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Why? I've seen large and small mining stocks languish in price while gold itself has tripled almost relentlessly. I once thought 650 Euros/troy ounce would be a "key price" to energize the mining stocks, but nothing happened. I think the ETFs like GLD took away a big incentive to own gold mining stocks. The gold mining stocks used to be the convenient way to buy gold without lugging it around and worrying about thieves (or contract expirations). Now, if you "like gold", you just buy an ETF.
Ghana: Newmont Wants Dead Royals Exhumed
Masahudu Ankiilu Kunateh
2 August 2011
Members of the Yayaso community in the Birim North District of the Eastern Region are up in arms against Newmont Ghana over the company's intention to exhume dead bodies from the royal mausoleum and 13 other sacred places to pave the way for the sites to be used as dumping grounds for waste material from mining.
In addition, the entire community has been ordered by the mining company to move to Adeesina, a town two miles away, but the town folks are voting with their feet. They have resolved to resist the attempt to defile the sacred grounds.
"We cannot abandon the fate of our ancestors to people whose only interest is in the money they are making from degrading our holy sites, Mr. John Appenteng, a resident of Yayaso told The Chronicle on phone.
According to the irate youth, the entire deal was conducted on the blind side of residents.
Mr. Appenteng told The Chronicle that Newmont Ghana planned to resettle them at Adeesina, two miles away without the consent of the affected people.
"We do not want to leave our dead bodies and other ancestral remains."
He added that the Chief of Adeesina, Nana Bediabakron, who is also an employee of Newmont, came to Yayaso with some armed policemen to force residents of the community to leave and resettle at Adeesina, which degenerated into squabbles.
"As I am speaking to you now, the route leading to the cemetery has been blocked. We are now living in fear," Mr. Appenteng stressed. "The youth are up in arms. We do not think anybody has a right to move us without proper compensation."
According to the youth of the Yayaso community, the management of Newmont (Akyem Project) failed to give recognition to the deep reverence Ghanaians have for their dead ancestors, and that was why they were asking the people to abandon their ancestral land.
"Reverence for the dead permeates all cultures, including western culture, and we cannot understand why Newmont wants to exhume the remains of our traditional rulers and ancestors and destroy our sacred sites in the course of making profits," one youth remarked.
Portions of Newmont Ghana's Draft Environmental Impact Statement (EIS), chanced upon by The Chronicle, states: "Approximately 396 million tonnes of waste rock and 116 million tonnes of ore would be removed from the mine pit associated with the Newmont Akyem Project over a 15-year mine life."
This means that the about 396 million tonnes of the waste rock will be dumped into the yet-to-be-exhumed burial ground.
The study area evaluated for heritage resources included approximately 190 square kilometers within a 5-kilometre radius of the mining area where direct or indirect effects on the local people could occur.
The areas evaluated include the communities of New Abirem, Afosu, Ntronang, Mamanso, Old Abirem, Aayaso, Adausena and Hweakwae and 26 hamlets.
When contacted, Ms. Adiki Ofeibea Ayitevie, External and Communications Director of Newmont, told this paper that Newmont was in discussions with chiefs and opinion leaders of the affected community to try and reach an amicable settlement.
"We recognise the sensitivity of the issue. We respect the culture of the people and their reverence for their ancestors.
We cannot move anybody until the matter has been resolved amicably," the External Affairs and Communication Director explained.
She said compensation package talks have been ongoing since 2009, and that they would not implement the evacuation of the people until everything had been agreed to. "We are designing model houses for the comfort of the people.
But we would not rush them until everything was settled to the satisfaction of the people and our company," Ms Ayitevie explained.
...hmmm..makes sense....
OUCH! AMI Resources down on volume. Down about 75% since February. And this with gold at all-time (nomimal) record high price.
Viking Ashanti (VKA in Sydney) first Ghana results
See
http://us-cdn.creamermedia.co.za/assets/articles/attachments/34059_release_-_multiple_gold_zones_for_perths_viking_ashanti_in_new_drilling_in_ghana_13_jul_2011.pdf
for full story and maps.
......................................
Viking Ashanti Limited
13 July 2011
ASX Release
Multiple gold zones in first drilling program southwest of Akoase East resource
Multiple zones of gold mineralization have been intersected by Perth-based Viking Ashanti Limited (ASX:VKA) from the first ten Reverse Circulation (RC) holes drilled on the southwest extension of its 500,000 ounce Akoase East gold project in Ghana, West Africa (Figure 1).
? Intersections include 5m @ 3.06 g/t Au, 6m @ 1.36 g/t Au, and 15m @ 1.51 g/t Au.
? Results confirm potential for extending existing resource along strike to the southwest.
Better intersections from this new drilling include 5m @ 3.06 g/t Au and 3m @ 1.21 g/t Au in hole AKRC112, 6m @ 1.36 g/t Au in hole AKRC113, and 15m @ 1.51 g/t Au and 1m @ 3.13 g/t Au in hole AKRC116 (Table 1, Figures 2 and 3).
These holes demonstrate that multiple zones of shallow mineralization continue for at least 400 metres southwest and immediately along strike of the current resource at Akoase East, and at grades and widths comparable to the existing Akoase East resource. The Company believes excellent potential exists for further extensions of the current resource in this area.
To date, 24 holes of a planned 48 RC hole program have been completed at 100m line spacing. The remaining holes will be drilled at 200m line spacing along strike to the southwest. A further 4 strike km of the main Akoase structural trend extending to the southern boundary of Viking Ashanti’s licence area remains to be drill tested following completion of this program.
Viking Ashanti’s primary objective since listing remains to increase the existing 500,000 JORC classified resource at Akoase East and with contributions from its other Ghanaian gold projects including West Star and Blue River, build a gold resource inventory of more than 1 million ounces by mid-2012.
---------
Viking Ashanti Limited
ACN 126 200 280
16 Ord Street, West Perth, WA 6005
T +61 8 9261 7300 F +61 8 9322 5892
W www.vikingashanti.com
Newmont (NEM) pays big money to Ghana
Newmont pays GH¢45million corporate tax
Saturday, 9 July 2011, 15:13 GMT
Newmont Ghana Gold Limited (NGGL) has paid its first corporate tax of GH¢45 million to the government.
A statement from the company said for the year-to-date ending 30th June, 2011, Newmont had paid GH¢88 million to the Government of Ghana in taxes including corporate income tax, payroll tax, withholding taxes, royalties and the National Fiscal Stabilization Levy.
It noted that in addition to direct financial benefits to the Government, Newmont also spent some $1.2 billion on salaries to almost 5,000 Ghanaian employees, direct contractors, procurement of goods and services in Ghana, and on community development programmes.
Director of Tax at Newmont Ghana, Mr. Edwin Allotey Acquaye, presented the cheque at a brief ceremony at the office of the Ghana Revenue Authority (GRA).
“The payments were made in accordance with Ghana’s tax laws and the provisions of NGGL’s Investment Agreement,” he said.
He said the company was proud of its excellent compliance record with the Ghana Tax authorities and will continue with the good working relationship with them.
Mr. Acquaye said Newmont Ghana will continue to act with honest and transparent communications as the value state by following all rules and regulations governing tax payment in the country.
Madam Comfort Boohene Osafa, Acting Commissioner, Domestic Tax Revenue Division of GRA who received the cheque said they are happy with the contributions from Newmont Ghana because it formed 12 % of their target for the quarter and had helped them achieve their target for the quarter (January – June 2011).
She also said “Newmont Ghana has made tremendous contributions to the government and I will encourage you to do more in the paying your corporate tax.
Newmont received the Gold Award (PAYE) in 2007 for its compliance and contribution to revenue mobilization.
Source: Adom News/Ghana
SEMAFO's Yaho Zone more than doubles strike length - consistent wide gold mineralizations
Montreal, Quebec, Wednesday , 29 Jun 2011
SEMAFO (TSX: SMF) announced today that follow-up drilling has more than doubled the strike length of the gold mineralization to more than 1.5 kilometers on its recently discovered Yaho Zone. Initial drilling (reference SEMAFO's press release dated March 3, 2011) identified a continuous strike length over 600 meters. Follow-up drilling has extended the gold zone to the south and to the north with a total current strike length of more than 1.5 kilometers. The Yaho Zone remains open on strike and at depth.
In addition, three core drill holes have been completed in order to characterize the geological environment of the mineralization and understand the structural controls. Assay results from the core holes remain pending.
