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Birim (BGI.TO) finds new goldfield on Bui property
BIRIM GOLDFIELDS INC.
TSX SYMBOL: BGI
OCTOBER 20, 2004 - 09:27 ET
Birim Goldfields Inc.: Extensive Gold-In-Soil Anomaly
Outlined at Kuri on the Bui District, Ghana
MONTREAL, QUEBEC--(CCNMatthews - Oct. 20, 2004) - Birim Goldfields Inc.
(BGI:TSX) ("Birim" or "the Company") is pleased to announce the results
of an extensive reconnaissance soil sampling program on its Kuri
prospect, located in the northern region of its Bui District property in
Ghana. Kuri is the target of the largest concentration of galamsey
(artisanal) mining on the Company's reconnaissance license.
The extensive preliminary soil-sampling program undertaken on the Kuri
target area in July 2004 is now completed. In total 2,747 samples were
collected and analyzed, of which 9.2% were quality control samples. A
regional 2,535-sample soil grid was established on an 800 meter by
50-meter pattern using GPS control. Soil lines were oriented
northwest-southeast, perpendicular to the regional lithological strike
and previously mapped structural lineaments. The grid covers an
approximately 9.6 x 10.0 km area of the Bui Reconnaissance License (see
attached map).
Assay results show that 95 of the soil geochemical samples are higher
than 100ppb gold and an additional 218 of the soil samples assayed are
higher than 50ppb gold. The highest recorded soil assay value was
8,760ppb gold. Preliminary interpretation of these results indicates
that three broad zones of anomalous soil gold have been defined; two of
which have strike lengths of over five kilometers each (see attached
map). It is likely that these large soil anomalies are caused by a
number of underlying mineralised vein sources and infill soil
geochemistry will be needed to define each source. The Company plans to
continue testing all three anomalous zones with follow-up infill (200
meter by 50-meter) soil sampling.
Tombe-North
The 880-meter Phase III reconnaissance RC drill program, undertaken to
test the Tombe-North high-grade gold zone to a depth of 100 meters, is
now completed. Research to date indicates that the 350-meter long
Tombe-North gold zone comprises the most prospective part of the overall
45-kilometer long Tombe-Parabu stream sediment gold trend.
The RC drill program involved a total of 7 re-entries and deepenings of
existing drill holes on lines 27,050 N, 27,100 N, and 27,150 N, and a
new hole on each of latter two lines. Two to three kilogram samples
collected for each meter drilled were submitted to Transworld
Laboratories in Tarkwa, Ghana for assaying. Drill results at depth did
not match the significant values found near surface along this gold
trend. A review of the cumulative RC drilling results to date on the
Tombe-Parabu gold trend is underway to determine the future course on
this target area.
Birim's 7,000 square kilometer Bui District covers the entire Bui
Structural Belt in northeastern Ghana. This Belt is underlain by
Tarkwaian Group and Birimian Supergroup metasediments. These geological
units are host to the +20 million ounce Tarkwa gold deposit and the +60
million ounce Ashanti gold deposit on the Ashanti Belt in Ghana. Birim
continues to identify large-scale gold target areas on the Bui District
and has numerous exploration initiatives underway, reinforcing its
commitment to gold exploration in Ghana. Birim Goldfields Inc. is a
royalty-based exploration company and trades on the Toronto Stock
Exchange under the symbol BGI.
A map is available on CCNMatthews' Website at the following address:
http://www2.ccnmatthews.com/database/fax/2000/gold.doc
FOR FURTHER INFORMATION PLEASE CONTACT:
Birim Goldfields Inc.
Denis Simoneau
President
(514) 393-8611 or 1-800-721-8611
(514) 393-1158 (FAX)
Email: info@birim.com
Web site: www.birim.com
Orezone's (OZN) Sega gold project in Burkina Faso
http://www.orezone.com/site/media/press98.asp
October 20, 2004:
Sega Drilling Extends Gambo Zone
Results include 38 m grading 2.7 g/t and 13m grading 4.5 g/t
Orezone Resources Inc. (OZN:TSX, AMEX) is pleased to announce the latest results from a 20,000m drilling program being carried out on its 100 per cent owned Sega gold project in Burkina Faso, West Africa. The objectives of the current program are to expand resources in the Gambo, Bakou and RZ zones which all lie in a relatively small 2.5 km2 area, and to investigate a new target at Tiba, 6 km to the northeast. The Sega permit is 164 km2 in size and contains a large number of artisanal workings and coincident gold in soil anomalies that have not yet been fully tested.
The latest drilling included 22 holes to infill the existing resource on the Gambo Zone and to test its projected down plunge extension. Results included 38m grading 2.7 g/t in hole GRC186, 13m grading 4.5g/t in hole GRC190 and 21m grading 2.1g/t in hole GRC187 and confirmed that the zone is still open to the south. A further 10 holes were drilled in the recently discovered RZ Zone. Results included 13m grading 4.1 g/t in hole RZC207 and 25m grading 3.0 g/t in hole RZC228. Significant potential still exists to expand the size of the RZ discovery along strike and at depth and through drilling of a number of en echelon structures. 13 holes drilled into the Tiba zone included TBC170 which intersected 8m grading 3.7 g/t and hole TBC171 which intersected 16m grading 4.5 g/t.
Ron Little, President and CEO, stated that "At Sega we are dealing with a very large system with multiple zones of mineralization. All zones still require infill and delineation drilling and are not yet closed off. Priority will be given to the RZ zone which has higher average grades and the greatest expansion potential." He added that "We have a US $2 million budget and our goal is to aggressively drill Sega over the balance of the year in order to produce a resource calculation early in 2005."
Summary of Latest Drill Results
(see complete table at www.orezone.com/segatable.html)
[TABLE]
Note: Samples were collected every 1m down the hole and analyzed using a 2kg bottle roll cyanide leach at the Transworld Laboratory in Tarkwa, Ghana, an internationally recognized laboratory. A minimum of 5% of the samples is for QA/QC, which include duplicates, triplicates, standards and blanks. The program was carried out under the supervision of Jeffrey Ackert, VP Exploration, and qualified person for Orezone.
Orezone Resources Inc. (OZN:TSX, AMEX) is an emerging Canadian gold producer with three advanced exploration projects in Burkina Faso, West Africa that are moving rapidly toward the pre-feasibility stage. Burkina Faso is a politically stable country that is located in one of the world’s fastest growing gold producing regions. Orezone’s mission is to create wealth by discovering and developing the earth’s resources in an efficient and responsible manner.
FORWARD-LOOKING STATEMENTS: This news release contains certain "forward-looking statements" within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended. Except for statements of historical fact relating to the company, certain information contained herein constitutes forward-looking statements. Forward-looking statements are frequently characterized by words such as "plan," "expect," "project," "intend," "believe," "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. These factors include the inherent risks involved in the exploration and development of mineral properties, the uncertainties involved in interpreting drilling results and other geological data, fluctuating metal prices, the possibility of project cost overruns or unanticipated costs and expenses, uncertainties relating to the availability and costs of financing needed in the future and other factors. The Company undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change. The reader is cautioned not to place undue reliance on forward-looking statements.
NEW in Senegal: Oromin Explorations (OLE.V)
http://www.ccnmatthews.com/scripts/ccn-release.pl?/2004/10/20/1020176n.html
OROMIN EXPLORATIONS LTD.
TSX VENTURE SYMBOL: OLE
OCTOBER 20, 2004 - 18:33 ET
Oromin Named Successful Bidder in International Bid
Process and Acquires Highly Prospective Senegal Gold
Project
VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Oct. 20, 2004) - Oromin
Explorations Ltd. (TSX-V:OLE) is pleased to report that the Oromin Joint
Venture Group has been awarded an exploration concession by the
Government of Senegal covering 230 square kilometres (the "Sabodala
Project") in West Africa.
The 230 square kilometre Sabodala Project is underlain by the same
greenstone geologic environment that contains the broad Mali-Senegal
Shear Zone, which hosts many large gold deposits in adjacent Mali,
including the Sadiola Gold Deposit of IAMGold and Anglogold. The 9.8
million ounce Sadiola Gold Deposit has an annual production of
approximately 600,000 ounces of gold. Additional world-class gold
deposits in adjacent Mali hosted by the same structural/geological
environment include: Morila (5.6 million ounces); Syama (5.2 million
ounces); and Loulo (4.0 million ounces).
