Mining Minerals & Metals Share Discussion Threads

[share_shark] 07/5/2009 08:47

Iwaving thanks for the info. on Elliot Wave. Have retained the link.

Much obliged.

[haydock] 07/5/2009 08:46

lwaving,
Borrowed the Meltdown on the Comex for CEY:
A good line perhaps to the future that one, certainly a change of tack by the markets drivers?

[haydock] 07/5/2009 08:45

lwaving,
Borrowed the Meltdown on the Comex for CEY:
A good line perhaps to the future that one, certainly a change of tack by the markets drivers?

[1waving] 07/5/2009 07:47

From this morning's Gold Fields Quarterly report:--

"At the 51 per cent owned Sankarani joint venture in Mali with Glencar Mining plc (AIM: "GEX"), Gold Fields continues to define and drill high priority targets at the Finguana, Sanioumale, Bada, and Fie River tenement blocks. At Bada, bed rock sampling delineated a three kilometre long gold in soil anomaly that is ready for initial drilling. The anomaly coincides with NE-SW shear zone mapped out from the magnetic image. At Bokoro, soil sampling has outlined three gold in soil anomalies coinciding with the NE continuation of the mineralised shear zone intersected at Bokoro Main."

Bada and Fie River are new on me. The 3km at Bada looks good.
There looks to have been plenty of targets generated and quite a few drilled from the airborne survey.
Bokoro now also showing good potential with three gold in soil anomaly targets showing.

[1waving] 06/5/2009 14:35

share_shark ---- interesting article from Frizzers but not of real direct relevance to GEX/Gold. There were some very good charts in there.

As far as equity markets and Elliott Wave go I am expecting a corrective A-B-C up which may last to October or possibly the year end and we are currently just in the A part of the corrective wave up. Then it could be hasta la vista.


As far as Elliott Wave and gold are concerned Alf Fields is The Man and he has the track record - these are his numbers. -- enjoy !!!!

" Assuming that the $699 low on 23 October 2008 turns out to be the actual low point of the correction, and that remains to be proven, then we can conclude that we have seen the low point for Major TWO. That will allow us to update my original "back of the envelope" template to much higher levels, as follows:
Major ONE up from $256 to $1,015 (actually 4 times the $255 low);
Major TWO down from $1015 to $699, say $700 (a decline of 31%);
Major THREE up from $700 to $3,500 (a Fibonacci 5 times the $500 low);
Major FOUR down from $3,500 to $2,500 (a 29% decline);
Major FIVE up from $2,500 to $10,000 (also a 4 fold increase, same as ONE)"

We are in the preliminary stages of wave Major THREE up. A sustained break through $1,000 tells you we are on our way to that target.

Link to his full and final article:--

Elliott Wave Gold Update 23
By: Alf Field

[share_shark] 06/5/2009 13:50

The above link in post 4668 is interesting ,in as much, if you look a little further with the help of the internet,what is being achieved concurrently, and the need for gold, out of Africa, gold will be a driving force for these countries economies.

Great for Glencar and especially in Mali.if it can get its act together.

[share_shark] 06/5/2009 13:46

The changing face of India and Africa.

India-Africa Enterprise Set to Boom - by Rajah Munamava



The Delhi Declaration is a political document that covers issues of bilateral, regional and international interest to India and Africa, including common positions on United Nations reforms, climate change, the World Trade Organisation (WTO) and international terrorism, while the India-Africa Framework for Cooperation spells out the agreed areas of cooperation. These include human resources and institutional capacity building, education, science and technology, agricultural productivity and food security, industrial growth including small and medium enterprises and minerals, the development of the health sector and infrastructure development, ICT and the establishment of judicial systems and police and defence establishments under civilian control




Above link for full article.

[1waving] 06/5/2009 13:39

Gold/Silver Manipulation Over in 30 Days?
Posted on May 4, 2009 by Scott Gallup
If you've been a precious metals investor for more than six months you've heard about the rampant price manipulation on COMEX. (COMEX sets the cash price for gold and silver through its daily futures and options trading activity.)

