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Thursday 29 April 2010

Goldstone Resources: So how much is a JORC worth?

Goldstone Resources announced its maiden JORC at Homase last week (click here to view) and Mining Maven gave Exploration Director Hendrik Schloemann the opportunity to expand on the news with a brief Q&A session for investors (click here to view).

The exploration update confirmed a JORC compliant resource totalling 282,608 ounces, though judging from the initial market response this may have been less than some had hoped for. Perhaps, as often happens with speculation in the run up to significant news, the market may have got ahead of itself, and that old adage, “buy on rumour, sell on fact” came in to play. The share price has since recovered which would suggest this was indeed merely a knee jerk reaction.

However, we were rather impressed by the JORC figures. Why were we impressed?

Once again it’s down to the relative value of those ounces, and the fact that a big slug of the resource - 81% - came up in the measured and indicated category – so those ounces in the ground have a significantly greater value than inferred ounces.

For some reason the market currently seems fixated on quantity rather than quality, and this valuation anomaly is certainly not unique to Goldstone Resources. So coming from a value perspective - as we do – what value would we attribute to Homase?

Edison’s recent Gold Report, which provides global average values for Inferred, Indicated and Measured resources and extrapolating their values for the three JORC categories, ($340 per measured ounce, $159 per indicated ounce and $34 per inferred ounce) it would provide the following figures:

Measured – 157,298 ounces @$340 = $53,481,320 
Indicated – 72,531 ounces @$159 = $11,532,429
Inferred - 52,779 ounces @ $34 = $1,794,486

Total - $66,808,235

This is rather crude metric and is used merely to attribute some sort of value on the JORC ounces at Homase. It should also be noted that Goldstone Resources is currently still earning in to the project and subject to successful fulfilment of all the stages in the JV agreement (click here to view) they will eventually achieve an 85% interest.

That said, based on:

- the hugely significant JORC;
- the ability to increase the JORC resource;
- the prospectivity of the region;
- the fact that Homase was previously mined by Anglogold Ashanti and;
- that Goldstone has itself confirmed negotiations with a strategic partner are underway;

we look optimistically on the company’s ability to take this project forward expeditiously, raising working capital when needed.

Having mentioned a number of (non-JORC) factors above it is worth expanding a little here.

Resource Expansion:

The company have confirmed in their announcement last week and in Mining Maven’s follow up Q&A session, that the resource holds the potential for further expansion down at depth and along strike. The resource as identified appears to be only a proportion of what Homase could actually hold and that is always a specific point of interest for investors.

In a world where million plus ounce resources are becoming increasingly attractive to mid tier and major gold producers desperate for new gold finds, Goldstone have found themselves holding some very prospective ground and it comes as no surprise that third parties have expressed an interest (see below re Strategic Partners).

Region Prospectivity:

The Ghanaian projects, of which Homase is the most advanced, is some of the most highly prospective territory in the world. Homase is situated, for example, on the same structure that includes Anglogold’s Obuasi mine which has (including that produced to date) some 42 million ounces of gold. Also nearby are half a dozen million plus ounce projects which can be viewed by visiting the Homase page on the company website.

Historic Mining:

Anglogold Ashanti owned and operated a mine at Homase in 2002/2003, the ore generated was used to provide supplementary feed ore for their Obuasi operation at a reported operating cost per ounce of $220 – 280. This production was undertaken at a time when gold was priced at $320 – 380 per ounce.

Obviously in a time of extremely low gold prices, operation of the mine was marginal with regard to profitability but even factoring in increased operational costs we would expect Homase to be substantially more profitable in today’s $1100 plus ounce gold environment.

Strategic Partners:

In their 9th April STATEMENT RE. SHARE PRICE MOVEMENT (click here to view), the company confirmed “In addition, as announced on 22 February 2010 the Company is in discussions with an industry participant regarding a potential strategic alliance which could include an equity subscription into Goldstone”.