The Oromin Joint Venture Group ("OJVG") is a joint venture between
Oromin (43.5%), a private Saudi Arabian investor group (43.5%) and a
private Senegalese investor group (13%), with Oromin providing
exploration and management services. The exploration concession grants
to the OJVG the sole right to acquire a 100% interest in the 230 square
kilometre Sabodala Project by spending at least US$8 million on
exploration over 22 months. Under the terms of the OJVG Agreement, the
private Saudi group will provide the initial US$3.3 million in
exploration expenditures with Oromin providing the subsequent US$4.7
million commitment. In addition, the private Saudi group has a right of
first refusal to provide financing, through an equity placement in
Oromin, of up to US$4 million of Oromin's expenditure commitment. The
private Senegalese investor group holds a free carried interest until
the initial US$8 million commitment is completed, at which time the
three parties will bear all future costs associated with the exploration
and development of the Sabodala Project on a pro rata basis, or be
subject to dilution.
The Sabodala Project surrounds the 20 square kilometre exploitation
concession (see attached plan map) that hosts a number of mineral
prospects, including the Sabodala Gold Deposit, and is located in
southeastern Senegal, some 600 kilometres from the capital city of
Dakar. Access to the project area is very good with all-weather roads
leading to and throughout the project area, as well as airplane access
to a private, paved air-strip within the concession boundaries. The
political climate in Senegal is excellent and the country's newly
enacted Mining Code is very attractive for both exploration and
development of mineral resources.
The most extensive past exploration on the 230 square kilometres covered
by the Sabodala Project was undertaken by BRGM (Geologic Branch of the
French Government) between 1976 and 1992. The majority of the BRGM
exploration activity throughout this region was focused on the immediate
area of the Sabodala Gold Deposit that lies within the 20 square
kilometre Sabodala Exploitation Concession, surrounded in its entirety
by the much larger exploration concession which comprises the Sabodala
Project (see attached plan map). As part of BRGM's exploration,
extensive drilling was carried out at the Sabodala Gold Deposit
including intersections of:
/T/
Hole Interval (m) Gold (g/t)
S11J 58.0 7.9
S2K 21.0 8.9
S4L 35.0 5.6
S2L 18.6 27.6
S1H 20.5 8.5
/T/
A series of resource calculations, undertaken by BRGM and later audited
by Mintech International estimate approximately 500,000 to 1,000,000
ounces of gold resources for the Sabodala Deposit. These calculations
predate the implementation of National Instrument 43-101. Subsequent to
the exploration efforts of BRGM, a local company initiated small-scale,
open-pit mining of near surface oxide ore at the Sabodala Gold Deposit
and one other deposit in the region. However, very little exploration
using modern techniques has been conducted on the surrounding Sabodala
Project as the exploration concession has only just become available
through the Government of Senegal's international bid procedure.
Encouraging regional exploration results by BRGM indicate that the
hosting geologic environment and structural regime controlling the
Sabodala Gold Deposit underlie much of the surrounding Sabodala Project.
Numerous high priority exploration targets, mineral occurrences, gold
prospects and gold deposits occur within the extensive northeasterly
trending structural zone transecting the majority of the Sabodala
Project.
One such target area, the Golouma Prospect, is associated with
multi-episodal quartz stockwork veining and silicification within an
extensive circular feature measuring approximately 2.0 kilometres in
diameter. This circular feature lies along the eastern flank of the
Mali-Senegal Shear Zone, a 5.0 kilometre wide northeasterly trending
structural zone hosting all of the known mineralized showings and
deposits (including the Sabodala Gold Deposit) over a minimum 12
kilometre length. The Golouma Prospect has never been drilled although
it has been the focus of previous alluvial mining activities within the
younger sediment covered valleys adjacent to the highly silicified
hillsides distributed within the extensive circular feature. Preliminary
trenching results obtained by BRGM from the Golouma Prospect include:
3.4 g/t gold over 4 metres, 5.4 g/t gold over 5.5 metres and 11.4 g/t
gold over 6.5 metres, with none of these trenches exposing the full
width of mineralization present. The Golouma Prospect is drill-ready and
Oromin intends to begin drill evaluation of this prospect as soon as
possible following mobilization.
A second priority exploration target, the Kobokoto Prospect, is located
on the western flank of the 5 kilometre wide structural zone. As with
the Golouma Prospect, the Kobokoto Prospect has never been drilled
although BRGM reported grades from a series of exploration pits here
ranging from 1. 5 to 63.5 g/t gold and a series of trenches including:
3.5 g/t gold over 3 metres and 4.5 g/t gold over 3 metres, neither
trench covering the entire mineralized width. The Kobokoto Prospect is
drill-ready and Oromin intends to begin drill evaluation of this
prospect as soon as possible following mobilization.
Oromin is extremely pleased to have been granted the Sabodala Project
exploration concession given the high level of interest in the project
from senior international mining companies. The project's location
within the Mali-Senegal Shear Zone and its proximity to the Sabodala
Gold Deposit is highly prospective, giving it significant exploration
potential.
Oromin's geological consultants visited the Sabodala Project to carry
out due diligence as part of the international bid process and have
begun preparation of a geological report in compliance with National
Instrument 43-101.
Oromin plans to immediately initiate an aggressive exploration program
on the Sabodala Project. Exploration activities will include
Landsat-Radarsat imagery interpretation, airborne geophysics, ground
geophysics (including magnetics and induced polarization), regional and
detailed geochemistry surveys, prospecting, geological and structural
mapping, manual and mechanical trenching and extensive drilling,
beginning with drilling on the Golouma and Kobokoto prospects in the
vicinity of the BRGM trenching as soon as possible after the
commencement of exploration.
In addition to the Sabodala Project, Oromin is presently negotiating to
acquire a highly prospective gold property in Brazil.
Oromin has been advised by its joint venture partner on its Santa Rosa
oil and gas prospect in Argentina, Surge Global Energy Inc. ("Surge"),
that Surge expects to complete its purchase of a 50% interest in Santa
Rosa shortly. Following the completion of Surge's acquisition of its 50%
interest in Santa Rosa, Oromin and Surge will jointly undertake the next
phase of the exploration program, at an estimated cost of US$1,350,000,
which will consist of interpretation of seismic data, completion of
environmental studies, drilling three exploration wells and, contingent
upon success, completing one production well. All required funding for
the upcoming phase of exploration and all future exploration and
development of the Santa Rosa property, will be borne equally by each
party.
On behalf of the Board of Directors of
OROMIN EXPLORATIONS LTD.
Chet Idziszek, President
NOTE: There is a map of the Sabodala Project available on CCNMatthews'
website:
http://www2.cdn-news.com/database/fax/2000/OLE1020.pdf
FOR FURTHER INFORMATION PLEASE CONTACT:
Oromin Explorations Ltd.
Chet Idziszek
President
(604) 331-8772
(604) 331-8773 (FAX)
Website: www.oromin.com
NO STOCK EXCHANGE HAS APPROVED OR DISAPPROVED THE INFORMATION CONTAINED
HEREIN.
St.Jude (SJD.V) hits 10m 7.64g/t gold at Benso
http://www.stjudegold.com/pdf/nr_159.pdf
St. Jude Intersects More Gold at Benso, Including 7.64 g/t over 10 meters
Vancouver, October 19, 2004 - St. Jude Resources Ltd. (SJD-TSX.V) is pleased to announce drill results from the company’s wholly owned Benso gold project in Ghana, West Africa. At Benso, the company has concentrated its exploration on the Subriso Block in the area of the historic Subriso Gold Mine. Here, detailed geological, geochemical and geophysical studies have been carried out, and 15 separate mineralized zones have been identified within two large north-south parallel areas of surface enrichment (see attached map). These two highly prospective anomalies are each up to 3,000 meters in length.
New drill highlights from the G zone include 14.69 g/t over 4 meters, 3.84 g/t over 9 meters and 4.13 g/t over 9 meters. The G Zone remains open at depth and along strike and is one of the largest zones discovered to date by St. Jude in Ghana. Here, ore grade drill intersections, across excellent mining widths, have been encountered over a strike length of 500 meters and to depths of over 100 meters. (Previously announced hole SJB-199 intersected 7.17 g/t over 14 meters at 110 vertical meters from surface). Exploration on other nearby prospects continues to be encouraging. For example, at C Zone 7.64 g/t over 10 meters (including 10.71 g/t over 7 meters) and 3.37 g/t over 13 meters have been encountered.
