold sales revenue of $67.24m for the three months to March against $60.55m in the previous quarter and $31.98m a year earlier. Net profit for the period was $12 76m against $11.27m a year ago.
The miner said it saw an increase in production and cash costs during the period, due to the additional ounces from Loulo's first full quarter of production. The Loulo project progressed with Phase 2 completion and there appears to be potential for extensions as well as new deposits.
Randgold said it would initiate a return to Tongon and increases groundholding in Cote d'Ivoire, whilst noting that it is also set to drill in seven project areas in five countries.
“It is currently estimated that mining activities will cease (at Morila) during 2008 subject to no additional reserves being added to the mine plan, with processing of stockpiles continuing until 2013.”
“Over the period 2006-2008 it is expected that production will be in excess of 500 000 ounces per year,” added Randgold.
CORRECTION: Goldrush is on the Venture Exch (GOD.V)
Goldrush (GOD.T) now has a web-page http://www.goldrushresources.ca/
Algy Cluff Builds A US Fan Club For Cluff Gold
[ Note: Cluff Gold is CLF on London AIM exchnage FL ]
By Jack Hammer -- May 5, 2006 -- minesite.com -- MINEWS Story
Algy Cluff recently brought a whole swathe of American investors into AIM listed Cluff Gold, with the help of US investment bank BMO Nesbitt Burns. Accessing capital in the US made sense for Cluff on a number of levels. “I thought it would be interesting to test the water in the US,” he says. “Over here, the banks fall over themselves to give you project finance – for the first time I can remember - but it is still very competitive accessing money from fund managers.” To be fair he hasn’t tried that hard, thus far having laboured under the belief that Cluff Gold was too small to attract much interest from anyone.
But whereas the big American funds “were quite windy about AIM two years ago”, now, according to Mr Cluff, they are no longer worried about AIM, “or indeed Africa”. And a big advantage of having the likes of Nesbitt Burns on the share register is that, having commissioned technical due diligence from industry consultants Kilpatrick, the bank and its clients know what Cluff is potentially worth, and so are less likely to succumb to the charms of over-rated north American paper.
So what’s Algy Cluff got that’s attracting in the American heavyweights? When Cluff Gold came to the market back in 2004 the Kalsaka gold project in Burkina Faso was the core asset. But the company has come a long way in a short time. Kalsaka has come on leaps and bounds – it’s “fortunes have been transformed by the gold price”, says Mr Cluff – and a decision on development looks close. But that’s not what’s bringing the Americans in. US interest lies in the Baomahun asset in Sierra Leone. Cluff has the right to earn a 60 per cent interest in Baomahun from Harry Winston, now that the diamond merchant has established there are no diamonds on the property.
But although it’s of limited interest to Winston, the gold shows were very interesting to Cluff. So far Baomahun is already showing 4.54 million tonnes of ore with a mean grade of 3.6 g/t, giving 518,000 ounces indicated and inferred, as audited by SRK under the JORC code. But Baomahun is open at depth and along 9 kms of strike, and, according to the report prepared by Kilpatrick for Nesbitt Burns, offers the potential for the discovery of a high grade multi-million ounce deposit. Cluff has already put 4,600 metres of drilling into Baomahun, and will continue drilling into the summer.
If Cluff transforms itself into a producer by getting the green light on Kalsaka and also manages to deliver several million ounces on Baomahun then the faith of the Americans will have been repaid in full. With gold at its current levels, there’ll be smiles all round. Nonetheless, Cluff has other projects to fall back on if either of those assets doesn’t fly. In Cote d’Ivoire there’s an 800,000 ounce resource called Angovia. Although Angovia’s resource numbers aren’t compatible with a recognised reporting code, there’s already plant in place, so Mr Cluff’s assertion that it ought to be possible to get a mining operation there fully up and running for US$6-7million doesn’t look outlandish.
