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|In todays Bendigo Advertiser;
|I see what you mean, we do have an interest in the same companies. I try to limit myself to holding only around ten shares. I find that if I hold anymore then I cannot keep my eye on them all
GKP, VST(TSX), AFR, BLVN, AEX, GRL, AAZ, ORE, THR, SNRP.
On my watch list - XEL, LFD(TSX), WZR(TSX), SMB(TSX), RRR.
Nice thread by the way.|
|Pretty picture of the West African Gold deposits. The magenta areas are deposits belonging to Golden Star Resources. Note the stikes running south west -north east. Senegals deposits are clustered at the south east corner adjacent to the Mali border:
and zoomed in on the Ghana deposits. Again taken from the Golden Star Resource website:|
AAZ AR. AGQ AAU BAO BLVN CAD CNR ECR GKP GRL KIBO MIRL NGL ORE RGM RRR SHG SNRP THR XEL
|from ResourcestocksMagazine www.resourcestocks.net
This article paints a very positive picture of Unity Mining however I believe they are having a tough time at Henty and an even tougher time at Bendigo -Kangaroo Flat hence their Journey to Africa in search of gold!
"Two years ago, Unity Mining's annual production totalled fewer than 40,000 ounces of gold from one mine. By June 30, 2010, the company held resources of 176,000oz across two operations, plus highly prospective, largely untested exploration ground in Australia and west Africa.
While engineering significant geographical growth, Unity has also doubled production.
Focused Australian exploration and expansion is responsible for Unity's resources boom, initial growth fuelled by the enviable acquisition in July 2009 of the Henty gold operation from Barrick Gold for $5 million cash and $3 million in shares.
However, more looks set to come with last year's purchase of a 20% interest in Alternative Investment Market-listed gold explorer Goldstone Resources.
Goldstone boasts large landholdings in Ghana and Senegal that should further boost total ounces and potentially deliver new production.
In its pursuit of Henty, the former Bendigo Mining sought to de-risk its exclusive Bendigo goldfield profile and add near-term production.
Henty has produced in excess of 1Moz at 12 grams per tonne gold over 14 years and is developed to a depth of 1000 metres. Ore is processed through a 300,000 tonne per annum treatment plant.
However, 12 kilometres of favourable strike with multiple untested targets were the main attraction for Unity.
Further, the Tasmanian west coast location, set amid the highly endowed Mt Read volcanics, hosted respected neighbourhood orebodies such as Rosebery, Mt Lyell and Hellyer.
Barrick had planned to mothball the operation in December 2009, but Unity moved quickly to ensure its ongoing viability, more than doubling the resource of the Tyndall ore zone alone, proving up 73,000oz from the initially acquired 36,000oz.
Unity's immediate focus on building Henty resources was rewarded with two high-grade discoveries, first the Newton zone and then the Read zone.
"Henty was believed to be mature," Unity managing director and chief executive officer Rod Hanson told RESOURCESTOCKS.
"Barrick was conducting no further exploration or mine development.
"Hence, while we've been mining lower grade remnants with an impact on costs, as we explore and redevelop, we aim to increase mine head grade towards seven to eight grams per tonne gold, at the same time keeping in mind the 12 grams per tonne gold life-of-mine average of this modern mine.
"Last year when the mine averaged 5 grams per tonne we produced 43,000 ounces, so when we get the grade back to up to 8 grams per tonne, we expect to produce perhaps 80,000 ounces per year.
"Stoping is now seriously underway at Tyndall, while at our new discovery, Newton, we're scoping out the zone with diamond drilling and have started access development."
Thick, high-grade intersections encountered at Newton underpin the potential to double the Henty mine life.
Moreover the Newton mineralisation, located within 100m of current development, remains open.
Results continue to impress, with intersections including downhole lengths of 26m grading 10.2gpt gold, 23m at 11gpt, 17.8m at 8.5gpt and 18.1m at 8.2gpt.
About $8 million has been allocated for Henty drilling through 2011. Four rigs are in operation, two underground and two at surface, testing for near-mine strike extensions.
Read Zone drilling produced some outstanding numbers last year, including 5m at 105gpt and 2m at 141gpt.
"We have some very nice holes through Read," Hanson said.
Accordingly, drilling is continuing to further test the prospect, already known to comprise a continuous and extensive alteration zone.
The Newton and Read finds compelled Unity to participate last year in a competitive tender for ground hosting an additional 16km of strike along the Henty fault, immediately north of the company's existing tenements, and including 700m strike of known gold mineralisation at the Lakeside prospect.