The following table lists significant new drill results from the ongoing program at Benso:
Dip Coordinates From - To Interval Grade
Hole #--Degree--Azimuth--North(m)--East(m)=-- (m)--Width(m)--g/tAu--Zone
SJB-248 -60 90 473.89 -1714.63 175 - 179 4 14.69 G
SJB-249 -45 90 346.55 -1577.48 11 - 20 9 3.84 G
11 - 29 18 2.23
45 - 58 13 3.16
Incl. 49 - 58 9 4.13
SJB-250 -45 90 344.76 1547.12 8 - 13 5 1.11 G
SJB-251 -45 90 293.21 -1530.55 3 - 30 27 1.51 G
Incl. 22 - 29 7 3.44
SJB-252 -45 90 701.92 -1825.99 86 - 102 16 1.25 G
91 - 99 8 1.88
90 - 102 12 1.46
127 - 132 5 1.19
SJB-253 -45 90 469.35 -1690.13 82 - 101 19 1.92 G
37 - 46 9 1.31 G
SJB-254 -45 90 1006.08 -1229.77 0 - 1 1 3.43 P
26 - 28 2 1.20
SJB-255 -45 90 169.84 -1881.74 - - - H
SJB-256 -45 90 1576.54 99.91 23 - 59.7 36.7 0.71 E
33 - 42 9 0.99
SJB-266 -45 90 148.76 202.51 30 - 40 10 7.64 C
Incl. 33 - 40 7 10.71
SJB-267 -45 90 95.7 287.47 55 - 60 5 2.23 C
77 - 81 4 1.04
77 - 90 13 3.37
Incl. 87 - 90 3 12.89
SJB-268 -65 90 -477.89 -1778.27 40 - 43 3 1.83 I
65 - 85 20 1.27
65 - 87 22 1.20
SJB-270 -70 90 -429.64 -1770.52 63 - 75 12 1.43 I
63 - 65 2 3.80
71 - 75 4 1.69
SJB-271 -45 90 137.48 348.11 33 - 38 5 1.8 C
63 - 66.7 3.7 0.84
SJB-272 -45 90 1625.74 102.34 24 - 33 9 1.46 F
42 - 47 5 1.14
SJB-277 -45 90 -405.13 -1715.93 10 - 19 9 2.62 I
SJB-278 -45 90 -760.76 -1911.65 49 - 52 3 1.51 J
59 - 66 7 1.10
At the southern Amantin block, the company is carrying out detailed exploration where high grade quartz veins have been encountered by St. Jude and previous operators. At the northern Chichiwelli block, St. Jude is embarking upon a separate exploration effort based in Tarkwa. Here, the previous operator BHP intersected 6.10 g/t over 6 meters and 13.11 g/t over 5 meters at the historic Chichiwelli Mine, which is at the eastern edge of the concession.
The drill results set out above will be incorporated into a N.I. 43-101 compliant initial gold resource estimate. The company expects to release this first report on Benso resources prior to month end.
Benso adjoins the company’s Hwini Butre property and is located on the southern end of the prolific Ashanti Gold Belt. St. Jude’s Hwini Butre property has established a 936,000 ounce gold resource (indicated 562,000 inferred 374,000) referred to as the Southern Deposits. Between the Southern Deposits at Hwini Butre and the Subriso zone at Benso, there are numerous advanced targets with significant potential to add additional resources.
Concurrently with exploration, St. Jude’s engineering team is performing baseline engineering studies to advance the projects through feasibility. Both Hwini Butre and Benso have strategic infrastructure advantages including good all weather roads, railroad and power grid, and ideal locale where the Southern Deposits are less than 25 km from the major seaport of Takoradi. St. Jude’s exploration program is under the direct supervision of George A. Flach, B.Sc., P.Geo., who is the qualified person responsible for the design and management of the drill program. Assaying is done by standard fire assay techniques with Atomic Absorption ("AA") finish on a one assay ton (30 gram nominal weight) sub-sample from the original 200 gram pulverized sample. A gravimetric finish is used for some of the higher grade assays normally above 10 g/t Au, or if visible gold is observed in the core. Sample preparation and analysis is conducted by SGS Laboratory Services in Tarkwa.
St. Jude is a leading West African explorer focused on the discovery and development of gold deposits amenable to low cost mining techniques. The company’s West African projects now cover over 2,900 sq. km. (716,605 acres) of one of the richest and most productive gold bearing regions in the world. With $11 million in cash, no debt, expanding gold resources, new discoveries and several advanced exploration targets, St. Jude is well positioned to continue its strong growth.
ST. JUDE RESOURCES LTD.
PER:
MICHAEL A. TERRELL,
President
No Stock Exchange has reviewed or accepts the responsibility for the
adequacy or accuracy of this release.
For further information, please contact:
Todd McMurray
Vice President, Corporate Development
St. Jude Resources Ltd.
Suite #200, 5405 - 48th Avenue
Delta, British Columbia
Canada, V4K 1W6
Tel: +1 - 604 - 940 - 6565
Toll Free - 866 - 281 - 2193
Fax: +1 - 604 - 940 - 6566
www.stjudegold.com
Gold Fields (GFI) board rejects Harmony (HMY) bid
I guess I agree with the GFI board. I like the Iamgold/GFI deal (unlike the no good Iamgold/Wheaton deal that was rejected), and I'm a bit unmoved by Russian Norilsk's desire to control all of GFI. Unless the offers or circumstances change, I think I'll be voting my GFI shares FOR the Iamgold deal and AGAINST the Harmony takeover. A mostly Ghanaian-Malian Gold Fields Spinoff might attract Newmont (NEM) or the like; they now like West, but not South, Africa.
FL
==========================
Gold Fields rejects Harmony bid
By CBS MarketWatch
Last Update: 11:05 PM ET Oct. 18, 2004
SAN FRANCISCO (CBS.MW) -- Johannesburg-based mining company Gold Fields Limited late Monday said its board of directors has unanimously rejected an unsolicited $8.1 billion buyout bid from Harmony.
Gold Fields reiterated its commitment to its proposed acquisition by Toronto-based Iamgold Corp. (IAG: news, chart, profile) (CA:IMG: news, chart, profile), announced in August.
Gold Fields said it prefers the Iamgold offer "as it provides an international platform for aggressive growth with full access to international debt and capital markets."
The company added that the Iamgold bid "unlocks the intrinsic value of Gold Fields' international assets and places control of a global growth vehicle firmly in South African hands."
Harmony (HMY: news, chart, profile), also based in Johannesburg, had offered 1.275 new Harmony shares for each Gold Fields share, and said the deal represented a 29-percent premium for Gold Fields stock.
===============
Russian Norilsk screwing up good Iamgold/GFI deal. eom
Harmony(HMY)/Norilsk want Gold Fields(GFI), spurn Iamgold(IAG)
Harmony to Buy Gold Fields
CBS Marketwatch
LONDON (CBS.MW) -- South African mining group Harmony announced Monday its intention to make an $8.1 billion offer for rival Gold Fields to create the second largest gold mining company in the world.
Harmony (HMY: news, chart, profile) (UK:HRM: news, chart, profile) said it would "shortly post" a detailed offer to Gold Fields (GFI: news, chart, profile) shareholders on the terms and conditions of the proposed merger. It said the deal has the backing of Gold Fields' largest shareholder, Russian metals giant Norilsk Nickel (NILSY: news, chart, profile).
Harmony shares closed Friday down 37 cents to $12.56. Gold dealers in London said the deal was the direct result of rising gold prices.
The terms offer 1.275 new Harmony shares or new Harmony ADSs for each Gold Fields share. The proposed deal sets a 29 percent premium for Gold Fields shares over the past 30 days, Harmony said, and values the company at $8.1 billion.
"This transaction represents tremendous opportunities for stakeholders of both companies," Harmony Chief Executive Bernard Swanepoel said. "Harmony has an extensive history of acquiring assets with turnaround potential and significantly enhancing their profitability. We calculate that we need a 15 percent cost reduction on Gold Fields' South African assets to justify our premium from this source alone."
Shareholders must choose between Harmony and Iamgold
The proposed bid could scupper Gold Fields' already announced plans to merge with Canadian firm Iamgold (IAG: news, chart, profile). Gold Fields shareholders will be asked to vote on the Iamgold merger before the end of the year.
Harmony said the offer is contingent on the Iamgold deal not proceeding, which it said it believes "to be contrary to the best interests of Gold Fields shareholders."
It added: "The immediate premium in our offer represents tangible value that can be realized today, rather than betting on a dubious re-rating scenario which is the foundation of the Iamgold transaction."
