Pan African (PA) are using the sale of Manica to partially fund their acquisition of Evander Gold Mines, which produces 100,000 ounces a year, effectively doubling PA's South African output.
The spin out of Manica into Terranova was part of a capital raising exercise for PA, which is ok, as long as the PA executives who will run Auroch decide to devote enough time and capital into it.
Interesting to the hear the new MD/CEO say the target for the next 12 months is to prove up an additional 300k-400k ounces from the northern parts of the tenement that have had some previous drilling. First impressions are that this is a modest target. There was no urgency to his tone. I get the impression these guys are going to take their time.
Manica does have some refractory ores (at least according to old PA documents), but these are less of a problem these days, especially with processes like POX, BIOX and Roasting.
Will keep an eye on Auroch, initially to see how fast the management team decide to do things, what drill plans they come up, and how responsive and informative the management team turn out to be. On the face of it, they seem to have a good deal of gold mining experience.
Gw
TNV Price at posting:
36.0¢ Sentiment: Hold Disclosure: Not Held