Many of us have been waiting for the illegal manipulation (run primarily by Bear Stearns until March 2008, then JPMorgan Chase since then) to end for over two years.

Adrian Douglas thinks it may be over in as little as 30 days.

It just recently came to my attention from two different confidential sources that JPMorgan and Goldman Sachs have been buying large amounts of Calls in gold and silver. This made me put on my gumshoes and take a serious poke around the COMEX option open interest once again."

Full Article:--


June expiry will be interesting. December also heavily backed to the long side.

[bongo bwana] 06/5/2009 10:15

I have a disproportionate level of my portfolio in GEX at the moment.

For those who are currently admirers of GEX and their stated business model- a question.

Have you any concerns about the business model that GEX appear to be evolving into in Mali? It strikes me that while its unconventional for an exploration company it appears to have the potential for long term significant benefits for long term GEX holders - by way of apportioned income derived from operating mines.

The mines in question could be Komana, Sankarani and possibly Solona in Mali. And the additional ones in Uganda and Ghana. GEX would not be the operator of any which is not a positive. The evolving model suggests that GEX shareholders can only expect windfall profits or spikes in the share price similar to other exploration company's when their drilling programmes encounter richly mineralised gold bearing zones.

If the aforementioned Mines were all operating profitably then its possible that dividend income would be available for distribution to GEX holders rather than all apportioned profits being deployed for the purpose of further exploration.

I would be very interested in your views on this area and its one that I intend addressing to HMc at the social side of the AGM. Im sure HMc has thought this one through as we would have reasonably similar deadlines for outperformance by the GEX share price

[jester jim] 06/5/2009 10:03

just picked some up on the back of the Goldfields deal. One to put away for a while

[1waving] 06/5/2009 08:00

Gold Fields quarterly report tomorrow.

[bongo bwana] 06/5/2009 07:55

Id expect the Annual Report RNS to be issued within the coming days.

[bongo bwana] 30/4/2009 14:28

Einer,

Gott in Himmell........

Its about a fortnight away and maybe sooner - much sooner.

[eintracht] 30/4/2009 10:32

Define "soon" please.

[bongo bwana] 30/4/2009 10:14

Einer,

Annual Report expected soon and that should bring us right up to date with drilling results for work undertaken.

[eintracht] 30/4/2009 09:56

Have this company gone into hibernation ? are we due any news about anything in the near future ? Deka - any views mate ?

[stenick] 23/4/2009 20:23

Well aint they the lucky ones then.......lol.........

[seagreen] 23/4/2009 14:11

Glencar Mining
Glencar is a Dublin-based exploration company with a focus on exploration and development of gold deposits in Africa. Glencar has found major gold deposits in Ghana, West Africa in both the 1980s and in the 1990s. The company has operations in Mali and Ghana in West Africa and in Uganda in East Africa.



Thursday, April 23, 2009

Glencar Mining's partnership with Gold Fields bodes well for future
by Harry Norman

Mali, in West Africa, has long been regarded as an excellent location for gold explorers and miners. A modernized mining code enacted in 1991, combined with attractive fiscal terms for gold producers, have propelled the country into the top three gold producers in Africa - behind South Africa and Ghana. The attractive fiscal terms and excellent prospectivity of this small African nation haven't been lost on Glencar Mining (AIM: GEX) who entered into an option to acquire the Sankarani Project in 2003.

Sankarani is a classic example of how a project discarded by a mining major can present a lucrative opportunity for a junior company. Randgold Resources (LSE: RRS, Nasdaq: GOLD), which was recently promoted to the FTSE 100, had previously explored Sankarani but it didn't fit with its priorities, as reserves at its Morila mine project in Mali exceeded 2 million ounces and were growing apace. This allowed Glencar to jump into the fray, acquiring a significant project with an extensive exploration database and a small resource of 280,000 ounces of gold at Komana. Glencar set to work immediately, and within 12 months, reported promising rock chip and soil sampling assays, including 32.4 grams per tonne ('gpt') at Farasaba.

