Trading Idea: Firm to commence gold mining in Kenya

Stratex International Plc, the AIM-quoted gold exploration and development company focused on Turkey and East Africa, is pleased to announce its preliminary results for the year ended 31 December 2010.
Operational Overview

• Diverse portfolio of exploration and development projects across Turkey and East Africa
• Results from Feasibility Study at Inlice oxide gold project (‘Inlice’) in Turkey expected soon – indications are that the project is economically viable and near term production on track for 2012
• Revised resource from scoping study at Altintepe oxide gold project (‘Altintepe’) in Turkey expected Q2 2011
• Prospective portfolio of multi-stage exploration projects in Turkey with potential to offer significant value uplift
• Strong JV partners committed to developing licences further during 2011
• Formation of Stratex East Africa Limited (‘SEA’) to hold all Ethiopian and Djiboutian gold assets – David Hall to lead the development of SEA in new role as Executive Director East Africa
• Rapid expansion in East Africa – building land position in the Afar Depression straddling Ethiopia and Djibouti to 3,853 sq km – total East African land position increased to 7,018 sq km
• JV agreement with Thani Ashanti to fast-track 11 licences in the Afar Depression, the first move by a mining major into the region
• Results from 3,000m drilling programme at flagship Megenta discovery in Ethiopia anticipated mid 2011
• Encouraging results from initial exploration of Northern Ethiopian Arabian Nubian Shield prospects highlighting prospectivity of Tigray region

….read more HERE

Riverstone Resources Inc. (TSX-V: RVS) has received an independent resource estimate, which shows a substantial increase in the gold mineral resources at its flagship Karma project in Burkina Faso, West Africa. The NI 43-101 compliant resource estimate has increased the contained ounces of gold by 70% from the company’s initial estimate of May 2009. The total discovery cost of the increase in resources was less than $6 per ounce of gold.

HIGHLIGHTS

• Indicated gold resources are 810,600 ounces of gold in 22,845,000 tonnes at a grade of 1.10 g/t.
• In addition, the inferred gold resources are 1,119,100 ounces of gold in 44,110,000 tonnes at a grade of 0.79 g/t.
• The gold resources are at shallow depths and over 90% of the gold resource is within 150 metres from surface.
• Mineralization remains open at depth and along strike.
• The resource estimate only includes drill hole results received up to October 2010 and results of an additional 13,000 metres of drilling, completed since that time, are not included. Most of the newest drill results include significant mineralized intervals. Data from this and on-going drilling will be incorporated into the next resource estimate.
• The prospective Nami deposit drill results have not been included in this resource estimate.
• This is an interim estimate and will be updated again later in the year.Michael D. McInnis, President and CEO of Riverstone Resources commented “We are extremely pleased with the material increase in the gold resource at Karma. There is ample room to increase the gold resource and to establish Karma as one of the premier gold projects in West Africa. We are presently drilling with two rigs and plan to add up to three more rigs as they become available”.

The Karma project consists of four separate deposits, which are located close to each other. A summary of the resource estimates for each deposit is presented in the table HERE

Much more by Mining Journal special publication HERE

Gold’s continuous ten-year rise hasn’t sheltered it from controversy. Despite producing consistent returns in virtually all currencies year after year, some market pundits still question its validity as an asset class.

TheGoldReport: Let’s go back to the Middle East for a moment. The unrest there has pushed gold up about $100 over the past couple of weeks. Have the ongoing issues there or in northern Africa caused you to change your investment strategy in the near term?

Charles Oliver: One slight difference is that I’ve become a little more cautious on Africa in general. Many gold companies have exposure to Africa. The speed at which some of these countries are destabilizing has caused me concern. I think that most of the countries where mines operate will be fine; but having said that, I am cognizant there could be some nervous investors who decide they want to reduce their ownership in those areas. I’ve taken some profits from those areas and redeployed them back into what I deem are safer jurisdictions like North and South America.

TGR: Do you believe what’s happening in northern Africa and the Middle East is the “mania” catalyst the gold bugs have been seeking?

CO: Generally speaking, most crises pass and get resolved. Frequently, you see the gold price run up only to fall back down the next day. I try to block out these events because often they don’t really change the long-term value of gold. The concern, however, would be if this becomes more systemic and global in nature. In that case, I certainly think it would have a larger, more-lasting impact. But, again, I think you want to look at how destabilizing this is on Europe and the U.S. If it spreads to Saudi Arabia, that would cause me great concern.

…..much more including stock recommendations HERE