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Axmin (AXM.TO) to spin out Sierra Leone properties
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Axmin to spin out Sierra Leone properties
By: Liezel Hill
1st March 2011
TORONTO (miningweekly.com) – TSX Venture Exchange-listed Axmin plans to spin out its assets in Sierra Leone into a separate company, in which Axmin will retain about 40%.
Axmin's main asset is the Passendro gold project, in Central African Republic.
The firm has signed a letter of intent with capital pool firm Fuller Capital Corp (FCC) to complete a qualifying transaction that will result in FCC owning the Sierra Leone assets, which include the Nimini Hills East and West exploration licences that contain the Komahun gold project, and the Matotoka exploration licence.
Axmin then plans to distribute a portion of FCC's shares to its own shareholders, the firm said.
“This spin-off will allow Axmin to take advantage of the current market conditions and further build on the Komahun gold project through a meaningful independently funded exploration programme,” Axmin CEO George Roach said.
“It will also afford us the opportunity to monetize the asset, if required, to support the development of the Passendro gold mine, and enable FCC to independently fund the exploration and drilling program necessary to prove the potential of the resource.”
Axmin received a 25-year mining licence for Passendro in August last year.
The company published an updated feasibility study on the mine on January 31, outlining an operation with average annual production of 163 000 oz/y over an 8,3-year mine life.
The initial capital cost, excluding contingency, was forecast at $246-million, while total cash costs are expected to be $484/oz, including royalties.
Axmin shares rose 3% on Tuesday, to C$0,16 apiece by 15:17 in Toronto.
Edited by: Liezel Hill
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Legend Mining (Sydney:LEG) Exploring Cameroon gold property
Legend Mining deals itself into "hot" gold sector in West Africa
Thursday, March 03, 2011 by Jeff Coote
Legend Mining (ASX: LEG) has acquired the Tapare Gold Project in Cameroon that includes a new 1000 square kilometre gold permit within the known goldfield.
Legend acquired the project from Cameroon General Mining SA (CGMSA) for US$20,000 plus scrip through its 90% subsidiary Camina SA, and the permit has been transferred to Camina.
The project will be the first gold asset in Legend’s Cameroon exploration portfolio and contains extensive artisanal workings.
Legend has until 1 July 2011 to carry out initial exploration programs with provision for a further extension of three months.
A further payment of US$130,000 and the issue of 5,000,000 Legend options exercisable at A$0.08 per option on or before 30 June 2013 will be made to CGMSA upon the completion of these programs.
Mark Wilson, Legend managing director, said “Legend is continually expanding its Cameroon database and in-country network. This gives us the ability to identify good prospects and secure them for future exploration opportunities."
Legend remains committed to its iron ore project at Ngovayang with its ongoing drill program and will be staffed and resourced by a new dedicated budget. The company's strategy is to develop a pipeline of targets and turn these into itabirite and DSO resources.
The Tapare Gold Project is located 300km east of the Cameroon capital Yaounde and lies north of the town of Batouri. No modern exploration for gold has been undertaken over the permit.
Legend plan to undertake systematic exploration over the Tapare Gold Project to evaluate the gold potential of the permit. The program has been designed to test for quartz-sulphide lode gold deposits (mainly beneath soil cover) and gold hosted within laterite.
Legend Mining last traded at $0.049 per share.
Legend Mining to commence much anticipated drilling program in Cameroon
With previous work by Legend and nine rock chip samples returning +65% Fe, indicating DSO potential, Legend's drilling program in Cameroon in January will prove very interesting.
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Legend Mining Full Legend Mining profile here
Legend Mining (ASX: LEG) is a cashed-up exploration company with projects in Cameroon and Western Australia. The company’s exploration focus is on the discovery of iron ore, base metal and precious metal deposits.
Legend is currently drilling iron ore targets at its Ngovoyang project in Cameroon. The project covers more than 2,000km2 and is well serviced by existing road, rail and port infrastructure. Legend believes that Ngovoyang’s size, prospectivity and infrastructure has the potential to be a “company maker”.
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28/01/11
Legend Mining targets iron ore in Cameroon post monsoon season
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21/12/10
Legend Mining increases Cameroon project area by 667km2 with new permit
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14/12/10
Legend Mining share spike prompts ASX price and volume query
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02/11/10
Legend Mining agrees to sell Woodley Project tenements to Nemex Resources
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30/09/10
Legend Mining halts drilling in Cameroon due to seasonal rain
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04/08/10
Legend Mining shares rise on start of drilling at Cameroon Iron Ore Project
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05/07/10
Legend Mining MD acquires 5 million shares
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05/02/10
Legend Mining exercises right to acquire 90% interest in Cameroon Project
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21/01/10
Legend Mining commences survey at Cameroon Project
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29/12/09
Legend Mining raises $3.42 million through Share Placement
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ACTION in PMI (PMV.V) today.
Volta Resources (VTR.TO) basically quintupled during the last year; I have a little, derived from old Birim Gold stock.
Merrex Gold (MEX.V), Iamgold (IAG) results in Mali
From MERREX GOLD INC., Jan 21, 2011 - 09:05
Merrex Gold-Siribaya Gold Project Drilling Update
HALIFAX (Marketwire) - Gregory Isenor, P.Geo., President and CEO of Merrex Gold Inc. ("Merrex") (TSX VENTURE:MXI) is pleased to provide the following update on the progress of its continuing exploration program on its Siribaya Gold Project, Mali.
Exploration Update to December 31, 2011
Drilling supervised by project operator IAMGOLD Corporation ("IAMGOLD") continued on Merrex's Siribaya Gold Project through to mid-December with one RC drill on the Siribaya mega-structure and a mechanized auger drill at Zone Bambadinka. Drilling adjourned for the Christmas break.
At Siribaya, gold mineralization was encountered in the north-eastern extension of the 1A substructure and mineralization is interpreted as extending to over three kilometres. Line 37+80N yielded an intersection of 6 metres grading 1.29 g/t Au and line 41+80N yielded 4 metres grading 0.54 g/t Au. Within the 1B substructure line 37+10N encountered mineralization re-confirming the interpreted three kilometre strike of the 1B substructure mineralization and yielded a one metre intersection grading 1.28 g/t Au. To view the Siribaya Project Map, please visit the following link: http://media3.marketwire.com/docs/SiribayaRCDrillResults.pdf. To calendar year end, 16,142 metres of RC drilling were completed from a budgeted 18,500 metres.
At Zone Bambadinka, located 2 kilometres west of the Siribaya mega-structure, 4,823 metres of mechanized auger drilling were completed of a budgeted 5,750 metres. Auger drilling has covered 4 kilometres of north-south strike length with significant mineralized intersections in the near- surface saprolite at various locations within the Bambadinka trend. The east-west lines are of variable length but generally approximately one kilometre long with 20 metre hole spacing. The northern fences in the area of the strongest geochemical response are spaced at 200 metre step-outs and the southern fences at 400 metre step-outs. Inclusive of Merrex historical RAB drilling, the Bambadinka trend has now been drill tested to approximately 8 kilometres and is considered a priority satellite target. In addition, 142 kilometres of gradient array IP have been completed from a total 185 kilometres planned.
