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High River (HRG.TO) borrows for Burkina Faso project
HIGH RIVER ARRANGES US $36 MILLION DEBT FINANCING FOR TAPARKO
Toronto, Ontario, August 12, 2004 (TSX:HRG) - High River Gold Mines Ltd. (“High River”) is pleased to announce the signing of an indicative term sheet for a financing debt package totalling approximately US $36 million, representing 65% of the estimated capital requirements for the construction of the Taparko-Bouroum Gold Project in Burkina Faso, West Africa. The financing package is to be provided by Absa Bank Limited of South Africa, acting through its division Absa Corporate and Merchant Bank (“ACMB”), and is subject to the bank’s due diligence process and credit committee approval.
High River owns an 80% interest in the 1,204 square kilometre Taparko property, with the Government of Burkina Faso holding the remaining 20% interest (5% of which is participating), and recently High River purchased a 90% interest (Government 10%) in the nearby Bouroum property. There are a number of deposits on both properties of which six will be exploited, three located on each of Taparko and Bouroum.
The undertaking of the debt financing package:
* has been arranged without a requirement for hedging gold production from the project, thereby providing full participation for the shareholder from higher gold prices. Downside price protection will be satisfied through the purchase of a rolling “put options programme”; and
* will maximize the benefit of the project for High River shareholders by minimizing share dilution.
David Mosher, President and CEO commented, “The project financing is a strong testament to the quality of the Taparko and Bouroum deposits. We are very pleased with the support that we have received from the Government of Burkina Faso and look forward to working with ACMB and the Government in a joint effort to expedite the construction of Taparko. High River plans to use the mining operation at Taparko as a base for expansion in Burkina Faso and throughout the rest of West Africa".
High River recently announced the granting of the “exploitation permit” for the Taparko Project (PR – July 7, 2004) and released results of the bankable feasibility study for the combined Taparko-Bouroum gold project (PR – June 14, 2004). Capital expenditures for the project, including a contingency of 10%, are estimated to be US $51.9 million. Annual gold production is expected to average approximately 91,000 ounces over a seven year period but should exceed 100,000 ounces in each of the first three years. High River believes there is excellent potential to expand both the annual production rate and the mine life.
Highlights of the Financing
The financing provided by ACMB is a limited recourse facility to High River as project sponsor during the construction and commissioning stages. The debt facility becomes non-recourse project financing once technical and financial completion conditions are achieved. The loan facility is expected to be
supported by the Export Credit Insurance Corporation of South Africa Limited (“ECIC”). The loan principal and interest is payable in ten semi-annual amounts commencing after commercial production is achieved. Commercial production is anticipated to occur early in 2006.
Interest is chargeable on a fixed or floating basis as follows:
* at the ECIC floating rate of 6 months LIBOR plus a funding margin per annum; or
* at the ECIC fixed US dollar Commercial Interest Reference Rate (“CIRR”) for the term of the loan.
The loan facility is subject to a “put” purchase programme. The undertaking of a “put” purchase programme is intended to protect a minimum revenue stream to service the loan facility while leaving the upside potential in the price of gold available to the project.
About Absa Bank
The Absa Bank Group is one of South Africa’s largest financial services organizations. The Absa Group provides services to selected markets in the United Kingdom, Germany, the United States, China, Singapore, Hong Kong and throughout Africa. Project financing for Taparko is being provided by the Absa Corporate and Merchant Bank division of the Absa Bank Group.
Expansion Strategy for Taparko
High River has designed the Taparko facility with a longer term operation in mind with the belief there is excellent potential to define additional satellite deposits. High River controls, directly or indirectly through an agreement with Jilbey Gold Exploration Ltd., in excess of 4000 square kilometres of prospective property within trucking distance of the planned Taparko mill. The agreement with Jilbey provides High River with back-in and operatorship rights on discoveries within trucking distance of the mill and a right of first refusal on discoveries outside trucking distance.
A sensitivity study, using a gold price of US $400 per ounce, more than doubles the gold resource to 1.3 million ounces within the three Taparko pits. This significantly increased resource at US $400 gold demonstrates the potential for expanded production and/or an extended mine life at Taparko.
Forward-Looking Statements
This report contains forward-looking statements based on current expectations. These forward-looking statements entail carious risks and uncertainties that could cause actual results to differ materially from those reflected. Risk and uncertainties about the Company’s business are more fully discussed in the Management’s Discussion and Analysis published in the Company’s Annual Report and Annual Information Form.
For further information, please contact:
David Mosher, President and CEO or Don Whalen, Chairman
High River Gold Mines Ltd.
(416) 947-1440 or visit our website at www.hrg.ca
RANGY so low with 31% of GOLD?
Maybe this simple question is well understood by those whose follow South African markets, but not by me:
If Randgold Resources (GOLD), the West African miner and explorer, has a market capitalization of US$475.96 million, and if Randgold & Exploration (RANGY) owns 31% of it (assuming that it still does), then how can RANGY only be worth 78.06 million when 31% of 475.96 million is 147.54 million? (Yahoo market-cap figures.) This is is ignoring all of RANGY's OTHER (non-GOLD) assets like Afrikander Lease, DROOY or whatever it has.
Are Roger and Brett Kebble really THAT terrible?
FL
I find the WAGI web-page... a bit unreassuring
The West Africa Gold, Inc. (WAGI on OTCBB and Pinksheets) web-page is quite elaborate with snazzy features and links, but ...
About three billion shares out, ten billion authorized. Plethora of semi-relevant and irrelevant web links. Gushing praise for obscure properties (see the Arizona announcement). Cobbled from a shell and remnants. Attempts at hype. Different classes of shares, most "awarded" rather than directly bought for money.
Instead of a reverse 1 for 10 stock split, they should have done a reverse 1 for 10,000 split. Even after declining 90% from a tiny-volume high to a higher-volume US$0.06/share now, the implied market capitalization (of about US$180,000,000.00) seems preposterous to me, from a first glance at this company.
(I know no reason to question the properties themselves, nor the local expertise; the Tuareg Shield especially has possibilities. It's just the company.)
Of course I could be very wrong. Does anyone here have a correction, or a contrary opinion?
FL
Is Pacific Comox (PCM.V) still in West Africa?
Pacific Comox Resources, Ltd., an explorer in Sonora, Mexico, once also had a subsidiary African Star with gold property in Ghana (as I remember). Does it still? The company web-page http://www.pacificcomox.com/ has no mention of Africa that I can find, nor does a recent interim financial statement.
FL
NEW: Perseus Mining (to be on Sydney ASX)
Perseus Mining, Ltd. has been formed, run from Perth, Australia, with properties in Cote d'Ivoire and Ghana. The plan is for it to be traded using the symbol PRU (and/or PRUO?) on the Sydney ASX stock exchange. It's associated with the older African mining company Afminex (AFM on Sydney ASX).
The company web-page is http://www.perseusmining.com/ .
It's two Tengrela gold properties are in Cote d'Ivoire (Ivory Coast) at the border with Mali. It has a joint venture called Grumesa in the Ashanti gold belt area of Ghana, with giant miner AngloGold Ashanti (AU).
It also has an interest in Central Asia with prospecting licenses and a joint venture in Kyrgyzstan.
FL
NEW: West Africa Gold (WAGI on OTCBB, PinkSheets)
A new company has been added to the header, West Africa Gold, Inc., traded as WAGI on the OTCBB and the Pink Sheets (http://www.pinksheets.com ). The company web-page is at http://www.westafricagold.com .
It has gold properties in northern Mali, near Algeria, and apparently a copper-nickel project in southwestern Mali.
FL
More on proposed Iamgold -- Gold Fields deal
Gold Fields to take control of Canada's Iamgold
By Eric Onstad
JOHANNESBURG, Aug 11 (Reuters) - Gold Fields Ltd (GFIJ.J) unveiled plans on Wednesday to take control of Canada's Iamgold Corp (Toronto:IMG.TO - News) in a $2.1 billion deal to create the world's seventh-biggest gold miner, sending Iamgold's shares surging.