In Mali a US$1 million trenching programme on exploration ground on trend with Resolute’s 5million ounce deposit will get underway this summer. The Americans must surely derive further reassurance from the industry heavyweights that Mr Cluff has assembled to provide support to Cluff’s board. Bobby Danchin and Ed Haslam are well known and well experienced in Africa and Eileen Carr is no stranger to mining or Africa either. Mr Cluff now plans to market to UK institutions. “I’ve tried to keep it a simple story”, he says, and the institutions will no doubt appreciate that. The focus is clearly on West Africa, although Mr Cluff says he would consider “anything that has compelling geology in Africa.” As for future strategy, a hostile takeover from Algy Cluff doesn’t look imminent: “I think mining companies should grow by discovery not by acquisition”, he says. The company certainly seems to have enough to keep it busy for now.
Companies featured in this Story
Cluff Gold Plc (AIM-CLF)
Merrex picks up bundle of High River property interests
[ Note: Why is this relevant? Because of the Liberian diamonds property included, which has gold-bearing veins. See my previous message on Fundy Minerals, Ltd., a new discovery for me. FL ]
2006-05-05 11:17 ET - News Release
Mr. Greg Isenor reports
MERREX CONCLUDES PROPERTY PURCHASE AGREEMENTS WITH HIGH RIVER GOLD
Merrex Resources Inc., further to the corporation's news release on Dec. 1, 2005 (see Stockwatch, Nov. 30, 2005), has concluded the formal property purchase agreement with High River Gold Mines Ltd. of Toronto, Ont., to acquire a bundle of resource exploration property interests.
Still subject to certain terms and conditions, including regulatory acceptance and the closing of the pending acquisition by the corporation of Jubilee Mineral Ltd., the corporation has agreed to pay High River $361,414.53 in exploration cost reimbursement and issue to High River 2,245,000 common shares from treasury at a deemed issue price of 40 cents per share for the property interests.
For this consideration, the corporation will receive the following exploration property interests:
* West Voisey's Bay, Labrador -- a 50-per-cent interest in 451 claims (approximately 112.75 square kilometres) located on the border of Inco's main block, in joint venture with Celtic Minerals Ltd.;
* Hungry Hill prospect, Newfoundland -- a 50-per-cent interest in 232 claims in joint venture with Celtic Minerals;
* Sutherlands Pond prospect, Newfoundland -- a 50-per-cent interest in 50 claims in joint venture with Celtic Minerals;
* Red Lake/Birch Lake, Ontario -- a 100-per-cent interest in 16 non-contiguous claim blocks totalling 201 claims; and
* Fundy Sehnkweh Cestos permit, Liberia -- a 50-per-cent back-in right into Fundy Minerals Ltd.'s Liberian project.
Prior to execution of the formal property purchase agreement, the corporation concluded formal joint venture agreements with Celtic Minerals for each of the West Voisey's Bay, Hungry Hill and Sutherlands Pond properties. The joint venture agreements are subject to the corporation concluding its property acquisitions from High River and will only become effective after regulatory acceptance of the High River property purchase agreement.
As a condition of the acquisition, High River paid to Celtic Minerals an outstanding cash call on the Voisey's Bay joint venture in the amount of $361,414.53 and, as required by High River, the corporation agreed to deliver to High River certain personal guarantees that a minimum of $217,000 of the amount advanced to Celtic Minerals would be repaid to High River by the guarantors if the corporation failed to pay to High River the required $361,414.53. Joint and several personal guarantees have been delivered to High River by John Cumming, Gregory Isenor, Gary MacKenzie and Dan Whittaker. In consideration of the granting of these guarantees, the corporation has agreed to issue to the four named guarantors a total of 144,667 common shares as permitted under listings Policy 5.1.
The High River property purchase agreement and the guarantee bonus are specifically subject to exchange approvals.
NEW: Fundy Minerals (OFEX:FUN): gold in Liberian diamond property
[ Note: Fundy Minerals Ltd. is listed on the British OFEX Exchange for smaller companies, with symbol FUN. It is a New Brunswick Co. with mostly Canadian properties and its Liberian property is a diamonds property. But see the folllowing re gold. To get a quote on Fundy, go to:
http://www.ofex.com/cgi-bin/a2z.cgi?action=a2z&a2z=F
Fundy's homepage is at http://www.fundyminerals.com/
The Fundy Liberia property is involved in the Merrex - High River deal announced today which I'll post next. FL ]
Fundy Minerals Ltd - LIBERIAN GOLD ASSAY RESULTS
FOR IMMEDIATE RELEASE 3 MAY 2006
FUNDY MINERALS LIMITED
(OFEX: FUN)
LIBERIAN GOLD ASSAY RESULTS
The Board of Fundy Minerals Ltd ("Fundy" or "the Company"), the Canadian and West African exploration company, is pleased to announce results of assays from its Liberian activities on its Cestos Sehnkwen permit area.