They have a number of prospective licences, one of which has now yielded a maiden JORC resource. Going forward, short-term exploration costs appear to be controlled and central overheads moderate, putting them in a strong position with regard to strategic partnership negotiations and any future fund raising as required.

One other thing....

It is important to remember that the above relates to just the one project in Ghana (Homase) and the company has another Ghanaian gold project (Manso Amenfi), a Senegalese gold project (Sangola) and applications pending for additional permits in Gabon. So what upside should we add for those elements?

In reality......

Now of course, it would be a bit optimistic to expect an AIM listed explorer to simply leap up to much higher valuations immediately, but the potential and value is now clearly defined. And, recognising all the above factors, from a value investor’s perspective, we feel that 5p a share or a £6.5 million market cap should offer considerable upside potential.

We will be following Goldstone Resources very closely over the coming months and expect to report on developments as the story develops. In the interim we trust the Q&A session with Dr Hendrik Schloemann and this brief assessment have proved useful. If you have any comments or feedback please email us at info@miningmaven.com

This summary represents the views and opinions of Miningmaven, has been prepared for information and educational purposes only and should not be considered as investment advice or a recommendation. All opinions expressed are those of the author and unless otherwise stated, should not be construed as being made on behalf of any featured Company. From time to time Mining Maven principals may or may not take an equity position in the said companies. Readers are advised to do their own extensive research before buying shares which, as with all small cap exploration stocks, should be viewed as high risk. Investors should also seek the advice of their investment adviser or stockbroker, as they deem appropriate. All rights reserved. Users may print extracts of content from this blog for their own personal and non-commercial use only. Republication or redistribution of Mining Maven content, is expressly prohibited without the prior written consent of Mining Maven. However, linking directly to the Mining Maven blog is permitted and encouraged.

 Creative Commons License

mining maven content by mining maven is licensed under a Creative Commons Attribution-Non-Commercial-No Derivative Works 2.0 UK: England & Wales License. Permissions beyond the scope of this license may be available at http://www.miningmaven.com.
Copyright © miningmaven 2010

Tuesday 27 April 2010

Red Rock Resources: Migori Economics!

Red Rock updated the market yesteday with new sample results from the Migori gold project in Kenya (click here to view).

It seems that good progress in being made on the ground; quoting one line from the announcement, which should encourage investors:

"The results confirm the economic potential of the tailings, and the existence of further exploration targets suitable for early follow-up in the eastern license and at Nyarongi"

We asked Chairman Andrew Bell if  he could expand on the news for the benefit of investors. Here's what he had to say:

MM:. Can you give our readers a brief overview of the significance of this update from Migori?

AB: In 1982 a Kenya-based company conducted sampling and metallurgical testwork at the old Macalder tailings. Some work was said to be carried out in Kenya, some in Australia, and some at Imperial College. In 1985 Mackay and Schellman quoted these results in some work they produced, but had not been able to source the original data. That was three years later, and they couldn’t track down the details. So in 2010 it is impossible.

We ran some numbers on the conclusions as to volume, grades, and recoverability, using today’s metal prices, and hypothesized just under $200,000,000 of recoverable metal.

But this was as we recognized quite unreliable. There was no alternative to going back and redrilling, resampling, doing cross and long sections, doing metallurgy, and coming up with figures that could be relied on and a process path that would enable us to implement the recovery of the metals. This is what we have done.

So far the figures for base metals agree quite well with the old figures. The copper grades reported by previous work in the calcine dumps looked unrealistically high, and our figures are lower, but still good. The sulphide copper figures agree well, our cobalt readings are a bit lower grade, especially in the sulphides. Also our zinc is a bit lower, which is an artifact of the upper detection limit of 1% in our ICP test: this factor means our calcine tailings copper grade is slightly low too. Overall there is good agreement, which increases slightly our confidence in the rest of the work done at that time.

The other results, which are encouraging, show that we are already identifying areas outside those already explored where we think we can identify and prove up mineralization to add to the resource base.

