Gold Exploration in West Africa

[FL]

Gold Fields (GFI) into Mali with Glencar (GCM on London (LSE or AIM?), and on Ireland Stock Exch.)

[ See: http://www.mineweb.net/sections/junior_mining/478500.htm ]

Gold Fields dips its toes into Mali
By: Gareth Tredway
Posted: '31-AUG-05 15:00' GMT © Mineweb 1997-2004

JOHANNESBURG (Mineweb.com) -- Glencar Mining, an African exploration junior, said on Wednesday that Gold Fields, the world’s fourth largest gold producer, has made an indicative offer on the Sankarani project in Mali.

In a nutshell, Gold Fields would need to spend $12 million up to feasibility study completion to earn as much as a 70% interest in the project. This option covers three of Gelncar’s licences, but excludes the Komana licence on Sankarani.

The expenditure includes $2.5 million on exploration by end-2007 to earn 25% of the project, and another $1.5 million by end-2008 to earn a 51% interest.

Hugh McCullough, Glencar’s chief executive, told Mineweb, that Glencar did not include the Kamana licence in the deal, because it wanted to remain active in the area.

An exploration budget of $500,000 has been set-aside for Kamana, with drilling expected to start at the end of this year, according to McCullough. Gold Fields will retain a right of first refusal at Kamana.

[ map goes here ]
source:Glencar website. Green area is pending approval.

AngloGold Ashanti’s Siguiri mine in Guinea is located 80km west of Sankarani and forms part of the same geological structure.

Certain conditions still need to be met regarding the Gold Fields deal, these include, a due diligence, exploration budget and Gold Fields board approval amongst other things.

Gold Fields already has a strong foothold in Africa, with operations in Ghana and advanced exploration in Burkina Faso. The company has a large portfolio of investments in junior stocks with exploration targets located all over the world. It also has cash of about R3.4 billion (roughly $523 million).

The £4 million Glencar also has exploration licences in Ghana and Uganda. Recent regulatory changes at the London Stock Exchange meant that Dublin-listed Glencar, could no longer trade on the LSE. McCullough says an application for an AIM listing is imminent but that the listing will not involve any fund raising since the company recently raised about $1.5 million.