For drill results tabulation click [here: LINK]
The second phase of RC and core drilling provides a better understanding of the area's host rock. The Yaho Zone is hosted by a clastic sedimentary unit which varies from a conglomerate to a quartz-rich sandstone (Figure 1). The conglomerate beds observed are polymictic with abundant quartz-rich clasts and occasional rounded clasts of volcanic origin. The clastic unit is bounded by basaltic flows to the west and a sequence of fine graphitic sediments and volcanoclastics to the east. Alteration is constrained to the clastic unit and consists of strong pervasive sericitization and silicification. Some quartz veining is also present, although not pervasive. Mineralization occurs as a series of stacked zones varying in widths of up to 19 meters on the three newly drilled sections. Mineralization includes disseminated pyrite and arsenopyrite in varying amounts, ranging up to 5 to 10 percent locally. As shown in Figure 2, anomalous gold grades are very common in the clastic unit with many higher-grade sections, which appear to continue at depth from hole to hole over wide intervals. Gold grades obtained across the mineralized zone show excellent consistency, which also suggests that a similar regular grade distribution probably occurs along strike.
Section 1,310,200N is virtually perpendicular to the zone and shows a moderate dip of both the host unit and the gold-bearing zones. The host unit trends generally north-south but is also folded along an east-west fold axis, representing a second phase of folding commonly seen across the entire property. The core of the zone seems to be located at the hinge of the latter folding, although the details of the geometry remain to be clearly established.
"The Yaho Zone represents a new style of mineralization, considerably different from Wona and Nyafé," states Michel Crevier, SEMAFO's Vice-President, Exploration and Mine Geology. "Recent work provides a much better understanding of the Yaho Zone, which will assist us in determining future work to ultimately increase resources. It also further accentuates Mana's exceptional potential as host to various styles of mineralization."
Additional drilling at Yaho will include delineation of the currently known 1.5- to 2-kilometer strike length, as well as further exploration of sections to the north and south to extend the strike potential.
We are experiencing significant delays in obtaining drill results due to substantial backlog at the independent assays laboratories in Ouagadougou. We therefore anticipate receipt of preliminary drilling results for the Massala and Saoura areas in July. Consequently, SEMAFO has decided to build an exploration laboratory to be located on the Mana property. This facility will significantly reduce the turnaround time for drilling assay results and accelerate the reporting process.
The exploration programs were designed and managed locally by Dofinta Bondé and David Legault, Mana Mineral's Exploration Chief Geologists, David Lalonde, Deputy Exploration Manager, and Richard Roy, P. Geo, Exploration Manager, and guided and supervised under the direction of Michel Crevier, P.Geo MScA, Vice-President, Exploration and Mine Geology and SEMAFO's Qualified Person who has reviewed this press release for accuracy and compliance with National Instrument 43-101.
For RC drilling, all individual samples represent approximately one-meter in length of rock chips homogenized and riffle-split to an approximately 2 kilogram subsample, which is sent for preparation and gold assaying at the ALS Chemex laboratories in Ouagadougou, Burkina Faso. Each sample is fire-assayed for gold content on a 50-gram sub-sample at the same ALS Chemex laboratories. In addition to ALS Chemex's own quality assurance/quality control ("QA/QC") program, an internal QA/QC program is in place throughout the sampling program, using blind duplicates, blanks and recognized industry standards.
======================================
NEW: Carbine Resources (CRB in Sydney) gold anomaly in Burkina Faso
[ADDED THIS COMPANY TO BOARD HEADER]
http://www.carbineresources.com.au/
Tuesday, May 24, 2011
Carbine Resources reveals large gold anomaly at Madougou in Burkina Faso
Carbine Resources (ASX: CRB, CRBO) has identified a geographically extensive gold geochemical anomaly from a survey on the Kandy Permit, at the Madougou Project in Burkina Faso, West Africa.
The initial results from a deep geochemistry survey over the permit indicate the presence of the large anomaly in the northeastern corner at the Foufaka prospect, highlighting the Kandy Permit's potential.
The company said anomalous values more than 25 parts per billion (ppb) gold cover an area of about 2.5 square kilometres, using a 90th percentile split of the data.
The company would be encouraged by the results as they are from the first set of samples taken. The gold anomaly is open to the south, southeast and southwest and the deep geochemistry survey is ongoing in order to ascertain its full extent.
Aoife McGrath, executive director exploration, said “we expect ongoing reconnaissance programs to outline its full extent within the next few weeks.
"Once all results have been received, infill programs will immediately be undertaken, particularly over the higher grade portions of the anomaly”.
The current reconnaissance grid spacing of 400m by 100m will be reduced during infill programs to define the higher gold tenor portions of the anomaly.
The Kandy Permit is the second of seven permits being explored by Carbine in this area with over 9.5kms of gold geochemical anomalies already defined on the Madougou Permit.
Today's results add to the ongoing exploaration success at the Madougou Project. On April 5 Carbine identified two new gold geochemical anomalies, totaling 1.2 kilometres combined strike length over the Wagande and Wagande South Prospects.
-------------------------------------------------
Carbine Resources
Carbine Resources is an Australian public company based in Perth, Western Australia. The strategic objective of the Company is the advancement of shareholder’s interests through exploration and evaluation of its current projects and acquisition of additional projects on favourable terms.
Initially, Carbine will focus on increasing its gold mineral resources in the Kalgoorlie region through exploration drilling. The Company also intends to seek out further acquisitions that have the potential to underpin its growth strategy.
+++++++++++++++++++++++++++++++++++++++++++++++++
Obscene Jeans! (OBJE)
OBJE on the over the counter market:
http://www.obscenejeans.com/investors.html
Kinross' big Tasiast gold mine in Mauritania back in production
After a stoppage of less than a day at its Tasiast Gold Mine in Mauritania, Kinross said all unionised workers are back to work.
May 20 (Reuters) - Canada's Kinross Gold said normal operations at the Tasiast gold mine in Mauritania have resumed following work stoppage for less than a day.
All unionized workers are back to work at the western African mine following the resolution of certain issues related to working conditions and pay, the gold miner said.
Output at Tasiast, which produced 51,321 gold equivalent ounces in the first quarter, was not affected by the work stoppage, Kinross said in a statement. The project is targeting an annual production of 1.5 million ounces.
Key to Kinross' growth is the development of the Tasiast project, which Kinross acquired through its purchase of Red Back Mining last year. [ID:nN04194058]
Earlier this month, Kinross had warned that the location of the project in Mauritania is a risk factor.
Talks are on with the union and the company is negotiating a collective agreement, it said.
Shares of Toronto-based Kinross, which also has projects in Brazil, Canada, Chile, Ecuador and the United States, were up 6 Canadian cents at C$14.47 on Friday morning on the Toronto Stock Exchange.
ACTION: Robex(RBX.V) up 20% today on volume.
Shucks, I don't have any.
REMOVED Oromin Blog URL from header
I removed Caliche's blog about Oromin from the Board header, since the link URL no longer worked.
(I have some Oromin.)
ADDED: 3 Australia-traded Ghana gold explorers/miners
I added the following three in the Australia section of the Board header:
Hodge Resources Ltd. (Sydney:HDG)
http://www.hodgesresources.com.au
======================================================
Noble Mineral Resources Ltd. (Sydney:NMG)
http://www.nobleminres.com.au/
======================================================
Viking Ashanti Ltd. (Sydney:VKA)
http://vikingashanti.com/
I can't get Hodge Resources Ltd. (Sydney:HDG) webpage to work:
http://www.hodgesresources.com.au
This Google-cached page works for me:
http://webcache.googleusercontent.com/search?q=cache:igY9dacI-UAJ:www.hodgesresources.com.au/+%22hodges+resources+ltd%22&cd=1&hl=en&ct=clnk&gl=us&client=firefox-a&source=www.google.com
It indicates gold property in coal in Botswana, and molybdenum and gold in Australia. The stock price has more than doubled since February, to AU$0.425/share.
======================================================
Adamus (ADU.V;Sydney:ADU) may buy out its hedge book
Adamus considering buying out its gold hedge book
The emerging Australian gold producer expects to begin producing gold in West Africa between April and June, which may lead it to buy out its hedge book, the CEO said.
Author: Sonali Paul (Reuters)
Posted: Monday , 21 Mar 2011
MELBOURNE (Reuters) -
Emerging Australian gold producer Adamus Resources (ADU.AX) expects to become the newest gold producer in West Africa Between April and June, which may lead the company to buy out its gold hedge book, its chief executive said on Monday.
"We will probably be (producing commercially) some time in the June quarter," Chief Executive Mark Connelly told the Reuters Global Mining and Steel Summit in an interview, adding the target is for early April.
Adamus poured the first gold at its Nzema project in the nation of Ghana in January and is in the process of ramping up output from its processing mill to full capacity.
The company has hedged 290,000 ounces of gold at $1,075 an ounce, which means it will partly miss out on a rally that took prices to a record high of $1,444.40 an ounce on March 7.
Connelly said Adamus would think about closing the hedge book only if investors show enough confidence in production rates and cash costs to push the share price near A$1, from around 71 Australian cents now, a jump of just above 40 percent.
"I'd like to think we can get our share price toward A$1 certainly in the next number of months as we, one, demonstrate we can run a continuous operation, and two, demonstrate that we can deliver on the cash costs that we think we can produce at. That's going to be somewhere between $500 and $550 an ounce."
