News

October 23, 2008

Glencar Proves Up Well Over A Million Ounces Of Gold In Mali And Looks Set Fair To Increase Its Resource Still Further

By Alastair Ford

“It’s unfortunate to be reporting good news in such weak markets”, says Hugh McCullough. On the other hand, he adds, rather philosophically, “it’s better to be reporting good news than bad news”. Glencar has just delivered an updated resource estimate for its combined Komana East and Komana West project in Mali. The numbers, well worked over by SRK, come in at a healthy 1.25 million ounces grading 1.6 grammes per tonne. SRK also reports that selective mining could push the overall grade up to two grammes per tonne, so Hugh McCullough has plenty to feel good about, even if the share price bounce isn’t quite what he might have hoped for last year on delivering the same news.

Conceivably the company could switch off the exploration rigs now and move straight into feasibility on  a projected 10 year mine life producing over 100,000 ounces per year. That’s not the plan, though, for a couple of reasons. The first is that in terms of rating, Hugh doesn’t reckon Glencar will get any more support from the market if serious feasibility work starts at Komana. “I don’t think we’ll be stopping now and going to feasibility”, he says. “We know what the potential of this...