Norilsk, which bought a 20 percent stake in Gold Fields in March, has undertaken to "irrevocably vote" its entire block of shares against the Iamgold deal, Harmony said. Norilsk is thought to be against the deal because of current plans to spin off Gold Fields and Iamgold's combined operations in a new company with a separate listing, which would dilute Norilsk's stake.
Iamgold stock falls on Gold Fields deal rumors
Fri Oct 15, 2004 12:17 PM ET
VANCOUVER, British Columbia, Oct 15 (Reuters) - Shares in Iamgold Corp. (IMG.TO: Quote, Profile, Research) tumbled 9 percent early on Friday on rumors that its planned merger with the offshore assets of South Africa's Gold Fields Ltd. (GFIJ.J: Quote, Profile, Research) could be scuppered by a disgruntled Gold Fields shareholder.
"There is concern that Norilsk may seek to buy up more of Gold Fields and squash the Gold Fields-Iamgold deal," a Toronto-based gold analyst said.
Iamgold's stock slid as low as C$9.17 on the Toronto Stock Exchange but by late morning had recovered to C$9.75, a loss of 30 Canadian cents.
Internet mining publication Mineweb quoted unnamed sources as saying that Russia's Norilsk Nickel (GMKN.RTS: Quote, Profile, Research) was rumored to have increased its stake in Gold Fields, the world's fourth biggest gold producer, to 30 percent from the 20 percent it bought earlier this year.
Gold Fields and Iamgold shareholders are set to vote in December on their tie-up, which needs the blessing of a majority of each companies' investors. North American gold analysts have applauded the deal.
Since the Iamgold-Gold Fields deal was unveiled in August, media in Russia and South Africa have speculated that Norilsk may want to block the transaction as it intrudes on its plans to become a large international gold producer with Gold Fields.
Neither Iamgold nor Gold Fields could immediately be reached for comment. Norilsk's investor relations head, Dmitri Usanov ,said: "The official position of our company is that we do not comment on any market rumors which appear regularly."
Mineweb quoted Gold Fields spokesman Willie Jacobsz as saying that he had heard rumors that Norilsk had upped its stake but that he cold not comment further. He said Gold Fields had not seen "anything unusual" in its recent share trading volumes.
(Additional reporting by Eric Onstad in Johannesburg and Aleksandras Budrys in Moscow)
Gold Fields(GFI) takeover? Breakout on $95mil NYSE volume
Gold Fields is largely Ghanaian in addition to its South African assets; merger with Iamgold would make it also Malian. The following story may explain the price/volume explosion.
FL
==========================================
Gold Fields shrugs off talk of takeover
Oct 15 2004 07:18:12:000AM John Fraser and John Helmer Business Day 1st Edition
GOLD Fields yesterday insisted it had detected no unusual trading in its shares as rumours were revived that Norilsk Nickel of Russia was planning a takeover of the South African gold producer.
Analysts said they did not expect Norilsk would be satisfied with the 20% of Gold Fields the Russian company bought from Anglo American earlier this year.
But as neither Gold Fields nor Norilsk could confirm the rumour , uncertainty persisted over the future of the South African gold producer.
"We cannot speculate on rumours," said a spokesman for Gold Fields.
Industry sources said had Norilsk purchased any new shares in Gold Fields, this would have had to be notified to the markets.
Gold Fields shareholders will vote in December on a plan to reverse-list the company's nonSouthern African Development Community assets into Iamgold of Canada, in a deal that will give the Gold Fields parent company a 70% stake in the new international entity. It is to be re named Gold Fields International.
There have been rumours that Norilsk is unhappy with this strategy, but the Russian company would be unlikely to block the deal unless it boosted its stake significantly in Gold Fields to a level that would require a mandatory offer to minorities.
Gold Fields and Norilsk have said in the past that they hoped to work together, and were looking at potential synergies between their gold operations.
A further complication adding to the current uncertainty is the additional speculation that Norilsk is working with a South African partner to take over Gold Fields.
Harmony Gold has been mentioned.
The company's director Ferdi Dippenaar would not comment on this rumour yesterday.
But analysts believe that were such a teaming up to take place, it could result in Harmony taking over Gold fields' South African assets, with Norilsk acquiring the other assets, giving it a platform from which to list outside Russia.
Another scenario would give Norilsk control of Harmony, with Harmony in turn controlling Gold Fields. Such an arrangement would require approval from SA's competition authorities, but might win their blessing because it would involve a significant injection of foreign capital into SA's economy, said analysts.
Investment relations spokesman for Norilsk Nickel, Dmitri Usanov, yesterday refused to answer questions.
A source close to Polyus, the Norilsk Nickel gold-mining unit, said its strategy was not to acquire a larger stake in Gold Fields.
Instead, it was aiming to acquire additional Russian gold deposits, and to seek a major North American gold-mining company with which to list in either New York or Toronto.
Other sources close to Norilsk Nickel and Interros, the holding company controlled by Vladimir Potanin, Norilsk Nickel's principal shareholder, claimed Polyus was not part of the decision-making process that led to the acquisition of the 20% Gold Fields stake in March.
The sources claimed this move was initiated by Leonid Rozhetskin, the company's financial strategist. They claimed there had been a subsequent fallingout between Rozhetskin and Mikhail Prokhorov, Norilsk Nickel's CEO and Potanin's shareholding partner.
The details are hazy, but the sources believed Rozhetskin might leave Norilsk Nickel soon.
The sources doubted that Rozhetskin's strategy for sharebuying, leading to an eventual takeover of Gold Fields, had been agreed to by either Potanin or Prokhorov at this stage.
=================================
Etruscan(EET.TO) followed Semafo(SMF.TO) up 50% after Samira Hill gold production was announced.
In the last 5 days of September, Semafo suddenly shot up about 50%, then consolidated over C$1.00. Meanwhile its partner Etruscan was comparatively tame -- but then, in the last few days just past, Etruscan has had its own rise, also shooting up about 50%. Presumably both are benefitting from those gold bricks being poured at Samira Hill in Niger, and the on-time, under-budget, completion of that mine.
FL
Robex (RBX.V) Private Placement for Mali work
Robex Private Placement Oversubscribed $1,040,000 Will Be Provided for Mali Gold Projects.
10/15/2004
Robex Resources Inc. announces that its non-brokered private placement, announced 15 September 2004, is oversubscribed. The issue will provide $1,040,000 for general corporate purposes and for the Robex gold exploration and property-acquisition programs in Mali, West Africa. Under the terms of the offering, 1,733,333 Units (Units) will be issued at $0.60 each. Each Unit will consist of one Robex common share and one full non-transferable share-purchase warrant ("Warrants"). The Warrants will be valid for two years and each Warrant shall entitle the holder to purchase an additional Robex common share ("Share") at the exercise price of $0.80 per Share for a period of 12 months from the closing of the Offering and at the exercise price of $1.00 per Share for a period of 12 to 24 months from the closing of thffering.
A total of 100,000 Units will be purchased by insiders and members of the Robex Board of Directors, Marcel Bedard and Jean-Louis Robert. For assisting Robex in securing the financing, fees of $57,256 will be paid to finders. The securities issued under the Offering will be subject to a four-month-hold period. The terms and conditions of the Offering are subject to the approval of all appropriate regulatory agencies.
Robex Resources Inc (TSX-V: RBX), a Canadian gold exploration and development company, has been acquiring properties in Mali's famous gold-producing Kenieba Valley since 1996. Five major concessions, Diangounte, Kolomba, Dabiya-West, Kossaya and Moussala totalling more than 430 sq km, make up the Company's portfolio. Recently compiled data gathered during the 2004 field program have outlined a number of gold exploration targets and the Company is focusing the 2004-2005 drilling program on the Kolomba and Diangounte concessions' well-defined high-priority targets.
ON BEHALF OF THE BOARD OF DIRECTORS
"William H. Bird"
William H. Bird, PhD, PGeo,
President & CEO
William H. Bird, PhD, PGeo, serves the Board of Directors of the Company as an internal technically Qualified Person (as defined by National Instrument 43-101). The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
William H. Bird, President & CEO, Vancouver, BC, (604) 681-9558, birdwill@aol
Stewart Robertson - Vice-president - Trenton, Ontario (613) 392-2646
André Vézina - V.P. Business development - Québec (418) 670-1422
Marcel Bédard - President - email - marcelbedard@sympatico.ca
Jack Bal, Investor Relations, Vancouver, BC, (604)633-2442, jack.northface@telus.net
Was it MANAGEM's hedge rather than Semafo's, that roan was complaining about? It seems possibly so from the Managem story I posted. If it's really only a Managem hedge, then maybe it might not bind Semafo and it might not affect Semafo's profits at all.