The Company has been actively exploring and sampling in its previously announced diamondiferous areas. In parallel to its diamond reconnaissance, the Company has conducted recent sampling for gold assays, as field geologists have noted gold occurrences outcropping and in stream sediments.
Analysis was carried out by Alex Stewart Assayers OMAC laboratory in Ireland using the fire assay technique. Results in 62 stream sediment and soil regolith samples demonstrated trace gold occurrences with a number of samples showing anomalous values ranging from 254 ppb Au to a high of 1166 ppb Au.
Project Geologist Peter Ballah commented "OUR FIELD TEAM LED BY MYSELF, HAS MADE MANY OBSERVATIONS OF VISIBLE GOLD IN JIGGED CONCENTRATES, AS WELL AS A FEW OUTCROPPINGS. THE AREA IS THICK COVER REGOLITH HOWEVER THESE ENCOURAGING ANOMALIES WILL BE RE-VISITED AND A BROADER SAMPLING PROGRAM BE CONDUCTED. WE HAVE FURTHER SAMPLES BEING DRIED AND SIEVED FOR ANALYSIS BY ALEX STEWART ASSAYERS SHORTLY."
Fundy Chairman and CEO, Jeff Michel, added: "OUR FOCUS HAS BEEN AROUND THE ARTISAN DIAMOND DISCOVERIES AND SAMPLING DRAINAGES TO DETERMINE THE KIMBERLITIC SOURCE, HOWEVER WE HAVE ALSO NOTED THE PRESENCE OF THE TODI SHEAR BELT IN THE AREA WHICH HAS A HISTORY OF MINERALIZATION. THE ANOMALIES ARE A TREMENDOUS ADDITION TO OUR ALREADY EXCITING DIAMOND WORK. FURTHER WORK WILL BE CARRIED OUT TO EXPAND THE EXPLORATION OF GOLD BEARING HOSTS."
Scientific or technical information relating to Fundy's activity is based on direct supervision of, or has been reviewed by, Ken Whaley, PGeo., member of Fundy's Board of Advisors.
The Directors of the Issuer accept responsibility for this announcement.
--ENDS--
ENQUIRIES:
BISHOPSGATE COMMUNICATIONS LTD. TEL: 020 7430 1600
Maxine Barnes
Nick Rome
ST HELEN'S CAPITAL PLC TEL: 020 7628 5582
Barry Hocken
FUNDY MINERALS LTD TEL: 001 561 575 1720
Jeff Michel, Chairman / CEO
EMAIL: INFO@FUNDYMINERALS.COM
NOTES TO EDITORS:
Fundy was incorporated on 17 March 2004 by founders who have more than 50 years combined geological experience, and is based in New Brunswick (Canada). The Company is actively involved in the exploration of gold, diamond and base metals in Canada and Africa, and the development of technology in mineral and metal extraction.
The Company has a 100 per cent interest in 123 claims on eight mineral exploration and development properties in the Province of New Brunswick.
Each of these Prospects warranted bona fide exploration advancement that Fundy undertook in the 2004 field season, re-affirming the past historical exploration results, and generated encouraging confirmation of mineralized zones on each Prospect and strong assay results. Additionally the Company plans to place a high-grade limestone deposit in northern New Brunswick, into production later this year.
Fundy holds a permit for 2000 square kilometres of land in Liberia, West Africa, where it has been confirmed a significant quantity alluvial diamonds have been extracted. Fundy continues to explore for its Kimberlitic source.