In August 2005, confirmed it was in advanced talks with Gold Fields Limited (NYSE: GFI) for a 65% earn-in interest on the Farasaba, Sanioumale and Bokoro concessions – about 750 square kilometres of the Sankarani Project. Glencar excluded the entire 250 square kilometres Komana concession (which had been part of the original Sankarani Project) from this deal. At this time, Glencar also acquired the 250 square kilometres Solona concession.

It soon became clear why Glencar had completed the acquisition of Sankarani and why Gold Fields' interest was aroused. A few weeks later Glencar reported bonanza gold grades, including 20 metres at 55.2 gpt gold from drilling on the Komana concession. The Komana concession became a high priority project for Glencar, and by October 2008 the company reported an updated resource of 1.25 million ounces of gold at the Komana East and Komana West targets. This resource was based on an average grade of 1.6 gpt gold, and represented an increase of 139% in just twelve months.

SRK Consultants concluded that by using selective mining techniques, the mined grade of the ore could be held at 2 grams/tonne or higher with the loss of only 10% of the metal content - and all within 150 metres of the surface making it amenable to open pit mining.

Komana East still remains open in all directions, so it is plausible that the resource could be increased with further drilling, which is expected to recommence shortly. Grades at Komana West are quite high, so a later underground operation is conceivable, starting from the floor of an open pit mine. Further drilling at Komana West will be aimed at proving the down-dip and down-plunge extensions of high-grade shoots. Drilling is also planned at nine more prospective targets along the 23 kilometres of the "Sankarani Shear Zone" (which, despite its name, is part of the Komana licence).

Gold Fields now owns 51% of the Sankarani Joint Venture Project, having met the requirement of spending US$5 million on exploration by the end of 2008. Gold Fields has now spent approximately US$6 million on exploration at Sankarani. Gold Fields' expenditure identified six target areas for drilling, and it now has the option to earn 65% by spending up to a total of US$12 million (including the US$6 million already spent) on exploration and, if warranted, a feasibility study before the end of June 2011. On completion of a positive feasibility study, Glencar may require Gold Fields to provide Glencar's share of the finance needed to build a mine with payback from production, at LIBOR plus 2%, from production cash flow, andGlencar will give a further 5% interest to Gold Fields.

The relationship that Glencar and Gold Fields have built over the Sankarani Joint Venture Project is clearly working well for both parties. Just a few weeks ago, the nimble gold exploration junior announced another joint venture with Gold Fields, this time for the Komana concession. Gold Fields has agreed to take a 15% equity stake in Glencar for US$3.2 million at a 30% premium to current market price - subject to approval by Glencar's shareholders. Gold Fields also agreed to pay four annual payments of US$1.25m (totalling US$5 million) to fund Glencar's ongoing exploration programmes on the adjacent Solona licence and elsewhere. As part of this arrangement, Glencar has granted Gold Fields a right of first refusal on Solona should Glencar wish to bring in a partner at any stage. Glencar has also committed to spend US$1.5 on the Solona concession within two years, providing results obtained there warrant further expenditures. Results from the drilling at Solona, in May 2008, showed significant gold mineralization intersected at three targets, including 4 metres at 155 gpt gold at Badogo Malikila.

In total, Gold Fields committed to spending up to US$32 million to earn up to 65% interest in the Komana concession within five years; Gold Fields can, through a four year staged earn-in arrangement, acquire a 60% interest in the project. On completion of this, Gold Fields will have the right, but not the obligation, to earn another 5% by funding further exploration and/or feasibility study programmes, by spending a further US$12 million.

If a feasibility study is not complete at this point, Gold Fields and Glencar may fund further expenditures on a 65/35 basis. On completion of a feasibility study, Glencar has the right to participate in the development of a mine, the size of its participation being determined by its remaining interest. Gold Fields may also elect to fund this participation with payback coming from production cash flow at LIBOR, plus 5%.