Gold Fields, the world's fourth-largest gold producer, would merge its international operations with Iamgold to create a new company to be named Gold Fields International.
South Africa's Gold Fields, which will receive 351.7 million Iamgold shares worth $2.1 billion in exchange for injecting its assets, would own 70 percent of the new firm.
Iamgold, subject of a bidding battle and being stalked by small U.S. gold producer Golden Star Resources Corp. (Toronto:GSC.TO - News), advised its shareholders to reject Golden Star's offer and approve the Gold Fields deal instead.
Iamgold shares, which have fallen 19 percent this year, jumped to a high of C$7.67, up 9.7 percent, and were trading up 6.6 percent at C$7.45 by 1505 GMT.
Gold Fields shares closed up 0.5 percent at 65.76 rand.
"(On the face of it), it looks to be a good deal," said Patrick Chidley, an analyst at Barnard Jacobs Mellett in New York, who said he was still looking at the valuation of Gold Fields International's assets.
HIGHER VALUATIONS
The new company will be listed in Canada and the United States, where gold companies have higher valuations than in South Africa.
"We see the opportunity for both companies to win in this transaction," Iamgold Chief Executive Joseph Conway said in a conference call.
"For Gold Fields they get an international multiple on their international operations and, for us, ours get an exposure to a much larger reserve base and production base."
But Hugo Nelson, fund manager at Coronation Fund Managers in Cape Town, was wary of any re-rating.
"It's not something I'm betting the farm on. I'm just not sure whether the Iamgold investor base is going to grant this entity those kind of ratings," he said.
Iamgold shareholders will own the remaining 30 percent of the new company and receive a special dividend of 50 Canadian cents.
The new firm will be the world's seventh-biggest gold producer, with production at six mines in Ghana, Mali and Australia of 2.0 million ounces in 2005.
Gold Fields already has a partnership with Iamgold in the Tarrkwa and Damang mines of Ghana.
Output is expected to rise to 3.5 million ounces by 2008, said Chris Thompson, chairman of Gold Fields and due to become president and chief executive of the new group.
The new company, to be headquartered in North America, probably in Denver, will be able to raise money at better rates and better compete for acquisitions, said Gold Fields Chief Executive Ian Cockerill.
"We will be able to access capital markets at a lower cost... We will be able to compete with the big juggernauts," he said on the conference call.
Iamgold had been the subject of a bidding battle after its plan to merge with Wheaton River Minerals Ltd. (Toronto:WRM.TO - News) failed last month.
Golden Star made a hostile offer in May worth $900 million at the time, but it slumped in value as share prices fell. (Additional reporting by Nicole Mordant in Vancouver and Marius Bosch in Johannesburg)
Two Randgolds (RANGY,GOLD) decouple on Ghana dining issue
'Randgold is Politically Neutral'
Business Day (Johannesburg)
August 11, 2004
Rob Rose , Chief Reporter
Johannesburg
LONDON-listed mining group Randgold Resources said yesterday it would remain "strictly politically neutral" and not try to curry political favour in any African countries in which it did business.
Although mining boss Brett Kebble dined with Ghanaian opposition presidential candidate John Evans Atta Mills last week, Randgold Resources CE Mark Bristow reiterated that Kebble was not linked to his company any longer.
Randgold Resources recently lost a bid for a lucrative Ghanaian gold mine to AngloGold Ashanti, but stressed yesterday it would not seek political favour to enhance its prospects in that country.
"Randgold Resources operates in a number of African countries, including Ghana, and our policy in all of these is one of strict political neutrality," said Bristow yesterday.
Bristow added that whatever dealings Kebble might have had with politicians in Ghana, they "are entirely his own business and nothing to do with us".
Kebble quit as a nonexecutive director in July 2003 , and Bristow said that since then, "he has had no direct involvement with this company".
However, Kebble remains CEO of Randgold & Exploration, the JSE Securities Exchange SA-listed company which holds 31% of Randgold Resources.
Details on Iamgold (IMG.TO,IAG)- Gold Fields (GFI) deal
http://micro.newswire.ca/release.cgi?rkey=1208110276&view=8551-0&Start=0
http://micro.newswire.ca/release.cgi?rkey=1208110281&view=8551-0&Start=0
The new company proposed here (Gold Fields International) would not be just a West African company, but would include properties in Finnland, Australia, etc.
The hostile takeover offer from Golden Star (GSS) for Iamgold is still open, however. If it succeeds (instead of the Gold Fields deal) then the resulting company will be more purely West African. This is summarized by Iamgold's surly board as "Geographic diversity = Nil."
FL
Iamgold (IMG.TO,IAG) would merge with Gold Fields(GFI) Spinoff
From CBS Marketwatch, by Myra P. Saefong, August 11, 2004:
...
Gold Fields, Iamgold to merge
In equities news, Gold Fields Ltd. (GFI: news, chart, profile) will combine its international assets with Iamgold Corp. (IAG: news, chart, profile) in a $2.1 billion deal, the companies said Wednesday.
Gold Fields will own about 70 percent of the equity of the new company, to be renamed Gold Fields International Limited, and current Iamgold shareholders will own the remaining 30 percent and receive a special cash dividend of 50 cents Canadian per share.
Iamgold will purchase the assets of Gold Fields located outside of the South African Development Community region by the issuing about 351.7 million ordinary shares.
Shares of Gold Fields were down 22 cents at $10.43, while shares of U.S.-listed shares of Iamgold traded at $5.56, up 25 cents, or 4.7 percent.
The merger agreement follows a failed transaction between Iamgold and Wheaton River Minerals (WHT: news, chart, profile). Iamgold and Wheaton announced plans to merge back in March, but in late May, Coeur d'Alene Mines (CDE: news, chart, profile) made an offer to buy Wheaton, and Golden Star Resources (GSS: news, chart, profile) made a bid for Iamgold. Golden Star's offer for Iamgold was set to expire on August 16. ...
The two Randgolds (RANGY & GOLD) getting decoupled
As Randgold and Exploration (RANGY) has decreased its ownership in Randgold Resources (GOLD), and focused more on the Afrikander Lease (AFK) and other interests of the Kebbles, the two stocks' prices move less and less in tandem. Today, for example, GOLD has been flat while RANGY has dropped about 10%. The ratio of the RANGY/GOLD prices hit a new low today, and a share of RANGY is worth less than a quarter of a share of GOLD (a year ago it was about 1 RANGY = 0.6 GOLD); see the ratio chart in the message to which this is a reply.
Now the bulk of RANGY's assets are not in West Africa but in South Africa -- unlike GOLD which is still a big West African miner/explorer.
FL
Searchgold (RSG.V) reports on diamond and gold properties
NEWS RELEASE TRANSMITTED BY CCNMatthews
FOR: SEARCHGOLD RESOURCES INC.
TSX VENTURE SYMBOL: RSG
AUGUST 4, 2004 - 09:00 ET
Update on SearchGold's Diamond and Gold Projects in
Africa
MONTREAL, QUEBEC--(CCNMatthews - Aug. 4, 2004) - SearchGold
Resources Inc. is pleased to inform its shareholders on the
progress of the African Mandala and Bakoudou projects.
The Mandala/Ouria Diamond Project in Guinea, West Africa is
pursuing its Bulk Sampling program on the Mandala III alluvial
deposits. The latest equipment shipped from Canada and Belgium
including the twin grease table Sorting Room are now on site and
in operation. The company is now in the process of reviewing the
compiled data from the bulk sampling program in progress and
together with the diamond valuations provided by Natural Diamond
Corporation of Antwerp, Belgium, and all data on operating cost,
will enable the company to produce a Preliminary Feasibility
Study Report in compliance with Policy N 43-101. Mr. Peter
Walker, a South African Geological Consultant with extensive
African experience in diamond exploration and mining will act as
Qualified Person. Mr. Walker just came back from a field trip in
Guinea on behalf of SearchGold, where he visited all the
principal points of interest of the adjacent Mandala/Ouria
Permits and reviewed all pertinent data with the company's local
geologist and project manager and administrators. Mr. Walker will
also issue some recommendations for the exploration and
development of the Ouria Permit which represent an excellent
diamond potential.