Ghana: Coalition on Mining Blames Gov't For Rights Abuse in Mining Areas
[ Note: the word "galamsey" means local artisanal miner in Ghana. There is a Ghanaian law against galamsey mining on the operating concessions of the mining companies. In the exploration stage, galamsey activity is a main indicator of gold deposits for the companies. Some companies claim to be more worried about safety and liability of galamsey mining on their tracts than the theft of ore. FL ]
Ghanaian Chronicle (Accra), May 5, 2006, by Joseph Coomson
The National Coalition on Mining (NCOM) has said that atrocities committed against communities, the environment and the economy under the guise of law and order are deliberate acts by the state to offer protection for trans-national mining companies and to guarantee easy profitability at the expense of the human rights of its citizens, especially those living in mining communities.
Over the past two decades, communities in mining areas such as Tarkwa, Prestea, Obuasi, Kenyasi, Akote, Ada and Bolgatanga have suffered systematic violence and many of the acts that have resulted in the loss of property, severe injuries and deaths of innocent people.
Speaking at the launch of "Stop the violence in mining" campaign in Accra yesterday, Miss Gifty Djah, programme director of Abantu for Development and a member of the NCOM, said state agencies and mining companies have often set the conditions for violence in order to suppress and diminish the interests and concerns of local communities. Mining activities mostly take place in rural areas and the people who live in these areas have already been marginalized in terms of their access to quality education, health and other social and economic infrastructure.
She said mining activities have resulted in mass eviction and dislocation of whole communities, their environment the main source of livelihood destroyed and their total economic, social and political organization needlessly disrupted.
The programme Director said very little has been achieved from sustained mining boom despite gold prices hitting a 25-year high. The mining industry contributes only 5% to GDP and12% to revenue. The industry employs only 18,000 people and yet there is an escalating environmental and social cost externalized by the industry.
Loss of farmlands, clean environment, housing and fresh water, coupled with unsustained alternative sources of livelihood for most communities on the fringes of mines have been protested against. The protests take many, varied forms such as complaints, petitions and demonstrations calling the attention of the state and the mining companies to their survival, clean environments, and access to a minimum level of decent existence.
Narrating some incidence of brutalities, Miss Djah mentioned the following: that on February 2, 2006, soldiers acting on behalf of AngloGold Ashanti - Iduaprim Mine Limited shot four farmers in Teberebie; in Prestea, the communities demonstrated against Bogoso Gold Limited on July 13, 2005 and the company, in collaboration with the Ghana Military, opened fire on demonstrators, and seven people were wounded; on November 2, 2005, some farmers who embarked on a demonstration against Newmont's Akyem mine on compensation issues were greeted with gunshots and two people died.
"The invasion of communities by the military and police on the pretext of checking 'galamsey' in communities such as Sanso and Binsere in Obuasi are common. Awudu Mohamed was shot by a combined team of police, military and mines security on June 21, 2005 on allegation of embarking on 'galamsey'.
On September 29, 2005, there was a military/police and mine security swoop in Sanso in which a 70-year old woman was detained for eight days," she added.
The member of NCOM said Clement Kofi Baffoh of Aduaneye in Obuasi was arrested on June 9, 2004 by AngloGold Ashanti on allegations of 'galamsey' activities and died nine hours later.
Reading the speech on behalf of 13 mining non-governmental organisation, she said the naked force and violence against communities has permeated the extractive sector.
Based on the current democratization process, she said Ghanaians are entitled to question the legitimacy of the practice of deploying the state military and their use to offer protection for private companies.
The Programme Director said NCOM is demanding the state and the mining companies to stop the violence. It further called on the state to carry out public investigation into cases of violence against communities.
NCOM again demanded the state military not to be involved in mining projects and make the police accountable for their actions in accordance with their own rules.
"All laws applicable to the use of private securities and their relationship with the public should rigorously be enforced.
"We call on mining companies to respect the right of local communities, and the state must take its proper role of offering protection for the citizenry," she intimated.
Copyright © 2006 Ghanaian Chronicle.
Hi Mr. Monton.
