This week: Lighthouse shows the way, Lipoxen demonstrates it’s not to be sneezed at
African Minerals Ltd (LON:AMI) (AMI 450p/£1226.59m)
The AIM-listed iron ore company, developing a project in Sierra Leone, West Africa has announced that, further to its July press release, it continues to work with Cape Lambert Resources Limited (ASX: CFE) regarding CFE’s planned US$45m investment in the Marampa/Pepel rail and port infrastructure. Documentation of the (investment) agreements is still progressing but was not finalised by 14th October as originally planned. The parties have now agreed a revised long-stop date of 31st January 2011 for completion of said documentation. The Company will provide further updates in due course.
Ascot Mining (ASMP.PL 22p/8.78m)
Gold production has recommenced at Ascot Mining’s Chassoul Mine in Costa Rica. Following an upgrading of the mill from 50tpd to 150tpd, the Company is targeting 1,200 ounces of gold per month from the Chassoul Mine, once a 14 day commissioning period has been completed. Further increases are planned by trucking ore in from the Company’s other gold mines nearby. There is little doubt that Ascot Mining is working hard to maximise its existing gold mining projects in Costa Rica; whilst at the same time also seeking opportunities in other jurisdictions where the management is in negotiations. The recent trading statement was able to report that Ascot Mining continues to make progress in its discussions with Toronto-quoted Mineral Hill Industries (MHI) towards concluding a final agreement on a business combination that would quickly not just expand its portfolio of exploration and development projects but also strengthen its management team. Ascot has been seeking a quotation in Canada and to this end in July were able to announce that the NI-43-101 technical reports together with an independent valuation had been completed which will form the basis of its application for the Canadian reporting issue status. Certainly the Canadian equity markets are home to a larger number of gold explorers and producers operating in Central and South America; which the Board believe would allow for an improved understanding and a higher valuation to be placed on Ascot Mining. At the current gold price, with production costs of well under $500 an ounce, the Company could make a $1m a month after costs, which makes the market capitalisation of £8.8m appear woefully inadequate.
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