This important step was decided upon the results obtained and is
aligned with the company's strategy to develop the Mandala
Project into a profitable and sustainable Alluvial Diamond Mine
through its 95% owned Guinean Subsidiary, Ressources Mandala
Guinee S.A.R.L. The company is proud of its accomplishment on
this particular project and will keep on developing its expertise
on alluvial exploration, mining and processing of diamondiferous
gravels, which in this particular field, often constitutes the
key element to profitability.
At current gold prices, The Bakoudou Gold Project in Gabon
represents a prime asset in SearchGold's portfolio of advanced
projects. A Bankable Feasibility Study is in progress on the
Oxide portion of the Zone A of the Bakoudou Structure. An
extensive 82-hole Infill Diamond Drill program totalling more
then 5,000 meters of drilling is currently progressing and
results obtained to date are as expected and clearly outlines the
continuity of the 2 sub-parallel mineralized Quartz veins which
are intersected over true width of up to 14 meters and dipping at
200 . Mr. Pierre Allard of Met-Chem Canada Inc. is the Qualified
Geologist supervising the drilling program with a mandate to
produce an update Gold Reserve calculation in accordance to
Policy N 43-101.
To date, 34 holes were completed totalling over 2,000 meters, the
assay results are under compilation by Met-Chem and partial
results will be announced shortly.
Moreover, a soil geochemistry survey has been initiated over the
2 km long Northeastern extention of the Bakoudou mineralized
structure in order to provide accurate drilling targets to
increase the gold resources of this area.
About SearchGold Resources:
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. Discover more about SearchGold Resources by visiting
www.searchgold.ca
Shares issued: 50,079,814
-30-
FOR FURTHER INFORMATION PLEASE CONTACT:
SearchGold Resources Inc.
Maurice Giroux
President
(514) 866-4224
(514) 866-2626 (FAX)
info@searchgold.ca
http://www.searchgold.ca
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
Please repost "Mano Man". Only a 333x74 pixel fragment version appeared in my web-browser.
FL
Semafo(SMF.T)/Etruscan(EET.T) ratio turned up. Managem down.
The Semafo/Etruscan ratio that I follow turned up sharply again (see the message to which this is a reply, to view the chart). Semafo went up the same day Etruscan went way down. I figure that this ratio effectively cancels out those things (like their jointly-owned Samira Hill property in Niger, the gold price, and the trend of junior explorers) that the two companies have in common. However, the price of the Managem Group, the franco-moroccan mining group that owns a controlling interest in Semafo, continues to decline to new year's-lows on the Casablanca Stock Exchange (where it trades as MNG).
[ Disclosure: I just got some Semafo recently. ]
FL
Oops -- ppm, not grams/ton! Never mind. eom
Aren't double-digit grams/ton high-grade? Although Glencar had a nicer 12 meters of 12 g/t, Moydow had 2m of 18.25 g/t and another 2m of 12 g/t; also Moydow's 21m at 3.96 g/t, though maybe not "high grade," seems not bad. Generally the place is turning out to be "auriferous".
I've heard that "high-grade" could mean: anything worth digging an underground mine for (as opposed to Open Pit, which can make good money off of low-grade gold ore even below 1 gram/ton). But that would depend on the gold price and on overhead and processing costs.
FL
Interesting: Glencar, Moydow BOTH hit gold, mutual back-ins
So Glencar (GLC on London AIM and Dublin) and Moydow (MOY.TO), after they split their Kayankaw-Asheba property into two separate pieces with separate drilling operations, each retained back-in rights to the property of the other. Now they have both hit nice gold intersections on their respective pieces, on the same basic trend, in the last few weeks.
Will they now exercise their back-in rights on each other, now that high-grade gold has been found on both pieces of property? Or will they instead conserve their monies for their own respective (separately administered) drilling operations?
[ Note: I don't own any stock in either one. ] Glencar has arguably done the best of any West African gold explorer stock in the last year. Moydow, after its splendid sale of its main Ghana property to Newmont (NEM) and big capital payment to MOY shareholders, seemed to shift focus to Canada and the stock did not thrive. See the stock charts in the header.
If one were considering buying into Glencar or Moydow, based on the Ghana discoveries and mutual back-in rights, which is the better of the two at current stock prices?
FL
Off-topic: Example of a recent Ghana IPO: BOPP
Here's a report of a recent stock IPO in Ghana. It's Benso Oil Palm Plantation (trading as BOPP on the Ghana Stock Exchange). See:
http://www.databankgroup.com/Internet/research/stockRecomendation/BOPP%20JULY%2004.pdf
I thought it interesting to see how Ghana does these. I actually participated (or rather, my Accra broker put me into it sight-unseen!). It's off-topic here. With the (token) exception of AngloGold Ashanti, no West African gold miners or gold exploring companies trade on the Ghana Stock Exchange.
FL
Problem is the low integrity of Taser,Inc.(Smith)
The bad effect of today's CBS interview was that it showed the CEO Smith, and hence the Taser company, to be taking the "low road" and doing everything to bias and distort the scientific record. That's the problem: basic character, not specifics. When Smith said he excluded the negative Medical Examiner's report because he had found some "expert" who disagreed, it was clear that this guy will do anything self-serving. This company could have been forthright about risks and benefits and done OK, --- but it's obviously not such a principled operation.
Police departments have depended on the company's own "scientific" claims about tasers not killing people, trusting the company. In the future it looks as though they could be exposed to horrendous lawsuits if they rely just on Taser's slanted version. Imagine the wrongful death claims that are possible now. I think the "projected earnings" of this company assumed that the worldwide orders would still come in just as they did before these exposes of the company's duplicity. Now things may change and a realistic earnings projection might be vastly lower.
If you read Taser's defensive press releases carefully, they just dig themselves into a deeper hole. They haven't "strongly refuted" (to use their childish expression) the actual scientific points of the critics. The New York Times article noted the LACK of any controlled scientific studies. Taser Inc. on its web-page just gives its uniformly-biased wordy interpretation of each anecdotal case it chooses to discuss. Then in the next press release they majestically unveil the learned conclusion of ... Sheriff Carter. Some scientific body. (I'm afraid I thought of "Sargeant Carter" from Gomer Pyle USMC -- which is only half-unfair.) Now from the CBS interview it's clear that Taser selects and reveals only favorable reports. I don't know how many, if any, were paid for by Smith or his company.
Something people neglect is the use of tasers for torture, punishment and "incentivizing" prisoners rather than just controlling berserk attackers. They've been used in Guantanamo on Muslim "detainees" as a pure threat tool, as opposed to defense. I see on the web that in Colorado police tasered a 9-year old little girl who was already handcuffed and in the back of a police car, possibly just to shut her up. She was "agitated" they said.
The fact is that certain police officers, miltary interrogators and contractors look forward with enjoyment to using the taser. If not for sadism, just for the control feeling. (It's as about close as you can get now to the feeling of the Emperor Palpatine at the end of Return of the Jedi where he's zapping Luke Skywalker with lighting from his fingers.) Not every officer of course, but there is that element.
If law enforcement departments get worried about paying millions for death lawsuits, they might reduce their orders for tasers and issue them only very selectively to a few responsible officers in genuine special-need situations. This cuts the market to a tiny portion of what it would be if everyone were to be issued tasers routinely, the way they were planning.
Negative report on Akrokeri-Ashanti (AKR.V) Bonte Mine
Ghanaian Chronicle (Accra)
July 23, 2004
Posted to the web July 23, 2004
GHANA, ONCE called the Gold Coast because of her abundant reserves of that most precious of metals, has got very little to show for the many years during which mining companies have made millions of dollars exploiting her natural mineral resources.
After years of independence managing our own affairs, it is obvious that most mining communities have not really benefited from the exploitation of the resources God, in His widsom, placed under their land.
One may argue that for many years, as we suffered under the colonial yoke, there was little we could do to ameliorate the situation.
Carry the argument further and you would conclude that the very nature of colonialism forbade the colonial masters from doing anything meaningful for the native people who seemed only good for menial jobs and nothing much else.
