Mining Minerals & Metals Share Discussion Threads

[pecker1] 26/3/2008 08:38

Early days yet in the drilling of Komana East. But it looks as though Hugh is correct is his theory that Randgold failed to interpret the deposit correctly and thereby underestimated its potential - at 250k oz. By how much we will find out in due course.

But we already have 1.1 km of strike length with consistent grades and mineralisation. The RNS says that they are "excited". Well, so am I! This is a stonking discovery that could transform the economics of Komana West. With a distance between them of just 7 km, a single processing plant to serve both deposits should be a viable option.

[stenick] 26/3/2008 08:18

For theoretically 1 mill oz I would have thought a £50mill market cap would be feasable

[robbi123] 26/3/2008 08:09

certainly not 7p imo!

[amt] 26/3/2008 07:25

God what does all that mean, what is the fair value of SP, any views?

[robbi123] 26/3/2008 07:07

Nice:

Drilling Update - Komana East




Drilling Update - Komana East
Glencar Mining plc Drilling Update 26 March 2008 Glencar intersects significant, extensive ore zone in Komana East
drilling programme* Significant, persistant ore grade mineralisation intersected at
Komana East over one kilometre strike length to date along the
regional Sankarani Shear Zone
* 19 metres at 4.92 grams/tonne intersected in the southernmost hole
drilled to date
* 8 metres at 3.92 grams/tonne intersected in northernmost drillhole
* 20 metres at 4.36 grams/tonne intersected in the central zone
indicating continuity of mineralization through this zone
* Mineralisation open in each direction along strike and at depth
* Main Sankarani Shear Zone extends for a further 20 kilometres to
the south within Glencar's Komana licence.* Drilling continued at Komana West deposit and Solona targets;
update expected shortly.
Glencar Mining plc, ("Glencar" or "the Company"), the AIM and IEX
listed company with gold exploration interests in Africa, is pleased
to announce assay results from the first phase of drilling at its
Komana East target in southern Mali.
The Komana East target is approximately 7 kilometres east of
Glencar's Komana West deposit and drilling by the previous licencee,
Randgold, in the area in the 1990s had already outlined a non - JORC
compliant resource of 280,000 ounces of gold. The objective of the
current programme is to enable the completion of an ore resource
estimate for Komana East in combination with the update of the
resource estimate for Komana West following completion of the current
drilling campaign in June next.
Glencar's first borehole at Komana East was drilled in November 2007
to gain structural information relating to the projected ore zone.This structural information was used in the design of Glencar's first
main phase of drilling at Komana East which comprises holes drilled
on a northwest-southeast axis compared to the east-west axis used by
Randgold in its drilling campaign. This phase, which is continuing,
commenced on 19 January 2008 and comprises to date of 16 holes
totaling 1,941 metres of reverse circulation drilling and 147 metres
of diamond drilling.
Twelve of the holes were drilled along the projected shear zone in
four fencelines. One additional hole (KERC137) was drilled between
fencelines. The remaining three holes were drilled on a separate
target some 800 metres to the west to test a separate geochemical
anomaly. On each of the four fencelines, one hole intersected the
mineralized structure, with consistently good gold grades over
significant widths.
The northernmost fenceline included the earlier hole KEDD126,
reported in January 2008, which intersected 8 metres at 3.92 grams/
tonne between 102 and 110 metres downhole depth.
The second fenceline, 250 metres to the south, contained hole KERC138
which showed the following intersections: 2 metres at 2.41
grams/tonne between 55 and 57 metres downhole; 15 metres at 1.86
grams/tonne between 72 and 87 metres downhole and 22 metres at 2.81
grams/tonne between 94 and 116 metres downhole depth. On this
fenceline, another hole, KWRC345, was drilled from the west side of
the projected structure to an azimuth precisely opposite that of
hole KERC138, i.e. 135 degrees, and it confirmed our geologists'
initial interpretation of a sub vertical ore zone. This hole
intersected the following mineralized intervals; 5 metres at 1.7
grams /tonne between 37 and 42 metres downhole; 4 metres at 4.95
grams/tonne between 49 and 53 metres downhole; 2 metres at 2.66
grams/tonne between 57 and 59 metres downhole; 6 metres at 5.51
grams/tonne between 62 and 68 metres downhole and 20 metres at 4.36
grams/tonne between 75 and 95 metres downhole.
The third fenceline, 200 metres further south, contained borehole
KWRC140, which intersected the mineralized structure over 12 metres
grading 2.45 grams/tonne between 112 and 124 metres downhole depth.
The fourth fenceline, 600 metres further south, included borehole
KWRC142 which intersected 19 metres at 4.92 grams/tonne between 42
and 61 metres downhole depth.