Unity's winning bid supplemented the company's existing 42 square kilometre Henty exploration holding with a further 69sq.km and boosted its Henty fault coverage to 29km.
As with Henty, Unity's Kangaroo Flat project at Bendigo, Victoria is characterised by underground mine development to 1000m depth over a 3km strike.
Kangaroo Flat exploration success has not kept up with multiple-reef production, with the company last year foreshadowing a likely production hiatus in about mid-2011.
Unity is now focusing on the remainder of the Bendigo goldfield and surrounding exploration tenements, with the aim of developing new targets for drill testing.
"We will continue to explore this very large goldfield and work up targets to drill," Hanson affirmed.
"We've been exploring and mining there for almost 20 years so a good understanding of the geology and conditions required to form reefs."
While continued exploration success at Henty and potential new developments at Kangaroo Flat will reinforce Unity's current growth strategy, so could additional acquisitions.
"We have a number in the mix, some advanced and others at an early stage," Hanson said.
"It's getting harder to find good opportunities in Australia due to competition in a mature market.
"West Africa makes a lot of sense and we have already taken a first step."
Unity's Goldstone Resources acquisition within 10 months of its Henty purchase positioned the company among the growing ranks of foreign-based west African explorers at an opportune time.
"We met with Goldstone management at the annual African Mining Indaba conference last year," Hanson said.
"Goldstone has very good tenements but little cash, while we had the cash and the desire to be involved in good projects in west Africa."
Given exploration success from Goldstone's program commencing early this year, the strategic alliance between the companies will enable Unity to develop African projects and Goldstone to continue to explore.
Unity is encouraged by the success of other Australian companies who have significantly expanded small west African open pit resources, such as Red Back Mining with Chirano, and Perseus Mining with its Central Ashanti project (formerly Ayanfuri).
"We see these as good analogues for success," Hanson said.
In Ghana, Goldstone's holdings already boast a 282,600oz resource at the Homase project, which lies 15km northeast of AngloGold Ashanti's 42Moz Obusai gold operation.
Meanwhile, Goldstone has also picked up an 85% interest in the adjoining Akrokerri licence, just 6km northeast of Obusai, and into which the mineralisation in the adjoining, but dormant, Homase open pit is believed to trend.
In addition, Goldstone holds a 471sq.km exploration lease in Senegal, located southwest of Randgold's 3.4Moz Masawa discovery and along trend from the 2.2Moz Sabodala, 2Moz Yatela and 10Moz Sadiola gold mines.
Boasting a strong cash position ($38 million as at September 30, 2010), two producing Australian operations, a demonstrated and successful exploration approach and west African assets, Unity Mining could be considered peerless.
"Our mix of production and exploration, plus exposure to west Africa makes direct comparisons difficult," Hanson noted.
"We're a lot more than just the Bendigo goldfield now, although many in the market are yet to realise our progression.
"Our Bendigo operation is a smaller part of a much larger business.
"Our new name, Unity Mining, maintains our connection and history with the historic Unity Shaft located in one of the Bendigo goldfield's most highly-endowed areas.
"But now we're really out there, working hard to become a successful Australian-based international,mid-tier gold mining business."
|Many Thanks for setting the thread up FJ,
I did notice it trading up over night, looks like it was sold back down to flat late on. I'm going to make enquiries with my broker today regarding taxation, charges, exchange rate influences etc! As it stands today they have an e/v of around $A13.5m which include a circa $S9.9m investment in Goldstone, Mcap @ $A50m with cash in bank now sat at around $A36.5m. They are producing at a rate of circa 4000 oz per month at a cost of around 800oz and will be in a position to pay the $A10m per year exploration costs out of operational profits. I believe this or the entire Goldstone stake is not being recognised by the market! Unless there is something I'm missing it's quite a compelling investment case!|
Unity Mining Website
Latest Unity Presentation
Gold Mining and Processing explained
ASX Announcements RNS
Sydney Morning Herald Article April 2011
Map from The Golden Star (GSR) website-major mining centres in Senegal & Ghana
BIOX look at pages 76-85
Gold Recovery Processes-Denver Minerals Inc
Randgold frantically exploring for non-refractory ore in Senegal
|This is a better chart, plenty of upside potential.|
|This thread needs resurrection. The chart died in April. Did you buy in August sheeneqa?
How are the miners doing?
Probably not as well as the underlining commodity.|
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