About the Siribaya Gold Project, West Mali
The Siribaya Gold Project in West Mali is Merrex's flagship property. Beginning in 2005 when most gold explorers were focusing further north, Merrex assembled an 848 km(2) land package, the largest contiguous group of gold exploration permits in Mali. The Siribaya Gold Project is in the same gold-prolific sequence of Birimian-age greenstones shared by Randgold's Loulo mine, Anglogold Ashanti/IAMGOLD's Sadiola and Yatela mines and others in Western Mali.
Between 2006 and 2008, Merrex spent over C$8,000,000 in direct exploration and advanced the property from a grassroots exploration project to an initial NI 43-101 compliant Inferred resource estimate.
At the end of 2008, IAMGOLD joined forces with Merrex to explore the Siribaya by optioning a 50% interest in return for incurring C$10,500,000 of exploration expenditures over a four year period. Since joining forces with Merrex, IAMGOLD has spent approximately C$6,000,000 on direct exploration both within the Siribaya mega-structure and across major portions of the total land package including diamond and RC drilling, a high resolution airborne survey, soil and termite mound geochemical sampling and ground IP. The 2009 diamond drill program in the Zone 1B area concluded with an updated NI 43-101 compliant resource estimate prepared by ACA Howe International Limited (news release dated February 3, 2010) of 308,200 oz gold (4,015,000 tonnes grading 2.39 g/t) Indicated and 69,500 oz gold (946,000 tonnes grading 2.29 g/t) Inferred, including a small contribution to the total resource from Zone 1A. Mineralization at Zones 1B and 1A remained open to the north, south and at depth, and except for the small contribution to the resource from Zone 1A, the February 2010 resource estimate covered only a small fraction of the 1B substructure, just one of two major substructures within the 10.5 km long NE-SW strike length of the Siribaya mega-structure.
The February 2010 NI 43-101 resource estimate included drill holes over less than one kilometre of strike length. Subsequent drilling of 500 metre spaced, east-west, heel-to-toe, step-out drill fences has demonstrated continuity of mineralization over a three kilometre strike length along the Siribaya trends. Interpretations based on all available exploration data indicate that the 10.5 kilometre long Siribaya mega-structure contains two distinct substructures: the 10.5 km long 1B substructure (over ten times as long as the strike of the Zone 1B NI 43-101 compliant resource area) and the 9.5 km long 1A substructure to the east of the 1B substructure. The substructures are interpreted to contain multiple smaller parallel gold-mineralized structures.
IAMGOLD, which assumed operatorship of the project in September 2010, recently accelerated its rate of exploration expenditure and IAMGOLD is ahead of schedule to earn its 50% interest. In 2010, a total of 16,142 m of RC drilling was carried out along the Siribaya trend and concurrently the geochemical trend at Bambadinka was pursued with 4,823 m of mechanical auger drilling. An additional 17,000 metres of RC drilling is planned for 2011. This program, which is now underway, will further extend the explored strike length of the Siribaya trends from three to six kilometres.
Outside of the Siribaya mega-structure new mineralized trends have been discovered; Siribaya West which lies to the west of the Bambadinka trend and the Babara trends which lie to the east of Siribaya on the Babara and Kofia permits. These trends will be further tested during the 2011 field season.
Gregory P. Isenor, P. Geo., is the Qualified Person as defined under NI 43-101 who has reviewed and is responsible for the technical information presented in this news release.
Merrex is a Mali focused gold exploration company with experienced management, a solid exploration team, a prominent gold-producer as a partner and an expanding gold resource ... a winning combination offering investors an extraordinary opportunity.
Please visit our website at www.merrexgold.com for the most recent corporate presentation.
On Behalf of the Board
Gregory Isenor, P.Geo., President & CEO
This press release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, that address future exploration drilling, exploration activities and events or developments that the Company expects, are forward looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, continued availability of capital and financing, and general economic, market or business conditions.
FOR FURTHER INFORMATION PLEASE CONTACT:
Merrex Gold Inc.
1550 Bedford Highway, Suite 802, Sun Tower
Bedford, NS B4A 1E6
(902) 832-5555
(902) 832-2223 (FAX)
info@merrexgold.com
www.merrexgold.com
Neither the TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.
INDUSTRY: Manufacturing and Production - Mining and Metals
SUBJECT: MEX
ACTION in Robex (RBX.V); stock up 21.43% just today.
Perseus in Ghana: Central Ashanti Gold Project construction update,
Monday , 31 Jan 2011
Perseus Mining Ltd is pleased to provide the following pictorial update showing plant construction at the Company's Central Ashanti Gold Project (CAGP) in Ghana.
The project is on schedule to start production during the third quarter of 2011.
Perseus will provide monthly updates until first gold pour.
Click here to the view the photos taken from the CAGP.
[note: click below to find pictures.]
www.perseusmining.com
AngloGold (AU) wins shame award at Davos
DAVOS, SWITZERLAND Jan 29 2011 04:13
South African mining giant AngloGold Ashanti scooped the unwanted "Public Eye Award" for environmental and social "irresponsibility" on Friday on the sidelines of the World Economic Forum.
Campaigners in Davos to lobby the world business elite's annual get-together claimed the firm "contaminates land and people with its gold mining in Ghana".
"AngloGold Ashanti has destroyed over 50 rivers in Ghana that are indispensable for the residents. The rivers dry up, or mining toxins cause them to die off completely," the activists alleged.
Company spokesperson Alan Fine told Agence France-Presse: "First we have no idea what criteria was used for this award. Secondly, we have never been approached by these organisations and thirdly most of the events they refer to happened many years ago before our company was established."
Named and shamed
Other firms nominated for the award included oil giant BP after an April 20 explosion in the Gulf of Mexico killed 11 people and unleashed 4,9-million barrels of oil in a maritime spill.
Coca Cola, Philip Morris and Toyota were also "named and shamed".
Neste Oil, a Finnish manufacturer of bio diesel, won a separate online poll to nominate the "world's worst company" in terms of negative environmental and social impact, winning over 17 000 of 50 000 votes cast.
The firm, which sells biofuels from palm oil, "accelerates rainforest destruction and displaces ever more local communities in Indonesia and Malaysia", organisers said.
Simo Honkanen, responsible for sustainability at the firm, said: "Neste Oil is disappointed in the outcome of the Public Eye Award announced today and believes that it does not reflect the true nature of the situation."
"We believe that we are one of the world's most responsible companies buying palm oil today." - Sapa-AFP
ACTION: illiquid Avnel Gold (AVK.TO) tripled in a year; currently popping.
Adamus (ADU in Sydney) mine by the Kingdom of Axim on the Ghana coast is operating, pouring gold.