African Gold Group (AGG.V) drilling in Mali
MAY 4, 2006 - 13:00 ET
African Gold Group, Inc: 10,000 Metre Diamond Drill Program Set to Extensively Test 'Zone 1' at Kobada, Mali; Mobilization Underway
TORONTO, ONTARIO--(CCNMatthews - May 4, 2006) - African Gold Group, Inc., ("AGG" or "The Company") (TSX VENTURE:AGG) is pleased to announce that it has entered into a long term contract with BLY (Boart Longyear) Mali S.A. to provide a minimum of 10,000 metres of diamond drilling at AGG's Kobada, Mali concession. Mobilization of all equipment and supplies is currently underway.
The Kobada concession is located in the Kangaba region of Mali. It hosts a significant anomaly that is defined by 12 kilometres of strike length with a corresponding width of 1 kilometre. This anomaly has greater than 500 ppm Arsenic-in-soil geochemistry with coincident extensive artisanal surface, hardrock and placer mining activity. Previous work on the concession, commencing in the 1980's, approximated US$3.5 million and was undertaken by French exploration entities: BRGM, La Source and Cominor (COGEMA). Their collective work comprised surface geochemical and geophysical surveys, 1,736 metres of AirCore drilling, 13,200 metres of RC drilling and 913.4 metres of diamond drilling. Their initial primary target within the 12 kilometre strike length that comprises the Kobada Trend has been a 1 kilometre zone of extensive artisanal hardrock mining activity referred to as "Zone 1" (see attached maps).
http://www.ccnmatthews.com/docs/Kobadafig1.pdf
http://www.ccnmatthews.com/docs/Kobadafig2.pdf
In November - December of 2005 African Gold Group, Inc. launched its initial exploration program at Kobada with two distinct objectives:
1/ Verify and confirm the historical exploration work undertaken by Cominor (COGEMA).
2/ Test the mineralization to depth and obtain samples of previously untested bedrock mineralization below the saprolite horizon.
Results and Analysis
The Results from AGG's 2005, 6 diamond drill hole campaign, totaling 1,033 metres, were disseminated in a press release issued on February 23, 2006, and are re-shown in Table 1 below.
TABLE 1 RESULTS FROM AGG's 2005 DIAMOND DRILLING CAMPAIGN
-------------------------------------------------------------------
From To Interval Au Ag
HOLE ---------------------------------------------------------
NUMBER m M m g/t g/t
-------------------------------------------------------------------
KB05-1 36.00 42.00 6.00 2.93
KB05-1 85.50 105.00 19.50 0.29
---------------------------------------------------------
KB05-2 51.00 72.55 21.55 1.11
KB05-2 incl. 51.00 60.40 9.40 1.20
KB05-2 120.50 122.50 2.00 0.75 38.7
-------------------------------------------------------------------
KB05-3 BEDROCK 106.50 144.00 37.50 1.23
KB05-3 incl. 106.50 111.00 4.50 3.91
KB05-3 126.00 129.00 3.00 4.40 6.1
-------------------------------------------------------------------
KB05-4 52.50 100.50 48.00 2.95
KB05-4 incl. 81.30 100.50 19.20 5.91
-------------------------------------------------------------------
KB05-5 BEDROCK 112.50 151.00 38.50 1.58
KB05-5 incl. 136.00 148.00 12.00 3.50
-------------------------------------------------------------------
KB05-6 BEDROCK 115.00 132.00 17.00 0.82
KB05-6 incl. 116.00 123.70 7.70 1.31
-------------------------------------------------------------------
"The above results provide AGG with the confidence to move aggressively with the development of the Kobada Gold Project, initially within the targeted 1 kilometre strike length within "Zone 1" of the concession and subsequently over the entire 12 kilometre strike length that comprises the Kobada Trend. AGG has successfully demonstrated oxide gold mineralization to a depth of approximately 125 vertical metres in saprolite, and furthermore have extended the gold mineralization an additional 25 metres into bedrock. The bedrock mineralization is characterized by intense veining/silification and disseminated arsenopyrite in intercalated argillites and greywackes and this mineralization remains open to depth. As previously stated, the thickness of the saprolite horizon bodes well for demonstrating the potential for a low cost surface deposit that will ideally compliment the deeper resource potential. The occurrence of very high grades of gold along with the presence of free gold strengthens the economic potential of this mineralization. Results to date emanate from within approximately 300 metres of the 1 kilometre primary target (Zone 1) and indicates a broad zone averaging 30 metres in width with an associated grade averaging between 1.0 and 3.0 grams per tonne. Furthermore, we are encouraged by the identification of mineralized cross structures intersected in KB05-6, which further adds to the broader potential of this new gold trend," states Greg Hawkins, P. Geo., Technical Director, AGG.
