1waving Posted January 11, 2008 Report Share Posted January 11, 2008 I have an interest in Glencar Mining which is purely a gold play and am relatively new to investing in mining explorers and would be interested in how such a company should be valued through the stages of development. Website www.glencarmining.ie Glencar has a project in Ghana and a further two early stage license areas in Uganda which are of little consequence at present. It is their five license areas in Mali which are important. Three of these areas are in a farm in/JV with Gold Fields s.a. with the other two being retained by Glencar. These two are Solona and Komana. It is Komana which has been advanced rapidly and the initial resource estimate came out in October. That recent JORC compliant resource estimate came in at 520,000 oz with SRK Consultants report also stating that due to the sparse drilling within parts of the estimate area, there needed to be further infill drilling which would probably increase the estimate by 200,000 oz. Komana West is also open at depth and along strike to the North and South. Glencar have drilled to the North and South and it looks like the orezone continues several hundred metres to the South. The zone to the South of the estimate area looks to be wider but with lower grades, with potential high grade shoots. The best grade was 733gm/ton over 1 metre. A further 4000m of RC/Diamond drilling to test for extensions at depth and infill in the resource model area and test the areas marginal to the zone has been completed in late 2007 together with 5800m of RAB drilling to test the extensions to the North and South. Drill results are expected within the next few weeks. The Komana East prospect area was drilled originally by a previous license holder (Randgold ) and they estimated a non- JORC compliant resource of 280,000 oz. Further drilling here commences in January. Within the Komana license area, about 9 kilometres South of Komana West and directly South along the hosted shear zone, lies a further three drill ready target areas which will be drilled in the current drilling season which lasts until June. High grade rock chip samples have been taken from this area and there could be very strong potential here. That is just the Komana license area, the further 4 license areas in Western Mali will count as a bonus. Two potentially decent orebodies have been found in the Farasaba and Sanioumale license areas which are in the Joint Venture/farm in deal with Gold Fields s.a. A major airborne magnetic and radiometric survey is due to start on Jan 14th over all five license areas. My questions relate to valuation and cost. Firstly, with what is known how would you value the Komana project and what would be added to that value from what is expected ? How would the additional areas be valued ? Secondly, at Komana West much of the gold is coarse and occurs free as well as in intrusions in the shear zone and is likely the recovery process will be carbon in pulp with the mine being open pit. How much would the recovery process cost per oz in comparison to other methods ? Any other opinions on Glencar would be helpful whether good, bad or indifferent. Link to comment Share on other sites More sharing options...
This topic is now archived and is closed to further replies.