Mining Minerals & Metals Share Discussion Threads

[share_shark] 02/4/2009 13:40

He does'nt. ever remember anything .

[bongo bwana] 01/4/2009 22:23

Simple - I told them about the gold fields in Ghana, Sankarani and Komana many many moons ago. They are still busy there - mining gold for their favourite son in law.

[spaceparallax] 01/4/2009 15:55

McBwana,

You must be a glutton for punishment - one wife's enough trouble for me!

[bongo bwana] 01/4/2009 13:28

GEX is a whelp and Im not sure if its a greyhound or a poodle whelp at the moment!

There are times when the children are hungry I consider adding it to the pot, as a tasty morsel but my 18th wife Gertrude (the former wife of Count Hans Van Leer )is much better at the haute cuisine, than I.

[spaceparallax] 01/4/2009 12:06

Why would you want to offload?

[mad celt] 01/4/2009 11:27

City very unimpressed

To offload in any volume this dog at present is getting a bid of just 3.5p

[bongo bwana] 01/4/2009 10:11

I hope Im not been too OT Boorish!

[alibongo612] 01/4/2009 10:04

Does that mean he was shot.

[haydock] 31/3/2009 20:23

It is then, as we concluded this morning a case of : Africa is Hugh M's oyster.

[bongo bwana] 31/3/2009 19:35

Is it safe to venture out in the mid day sun???

Great report 1W and thanks.

[stenick] 31/3/2009 17:57

Thanks 1waving,know we all know what is going on, much appreiciated.

[share_shark] 31/3/2009 16:40

Yep, what he told me,on the phone, when he was down in Mali. Well done Hugh.

[1waving] 31/3/2009 16:38

Key Quote:--

""Actually", says Hugh, "it's a good deal for both of us. It keeps us funded, and we know that Komana is going to be pushed through on a fast track basis"."

How fast is fast -- We were told that Gold fields may start drilling Komana before the full JV is signed, maybe in the next couple of weeks, so that shows good intent to get moving.

[1waving] 31/3/2009 16:32

Out today:--

GEX (4.38p) From Minesite:-

March 31, 2009

Glencar Powers Ahead On The Strength Of Its Long-Standing Relationship With Goldfields.

By Alastair Ford

Is GLENCAR MINING becoming Goldfields' exploration arm in Mali? "Not really", says Hugh McCullough, Glencar's chief executive, "but we do have a very good relationship with them and our African views do converge". The question is pertinent because Glencar has just secured funding to the tune of a possible US$40 million from Goldfields for a stake in its Komana gold project in Mali. Goldfields is already an old friend, having spent US$5.5 million earning into some of Glencar's other projects in Mali. Komana was always the prize, though. Indeed, back in the day, when Hugh McCullough was looking for funding for this incarnation of Glencar, Goldfields was originally offered first dibs not only on the assets that it subsequently went into joint venture with Glencar on, but also on Komana. This potential early tie-in got some way down the tracks before the unwanted attentions of Harmony distracted Goldfields and Glencar eventually went its own way.

By the time Goldfields came round for a second look Hugh was in a slightly different position. He'd raised £2 million in the markets on the strength of the potential for Komana, and wasn't inclined to dilute his new friends on the say-so of Goldfields. So Komana stayed fully under the control of Glencar. Goldfields were, however, invited to take a look at some of the other Mali gold assets in the Glencar portfolio, which it duly decided it liked and signed a deal on. "Goldfields is very keen on Mali", says Hugh. And why wouldn't it be? The country that hosts the Morila, Syama and Loulo mines is fast becoming a magnet for disciples of "nearology". There are projects a-plenty springing up on the Birmian Greenstone belt that hosts these famous gold producing assets, not the least of which is Glencar's Komana project, which actually comprises two neighbouring deposits, Komana East and Komana West. Between the two of them they host a combined 1.25 million ounces and counting.

That's no mean resource, but surely not enough to whet the appetites of a relative behemoth like Goldfields? Actually, argues Hugh, these days it's quite enough. "The strong gold price helps Goldfields push through a deal like this", he explains. "It used to be that the major gold companies said 'We're not going to get out of bed for less than a five million ounce deposit'. But all the five million ounce deposits have been found. Or at least the easy ones have. Goldfields has now said the rule of fives is the rule of twos". And not only that, but it seems that, with Komana showing some way less than two million ounces as we speak today, Goldfields is interested in potential ounces too, not only those that have been officially booked. But, if Goldfields shares Hugh's view that Komana "could go much more than" the current 1.25 million, then perhaps it's got itself a bargain.

"Actually", says Hugh, "it's a good deal for both of us. It keeps us funded, and we know that Komana is going to be pushed through on a fast track basis". The two aspects to that do attractions for Glencar. For one thing Goldfields is spreading the money around: up to US$32 million will go directly on expenditure on Komana, in exchange for a 65 per cent interest, but US$3.2 million will come into Glencar directly in the form of equity funding, while a further US$1.25 million per year over the next four years is due to come into Glencar's coffers as a fee for managing an exploration programme on the company's Solona licence. All those US dollars guarantee Glencar a certain independence of movement over the next few years, while Goldfields gets down to work at Komana.

And with the Komana box ticked such that Glencar ought to be free carried into production, the company's focus now moves on to less advanced exploration properties. Some of these Goldfields is involved in, and on some of them Glencar is going it alone for now – hence Hugh's reluctance to describe his company as Goldfields' exploration arm. The new money, says Hugh, is "sufficient cash to do a decent exploration programme over the next three or four years". Solona is where the next excitement is likely to come from, he adds, but if the work there suddenly comes up disappointing, Glencar will still be due its annual US$1.25 million exploration fee, and is free to spend it anywhere it likes. In that eventuality, you'd have to bet it'd go into the Birmian Greenstone belt in Mali somewhere. But the precise nature of what happens next is now an exciting unknown, as Glencar can, if it likes, spread its wings quite widely.

[share_shark] 31/3/2009 16:23

Oh he is much too canny for that but African, yes , we heard of his trips there too. I think that is where he met HughMc, if I remember correctly.