News

September 09, 2008

Glencar Works Up Towards A Million Ounces On The Magnetic Destruction Zones At Komana East

By Alastair Ford

One great thing about the gold sector is that there are reasons to be bullish when everyone else is bearish. Thus, even in spite of some recent short-term weakness in gold, Hugh McCullough, chief executive of Glencar Mining, is upbeat about the likely economics for his company’s development portfolio of gold assets in Mali. “If gold went below US$700 I’d be a bit concerned. But there are sufficient in-built problems in the global economy”. What’s more, he adds, “the big companies produce 90 million ounces of gold per year, and they ar not finding 90 million ounces”.

It’s that natural supply-demand gap that small gold companies can effectively step into, and Glencar, with its 520,000 ounces and counting at Komana West on the Yanfolila prospect, and its joint venture with Gold Fields at Sankarani, looks perfectly positioned to do so. That resource of 520,000 ounces dates back to October of last year, and the company has been plenty busy since then, rainy season notwithstanding. Komana West has since been the subject of infill drilling, and has been extended...