MM: Can you also comment on the significance of the results for the Hand-grab samples collected at new BIF-related targets in the Eastern license?

AB:The results as we say are positive, and the Eastern license has been underexplored and the old mines there only mined to a certain depth because of the higher water table. The potential around the very old mines, in a couple of places, is clearly very good. The BIF model and our excitement at finding our hypotheses confirmed is something we shall enlarge on in our next announcement which is coming shortly.

MM:Investors would hope that at some stage that the company may be able to generate revenues from the extraction and sale of the base metal content identified. Would you say the results indicate there may be content of economic significance in this respect and if so, what would the extraction and sale procedure involve and what timescales would you envisage?

AB:We are impatient and are looking actively into installing simple gold production plant and into tailings treatment. How soon? As fast as we can possible do it: this is our priority. We have to await metallurgical testwork on the tails, and are sampling the gossan and some surface areas. I anticipate that we shall extract gold and silver as well as the other metals from the tailings, but the optimal process route is actually what our metallurgists will be working out.

MM:We note that the results for the gold and silver content from the tailings are still awaited, will you be reporting them them separately to the market and if so when do you expect this would be?

AB:This is a different set of tests. It should not be long. We expect them to be good so of course we want to announce the moment we can.

MM: How do today's results add to your confidence in the overall economic viability of the Migori project going forward?

AB:I would be a little surprised and disappointed if we could not make an economic project out of treating the tailings, and do so within a short space. That creates the prospect of cash flow, and cash flow will help exploration and development proceed faster. I would hope that the tailings treatment, and, separately, a small gravity plant to treat surface gold, would themselves make a very viable project. But their development would not detract from, but assist, the continuing effort to build up a major resource by exploration along the length of the belt.


This summary represents the views and opinions of Miningmaven, has been prepared for information and educational purposes only and should not be considered as investment advice or a recommendation. All opinions expressed are those of the author and unless otherwise stated, should not be construed as being made on behalf of any featured Company. From time to time Mining Maven principals may or may not take an equity position in the said companies. Readers are advised to do their own extensive research before buying shares which, as with all small cap exploration stocks, should be viewed as high risk. Investors should also seek the advice of their investment adviser or stockbroker, as they deem appropriate. All rights reserved. Users may print extracts of content from this blog for their own personal and non-commercial use only. Republication or redistribution of Mining Maven content, is expressly prohibited without the prior written consent of Mining Maven. However, linking directly to the Mining Maven blog is permitted and encouraged.

 Creative Commons License

mining maven content by mining maven is licensed under a Creative Commons Attribution-Non-Commercial-No Derivative Works 2.0 UK: England & Wales License. Permissions beyond the scope of this license may be available at http://www.miningmaven.com. Copyright © miningmaven 2010

Thursday 22 April 2010

Goldstone Resources: Q&A with Exploration Director, Dr Hendrik Schloemann

We have been monitoring Goldstone Resources (AIM:GRL) very closely in recent weeks. After emerging from a difficult few years the company has recently morphed into a pure gold exploration company with some territory in the most highly prospective areas of the world.

By highly prospective we are talking about Goldstone’s two projects in Ghana and a project in Senegal. In all three cases the projects are in known gold exploration and mining zones and, notably, all three are located close to a number of multi-million ounce gold projects.

More importantly, in the case of the Homase licence in Ghana, the company also has a project previously drilled extensively a few years ago, the data for which the company was able to acquire with the project. This has enabled Goldstone to develop a JORC compliant resource which it announced to the market yesterday (click here to view).

We contacted the Exploration Director, Dr Hendrik Schloemann with a few questions and give him  the opportunity to expand on todays news for the benefit of investors.

Here's what he had to say:

MM: Can you expand a little on the significance of today's JORC announcement?

