For those that have lost sight of the not so distsant past . We are likley to have a dilution agreed and valid but this thing is more likley to be a co maker than breaker. Never trust a man that says trust me ,does that extend to ":honest"?? I have no idea where this will end but a zero sum is unlikley imo
LONDON (Mineweb.com) -- Burkina Faso – “land of the honest man”. This translation comes from Marc Flory, Managing director of AIM Resources, who was in London last week for the Mines and Money conference organised by Mining Communications.
The latest news from AIM Resources concerns the Perkoa zinc deposit in Burkina Faso. Flory confirmed that that the bankable feasibility study is due by the end of this year and that when this is added to the developing gold mining companies in the country it will make the mining sector the largest contributor to Burkina Faso’s GDP (other companies include Orezone, High River, Etruscan, and Cluff). Burkina Faso’s GDP in 2004 wasUS$4.49 billion, growing at 4.1% per annum. It is one of the poorest countries in the world with per capita GNP of only $230 and with more than 80% of the population relying on subsistence agriculture. Only 2.4% of the land is arable and only 0.18% under permanent crop. This makes mineral resources one of the particularly attractive areas for development.
Burkina is connected by rail to Abidjan in the Côte d’Ivoire, 1,150 km away.
Mr. Flory regards Burkina Faso as the easiest country that he has worked in during the last 30 years. The development of the mining code, which was emplaced in 2003, was done symbiotically between the government and the mining industry and the local industry is duly happy with the result. It is similar to that of Senegal and effectively subscribes to the highest standards, having looked at the Chilean and Ghanaian models and distilled the best features of both. The code gives the government a 10% free carried interest in mining ventures. Environmental requirements, meanwhile, are at the World Bank’s standards. According to the World Bank’s table of “key indicators for ease or difficulty of operating a business” in 2004, business formation in Burkina Faso is regarded as more difficult than OECD average, it is however better than countries in the surrounding region. Complexity in enforcing contracts is higher than th OECD average, largely due to higher legal costs. We have outlined the company AIM’s background before, but for the sake of completeness, AIM is listed both on the ASX and on the AIM exchange in London. The company’s mission is to grow shareholder value through the acquisition and responsible development of major mining ventures in Africa and the intention is to build an asset base that generates outstanding returns for shareholders. AIM is to work mainly in the southern and West African regions, in democratic countries with reliable mining codes. The company is currently capitalised at £13.8 million (US$24 million) and numbers J P Morgan Fleming, ANZ Nominees Ltd. and BHP Billiton among its major shareholders. Managing Director Marc Flory has substantial experience in both the financial and mining sectors, having held senior positions at Goldfields of South Africa, JCI, CIBC and the AMP, at which latter he conceived and headed up Australia’s first international Private Capital Fund, running the Direct Investment Unit that invested directly in mining.
Perkoa is the most advanced among AIM's four projects, the others including the Mumbwa project in Zambia, comprising iron, copper, gold and silver (in joint venture with BHP Billiton and not dissimilar to Ernest Henry); the 100%-owned Mokopane project in South Africa (platinum group elements) and an early stage joint venture in Ghana with Equator Resources Ltd with respect to gold.
Perkoa had previously been explored by BHP Billiton in conjunction with Metorex before BHP pulled out as a result of low zinc prices. AIM has clean title, which it purchased from BHP in January 2005, with BHP taking stock in AIM as part of the transaction.
The deposit boasts very good geology with a JORC-compliant measured and indicated resource now given, at a 5% zinc cut-off grade, as 6.72 million tonnes at 16.4% zinc (1.1 million tonnes zinc content) and 35.4 grammes per tonne of silver. It is clean metallurgically and there is still significant exploration potential on existing tenements. The major question facing the company at the moment is that of transportation. A logistical study is underway over the available options, which include trucking to Togo, to Ghana or using the rail link to Abidjan. The company is also considering some trucking arrangements with Cluff.
Financing is due for completion in the first quarter of 21006, and offtake arrangements should be finalised by then also; project development will follow in the second quarter and production is expected in June 2007. Revenue two years out is estimated at something in excess of US$100 million.
In keeping with its good working relationship with the government, AIM is indigenising this operation as far as possible, and is looking to expand the local infra-structure through the provision of water, while schools and other local organisations will benefit from the supply of excess power. A trust is also to be set up to help develop the local infrastructure.
With GDP currently only at $4.49 billion and at perhaps $5 billion when Perkoa comes on stream, the addition of US$100 million in basic revenue is clearly an attractive preposition for the government as it adds about twenty basis points to GDP growth. If the existing harmonious relationships are maintained then the term symbiosis will be well chosen
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