The single borehole KERC137 did not encounter significant
mineralization and further drilling at this location is planned to
test whether the hole actually penetrated through the main shear
zone.
The results obtained to date are particularly encouraging. We have
intersected consistent ore grade gold mineralization over a one
kilometre strike length and the mineralized zone is open along strike
in both directions and at depth.
We are continuing to drill along the southerly strike continuation of
the mineralized zone on fencelines 100m apart. Geological logging of
holes drilled in the past week suggests we have intersected the
mineralized structure on our next stepout fenceline, a further 100
metres to the south of those boreholes reported above.
The mineralization is contained within a brecciated, silicious
metasediment. The grades of gold seen in the mineralised zone at
Komana East are consistent and average at in excess of 3
grams/tonne. Details of the assays received for the main mineralized
intervals are given in the table below and details of the hole
locations will be published shortly on the Company's website at
www.glencarmining.ieThis is a very exciting development in Glencar's exploration of the
general Yanfolila/Sankarani region. The consistent tenor of the
mineralization encountered to date suggests a strongly mineralised
system persistent over the strike length so far drilled. The
mineralised zone seems to be particularly strong at the southern end
of the currently drilled area. The area currently being drilled
falls along the main Sankarani Shear Zone, a major, regional shear
structure which extends for a further 20 kilometres to the south
within Glencar's Komana licence.
At Komana West, drilling has continued aimed at adding to the
resource statement for that deposit. In addition we continue to
receive exploration drilling results from the Company's exploration
licence over the neighbouring Solona area. While the current assay
reporting times are still significantly longer that those achieved
during previous field seasons we anticipate having sufficient data to
be in a position to report an update on Komana West and Solona drill
programmes within the next four weeks.
Hugh McCullough, EurGeol., PGeo, Managing Director of Glencar, is a
member of the Institute of Geologists of Ireland. He is a qualified
person as defined in the Guidance Note for Mining, Oil and Gas
Companies, March 2006, of the London Stock Exchange. He has reviewed
and approved the technical information contained in this
announcement.
+-------------------------------------------------------------------+
| Fenceline | Hole | From | To | Width | Grade |
| | | m | m | m | g/t |
|--------------+-------------+---------+--------+---------+---------|
| 1 | KEDD126 | 102 | 110 | 8 | 3.92 |
|--------------+-------------+---------+--------+---------+---------|
| 1 | KEDD126 | 116 | 118 | 2 | 2.01 |
|--------------+-------------+---------+--------+---------+---------|
| 2 | KERC138 | 55 | 57 | 2 | 2.41 |
|--------------+-------------+---------+--------+---------+---------|
| 2 | KERC138 | 72 | 87 | 15 | 1.86 |
|--------------+-------------+---------+--------+---------+---------|
| 2 | KERC138 | 94 | 116 | 22 | 2.81 |
|--------------+-------------+---------+--------+---------+---------|
| 2 | KEDD344* | 54 | 61 | 7 | 1.15 |
|--------------+-------------+---------+--------+---------+---------|
| 2 | KEDD344* | 68 | 76 | 8 | 0.71 |
|--------------+-------------+---------+--------+---------+---------|
| 2 | KEDD345* | 37 | 42 | 5 | 1.70 |
|--------------+-------------+---------+--------+---------+---------|
| 2 | KEDD345* | 49 | 53 | 4 | 4.95 |
|--------------+-------------+---------+--------+---------+---------|
| 2 | KEDD345* | 57 | 59 | 2 | 2.66 |
|--------------+-------------+---------+--------+---------+---------|
| 2 | KEDD345* | 62 | 68 | 6 | 5.51 |
|--------------+-------------+---------+--------+---------+---------|
| 2 | KEDD345* | 75 | 95 | 20 | 4.36 |
|--------------+-------------+---------+--------+---------+---------|
| 3 | KERC140 | 112 | 124 | 12 | 2.45 |
|--------------+-------------+---------+--------+---------+---------|
| 4 | KERC142 | 42 | 61 | 19 | 4.92 |
|--------------+-------------+---------+--------+---------+---------|
| 4 | KERC143* | 20 | 22 | 2 | 4.85 |
|--------------+-------------+---------+--------+---------+---------|
| - | KERC137 | 39 | 44 | 5 | 0.75 |
|--------------+-------------+---------+--------+---------+---------|
| - | KERC137 | 57 | 62 | 5 | 0.81 |
|--------------+-------------+---------+--------+---------+---------|
| - | KERC137 | 67 | 68 | 1 | 1.30 |
|--------------+-------------+---------+--------+---------+---------|
| - | KERC145 | 6 | 7 | 1 | 1.26 |
|-------------------------------------------------------------------|
| The following drillholes did not intersect significant grades |
| above 0.5g/t: |
| |
| KERC135, KERC136, KERC139*, KERC141, KERC144*, KERC146*, |
| KERC147* |
| |
| * Holes marked with an asterisk have some assay data outstanding. |
| |
+-------------------------------------------------------------------+

