Executive Summary
GMA Resources plc (GMA) is engaged in gold mining, exploration and mine development in Southern Algeria. The company owns a controlling 52% interest in the 1,425 square kilometre Tirek - Amesmessa concession close to the Mali border. The other 48% of the concession is held by state owned Sonatrach, the Algerian oil and gas giant.
The Amesmessa gold mine has been producing around 2,000 oz of gold a month since the beginning of 2009. Recent announcements from the company indicate that GMA expects gold production from Amesmessa to increase by about 1,000 oz a month from September 2010 onwards.
The increase in production is the direct result of a decision by the new CEO, Ken Crichton, to move an unused CIL plant from the currently mothballed Tirek mine to Amesmessa. The Tirek CIL plant was subsequently transferred and placed on a test run in mid-August 2010. The plant has operated continuously without problem since then. The CIL plant allows for the selective processing of some of the higher grade ores, larger than 10 g/t gold, at the Amesmessa site.
Ken Crichton has also initiated a new drilling program to further delineate resources at various ASTER (Advanced Spaceborne Thermal and Reflection Radiometer) anomalies at the site. 76 ASTER anomalies have been reviewed, mapped and ranked with soil samples from the best 26 being sent to a laboratory in Perth, Australia for analysis. The preliminary results of the analysis are expected to be released at some point in late October 2010. Early indications, according to a recent GMA presentation, are that the soil sampling ‘has identified zones of high gold in soils of all anomalies to date’.
Company History
Current Events
GMA Resources posted a quarterly production update today, 6th October 2010.
Gold production was up 19% on the previous quarter with September's figures showing production at 3,059 oz au.
The re-situated CIL plant mentioned in the Executive Summary produced at a 92% gold recovery rate vindicating CEO Ken Crichton's plan to transfer it from their Tirek site. If the production figures continue at the September level, the site will produce a year-on-year amount of 36,000 plus oz au.
Exploration of the site also continues with 2,338 drill samples forwarded to Perth, Australia for analysis.
"Drilling is ongoing in Zone II at the Aster anomaly, known as TA 52, which has elevated gold in soils…