Managem owns other (non-Semafo) gold mines in Morocco, which might be the basis for its hedging.
FL
Semafo (SMF.TO) is fit for a king, apparently.
(see the final sentence below)
Company News
Morocco's Managem starts Niger's gold mine
Fri Oct 8, 2004 07:24 AM ET
RABAT, Oct 8 (Reuters) - Moroccan Managem (MNG.CS: Quote, Profile, Research) mining firm has started operating the new Samira Hill gold mine in Niger which can produce a total of 618,000 ounces (19.2 tonnes), a company senior manager said on Friday.
"We expect to produce 135,000 ounces of gold in the first year but this production will gradually decline over the mine's six-year lifespan," the manager told Reuters.
The mine's cash cost per ounce is $177.
Managem's Canadian subsidiary Semafo (SMF.TO: Quote, Profile, Research) holds 40 percent of the project while 40 percent is held by Canadian firm Etruscan Resources Inc (EET.TO: Quote, Profile, Research) and 20 percent by the state of Niger.
The project required $71 million of investment, of which $40 million is for exploration alone.
Managem now produces 6.5 tonnes of gold each year. Samira Hill is set to help it overcome a tight financial bind after issuing the first profit warning in the history of the Moroccan bourse in June.
The warning, predicting losses of 50 million dirhams ($5.6 million) for 2004, followed excessive estimation of Managem's gold production potential in hedging operations.
Managem is Morocco's largest private mining firm and is owned by ONA Group (ONA.CS: Quote, Profile, Research) conglomerate, in which a holding controlled by the royal family is the main shareholder.
====================
You asked roan about specific properties, but on RANGY and GOLD I just want to point out that they have much less to do with one another than before. RANGY has sold most of its interest in GOLD, while making various other plays like a gold/uranium play with Afrikander Lease. Nowadays just the names with "Randgold" are similar.
RANGY has declined terribly compared with GOLD which has itself declined until its recent recovery. You can see it in the RANGY/GOLD ratio chart included in my message shown above as "in reply to" of this message. After much fussing, I chose RANGY over GOLD. Ouch. I'm still keeping my RANGY now, gambling that whatever Bret Kebble's shortcomings are, they've been adequately discounted now in the lower-than-net-asset-valued RANGY. But I could be wrong again.
FL
PMI Ventures (PMV.V) rose ca.50% today; volume. eom
What's West Africa's least-known country?
Guinea-Bissau. Even people living in Guinea generally have no idea what's going on in Guinea-Bissau.
This beats Niger, mentioned in my earlier message, and The Gambia, for international obscurity.
In the American press, Cape Verde, Sao Tome & Principe, Mayotte, and Malawi are very obscure. That used to be the case for Equatorial Guinea, Sierra Leone and Djibouti, but times changed. Since Emperor Bokassa, Central African Republic hasn't got much attention.
For worldwide gold/resource exploration, its arguably good to be an early participant in an "obscure" country -- but there aren't that many left in the world.
Champion Resources, now part of Red Back (RBI.V), said they did a general prospecting survey of Guinea-Bissau, but I don't think they found any significant precious metals. They did license a large phosphate deposit near the Senegalese border.
FL
Sharp rises now in several of our stocks
The following West African gold stocks have recently shot up, mostly on good volume except where noted. This seems like a possible change of trend, no doubt due in part to a $420 gold price. (The others are flat or moribund, mostly after long declines.) Look at the charts lonk in the header.
North Atlantic (NAC.TO)
African Gold Group (AGG.V)
Birim (BGI.TO)
Golden Star (GSC.TO, GSS) -- recovering from Iamgold fight
Red Back (RBI.V) -- slight recovery
St. Jude (SJD.V) -- up nicely but low volume
Goldcrest (GCL.V)
High River (HRG.TO) -- hopping
Orezone (OZN.TO, OZN) -- pushing up since June
Cassidy (CDY.V) -- at last?
Guinor (GNR.TO) -- up on low volume
Axmin (AXM.TO)
Etruscan (EET.TO) -- up on low volume
Iamgold (IMG.TO, IAG) -- nearly doubled on GFI merger
Semafo (SMF.TO) -- rocketing this week
Gold Fields (GFI) -- up 50% since July
Australian United Gold (AUL.AU)
Resolute (RSG.AU)
Cambrian Mining PLC (CBM London) -- incl coal
Defiance (DM.TO), being acquired by Rio Narcea, has had big volume trades, but is wavering.
[ Disclosure: I own shares in 10 of the above. ]
FL
Well, Gabon is on the west side of Africa, on the west shore, and seems definitely not to be in North, South, or East Africa, and it's not in the middle, so I'd say that this board is as good a place as any to cover Gabon. If Africa were rectangular, this issue would be simpler, but it's kind of L-shaped. And Gabon borders on one of the Guineas (Equitorial Guinea).
My reason for not buying SearchGold (RSG.V) was the fact that it has diamond properties; I don't particularly want to invest in diamond mining. Diamonds aside, the gold in Gabon sounds good.
FL
SearchGold (RSG.V) finds 22.75m@5.84g/t (8m@11.55) in Gabon
===================
FOR: SEARCHGOLD RESOURCES INC.
TSX VENTURE SYMBOL: RSG
SEPTEMBER 29, 2004 - 10:00 ET
SearchGold Reports More Solid Drilling Results From the Bakoudou Gold Project in Gabon
MONTREAL, QUEBEC--(CCNMatthews - Sept. 29, 2004) - SearchGold Resources Inc. is proud to release more drilling results of the ongoing 5,000 meters, 82 hole, diamond drill program performed on the Bakoudou Gold Project, under the technical supervision of Met-Chem Canada Inc. This drilling program is part of the Bankable Feasibility Study undertaken by SearchGold Resources Inc. to confirm the profitability of mining the Zone A, at the southern end of the Bakoudou gold bearing structure in Gabon, Central Africa.
Results highlights includes:
22.75 metres @ 5.84 g/t Au
including : 8.40 metres @ 11.55 g/t Au
10.25 metres @ 3.06 g/t Au
7.95 metres @ 3.15 g/t Au
1.80 metres @ 16.17 g/t Au
The following table presents detailed results:
Hole # From To Length Grades
m m m g / t Au
---------------------------------------------------------------------
BA04-14 52.45 55.45 3.00 3.55
72.00 73.50 1.50 2.95
BA04-01 57.00 64.95 7.95 3.15
70.20 72.00 1.80 16.17
BA04-10 1.50 3.0 1.50 1.69
9.25 12.85(open) 3.60 1.83
28.65 51.40 22.75 5.84
including: 42.0 50.40 8.40 11.55
BA04-09 6.00 9.30 3.30 3.09
13.00 23.25 10.25 3.06
BA04-08 7.0 11.00 4.00 2.77
16.50 18.80 2.30 4.17
25.25 25.85 0.60 4.74
The Company announced so far the results of 29 drill holes on a total of 82 and more Bakoudou drilling results will be published shortly. The drilling program is progressing and there are 32 holes left to drill after completing 50. The drilling program is approaching the heart of the zone A and some wide quartz vein are intersected in many holes as reported in Hole # BA04-10. Visible Gold is reported in many holes of the sector presuming incoming high grade results. Some 300 core samples were flown recently to Johannesburg and awaiting analysis.
Individual samples were taken from sawn half core at +/- 1 metre intervals in the mineralize zones. Quality control comprises 10% duplicates and inclusions of blanks and standards. The samples are flown to SGS LAKEFIELD RESEARCH AFRICA (PTY) LIMITED laboratory of Johannesburg, S.A., for analysis by fire assay using 100 g samples. The drilling program is under the supervision of Mr Pierre Allard of Met-Chem Canada Inc, an independent geological expert and Qualified Person.
SearchGold Resources is a Canadian based mining exploration company whose primary mission is to target, explore and develop diamond and gold deposits in Africa and in Canada. SearchGold's project strategy maximizes its experience and resources, and supports the company's commitment to strengthen shareholder value. Find out more about SearchGold Resources by visiting
www.searchgold.ca
Shares issued: 50,079,814
FOR FURTHER INFORMATION PLEASE CONTACT:
SearchGold Resources Inc.