He said the ramp up was going well, with the plant processing at an annual rate above 2 million tonnes.
"Based on the composition of the ore we have, we're actually running it at an annualized rate of about 2.4-2.5 million tonnes," he said.
HOT SPACE
Amid a frenzy of takeovers in the gold sector, companies with exploration permits in West Africa are hot targets as cash operating costs there are lower than in mining centers like Australia. Those developing projects are even more attractive.
Connelly was not shy in talking up the company's prospects as a takeover target.
"To be a prey, no question that there's many people looking over our shoulder."
"We've been approached over the last number of years. There's definitely an activity space that you want to be in --West Africa is a hot spot right now," Connelly said.
There are three majors in the Ashanti gold belt around Adamus: Newmont Mining (NEM.N), AngloGold Ashanti (ANGJ.J) and Kinross Gold (K.TO).
While Adamus may be stalked, it is in a strong position to bulk up its resources by taking over companies with neighboring holdings in Ghana and expand through drilling in its own permit areas.
"What we have in our favor is we have a built operating process plant. Anything that's downstream of us, the smaller explorers with potential resources close to our plant present opportunities," Connelly said.
He said junior miners with holdings close to Adamus had approached it to take them over but he had little interest in buying companies.
"Quite honestly, I'd rather take the resource rather than the company. I don't need another public company to deal with."
Companies in the area include Australian juniors Castle Minerals (CDT.AX), Noble Minerals (NMG.AX), Viking Ashanti (VKA.AX) and Hodges Mining (HDG.AX).
(Reporting by Sonali Paul; Editing by Ed Lane)
Adamus (ADU.V;Sydney:ADU) Ghana riots; compromise with locals
Compromise reached
Despite opposition, Adamus presses ahead with Ghana gold project
Despite being targeted by rioters opposed to its rumoured open pit mining project early this month, Adamus says it is pressing ahead with its Southern Ashanti Project in Ghana.
Author: Rodrick Mukumbira
Posted: Wednesday , 24 Oct 2007
WINDHOEK - Mineweb http://www.mineweb.com/mineweb/view/mineweb/en/page66?oid=38805&sn=Detail&pid=66
Adamus Resources Limited, which recently was a target of rioting opposing its alleged plans to develop an open pit gold mine at its 90%-owned property in Ghana, says it has reached a compromise with the 14 communities that would be affected by the Southern Ashanti Project.
Following rumours in late September that the ASX, TSX-V -quoted company (ticker ADU) would develop an open pit mine at its 90% owned Southern Ashanti Gold Project, residents of Teleku-Bokazo and Anwia in Ghana's western district of Nzema went on a rampage attacking the company's employees and vandalising its machinery saying the proposed mine would result in serious environmental degradation.
The protestors were also worried that they would be disinherited of their land and that the mining activities would results in pollution to their water sources.
The Southern Ashanti Gold Project is located in southern Ghana, West Africa, approximately 300 kilometres west of Ghana's capital city Accra. It is strategically situated on the southern extension of the Ashanti Gold Belt, which is believed to host over of 60 Moz of gold.
Adamus says its project area, which is 10% owned by the government, hosts both the Salman and Anwia Deposits, containing a combined resource base of 23Mt @ 2.1g/t for 1,600,000 oz gold
This week, however, Adamus' Managing Director, Mark Bojanjac, said the Perth-based company was "on track to realising the potential of the Southern Ashanti Project", where it has "identified a growing resource of 17 Mt @ 2.2g/t for 1,200,000 oz or gold (Measured and Indicated) and 6.3 Mt @ 1.9g/t for 390,000 oz of gold (Inferred)".
The company anticipates commencing constructing the project by year-end after lodging the feasibility and planning documents with Ghanaian authorities, which it said Wednesday were being reviewed.
Bojanjac said the company was making significant investments in the local infrastructure, the people and the communities surrounding its operation, as part of its long-term objectives within Ghana, including developing a compensation programme for the project areas.
"We have worked closely with our community stakeholders in Ghana and have finalised resettlement locations and crop compensation rates for villages directly within the project area," he said in a statement to the ASX Wednesday.
Bojanjac said the company has also invested heavily in other education projects, supporting schools through the provision in services and infrastructure, and will continue to support local education health and community projects that will assist their long-term sustainable development.
Adamus recently announced that it was setting aside US$100 to develop communities around its project.
======================================
Who's Your Daddy, Inc. changed its name to F.I.T.T. Highway Products, Inc., symbol FHWY on the OTC Bulletin Board. It reportedly makes, or will make, an "energy drink" containing some resveratrol.
Mad Catz Interactive Inc (MCZ)
Now, Cluff in Mali too
Cluff awarded exploration tenement in gold-rich Mali
Mining Weekly:
http://www.miningweekly.com/article/london-gold-miner-expands-african-footprint-with-new-exploration-licence-2011-04-22
By: Jonathan Faurie
22nd April 2011
London-listed gold miner Cluff Gold looks set to further expand its African footprint after being awarded an exploration licence for a tenement in gold-rich Mali.
The Mamoudouya exploration licence is located 300 km west of Mali’s capital, Bamako.
The 109 km2 area of the Birimian Kenieba inlier belt hosts several sizeable deposits, such as Randgold Resources’s Loulo mine and its Gounkoto property.
Trenching work was previously undertaken along the 3,6 km shear zone, which is the key focus of the project, and this has returned encouraging results.
The company plans to spend $1,5-million on the property in 2011, which will enable the group to undertake ground geophysics and additional trenching, with the aim of defining specific drill targets.
Cluff now plans to add value at this new Mali property during 2011, and continue with its near-mine exploration programme at Kalsaka, in Burkino Faso, with the aim of extending the life of that operation.
In addition, success in identifying gold along strike in the drill-ing campaign at the Baomahun project, in Sierra Leone, would be a game-changer with respect to the magnitude of that project.
Meanwhile, at a time when the gold price has been at, or near, its all-time highs, the ongoing political woes in Côte d’Ivoire have weighed heavily on Cluff’s share price.
Cluff Gold chairperson Algy Cluff reports that, after placing the Angovia mine on care and maintenance, in March, the company lowered its target price by 20p to 140p, on the assumption that the mine would close and never reopen, albeit with the resources retained within the group. Cluff adds that he considers this approach to be conservative.
Edited by: Martin Zhuwakinyu
Cluff's OK in Burkina Faso despite "troubles"; Baomahun in Sierra Leone Good
Cluff Gold confirms Kalsaka mine operating without interruption
(Toronto: CFG; London AIM: CLF)
Wednesday, April 20, 2011 by Giles Gwinnett
Cluff Gold (LON:CLF, TSE:CFG) confirmed today that its Kalsaka mine in Burkina Faso is operating without interruption, despite recent unrest in the country following a mutiny of the presidential guard – a situation which seems to be resolved now.
In an update, the West-Africa focused firm said that all of its staff were safe and that gold production and export had not been affected by the situation.
Cluff said it was continuing to monitor the situation and will update the market accordingly.CEO Peter Spivey said: "Although the situation in Burkina Faso is of concern, particularly for the people of the country, we are continuing to operate our mine.
"We hope that the current situation is resolved in the near term and we are doing all we can to ensure that our staff continue their work in complete safety. That is our current and top priority."
Trouble started in Burkina Faso last week when soldiers and members of the presidential guards in the capital Ouagadougou protested about unpaid housing allowances.
Hours before, tens of thousands of people had reportedly demonstrated against high food prices.
The country's leader Blaise Compaore last week dismissed the chiefs of staff of the army, air force and police and dissolved his government in the past week, and yestarday appointed a new prime minister - Luc Adolphe Tiao, who will replace Tertius Zongo.
Compaore, 60, has ruled the country since seizing power in a 1987 coup.
Spivey added: "We continue to focus on the significant potential at the company's flagship development project, Baomahun in Sierra Leone, with the fully funded feasibility study expected in Q3 2011 and initial results from the ongoing exploration drilling program expected in May 2011."
Cluff Gold is a developer-producer and it is focused on becoming a mid-tier producer through developing its wholly-owned Baomahun project in Sierra Leone.
This is expected to contribute an initial 157,000oz of gold per year, and has significant exploration potential along strike, said the company.
Iamgold (IAG) sells big mine shares in Ghana
http://www.miningreview.com/node/19347
IAMGOLD sells Tarkwa and Damang to Gold Fields
Tarkwa gold mine in Ghana ? sold off by IAMGOLD to Gold Fields
Toronto, Canada --- MININGREVIEW.COM --- 18 April 2011 - Toronto-listed IAMGOLD Corporation has reached an agreement to sell its 18.9% interest in the Tarkwa and Damang gold mines in Ghana to Gold Fields Limited ? the world’s fourth-largest gold producer ? for $US667 million. The transaction is expected to close no later than 31 July.
