Mining Minerals & Metals Share Discussion Threads

[bongo bwana] 01/7/2008 10:06

1Waving - I think we need a detailed map of this particuar locality in Mali. This would help distill further the information on where exactly Gonka is. Is it part of the southern extension of KE (and therefore the Komana license area) or a separate ore grade mineralised zone!

I suspect from my notes that its importance is:

That is an area which has demonstrated exceptional grades albeit from limited drilling to date, and
is the close to the most southern point drilled to date on the KE trend which appears to be 24km in length.

Was anyone else who contributes to this BB present at the AGM?

[1waving] 30/6/2008 16:52

Looks like volume of 397,003 today with just 101,003 of those sells, the rest look like buys. Looks very much like buying volume exceeds sells.

Anyone agree/disagree with those numbers or have any comments.


Note. There was a last minute sell, 100k at 16.29hrs at 8.5p. ( included in figures above )
.

[haydock] 30/6/2008 11:26

Re the price of the junior golds: the shorting controversy, pasted this from CEY bb.

sg31 - 27 Jun'08 - 22:35 - 11136 of 11161


If anyone objects to these OT posts just say so,personally i think some interesting points have been raised and it is Friday night.
Clearsoup,"its the naked bit that roused me" ....if the thought of evil being naked got you roused you need help.LOL
I accept that covered shorting has a place in an efficient market but if its my shares that are being loaned out to shorters I think that I should be asked if I had any objections and if not I should receive part of the fee that the shorter pays.The brokers pocket this themselves and argue that it allows them to reduce charges to clients.This is no different to the banks charging large fees for unauthorised overdrafts to supposedly subsidise current account fees.If there is a cost to provide a service the users of than service should pay not someone else.
I have accounts with Barclays and TDW,barclays admit they loan my stock out for shorting,TDW say they don't.Other than that i am relatively happy with both.I intend to close my Barclays account.
I cannot fault your analysis of naked shorting,it is reprehensible.The situation on the TSX is definately getting out of hand.When institutions are naked shorting their own clients it is essential that the authorities take action.They have failed in their duty to do so therefore it is up to companies and investors to do what they can.Investors on the TSX-V are writing to their companies making them aware of their concerns and asking them to obtain an undertaking from their merchant banks that they won't short their own client when they are raising money.If they wont get such an undertaking from them this fact will be made available to PI's.I don't know if it will do any good but i hope it does.A suprising number of small companies have said they were unaware of the problem.There is a group on St*ckhouse.com dealing with this unsuprisingly it is the Junior Mining Investors Robbed by Canadian Investment Banks group.You may be aware of it but i mention it incase others aren't.

[1waving] 30/6/2008 10:11

SP knocked down on buying only again !!!!!!!!!!!!!!!!!

This also happened twice last week.

The market makers have to be complicit in this market manipulation/shorting.

.

[bongo bwana] 30/6/2008 09:00

Thanks everyone for your kind comments.

That rig for 'us' preoccupied me before the meeting started. My thoughts were that GEX may be making contingencies for their own exploration of a separate find (Gonka????) after a Komana JV has been announced. Clearly the contractually committed rigs would remain occupied in Komana and Solona.

From the explanation provided by the CEO whilst explaining the displayed aeromagnetic results, suggested that after the geologicals had sorted themselves out in S. Mali materials were transported in (by rivers)to form a significant covering over the mineralised orebody - thus altering the magnetic response recorded. In other words, yes, there is considerable promise that the orebody is continous under this aluvial (?) material.

Komana will host a mine. GEX is in a powerful position to extract max. value for its shareholders. There are a number of attractive options.

[robbi123] 30/6/2008 00:49

Oracle - superb update from the AGM. I honestly cant think of a medium/long term play that is better than GEX at these levels. When the market realises its 'subtle' potential, we shall see the levels from a couple of yrs back when the Indepenant commented on "company changing" results:)

mabel - i hope another company of ours also comes into the light!

