Mining Minerals & Metals Share Discussion Threads

[stenick] 26/3/2008 12:36

Yes Space. They ought to get me doing the JORC'S i'll soon sought it out.

[spaceparallax] 26/3/2008 12:31

Stenick,

It must also be borne in mind that although the g/te value is modest, there's one hell of a volume of it and considered to be easily worked i.e. low resultant production costs.

[serpicouk] 26/3/2008 12:29

Not absorbed the RNS yet but suspect no reason to expect untenable costs per oz. I believe mines run by majors in that area - south/west Mali - are currently running at costs of around $330/oz at present. To illustrate the cost inflation some of these mines were operating sub $100/oz 5+ years ago.

Right - need to take a closer look at that RNS.

[pecker1] 26/3/2008 11:56

robbi,

Indeed! I suppose it will take some time for people to cotton on to the significance. Owing to the location - good host country but little infrastructure - you probably need at least a 2 million oz resource to get the bigger boys interested. Today is a major step towards this figure - no wonder GEX are excited.

My point is that say a 500,000 oz resource ( measured and indicated) sounds good and could be valued at $X per oz in ground but, in reality, it's worthless if the development and mining costs are simply too high to make extraction economically viable. It may be OK at $1,500 gold but we are not there yet.

[haydock] 26/3/2008 11:49

I got blocked on another buy this morning, could not get the price, then read the RNS.
The rest will be history, a change of mind, so far so good, but long term top up anyway.

[haydock] 26/3/2008 11:22

Thanks 1waving, thats the terms I was searching for.
I have the feeling though that K. East may be one very long pearl, as it sounds a very consistent lode.

It will be interesting if they can produce some mapping & plans like Centamin,I will be watching the web-site.
I think that part of the reason for the success of CEY is newsflow, They can now add ounces every report & update the maps.
An excellant example for GEX to follow eventually,although it's wishful thinking regarding the sheer scale.

[stenick] 26/3/2008 10:48

Thanx 1waving sounds good to me now.

[1waving] 26/3/2008 10:35

Stenick, you have to look at grades within the context of the whole deposit/s.

Within the context of the Komana area this is very good, within the context of just Komana East this is also very good.

From memory the Komana West resource estimate is based on an average grade of about 1.5 g/t, although I would expect that grade to increase with further drilling at KW. This should put it into context for you.

Haydock, if you are referring to the string of pearls/series of strikes in a North/South alignment down the West side of Komana, yes this still stands. this is augmented by a greater NNE to SSW trend running through Sanioumale, Komana and Farasaba. This excellent strike at Komana East adds to that.

We have a very major resource building up at Komana which will attract major players !!!!

[stenick] 26/3/2008 10:08

Sorry I have to ask this but is 3+ grammes per tonne good? because it sounds so small.

[spaceparallax] 26/3/2008 10:04

Our normally reserved HMcC dared to use the word exciting in his report! Things are really looking up.

[keevo] 26/3/2008 09:50

Glencar has announced ore grade mineralisation in the Komana East area on its
Komana concession in Mali, West Africa. So far, mineralisation is found along a 1-
kilometre length which is still open at both ends and also at depth. Gold is found
consistently along the whole length over a width up to 20 metres. The grade is
consistently over 3 grammes per tonne. So far, drilling consists of 16 holes totalling
2,088 metres. Komana East is located 7 kilometres away from Komana West,
where former drilling by Kenmare established 520,000 ounces of gold in the
resource category. The important aspect of today's announcement is that it opens
up a second area of substantial gold mineralisation that could easily be included in
any subsequent commercial development. Having a centralised processing plant is
a very common feature in the industry, and the distances involved in the Komana
area are well within the normal parameters of such developments. At the same
time, there is substantial extra potential at Komana East with evidence that gold
mineralisation is strengthening to the south. The current drilling location is just part
of a 20-kilometre prospective structure which falls within Glencar's licence area.
Today's announcement is excellent news for shareholders.

[haydock] 26/3/2008 09:39

The consistent tenor of the
mineralization encountered to date suggests a strongly mineralised
system persistent over the strike length so far drilled.

This is as ever carefully phrased,but what it hints at is that the vein does not mess about & it is going somewhere, since it is open in all directions.
I wonder if the small pools of gold thoery, stepping stones has changed on this site?

Notice that the good news today will soon be followed in about a month by more news, from Komana west & Solana.
This will provide positive & more frequent newsflow.

[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.