“This sale is the first of several strategic initiatives to create value for our shareholders,” said IAMGOLD president and CEO Steve Letwin. “We cannot fully leverage our skills and experience in developing and operating mines if we are not the operator and have a minority interest in the mine. Our strategy is to invest in mines that we own and operate, as they represent the best return on investment for our shareholders,” he added.
“Upon completion of this transaction, we will have more than one billion dollars in cash, cash equivalents and gold bullion (at market). In addition, we have a US$350 million undrawn credit facility. Our strong liquidity position gives us considerable financial flexibility to continue growing our business,” Letwin pointed out.
In 2010, gold production attributable to IAMGOLD from the Tarkwa mine was 139,000 ounces, and from the Damang mine 43,000 ounces.
As a result of the transaction, the company plans to announce an update of its guidance for production and cash costs in its first quarter news release.
If NAMES mean success, Haber's a cinch: "UPRIGHTNESS" goldfield, "GOODGROUND" and "ETERNITY". Auspicious, salubrious names like these are common in Ghana on things like busses, tro-tros, taxis, stores and even some wooden transport crates. Some people too.
Haber's (HABE) gold concessions in Ghana
See map: http://www.habercorp.com/assets/images/map_concess1.gif
near Bibiani.
Bibiani is a major gold area in Ghana.
IAMGOLD sells Ghana bits to Gold Fields
IAMGOLD sells minority stakes in Ghana mines to Gold Fields, faces uncertainty in Burkina Faso
http://www.mineweb.com/mineweb/view/mineweb/en/page34?oid=125186&sn=Detail&pid=102055
In growing its kitty of cash to $1 billion by selling Tarkwa and Damang, IAMGOLD says it wants to move on to mining projects it controls wholly.
Author: Kip Keen
Posted: Friday , 15 Apr 2011
Halifax, NS -
IAMGOLD (TSX: IMG) agreed to sell its 18.9-percent interests in two Ghanaian gold mines, Tarkwa and Damang, to Gold Fields (NYSE: GFI), the majority stakeholder, for $667 million.
IAMGOLD reasoned it hasn't been getting fair value by investors as minority players in mines in which Gold Fields owns the majority stakes. "Our strategy is to invest in mines that we own and operate, as they represent the best return on investment for our shareholders," Steve Letwin, IAMGOLD president and CEO said in a statement.
If divesting minority stakes was IAMGOLD's song, consolidation was part of Gold Fields'. "Through this transaction we will consolidate our ownership in two world-class mines in a stable and mining friendly jurisdiction where we have been operating successfully for almost two decades and have a strong brand," Nick Holland, CEO of Gold Fields, said in a statement.
Meanwhile, in a note to investors following the sale, Canaccord Genuity switched its outlook on IAMGOLD's share price. "We are lowering IAMGOLD's rating to hold from buy and (the) target price to $25.00 from $28.50 following the dilutive sale (@ spot and peak gold) of its 18.9 percent interest in the Damang and Tarkwa mines," Canaccord announced.
For IAMGOLD, according to Gold Fields estimates, the loss of Tarkwa and Damang, will translate into a decrease of 181,000 ounces of annual gold production, or close to a tenth of its overall gold production in 2010. Perhaps in part reacting to that impact on production IAMGOLD's shareprice had fallen about 6 percent to $20.66 at presstime.
Canaccord also warned unrest in Burkina Faso, where the BBC reports President Blaise Compaore is facing mutinous soldiers, could affect IAMGOLD.
"Military protests and civil unrest in Burkina Faso could have negative implications on IAMGOLD. The company‘s flagship asset, the Essakane Mine" - located in Burkina Faso - "is the second largest contributor to our valuation accounting for approximately $6.26/share (28%) of our 5%/peak NAVPS (net asset value per share) estimate and 36% (379,000 oz) of our 2011 production estimate."
Canaccord later added, "The actual impact on operations at Essakane remains uncertain at this stage. However, the possibility of a potential change in government and potentially unfavorable changes to the current fiscal regime and mine ownership rules could cause an overhang on the stock price in the near-medium term, until political stability is restored.
A call to IAMGOLD for comment on its Burkina Faso operations had not been returned as of presstime.
However, IAMGOLD argued the considerable upside of the sale was liquidity. If the transaction gets approval by Gold Field's shareholders - a vote is set for the end of July - IAMGOLD's coffers will grow to more than $1 billion on top of a $350 million undrawn credit facility. Presumably the plan is to sink some or all of that cash into another, as of yet unidentified project, which it can then take the lead on.
The markets were kinder to Gold Fields, which had dropped less than a percent to $17.85. For its part, Gold Fields argued the consolidation was part of its strategy to grow free cash flow and ounces produced per share. "This transaction meets those requirements," Holland said.
The price Gold Fields paid per ounce gold in the ground at Tarkwa and Damang was, according to its calculations, $300 for reserves, which stand at 2.14 million ounces gold, and $198 for resources, which weigh in at 3.27 million ounces gold, the balance being paid for the increased share of production, $20 million in working capital and also what is seen as the considerable upside potential in resource in particular at Damang. Assuming the transaction is completed, Gold Fields will own 90% of the two properties with the Ghanaian government holding the remaining 10%.
=========================================
Randgold (GOLD) still predicts 70% increase in gold output despite Cote d'Ivoire probs
Positive figures from Randgold Resources with major gold output increase projected as its West African operations continue to expand despite the unrest in Cote d'Ivoire.
See: http://www.mineweb.co.za/mineweb/view/mineweb/en/page34?oid=124135&sn=Detail&pid=102055
Author: Lawrence Williams
Posted: Thursday , 31 Mar 2011
LONDON -
Despite the ‘civil war' in Cote d'Ivoire, Randgold Resources is maintaining its gold production forecasts for the current year and is still operating at its new, and important, Tongon gold mine in the north of the country. In a meeting on the sidelines of the PDAC in Toronto at the beginning of the month, Randgold CEO, Mark Bristow, told Mineweb that operations at the mine has hardly been affected by the unrest in the country and supplies to the mine had faced little disruption as they could be brought in cross-border from Mali in the north, where it has its other major operating mines at the moment, even though the Abidjan route from the south would face much more difficulty. It seems little has changed in this respect.
Randgold's experience to date is contrary to that of Australia's Newcrest whose Bonikro gold mine in the central-southern part of the country, being nearer to the fighting, has been suspended as a precautionary measure, although Newcrest said in a statement today that its staff there had not been threatened..
Back to Randgold Resources. The company is going through a bit of a transition phase at the moment as operations are being wound down at its old flagship operation, Morila, in Mali, but these are being replaced by its Loulo area mines and new developments (also in Mali), of which Gounkoto is the most exciting. And then it is busy bringing into full production and developing major gold mines in the Cote d'Ivoire (Tongon) and in the Democratic Republic of Congo (Kibali - potentially its biggest mine of all and where developments are proceeding ahead of schedule.) It also has a significant exploration project on the go in Senegal (Massawa) as well as some exciting exploration targets in the region of its existing mines in Mali. Its exploration activities in Tanzania, at one time another target area for the company, have been put on the back burner in favour of what it sees as better prospects in West Africa, while its Kibali project in the DRC is thought to have the potential to become one of the world's great gold mines.
The broadening of the company's activities in West and Central Africa is, of course, not without its risks - and Kibali in particular, is viewed with a certain amount of apprehension by some analysts and investors - as is Tongon at the moment. However it should be noted that Randgold has had great success to date in negotiating the sometimes difficult path of dealing with African political factions - which is probably in part why AngloGold Ashanti has agreed to let Randgold have operating control of Kibali.
Overall, Randgold has thus just reported a 5% increase in its attributable mineral resources and reserves after mining depletion and adjustments based on ongoing exploration and evaluation programmes.
This has proved to be the eighth successive annual increase in the company's attributable resources and reserves and Bristow commented that this escalation had again underlined the effectiveness of the company's key strategy of achieving organic growth through exploration success and creating value through the development of profitable mining projects. He cited the recent discovery of Gounkoto and the continued expansion of mineral reserves at its Kibali joint venture project with AngloGold Ashanti as major contributors to the increased size and enhanced quality of the company's asset base.
Thus Randgold's annual mineral resource and reserve declaration, published as part of its 2010 annual report, shows that at the attributable level, measured and indicated mineral resources rose from 20.64 million ounces to 21.77 million ounces over the year, while inferred mineral resources increased from 6.69 to 7.00 million ounces. In the higher reserve category, attributable proven and probable reserves grew from 15.56 million ounces to 16.39 million ounces without reducing the overall mineral reserve grade year on year.
"Excluding Morila, which is now only processing stockpiles and Massawa which is still at feasibility study stage, the average grade of our reserves remained above 4g/t, with Loulo, Gounkoto and Kibali all comfortably above that mark. This means that we not only managed to increase the size of our reserve and resource base during a challenging phase in the company's development, but were able to maintain and enhance the quality of our mineral assets. This is real growth, framed within realistic parameters and based on viable business plans," said Bristow.