Added big Australian miner Newcrest Mining (NCM in Sydney, NCMGY on OTC), who bought Lihir, who bought Equigold, thus acquiring the Bonikro gold mine and property in Cote d'Ivoire.
See:
http://www.newcrest.com.au//operations.asp?category=10
I surmise that Ivory Coast has the most yet-undiscovered gold in West Africa; just look at the map in the board header.
Added Kinross (K.TO, KGC) to Ghana gold stocks in header, since Kinross bought formerly-Australian Red Back, with operating gold mines in Ghana and Mauritania ((the Chirano mine and the Tasaist mine). It also has interesting gold exploration properties elsewhere in Ghana.
Is Canadian Gold Resources on TSX? Or did the name change? Or is it private, or defunct? Can't find it....
Old News: Canadian Gold Hunter agrees to buy Sanu Resources
3rd July 2009
TORONTO (miningweekly.com) – Exploration firm Canadian Gold Hunter has entered into a definitive agreement to buy junior Sanu Gold in an all-stock transaction, the firms announced on Thursday.
Sanu shareholders will receive 0,5725 shares in Canadian Gold for every Sanu share held, valuing Sanu at C$0,233 a share.
After the business combination, former shareholders of Sanu will hold approximately 17,8% of the outstanding shares of Canadian Gold Hunter.
The transaction is expected to close by the end of August.
Canadian Gold has exploration assets in Canada, Mexico, Argentina, Colombia and Peru, while Sanu's portfolio includes properties in Eritrea, the Republic of Congo and Burkina Faso.
“Combining the two companies will create one of the strongest exploration vehicles in the industry,” the firms said in a statement.
Earlier this year, Canadian Gold Hunter bought another exploration junior, Suramina Resources, also for shares.
Edited by: Liezel Hill
Australian Mines to Acquire Nigeria Gold
12 January 2011
Australian Mines has completed due diligence to acquire Nigeria Gold, owned by Mines Geotechniques (MGL), in north-west Nigeria.
The company said it expects NGL to finalise the acquisition by mid-January.
MGL owns 47 granted exploration licences covering 2,170 million square metres and a further 17 exploration licence applications covering 1,924 million square metres.
The main leases are located in three main areas in north-western Nigeria in the relatively dry savannah-like region of the country, which has good access and comparatively low land-use intensity.
The initial work is expected to identify drill-ready targets for gold through ongoing soil sampling and geological mapping programmes.
Thanks-- It's added to the board header.
Now you're tempting me on Axmin. BUT... I guess the big unknown for me (and for most) about Axmin's CAR property is the claimed "CAR risk profile overstated". I don't remember Ubangi-Chari country ever being particularly auspicious for any enterprise. (What ever happened to Emperor Bokassa I's very expensive gold eagle throne?) There's also all that trouble next door. What if Joseph Kony & Co. or someone like that decides to drop by Passandro?
Also I have a personal rule: "Don't average down." meaning that if a stock goes down majorly after you buy it, you were probably wrong in the first place and it is NOT a good idea to buy more because it's available at lower prices. (Another version popular with trend-followers is: "Losers average losers.") I don't always obey the rule; my violations (New York Times, Thornburg Mortgage, and the more relevant Akrokeri-Ashanti Gold) have always lost money. I've lost a bunch on Axmin so far, my original reason evaporated when they got out of Ghana, and then there's my rule. But now I'm tempted to double up, maybe.
The "action" in Axmin stock is still sleepy so maybe there's no hurry to decide, but, who knows?
Newcrest Expanding Burkina Mine it bought along with Lihir
Aussie Miner Newcrest Seeks to Expand Gold Production in West Africa
Elisabeth Behrmann -- December 07, 2010
Newcrest Mining, Australia’s largest gold company, is seeking to boost output in West Africa to at least double production at its Bonikro mine in Ivory Coast.
“Ideally, and this is not written in stone, if we’re going to have a presence in Africa, we’d be looking for something bigger,” Geoff Day, chief operating officer-offshore for the Melbourne-based company, told reporters on Tuesday. “
You’d have to think it would be in the order of 300,000-500,000 ounces. That would be something where you can say you can support a country presence.”
Bonikro, which Newcrest acquired through its 11.4 billion Australian dollar ($11.3 billion) takeover of Lihir Gold this year, produced 150,023 ounces of gold in 2009. Gold is headed for a 10th annual gain, spurring companies to raise output and buy rivals.
West Africa is the “right real estate” historically for high levels of gold production, Day said. “It’s great ground, there’s every chance it’ll be that. If it’s not, we’re not going to be philosophically wedded to it.”
Newcrest rose 1 percent to 41.50 Australian dollars at the 4:10 p.m. Sydney time close on the Australian stock exchange.
Newcrest’s total gold output will reach 3.75 million ounces in fiscal 2014, Day said.
It will rise 8.2 percent annually from existing mines and projects, he said. Newcrest operates mines in Papua New Guinea and Indonesia as well as in Australia and Ivory Coast.
Semafo (SMF.TO) completes expansion at Burkina Faso mine
Semafo completes latest expansion at Burkina Faso mine
By: Liezel Hill
9th December 2010
TORONTO (miningweekly.com) – TSX-listed Semafo has completed the third phase of a plant expansion at the Mana gold mine, in Burkina Faso.
Semafo also said it has received confirmation that Burkina Faso tax authorities dismissed a tax assessment and penalties for 2007 and 2008, that was issued to the company in the first quarter of 2010.
The company added two carbon-in-leach tanks to extend the leach time at the plant, to accommodate an increased throughput rate of up to 6 000 t/d of hard rock.
The latest expansion was aimed at optimising gold recovery and was completed ahead of schedule and in budget, the company said.
With the tax assessment dismissed, Semafo said it will pay authorities $700 000 instead of the $13,8-million tax assessment and $14,4-million in penalties that the government said at the time was owing.
“The amount owing will be paid out and recorded in the fourth quarter 2010, bringing this matter to a close for all parties,” Semafo said.
Besides Mana, the company also operates the Samira Hill mine in Niger and the Kiniero mine in Guinea.
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Interesting Axmin (AXM.V) post! My few shares plummeted and never recovered. I've assumed that that investor negativity towards Axmin (whether justified or not) comes down to three words: "Central African Republic". Worse now because Darfur, N.E. DRC Congo, Nuer/Dinka and related trouble areas have spillover, and the Deby things, etc.
I originally bought Axmin for their other properties, in WEST Africa, but they've been unloading those.
Newmont(NEM) assures of safe and responsible operations
Newmont assure Ghanaians of safe and responsible operations
Ghana News Agency
==================================
Accra, Nov. 12, GNA - Newmont Ghana Gold Limited on Thursday expressed its commitment to safe and responsible operations in Ghana, bearing in mind the interest of employees and the citizenry.
"The health and safety of our employees and our neighbours is of utmost importance and is taken very seriously as part of our business," it said in a statement issued in Accra by Adiki O. Ayitevie Regional Manager, Communications.
