Company Information for Glencar Mining Plc

AIM-GEX

www.glencarmining.ie

Company stock charts - 12 Month chart

AIM; GEX

View full financial data

Company Statement

Glencar is a Dublin-based exploration company with a focus on exploration and development of gold deposits in Africa. Glencar has found major gold deposits in Ghana, West Africa in both the 1980s and in the 1990s. The company has operations in Mali and Ghana in West Africa and in Uganda in East Africa.

Glencar’s objective is to regain its position as one of the foremost gold exploration companies in Africa, while building substantial shareholder value. In doing so, Glencar will generate significant wealth for all its stakeholders, primarily its shareholders and those stakeholders in the countries in which it operates. Glencar expects to achieve this objective using its proven, successful exploration expertise and experience which has already led to the discovery of two major commercial gold deposits in Ghana.

We are committed to operate to the highest ethical, environmental and socially responsible standards. We will continue to strive to ensure that our exploration activities and the fruits of those activities contribute in a positive way to the environment, both natural and social, with special emphasis on our obligations to the local communities within which the company operates.

Glencar Mining plc is dedicated to strong environmental stewardship. Our aims include:

The achievement of excellence in stewardship of the environment, safety and social responsibility
To minimise any negative environmental impacts of our activities
To enhance environmental, social and economic impacts of our operations wherever possible
We undertake to follow international best practice guidelines while respecting any guidelines extant within the jurisdiction in which we are operating.

Current Operations

MALI
Glencar holds five licences in Mali, West Africa, all of which are being actively explored for gold mineralization. Two of the licences, the Komana and Solona licences ( together referred to as “The Yanfolila Project”) are held by Glencar’s 95% owned Malian subsidiary company Glencar Mali s.a.r.l. Three of the licences are held by another Glencar subsidiary, Sankarani Resources s.a.r.l. in which the Gold Fields subsidiary is earning an interest through exploration expenditures of up to US$12 million. These three licences are collectively referred to as “The Sankarani Project”.

Mali is a country with a well established, successful gold mining industry. The country ranks third amongst the gold producing countries of Africa, after South Africa and Ghana. It has a stable, democratically elected government which is firmly supportive of the mining industry.

The Yanfolila Project
The Yanfolila Project comprises the Komana and Solona licences in which Glencar has a 95% interest. The Komana licence includes the very exciting Komana West prospect, where some 12,500 metres of reverse circulation and diamond drilling has already been completed by Glencar. The Komana West deposit is contained within a north - south trending structure and has been shown to have a strike length of at least 1,100 metres, with clear potential for both strike and depth extensions. The gold mineralization is contained within sheared metasediments and quartz veins and is often of high grade. The mineralization is closely associated spacially with felsic porphyry intrusive rocks, which are often highly altered.

A resource study is currently being completed by the independent consultants, SRK Consultants and its delivery is expected shortly.

The next field programme will commence in October, after the end of the rainy season. The programme will involve intensive drilling at the Komana West deposit and also on other exploration targets on both the Komana and Solona licences. At Komana West, the drilling will be designed to increase the resource base through additional drilling at depth and along strike, and also to increase confidence levels within the resource through infill drilling on closer centres. The deposit has been intersected in the deepest drillholes yet drilled, so that we have strong expectations of increasing the resource at depth with the deeper drillholes planned for the next phase of drilling.

Some seven kilometres to the east of Komana West, the Komana East target has been drilled by the previous licencees, Randgold Resources Limited, who were then in joint venture with North Limited. Following this drilling, the Randgold/North joint venture estimated an unclassified, non JORC compliant resource of 280,000 ounces of gold for the Komana East deposit. We plan to drill on this target during the coming field season and we believe that our experience with the Komana West deposit will assist in more accurately determining the full potential of the Komana East deposit.

There are also at least three additional exploration targets located up to nine kilometres along strike to the south from Komana West and it is also planned to drill these targets during the coming season. RAB drilling will also be carried out to the north of the Komana West deposit to test for the northerly extension of the mineralisation along the continuation of the Komana Shear Zone.