[bongo bwana] 29/6/2008 22:29

Apologies in advance for spelling errors etc.

Managed to get to the Conrad at 11am and while we awaited the official start time I had a chat with GEX personnel about the drill rigs that will be secured for the next phase of the Yanafolia project. The point was made that GEX was now one of the best customers for the local drill rig providers and GEX would be reasonably confident of securing two for Komana, one for Solona and maybe one for us. This last bit sent a flare off in my head as to its meaning, which I decided not to follow up there and then.

The meeting room was spacious and comfortable, equipped for a multi-media presentation which is the norm for GEX's AGM. The usual collection of young suits, media, family, friends and shareholders. With the exception of William Cummins (who was detained in Canada due to a family illness) the entire board were present as was Yanafolia Project Manager Mr. Lazare Pare.

Chairman Sean Finlay commenced proceedings on time and welcomed those present, particularly Lazare Pare who is astutely guiding the local drilling programmes and called on Chief Executive Hugh Mc Cullough to present his report.

Skilful team work with Kieran Harrington on a laptop allowed Hugh Mc to make a very interesting multi-media presentation during which he advised that GEX has issued 270m shares which are held by 3,200 shareholders of which 67% are UK based. 40% of the Issued Share Capital is currently held by Institutions such as CDC with 7.2%, JP Morgan with 5.8% and Macquerie 7.7% (up from 3.5%).

Mali, with a population of 12 – 13million, is establishing itself as a stable, business friendly gold mining province with a secure title and fiscal regime. The Mali government is paid a royalty from all gold produced. GEX has 5 concessions with a total area of 1,250sq.km. in Southern Mali. During the course of a recent meeting with the Mali Mining Ministry the company was assured of any assistance required in relation to the Yanafolia and Sankarani projects. The projects area is located at border with Guinea and GEX currently retain 65% interest in the Sankarani Project and 95% of the Yanafolia Project – the remaining 5% may be purchased at an appropriate/opportune time. GEX is in the right address. Sankarani needs to be explored properly and it will take serious work to calculate its potential.

Drilling commenced during Dec 2005 at Komana West (KW) where 21,120metres of RC and diamond drilling has been completed. Ore grade mineralization over 1.5km leading to preliminary JORC of 520,000 ounces. It is clear that while KW's potential is with 'very high grade shoots' at depth GEX has requested the lab to prioritise drill results for Komana East (KE) given the now established greater promise of the area. KE is 7 km from KW.

The next section of the CEO's report included a colour coded, layered 3D geological model of the Komana Licence area indicating the established and probable zones of ore grade mineralization. This modelling was made possible by combining the results of drilling to date with the high resolution aeromagnetic aerial survey undertaken mostly at 50metre spacings and from 50m altitude during Jan/Feb 2008. The survey which extended over the 5 license areas (some 100metre spacing were employed) provided results which are proving 'particularly valuable'. 'The aeromagnetic study indicates ore zones with high magnetic intensity with distinct mineralization evident'.

Hugh Mc proceeded to explain the geophysical regime governing the formation of gold deposits sandwiched between metasediments within the Komana license area with KE containing a major shear zone in which GEX had drilled 8,500 metres of RC and diamond drilling. GEX had prolonged their attention to KE 'much longer than anticipated' and finished on 21st June 2008. The drilling revealed 'persistent ore grade mineralization' with 76metres @ 4.8grams per tonne. According to my notes, Hugh actually used the description 'stunning ore' in this context. The contact zone containing the mineralization is structurally controlled and is dipping to the west. Drilling is undertaken in a manner which will intersect the mineralization corridors at right angles. N-S fencelines @ 100metre intervals over 1.6km 'not nearly at an end' Potential for 1.5km at N extension and South. Further drilling to further identify the extent of mineralised corridor is required. It is 'probable that gold is continous in well defined ore zone'. Gonka drilled at the Southern end of this zone 'is very very prospective and mineralised zone continues into area not drilled yet'. The Komana license area contains ' plenty of targets'.