"We continuously seek to improve our safety practices and methods. We regret and are deeply concerned with any fatality or injury that occurs from activities of Newmont employees and our contractors, whether inside the boundaries of our mine areas or outside the operations on public roads or in communities."
The statement said Newmont Ghana recognised from the earliest days of the Ahafo project feasibility study that road traffic safety and related accidents in Ghana were amongst the highest in any country where Newmont had previously worked.
As a result of the initial project risk and health impact assessments, the company had continuously strived to put measures in place to address road safety dangers.
It said these measures include extensive, regular and frequent training for all employees and contractors in addition to numerous efforts with external stakeholders and local communities, to increase awareness and improve safety in and around the mine site area.
The statement listed some of the safety measures as the engagement of local district assemblies and traditional leaders to ensure that roads within urban community areas are not blocked by local vendors and traders.
Newmont Ghana evaluates proposals from non-governmental organisations and other bodies to provide road safety capacity building to local communities, employees and contractors.
The company provides training to the youth to assist children in crossing roads safely, sponsored numerous road safety campaigns on local radio stations, and enforce strict speed controls for company employees and contractors passing through communities.
The statement said Newmont Ghana supports local authorities to improve road signage within host communities.
It had also installed Global Positioning Systems and speed trackers "in all of our light vehicles to monitor adherence to our mandatory speed limits".
The statement said: "A recent report has challenged our safety record in Ghana, claiming that 15 fatalities have been associated with our operations over the past five years. The Ahafo operation has not had a mine-work related fatality associated with its mine operations since production began in 2006.
"Regrettably, there have been a number of accidents, which occurred around the mine operations area and road traffic accidents both near and far from the Ahafo operation's area.
"The report also makes reference to the standards utilised in the construction of dams or facilities at the Ahafo mine. The facilities at
Ahafo, which contain dams or engineered embankments have been designed and constructed to international standards.
"Similarly, all embankments which are larger than 15 metres in elevation were reviewed by independent engineers during both the design and construction phase. Embankments are also independently audited annually to ensure that facilities are operating as designed.
"To date, no design or operational issues have been identified by any of the independent reviews or audits."
The statement noted that the drowning incidents, which occurred (two in
2005; one in 2009; and one in 2010), resulted from individuals accessing water bodies despite warnings and relevant safety signs and in spite of community awareness-raising programmes.
It said the water bodies which are integral parts of the companies operations are constructed to internationally recognised engineering standards and have been approved for use by the Ghanaian regulatory bodies.
"The drowning incidents were fully investigated and additional measures were put in place based on the investigation results. The measures included increased patrols, signage, and community information campaigns to ensure all households in proximity to water bodies clearly understand the associated risks."
It said road traffic safety is an ongoing risk throughout the country and a continued focus for Newmont Ghana.
"All of the road traffic related accidents involving Newmont vehicles or vehicles operated by Newmont contractors occurred on public roads.
Newmont regrets the loss of life from these unfortunate accidents and in all cases; we have worked with the police, community leaders, families and others to establish the facts. We have also taken the appropriate measures of bearing funeral expenses, providing the injured with medical cover and supporting their families while they are receiving medical attention.
"We have also been involved in facilitating processing of compensation for victims and families.
"We are committed to the continuous improvement of our health, well-being and safety procedures and standards. Newmont's first priority remains the safety of our neighbours, employees and contractors.
Newmont Ghana operates one of five core operating districts for Newmont Mining Corporation (www.newmont.com), one of the largest gold companies in the world.
It operates the Ahafo Mine in the Brong-Ahafo Region and also has a development project- the Akyem Project in the Birim North District of the Eastern Region.
The company employs approximately 5,400 people and contractors, with the majority of the work taking place at the Ahafo Mine.
The statement said: "Newmont's industry leading performance is reflected in Newmont Ghana's high standards in environmental management, health and safety for its employees and creating value and opportunity for its employees, host communities and Newmont's shareholders.
GNA
Randgold (GOLD) sticks to knitting; pouring Ivoirian bars
Randgold Resources sticks to its knitting
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by Brendan Ryan === MiningMX.com ===== 09 Nov 2010
[miningmx.com] -- RANDGOLD Resources’ (Randgold) CEO Mark Bristow is “ecstatic” over gold at $1,400/oz but stresses such prices will make no difference to the group’s development strategy.
Instead, the extra profits would be used to set out a clear and sustainable dividend cover and dividend policy for shareholders.
He commented, “we are currently in a strong growth phase but we don’t want to become a huge gold group chasing marginal ounces which are payable only at these high price levels.
“We would rather be a smaller, quality group producing highly profitable ounces and paying out large dividends to our shareholders.”
Bristow pointed out that Randgold’s expansion programme to 2014 when the Kibali mine in the Democratic Republic of Congo (DRC) will be commissioned had been budgeted on a forecast gold price of $900/oz.
He told Miningmx, “on that basis the peak funding requirement comes during 2012 when our available cash will fall to around $170m after which it will start to grow again.
“If $1,400/oz is maintained then we start to grow our cash from next year and, by the time we commission Kibali in 2014, we will have close to $2bn in free cash.”
Bristow said Randgold’s approach had been to invest carefully in the right kind of assets instead of just “spending money” chasing lower grade projects through what he termed “desperate merger and acquisition deals.”
“We have been decisive and we have not sat on our hands when we have seen world class assets become available such as Kibali,” he commented.
Latest key developments at Kibali have been the cessation of artisanal mining on the project site and the start of the Relocation Action Programme (RAP) which will ultimately relocate some 3,500 families from 14 villages into a new town.
The land for the new town, to be called Kokiza, has been acquired and model houses built for selection by community members.
The Catholic Church has agreed in principle to move its local church from the project site to Kokiza so that it may remain at the heart of the resettled community.
Bristow said more than 50% of the people previously engaged in illegal mining on the Kibali site were now working in local home industries such as the manufacture of bricks “which they are selling back to us and making real money.”
He said the end of artisanal mining on the site had been negotiated with the government authorities and state mining partner Okimo.
He added: "That was crucial. Our position was that the mining lease belongs to us and we will be paying taxes on it to the government.
“We were not prepared to have so-called artisanal miners – effectively illegal miners – continue to operate on our ground because then the debate starts over who that ground actually belongs to.
“We have bulldozed and terraced the areas formerly used by the artisanal miners.”
SALES UP
Randgold sold 123,830oz of gold in September quarter (June quarter – 111,150oz) for revenues of $115.8m ($102.6m) as the production problems that affected the Loulo plant during the June quarter were dealt with.
Profit for the quarter was $28.2m which was double the profit in the 2009 September quarter, but 23% down on the June quarter profit because of a $13m write back in the June quarter.
Adjusted for the write back the September quarter profit was 20% up on the June quarter profit.
The group’s new Tongon mine in Cote d’Ivoire poured its first bar of gold on November 8 after milling the first ore in the second half of September.