Work Program
The primary objective of the minimum 10,000 metre diamond drill program, which is concentrated within "Zone 1", is twofold and will run concurrently:
1/ Increase the confidence in the continuity of the known mineralized zone by diamond drilling a minimum of 49 holes, of infill drilling on 50 metre spacing, located between lines 1550S and 2600S (1.05 kilometres). The location of the proposed diamond drill holes is illustrated on the attached Surface Plan Map (Figure 1). A longitudinal section illustrates the pierce point position within the plane of mineralization (Figure 2).
2/ Increase the size of the mineralized body by testing its depth extension up to 200 metres down dip (-55 degrees), particularly on lines 2300S, 1800S - 1900S and 1600S, where both grade and thickness of mineralization are the strongest.
Additional objectives of this phase of exploration are:
- To refine the geological and structural interpretations of the immediate region,
- To identify the controls to the mineralization,
- To continue exploration for strike extension of "Zone 1" within the Kobada concession.
- To identify additional prospective zones throughout the remaining 12 kilometres of anomalous strike length contained within the 41 sq km concession.
- Detailed surface mapping of the artisanal workings with a particular focus on structural orientations throughout the concession
- Detailed prospection and mapping of the duricrust to identify areas of silicification and/or brecciation throughout the concession.
Corporate Update
The Company is pleased to announce that it has issued an additional 330,000 common shares of its capital at $2.00 per share, for gross proceeds of $660,000 under the terms of the private placement of up to 4,000,000 common shares which was announced on March 20, 2006. The securities issued under the private placement are subject to a four month resale restriction that remains in effect until September 5th, 2006.
The private placement was non-brokered, however, the Company has issued finder's fees totaling $33,000 which represents 5% of the portion of the gross proceeds subscribed for through the finders. In addition, a total of 33,000 finder's warrants were issued which represents 10% of the portion of common shares subscribed for through each of the finders. Each finder's warrant entitles the holder to acquire one common share at $2.25 per share for a twenty-four (24) month period from the date of closing.
Proceeds from this placement will address general working capital requirements and the continuation of work programs at AGG's Ghana and Mali gold concessions.
The Company is following the advice and counsel of its major institutional shareholders who have strongly recommended that further dilution incurred at these price levels, given the Company's prospects and within the context of the current gold market, are not justified and therefore no further proceeds will be accepted by the Company under the terms of the March 20, 2006 private placement. Final gross proceeds to date under the terms of the March 20, 2006, private placement are equal to $4,789,000, representing 2,394,500 common shares, and such amount more than adequately funds the Company's treasury requirements.
African Gold Group, Inc., based in Toronto, Canada, is engaged in the identification, acquisition and exploration of prospective gold projects that are situated along significant gold trends within West Africa. To date, the Company controls a total of nine gold concessions that are consolidated in five separate standalone exploration projects, of which three projects are located in Ghana and the remaining two are located in Mali, West Africa.
Additional Information is available on the Company's website at www.africangoldgroup.com and on www.sedar.com and through the Company's offices at: BCE Place, Canada Trust Tower, 27th Floor, 161 Bay Street, Toronto, Canada M5J 2S1
On Behalf of the Board:
Michael A. J. Nikiforuk
President, Director
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
CONTACT INFORMATION
African Gold Group, Inc.
Michael A. J. Nikiforuk
(416) 572-2225
info@africangoldgroup.com
www.africangoldgroup.com
NEW: Pelangio Mining (PLG.T), Ghana. How'd we miss this one?
See
http://www.pelangio.com/
They just got some properties near Obuasi, Ghana, from newly-listed Australian explorer Castle Resources, for $20 million dollars. (I don't know whether that's Canadian, Australian or American dollars):
2 May 2006
ASX Announcement
Castle Commences Exploration & Neighbouring Tenements Sell for $20 Million
Castle Minerals Limited (ASX:CDT) is pleased to announce its successful listing on the Australian Stock Exchange.