However, those were during the days of colonialism and the unblinking exploitation of the natives for which the colonial masters had no one to apologise to.
With independence, however, one would have hoped that our politicians, chiefs and other opinion leaders would have come to the realization that enough was enough and that the mining companies would compensate for years of neglect by providing the localities with some basic infrastructure and incentives to help them develop.
Sadly, this has not been the case and up to now, these mining companies have not done much for the indigenes whose lands have given them so much.
The Chronicle is happy that some of our traditional leaders have come to realize the basic unfairness of this situation and are now agitating for a better package for the people. Specifically, we would like to acknowledge the Okyenhene, Osagyefo Amoatia Ofori Panin's persistent calls on mining companies to help to improve the living conditions of the communities in which they operate, as most appropriate.
The Okyenhene did not mince his words when he bluntly stated that mining companies had grossly neglected most of the communities in which they operate, leaving them in a state of poverty and deprivation. He asked these companies to change their attitude to environmental and social responsibilities so that the people could benefit from the natural resources with which they have been endowed by nature.
What is worse is that some of these communities lose lives and property through mining activities without any meaningful compensation. The Okyenhene cited diseases, pollution and land degradation as the outcome of such mining activities.
The Chronicle agrees with him on these matters because a visit to a place like Obuasi or Tarkwa will confirm all these gross deficiencies.
A classic case of neglect of mining communities by mining companies is the current development at the Bonte Gold Mines in the Ashanti Region which, according to media reports, has been liquidated without due processes.
The company is said to have left a debt of about $18 million owed state institutions and private companies. It also abandoned its 400 workers and farmers whose farms were affected by its operations without paying their entitlements.
But worst of all, the company closed down without reclaiming the land destroyed by its operations. While the workers, farmers and the community at large lament over their future livelihood, the management of the company have long left for Canada.
We hope, as the Okyenhene has insisted, the government would ensure that whoever would exploit the bauxite deposits in the Atiwa mountain ranges, would not leave the people of the area poorer than they found them.
Relevant Links
West Africa
Stock Markets
Economy, Business and Finance
Mining
Ghana
Happily, some of the mining companies have become aware of the roles they have to play in uplifting the communities within which they operate. Gold fields Ghana Limited for example, has already spent $4 million in infratructural work in the area of its operation since 1993.
The Chronicle believes such must be the relationship between the companies and their local communities so that a cordial and harmonious atmosphere could be engendered for the benefit of all parties. We acknowledge the help these foreign comapnies are bringing and only wish that they do more so that Ghana can develop and realise her dream to become a middle-income country, soon.
What happened to Cluff Gold?
Earlier announcements by Cluff Gold, the West African explorer of Algy Cluff, Ronald Winston et al., said it would be trading publicly on the London AIM exchange by "spring" or "June". I just looked at the London AIM; no sign of any "Cluff Gold" trading there.
This one is supposed to include the Baohumun gold property in Sierra Leone that was originally to have gone to Caldera Resources, but didn't.
FL
Glencar hits gold in southwestern Ghana
Glencar Mining of Ireland announced drilling intersections for the Asheba property in southwestern Ghana. At Atinasi North, "best mineralised intervals intersected including the following: 3 metres at 20.5g/t from 9-12m, ... 9 metres at 11.0g/t from 39- 48m, ... 12 metres at 12.1g/t from 42-54m."
See
http://www.uk-wire.com/cgi-bin/articles/200407261054392068B.html
FL
Channel Resources (CHU.V) breakout today, price/volume. eom
OK, you win; I just bid for Guinor(GNR.TO).
If sellers will now kindly knock the Guinor price down to my bid I'll appreciate the service. Volume has been negligible except for one big trade a while back, and the bid-ask spread is uncivilized. Thanks, jeepdriver, for the Guinor information.
Between Guinor and Cassidy, maybe an "investor-vacation" tour to visit Guinea would be nice. I've heard that the western Guinea highlands of Fouta Djallon (not where these mines are) are beautiful and great for tourists. But if Guinea has Osamites looking around for someone to kill, as most Muslim countries do now, maybe such a trip should be deferred until another day. That's nice thing about (Christian) Ghana -- everything in Ghana is safe and friendly (except in the far North of Ghana which is Muslim, having tribal murders and Osama fans, and should be avoided by English speaking-whites and all Americans.)
Now that I think of it, Red Back (RBI.V) has the phosphate concession in Guinea-Bissau so I could add that to the touring itinerary, except that I've heard that Guinea-Bissau (unlike big Guinea i.e. Guinea-Conakry) is definitely NOT worth visiting.
FL
Sanu (SNU.V) relatively high volume for weeks. eom
Some transaction! Did Metak owners' $5K become $666K?
Am I missing something? The unnamed "vendors" who sold Metak to Cambrian for 1,000,000 Cambrian shares on June 13, 2003 didn't yet have the 75% interest in the Subranum gold concession in Ghana. No, Metak got it 5 days later on June 18, 2003 for US$5,000 (paid to Samtua Mining Resources Ltd.) and various promises contingent on future development; those "vendors" had sold Metak to Cambrian Mining (CBM on London AIM) for those same promises plus the 1,000,000 Cambrian shares, then trading at about UK 40p/share, hence worth about US$666,000 at the time.
Look at the Cambrian Mining prospectus at:
http://www.cambrianmining.com/cam_publications/CambrianMiningPlc20030618.pdf
Compare "Gold Sector" on page 8, "Post Balance Sheet Events" on page 27, the Metak balance sheet on page 38, and Notes 14.14, 14.15 and 14.16 of the audited account on page 57.
Evidently Metak, a Jersey island legal entity with a share capitalization of $10,000, spent US$5,000 cash (paid to Samtua Mining Resources Ltd. for the Subranum rights); its prior owners got 1,000,000 shares of Cambrian when Metak was bought-out the same month (June 2003), passing the further contingent obligations from Metak's prior owners ("the vendors") to Cambrian.
Throughout the prospectus and in the audited financial statements (by CLB Corporate Finance LLP), the owners who sold Metak to Cambrian are concealed and referred to only obliquely. The Metak sale is NOT listed as a "related party transaction" in the lists on page 25 and page 35. (Nor is Samtua Mining Resources Ltd listed there either.)
Whover they are, it looks, from the prospectus, as though they turned 5 to 10 thousand in cash into Cambrian stock with a market value then of about $666,000 in 5 days. A remarkable accomplishment for unrelated parties.
FL
P.S. On p 39 is the odd statement: "Metak holds various interests in shares as nominee." Shares in what? Nominee for whom?
Pornographic Subranum Gold-Explorer? Adult Shop.com (ASC.ASX)?
My earlier message, to which this is a reply, said there was no simple way to buy into the Subranum gold prospecting concession in Ghana via gold stocks. I've noticed that 25% of the direct ownership is unaccounted-for. Cambrian Mining (CBM on London AIM) and Investika (IVK on Sydney ASX) own only 75% of the Subranum concession, as far as I can figure from web documents and Google.
Western Minerals of Australia was the gold explorer that evidently once had the Subranum concession that is now mostly owned by Cambrian and Investika. Unsuccessful, the Western Minerals company became effectively a shell that was converted from gold exploration to "adult products" and telephone sex, renamed as Adult Shop.com and is now traded as ASC on the ASX. (It was recently involved in insider-trading scandal and prosecutions http://www.ag.gov.au/www/justiceministerHome.nsf/Alldocs/RWP325993FF041061EDCA256ECC000EF655?OpenDoc... )
The 1999 Adult Shop.com annual report described the prior gold exploration that had been done (sort of half-heartedly, it seems) at Subranum; don't read this if you're easily offended by pictures of scantily clad, kinkily clad, or unclad women:
http://investoren.adultshop.de/PDF_files/AnnualReport_1999_%20pictures.PDF
The introduction said that they "left behind a company with limited potential for a significant gold discovery and a languishing share price ..." The report said that the property was written off as having no ascertainable value.
But, it also noted that they had found 16m (9-25) at 3.86 grams/ton, 7m (6-13) at 27 grams/ton and 3m (21-24) at 2.7 grams/ton of gold. "... the controls on the drilling were only approximate...."