================================================
Creamer on Bristow, Randgold (GOLD) & Zoellick's (surprising) Financial Times article
Zoellick's call is yet another boost for gold – Randgold Resources
By: Martin Creamer of Creamer Media. 9 November 2010 Mining Weekly. com
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JOHANNESBURG (miningweekly.com) – The call of World Bank president Robert Zoellick for a global standard to guide currency rates is yet another boost for gold, says Randgold Resources CEO Dr Mark Bristow.
Zoellick, a former US trade representative who served in several Republican administrations, says ahead of this week's November 11 and 12 G20 Seoul Summit in Korea that leading world economies should consider employing gold as an international reference point for inflation, deflation and future currency values.
Zoellick's call follows last week's introduction by the US Federal Reserve of the second round of quantitative easing (QE2), an economic stimulus involving the purchase of $600-billion worth of additional longer-term Treasury securities by the middle of next year, which is also gold-price positive.
"Zoellick's call for a gold standard is an admission that the world does not know where it is in relation to where it has come from, and that there is no reference point," says Bristow, whose London- and Nasdaq-listed gold-mining company has no less than four new gold mines under development in Africa - the Gounkoto project in Mali, the Tongon mine in Côte d'Ivoire, which poured its first bar of gold this week, the Massawa project in Senegal, and the Kibali project in the Democratic Republic of Congo.
"We have seen a free run of the gold price and the silver price in all currencies. What it's measuring, is the free fall of the world's currencies, the big race to the bottom.
"When that happens, there needs to be a reference point to determine relative value, but there isn't one," Bristow tells Mining Weekly Online, which is why Zoellick wants leading world economies to consider adopting a modified global gold standard, in order to provide such a reference point.
Writing in the Financial Times, Zoellick called for a "Bretton Woods II" system of floating currencies as a successor to the Bretton Woods fixed-exchange rate regime that broke down in the early 1970s.
Such a move is likely to need to involve the dollar, the euro, the yen, the pound and a yuan that moves towards internationalisation and then an open capital account.
"The system should also consider employing gold as an international reference point of market expectations about inflation, deflation and future currency values," Zoellick adds.
Bristow reiterates that, even with the stratospheric increases that the gold price is experiencing, the gold-mining industry has gone ex growth, at a time of burgeoning demand.
In 12 months, gold has increased by $300/oz-plus and in the last five years by $900/oz.
"Yet, there's no new gold coming in, and that's driving the gold price.," Bristow says.
Gold ownership, he observes, has shifted from central banks to private individuals.
"It's private individuals who are saying what Zoellick is saying, that they'd rather have a significant amount of their value in a currency that government's can't print," he says.
In the circumstances, he expects the gold price to go to $1 500/oz in 2011.
"When you see the oil price going down and the gold price going up, you know that there is something very skew," Bristow adds.
He criticises many of his gold-mining peers for having business models that place an over-emphasis on the pursuit of the market and an under-emphasis on value creation.
As a result, he forewarns that many investors are going to make a lot of money if the gold price keeps rising, but stand to make a whole lot less when it goes down.
"We've always been a little more cautious, and we've tended to focus on discovering and developing big gold deposits that make money," says Bristow of Randgold Resources, a company born out of South Africa's now defunct Rand Mines group.
From a 2010 production viewpoint, however, Randgold Resources has had something of an annus horribilis.
"It's nice to have the last quarter behind us, and this quarter ahead of us, because things are all working out," he tells Mining Weekly Online.
"This year's challenges have now all been dealt with. We're looking at an 80% to 90% increase in gold production in the current December quarter, and an overall 50% increase in production next year.
"When you're growing real production and you're shipping out more bars of gold every day, you make money in this gold price, and we're doing it because we're building new mines."
Randgold Resources commissioned its company-making Morila gold mine in October 2000 and Loulo, also in Mali, in October 2005.
It opened Tongon in October this year, and now, for the first time, believes that it will shorten its usual five-year cycle with Gounkoto and Kibali.
Kibali has a 20-million ounce potential and Loulo and Gounkoto have been upgraded to a resource with a 20-year life of mine.
Tongon, its smallest asset at three million ounces, requires special growth focus.
"And then it's about hunting that next big footprint, and Massawa in Senegal is a formidable asset at these gold prices," Bristow says.
Randgold Resources is giving guidance of an attributable production of 675 000 oz to 680 000 oz next year, and consolidated production of 810 000 oz.
"We've turned the corner at the Yalea underground. We've got the Gara underground mine on track, but I would like to see a full quarter into next year before I can tick that box finally."
To deal with the underground challenge with which he has been wrestling, Bristow has appointed Ted De Villiers on to the company's executive committee to keep an exclusive eye on mining. Two operating officers were also appointed last year to oversee West Africa and Central Africa.
The start of Tongon production is expected to spur a rise in the December quarter gold production, which suffered September-quarter grade deterioration at Loulo.
The third-quarter (Q3) profit of $28,2-million is more than double that of the corresponding 2009 quarter.
Profit from mining of $42,7-million was up 21% on the corresponding 2009 quarter and 4% on the previous quarter.
The increase was mainly due to higher attributable Q3 production of 101 468 oz, compared with 93 880 oz in the prior period.
Gold sales for the quarter increased by 12% on an 8% increase in attributable gold production for the quarter, and a 4% increase in the received gold price of $1 159/oz, compared with $1 110/oz in the previous quarter.
Total cash costs increased 18% to $73,6-million because of stockpile adjustments at Loulo, where the head grade decreased 9% quarter-on-quarter and 24% on the corresponding 2009 quarter.
This meant that, in spite of the increase in the number of Loulo ounces produced, total cash costs an ounce increased by 9% quarter-on-quarter, and by 27% over the previous corresponding period, which unsettled at least one analyst, who kept Randgold Resources's shares on his "sell" list..
Profit from mining activity increased by 4% on the previous quarter and by 21% when compared with the corresponding 2009 quarter, mainly due to increased gold sales.
Exploration and corporate expenditure was 17% higher than the previous quarter but 9% lower than the corresponding period, mainly due to an increase in share-based payments to senior management.
The drop in expenditure compared with the corresponding quarter in 2009 is as a result of significant exploration expenditure incurred during that quarter, following accelerated drilling work at Massawa and Gounkoto, the expenditure on which is now being capitalised.
Profit for the quarter was $28,2-million, an increase of 108% from the corresponding quarter in 2009 and a decrease of 23% from the previous quarter.
Other income of $8,3-million in the current quarter includes a gain of $5,4-million on the sale of a further five million shares held in Volta Resources which were acquired in the prior year as part of the sale of the Kiaka project in Burkina Faso.
During the quarter, Loulo produced 78 198 oz, at a total cash cost of $729/oz compared with 70 385 oz in the previous quarter at $668/oz.
Morila produced 58 174 oz, in line with the previous quarter of 58 737 oz. Mill throughput, plant head grade and recoveries were all broadly in line with the previous quarter.
