From: Biniam Tekle (biniamt@dehai.org)
Date: Fri Sep 12 2008 - 11:58:54 EDT
http://www.proactiveinvestors.com/companies/news/754/african-gold-group-pmi-gold-and-nevsun-to-present-at-1st-proactive-one2one-forum-0754.html
Friday, September 12, 2008
African Gold Group, PMI Gold and Nevsun to present at 1st Proactive One2One
Forumby Sam Kiri and Ian
Mclelland<http://www.proactiveinvestors.com/about_us> [image:
company news image]
Known as "The Gold Coast" until the late 1950's, the resource-rich
sub-Sahara country of Ghana has somehow gone largely under explored by
modern standards. After a decade of steady increases in the price of gold
and the introduction of an investor-friendly Mining Code in 1992, Ghana is
now Africa's second largest gold producer behind South Africa. The sector is
one of the main foreign exchange earners and is largely responsible for its
impressive economic performance.
While Ghana leads the pack, the entire West Africa benefited from high metal
prices and development endeavours by foreign mining companies. Apart from
geology, West Africa's stable politics and the mining friendly regulatory
environment has played an important role in attracting investments. From a
governance perspective, some West African nations such as Mali, Ghana and
Burkina Faso have made considerable progress and rank alongside South
Africa, which has a developed mining environment. The glut of investments to
the region should therefore cause little surprise.
The main players in Ghana are Newmont Mining Corp. (NYSE: NEM) and AngloGold
Ashanti (NYSE: NU)). Newmont's flagship project in Ghana is the Ahafo
project which also has attracted World Bank funding through the
International Finance Corporation. AngloGold Ashanti meanwhile has two large
operations in Ghana in its Iduapriem and Obuasi projects.
Ghana mining industry however has gradually attracted several junior
exploration companies as well. With focused resources, assets and senior
management time, these new comers are expected to craft the future of
Ghana's mining industry. Over the years, companies such as Rangold Resources
(NASDAQ: GOLD), Keagan Resources (TSX: KGN), Red Back Mining (TSX: RBI),
Golden Star Resources (TSX: GSC), African Gold Group (TSX.V: AGG), Volta
Resources (TSX: VTR) and PMI Gold Corporation (TSX.V: PMV) have been
stepping in to capitalize on what may prove to be blue sky opportunities.
Much of Ghana's new projects and developments are indebted to these
companies.
Mining is an important sector in the Ghanaian economy accounting for
approximately 3-4% of government fiscal revenues, 5% of the country's GDP
and 30% of the country's total exports. On the back of high metal prices and
increased investment in the sector by both majors and new entrants, the
economy has been booming over the past few years. According to the World
Bank, the GDP has increased progressively from 3.7% in 2000 to 6.4% in 2007
with a further 2.8% growth is expected for 2008. Poverty level has fallen
from 52% in 1992 to 28.5% in 2005, and is on track to meet its target of
halving poverty levels by 2015. Undoubtedly, foreign mining companies have
done their bit to prop up the economy.
This makes it important to bring the attention of investors to companies
with assets in West Africa in general and Ghana in particular. We are
presenting African Gold Group (TSX.V: AGG) and PMI Gold Corporation (TSX.V:
PMV) on September 18th in Toronto at the Royal York Hotel (6.00 p.m. to 7.30
p.m.). They will be joined by TSX and AMEX listed Nevsun Resources (TSX,
AMEX: NSU), which has assets in East Africa.
CLICK HERE TO REGISTER FOR
FREE<http://www.proactiveinvestors.co.uk/eventregistration-na.php>
*African Gold Group* (TSX.V: AGG) provides exposure to both Ghana and Mali.
The company has nine gold concessions that are consolidated into five
separate exploration projects – three in Ghana and two in Mali. AGG's
Asankrangwa project is in the northern segment of the Asankrangwa gold belt,
which is located midway between the Ashanti and Sefwi gold belts in Ghana.
Immediately to the south of AGG's Manso Nkwanta concession in the
Asankrangwa project, Resolute Resources mined approximately 30 million
tonnes of ore grading 2.0 g/t Au from a number of pits. Immediately to the
west and draining from the contiguous Assuowunu concession, Bonte Gold Mines
produced approximately 500,000 ounces of alluvial gold from 1992 to 2002.
*PMI Gold Corporation* (TSX.V: PMV) acquired its first interests in Ghana in
2003 from Goknet Mining Company Limited of Accra, whereby PMI Gold could
earn up to 85% of Goknet's interests. Following few subsequent acquisitions,
PMI now has five projects in Asankrangwa Gold Belt (Obotan and Edubia) and
Ashanti Gold Belt (Kubi, Ofoase and Bankame). At Kubi PMI has a 43-101
compliant 5.15 million tonnes of indicated resources grading 3.66 g/t and
5.38 million tonnes of inferred resources grading 1.88 g/t. Brisk
development activity is currently underway in all PMI's prospects.
*Nevsun Resources* (AMEX: NSU, TSX: NSU) is developing the Bisha Project in
Eritrea, East Africa, which has 27.2 million tonnes of measured and
indicated resource and 11.7 million tonnes of inferred resource (43-101
compliant). Reserves within the Bisha pit which will be mined over the first
10 years of operation amount to slightly over 20 million tonnes. Two
additional satellite, massive sulphide deposits of some significance have
already been drilled and six prime exploration targets are ready for
drilling on the Bisha property. As Nevsun continues its development and
exploration activities in its entire land package this resource estimate is
expected to increase several folds.
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