Thursday, 1 March 2012

West African Exploration

I Link here as part of this blog's series on the Regional Exploration Page

The African goldfields see the ugly face of gold mining; artisanal pits, dangerous conditions and processes that kill.
I would only be happy investing in companies who aim to bring modern mining to these locations.

More Companies & Discussion below

Australian Explorers are heavily represented in this region.
(For UK investors ASX stocks can be held in ISA tax free accounts with the right providers.)

A Discussion Board "Gold Exploration in West Africa" at ADVFN which seems to have limited discussion but a long list and brief overview of the companies involved.
And Charts For Companies - At ADVFN

Africa generally has a mixed reputation with investors, with risks around the rule of law and stability / government overthrow meaning that a profitable company may find post-hoc changes to contracts imposed.

A good interview at the Gold Report with Benoit La Salle of Semafoe. Discusses the importance of excellent relationships between miners and the state and social responsibility. Certainly promotes Semafoe but also references other companies.

Pay attention to the key mining country risk reports issues annually by the Fraser Institute and Behre Dolbear. I linked to these on the blog here.

Recent events in Mali highlight the risks (and Mali was reasonably high up one of those lists)

The key safer countries in West Africa are seen as,
Burkina Faso


Map - This from Castle Peak's Site

Large Producers

  • Newmont
  • Anglo Gold Ashanti
  • Goldfields
  • Kinross - (Ex Red Back properties!)
Junior / Mid Tier Producers
  • Perseus (PRU.TO / PRU.AX)
  • Endeavour (EDV.TO) / Also ASX Listed. (EDV.WT.A Feb 2014 @ $2.50)
    • Active in Ghana, Burkina Faso, Cote D'Ivoire. Now Mali through Avion Acqn
    • Management team ex Merchant Banking model seen as smart.
    • Bought Avion Resources. + Exploration programmes.
    • Website
    • Presentation

  • Golden Star (GSC.TO / GSS)
    • Has routinely disappointed, at some gold price will capitalise ??
    • Low valuation for high production / apparent resources
    • Processing refactory ore using Anglo's Biox technology
  • Noble Mineral (NMG.AX)
    • Website
    • Presentation
    • BGF Securities - bullish note 2011 - stock price well down since. Turnaround ??
    • Deposit / mill potential nr production - but previous company Central African Gold  failed with Bibiani mine previously after buying from Anglo Gold. Chinese stake. Extraordinary Gen Meeting - placing large no.s shares @ 16c

Large Exploration Projects with defined resources
  • Asanko Gold (AKG.TO - (Formerly Keegan (KGN.TO) 
    • - sold down to near cash value @ April 2012
    • PEA / Resources
    • Website
  • PMI Ventures (PMV.v) 
    • - Ex Doug Mcquarrie
    • Defined resources and PEA
  • Azumah Resources (AZM.AX / AZR.TO)
    • Significant Aussie discovery - stake in Castle
    • $50m mcap (Sept-12) - $20m cash / investments
    • Presentation

Junior Exploration of Interest 
See Additional Maps at bottom of sheet

  • Castle Peak Mining (CAP.v)
    • Website
    • Presentation  - On Canaccord 2012 watchlist
    • 225 kmsq
    • Randy Smallwood & Peter Hawley on board of Directors. Plus Daryl Cardey, Darren Lindsay, David Groves, David Mason (Augen)
    • Insiders hold 59% on undiluted shares - April 12 presentation
    • Beijing Donia - 30.5% holding for $5.5m investment
    • Grizal enterprises 14% for $3m
  • Abzu (ABS.v)
    • Website
    • Presentation
    • Ex Red Back concessions
    • Gordon Neal, Jeff Pontius on board - some are wary of Cardero group
    • Darin Wagner on advisory board
    • Management ownership 15% - Institution closely held 68% presentation Feb 2012
  • Asante (ASE.v) 
    • Website
    • Presentation
    • Doug Mcquarrie who had success with PMI Ventures also in Ghana
    • Founder & seed shares issued at much lower levels control majority of the company. March 2012 presentation.
        • Founder - 11.65% @ 1c
        • Seed 1 = 39% @ 5c / Seed 2 = 29% @ 25c
        • IPO = 20% @ 50c

Burkina Faso

From Indigo's website: (the worst colour coding ever?)

Large Producers
  • Newmont - Especially Ashanti belt in Ghana
  • Randgold (entirely Africa)
  • Iamgold - Global (Africa key ex Orezone v1)
  • Semafo
Mid-Tier Producers
  • Endeavour - Acquisitive - See Ghana
  • Avocet (.L)
  • Amara Mining  - formerly Cluff (.L)

Large Exploration Projects - With Defined Resources
  • Volta (VTR.TO) - proposed acquisition by B2 Gold  
  • Orezone (ORE.TO)
  • True Gold Mining (TGM.v) formerly Riverstone (RVS.v) 
    • Merging with Blue Gold (BGX.v) bringing $ and ex Fronteer Gold Management
    • Mark O'Dea
    • PEA, low capex project. May upgrade to 100k oa pa
    • Exploration upside
    • Stake in RoxGold
    • Website
    • Presentation on Merger RVS+BGX

Junior Exploration of Interest
  • Golden Rim (GMR.AX)
  • Carbine Resources (CRB.AX)
  • Predictive Discovery (PDI.AX)
  • Gryphon Minerals (GRY.AX)
  • Orbis Gold (OBS.AX) - Formerly Mt Isa Metals. 2 High grade deposits. Scoping Study Oct-13
  • Middle Island (MDI.AX)
  • Goldrush Resources (GOD.v)
  • Concordia Resources (CCN.v) - restructuring?
  • Savary Gold (SCA.v)
  • Ampella Mining (AMX.AX)
  • West African Resources (WAF.AX) - bid for Channel. Largest AX listed landholder in Burkina.
  • Channel Resources (Offer made by West African) - HRA - Coffin liked this.
  • Roxgold (ROG.v) 
  • Indigo Exploration
  • Goldrush Resources
  • Sarama Resources (SWA.v)
    • Ex Moto & other experienced management. Also in Liberia & Mali. $9m cash Jun-12. Propose funding $12m Sept-12
    • 9% Kinross, Management 30%, Sun Valley 11%
    • Website
    • Presentation

Until recently extremely unstable. May be improving?

The Usual Spreadsheet trackers to follow.

Additional Maps

Castle Peak Mining

Abzu Gold (ABS.v)

Asante Gold (ASE.v)

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