Susmit Shah was listed on the boards of both Adult Shop.com and "Cambrian Resources NL"; also various people surnamed Shah were among the largest listed option holders of Adult Shop.com. The current German website at adultshop.de lists Shah as Company Secretary.
The 2000-01 and 2001-02 annual reports reported Adult Shop.com owning 100% of something called "West Min (Ghana) Ltd" -- marked "dormant".
Meanwhile, Cambrian Mining PLC bought all of "Metak Ltd." which apparently now has a 75% interest in Subranum. Cambrian then sold part of Metak to Investika.
According to a Cambrian offer for subscription (of stock) at
http://www.cambrianmining.com/cam_publications/CambrianMiningPlc20030618.pdf
"Limited" RC drilling had found 6m at 7.25 g/t, 4m at 47.08 g/t, and 7m at 1.67 g/t gold at Subranum.
The prospectus is coy about whom Metak (a Jersey entity) was bought from. The passive voice is used, or else "the owners of Metak" or just "the vendors" is used. Apparently, on 13 June 2002 Cambrian issued a million shares to "the vendors" for Metak, agreeing to pay US$100,000 at study-completion and US$1.5 million at start-of-mining. Metak did not then own any interest in Subranum at all, but soon had a "heads of terms" agreement with whoever then had Subranum, and was "in advanced discussions that may lead to it acquiring up to 90% of a gold prospecting concession known as the Subranum Concession." RSG Global was listed as the operator.
In Section 14.16 we see a "Samtua Mining Resources Ltd." as the entity from whom Metak got the 75% of Subranum rights 5 days later, for US$5,000, plus $100,000 at study-completion, and $1.5m at start-of-mining, plus a 7-year option to get an additional 15% from Samtua for $1.5m.
Possibly the remaining 25% of Subranum is the Ghana government's standard 10% and the 15% still in Samtua's possession. Dunno. If so, who, then, owns Samtua? Adult Shop.com via its "dormant" subsidiary West Min (Ghana) Ltd.? Or maybe Susmit Shah?
It' unclear how, or whether, the Subranum rights got from Adult Shop.com Ltd. to Samtua Mining Resources Ltd.
I just emailed Cambrian to ask who owns the rest of the Subranum concession.
The interest, for this board, might be in some way to buy into the Subranum concession without the irrelevant parts of Cambrian or Investika or the hyperdilution of the latter (billions and billions ...).
The gold intersections, if accurately reported, seem good. The property is in a nice location on the east (Bibiani) side of the Yamfo-Sewi gold belt adjoining Red Back's (RBI.V) property. See the latest drill results at:
http://www.cambrianmining.com/cam_announcements/040615_amend.htm
This is almost as nice as the earlier finds; surface trenching 1 meter at 110.44 g/t and another at 20.84 g/t gold is not bad either.
FL
First Quantum (FM.TO) now in Mauritania
From Mining Weekly 16 July:
http://www.miningweekly.co.za/min/news/today/?show=53689
[ Note: First Quantum is primarily a copper mining company operating in Zambia and Congo. It's not in the board header at this time. FL ]
Miner buys into Mauritania copper-gold prospect
--------------------------------------------------------------------------------
Toronto Stock Exchange-listed First Quantum Minerals reports that the government of Mauritania has signed an agreement approving its involvement in the development of the Guelb Moghrein copper-gold deposit located near Akjoujt in Mauritania.
The company says the agreement clears the way for a new company to be formed, which will be beneficially owned 80% by the Canadian group and 20% by Guelb Moghrein Mines d'Akjoujt.
First Quantum has undertaken to develop Guelb Moghrein with production expected by the fourth quarter of 2005.
Production will be initially targeted at approximately 30 000 tons of copper and 50 000 ounces of gold per year in the form of a copper-gold concentrate which will be trucked to the port of Nouakchott and exported to smelters in Europe and Asia. The trucking and ship loading will involve local companies using existing port facilities.
First Quantum Minerals has initiated metallurgical test work on ore samples to determine the optimum process for recovery of the copper and gold mineralisation.
MDM Processing, an Australian engineering company, has been contracted to oversee this metallurgical work and to complete the preliminary process design. Under the current timetable, the metallurgical test work and process design will be completed by the end of this year with contracts for the plant construction awarded early in 2005.
It is expected that up to 500 employees will be involved in the construction phase at Guelb Moghrein, with a large proportion of the work being carried out by Mauritainian contractors. Once in production, the mine is expected to employ approximately 200 Mauritanians. Apart from the opportunity for employment, the residents of Akjoujt are expected to benefit from the upgrading of both power and water supplies, and the general increase in commercial activity as a result of the mine development and operation. Considerable benefits are also expected to flow to Mauritanians in general, through royalties and taxes generated from the project.
"First Quantum sees this investment as a first step in a potentially larger involvement in Mauritania, particularly if exploration activity, for similar ore-bodies in the surrounding concession area, is successful,” said Philip Pascall, chairperson and CEO of First Quantam.
Robex (RBX.V) finds three gold areas in Mali
2004-07-08 09:47 ET - News Release
Mr. William Bird reports
ROBEX DEFINES 3 HIGH-PRIORITY MALI GOLD TARGETS
Robex Resources Inc.'s geological mapping and extensive pit and trench sampling, recently completed on its four new Mali gold properties, have defined three high-priority gold exploration target areas. These areas, the Bilali, MM-2 and MM-3, occur on the Kolomba concession, which was the focus of Robex's recent exploration campaign. The Bilali area contains a two-kilometre expanse of intense kaolinite-sericite alteration with anomalously gold-bearing quartz veins and stockworks. Local small-scale artisan mining activity is extensive. The MM-2 and MM-3 areas both contain large areas of anomalously gold-bearing disseminated and stockwork mineralization. MM-3 also has fault controlled, mineralized-matrix breccia. Reconnaissance exploration of the company's Dabiya West and Moussala concessions has located seven areas of anomalous gold; however, more work is necessary to understand their extent.
The monsoons have brought to a close the annual exploration season and Robex field teams have demobilized the camps at La Corne and Bilali. Over the next few weeks, the recently gathered data will be analyzed and plans constructed for a major fall drilling program, which will focus on the three new target areas and the Diangounte concession's La Corne gold project.
In other business, Robex announces that at its annual general meeting on June 23, 2004, all measures put forward by the company in its information circular were approved, including the approval by the independent shareholders of the material amendments to the company's stock option plan. These amendments updated the stock option plan pursuant to new TSX Venture Exchange policies and restated the plan to set at 7,725,000 the maximum number of common shares that may be issued under the stock option plan.
-----------------------------
NEW: White Knight Investments (WKI on London AIM)
White Knight Investments PLC (formerly called Viking Internet PLC) has some gold concessions east of the town of Wa in northern Ghana, on which the Norwegian miner Kenor -- now Guinor (GNR.TO) -- has prospected. This area is within the remote, ethnically troubled Muslim zone of Ghana. Some known British gold investors formed Mistral Resources with the Ghana licenses and then merged it into Whight Knight, up to then a shell company.
According to Minesite, "These men are putting their reputations behind White Knight which, following the reverse deal with Mistral, had two projects under option – the Wa project on the Birimian greenstone belt in the Upper West region of Ghana and the Manica project in Mozambique. The interim report indicates that a certain amount of exploration work has taken place at both during the early months of 2004. Both projects have significant delineated areas of mineralisation and several identified drill targets. Earlier this year the project data at the Wa project was reviewed and updated and the geological and regolith mapping was extended. A major drilling programme will be based on the results of this review and reinterpretation. The focus is likely to be on the highly prospective mineralised cross cutting structures identified on the Julie prospectand it will start towards the end of October when the rainy season should have ended and equipment can access the site."
See this week's:
http://www.minesite.com/archives/news_archive/2004/july-2004/whiteknight050704.htm
and earlier:
http://www.minesite.com/archives/features_archive/2003/Nov-2003/whiteknight061103.htm
The following announcement is the official source of information about the company:
http://moneyam.uk-wire.com/cgi-bin/articles/200406280700221867A.html
Here are relevant excerpts; no specific drill intersections are given for the Ghana properties (some are given for a Mozambique property).