What this increase in resources and reserves does not show, however, is the massive potential for substantial further resource expansion in breadth and depth at and around existing operations - notably the Malian mines and Kibali in the DRC. Assuming Randgold can stay on the right side of the various African administrations in which its projects are located, then its future growth potential looks pretty assured bar domestic unrest in any of the countries in which it operates impacting directly on its operations.
FINANCIALS AND FORECASTS
2010 was not an easy year for Randgold. Despite an increase in headline profits of 43% the true figure was not quite as rosy as this might suggest with the increase achieved due to higher gold prices and despite a worrying rise in unit costs. Net cash also diminished, but the company is anticipating strong gold production growth in the current year.
The anticipated good production increases, and corresponding reductions in unit costs are due to come about through its expanding mining developments in Mali - and assuming Tongon in Cote d'Ivoire continues without serious interruption. Indeed Bristow reckons that group production for 2011 will increase by more than 70% over that of 2010 to between 750,000 and 790,000 ounces of gold, and management is targeting total cash costs, after royalties and taxes, of less than US$600/oz.
Tongon, in particular, is scheduled to produce 260,000 to 270,000 ounces against only around 28,000 in the 2010 start-up year while the Loulo complex's production is expected to be 420,000 to 440,000 ounces, of which some 120,000 ounces will be contributed by the new Gounkoto mine development in the latter half of the year. Last year Loulo production totalled some 316,500 ounces. The Morila joint venture, which is now only processing stockpile and dump material should produce 200,000 to 210,000 ounces down from 238,000 ounces in 2010.
Bristow cautioned, however, that this forecast was subject to exchange rates and input costs remaining at last year's levels, and to the political impasse in Côte d'Ivoire not impacting to a greater extent on the Tongon mine. He also said that the company's focus on efficiencies and costs would have to be even tighter than usual, particularly in the first half of the year.
==============================
FINALLY Avnel Gold (AVK.T) has half-decent trading volume
I liked little Avnel for a long time, but the trading volume was usually way too thin to be able to sell liquidly. Now it's picked up a bit. So I caved in and bought some at last, hoping to exploit the former Soviet investment in the boondocks. A fool and his money are soon parted ...
Randgold Resources (GOLD) weathering Côte d'Ivoire storm, producing to plan – CEO
By: Martin Creamer ----- 31st March 2011
JOHANNESBURG (miningweekly.com) – London-listed African gold miner Randgold Resources, which is weathering the Côte d'Ivoire storm well, remains on track to produce more than a quarter million gold ounces at its self-discovered Tongon mine in the north of the country, where hopes of a settlement are rising fast.
Randgold on Thursday also reported an overall 5% increase in its mineral resources and reserves, its eighth successive annual increase.
This coincided with reports out of Côte d'Ivoire that the country may be close to political resolution.
"We’ve been able to continue to produce to plan. We guided 260 000 oz to 270 000 oz and we believe that we’re within that guidance for the year.
"We’re on budget for the first quarter. It would be untrue to say that it is a perfectly normal situation, but we have free movement in the northern region and we’re continuing to explore.
"We’re not having to deal with a security challenge, but rather a logistical one," Randgold CEO Dr Mark Bristow tells Mining Weekly Online.
The real frustration for him is that the market has, for all intents and purposes, flatlined Tongon in its valuation of the company, despite it being within guidance.
The Randgold share price has reportedly dropped from £65 in October to £47.
Cote d'Ivoire was plunged into political crisis when forner President Laurant Gbagbo refused to step down after Alassane Ouattara was pronounced the winner of the country's November 2010 election.
“We’re a northern located operation. We haven’t had any regime change in the north at all. The developments of the last 24 hours certainly suggest that our strategy and our trust in a solution and continued cooperation with the authorities in the north has been the right way to go."
The UN Security Council on Thursday came out in unanimous support of Quattara and his legitimised Republic Forces are reportedly in control of three-quarters of the country.
The late afternoon vote came amid increasing violence and as supporters of Ouattara claimed control of the administrative capital of Yamassoukro, vowing to move on the commercial capital of Abidjan, 230 km to the south.
Bristow tells Mining Weekly Online that Randgold has experienced consistent legal and state engagement with authorities, who are mindful of its economic contribution to the region.
“We employ a lot of people, we’re paying their salaries on time, and we’re paying our service providers, and that keeps a very stable environment.
“We have invested a lot in our partnership strategy, on the premise that you can’t really do long-term business in emerging markets without ensuring that all stakeholders have tangible benefits.
“I look forward to being able to reinforce the correctness of our partnership strategy and to show that Africa is a place where risk can be managed and where value can be created, not only for shareholders, but also for the host countries," adds Bristow.
Randgold has again shown exemplary performance in being able to use an $800/oz long-term gold price as the basis for its latest resources and reserves statement, compared with the $1 000/oz, yardstick used by most of its gold peers.
“The big differentiator between us and the industry is that the industry has gone ex growth and is struggling with declining grades."
Randgold has guided that it will grow its production by more than 200% and that its the cost per ounce will decline, not through greater operational efficiency, but as a result of improving grades.
Its Loulo opeation in Mali is expected to finish the year at grades of more than 5g/t.
Gounkoto is has grades of more than 5 g/t, Yalea is on 5 g/t and Gara on 4,6 g/t.
The growth that the company is promising the market is driven 50% by better grades and 50% by new production from Tongon and Kibali in the Democratic Republic of Congo, where it has increased reserves by more than one million ounces.
Bristow is confident that the upward trend will continue "as we get our heads around Kibali’s absolutely world-class assets".
Randgold has achieved organic growth through discovery and value through development.
Randgold’s level, measured and indicated resources rose from 20,64-million ounces to 21,77-million ounces in 2010, and inferred resources grew from 6,69-million ounces to seven-million ounces.
Proven and probable reserves grew from 15,56-million ounces to 16,39-million ounces.
At Yalea, continued underground drilling above the high grade ‘purple patch’ has identified better than forecast grade, indicating the potential for an additional 200 000 oz at 8g/t.
“We haven’t been tempted to use the increased price of gold to boost our ounces. These have been calculated at a relatively conservative $800/oz gold price, while still taking cognisance of higher input costs,” Bristow points out.
Edited by: Creamer Media Reporter
====================================
Prospector sues Adamus over Ashanti
KATE EMERY, The West Australian March 29, 2011, 6:22 am
http://thewest.com.au
Perth prospector Robert Gardner has launched legal action against West African-focused gold miner Adamus Resources.
Adamus said yesterday it had been served with a writ filed by Mr Gardner's Hightime Investments Pty Ltd relating to its Southern Ashanti project in Ghana.
"The writ relates to an alleged arrangement entered into in April or May 2003 under which Hightime asserts that it allowed the company to apply for, and obtain, an exploration licence over ground near the Southern Ashanti geological belt in Ghana," Adamus chief executive Mark Connelly said in a statement.
"The company believes that Hightime's claim has no merit and it will be vigorously defended."
Mr Gardner has previously made headlines for his legal battle with entrepreneur Stuart Bromley over a Chinese business deal.
He is also a one-time business associate of former Adamus managing director Mark Bojanjac, who stepped down in September last year.
The move comes as Adamus prepares to host a delegation of Australia's parliamentary joint committee on foreign affairs, defence and trade next month.
Adamus shares last traded at 75¢, off 2¢ for the day.
Adamus (Sydney:ADU, ADU.V) to defend Hightime Investment’s claim
Mining Weekly http://www.miningweekly.com
By: Esmarie Swanepoel
29th March 2011
PERTH (miningweekly.com) - Gold-miner Adamus Resources said on Tuesday it would defend court action, after a shareholder filed a writ in the Supreme Court of Western Australia.
Hightime Investment, which is controlled by shareholder Robert Gardner, alleged it had entered into an agreement with Adamus in April or May of 2003, under which Hightime asserted that it allowed Adamus to apply for, and obtain an exploration licence over ground near the Southern Ashanti geological belt, in Ghana.
Adamus told the market on Tuesday that it believed that Hightime’s claim had no merit, adding that it would be “vigorously” defended.
Adamus has been involved in Ghana since 2002, and in 2003 took on the expansion of its project area. In September 2003, the miner executed agreements to acquire 90% of the Anwai deposit, and take a controlling interest tenure covering both the northern and southern strike extensions of the main Salman trend.
A few days later the gold miner applied for a further 241 km2 of ground, following the start of drilling at what was then known as the Southern Ashanti gold project.
Adamus recently became Ghana’s newest gold miner, with the first gold pour at the Nzema gold project.
The Nzema project currently hosts a resource estimate of 1,75-million tons, with the feasibility study into the project supporting a 100 000-oz/y operation, for a ten-year life-of-mine.
