Glencar mining hits golden jackpot in Africa

GLENCAR MINING, the AIM and IEX listed company with gold exploration interests in Africa, said yesterday a preliminary independent resource study by SRK Consulting (Britain) has reported a mineral resource of 520,000 ounces of gold at Komana West in Mali.

Gold was trading at $756 (€530) per ounce yesterday, with Gold and Silver Investments of Dublin forecasting a boom in prices as concerns about the dollar force investors to look for safe havens for their funds. Shares in the company were unchanged at 14 cent in Dublin yesterday. This independent estimate provides a background to the new intensive drilling campaign about to commence at Komana West, in Mali.

With infill drilling, a further 200,000 ounces of gold may be established, but more drilling will be required to establish that level of gold at the Komana West drilling site in Mali, analysts said.

In a separate development, Island Oil & Gas, which hopes to start bringing gas ashore from its Celtic Sea gas finds by 2009, has secured a loan facility for £4.5m (€6.5m) with the London office of RMB Resources.

Discussions are ongoing with RMB to secure medium-term financing to allow the company to progress the opportunities arising from its successful 2007 Celtic Sea drilling programme.