HS:We have been pleasantly surprised by the fact that 81% of the resource is in the indicated and measured categories. The higher valuation and measure of confidence ascribed to such a resource as opposed to a majority inferred resource is not something we expected at this early stage. What’s interesting is that it appears that the market does not understand the different values ascribed to the categories and the measure of confidence one can assume for a measured resource as opposed to an inferred resource.

MM: What do these results contribute to your understanding of the resource?

HS:The fact that 81% of the resource was classified in the indicated and measured categories and that the ore is within 200 meters of the surface indicates that an enlarged resource can potentially be exploited by open pit mining methods. Before we however start to think of scoping studies we would have to upgrade the resource to at least 600,000 ounces or more. Given the obvious exploration targets below the present resource and along strike, this is a realistic aim. Under the pit high grade ore shoots were identified and, following the geological Obuasi model where present day mining activities have reached a depth of close to 2000m, these shoots are likely to extend to larger depths. The continuation of the mineralisation along strike is indicated by a gold in soil anomaly. Both targets will be the focus of future exploration.

MM: What does the planned Homase exploration programme entail and what is the broad timetable for completion?

HS:The first exploration step will an airborne geophysical survey (subject to board approval) which is suitable to survey zones of higher conductivity in the rocks below far below the surface. One has to understand that the mineralised rocks at Homase are more conductive then than other rocks in the area. Therefore the survey will allow us to see to what extent and where the high grade ore shoots continue to depth. Drilling will be targeted at higher conductivity zones which connect to known high grade ore shoots close to surface and will comence this year.

MM. Is Homase the priority for Goldstone Resources and to what extent are you planning to conduct exploration at Manso Amenfi (Ghana) and Sangola (Senegal)?

HS:Homase currently is our flag ship project and we’d concentrate a lot of attention to it but at the same time we believe that Manso Amenfi and Sangola are extremely exciting prospects that beg to be worked on. Both these projects would require, comparatively speaking, less funds for exploration but could yield early indications of prospectivity.

END

To download the latest analyst research note on Goldstone Resources, click here

This summary represents the views and opinions of Miningmaven, has been prepared for information and educational purposes only and should not be considered as investment advice or a recommendation. All opinions expressed are those of the author and unless otheriwise stated, should not be construed as being made on behalf of any featured Company. From time to time Mining Maven principals may or may not take an equity position in the said companies.
Readers are advised to do their own extensive research before buying shares which, as with all small cap exploration stocks, should be viewed as high risk. Investors should also seek the advice of their investment adviser or stockbroker, as they deem appropriate.

All rights reserved. Users may print extracts of content from this blog for their own personal and non-commercial use only. Republication or redistribution of Miningmaven content, is expressly prohibited without the prior written consent of Miningmaven. However, linking directly to the Miningmaven blog is permitted and encouraged.
Creative Commons License

Mining Maven content by mining maven is licensed under a Creative Commons Attribution-Non-Commercial-No Derivative Works 2.0 UK: England & Wales License. Permissions beyond the scope of this license may be available at http://www.miningmaven.com.

Copyright © miningmaven 2010

Friday 9 April 2010

Range Resources PLC: Q&A follow up


Mining Maven notes the latest update from Range Resources (click here to view). Oil and Gas exploration is not, as they say, for widows and orphans; but as the story unfolds we continue to see a strong business model developing.

We recently conducted an open Q&A session with Range Resources (AIM:RRL, ASX:RRS) where readers were invited to put their questions to the Company. (click here to view). The session generated a high level of interest and helped provide investors with some useful information regarding the company’s activities.

With so much expected to be happening at Range Resources, investors are no doubt keen to seek a more in-depth understanding on the progress being made. In this respect, there have recently been a number of material developments.

The Texan discovery is now generating sales through the company’s 25% stake in the project, thus the progression to oil and gas producer status continues. The successfully completed rights issue, combined with existing funds will enable the company to progress its Georgian oil and gas projects and its flagship Puntland interests, which is targeting multi billion barrel targets in Puntland, Northern Somalia.