At Loulo's underground Yalea mine project, 909 m of development was completed and 157 196 t of 3,40 g/t ore were hauled to surface, representing a 21% improvement in tons hauled over the second quarter.
The team continued to struggle with the main decline development. Discussions are under way with mining contractor African Underground Mining Services, which is far advanced in extending its Gara development contract, to include the Yalea development.
Gara's decline development has continued to improve in the third quarter with some 628 m completed.
At Kibali, the resettlement working group has signed off on the resettlement packages, as well as the area where resettlement will take place at Kokiza.
The upgrade of the road between Aru and Doko has been completed ahead of time and within budget.
A memorandum of understanding has been signed between Kibali and the Catholic Church to remove the church building that is within the exclusion zone, and to build a new church and community centre.
All illegal mining activity within the exclusion zone has ceased. Work creation programmes are under way where the communities are offered the opportunity to produce and sell bricks, building sand and stone for Kibali at commercially negotiated prices.
These programmes have absorbed many informal miners within the exclusion zone.
Work has continued on the design of the hydropower stations that will provide Kibali with electricity.
Also, agreement has been reached with Okimo to demolish and clean up the Durba mill, and to stop the processing of Durba tailings.
At Massawa, geological remodelling and infill drilling is complete.
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Edited by: Creamer Media Reporter
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http://www.miningweekly.com/article/zoellicks-call-is-yet-another-boost-for-gold-randgold-resources-2010-11-09
Randgold (GOLD) profit doubled; will increase production 50%
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Randgold more than doubles profit
From MiningReview.com ==== 10 Nov 2010
[PICTURE: Loulo, one of Randgold’s high-production gold minesin West Africa]
London, England --- MININGREVIEW.COM --- 10 November 2010 - West African-focused gold mining and exploration company Randgold Resources Limited says surging prices for the precious metal more than doubled its third-quarter profit, and adds that it is targeting a 50% increase in output next year.
Announcing this in a release issued here, the company said it expected its fourth quarter production to be lifted by a better performance from its Loulo project in Mali, and from the start of production this week at its new Tongon mine in Ivory Coast.
“We are confident that this momentum will be maintained and, with a big improvement in gold production in the fourth quarter, our sights are still firmly set on a 50% increase in our gold output next year,” said chief executive Mark Bristow.
“Randgold has reported a decent set of Q3 results that crucially seem to reflect that it has overcome operational difficulties at its key Loulo producing mine,” said Liberum Capital in a note, adding that the one negative was the increase in cash costs.
Bristow told Reuters that he expected the group to produce about 450 000oz in 2010, in line with August's revised target, implying fourth-quarter output of around 120 000oz. He anticipated cash costs falling towards US$600/oz in the fourth quarter, and into the lower US$500s in 2011 on higher gold grades.
Reuters reports that Randgold was not alone in cutting output forecasts for the year. Lower guidance from Petropavlovsk, African Barrick Gold and Centamin Egypt meant that the top four biggest pure gold producers listed in London reduced their 2010 targets.
“Randgold has not been immune to production difficulties in 2011, however theirs have not been as acute as their nearest peers African Barrick and Petropavlovsk,” said Liberum.
Gold prices that have risen 29% this year and reached a new record high of US$1 414.60 an ounce will give the producers some comfort.
“We are in the biggest bull market we have ever seen in the gold industry,” Bristow said. He expected gold prices to reach US$1 500 an ounce in 2011.
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Semafo (SMF.TO) revenue +45%; Q3 beats estimates; both higher production and higher price/oz gold
Wed Nov 10, 2010
Reuters - Africa
Semafo Q3 beats on higher production, prices
* Q3 EPS $0.10 vs est $0.09
* Q3 rev up 45 pct
* Q3 gold production up 5 pct to 65,500 ounces
Nov 10 (Reuters) - Canadian gold miner Semafo Inc's (SMF.TO: Quote) quarterly earnings beat estimates for the second consecutive quarter, helped by higher gold production and prices.
For the July-September period, net income was $28.8 million, or 10 cents per share, compared with $13.4 million, or 5 cents per share, a year ago.
Revenue jumped 45 percent to $86.2 million.
Analysts on an average were expecting the company to earn 9 cents per share, on revenue of $78.94 million, according to Thomson Reuters I/B/E/S.
Semafo said gold production was up 5 percent at 65,500 ounces in the third quarter, with 71 percent of it coming from its flagship Mana mine in Burkina Faso in West Africa.
The Saint Laurent, Quebec-based company's shares, which have gained nearly 19 percent in the last month, closed at C$12.60 on Wednesday on the Toronto Stock Exchange. (Reporting by Abhiram Nandakumar in Bangalore; Editing by Roshni Menon)
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Canyon Res. (CAY,Sydney) hits at Tao, Burkina Faso
Canyon Resources identifies two prospects at the Tao Gold Project in Burkina Faso
Proctive Investors -- Australia --Thursday, November 11, 2010
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Canyon Resources (ASX: CAY) has identified two gold prospects, both with significant gold intercepts, at the Tao Gold Project in Burkina Faso.
The two prospects on the Tao Project have been drilled by previous explorers, primarily on the basis of artisanal gold workings and surface geochemical anomalies.
The prospects are known as Tondoby and Bandiedaga.
Previous drilling highlights from Tondoby include:
- 9m @ 4.00 g/t gold from 60m;
- 9m @ 3.09 g/t gold from 36m; and
- 4m @ 8.07 g/t gold from 25m.
Previous drilling highlights from Bandiedaga include:
- 3m @ 1.17 g/t Au from 15m;
- 9m @ 1.04 g/t Au from 9m; and
- 3m @ 2.42 g/t Au from 12m.
Phil Gallagher, managing director, said “Canyon acquired both the Taparko North and Tao Projects on the basis of favourable geological and structural settings in proven mineralised belts, and the historical exploration data strongly supports our expectations for this gold project.
"The data demonstrates that gold mineralisation has been delineated on at least two prospects on our Tao Project and that this ground warrants a significant exploration campaign.”
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Newmont (NEM) Ahafo Mine denies 'killing' residents
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CITIFMONLINE Business News
Ebenezer Afanyi Dadzie/ Citifmonline.com ==== 11 Nov 2010
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Mining giant Newmont Ghana gold limited insists it is conforming to international best practices despite recent complaints of deaths and various degrees of injuries at its Ahafo mine.
The mining giant was reacting to concerns raised by Wacam, a Human Rights and mining advocacy non-governmental organization, which has expressed worry about increasing deaths, accidents, injuries, and safety risks associated with the operations of Newmont’s Ahafo mine.
According to WACAM, dams constructed by Newmont Ahafo mine have created unsafe economic and social problems for many communities.
They alleged that fifteen people have so far died by drowning in poorly constructed dams or knocked down by the company's vehicles.
But speaking to Citi Business, the Regional Communications Manager of Newmont Ghana Gold Limited Adiki Ayitevie said although many of the incidents did occur the activities of Newmont conform to international safety standards.