Edited by: Mariaan Webb
Mali slashes rosy gold output forecast
Tue Mar 29, 2011 2:25pm GMT
* 2011 forecast cut to 49.577 T from over 60 T
* Mining companies revise their projections lower
* Output still seen up on last year
BAMAKO, March 29 (Reuters) - Mali, Africa's third-largest
gold miner, cut its 2011 production forecast by more than 15
percent after mining companies revised their numbers lower, the
government said on Monday.
Output for the year will reach 49.577 tonnes instead of the
more than 60 tonnes announced by Mali President Amadou Toumani
Toure in a televised address in January, said Bafa Sangare, a
mines ministry official.
The forecast would still mark an increase over 2010
production of 46.033 tonnes.
"The projection of 60.5 tonnes was downgraded because of
revisions by the private companies, who are planning 45.577
tonnes in 2011, adding to artisanal output of 4 tonnes to total
49.577 tonnes of domestic production," he said.
The previous forecast had industrial production at 56.527
tonnes, with artisanal output at 4 tonnes. There was no clear
explanation for the downward revisions by companies.
Mali, a largely desert country, relies on gold for 70
percent of its exports and 15 percent of its gross domestic
product. Its gold output has been hit in recent years by
slowdowns at some of its biggest and oldest mines.
But new mines, including Randgold's (RRS.L: Quote) Gounkoto
discovery, will help boost output.
Below is a table showing gold production forecasts by mine,
as released by Mali's mines ministry:
Mines 2011 2010
Sadiola (Anglogold, Iamgold (IMG.TO: Quote), SFI) 9.622 10.381
Morila (Randgold, Anglogold) 6.523 8.954
Yatela (Anglogold ANGJ.J) 2.570 5.022
Loulo (Randgold <RRS.L) 11.062 11.046
Gounkoto(Randgold) 3.500 -------
Kalana (Avnel Gold (AVK.TO: Quote)) 0.185 0.491
Tabakoto/Segala (Avion Resources) 3.228 3.328
Kodieran(Wassoul'or) 4.208 -------
Syama (Resolute (RSG.AX: Quote)) 4.665 2.810
---------------------------------------------------------------
Total industrial 45.577 42.033
Artisanal production 4.000 4.000
---------------------------------------------------------------
Total industrial/artisanal 49.577 46.033
(Reporting by Tiemoko Diallo; editing by Richard Valdmanis and
Jane Baird)
Mali says gold adds $411 mln windfall to budget
Fri Mar 25, 2011 6:37pm IST
* Gold has overtaken cotton as main export earner
* 2011 gold revenues seen greater if prices hold
BAMAKO, March 25 (Reuters) - Soaring gold prices boosted revenues from mining to Mali's budget to a record 191 billion CFA Franc ($411.6 million) in 2010, compared with 130 billion in 2009, the government of the West African nation said on Friday.
Mali, the third largest gold producer in Africa behind South Africa and Ghana, with production varying between 50 and 60 tons a year, had originally targeted revenues from gold production to reach 150 billion CFA Francs in 2010.
Annual government income is estimated at some $1.5 billion.
"According to final figures, revenues from gold in the 2010 budget totalled 191 billion. The amount will be higher in 2011 if prices are maintained," said Lassana Guindo director of the country's mines and geology directorate.
Gold XAU= prices firmed a touch in Europe on Friday, trading at $1,447.40, as resurgent worries over euro zone sovereign debt levels and unrest in Middle East and N. Africa underpinned the metal's safe-haven appeal.
Mali is trying to develop its mining industry to take advantage of high metals prices on world markets and gold has overtaken cotton as the country's primary export earner.
Miners including South Africa's Gold Fields (GFIJ.J), Anglogold (ANGJ.J), Iamgold (IMG.TO) and Randgold (RRS.L), have operation in the country.
(Reporting by Tiemoko Diallo, Writing Bate Felix, Editing by Ron Askew)
Adamus (Sydney:ADU) hedge book closing? Takeover Target?
Adamus CEO may consider closing gold hedge if shares climb
By Sonali Paul
MELBOURNE (Reuters)-- Mon Mar 21, 2011 4:44am GMT
Emerging Australian gold producer Adamus Resources (ADU.AX) expects to become the newest gold producer in West Africa Between April and June, which may lead the company to buy out its gold hedge book, its chief executive said on Monday.
"We will probably be (producing commercially) some time in the June quarter," Chief Executive Mark Connelly told the Reuters Global Mining and Steel Summit in an interview, adding the target is for early April.
Adamus poured the first gold at its Nzema project in the nation of Ghana in January and is in the process of ramping up output from its processing mill to full capacity.
The company has hedged 290,000 ounces of gold at $1,075 an ounce, which means it will partly miss out on a rally that took prices to a record high of $1,444.40 an ounce on March 7.
Connelly said Adamus would think about closing the hedge book only if investors show enough confidence in production rates and cash costs to push the share price near A$1, from around 71 Australian cents now, a jump of just above 40 percent.
"I'd like to think we can get our share price toward A$1 certainly in the next number of months as we, one, demonstrate we can run a continuous operation, and two, demonstrate that we can deliver on the cash costs that we think we can produce at. That's going to be somewhere between $500 and $550 an ounce."
He said the ramp up was going well, with the plant processing at an annual rate above 2 million tonnes.
"Based on the composition of the ore we have, we're actually running it at an annualized rate of about 2.4-2.5 million tonnes," he said.
HOT SPACE
Amid a frenzy of takeovers in the gold sector, companies with exploration permits in West Africa are hot targets as cash operating costs there are lower than in mining centers like Australia. Those developing projects are even more attractive.
Connelly was not shy in talking up the company's prospects as a takeover target.
"To be a prey, no question that there's many people looking over our shoulder."
"We've been approached over the last number of years. There's definitely an activity space that you want to be in --West Africa is a hot spot right now," Connelly said.
There are three majors in the Ashanti gold belt around Adamus: Newmont Mining (NEM.N), AngloGold Ashanti (ANGJ.J) and Kinross Gold (K.TO).
While Adamus may be stalked, it is in a strong position to bulk up its resources by taking over companies with neighboring holdings in Ghana and expand through drilling in its own permit areas.
================================
WestAfrican Res.(Sydney:WAF) also hits big in Burkina Faso
from: http://www.mineweb.com/mineweb/view/mineweb/en/page674?oid=123273&sn=Detail&pid=674
West African Resources: New High-Grade Gold Discovery 28m at 9.22g/t Au in RAB drilling
Monday , 21 Mar 2011
HIGHLIGHTS:
* 1.6km long, high-grade oxide mineralised zone intercepted from surface in first pass RAB drilling at Moktedu Prospect
* Significant results include (* denotes ended in mineralisation):
RESULTS
MKRAB0178: 28m at 9.22 g/t Au from surface; including 8m at 31.67 g/t Au
MKRAB0069: 13m at 4.60 g/t Au from 20m*; including 5m at 11.66 g/t Au
MKRAB0217: 13m at 3.16 g/t Au from 4m*; including in 4m at 9.91 g/t Au
MKRAB0200: 16m at 2.02 g/t Au from 16m*
MKRAB0169: 23m at 0.99 g/t Au from Surface*
MKRAB0144: 4m at 2.63 g/t Au from 24m
MKRAB0030: 4m at 2.38 g/t Au from 20m
* Mineralisation open in all directions - along strike to the northeast, southwest and at depth
* Drilling from surface to an average vertical depth of only 30m with a number of holes ending in gold mineralisation
* Drilling on-going to the northeast, along strike following coincident auger and magnetic trend for a further 4km
* Two RC rigs commissioned and drill manager employed to manage the Company's drillingprograms and to advance Moktedu to resource status
* Continuous +100,000m Auger, RAB and RC drilling program on-going through to July 2011
West African Resources Limited (ASX: WAF) is pleased to report that first pass RAB drilling at its Moketdu Prospect has returned a high-grade gold discovery. West African Managing Director Richard Hyde said the results at Moktedu were massive for the Company."The results have the potential to lift us from a junior explorer to resource developer with further exploration success," Mr Hyde said.
Moketdu is located in the southwest corner of the Company's 100%-owned Boulsa Gold Project, only 4km northeast of Orezone Gold Corp's 3.5Moz Au Bombore deposit, in Burkina Faso, West Africa.
Significant mineralisation has been intercepted over a strike length of 1.6km at the time of this release. RAB drilling is continuing along the strike of the mineralised structure to the northeast, where some 4km of auger anomaly remains to be tested.
The Company's geologists note that there is a strong correlation between anomalous auger results and significant RAB drilling results. Currently, the Company has RAB drilled less than 30% of the strike at the Moktedu auger anomaly, to an average depth of only 30 vertical metres.
Mineralisation at Moktedu has been discovered by West African through first principles exploration methods combining mapping, geochemistry, geophysics and drilling as mineralisation does not outcrop. Further there is no active artisanal mining on the site therefore making this a trueexploration discovery from the application of modern exploration methods.