Lots to talk about, and to assist investor discussions, we felt it would be a good time to fire across a few quick questions to Pete Landau, Executive Director of Range Resources. It appears we timed our enquiries well, coinciding as they do with yesterdays update.

So here are the questions Mining Maven sent to Range Resources, together with their answers. Thanks to Pete Landau for participating once again!

Note: You will come across some technical terminology in this and other related articles. If you would like to research technical terms further, a good starting point is http://oilgasglossary.com/

Texas:

MM: With regard to the existing Smith1 well can you explain why you are proposing to fracture stimulate and comingle the two zones and what this process entails? Will fracturing and comingling help improve the flow rates? Do you have any ultimate flow rate targets, in this regard, from Smith1 well?

PL: Yes - ultimate target is between 9-11mmcf per day and 650 - 950 bbls per day - fracing and opening up zones are pretty standard procedures.

MM: You are planning to drill additional wells within the licence area. How likely is it that additional wells be situated in areas with gas and oil?

PL: The second well will be an appraisal well located approximately 700m from the Smith #1. The well is expected to add reserves and production while helping to delineate the overall size of the reservoir.

Georgia:

MM: Could you briefly explain how drill targets are identified from the seismic data? Is this a desktop exercise or is this combined with on-site work in the field?

PL: A combination of everything we have data wise to date - historical work (wells, geochem etc) and now the processed and interpreted seismic (when available Q2) - no more "on-site" work is required.

MM: How attractive is Georgia as a location for investment and, if this was an option you chose, how would you go about identifying suitable farm-in partners? Would this be primarily through existing connections or would you consider other means such as opening a data-room for third parties to consider?

PL: Already at least 5 other oil and gas companies operating in Georgia (producing). If the oil potential is demonstrated through the seismic process - farm in partners will be available mostly on the basis on how good the oil potential is (as opposed to Georgia as an attractive investment location). PSA terms are very reasonable and the country holds multi billion dollar pipeline infrastructure already.

Puntland:

MM: We note that the first Puntland well is due to be drilled in Summer 2010. We understand there are various preparatory stages leading up to spudding a well. Could you briefly summarise the key stages? Will you be able to provide updates to market during the preparatory process and also after spudding, on a similar basis to that provided by the company for Smith1 drilling?

PL: Stages will include:
- confirmation of drilling contractor and tying up of associated logistical support;
- rig mobilisation;
- delivery of equipment into Puntland;
- site / camp establishment;
- spudding of well etc .

We will try and provide as comprehensive updates as possible, but with Africa Oil as operator we will have to take our lead from them.

MM: Could you briefly explain the process you are following to secure partners for the Puntland offshore programme?

PL: First and foremost get agreement from the government on offshore psa terms and conditions. Once in place can then move to a list of potential partners (many already briefed and have expressed interest) with terms sheet and programme regarding stage 1 seismic program on targeted areas


We would be most interested to receive feedback from readers, including any aspects you feel it would be good to cover in future articles etc. Please send these to info@miningmaven.com

This summary represents the views and opinions of Miningmaven, has been prepared for information and educational purposes only and should not be considered as investment advice or a recommendation. All opinions expressed in this weblog are those of the author and should not be construed as being made on behalf of any featured Company.
Readers are advised to do their own extensive research before buying shares which, as with all small cap exploration stocks, should be viewed as high risk. Investors should also seek the advice of their investment adviser or stockbroker, as they deem appropriate.

All rights reserved. Users may print extracts of content from this blog for their own personal and non-commercial use only. Republication or redistribution of Miningmaven content, is expressly prohibited without the prior written consent of miningmaven. However, linking directly to the Miningmaven blog is permitted and encouraged.

The author holds shares in Range Resources
Copyright © miningmaven 2009

Wednesday 7 April 2010

Regency Mines: Chairman's comments on Lake Johnstone update


Regency Mines (AIM:RGM) announced to the market an exploration update on its Lake Johnstone Greenstone Belt project (click here to view). We took this opportunity to ask Chairman Andrew Bell to expand on this for investors. Here's what he had to say:

MM: Could you expand a little on the significance of today's update on the exploration program at the Lake Johnstone Greenstone Belt.

