Glencar link-up with Gold Fields significant

GLENCAR’S link-up with Gold Fields involving its Mali gold project is seen as a significant development within the industry.

Glencar’s announcement last week is seen as a significant development within the Irish mining sector. Gold Fields are the fourth largest gold producer in the world and the small Irish group has done a deal with the group entitling it to 25% of its gold properties in Mali.

The 25% stake is based on Gold Fields spending $2.5 million by December 31, 2007

Gold Fields can increase its interest in the property to 51% by incurring exploration expenditure of a further $4 million by December 31, 2008, the statement said.

Overall the major player has the option of increasing its overall stake to 65%, by funding additional exploration if required and a Feasibility Study, subject to a maximum additional spend of $8 million.

Job Langbroek of Davy Stockbrokers, who are brokers to the company said Glencar has a good track record at finding mines.

It was forced to sell its Wassa mine in Ghana because the bottom fell out of the gold market in the 1990s.

This arrangement gives some succour to investors because, with such a big player getting in behind Glencar, that has alleviated such exposure going forward should a new gold mine emerge from the latest exploration round, said Mr Langbroek.

Though not an Indian summer for Irish exploration Tullow Oil has established itself as a mature independent oil and gas producer with substantial exploration interests.

Analysts point to the fact that Tullow is now seen as a mature group and one of the best independent oil stocks on the British or Irish market.

The surge in oil prices underscores the strategy pursued by the group whose recent results impressed the market.

One to watch for a totally different reason is Aminex in North Korea.

Run out of London at this stage by Brian Hall, Aminex is unique in having acquired licences from the North Korean government.

It has exploration licences offshore in Korea which is an achievement no other Western company has managed to date.

What will be achieved from those licences remains to be seen, but Hall’s ability to get a licence from the communist state points to a serious level of negotiating skills, said Langbroek.