Thanks gavtech, message understood...Exploration Insights by...

Thanks gavtech, message understood...

Exploration Insights by Robert Tyerman

19/05/2011 Robert Tyerman
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Financial markets ring with debates between those who insist commodities such as gold, oil and copper have had their run and those who, with equal authority, say the ?super-cycle? is still moving higher. The arguments do not change much, but investors, while seizing the opportunities still presenting themselves, should be ready to change tack if the bears show signs of prevailing.

Meanwhile, Botswana-focused copper play Discovery Metals, first highlighted here two years ago at 15.5p, continues to please at 85.5p, with encouraging infill drilling results from its Zeta deposit, as does Medusa Mining,recommended here at 27p in 2006 and at 460p last month and now 512p, with good gold grades and costs at its Co-O operation in the Philippines. Hold on to both for now.

Don?t fling Highland
The same applies to Russia-focused Highland Gold Mining at 166.5p, which continues to expand after upping pre-tax profits 65 per cent to $144.3 million (?90 million, on turnover increased 48 per cent to $244 million in 2010, as it boosted production 22.5 per cent to 200,000 oz at its flagship Mnogovershinnoye (MNV) mine. Cash costs rose by $10 to $496 an ounce, against current market prices of more than $1,500 an ounce. The company ended the year with $167.6 million cash and will fast-track key projects.

Australia-based Range Resources is lifting its stake in onshore Trinidad oil assets with a possible 26.9 million barrels to 90 per cent. The company recently raised ?20 million at 17p and may also accept an oversubscription of ?5 million. It has entered into a heads of agreement to pay $52 million (?32 million) and issue shares worth some ?7.2 million to SOCA Petroleum for a ninefold increase in its present 10 per cent stake in the two licences.

Once these blocks, which Range says hold probable and possible oil reserves of 6.9 million barrels and estimated undeveloped prospective resources of another 20 million barrels, start to produce at the rate of 1,250 and 2,500 barrels a day respectively, the company will issue more shares worth some ?3.6 million, taking its total payment to ?42.8 million.

Range also has interests in Texas and the Republic of Georgia, but its key long-term aspirations lie in 20 per cent of two licences in the ?highly prospective? Dharoor and Nugaal valleys in Somalia?s autonomous Puntland region.

Range shares, which soared during the past year from 3.4p to a 25p high, now trade at 19.5p and still have speculative possibilities.

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