AB: As can be seen from the aerial photographs showing the planned drill locations, these are working farms. There is cover over the whole area, with no rock exposure. It is therefore very different from a lot of the places we are used to exploring. Here, geophysics is the first tool, followed by geochemistry.

But that only gets you so far. Then you have to drill, and only then do you discover whether there is anything there or whether your geophysics has given you false positives – anomalies that are meaningless from our point of view, because they could come for example, in the case of our drilling, from salinity or siltstones.

So you don’t initially do a full drill programme, but drill short holes to find out how much cover there is over the rocks, and what rocks they are, as well as, naturally, what they contain.

In this case we wanted to test the hypothesis in the south at target 1 that we had the jerdacuttup fault system, trending east-west, on which the Tropicana gold lies, and so the boundary between the yilgarn granites and the Albany-Fraser metamorphics to the south. In the north at targets 3 and (as an afterthought) 2 we wanted to test the hypothesis that the anomaly was in greenstone and potentially associated with nickel mineralisation.

At target 1 we encountered the geological boundary as hoped and in ten holes encountered sulphides associated with the Albany-Fraser migmatites, schists and shales.

At target 3 we encountered 1 km of greenstones under 30m of cover with some sulphides. The recent airborne geophysics that had hypothesised the extension of the greenstone belt under cover southward to this area seems validated.

So now we see what the samples tell us, and then we drill, we expect, more and deeper. Will there be something exceptional from these first phase 1 samples? Odds against. Will there be something worth pursuing? Reasonable odds. So far it looks promising and our geophysics and geology team can feel quite satisfied.

MM: You noted that the exploration programme successfully completed its objectives, encountering the geologies sought. Could you explain, in simple terms, what geologies were targeted, how these were encountered and how this helps demonstrate the potential mineralisation in the areas targeted?

AB: As stated above, Target 1 was an EM anomaly on a NE-SW strike, which is across elevation and the N-S strike of the greenstone belt. Tropicana 570k to the NE along the Yilgarn Craton margin has SE dipping mineralisation along a gneissic/schist contact. schists can provide this kind of moderately conductive and broad EM target, so as long as we were not picking up a paleaochannel or a siltstone stratigraphy, we were in with a chance. Anglogold to our east has a continuation of our anomaly.

The drill lines were designed to drill across any SE dipping structure. Target 3 was on a non-conductive magnetic ultramafic anomaly 7 km long. This all needs to be drilled to crystalline basement, but initial drilling was to test regolith for near surface disseminated cobalt/nickel mineralisation and to test margins for gold/copper.

Our geologist commented after conclusion of the drilling: “ if the assay results come back with strong mineralisation a new frontier will be opened up……………...

If mineralisation is weak, the geology remains robust and points to a new frontier with a mineralising system carrying sulphides otherwise not expected and that would put the discovery into the realms of jv consideration with a major”. Either way, i call this progress.

MM: How much has this work increased your confidence that the license area may host a gold deposit, particularly since referencing the similarities to the nearby Tropicana JV project, which appears to share a similar structural system?

AB: Anglogold, who own Tropicana, have pegged most of the geological boundary along the fault. The new understanding that comes from the Tropicana discovery has led to much excitement and a new exploration paradigm. All the ground is pegged, either by Anglogold, or by Teck, or by the Newmont JV. Except for what we have. We had it for the North-South greenstone belt not for the Tropicana-style potential, but in fact the boundaries of cratons are often fertile exploration ground. This is at the south of the yilgarn; for example, at the north boundary of the yilgarn there is another new exploration model, following Sandfire’s copper discovery at Degrussa.