The Solona licence lies adjacent and to the east of the Komana licence and contains a number of drill targets defined during our recent exploration programmes, especially those at Badogo-Malikila, Faliko and Niechilela. These targets, all of which have been the subject of artisanal working, show anomalous coincident geochemistry and geophysics and have been further defined by rock sampling and geological mapping.

Initial RAB drilling programmes are planned for each target during the coming field season and any mineralization encountered will be followed up with reverse circulation drilling.

The Sankarani Project
The Sankarani Project comprises three licences, at Bokoro, Sanioumale and Farasaba.

These three licences are the subject of a Framework Agreement signed with a subsidiary of Gold Fields Limited, (Gold Fields”), the world’s third largest gold producer. Under the terms of that agreement, the Gold Fields subsidiary, may earn a 65% interest in the licences through exploration expenditures of US$12 million. To date, just over US$2.5 million has been spent on exploration and Gold Fields has now earned a 25% interest in the project.

We have completed a total of 12,574 metres of reverse circulation and diamond drilling on seven targets within the Sankarani Project. Two of these targets in particular, Kabaya South on the Farasaba Licence and Sanankoro on the Bokoro Licence have yielded encouraging results and further, follow up drilling is planned for each of these targets. The best intersection at Kabaya South was 43 metres at 1.7 grams/tonne (including 19 metres at 3.93 grams/tonne gold), while at Sanankoro, the best result was 21 metres grading 1.12 grams/tonne gold.

The field programme for the coming field season is currently being finalised and as well as additional drilling programmes, it is likely to involve a significant aeromagnetic survey over a large portion of the Sankarani Project area.

GHANA - Asheba
During the period under review, we have devoted most of our management and financial resources to our Malian exploration activities. The very prospective Asheba Project in Ghana, however, has yielded positive results from drilling carried out within the Atinasi-Tanaya area of the licence. Consequently, we are in discussions with an interested party in relation to a joint venture on the Asheba Project and we hope to have concluded such discussions before year end.

In accordance with the Ghanaian licencing regulations, approximately 50% of the original licence area of 45 square kilometres has been relinquished as part of the recently completed licence renewal process.

UGANDA -
With respect to our Makina Project in southeast Uganda, we are awaiting the review of the results of the recently flown aeromagnetic survey by the Ugandan authorities before deciding on the next stage of exploration in this area. We are hopeful that this survey will assist in the interpretation of the structural features of the area, which in turn will assist us in delineating targets for follow up work.

Geographical Spread

Ghana - Gold Exploration
Mali - Gold Exploration
Uganda - Gold Exploration

Board of Directors and Key Management

Hugh McCullough	Chief Executive

Kieran Harrington	Technical Director

William Cummins	Non-executive Directors

Sean Finlay	Non-executive Directors

Philip O'Quigley	Non-executive Directors

Company Address

71 Lower Baggot Street
Dublin 2, Ireland


Telephone:	+353 1 661 9974
Facsimile:	+ 353 1 661 1205
Email:	info[at]glencarmining.ie
Website:	http://www.glencarmining.ie

Additional Address/Key Contact

Hugh McCullough
hmc@glencarmining.ie
Kieran Harrington
kh@glencarmining.ie

Annual General Meeting

May, Dublin

Year End

31 December

Nominated Brokers

J & E Davy
Davy House
49 Dawson Street
Dublin 2

Nominated Advisors

J & E Davy
Davy House
49 Dawson Street
Dublin 2

Broker/Analyst Reports

18/06/07 - Davy Research

Major Shareholders

Pershing Keen Nominess Limited	9.79%
CDC Group plc	8.27%
Chase Nominees Limited	5.7%
Dresdner Kleinwort Securities Nominees Limited	3.91%
Credit Suisse Securities (Europe) Limited	3.56%
Chase Nominees Limited	3.41%

Most Recent Statement

23/10/08 - Independent Resource Estimate at Komana Project increased by 139% to 1.25 million ounces
09/10/08 - Drilling Report
26/08/08 - Directors Dealing
21/08/08 - Interim Management Statement
16/07/08 - Drilling Update - Glencar intersects 79 metres at 2.5 grams/tonne in latest drilling at Komana East
26/06/08 - Drilling Update

To top