[bongo bwana] 25/3/2008 13:32

I wouldnt be very surprised to see the residual drilling resuts to be included in GEX's Annual Report which could be circulated to shareholders within 3 or 4 weeks. That said an RNS detailing the Annual Results/Report would issue sooner.

Plenty to look forward to IMHO.

I understand from a reliable source that producers of goods in China have begun to demand payment in €'s rather than US $'s. This could be the start of something really big within world currency markets and affect the value of the US $ very substantially. Gold remaining one of the increasingly few reliable "stores of value".

[bartender18] 25/3/2008 01:15

1waving

Thank you for the info

[1waving] 24/3/2008 16:51

From Gold Fields latest quarterly report to Dec 07 : --

At the 25 per cent owned Sankarani project in south-western Mali,
operated by partner Glencar Mining plc (AIM: "GEX"), an exploration
programme including litho-geochemical sampling by means of air core
drilling, an airborne geophysical survey and over 19,000 metres of
RAB drilling has been planned which, upon completion, should bring
Gold Fields' share in the project to 51 per cent.

GF website also states that follow up RC drilling took place at Kabaya South in late 07.

[1waving] 24/3/2008 16:10

BT18, accounts were at the end of May last year, listed companies have 6 months from year end to publish accounts.

The airborne survey itself will take some time, have seen one release saying 50metre spacings and another saying 100 metre spacing. At 50 metre spacing I estimate there are 5,000 line kilometres to be flown just over the Komana license area, the aircraft will be flying at low speed. There is then the data processing and analysis to be done. they started over 2 months ago, hope they are processing and analysing on each license area as it is completed but can't be sure it will be done that way.

There are the drill results for 22 holes oustanding from December that I would expect news on very soon. Also looking for an update on the Gold Fields JV. It may be we will get an overall exploration update. There should have been a lot of drilling done on Komana and Solona since the last update.