Maurice Giroux
President
(514) 866-4224
info@searchgold.ca
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
========================
Speaking of AGG.V, is anyone here smart enough to explain what the ownership relationship is among African Gold Group (AGG.V), Columbia River Resources (CRVV on Pink Sheets) and the Mankranho property in Ghana itself? I was stumped to understand who effectively owns what portion of what. Take a look at my earlier message and the AGG/CRVV announcement, in the message to which this is a reply.
FL
Ivory Coast, the bad and the good
roan wrote: "As much as I loved Ivory Coast in the past , and worked there, the current state of affairs will not change in the short to medium term so starting mines there will be very difficult to say the least. The powers in country are profiting nicely from the current problems so they are in no hurry to change."
Yes, the decline in society (including but not limited to the recent civil war) in Ivory Coast may be one of the more depressing things in West Africa now. The iron hand and grandiosity of former life-president Félix Houphouët-Boigny has been succeeded by chaos, and a collapse of Ivoirian gentility, so I read.
But ..., from a gold exploration point of view, take a look at the map shown at the top of the header of this group. By far the largest areas of greenstone and Birimian/Tarkwaian potential seems to be in Ivory Coast. The least exploration and fewest operating mines, for the most potential. Am I wrong about this? At first glance, it looks as though Ivory Coast has been relatively under-explored for gold.
FL
Perseus Mining (PRU.AU) now trading on ASX eom
I looked at Etruscan first because of Samira Hill and the idea of investing early in Niger (one of Africa's least-known countries in the West). But A. Etruscan has South African diamond properties -- I don't want diamond mines -- and B. after studying the situation, I liked their Samira Hill partner Semafo's set of gold properties better than Etruscan's. (Back then, that is. Etruscan now has some new ones.) The Franco-Moroccan management (Managem) at Semafo/Samira struck me as a plus, though other investors may disagree. Also it seemed that Etruscan had slicker P.R. (which I don't like to see before I buy). So I got some Semafo for C$0.85/share in late June instead of EET.
(Tuesday my West African golds rose nicely for a change. I didn't sell Orezone (OZN) when some of you say you did -- I'm holding tight.)
FL
Hmm, $million+ Etruscan(EET.V) trade late Friday before announcement of Samira Hill today. Then EET went up today, for a change, with the announcement of Samira Hill mine in Niger beginning production.
Was somebody prescient?
(It was not I.)
FL
Two New Goldcrest (GCL.V) properties in Burkina Faso
See:
http://www.goldcrestresources.com/files/230904PRCombined.pdf
This PDF page includes an interesting-looking gold map of West Africa.
FL
African Gold PLC (AFG.London, not AGG.V) finds gold in Ghanaian wall rocks
27 Sep 2004
LONDON (AFX) - African Gold PLC said significant gold mineralisation has been intersected in initial drill holes at Owere/Konongo in Ghana.
In a statement, the company said the drilling confirms that substantial widths of highly-mineralised wall rock exist in the mine workings.
It said the results of all holes have confirmed the presence, continuity and grade of mineralisation in just one of nine such ore-bodies.
Previous drilling indicated the potential of the wall rocks to host an economic ore body and the current programme is focused on converting inferred and indicated gold ounces to measured ounces.
Drilling is ongoing and further results are expected in the very near future.
Co-chairman John Teeling said: "These are excellent results and fully support our belief that we can turn the 900,000 oz indicated gold resource into a significant gold mine."
newsdesk@afxnews.com
ra
Semafo (SMF.TO) seems competent, though
The last press release said:
"The Samira Hill gold mine is Semafo's second mine following the construction and operation of the Kiniero mine in Guinea and just like its predecessor, Samira Hill has been built respecting the original budget and timetable."
If true, it sounds to me as though Semafo can certainly develop and run a gold mine in remote francophone West African hinterlands. Not everyone can do it right. At a cash cost of US$177/ounce, won't they make good money even during a short $345 hedge period? (Assuming that they haven't hedged beyond their ability to produce gold.)
Semafo has recently declined a bit choppily on low volume, but not as badly as it its Samira Hill partner Etruscan (EET.
TO). I think Semafo has been growing "under the radar" of investors. Same for Birim (BGI.TO) in Ghana. I've never seen Semafo or Birim pushed by Canadian hypesters like some other stocks on this board. SMF and BGI just quietly go forward with competent management and gold-rich properties. Their managements honestly seem more interested in finding gold than in playing games with investors. Also, I think the in-and-out gold stock traders may be "Managem-shy" (Morocco's Managem has a controlling interest in, and operates for, Semafo. For anglophone Joe Six-Pack, Morocco=too weird.)
FL
Nigerian gold miners. No public companies?
=====================
Environment: Illegal Gold Mining Ruining Rural Nigeria
Inter Press Service (Johannesburg)
September 24, 2004
Posted to the web September 24, 2004
Toye Olori
Lagos
Disused pits dug by illegal gold miners dot the expanse of land which once served as farmland. Before the gold rush, the villagers in this sprawling farming community, called Igun, used to produce cash crops like cocoa, coffee and cola nuts.
When IPS visited the village in western Nigeria, the illegal gold panners had already left and had moved on to other locations in search of the precious gem.
"As you can see, the pits have been deserted after the miners had finished collecting the gold here. They have moved further to new areas leaving the lucrative farming business in the village in shambles," says Kola Olabisi, acting as IPS guide.
According to Olabisi, the illegal miners are mostly foreigners from neighbouring Niger and Chad.
Pointing to some abandoned rusty excavation equipment left behind by the state-owned Nigerian Gold Mining Company (NGMC), a subsidiary of the Nigerian Mining Corporation, Olabisi explained: "The activities of illegal miners became more pronounced in the last seven years when NGMC, folded up and abandoned its mining activities here. With its exit, the illegal miners took over and unleashed havoc on any land suspected to contain gold deposit."
For more than 12 years of its operation at the mines near Igun, the company dug up trenches which now form pools of undrinkable brackish water that constitute health hazards to both villagers and livestock.
The illegal miners followed in the company's footsteps digging up trenches in search of gold, creating more pits.
While the illegal gold diggers make thousands of dollars through their business, the locals get peanuts. And they are continuously faced with the dangers of environmental degradation to their farmlands and other hazards resulting from the open pits.
"We are suffering. The illegal miners have dug up our farms, posing dangers to our lives. Our crops have been destroyed because of their activities. Whenever we tried to question them, they showed us papers (mining rights) which they claimed were obtained from government," complains Olu Ibikunle, a farmer.
"Instead of being a blessing, the discovery of gold has become a curse to us. We no longer have enough good farming land, while our fresh waters are now polluted," he says.
As a result, women and children now walk long distances in search of clean drinking water.
Part of the problem seems to be rooted in poverty. IPS has learnt that the illegal miners pay - or bribe - some unsuspecting poor farmers to allow them prospect for the gem on their land. A lucky miner, who hits some good quantity of gold, could become an instant Naira millionaire as an ounce of gold fetches as much as 40,000 naira (about 400 dollars) in the market.
Femi Adefila, a senior government official in Oshogbo, the capital of Osun State, where Igun is located, told IPS: "Because of the large deposit of gold in the area, the illegal miners have seized the opportunity to perform their illegal acts."
"We recently arrested three illegal miners. They told us they work for a businessman. But when we tried to get to the businessman, he bolted. The three men have been charged for economic sabotage," Adefila said. Each of the men risks five years jail term on conviction.
Adamu Hassan, one of the apprehended men, said: "I work for a big man. Our bosses are businessmen from both Nigeria and abroad. Most of us do this as a means of survival. We sometimes melt the gold and sell to goldsmiths in Oshogbo," he said.
So far, local officials are powerless to stop the illegal miners. Osun State officials say mineral resources fall under the federal government in the capital Abuja, making it impossible for Nigeria's 36 states to rein in the miners.
"We are helpless. It is a shame that some of those who are stealing our resources through illegal mining and constituting a nuisance to the people are not even Nigerians. But we can hardly do anything because of the policy of government which places natural resources in the exclusive list of the federal government," complains one government official.
Section one and 221 of decree 34 of 1999 vested the ownership and control of all minerals, including the power to issue licenses, collect rents, fees, and royalties, in the federal government. This power is exercised through the Ministry of Solid Minerals Development, established to boost non-oil exports.
Since the creation of the ministry in 1995, officials say investors - both local and foreign - have shown interest in Nigeria's gold deposits found almost throughout the Western and North-western regions.
Two weeks ago, Kaduna State Governor, Ahmed Makarfi, while receiving the National Steel Raw Materials Exploration Agency officials, expressed concern over the activities of illegal miners in his state. He urged the agency to assist the government in checking the menace.