Hugh McCullough, Chief Executive of Glencar, told Proactive that Gold Fields has abandoned "the rule of five" in favour of "the rule of two"...

Gold Fields previously considered a resource of five million ounces of gold to be their minimum target size, whereas now they regard a resource of two million ounces as the minimum. This implies that it is plausible to Gold Fields that a resource of 3 million ounces could be developed for the Sankarani and/or Komana joint ventures, given that Gold Fields has a two-thirds stake in each of these joint ventures, and Glencar has a one third stake.

Glencar also has prospects in Ghana and Uganda, which are currently being offered for joint venturing as Glencar has decided to become a Birimian Trend specialist. The Birimian is a geological zone that is currently the fastest growing gold exploration and production area in the world. It extends through Ghana, the Cote D'Ivoire, Guinea, Mali, Senegal, and Burkina Faso. Comparisons have been made between the Birimian and the Carlin Trend in Nevada; at Carlin, about one third of its known two hundred million ounces of gold resources have been mined. There are over forty producing gold mines along the Carlin trend, but only twenty-five mines are in production on the Birimian.

Having developed a technical model of the Komana deposit, Glencar is on the hunt along the Birimian for more "Komana look-alikes".

Given market conditions, we can understand why Glencar has done a second deal with Gold Fields for a carried interest in future production, rather than engage in the uncertain enterprise of attempting to raise US$20 million to heroically take Komana into production alone. By sticking with the knitting and building on its relationship with Gold Fields, Glencar has secured financial stability for a number of years, and can settle down and focus on the possibility of doing some very serious exploration.

[1waving] 23/4/2009 11:41

Positive volume coming in here again.

[share_shark] 23/4/2009 08:13

Right......I wont have to walk the plank then!






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STORYVIDEOGold Advances for a Second Day After IMF Forecasts Contraction
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By Glenys Sim

April 23 (Bloomberg) -- Gold gained for a second day in Asia as investors sought to preserve their wealth after the International Monetary Fund projected that the global economy will contract this year.

Bullion also climbed after U.S. stocks reversed a rally on concern government stress tests on banks will undermine confidence, and Morgan Stanley posted a wider-than-estimated loss. The IMF forecast a 1.3 percent drop in the world economy, compared with the 0.5 percent expansion estimated in January.

"If uncertainties around the global economy persist, gold may trade back above $900," Chen Yonglin, an analyst at Citic Securities Co., said from Shanghai. "Gold's fortunes will continue to be tied to the equities market for now."

Bullion for immediate delivery rose as much as 0.6 percent to $894.80 an ounce, and traded at $894.10 at 9:03 a.m. in Singapore, extending yesterday's 0.7 percent gain. The precious metal last closed at more than $900 on April 2.

IMF Chief Economist Olivier Blanchard said at a briefing in Washington that while a recovery will start early next year, a "return to normal" will take much longer. "This is not the time for complacency," Blanchard said in a statement that accompanied the fund's semi-annual World Economic Outlook.

Investment in the SPDR Gold Trust, the biggest exchange- traded fund backed by bullion, stood unchanged for a third day at 1,105.98 metric tons yesterday.

Physical Demand

Gold also received support from an increase in physical demand, said Chen, referring to purchases intended for use, such as jewelry, rather than investment.

Gold imports by India, the largest consumer, may more than double this month from a year ago as a drop in prices revives demand before the nation's biggest bullion festival next week, according to the Bombay Bullion Association.

Purchases may reach 50 metric tons from about 25 tons last year, said Harmesh Arora, vice president of the association. About 10 tons has been imported since April 1, Arora estimated on April 21.

Among other precious metals for immediate delivery, silver rose 1.6 percent to $12.50 an ounce, platinum fell 0.6 percent to $1,167 an ounce, and palladium was unchanged at $232.50 an ounce.