“We take this very serious and we are continuously looking for ways of improving our safety standards. So the damns have been built with safety in mind and they have been done in line with international environmental standards all in line the country’s regulatory authority agencies. What we have also done with the dams is that we have posted relevant safety signs with security personnel to undertake awareness programmes” he said.
“There have been some incidents of drowning but most of this happens when people go there to fish and anytime it happens, our emergency response team works with the police to retrieve the bodies and work with the necessary organizations to ensure that we improve measures so that people do not have access to use it for fishing and swimming” he explained.
WACAM also says Boom Gates erected by the mining company stops all vehicular and human movement and causes the delay of vehicles conveying sick people referred from Gyedu Health Centre to Hwidiem Government Hospital on emergency through Kenyase.
But the Regional Communications Manager of Newmont Ghana Gold Limited says the boom gates were rather built to protect residents them from being hit by trucks.
“We have those boom gates as part of the safety measures that has been agreed with our regulatory authority and our own safety standards so that when the trucks are moving and people get there, they cannot cross. As far as I know, we haven’t had people complaining about that. So those boom gates are there to ensure that we do not have any accidents or collisions amongst our trucks.
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African Aura to separate iron-ore, gold assets
By Loni Prinsloo -- Mining Weekly
8th November 2010
JOHANNESBURG, South Africa (miningweekly.com) - Share in TSX Venture Exchange- and Aim-listed African Aura Mining responded positively on Monday to news an announcement that it planned to separate its gold and iron-ore assets in Western Africa.
African Aura's share price rose by over 5% to a high of 172p, compared to the its close at 163p on Friday.
Hitherto, the company has held a stakes in iron-ore and gold projects in Liberia and Cameroon. The restructuring would see it hold on to its iron-ore assets, while a new company, Aureus Mining, would be formed to take over the gold assets.
African Aura believes the move will improve prospects for the two companies to finance their respective businesses and grow through acquisition and exploration.
President and CEO Luis da Silva said that, through the creation of two "pure play" entities, shareholders would be entitled to receive one new share in African Aura and one share in Aureus for each share they hold in African Aura.
The company expected to complete the arrangement in the first quarter of 2011. It is anticipated that David Reading, currently nonexecutive director of African Aura, would be appointed the new CEO of Aureus Mining.
Mining Weekly Online reported on the potential iron-ore/gold split in July.
Edited by: Mariaan Webb
Fifteen killed in course of Newmont Ahafo Mine operations - Wacam
Source: GNA - Ghana News Agency
Wacam, a Human Rights and mining advocacy non-governmental organization, has called on the Government to investigate the causes of death of 15 persons in the course of the operations of Newmont Ghana Gold Ahafo Mine.
“Government should also ensure that appropriate compensation is paid to the families of the victims,” the organization insisted.
A letter titled “REPORT ON HEALTH AND SAFETY RISKS AND ACCIDENTS ASSOCIATED WITH THE OPERATIONS OF NEWMONT AHAFO MINE” signed by Mr Daniel Owusu-Koranteng, Executive Director of Wacam and addressed to the Minister of Lands and Natural Resources, alleginh that the 15 died as a result of being drowned in poorly constructed dams of Newmont or knocked down by vehicles working for the Company.
Wacam said the 15 deaths it investigations revealed was only a small picture of a big safety and health risks associated with the operations of the Mine and added that it was sad to state that Newmont Ahafo Mine had been insensitive to these problems and had characterised the deaths as normal collaterals.
“Considering the safety, social, economic and cultural problems associated with the dams of Newmont Ahafo mine, we have cause to doubt whether the dams were constructed based on internationally accepted safety standards,” the letter stated.
Wacam said in 2006, the World Bank's International Finance Corporation (IFC) provided a $125 million loan to Newmont to develop the Ahafo Mine and the IFC, promised to provide expertise and guidance to the Company to meet its social and environmental standards.
“Newmont Ahafo Mine is thus required to meet the IFC Performance Standard 4 on Community Health, Safety and Security, which states that clients of IFC including Newmont Ahafo Mine have the 'responsibility to avoid or minimize the risks and impacts to community health, safety and security that may arise from project activities'.
“One of the stated objectives of the “IFC Performance Standard 4” is 'avoid or minimize risks to and impacts on the health and safety of the local community during the project life cycle from both routine and non-routine circumstances.'
“Mining companies are required to operate in a way that would not undermine the health and safety of people living in the communities in which they operate. A safe mine is the hall mark of a responsible mining company. One of the stated core values of Newmont Ghana Gold Limited (Ahafo mine) is “demand leadership in safety, stewardship of the environment and social responsibility”.
Wacam said: “Despite the proclaimed values of Newmont Ghana Gold Limited and the requirement to meet the IFC Performance Standard 4, WACAM is deeply worried about the increasing deaths, accidents, injuries, and health and safety risks associated with the operations of Newmont Ahafo Mine.
“There had been instances where community people got drowned and died in dams constructed by Newmont Ahafo Mine on rivers for its operations whilst many community people have died or suffered permanent injuries to their bodies when they were knocked down by vehicles belonging to Newmont Ahafo Mine or ancillary companies of Newmont.
“The dams constructed by Newmont Ahafo mine have created safety, economic and social problems for many communities. For example communities living around the dam constructed by Newmont Ahafo Mine on river Subri complained to the Company's Management that the dam had resulted in social exclusion by increasing the travelling distance to other communities.
“The people stated that they do not feel safe because people had drowned in the dam and the blockage of the flow of river Subri by the dam has forced reptiles such as snakes, including big pythons, to invade their communities and increasing the incidence of snake bites in the communities among other problems.
“The dams have become breeding grounds for mosquitoes and other flies. The communities have complained about increased malaria incidence and made allegations on the incidence of cases of buruli ulcer.
“The Concerned Farmers of Awonsu near Ntotroso also complained that they had experienced two floods from the Environmental Control Dam 2 (ECD 2) on 13th September 2007 when the company opened the spillway of the dam and 9th July 2010 which the company attributed to a heavy rainfall.
“Another important issue that relates to the health and safety of the people in Ntotroso and nearby communities is the “Boom Gate” of the company established on the haul road which crosses the Ntotroso - Kenyase road.
The Boom Gate stops all vehicular and human movement when the Dump Trucks are moving on the Haul road and this causes the delay of vehicles conveying sick people referred from Gyedu Health Centre to Hwidiem Government Hospital on emergency through Kenyase.
“An important issue that affects the health and safety of communities in the catchment area of the company is the increasing rate of accidents involving Newmont Ahafo vehicles or ancillary companies of Newmont resulting in the death of people and causing serious injuries to the victims.”
Actually up 14+% yesterday. Today's Saturday.