There have also been reports of physical attacks on persons who tried to obstruct the activities of illegal miners. About two years ago, a traditional ruler in Osun state was attacked in his palace by hoodlums for daring to obstruct their activities.
In the tantalite-rich Kogi state, central Nigeria, investors were driven out of some fields by illegal miners who felt threatened.
Similar incidents of harassments, or ejection of investors, have also been reported in the northern states of Plateau, Nasarawa and Jigawa. In 2001, the Mining Association of Nigeria, led by Dabo Zang, urged the Nigerian government to do something about the illegal miners.
While government is losing revenue, and environments are being polluted, the illegal miners are smiling all the way to the bank. Odion Ugbesia, Minister of Solid Minerals Development, said last week that exploitation of tantalite alone in a village in Kwara state, central Nigeria, was fetching the miners an average of six million Naira (about 60,000 dollars) a week.
Ugbesia announced that government plans to put in place programmes for accelerated and orderly exploration and exploitation of the vast solid minerals to curtail the activities of illegal miners. His permanent secretary, Aboki Zhawa, said last that informal mining activities would be formalised to make them economically viable and environmentally friendly.
"Although the informal miners provide massive self-employment especially in the rural areas, their activities constituted environmental degradation due to abandoned pits, polluted rivers, high exposure of radio-active and hazardous minerals. Informal mining is an impediment to the orderly development of solid minerals sector in the country," Zhawa said.
He said government would formalise mining by reviewing the current legislation with emphasis on consultation and interactive discussion with mining communities on mutual preservation of interests.
"Formalising the sector would yield revenue to government and provide sustainable self-employment for at least 500,000 people. Other benefits included minimising environmental degradation and social and health problems such as child labour," he said.
==================
Akrokeri-Ashanti: "...Public companies cannot make a buck with placer deposits. This was a joke for years in Ghana.", roan wrote.
Why is this the case? Is it because of the unpredictability of the ore extensions? (Books on "Sedimentology" make it look complicated.) Or the great quantities of mud? Or what?
I liked the fact that the placer gold recovered (by panning the dark sand coming out of Knelson concentrators) was raw metallic gold dust, requiring no evil chemical treatments (arsenic, cyanide, mercury).
"It must have a Ghanaian sub that would probably still be in existance in Ghana, what happened to the assets?"
That's what I'm wondering too (I have some shares still; I bought a little and held -- largely because I was charmed by the web-page, I suppose, and I gambled unsuccessfully that the creditors would not want to close down the company). It had several other Ghanaian subsidiaries besides Bonte. Some of the other license assets in Ghana were pledged to creditors as collateral for loans for the equipment at Bonte, I believe, and the Bonte Mine subsidiary (if not Akrokeri-Ashanti itself) left a clean-up mess that might have lingering liabilities beyond the reclamation bond. I imagine that the galimseys (local artisanal miners) will swarm over the Bonte Mine now looking and digging for goodies. But maybe not quite all the Akrokeri assets were reached or pledged. Also, unless there are serious liabilities, any Toronto company might have some residual value as a "shell company" or vehicle for a new company to get listed.
I think maybe the AKR.H shares on the NEX exchange are subject to the same halt or "no trade" order that was issued for the Toronto Venture Exchange for AKR.V As an experiment, I tried buying some AKR.H shares online on Friday but got no execution. I doubt that my offering price was too low...
FL
Akrokeri-Ashanti Gold (now AKR.H) Seems Rather Dead.
Akrokeri-Ashanti had the Bonte Mine west of Kumasi in Ghana. It is a placer gold mine, the largest in Ghana, with large new Knelson concentrators for the placer ore. (I visited the Bonte mine this March.) AKR also had various other licenses in Ghana, and for a while an interest in a placer deposit in Peru. After trouble with declining production at Bonte, AKR suspended payments, then some creditors lost their patience and the Bonte mine petitioned in Ghana for dissolution. I don't know what happened to AKR's other Ghanaian assets. The Bonte mine left an ecological mess (not atypically). First some, then all of the officers and directors of AKR resigned, it was announced. I don't know whether the company has any "personnel" left at all, in Ghana or in Canada.
The stock price had a mysterious late quadrupling rise (on the Toronto Venture Exchange) from Canadian 2.5 cents to 11 cents/share around the beginning of this year, then declined inexorably to 1 cent/share. Trading was halted and never resumed. AKR was then moved to the Canadian NEX Exchange for vestigial Toronto-traded companies (see http://www.tsx.com/en/nex/index.html ) where the symbol is AKR.H now. Trading volume there seems to be zero.
Akrokeri-Ashanti still lives in cyberspace since its web-page, full-featured, apparently hasn't been updated or abolished since announcing the dissolution of the Bonte mine. See the company's current web-page at http://www.aagm.com
I don't know what the legal existence of AKR is. Does it still exist? (in Canadian and Ghanaian law) Is it a shell company now? Do the shares have any value now? Is it governed by "statutory trustees" as in U.S. law? Anyone who knows the legal and financial status of such companies better than I do, or AKR itself, please comment.
FL
Francophonophilia; Semafo (SMF.TO) speaks French
"roan" (Consolidated?) wrote: "... Ashanti has a bad reputation among the Guineans as they make the Guineans speak English while working in Guinea at Siguiri. I know from certain Guineans that this is viewed very badly. ..."
The French are serious about their language, along with many of their former subjects (in various ex-colonies). If not Peulh, I guess the Siguirians would rather speak French.
Semafo's francophone management (and Managem) should have a distinct advantage operating in places like Mali, Guinea, Niger, and Burkina Faso.
FL
(P.S. It's unpleasant to recall, but some Europeans' Francophonophilia may have helped cause, or contributed to, the mass murder of thousands in Rwanda-Burundi. Some Tutsis had committed the sin of speaking English.)
Axmin (AXM.V)/Newmont(NEM)'s Kofi in Mali (31m@11.6g/t earlier)
AXMIN Inc.-Kofi Project Area, Mali: New Gold Zones Identified; Drill Program Planned
9/21/2004 10:01:16 AM
TORONTO, ONTARIO, Sep 21, 2004 (CCNMatthews via COMTEX) -- AXMIN Inc. (AXM-TSX Venture) is pleased to announce the results of the reconnaissance drill program and the schedule for the next phase of drilling at the Kofi Project Area in Mali, planned for late October and to be funded by a subsidiary of Newmont Mining Corporation (NEM-NYSE & ASX; NMC-TSX). The reconnaissance reverse circulation ("RC") drill program has identified six new mineralised zones, with results including 6.6 g/t Au over 8 metres, 9.0 g/t Au over 5 metres and 16.6 g/t Au over 2 metres. The objective of the next phase of drilling is to follow up on the gold discovery made earlier in the year at the Kofi SW Zone C prospect which included an intercept of 11.6 g/t Au over 31 metres.
In accordance with the terms of the joint venture agreement over the Kofi Project Area, Newmont has fulfilled its requirement to expend a minimum of US$1 million in the first year. Under the terms of that agreement Newmont has the right to earn an initial 40.625% interest in AXMIN's Kofi Project and an initial 47.22% interest in the Walia West permit by expenditure of US$5.5 million over a three year period. The Kofi Project Area permits are strategically located between and along the borders of the Loulo (Randgold Resources Limited) and Tabakoto (Nevsun Resources Ltd.) deposits where separate developments are currently underway.
The next exploration phase costing US$500,000 is scheduled for completion by early 2005. This will include about 2,500 metres of both core and RC drilling which will run in parallel with ground geophysics and detailed mapping with the objective to identify extensions to, and additional zones similar in character to Zone C.
Reconnaissance RC Drill Program
During the reconnaissance drill program seven prospects were tested by shallow (mainly 40 metres, with some holes between 80-110 metres) RC holes, each of which is defined by anomalous (greater than 50ppb Au) soil geochemistry with strike lengths in excess of 500 metres. Of these prospects, gold mineralised structures were identified within a 3 km radius at five separate locations within the Kofi SS area.
Drill fences were set, in the main, 400 metres apart reflecting the first pass, reconnaissance nature of the program. The mineralised zones will be evaluated for follow up at a later stage. To date a total of 12 gold bearing structures have been identified on the Kofi Project by drilling, with at least a further six prospects yet to be tested.
A summary of all the mineralised intersections from the reconnaissance drill program are shown in the table below.