Listing was achieved just three weeks from the IPO being open for acceptance. The IPO was very well supported with the targeted $3.75 million raised in just over one week oversubscriptions were not accepted). At the time of listing the Company has a total of 38.33 million ordinary fully paid shares on issue to 456 shareholders. Exploration has today commenced at the Banso and Antubia gold projects in Ghana with field crews employed to undertake detailed sampling and pitting on both projects.
A reverse circulation drill rig has been booked for August (‘the little dry season’) to drill Castle’s four kilometre long Banso soil and trench anomaly. Banso lies along strike from the 8 million ounce Akyem goldmine which is currently in the construction phase with the worlds largest gold miner Newmont, investing approximately US$400 million at Akyem.
Castle’s directors note that four mineral concessions immediately west of and in part, abutting Castle’s Banso project have recently been acquired by Canadian Company Pelangio Mines Inc. in a deal which now values those tenements at over AUD$20million. No gold resources are known on these tenements but they are considered highly prospective. A plan showing Castle’s Banso Project and Pelangio’s tenements is attached. Along with my fellow directors, I would like to welcome all shareholders and thank them for their support. I look forward to providing you with details of our exploration results as they come to hand.
Michael Ivey
Managing Director & CEO
PMI (PMI.V) $1m from Orezone (OZN) for Ghana
PMI VENTURES LTD.
Suite 511 – 475 Howe Street
Vancouver, British Columbia, Canada V6C 2B3
Phone: (604) 682-8089 Fax: (604) 682-8094
News Release #06-11 TSX Venture: PMV Frankfurt/Berlin WKN 888063
May 2, 2006 Issued & Outstanding: 50,864,153
Fully Diluted: 75,566,725
PMI forms a Strategic Alliance with Orezone Resources Inc.
Closes $1 Million in financing.
PMI Ventures Ltd. (PMI) (TSX/V: PMV) is pleased to announce that it has closed an agreement with Orezone Resources Inc. (Orezone) (AMEX and TSX: OZN), whereby Orezone invested $1 million by private placement in the equity of PMI. Orezone is an emerging gold producer that has an exploration permit for Essakane, the largest gold deposit in Burkina Faso, West Africa where its partner Gold Fields Limited is earning a 60 per cent interest by completing a bankable feasibility study. Orezone also has a pipeline of promising projects, all located in politically stable areas of West Africa. The investment in PMI is part of Orezone’s strategy of using its technical expertise and financial resources to increase its leverage to exploration success in West Africa, which is one of the fastest growing gold producing areas in the world.
PMI has received TSX Venture Exchange approval for, and has closed, the private placement of 4,000,000 units at the price of C $0.25 per unit, each unit consisting of one share and one non transferable share purchase warrant, exercisable for two years at C $0.35 per unit. All of the shares, warrants and any shares issued upon exercise of the warrants comprising the units are subject to a hold period and may not be traded in British Columbia until September 2, 2006 except as permitted by the Securities Act (British Columbia, Alberta or Ontario) and the TSX Venture Exchange.
Orezone will retain the first right of refusal on any of PMI’s projects in Ghana for one year, can participate in future financing, will take part in exploration budgeting and planning meetings and will be available to offer technical advice on projects as requested by PMI. Orezone will also be invited to join the board of PMI with one seat after the next Annual General Meeting so long as it retains its minimum share position.
About PMI Ventures
PMI has a net 86% interest in the 382 square kilometre Ashanti II gold project concessions as well as a net 80% interest in the 84 square kilometre Ofoase gold concession, both located in southwest Ghana in one of the world's major gold mining areas. Several of the world’s largest gold mining companies are currently investing over US$1.5 billion in new mining projects in Ghana. Since early 2003, PMI has expended over US$5.0 million consolidating and exploring these concessions.
In 2004/05, internationally recognized structural geology consultants were engaged to review the exploration data and to refine the geological model. Twenty five large gold exploration targets were identified and ground geophysics subsequently employed to develop specific target sites. These targets, some with significant gold intersections from previous drilling and extending up to 3 kilometres long, now form the basis of the 2006 drilling program.