There is a high demand for RC drills in Burkina Faso, notwithstanding the Company is in discussions with RC drilling contractors to secure a contract to test mineralisation at depth (+100m vertical depth). West African has also commissioned two RC rigs which will have the capacity to drill to at least 80 vertical metres. West African will own and operate these rigs which will allow the Company to advance the Moktedu Prospect to resource status, while still negotiating with contractors for the deeper +100m drill requirements. The Company is aiming to have the new RC rigs in Burkina and drilling before the wet season (July - September 2011). Gold mineralisation at Moktedu is hosted by quartz veins and zones of shearing that appear to be coincident with the contacts between deformed mafic, felsic and volcanics and volcaniclastics. All mineralisation has been intercepted within highly weathered lithologies, and geology of the prospect will become clearer when we drill beyond the oxidised zone.
Background Information on the Boulsa Gold Project
The Boulsa Gold Project in Burkina Faso covers 5,345km2 and 170km of strike length of early Proterozoic Birimian greenstone belts which are highly prospective for gold mineralisation. Significant results have already been returned from the Project, which is located immediately along strike from the emergent 3.5Moz Au Bomboré Deposit.
Recent auger geochemical sampling also completed by West African Resources tested 25km of greenstone belt strike in the southwest portion of the project, representing less than 10% of the current project area. This work has delineated 25 robust targets, many coincident with artisanal mining activity at the Moktedu Trend and Meguet Trend target areas. These targets total 30km strike of anomalies and will be rapidly advanced in 2010 and 2011.
Competent Person's Statement
Information in this announcement that relates to exploration results or mineral resources is based on information compiled by Mr Richard Hyde, a Director, who is a Member of The Australian Institute of Mining and Metallurgy. Mr Hyde has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code). Mr Hyde consents to the inclusion in this announcement of the statements based on his information in the form and context in which they appear.
================================
Gryphon (Sydney: GRY) hits big in Burkina Faso
from: http://www.proactiveinvestors.com.au/companies/news/14877/gryphon-minerals-hits-more-high-grade-near-surface-gold-in-burkina-faso-14877.html
Gryphon Minerals hits more high grade near surface gold in Burkina Faso
Wednesday, March 23, 2011 by John Phillips
Gryphon continues to deliver bumper gold hits from the satellite Samavogo deposit in West Africa, including the latest 10m at 6.21g/t gold hit. The defining factor is the latest discoveries are outside the current 1.5 million gold resource at Banfora. Gryphon continues to deliver bumper gold hits from the satellite Samavogo deposit in West Africa, including the latest 10m at 6.21g/t gold hit. The defining factor is the latest discoveries are outside the current 1.5 million gold resource at Banfora.
Gryphon Minerals (ASX: GRY) reverse circulation and diamond drilling has delivered some top gold hits at the Samavogo satellite discovery, part of the Banfora Gold Project in Burkina Faso, located in the exploration red hot area of West Africa.
Highlights from the step out, infill and down dip drilling include:
- 10 metres at 6.21 grams per tonne (g/t) gold from 93 metres;
- 6 metres at 9.41g/t gold from 102 metres;
- 5 metres at 11.23g/t gold from 131 metres; and
- 7 metres at 4.92g/t gold from 131 metres.
Gryphon is now moving towards a maiden resource estimate for Samavogo, which most importantly remains open along strike and down dip.
What is so important about the Samavogo discovery is that its outside of the current known resources of; 21 million tonnes at 2.2g/t for 1.5 million gold ounces.
The company now believes that the drill results released to date confirm the potential for Banfora to host world class gold mineralisation similar to other major deposits in West Africa.
Currently exploration is targeting extensional zones along the margins of the intrusive in a similar geological setting to Randgold Resources (LON: RRS) 4.2 million gold ounce Tongon Gold Deposit, which is just 30 kilometres south.
Other nearby mines includes Syama with 5 million gold ounces mined and with 6.5 million gold ounces in resources, and Morila with 6.5 million ounces.
Adding to the prospectivity is that only the first 3 kilometres of a major 12 kilometre shear zone has been tested.
The total project area covers 1200 square kilometres.
In other Gryphon news, an exploration program has commenced at the company's Mauritania projects which include aeromagnetic surveying, soil geochemical sampling, geological mapping and diamond drilling.
[various disclaimers omitted]
Gryphon Minerals Full Gryphon Minerals profile here
Gryphon Minerals (ASX:GRY) is focussed on advancing the Banfora Gold Project in Burkina Faso, West Africa as well as its pipeline of new projects in Mauritania.
The Company recently announced a resource of 21Mt @ 2.2g/t for 1,500,000oz gold at its flagship Banfora Gold Project. The Banfora Project area covers 1,200km2 and mineralisation drilled so far is shallow with 80% less than 100 meters deep and with scope to extend this considerably deeper with further drilling.
The Company recently acquired fellow ASX company Shield Mining (ASX:SHX) which now gives Gryphon exposure to a number of highly prospective gold and copper projects including the Tijirit project adjacent to the world-class Tasiast Gold Mine.
Gryphon Minerals holds 10 million shares, approximately 15% of Renaissance Minerals Ltd (ASX:RNS), an Australian focussed gold explorer with over 3,000km2 of highly prospective and strategic landholdings in Western Australia and Alaska.
=================================================
SEMAFO (SMF.TO) profit almost triples
Semafo says Q4 profit more than doubles on higher gold production
Thursday , 17 Mar 2011
(Reuters) -
Gold miner Semafo Inc's fourth-quarter profit more than doubled, boosted by a six percent increase in production.
The gold miner said a 6% rise in production helped it produce profits of $27m, compared with $10.5m a year earlier.
For the fourth quarter, the Canadian company earned $27 million, or 9 cents a share, compared with $10.5 million, or 4 cents apiece, a year earlier.
Gold sales for the quarter rose 18 percent to $86.4 million.
Analysts, on average, were expecting the Montreal-based gold junior miner to earn 10 cents a share, on revenue of $86 million, according to Thomson Reuters.
The company produced 61,500 ounces of gold in the quarter, up 6 percent from a year ago.
For 2011, the company has earmarked $30 million in exploration expenses at the Mana mine in Burkina Faso, from which it estimates about 72 percent of total annual production.
Semafo's total proven and probable mineral reserves on Dec. 31, 2010 were 36.1 million tonnes at an average grade of 2.43 grams per ton (g/t) of gold, which is expected to yield 2.8 million ounces.
The company said these estimates do not include the new Yaho gold zone discovery at the Mana mine announced earlier this month.
Semafo, which began operations at Mana in 2008, produced 261,100 ounces of gold in 2010, with about 180,000 ounces coming in from the West African mine.
The company's board also adopted a shareholders rights plan and said it intends to seek shareholder approval for the plan at its annual meeting on May 10.
The rights plan, commonly known as a "poison pill," will be triggered if 20 percent of Semafo's shares are acquired by a single entity, or if there is a hostile take-over bid.
Spot gold prices are still hovering around $1,400 per ounce, after touching a record high of $1,434 an ounce in February this year.
Shares of Saint-Laurent, Quebec-based Semafo, which have lost nearly a fourth of their value this year, closed at C$8.52 on Wednesday on the Toronto Stock Exchange. (Reporting by Abhiram Nandakumar; Editing by Prem Udayabhanu)
© Thomson Reuters 2011 All rights reserved
Chinese Illegal Gold Mining in Ghana
FEATURE-Ghana's gold rush lures Chinese with illicit mines
Mon Mar 14, 2011 1:05pm GMT
* Record gold prices behind sector growth
* Foreigners in theory banned from small-scale mining
* China says sector must be handled by local laws
By Hereward Holland
DIKOTO, Ghana, March 14 (Reuters) - The groan of excavators, abandoned pits filled with stagnant brown water and the local chief's expensive off-road car hint at the mine tucked away in a bamboo forest in Dikoto, western Ghana.
Its gold rush started well before it was given borders and colonially branded the Gold Coast. But record world bullion prices are luring a fresh wave of fortune-seekers -- this time from China.
An increasing number of small mines are owned by Ghanaians on paper but controlled illegally by Chinese entrepreneurs, according to miners, concession-owners and security forces interviewed by Reuters during a trip to Ghana's mines belt.
Last year, Dikoto's village chief was brought before the Minerals Commission and warned about hosting illegal Chinese miners. In separate police moves, some 25 Chinese nationals have been arrested this year for illegal mining.
"Once the gold price starts growing, that's the motivation," said Daniel Owusu-Koranteng of WACAM, a local advocacy group for mining communities and the environment.
"People will do anything to extract the gold on the blind side of the law in very marginalised areas," he said.
Remote rural communities have yet to benefit from economic growth in Ghana which, thanks to oil finds, is seen hitting 13 percent in 2011.