Perseus (PRU.TO, PRU in Sydney) awards mining, fuel-supply contracts for Ghana gold mine
Perseus Mining awards mining, fuel-supply contracts for Ghana gold mine
October 15, 2010 -Mining Weekly-
TORONTO (miningweekly.com) by Liezel Hill
ASX- and TSX-listed Perseus Mining has awarded to key contracts for its Central Ashanti Gold project, in Ghana, in preparation for start-up at the mine next year.
The firm has provided a letter of intent to African Mining Services, a subsidiary of Ausdrill Limited, for an openpit mining contract at the project.
Pre-production mining is scheduled to start at Central Ashanti in March, and the contract is for a complete service including grade control, drilling and blasting, loading and hauling ore and waste and crusher feed.
MD Mark Calderwood said that the mining contract has been priced in line with estimates contained in the 2009 definitive feasibility study for the project.
AMS will employ about 300 people, mainly Ghanaians, Perseus added.
The company has also awarded the fuel supply contract for the project to Total Petroleum Ghana (TPG), a subsidiary of Group Total.
TPG will install a 360 000 litre fuel storage facility at the Central Ashanti project.
Perseus started construction in June at the Central Ashanti and expects to start commissioning and then production at the operation in the third quarter of 2011, Calderwood said at the Denver Gold Forum last month.
Perseus expects to get up to a production rate of 200 000 oz/y from Central Ashanti in 2012, and will ramp up to the full 300 000 oz/y by 2013.
The company also expects to receive permitting approval by mid-2011 for its second project - Tengrela, in the Côte d'Ivoire.
Great Quest up a further 14% just today. Something going on?
Most profitable?: Great Quest (GQ.V) up over 24x! Wish I'd had some during 2010. Must be on a great quest. FL
Axmin (AXM.V) and Channel Resources (CHU.V) volume action on rises. Some situations may be changing. Also, sleepy, almost-no-volume Avnel (AVK.V) has seen unaccustomed signs of life recently.
Castle Minerals (CDT in Sydney) hits gold in Ghana
Castle Minerals Limited is a gold exploration Company with ten project areas covering more than 10,000km² in Ghana, West Africa.
Thursday, September 30, 2010
Castle Minerals intersects new gold zone at Julie West in Ghana
company news image
Castle Minerals (ASX: CDT) has intersected a new gold zone at the Julie West prospect in Ghana, identified from a wide spaced reverse circulation drilling program.
Highlights include:
- 20m @ 1.79g/t gold from 44m, including 6m @ 5.02g/t gold from JWRC 192; and
- 15m @ 1.30g/t gold from 10m in JWRC 181.
Castle used detailed geochemical sampling to discover the concealed gold mineralisation, which is hosted within altered and pyritic mafic volcanic rocks.
Mike Ivey, managing director, said, "We now have an additional style of mineralisation to target and are very keen to recommence drilling to follow up these results and test other anomalies that we have recently generated."
The Julie West prospect is within the Julie-Jang Trend of Castle’s Wa Project in north west Ghana where Castle will shortly commence 35,000 metres of drilling to test numerous gold targets.
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Channel Resources (CHU.V) recently quadrupled, in about a month.
Its gold properties are in Burkina Faso. It also has some Lithium in Canada.
Ampella Mining (AMX in Sydney) now in Burkina Faso
See:
http://www.ampella.com.au/public/default.aspx?id=1&category=1
Perseus Mining Plans Gold Acquisitions in West Africa, Company’s CEO Says
By Bloomberg · September 21, 2010 · 2:04 am · Leave a Comment
Click here to read the whole story or read an except below.
By Elisabeth Behrmann
Perseus Mining Ltd., an Australian gold company building a mine in Ghana, plans to make acquisitions in West Africa from next year.
“If we don’t get swallowed, we’ll use our early stage production to our advantage” to take part in consolidation once revenue from the mine starts flowing in the third quarter next year, Managing Director Mark Calderwood said in an interview. Perseus hasn’t had any recent takeover approaches, he said.
UBS AG yesterday named Perseus and Adamus Resources Ltd. as potential targets partly because of their West African projects. Gold’s climb to a record this year has pushed acquisitions in the sector to an all-time high, with Kinross Gold Corp.’s C$7.4 billion ($7.2 billion) takeover of Red Back Mining Inc., the latest in West Africa.
Perseus slipped 1 cent to A$3.24 at 2:43 p.m. in Sydney. Its shares have jumped 83 percent this year.
Perseus, based in Perth and with a market value of A$1.37 billion ($1.29 billion), is developing the $160 million Central Ashanti gold project in southern Ghana and the Tengrela project in Ivory Coast. Central Ashanti is set to start output in the third quarter next year, with average production of 275,000 ounces a year over 13 years, UBS said.
The company already has a 19.9 percent stake in Burey Gold Ltd., an exploration company that focuses on Guinea.
Someone calls Appleton a disgrace:
See http://incakolanews.blogspot.com/2010/06/appleton-exploration-aexv-kindly-offers.html
Stupidty of Ghana's "Bui Dam" project continues [Volta VTR.TO]
26 AUGUST 2010 - Bespoke
The ill-starred Chinese Bui Dam project is attempting to build a superfluous dam upstream from the the famous Akosombo Dam on the Volta River, northwest of Ghana's Lake Volta. It is essentially a Chinese-funded diplomatic ploy. Aside from 1. the Bui Dam will screw up already-paltry water flow into the existing, shrinking Lake Volta, 2. it will kill and wipe out hundreds of Ghana's hippopotamuses, about half of Ghana's population (bringing Ghana's "hippo tourism" to an end) 3. it serves as a covert instrument of Chinese influence and control over Ghana's government, 4. its promised economic benefits for Ghana are mostly fictional, 5. "dash" (Ghanaian corruption, bribery, not all Chinese), now there is something further:
The Bui Dam project is being used as an excuse to block ALL gold prospecting and development activity in the large "Bui Concession" held by Canadian miner Volta Resources. This rich gold area has numerous promising gold deposits that had been developed at great effort and expense with government encouragement for over a decade, by Volta Resources and its predecessor, the highly respected Birim Gold Corp. The gold concessions are miles and miles from the Bui dam site and the area to be flooded by it, and they will be unaffected by the dam in the unfortunate event that the dam ever actually gets built by the Chinese. Nobody can explain why the dam project has any relevance to distant gold properties like the Brohani Hills that are so many miles away and hundreds of feet higher than any area to be flooded or affected by the Bui Dam. Possibly the ancient Ghanaian tradition of dash (bribery) is the real reason for the massive hold-up; are palms waiting to be greased? Certainly there is no scientific or other rational reason to stop all work in Volta's Bui Concession because of this dam.
Luckily for Volta Resources, it has several other hot properties in Ghana and Burkina to fall back on, and the Bui Dam fiasco just amounts to an ongoing nuisance to the company; it's an ongoing embarassment to the government of Ghana. There's something here to annoy the ecological Left (mercilessly killing the hippos) and the capitalist Right (screwing the Volta shareholders), as well as locals who would like the related jobs, or who expect rationality in their government.