Mining Minerals & Metals Share Discussion Threads

[share_shark] 01/7/2009 09:27

The Chinese whispers on the Mali Licences is the only thing that has made me keep a few shares.

Nothing else.

Thanks I Waving.

[bongo bwana] 01/7/2009 09:27

IMHO GEX is one of those rare shares which on the basis of our current knowledge, one can deposit our share certs in the bottom drawer and forget about them for 3 years, safe in that knowledge, that their value will have appreciated very considerably in the interim.

I really appreciate the fact as a substantial shareholder that pre the Komana deal with GF, GEX was unwilling to buckle under MacQ's strong arm tactics in relation to a rights issue where existing holders would have been diluted by a third. MacQ's were prepared to pay 2.5p per share in a rights and appear to have felt they had a strong hand to play but GF offered in excess of 4.5p a share even though it was they who were in the stronger negotiating position vis a vis their working relationship (and GEX's dependency to a certain degree). IMO the 4.5p + was offered because they have a current estimate of the current and potential value of the Sankarani and Yanfolila projects.

I wonder how long will it take to prove up the 2.5m ounces?

[1waving] 01/7/2009 09:13

The Gold Fields deal de-risks Glencar to the extent that GEX has the cash for 4 years and production coming at Komana in just over 2 years. Whether the Sankarani deposits end up with their own mine and processing plant or feeds into Komana is yet to be determined. Suspect a bit of both will be the case.

It is abundantly clear there are great increases to come in the JORC at Komana and that the Sankarani deposits will add very substantially to overall resources. The main Sankarani shear zone runs for over 40kms through Komana, Bada and Sanioumale with a bundle of deposits known and more to be developed.

That is before adding in Bokoro and Fie deposits to the North and Kabaya South at Farasaba.

Solona will be developed rapidly and could send it's ore to Komana for processing or be a stand alone mine in it's own right. More license/s to come also.

JVs in Ghana and Uganda add further strength and geographical diversity.

No need for raising funds and causing any dilution with a clarity on how and when development to production is going to happen with massive known potential.

All that potential with underlying financial security.
How many gold explorers can come anywhere close to that ?

Rapid progress across all the Mali licenses in the coming drill season will clarify a lot of the potential there with further JORC ounces.

[share_shark] 01/7/2009 08:19

stenick.Glencar probably will for you.

Not for me.

Far better opportunities,
within a two year time scale,elsewhere.

Each man to his own, so to speak.

The market has little stomach for Aim stocks these days, as you may have noticed, so the story has to be an excellent one.

[stenick] 01/7/2009 08:03

Thanks S_S as always your comments are most appreiciated.Why do directors seem to be on the take all the time?.I know £170,000 inc pension payments seems alot but I think its par for the course.With my limited knowledge I thought the Gold Fields deal was a 'cracker', better than some I could mention,but hay ho here we go again.I did think that Glencar had a chance of paying off for me.

[bongo bwana] 01/7/2009 06:52

Thanks for that SS.

Do you know what exactly it was about the deal that caused
JP Morgan to lose faith ?

[share_shark] 30/6/2009 22:14

Of course he is.
Showman extraordinaire.

[willyworm2] 30/6/2009 17:36

.. and the share price will still be 4p......

[bongo bwana] 30/6/2009 16:53

Im on that wavelength 1W.

I have this vision of a number of strands - like those of a harp - been drawn to provide a very pleasant picture for GEX shareholders in 2011/12, maybe earlier.

What are the possibilities?

Revenue streams from Ugandan, Ghana and Komana mines.

Sankarani mine feasibility study completed.

Solona mine feasibility study commissioned/underway.

WE could be realistically taking about dividends at the 2012 AGM.

Anyone buyin or sellin a share in GEX ??????

[1waving] 30/6/2009 16:20

Many options open from a place of financial strength is a good place to be and I think recent events will galvanise Glencar to push ahead.

Think we'll get a few announcements in the 'quiet' season leading up to drilling starting again in October.

[bongo bwana] 30/6/2009 16:03

It seems that the wedge of funds made available to GEX by GF has made a lot of options possible. Im certain that the market will wake up to the GEX story but not before I get the opportunity to add.

[1waving] 30/6/2009 15:57

The license area I would like to see GEX get is the Sindo license area betwen Sanioumale and Solona. Not to be confused with the Sindo target in the South East of the Sanioumale license area. Any decent prospective area adjacent or close to Solona would be a bonus.

[1waving] 30/6/2009 15:12

-- Ghana deal already announced -- Uganda deal imminent from Chairman's statement in the Annual Report, due to complete 4-6 weeks from the report.

[bongo bwana] 30/6/2009 15:05

Just to clarify,

No one (including me) made an enquiry or reference to the prospective Ugandan or Ghanian JV deals.

[bongo bwana] 30/6/2009 14:17

The AGM which commenced at 11.30am was held in the 'Elgin Suite' of the Burlington Hotel, Dublin. Music from nearby music school exams filtered into the Suite without disrupting proceedings.