===================
White Knight Investments PLC
28 June 2004
WHITE KNIGHT INVESTMENTS plc
Interim Statement and Operational Review
Highlights
* Appointment of Managing Director
* Proposed change of name of the company
* Highly prospective mineralised cross cutting structures identified on the
Julie Prospect, Wa Gold Project, Ghana
* Significant intersections of mineralisation identified to depths of 120
metres on the Andrada Zone, Manica Gold Project, Mozambique
* Interim Results
Introduction
...
During the period the company acquired 100% of Mistral Resource Development Corporation Limited 'Mistral'. Mistral is a significant African focused exploration and development company, which has acquired options over two significant properties located in Mozambique and Ghana.
...
Change of Company Name
The Board proposes to change the name of White Knight to Pan African Resources plc to reflect the group's expanded activities in the sector. A Resolution to this effect will be proposed at White Knight's next General Meeting.
[ This seems like an uninspired choice of name, especially since that's already the name of a former Canada-traded company and now a unit of Golden Star. Gents, be a little creative! FL ]
Exploration Activities Update
In late 2003, the White Knight acquired 100% of the share capital of Mistral Resource Development Corporation Limited 'Mistral'. Mistral is a significant African focused exploration and development company, which has acquired options over two significant properties:
* The Wa Gold Project, located in Ghana and
* The Manica Gold Project, located in Mozambique.
Both projects have significant delineated areas of mineralisation and several identified drill targets, with considerable upside potential. White Knight is encouraged in the assessment of the two gold projects by the results of its recent exploration activities.
Wa Gold Project
The Wa Project is located in the Upper West Region of Ghana, approximately 50km east of the regional capital Wa, and comprises three exploration licences, Julie, Collette and Josephine, totalling 304 square kilometres. Ghana is a major gold producing country.
The project situated in an area of Birimian greenstones and granites in an arcuate belt, which represents the junction between the north-south trending Lawra Belt and the northeast trending Bole-Navrongo Belt. The geological setting of the project and the range of mineralisation styles identified to date are comparable to major Birimian hosted gold deposits in the south of Ghana and elsewhere in West Africa.
Exploration activities on the Wa Gold Project continued with the commencement of a review and update of the project data, extension of the geological mapping and regolith mapping.
Mineralised north-south trending quartz veins have been identified cutting across the 3.5km drill tested section of the shear zone in granodiorite on the Julie Prospect, in which resource potential has been demonstrated previously. These intersections are considered to be highly prospective.
The shear zone has been traced over more than 6kms of strike length while the mineralisation identified to date is open at depth and along strike.
Initial regolith mapping at the Collette Prospect has enabled the commencement of an improved understanding of the geology of the area.
The review and reinterpretation of the remote sensing, geophysical,topographical and geochemical data, which have been collected over a period of 7 years, with the enhanced techniques now available, will continue through the impending rainy season.
A major drilling programme will be based on the results of the review and reinterpretation and is scheduled to be initiated at the end of the rainy season (estimated to be late October 2004), when drill equipment can access the site.
...
============================
"Lady Annie" and "Flying Pig" mines (not necessarily company names) near Mount Isa in Queensland, Australia.
FL
Great Quest: new exploration betw. Sadiola & Yatela
July 8, 2004
Great Quest Announces The Start Of Exploration On The Alamoutala Ouest Concession
VANCOUVER, BC -- Willis W. Osborne, President of Great Quest Metals Ltd. (the "Company") (TSX Venture Exchange: GQ), is pleased to announce the start of an exploration program on the 10 sq. km. Alamoutala Ouest concession in western Mali, West Africa. The concession is located between the Sadiola and Yatela gold mines and 10 to 9 km from each. The Alamoutala deposit of approximately 600,000 ounces of gold is within a kilometer.
The program is designed to consist mainly of geological mapping as well as soil sampling and should be completed in a couple of weeks.
On behalf of the Board of Directors,
GREAT QUEST METALS LTD.
"Signed"
Willis W. Osborne
President
Suite 515, 475 Howe Street, Vancouver,
British Columbia, Canada V6C 2B3
Tel: 604-689-2882 Fax: 604-684-5854
Favorable Minesite article on Great Quest (GQ.V)
Minesite had a story about Great Quest on June 30, 2004:
http://www.minesite.com/archives/news_archive/2004/june-2004/greatquest300604.htm
Great Quest is one of the few West African explorers that more or less held up in price against the sector decline in the last few months.
FL
Has Akrokeri-Ashanti Gold (AKR.V) become a shell?
Akrokeri-Ashanti Gold Mining (AKR.V) is a Canadian company on the Toronto Venture exchange that had a successful placer gold mine for many years near Kumasi, Ghana (the Bonte Gold Mine, a subsidiary) plus other placer gold properties in Ghana.
(West African Gold explorers and miners are covered in detail at InvestorsHub board:
http://www.investorshub.com/boards/board.asp?board_id=1588 .)
The Bonte Mine had creditor troubles and declining gold grades, and this spring AKR petitioned the Ghana government for dissolution of Bonte. As far as I can tell, some of the other AKR properties were pledged as security to the Bonte creditors; I don't know how many assets (or liabilities) remain in AKR. Today the company web-page (at http://www.aagm.com ) is out-of-date. After the CEO and some directors quit, two director-officers in Ghana stayed on to revive the company, but it was later announced that all officers and all members of the board had resigned. As far as I'm aware now, no dissolution or bankruptcy was filed for AKR.
Meanwhile, the stock price declined from C$0.12 to C$0.01; then trading was halted, but AKR was not delisted. It is still quoted at C$0.01/share. Acording to the TSX web page, there are 40,800,000 shares of AKR outstanding.
Is AKR a shell stock, given these facts? If not, how likely is it to become one?
FL
Subranum in Ghana looks pretty good, but there's no simple way to buy into it via a gold stock, that I can see. The two partners in the Subranum property, Cambrian (CBM on London AIM) and Investika (IVK on Sydney ASX) have too much other stuff. CBM has coal and power generation; IVK has "tech promotions" and non-gold mining. An all-Subranum gold company would be more to my taste (assuming that the reports are accurate).
FL
NEW: Cambrian Mining (CBM.London AIM) and Investika (IVK.Sydney ASX)
Because they share interests in the Subranum gold project in Ghana, Cambrian Mining PLC, traded on the London AIM exchange as CBM and its partner Investika Ltd. of Australia, traded on the Sydney ASX exchange as IVK, have been added to the header.
On 16 June 2004 it was announced they had encountered gold; among other intersections, 4 meters at 19.6 g/ton and 4 meters at 23.1 g/ton drilling at Atakurom on the Subranum Concession. See:
http://www.asx.com.au//asxpdf/20040616/pdf/3lw0pwbsjqf1j.pdf
Neither company is a pure gold play.
Last year, on 27 OCtober 2003, Minesite mentioned Cambrian's " ...drilling results, including an intersection of 13 metres grading 17.8 g/t, from its Subranum gold project in Ghana. In terms of investor perception though, Cambrian suffers from having positioned itself as a play on coal in Canada rather than gold in Ghana."
Investika Ltd. (formerly Kidz.net, formerly Walhalla.com, formerly Walhalla Mining) has been involved in numerous irrelevant investment promotions. Currently it also has at least one other mining interest, in a mine in Palawan, Philippines, with the venerable Atlas Consolidated Mining Co. Reputedly, Investika has something like billions of shares outstanding, I believe, and has traded between 1 cent and 2 cents Australian lately.
See:
http://bulletin.ninemsn.com.au/bulletin/EdDesk.nsf/0/AB83B0F363B01B56CA256DA500004B34?OpenDocument
Investika's web-page (see the header) is just a stub.