We like also that our position is just west of the western junction of the two major East-West faults that bound the Albany-Fraser metamorphic zone – which mirrors the position of the Tropicana discovery, to the East of the eastern junction of these faults. Perhaps this is a coincidence, of course. But establishing that we have exactly the right rocks, and exactly the right geological boundary, running through our license is a great positive.

MM: Could you also expand a little on the significance of references to the proximity to Ravensthorpe site.

AB: The area is one known to host significant nickel deposits, of more than one type.

MM: Could you outline the next steps in the exploration program at Lake Johnstone.

AB: We will continue, we expect, with phase 2 drilling. If something exceptional appears, it may speed things up. We will also be looking to explore our very prospective area at Kambalda, an important nickel mining centre where we picked up an old mining license next to a producing mine.

MM: The price of nickel appears to be gaining strength. Do you see this as a continuing trend and if so how could this impact the economics of Regency's nickel projects going forward?

AB: Nickel is one of the most sensitive metals. It seems to over-correct in both directions. A year ago people were negative about platinum: the auto industry was on its knees, recovery would be slow, etc. Now people could hardly be more bullish, short and long-term.

Similarly a few months ago with nickel. No recovery in 2010; maybe a small recovery in 2011. How wrong they were. Chinese stainless steel demand is rising. Two thirds of nickel goes to stainless steel, which i call the middle class metal, because you use it in fridges and aircons and motorbikes and cars: everything an urban dweller uses. China will continue to see up to 25m new people joining the urban economy each year, and people continuing to save and buy consumer products in a highly aspirational society. Nor should the other highly populous developing societies of Asia and South America be ignored: they are following the same path.

Nickel will be a continuing bull market: I am convinced of it. The basic supply and demand situation is favourable, and we like this metal particularly and fashion will find us. When it comes to laterites and Mambare, we want to steal a march over other people by focussing on technology, so that we can be a leader. But shareholders already know what we are doing there. We will speak more of this soon, but we wanted shareholders to focus for a moment on what else we have. soon we will be encouraging them to focus on our nickel at Kambalda too.

MM: Finally how do you view the development potential of Lake Johnstone when compared with the company's lateritic nickel project at Mambare?

AB: The problem with sulphides is a different one: finding them! With laterites, like Mambare, we know they are there, and the problem is delineating, measuring, selecting the best zones, looking at the cobalt levels for potential credits, and finding suitable metallurgy. If we find nickel at Lake Johnstone, or quite possibly gold, it will be time to think of development potential.

Perhaps the issue will be overtaken by a gold discovery, and we will all be talking about the development potential of that.

Meanwhile, yes, the potential of Mambare is so large that it cannot easily be compared with anything else. We have to do more drilling to extend resource, and find the really high-grade pockets, and we have to advance on the corporate front.

Project Area and Structural Map graphics

  


http://www.rns-pdf.londonstockexchange.com/rns/7438J_2-2010-4-6.pdf


Maps of Magnetic Image

Target 1

http://www.rns-pdf.londonstockexchange.com/rns/7438J_3-2010-4-6.pdf

Target 2

http://www.rns-pdf.londonstockexchange.com/rns/7438J_4-2010-4-6.pdf

Target 3

http://www.rns-pdf.londonstockexchange.com/rns/7438J_5-2010-4-6.pdf



This summary represents the views and opinions of Miningmaven, has been prepared for information and educational purposes only and should not be considered as investment advice or a recommendation. All opinions expressed in this weblog are those of the author and should not be construed as being made on behalf of any featured Company.
Readers are advised to do their own extensive research before buying shares which, as with all small cap exploration stocks, should be viewed as high risk. Investors should also seek the advice of their investment adviser or stockbroker, as they deem appropriate.

All rights reserved. Users may print extracts of content from this blog for their own personal and non-commercial use only. Republication or redistribution of Miningmaven content, is expressly prohibited without the prior written consent of miningmaven. However, linking directly to the Miningmaven blog is permitted and encouraged.

Copyright © miningmaven 2010