All the Executive and non executive officers with the exception of William Cummins (apologies received) were present. The atmosphere was cordial but tinged with a degree of tension as one would expect in the circumstances. It emerged during the course of pre commencement meetings that GEX officers found themselves dealing with the MacQ issues at a time when they would have been better deployed advancing shareholders interests in Mali and specifically Solona/Komana. It was clear that the manner of MacQ's move had discomforted them. So, in this circumstance the GEX officers were understandably, not as available to the author as they had been during previous AGM's.

This was the best attended AGM I have been present at since the pre Wassa days – given the media attention to MacQ's strategy it was hardly surprising. The last time GEX found itself facing a contentious issue at the AGM Sean Finlay provided a tour de force performance as Chairman of the meeting and occupied a central position at the front table – curiously this time the Chairman occupied a wide position at the front table.

The Chairman opened the meeting and quickly advised of the RNS text released that morning as it had implications for the conduct of the AGM. This was followed by a statement from Philip O'Quigley who referred to his service for 12 years as a director of the firm which included the sale of Wassa for the banks. He drew attention to the foresight and vision of HMc who had led GEX to the 'exciting portfolio of projects' and the 'really exciting Komana project'. POQ proceeded to advise that had the Komana deal been completed at a time when the market was in a bullish phase it would have been greeted as one of the greatest 'history making' deals ever to have been completed by a junior explorer. The Komana deal was 'hugely beneficial to GEX shareholders'.

The meeting proceeded to deal with the official business of the AGM.

The motions to reappoint Sean Finlay and Kieran Harrington were passed with proxies 2:1 in favour. A representative of MacQ's was present and made contending proposals to the reappointments (in the event of SF and or KH not been renewed) and requested that a poll be held. Subsequently, the Chairman enquired from the MacQ rep. to consider that having regard to the votes in favour of the reappointments did they wish to proceed with the proposal? The rep requested a period of time to consider this and it was granted. Within minutes the mannerly gentleman advised that ' in view of the proxies cast we will forego show of hands'. Other motions dealing with authority to fix remuneration, increase the Authorised share capital, directors authority to issue share capital.

Consideration of Motion No. 6 was suspended as it was considered that it required the holding of an EGM.

The meeting advanced to the CEO's presentation which reflected the content of the Annual Report but also supported the presentation with a considerable amount of technical data on the Sankarani and Yanfolila projects – a lot of which is available on the GEX web site.

HMc advised that GEX currently has 3200 shareholders most of which are based in the UK. Institutions currently hold 45% of the Issued Share Capital. The major holders include Goldfields with 9.1%, MacQ's with 6.9%, CDC [a London based investment firm] with 6.5% and JP Morgan with 4.2%.
GEX currently holds 1,250sq. kilometres under license and this will be added to within a short period of time. Komana West has area of high magnetic intensity possibly 43km in length with 2 sheer structures present. Reference was made to SRK's resource measurement at 1gram cut off = 1.25million at 1.69gm average.
Komana West ad depth is producing extraordinary grades with one drill achieving 733grams/tonne while Komana East contains 1600metres of exciting grades closer to surface.

The CEO displayed slides which presented models of the KW and KE ore zones prepared by SRK "additional drilling completed will add significantly to ounces".
Drilling at Kama has revealed high grades close to surface but its inconsistent while Gomka produced 15m @2.5grams which is very respectable. The CEO invited Kieran Harrington to present the next phase of the presentation which related to Solona which is adjacent to Komana. The Solona license area could be a stand alone project or assimilated into what will be the Komana mine. 9400m RAB drilling completed to date at 3 target areas – RAB is early phase drilling and significant mineralisation has been encountered with 4m at 155g/tonne an example. Spectacular grades have been encountered at each target. Complex geology with cores persistently mineralised and providing chemical/periodic element evidence of the presence of gold. The Solona results are quiet encouraging.


The CEO advised that the deal with Goldfields was not yet finalised but had advanced to the late stages. Readers will be familiar with the details of same and they and the details of the drilling programme results to date on the GEX web site are well worth familiarising ones self with.

5 Licenses are held and more are on the way. Other projects are under consideration – some in Mali and elsewhere in the not too distant future. Detailed reference was made of the excellent relationship GEX has with Central and local government authority's who are aware of GEX's expenditure of €16m to date and its development of key community relationships with 7 village settlements in the area.


On completion of the presentation the CEO invited questions from the floor. The following are the CEO's responses:

Komana, where continuity of the orebody between East and West is not expected may contain 2 pits. It is likely that the processing plant will be located in Komana East but deep drilling at Komana W may reveal added resources and this may alter the decision on the proposed location of the processing plant.

The $32million funding provided by GF is likely to bring project through feasibility study phase.

GF seeking to establish 2.5million ounces.

GF's intention is to provide 100% of $200million development cost [ GF has right to decline putting up in certain circumstances ] leaving GEX with 30% of project. Currently heading to feasibility study by end 2010 and end 2011 commencement of production.


The Sankarani JV is a separate agreement from Komana and Solona and is now managed by GF. When it comes to building a mine there GF will provide and they cannot decline to. GEX will have 30% of producing mine.

GF like our licenses in Mali which will be one of the locations for a restructuring Goldfields Corporation world wide operation.

Good corporate relationships exist between Goldfields and Glencar.


So, why is the price of GEX paper merely at 4.5p? Probably because JP Morgan have been selling and a jaundiced MacQ's cant have helped market sentiment.