[bartender18] 24/3/2008 15:50

Its been almost two months since the last update, some test results must be due(the arial ones), also the full year accounts,dont they have to be released by three months from year end.Anyone care to guess what we might see.?

[1waving] 19/3/2008 11:35

frizzers article in Moneyweek.

[1waving] 18/3/2008 22:34

Minesite artcle

March 18, 2008

Eat Or Be Eaten In The Mining Sector As M&A Activity Reaches New Records



extract

Underpinning this trend is the quest for world scale, resource acquisition, and resource diversification. High commodity prices and optimism about the industry's long-term prospects for growth and profitability, in the context of new and sustained demand from Asia outstripping fluctuations in western demand, means that companies are embarking on ambitious long-term growth strategies. Looking ahead, economic slowdown in the US, continuing financial market uncertainty, and fears of actual recession will inevitably cast a cloud of uncertainty over the immediate future. However, while these factors tending to instability are likely to deliver a bumpier deal-making ride, the fundamentals for mergers and acquisitions activity in mining remain strong. Indeed, 2008 looks set to be a landmark - if not a record - deal year for the industry.

Another article extract.
March 17, 2008

The US Gets The Blues As Market Screens Turn Red, But China's In The Pink And Metals Are In The Black

By Rob Davies

Commodity bulls no doubt have certain targets in mind which they will use to signal their own vindication. Gold going through $1,000 an ounce, the dollar falling to parity with the Swiss franc and the failure of a US investment bank are probably three of them. Tin passing US$20,000 a tonne probably isn't, but tin will nonetheless have a bigger impact on inflation than gold because more of it is used in industry. Add to those a US$200 billion liquidity injection by the US Federal Reserve and it starts to look like heaven for the commodity bulls, and especially the gold bulls. How much better can it get?




.

[bongo bwana] 17/3/2008 18:04

Guys, just a blast from the past in relation to the recent postings about projects for the price of gold if or when the shorters have to redeeem their positions.

At the time when Wassa was up and running producing 8,000 ounces per month and the price of gold was $250/ounce the great white hope at that time was that the gold bullion sales/auctions by central banks/hedge funds would cease and that huge forward buying and shorting positions would correct.

Even the technical position of the demand for gold outstripping supply failed to make the Au price buoyant.

Maybe this time, just maybe, the international scale and scope of the financial crisis in banks will tilt matters in favour of the producers and the likes of GEX on the cusp of realising the value of a truley world class deposit at Komana.

[scaffold] 16/3/2008 08:48

thanks 1waving, sort of news we want, and with gold passing the $1k mark, this week could see a very substantial increase in the value of our GEX holdings.
Which is what we all want, even if it is only on paper.
lol scaffold

[1waving] 15/3/2008 23:30

SGS Analabs Morilla sent results of 16 RC holes drilled in December to NAC.TO who announced those results on 4th March. Glencar's results should follow very soon, probably this week.

[1waving] 15/3/2008 19:40

serp, I tend to read two or three articles on gold/metals each day and always read Jim Sinclairs posts as a matter of course, which are added to through the day. He deals with many areas of markets but does focus on gold with a gold traders report from Dan Norcini each day. There are many issues dealt with each day on Jim's website including emails sent to him and the replies. Have that site in my favourites ----- ----- you will probably pick up his points on 8&9 if you read it regularly.

I trade gold very occasionally, intra day is always with the trend following price rejection from the downside in a bullish trend vice versa for bearish and got to be a good risk reward. Many other factors in there such as pattern recognition, support resistance etc. In a very rare position trade I will use Elliott Wave and other factors similar to day trading. Difficult to explain a whole system in a couple of lines but hope you get the gist.

Jim is very strong in what he says, alarmist - possibly, but a forthright view is of greater value than a wishy washy maybe this, maybe that but don't really know type report which leaves you wondering why you read it.

Analabs must be snowed under with the time it is taking for drill results but shouldn't be too long now.

.