Last month, on 17 June 2004, Minesite reported:
"...Cambrian also owns the Subranum gold project in Ghana which covers 139 sq kms along the eastern region of the Sefwi-Bibiani belt. This belt hosts over 17 million ounces of gold resources including Newmont’s Yanfo gold project, Ashanti’s Bibiani gold mine and Redback Mining’s Chirano project. In 2002 and early 2003, anomalous gold mineralisation was outlined over a distance of 9.5 km, and was confirmed in detail over 6.5 km as two parallel anomalies. The eastern anomaly was trenched over 1.6 km exposing mineralised shear zones. The latest news is that high grade mineralisation has been intercepted in two drill sections spaced 40 metres apart and is open along strike down dip on the Atakuron prospect. Intercepts of 12 metres grading 8.56 g/t gold (including 19.6 g/t gold over 4 metres) have been obtained from 76 metres hole depth and 10.21 g/t of gold over 8 metres (including 23.1 g/t gold over 4 metres) from 84 metres hole depth, and the company thinks it could be onto something big.
The sad thing for Cambrian is that achievements such as this have virtually no impact on the share price. Its holding in Ivernia West with its Magellan lead project in Western Australia is also in there for nothing. ..."
--------------------
A long description of the Subranum project was issued in a press release 19 August 2003:
=====================================
19 August 2003
CAMBRIAN MINING PLC
CAMBRIAN MINING COMMISSIONS 230 HOLE DRILL PROGRAMME AT ITS SUBRANUM GOLD PROJECT IN GHANA
Cambrian Mining Plc (London AIM Market: CBM) ('Cambrian') is pleased to advise that due to the success of the current exploration programme at its Subranum property in Ghana, an 8,000m drilling programme has been commissioned to commence in two weeks. This drill programme, comprising over 230 holes, will be completed over the next three months.
The drilling programme has been designed to thoroughly test significant gold results from soil sampling, trenching and previous RC drilling in the oxide profile to depths of 25-30 metres over a strike length of some 6kms of the now identified 7km on the main anomaly and initial drilling on the newly discovered western anomaly.
THE SUBRANUM PROJECT
The Subranum Project is located along the eastern margin of the Sefwi-Bibiani Belt in the Ashanti region of southwest Ghana, West Africa. The Sefwi-Bibiani Belt hosts over 17 million ounces of gold resources including Newmont's Yanfo gold project, Ashanti's Bibiani Gold Mine and Redback Mining's Chirano Project.
Cambrian has a direct 37.5% interest in Subranum (increasing to 45%) and management of the Subranum Project. Cambrian's joint venture partner is Investika Ltd, an Australian listed public Company (ASX: IVK), which has committed to spending US$1m on exploration.
Exploration to date by way of geochemical soil sampling, trenching and drilling has identified a distinct 'Bibiani Shear Anomaly' totaling some 7km of potential mineralized strike extent of which portions have excellent potential for the discovery of high grade gold mineralisation. The potential for further mineralisation to the northeast is high.
Previous drilling on Subranum has already returned significant RC drilling results including:
• 6m @ 7.25g/t gold from 15m in SBRC002
• 4m @ 47.08g/t gold from 7m in SBRC004, including 1m at 180.50g/t gold
• 7m @ 1.67g/t gold from 48m in SBRC015
NEW DISCOVERY AT SUBRANUM
A recent infill soil geochemical programme carried out some 1.5km west of the main Bibiani Shear Anomaly has identified another anomaly, which coincides with the interpreted confluence of major structures and granite-Birimian lithological
contacts. Although not well defined, a 100ppb anomalous gold halo extends over 600m in strike and 300m in breadth, with peaks of 829ppb gold (0.829g/t gold) and 566ppb gold (0.566g/t gold). Sampling in this area is continuing to determine the full extent of the gold mineralisation in this area.
TRENCHING RESULTS
Trenching conducted during the past quarter with significant results including 1m at 110.44g/t Au and 1m at 20.84g/t Au from trench SBT45. These intercepts were associated with intensely sheared strong silica-sulphide alteration. To the south SBT041 returned positive results from a low tenor gold-in-soil anomaly with 4m grading 1.84g/t Au, 5m grading 3.28g/t Au including 1m at 12.70g/t Au and 2m at 1.81g/t Au. Significant results from SBT041 support the previously held view that gold mineralisation persisted beneath transported soil cover between the 3 main mineralised zones.
TABLE 1: Subranum Trench Results >0.05 g/t Au
Trench From (m) To (m) Interval (m) g/t Au
SBT041 39 43 4 1.84
SBT041 52 57 5 3.28
SBT041 53 54 1 12.7
SBT041 80 82 2 1.81
SBT045 105 107 2 55.48
SBT045 106 107 1 110.44
SBT045 123 125 2 12.28
SBT045 123 124 1 20.84
SBT047 50 53 3 1.05
SBT047 68 70 2 1.01
SBT047 86 89 3 0.77
Note: All results composite based on a 0.50g/t Au cut-off, over a minimum width of 2m, not including more than 2m of waste.
These trench results complement previous exploration along what is now a 5.2km mineralised strike with 30m of 1.96g/t Au in Trench TR18, 28m of 1.90g/t Au in Trench TR13, 30m of 1.02g/t Au in Trench TR23, 8m of 1.86g/t Au in Trench TR24, 8m of 1.34g/t Au in Trench TR25, 4m of 8.05g/t Au in Trench TR29, 6m of 2.98g/t Au in trench TR 35, 10m of 1.76g/t Au in Trench TR37 and 52m of 0.72g/t Au in Trench TR14.
ABOUT CAMBRIAN MINING
Cambrian Mining Plc is an AIM listed mining finance house with a diverse portfolio of coal, precious metal and base metal assets across The Americas, Australia, Africa and the Indian subcontinent.
For more information on the Subranum Gold Project or Cambrian Mining Plc please go the Company's web site on
http://www.cambrianmining.com
or contact:
David Lenigas, Cambrian Mining Plc; Tel: 020 7409 0890 or Simon Robinson/Ana Ribeiro, Parkgreen Communications Tel: -0207 287 5544
Note: Technical information contained in this News Release has been compiled by Mr David Lenigas, Cambrian Mining Plc's General Manager of Mining, who is a qualified Mining Engineer with more than 5 years reporting experience.
The directors of Cambrian accept responsibility for this statement.
======================================
Etruscan (EET.TO): GOLD TARGET CONFIRMED SOUTH OF SADIOLA
http://www.etruscan.com/lsiwebsite/news/HNR080704.htm
Windsor, Nova Scotia, July 7, 2004 -- Etruscan Resources Inc. (EET.TSX) announced today that a significant gold anomaly has been confirmed by an auger drilling program being carried out on the Djelimangara Permit in Mali, West Africa. The anomaly has been traced for 2,300 meters with values up to 11.6 grams per tonne gold.
The gold anomaly is located immediately south of IAMGOLD and Anglogold's Sadiola property boundary, within the Kofi Formation on the east side of the Mali West Shear Zone. The 10 million ounce Sadiola Gold Mine is situated 18 kilometers north of Djelimangara and is similarly situated within the Kofi Formation on the eastern side of the Mali West Shear Zone. Etruscan acquired the Djelimangara Permit in 2001 because of the strong similarities in the geologic setting and geochemical responses between Sadiola and Djelimangara.
The Djeimangara Permit was initially acquired by Barrick Gold following the discovery of the Sadiola Hill gold deposit. The structural setting of the property is dominated by the regional Mali West Shear Zone that crosses through the heart of the permit. Barrick conducted detailed soil geochemical surveys over Djelimangara that outlined a profusion of gold anomalies in a variety of geological environments. Over 900 soil samples carried in excess of 50 ppb gold and 65 sites exceeded 250 ppb. Barrick carried out limited drilling (3,000 meters in 23 holes) and tested only 9 of the anomalous zones with the best intercept reported at 3.7 meters averaging 13.44 grams per tonne gold. The distribution of gold anomalies on Djelimangara is very similar to the situation on the Sadiola property where at least 16 exploration targets have been identified outside of the main deposit at Sadiola Hill (see accompanying map).