Hole Total North East Azimuth Declin. From To Inter- Grade
No. Depth Co-ord Co-ord (deg) (deg) (m) (m) val (g/t
(m) (m) Au)
---------------------------------------------------------------------
KSSC 41 80.0 1445061 253837 90 -50 63 65 2 3.2
KSSC 56 90.0 1443041 252251 90 -50 16 21 5 1.0
50 55 5 1.7
KSSC 62 80.0 1442500 252200 90 -50 10 14 4 1.3
30 32 2 1.4
KSSC 74 80.0 1441785 253883 90 -50 3 11 8 6.6
KSSC 75 65.0 1441786 253935 90 -50 38 43 5 3.5
KSSC 103 80.0 1439582 252948 90 -50 38 45 7 1.8
KSSC 104 80.0 1439582 252999 90 -50 24 26 2 4.2
73 75 2 16.6
KSSC 105 80.0 1439582 253050 90 -50 2 7 5 9.0
KSSC 119 80.0 1438721 253346 90 -50 44 50 6 1.6
KSSC 76 110.0 1455106 251658 270 -50 36 39 3 4.9
Hole Total North East Azimuth Declin. From To Inter- Grade
No. Depth Co-ord Co-ord (deg) (deg) (m) (m) val (g/t
(m) (m) Au)
---------------------------------------------------------------------
KSSC 77 100.0 1455110 251589 270 -50 23 27 4 3.1
60 69 9 1.0
KSSC 78 100.0 1455110 251537 270 -50 47 49 2 5.5
61 63 2 5.5
KSSC 23 40.0 1457219 248610 115 -50 0 6 6 1.3
KSSC 32 40.0 1457020 248607 115 -50 9 13 4 1.6
KSSC 62 40.0 1456715 248757 115 -50 35 40 5 2.7
KSSC 63 40.0 1456712 248783 115 -50 18 22 4 1.1
KSSC 65 40.0 1456679 248826 115 -50 0 5 5 1.5
Only intercepts greater than 2 metres in length and greater than
1 g/t Au have been included in this table
Analytical work was carried out at the independent Abilab Laboratories Ltd. in Bamako, Mali. The samples are subject to a full sample preparation followed by a 50 gram fire assay with an AA finish. Blanks (5%) are being used to monitor laboratory performance during first pass analysis. This press release has been reviewed by an in-house qualified person, Dr. Jonathan Forster, Fellow of the Institute of Materials, Mining and Metallurgy ("IMMM").
AXMIN is a mineral exploration company with a strong focus on gold in highly prospective properties across central and west Africa.
For more information regarding AXMIN visit our website at www.axmininc.com.
AXMIN Inc.
Jon Forster
Chief Executive Officer
+44 (0)1233 665600 (UK)
+44 (0)1233 643728 (UK) (FAX)
or
AXMIN Inc.
Judith Webster
Manager - Investor Relations
(416) 368-0993 (Canada)
Email: ir@axmininc.com
St. Jude (SJD.V) to explore in Niger
Vancouver, September 17, 2004 - St. Jude Resources Ltd. (SJD-TSX.V) is pleased to announce that the company has successfully completed the application process for two prospecting permits located in Niger, West Africa. The Ministry of Mines of Niger has granted St. Jude 100% interest (subject to the standard Government 10%) in the Deba and Tialkam permits, which cover over 1800 square kilometers. These properties are located along the main gold mineralization corridor in Niger which hosts the Samira Hill Mine.
St. Jude’s exploration team is in the process of reviewing all available data from previous exploration carried out on these permits. Once a review of the data is complete, management will announce the first phase exploration program which is expected to commence this fall. The company is confident that these new projects in Niger will compliment and enhance our potential to develop additional gold resources in West Africa. Furthermore St. Jude will ensure that our activities in Niger will not impede the company’s forward progress on its advanced projects in Ghana and Burkina Faso, which are nearing pre-feasibility.
St. Jude provides the following summary of its recently released second quarter financial results. Complete details of the company’s July 31, 2004 quarterly financial statements, management discussion and analysis will be available on St. Jude’s website at www.stjudegold.com. At the end of the company’s second financial quarter, the company had no debt and working capital in excess of $12.5 million, which is sufficient to meet the company’s financial needs and planned exploration and development expenditures. Expenditures on the company’s resource properties for the quarter amounted to $2,457,092. Administrative expenses and overhead totalled $259,725 representing a moderate increase over last year.
St. Jude is a leading West African explorer focused on the discovery and development of gold deposits amenable to low cost mining techniques. The company’s West African projects now cover over 2,900 sq. km. (716,605 acres) of one of the richest and most productive gold bearing regions in the world. With a well stocked treasury, no debt, expanding gold resources, new discoveries and several advanced exploration targets, St. Jude is well positioned to continue its strong growth.
ST. JUDE RESOURCES LTD.
PER:
MICHAEL A. TERRELL,
President
Technically Adamus is on TSX but not effectively, since no trading volume in ADU.TO is reported on the TSX page. I checked this first before calling Adamus an ASX stock in my previous message, since I'd seen the announcement you posted here.
FL
Which are "Newmont in Ghana" plays?
Newmont Mining (NEM) inherited several good properties in Ghana when it acquired Normandy a few years ago. Newmont then "discovered" what a great place Ghana is for finding gold. Now Newmont likes Ghana, and has declared it to be Newmont's next big area of endeavor. First it's concentrating on it's Yamfo-Sefwi (Ahafo) properties, but I surmise that Newmont is probably also looking for big (1-million-plus ounce) gold acquisitions in Ghana, especially near its existing properties or processors.
Maybe Red Back (RBI.V), Adamus (ADU on the ASX) and St. Jude (SJD.V) will come to Newmont's attention. Does anybody have any other suggestions for possible Ghanaian Newmont-fodder?
FL
Birim's (BGI.TO) Bui in Ghana is my favorite for a possible surprise Bonanza/Golconda/El Dorado. The stock price is low; it has some decent discoveries already, and nice cash-flow from an earlier deal.
Semafo (SMF.TO) seems underrated; it has lots of good properties, including half of Niger's first commercial gold mine.
I don't understand why St. Jude's (SJD.V) rich Benso gold discoveries in southern Ghana are so underpriced now.
Orezone's (OZN) price is doing well, so that may appeal to those who "buy strength" rather than bottom-hunt. High River (HRG.TO) had a price breakout the other day. Generally it seems that Burkina Faso explorers have been favored lately, while Ghana explorers "corrected" rather severely. An exception to the latter is Glencar, an Irish explorer in Ghana, which quadrupled in price.
Etruscan (EET.V) has slid way down now, for reasons unknown. Nevsun (NSU.TO) suddenly fell in half due to a government mining halt in Eritrea. Sanu (SNU.V) had the same problem: East, not West, African properties.
There has been some unusual trading volume in several stocks in the past two weeks; most appear to be bottom-forming, with a few exceptions like Cassidy (CDY.V). Look at the charts, via the link in the header of the forum.
FL
Nevsun, Sanu (NSU.TO, SNU.V) crashed due to Eritrea, not West Africa. See Nevsun's news releases. Sunbridge was also affected.
The Eritrean government halted work at all three companies' projects in Eritrea.
There were no problems in their West Africa projects that I know of.
FL
Red Back (RBI.V) volume; 5 big trades. eom
Cassidy's (CDY.V) decline has been typical. Only Orezone (OZN), Glencar (GCM in London/Dublin), and Great Quest (GQ.V), and, arguably, recent flashes-in-the-pan like Robex (RBX.V), Jilbey (JLB.V) and Channel Resources (CHU.V), have managed to resist the downdraft in West African gold explorers' stock prices.
FL
(Note on the photograph of squirrels: three in a row preclude a main meaning of "screwed".)
Birim (BGI.TO) starts Phase-III on one Bui project
Birim Goldfields Inc.: Phase III Drilling on Tombe North
Gold Zone Commences-Phase II & Tombe-East Drilling
Programs Now Completed
MONTREAL, CANADA--(CCNMatthews - Aug. 12, 2004) - Birim
Goldfields Inc. (BGI: TSX) ("Birim" or "the Company") is pleased
to announce that based on significant in-depth analysis of drill
data from Phase I & II of the reverse circulation ("RC")
reconnaissance drilling programs at Tombe-Parabu, located on the
Company's Bui District in Ghana, Phase III RC drilling has been
approved and is scheduled to commence imminently. The planned
drilling will continue to focus on the Tombe North Gold Zone and
will extend the program to test the target at depth in key areas.
...
For the full announcement see:
http://web1.kitco.com/pr/1267/article_08132004110556.pdf
FL