[serpicouk] 15/3/2008 18:19

The tone of that article is a bit alarmist for my taste. Although I'm in agreement with several of the points.

5. No solutions at all? 'TERMINAL'...is he implying complete system failure in the financial markets...I think there are solutions to unwind this mess, but they will have knock on effects that will be painful. Certainly don't see the end-of-days. Is he purporting a return to the gold standard?

8+9. Not sure - What were Jim's observation that have led to this inference?

1waving - with reference to the sb price - do you trade gold as well? If you do may I ask what you current strategy is?

[cestnous] 15/3/2008 16:20

I hope that No. (9) is true! I could make a fortune.

[1waving] 14/3/2008 14:05

Interesting article on the gold price from Jim Sinclair.



and an extract from another article with direct relevance for gex & others

1.Expect currency intervention to slow down the rise of the euro.

2.Intervention has never worked. It will not now. In fact, it will backfire so fast that the effort will be abandoned, making things even worse.

3.Intervention in currency, the dollar, will only provide the capacity for other central banks, oil producers and holders of high risk long US treasury paper to diversify out in huge amounts of decaying dollars at singular prices.

4.I could go through a tome on how intervention works, but accept that any rise in short rates will break the bank immediately. Intervention in the euro/dollar is another practical impossibility except as a bluff.

5.There is no practical solution to today?s TERMINAL problems and that means you are up to your eyeballs in alligators.

6.You must protect yourselves.

7.Gold is going to $1650. In all probability my major error will be in forecasting a price that is much too low for gold.

8.The ratio spread long the major gold producers, short the juniors, is going to kill the math whizzes that think they are in the captain?s seat. The reason is the only value still in precious metals shares lies in the best junior issues these geeks have been hammering.

9.The prayer that a junior with quality assets has is that the illegal short position is enormous.


.

[1waving] 13/3/2008 18:11

Yes it did, I was watching a sb price which just missed it.

Over $1,000 at close tomorrow ?

[serpicouk] 13/3/2008 18:04

Didn't it hit 1000.60? Cue fanfare.

[edited due to poor use of the English language]

[1waving] 13/3/2008 16:44

From a March 13th Cannacord article:--

The shift in market sentiment towards precious metals, and gold in particular, has pushed the share prices of large cap intermediate and senior producers toward all-time highs. But with healthy returns already realized in the bigger names, some investors are looking to smaller cap junior producers and developers for their gold exposure, says Canaccord Adams analyst Wendell Zerb. That's because many of these stocks do not yet reflect the strong move for spot gold prices, which continue to hover below the psychologically significant $1000 per ounce mark.

In Canaccord's Junior Mining Weekly, Mr. Zerb said:

As we have said before, gold producers receive a premium for production growth, exploration upside and superior cost structures among other things. Gold producers are going to be looking to maintain and grow their production portfolios, and junior gold equities are likely to be the source of production growth.

By his estimates, the senior and intermediate gold producers under coverage are trading at an average price/net asset value (P/NAV) multiple of 1.59 times. Junior producers come in at 0.90x, while junior development companies fall in the range of 0.25x to 0.70x.

So while the gold bulls are looking pretty wise these days, the outlook for base metals has deteriorated since they are tied to the global economy. Nonetheless, prices for copper, nickel, lead and zinc have held up, Mr. Zerb noted, while coking coal forecasts are on the rise, iron ore is climbing and crude oil is skyrocketing.

-----------------

Demonstrates how undervalued Glencar is with it's store of value.

Just a couple of pips from $1,000 today.

Maybe $1,000 tomorrow evening.

[1waving] 11/3/2008 17:13

'The price was not disturbed. That is good.'

The Technical analysis is now very positive with daily and weekly indicators such as the RSI, MACD and stochastic having turned up. There are far more indicators than those mentioned that have turned up. Too many to mention.

The fundamentals and technicals are in strong agreement. Now that is good !!