Etruscan's current auger program has focused on selecting the most favorable areas for detailed follow-up. Detailed auger drilling on a 50 x 200 meter grid and closing to 50 x 100 meters has allowed better definition of the gold distribution in the underlying saprolite. The auger samples are also being tested for multi-element concentrations and the zone is clearly anomalous in typical pathfinder elements such as arsenic with values up to 1,000 ppm. It is anticipated that an additional 150 auger samples will be completed as part of the current program. These samples are expected to provide confirmation on the continuity and shape of the anomaly, and assist in planning for a reverse circulation (RC) drilling campaign in September 2004.
Don Burton, Chief Operating Officer for Etruscan stated:
"This is a very exciting development for Etruscan and confirms that our strategy of acquiring and exploring properties located in the prolific gold belts of Mali is working. Mali is ranked as the third largest gold producing country in Africa. Etruscan has already made a significant gold discovery in southern Mali this year at Finkolo, with an RC drill intercept of 38 meters of 6.4 gram per tonne gold, and this could well be the second. Etruscan is extremely keen to drill this target which has all the earmarks of a Sadiola-type setting.
Gold production is scheduled this fall from the Samira Hill Gold Mine in Niger to be followed by a production decision later this year for the Youga Gold Project in Burkina Faso. This imminent production coupled with a portfolio of high quality gold properties in West Africa, has Etruscan well-positioned to become a mid-tier gold producer within the next three years."
Auger drilling at Djelimangara penetrates the lateritic cover to obtain a single 1 meter sample of saprolitic material per drill hole for analysis. All sample preparations including low detection limit aqua regia gold analyses and multi-element ICP analyses were performed by Abilab of Bamako, Mali. Etruscan consistently employs a rigorous quality control and assurance program comprising regular insertion of certified reference standards, blanks and duplicates. The Djelimangara drilling and exploration program is being carried out under the supervision of David Duncan, P.Geo. and Qualified Person acting for Etruscan.
Etruscan Resources Inc. is a diversified Canadian junior mining company that is focused on the exploration and development of gold properties in West Africa and diamond properties in South Africa. The common shares of Etruscan are traded on The TSX 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 Tel: (902) 798-9701 / Fax: (902) 798-9702
Tony Hayes, Vice President Tel: (416) 368-0882 / Fax: (416) 367-3638
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"Simplistic Triage" of gold stocks. Updated.
Classify the stocks into DONE-WELL, DONE-POORLY, or DONE-OTHERWISE.
Here's an update of the "Simplistic Triage" classification of recent price performance, based only on the commonly-shown moving averages. (This message is a reply to my last message on the subject.)
Use only the ordering of PRESENT, 50-DAY, and 200-DAY averages. If the PRESENT price is above the 50-DAY average, which is in turn above the 200-DAY average, declare that the stock has "DONE-WELL." If the 200-DAY average is above the 50-DAY, which is in turn above the PRESENT price, say the stock has "DONE-POORLY." For any other ordering of these three, say the stock has "DONE-OTHERWISE".
Using this acme of sophistication, how would the West African gold stocks be classified now (July 7, 2004)? Thusly:
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DONE-WELL (4): African Metals (AFR.V), Glencar (Ireland), Great Quest (GQ.V), Jilbey (JLB.V).
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DONE-POORLY (17): Afcan (AFK.TO), Afminex (AFM.ASX), AfriOre (AFO.TO), Akrokeri-Ashanti (AKR.V), AMI Resources (AMU.V), Cassidy (CDY.V), Channel Res. (CHU.V), Delta (DEV.V), Gold Fields (GFI), Managem (MNG.Casablanca), North Atlantic (NAC.TO), Red Back (RBI.V), St. Jude (SJD.V), Sanu (SNU.V), Searchgold (RSG.V), Semafo (SMF.TO), Solomon (SRB.V).
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DONE-OTHERWISE (24): Adamus (ADU.ASX), African gold PLC (AFG.UK), Australian United (AUL.ASX), Axmin (AXM.V), Birim (BGI.TO), Columbia River (CRVV), Defiance (DM.TO), Equigold (EQI.ASX), Etruscan (EET.TO), Goldbelt (GLD.H), Golden Star (GSC.TO), GSS), High River (HRG.TO), Iamgold (IMG.TO, IAG), Mano River (MNO.V), Moydow (MOY.TO), Nevsun (NSU.TO), Orezone (OZN.TO, OZN), PMI Ventures (PMV.V), Randgold Resources (GOLD), Resolute (RSG.ASX), Riverstone (RVS.V), Robex (RBX.V), Takoradi (TKG.ASX).
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UNDEFINED (new 2): African Gold Group (AGG.V), Guinor (GNR.TO).
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Most of the "DONE-OTHERWISE" in fact did very poorly until they recently pulled up (or at least flattened) above their declining 50-day moving averages.
The clear successes are Glencar (steady quadrupling) and Jilbey (recent breakout), with Great Quest, African Metal (volatile!) and Orezone in "holding patterns". Robex did very well until late April, especially after its German stock exchange listing. (As for my beloved Birim, Cassidy and St. Jude, ... Ugh!)
Again, this triage takes no account of the AMOUNT of decline or rise. Some of the DONE-OTHERWISE's were much worse than some of the DONE-POORLY's, in percent declines.
FL
It's not just the money; I bought Iamgold to buy into West African gold mining and exploration -- not generic worldwide mining. Today I voted to accept Golden Star's current offer for Iamgold. An all-West-African Golden Star + Iamgold makes sense to me whereas Iamgold + Wheaton didn't.
(I also have some Wheaton (WHT), separately, but am not so keen on Coeur d'Alene's (CDE) current bid for Wheaton.)
FL
Good riddance: Iamgold rejected Wheaton; Golden Star pending
Iamgold rejects Wheaton merger deal
By Myra P. Saefong, CBS.MarketWatch.com
Last Update: 7:06 PM ET July 6, 2004
SAN FRANCISCO (CBS.MW) -- Iamgold shareholders rejected a $1.8 billion merger with Wheaton River Minerals late Tuesday, Wheaton said.
Wheaton River said in a statement that it has cancelled its own shareholder vote on the deal.
Calls to Iamgold and Wheaton weren't immediately returned.
The decision from Iamgold comes just a week after Idaho-based Coeur d'Alene Mines (CDE: news, chart, profile) increased the value of its offer for Canadian miner Wheaton River Minerals and Golden Star Resources' (GSS: news, chart, profile) raised its bid for Iamgold. See full story.
The Iamgold and Wheaton merger agreement had called for swapping each outstanding share of Wheaton River for 0.55 shares of Iamgold. Based on Tuesday's closing price for U.S.-traded shares of Iamgold of $5.70 and Wheaton's 568 million shares outstanding, the transaction was worth around $1.8 billion.
Tuesday's rejection apparently clears the way for Coeur d'Alene to pursue its bid for Wheaton, and Golden Star to pursue its bid for Iamgold. Coeur d'Alene will pay Golden Star $26 million if both bids go through.
Coeur's latest revised offer in late June for Wheaton (WHT: news, chart, profile) (CA:WRM: news, chart, profile) was valued at around $1.96 billion, and Golden Star's raised bid for Iamgold was valued at about $981.2 million.
Ahead of the news Tuesday, U.S. listed shares of Iamgold (IAG: news, chart, profile) (CA:IMG: news, chart, profile) gained 10 cents to end the session at $5.70, while Wheaton shares fell 6 cents to close at $2.82. Coeur d'Alene stock closed down 11 cents at $4.16 and Golden Star rose 8 cents to close at $4.90 on Wall Street.
Late Tuesday Coeur d'Alene reiterated its call for the Wheaton River board to enter merger talks with it. "We are pleased with today's outcome and we are encouraged by the strong support we continue to receive from Wheaton River shareholders for our offer," said Dennis E. Wheeler, CEO or Coeur d'Alene in a statement.
Coeur is preparing filings for U.S. and Canadian authorities necessary to take its tender offer directly to Wheaton River shareholders, the company said in its statement.
CIBC World Markets and JP Morgan are advising Coeur on the bid, the company said.
Myra P. Saefong is a reporter for CBS.MarketWatch.com in San Francisco.