Referring to a displayed photograph indicating a KE core Hugh Mc said it was 'easy to identify the gold bearing zone as it tended to be pink and with pyrite' which almost invariably resulted in excellent gold grades. Hugh Mc explained that the core is orientated so that the direction of the veins can be fixed cutting across the ore zone.

Much more further to the south the well defined Sankarani shear zone 'the key to GEX's future' is 23km in length. It consists of granitic intrusions at depth is the engine for driving the fluids to surface, resulting in salica quartz and gold. These fluids came to rest in cross cutting structures (in broken rock) and so alter the magnetics of rock. Magnetic destruction zones associated with gold ipso facto with 7, 8 or even 9 concentrated ore mineralisation zones – While huge work remains to be done one has to ask 'why wouldn't there be gold?' The evidence to date is 'fairly persuasive' in this regard. Hugh mentioned an area which sounded like 'Finguena' as been 'particularly interesting close to the Southern project area.

Hugh's presentation advanced onto the Solona license area where 9,400 metres of RAB drilling completed. 'A lot more to play for there'. This was followed quickly by reference to the Sankarani Project JV with Goldfields who have to spend up to $4m to secure a 51% interest and an additional $8m to secure a 65%interest. Targets outlined in the aeromagnetic survey have been 'done'. To date 12,573m of RC drilling and in excess of DC 12,000m drilling completed.

Advancing into his summary Hugh advised that overall KW had established a 520,000 ounce resource. GEX has drilled 50,350metres and there is a reasonable expectation that KW resource could be doubled. KE had produced excellent results and the reserve update was expected in September. There was very exciting potential at Gonka with many additional targets.

During the following minutes Hugh Mc demonstrated and advised of GEX's investment of resources and commitment to assisting in social infrastructure and community development projects undertaken in the locality over the past couple of years. This, in my opinion, is one of the great and consistent characteristics of GEX's active involvement in exploration in the African continent.

Hugh Mc advised that assay results due in July would be forwarded to SRK for reserve update in Sept and that metallurgical studies were underway. Hugh added that environmental studies were to be undertaken.

The Chief Executives presentation had commenced at 11.35 and was completed at 12.20. The Chairman expressed the view that the CEO's report 'clearly indicates where GEX is heading' and invited questions from the floor.

QUESTIONS RAISED

1. Taking account of the funds raised during the week does GEX have sufficient
funds for the 2008/09 drilling programme?

The CEO responded that 'the funds position is OK for most of next season. In 2009 GEX will have 4 rigs on Komana property while it had 2 there during 2008. While more funds will be required the additional funds raised at a premium to current share price this week give GEX flexibility'. This weeks fund raising represented a coup for GEX given the current instability in the financial markets.

2. When is production at Komana likely?

The CEO advised emphatically that ' Komana will be mined' and added that 'a lot of drilling is required before a feasibility study would be undertaken at the end of the next drilling season –June/July 2009 – 'say 9 months after September 2009'. Assuming that the feasibility study stacks up then a period during which finance will have to be organised followed by construction which is likely to take a year – so we are looking at late 2010.

3. The nervous person posing the next question mangled his query with verbosity but managed to enquire 'what will be the catalyst for the market to re-rate GEX'?

The CEO, who must have thought he was a dentist trying to pull well rooted
teeth as he awaited that condensate, replied that it was difficult to call that
issue but advised that not all sectors of the market were unaware of GEX's
sound progress and in this context added that GEX could have completed a
far greater fund raising deal but wanted to avoid unnecessary dilution at
current levels.

4. This response prompted the next question which respectfully enquired into
the possibility that GEX would, when next considering its fund raising
options, would have a rights issue which would allow shareholders to
participate at a level significantly below the prevailing market share price ( There was
a general murmur and whisperings in support of this enquiry)

The CEO was non committal but added that all options would be considered.