Over 100,000 Ghanaians engage in small-scale extraction, known locally as "galamsey", short for "gather and sell," many without permits. Their work comprises almost 20 percent of gold output, making Ghana the second largest exporter in Africa.
Foreigners are forbidden from galamsey under the Mining Act which confines them to large-scale open pit mining and which initially meant Chinese outfits restricted themselves to providing ancillary services to the smaller mines.
CHINESE NETWORKS
The now-ubiquitous Chinese-made "Chang Fa" crushers and grinders started appearing three years ago, as did "Chinese blankets", mats which rely on an old technique known as "gravity concentration" to separate minerals and catch gold granules.
But industry experts say the Chinese have gradually pushed further into the industry, providing capital to cash-strapped miners and increasingly purchasing land to extract ore themselves.
Pinning down the exact role of Chinese in the sector is difficult given that some 30,000 nationals now live and work in Ghana, according to immigration data.
A recent WACAM study showed around 120 Chinese were living and working in Dikoto and three surrounding villages -- just one of many pockets of activity whose legality is hard to ascertain.
Reuters sought access to the Dikoto mine to verify reports that Chinese are still working there but were prevented from doing so by a representative of the local chief.
One concession-owner familiar with the area estimated that over half of all concessions are now controlled illegally by Chinese businessmen.
"Chinese people have built a network of local people, including leaders of small scale miners, local chiefs and sometimes even security agents to provide them with necessary cover," Owusu-Koranteng told Reuters.
A common arrangement, the concession-owner said, is for the Chinese operator to pay their local Ghanaian partner an upfront fee of $20,000. The on-paper concession owner then receives a 10 percent cut of output and the local chief getting a slice.
RESENTMENT BUILDS
Gold last week hit a record $1,444.40 per ounce on world markets as investors see it as a safe haven amid uncertainty for the global economy, making it a lucrative source of profits.
China, which last year overtook Europe as Africa's largest trading partner and sees the continent as a vital strategic partner in its quest for resources, insist the problem is one for local authorities to deal with.
"There are many Chinese living overseas so I don't think I will be capable to know what is happening to each and every Chinese in every corner of the world," Commerce Minister Chen Deming said during a trip to Ghana this year, arguing that any illegal mining be punished under Ghanaian laws.
Yet local resentment is building, both because of harsh working practices in some of the alleged Chinese-run mines, and because they are seen as less accountable than mining majors who can face penalties if they do not pass environmental tests.
While local galamsey miners also use cyanide and mercury to separate the gold from its ore, the health risk from such methods is seen greater from Chinese mines which tend to operate on a larger scale.
"What the Chinese are doing is destroying our land as well as the rivers," said local mine operator Kwamena Aikins.
"The disadvantage of the Chinese people engaging in this business outweighs the advantages."
© Thomson Reuters 2011 All rights reserved
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PMI (PMV.V) big dip at open, mostly recovered... Million+ shares
Oromin (OLE.V) Nice Results!
Oromin Explorations Ltd: Initial 2011 drilling results continue providing positive grade and thickness intervals at the O.J.V.G. Gold Project
Friday , 04 Mar 2011
HIGHLIGHTS
New Drill Results include:
• 15.66 g/t Gold over 7 metres at Masato
• 5.15 g/t Gold over 10 metres Masato
• 46.75 g/t Gold over 2 metres at Golouma West
• 9.25 g/t Gold over 4 metres at Golouma West
Oromin Explorations Ltd. ("Oromin"), on behalf of Oromin Joint Venture Group Limited ("OJVG"), is pleased to provide the initial results from its 2011 exploration drilling program at the OJVG Gold Project in eastern Senegal, West Africa. Current drilling commenced in mid-January 2011 and plans for 2011 include: broader-spaced lateral and depth extension drilling to the five primary gold deposits at Golouma West, Golouma South, Kerekounda, Kourouloulou and Masato; follow-up drilling at recent discoveries such as Kinemba and Koutouniokolla; and initial drilling evaluation at many of Oromin's new prospects including Saboraya, Kourouloulou South and Mankana.
Chet Idziszek, Oromin's President and CEO, stated, "we continue to expand the known limits of our deposits at an aggressive pace. Our increasing knowledge of the geology and the continuity of mineralization observed in our step out drilling to date is giving us even greater confidence to step out much more widely on a number of zones, particularly at depth, than we would for resource delineation. Our main focus for 2011 will be to demonstrate how deep and far out along strike these mineralized systems at the Golouma and Masato deposits extend beyond the limits of the current resource models. Also included in our plans for 2011 will be the evaluation of a number of new targets. We are eager to receive our first drill results from these areas and are very encouraged by what we are seeing from initial drilling at Saboraya, Kourouloulou South and the 950 zone at Golouma West."
At the Masato Deposit, new results from mineralized zones below the proposed open pit continue to confirm and extend the zones of higher grade gold mineralization potentially amenable to underground bulk mining. The Masato Deposit mineralization will be modelled as a combined Open Pit and Underground operation for the planned resource update scheduled in Q1 of 2011.
Doug Turnbull, P. Geo., is a qualified person for the purposes of National Instrument 43-101, and has verified the data disclosed in this news release. William Bond, P. Geo., is also a qualified person for the purposes of National Instrument 43-101, and has supervised geologic field procedures. TSL Laboratories in Saskatoon carried out all assaying under industry-standard QA/QC procedures. In addition, Oromin announces that it has granted stock options to employees, consultants, management, directors and officers entitling the purchase of up to 4,650,000 shares of Oromin under its Stock Option Plan. The options are exercisable at a price of $1.30 per share until March 3, 2016.
Resolute Mining (Sydney:RSG) looking for acquisitions
By: Liezel Hill
4th March 2011
TORONTO (miningweekly.com) – Resolute Mining, which has operations in Mali, Australia and Tanzania, will look at potential acquisitions, mainly in Africa, CEO Peter Sullivan said this week.
Resolute will produce 330 000 oz in the current financial year, and expects output of more than 400 000 oz in 2012.
The company's main assets are the Syama mine in Mali, which it bought in 2004 from Randgold Resources, and the Ravenswood mine in Australia.
A third operation, Golden Pride in Tanzania, will likely end production in a couple of years unless new resources are found.
This year is an important one for Resolute because it will have paid off all its debt by the end of 2011, leaving the company both debt- and hedge free after its hedgebook was eliminated in 2010, Sullivan said.
At the same time, high gold prices and increasing production mean that both revenue and cash flow will be on the rise.
“And we've got some organic growth that we will be able to fund from that cash flow, but the balance will be 'where is the new project'?” he said in an interview in Toronto.
“We've already started on that process, just sussing out the market and getting a good look at all the opportunities that are out there.”
Mines or projects that become available in Australia are often “mature” or tend draw heated competition from other firms in the region under pressure to grow, so the company is most likely to do a deal in Africa, he said.
“Africa is much more open, even though there is a bit more of a rush on now.”
But Sullivan added that high gold prices, and a focus on assets in West Africa in particular, mean that companies with operations in the region are generally highly priced.
“There's no bargains out there, so we may have to bide our time if we want to look at that.”
Resolute itself has drawn a lot of interest, especially as it is relatively cheap compared with some peers, Sullivan said.
“We do get lots of people knocking on the door wanting to have a look.”
Resolute is the number-two ASX-listed gold producer by volume, after Newcrest Mining.
INTERNAL GROWTH OPTIONS
Syama is still ramping out, but the company is targeting 250 000 oz/y once a steady state is achieved, and Sullivan said that plant issues experienced during the commissioning process have generally been resolved and the mechanical consistency is improving.
Beyond that, the firm said recently it is reworking the pit design at Syama to reflect a higher gold price assumption, and also plans to install a new oxide circuit at the operation to process ore from satellite resources the company has drilled up to the north and south of the main Syama pit.
The oxide circuit will add about 70 000 oz/y and cost around $38-million to complete, Sullivan said.
Feasibility studies on the pit expansion and oxide circuit are both expected this year, and the company is continuing drilling in the area to add to the existing resources.
The company will also need to revise plans for an underground operation at Syama, that it plans to develop after mining ends in the pit.
Cash costs at Syama are still pretty high – Resolute is forecasting $ 1045/oz for the first half of 2011, but will come down as the mine ramps up, Sullivan said.
The firm is also planning a project to connect the operation with new grid power being installed in the region, which promises to bring costs down further in a few years.
Resolute owns 80% of Syama and the government of Mali holds the balance.
In Australia, Resolute had been transitioning to underground mining only at the Ravenswood mine, after ending production at the Sarsfield openpit in 2009.
But after running the numbers at higher gold price assumptions, the company now plans to restart mining below the current pit, although it will need permission for a new tailings dam first.
Edited by: Liezel Hill
ACTION: Robex(RBX.V), PMI(PMX.V) shoot; Golden Star (GSS) plummets