The Orezone financing, in combination with PMI’s recently completed C$886,000 private placement which closed in March, 2006 will support and extend the major drilling and field work program that started at the Ofoase concession in early April, 2006. This program will then continue on to the main Ashanti II concessions later in the year.
PMI is targeting projects with the potential for a gold discovery of +2 million ozs, using environmentally sound and ethical business practices. The Company looks forward to a long term productive working relationship with Orezone.
On behalf of the Board,
"Pearce Bowman"
Pearce M. Bowman
Executive Chairman
For further information please contact:
Douglas R. MacQuarrie, President
Telephone: 1 (604) 682-8089 Toll-Free: (888) 682-8089 Facsimile: 1 (604) 682-8094
Or visit the PMI Ventures Ltd. website at www.pmiventures.com or in German: http://pmi.goldseiten.de
THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
This news release contains forward-looking statements which involve known and unknown risks, delays and uncertainties not under the Company’s control which may cause actual results, performance or achievements of the Company to be materially different from the results, performance or expectations implied by these forward-looking statements.
Gold Fields [GFI] 'bonanza-striking' partner [Glencar] finds more in Mali
See:
http://www.miningweekly.co.za/min/news/today/?show=85469
Gold Fields 'bonanza-striking' partner finds more in Mali
Ian CockerillSouth African Gold Fields' 'bonanza-striking' partner, Glencar, has extended its Mali find.
Glencar Mining plc said in a media release on Wednesday that it had intersected further significant ore-grade gold mineralisation in the prospective West African country, which was now the continent's second-largest gold producer.
The Glencar media release followed confirmation on Tuesday that Gold Fields had agreed to assist the London-listed junior exploration company, Glencar, financially. In answer to a question from the media during Gold Fields' announcement of excellent March quarterly results, Gold Fields CEO Ian Cockerill said that, in exchange for financial assistance, Gold Fields would be entitled to 50% of viable discoveries and an additional 10% on completion of feasibilities. Thereafter any projects would be jointly developed.
“It is a standard Gold Fields exploration earn-in in what appears to be quite an interesting part of the world. It is just another way that Gold Fields is piggy-backing on juniors who are working in what appear to be prospective areas. We have done it before and, hopefully, we can hit another run with this one,” he said.
Glencar said in the release that it had completed a new drilling campaign at its Komana West target in southern Mali. It said that, during this campaign, it had intersected further significant ore-grade gold mineralisation to the south of the area drilled in the first phase of drilling last December, where one borehole intersected what Glencar described as 'bonanza' grades of 55,19 g/t over 20 m. Glencar said further that two of the recent holes intersected were 11 m at 41,84 g/t uncut and 13,19 g/t cut and in a second area 31 m at 4,27 g/t. This extended the total strike length - over which ore-grade mineralisation had been intersected - to 1 100 m.
Details on new Glencar hit: 11m@41.95, 31m@4.27gpt Gold
See:
http://www.glencarmining.ie/press/2006/0605_1.html
Glencar finds Mali gold extension (GEX in London)
Tuesday, May 02 11:40:10
(BizWorld)
Irish exploration company Glencar Mining has confirmed that the recently completed drilling campaign at its Komana West target in southern Mali has proved successful.
It confirmed today that the programme has intersected further significant ore grade gold mineralisation.
The intersection was made up to 250 metres along strike to the south of the area drilled in the first phase of drilling last December, where one borehole intersected bonanza grades of 55.19 grams/tonne over 20 metres.
The second phase drilling programme comprised of 27 reverse circulation drillholes totalling 2,778 metres. The programme was designed to explore the potential extent of the mineralised zone encountered in the first phase programme.
The results of this second phase programme show that ore grade mineralisation over considerable widths exists 250 metres to the south of the previously reported mineralised zone.
This extends the currently known strike length of the ore grade mineralisation to 1,100 metres.
NEW: Mincor has property in Guinea; trades in Sydney as MCR.
See:
http://www.mincor.com.au/other_operations/africa.phtml