I had thought of recommending at this point that GEX consider issueing shares
with attached warrants (2 for each Ordinary share at a fixed price) but thought
better of it, for the moment but I will be raising it with GEX and Let me strongly
recommend that other shareholders do likewise in the coming months.
Remember that the next share placing (if indeed there is one) could well be the
last chance for shareholders to participate in GEX's phoenix like flight to El
Dorado. The next share placing could occur before the end of the next drilling
season if a Komana JV is not announced promptly after the JORC update due Id
estimate in October 2009.

5. A shareholder enquired into developments in Ghana and Uganda.

The CEO responded that there are 2 bidders for a JV at Asheba which is
technically a good target. The discussions are well advanced and GEX will do a
deal. The terms of the deal for its Uganda property was good business for
GEX.

6. Perhaps the key question addressing the key issue of GEX's business in Mali.
What was GEX's opinion on the assays reporting?

The CEO promptly responded "not satisfactory" and that GEX's relationship with the lab currently undertaking this essential work will be reviewed for 2008/09 as 'Assays are essential to informing drilling and its GEX's primary job to sort this issue'.

It is my understanding that GEX has commissioned an alternative lab to
undertake some assay work and this has proved satisfactory. It would be
inadvisable from a Quality Assurance perspective to switch labs mid drilling
programme/season but it is clear GEX is very unhappy with the performance
of the lab in producing results. This failure in the commissioned lab is
frustrating the drilling programme to a degree and it will not be permitted to
continue. Excuses that it is a busy lab in a busy gold producing area will no
longer wash.

I wonder was this issue and access to drilling rigs raised with the Mali Mining
Ministry during the recent meeting?


Prior to advancing to the formal business of the meeting the Chairman advised that he and Philip O'Quigley had recently visited Mali where he detected a growing confidence in the country. The road infrastructure to Yanafolia had improved enormously while telecoms were good and improving. Moreover, there was confidence amongst the local people running the Komana Project.

Sean Finlay proceeded to tell a story about a man in a pitch black dark room who gradually comes to the realisation that he is not alone there but in the company of a sizeable animal. The first contact is with the animals trunk and he wonders to himself is this an ant eater and after feeling the animals ear and tail hes puzzled but eventually after much touching he realises the animal is an elephant.


"GEX has an elephant" and is "not sure what way its facing. The modelling of the ore body undertaken by Kieran Harrington provides a sense of direction".

"The larger players in the sector will become increasingly aware of the elephant and GEX will receive an approach".

And on that cheerful note the meeting advanced into the official agenda.

[deka1] 29/6/2008 10:00

sorry wrong board

[bongo bwana] 27/6/2008 22:26

Yes Herm,

Changed circumstances required my retreat from EVERYTHING in recent months.

PCI is but a bitter memory.

While today was rejuvenating meeting the excellent people of GEX Im glad to advise that I have some private Exxon related news for you. Though there is a good chance you know what I have to add already.

Drop me a line please.

[bongo bwana] 27/6/2008 18:42

"Stunning" is a word I picked from a gaggle of women undertaking an MA in Dramatherapy in Maynooth a couple of years ago. It kinda stuck ......and for the life of me I had better not tell. But I think they may en masse have been sufferin from the after effects of the 'Electric Picnic'.

Hugh Mc did not utter the word but I got the distinct impression he felt the word whirling around Komana East. Im sure he will hear that word and other words like 'elephantine' (or similar) when it comes to discussing the value of Komana with acquisitive folk.

The Chairman of the Board recalled a good humoured chat with a mining colleague about a large animal in a dark room. Im sure to recall it later.

[robbi123] 27/6/2008 17:38

Cheers Oracle - look forward to your report:)

[bongo bwana] 27/6/2008 16:53

OK Folks - just back from the rather comfortable Conrad.

Very good attendance at AGM - and I have 8 pages of scribbles to translate into coherency.

GEX has STUNNING potential but you already know this and most of you have known it for a while.

So, please be patient while I recall and construct.

It is not a time to sell.