Found this in the Australian 25/4/12.Glory's Greek project could...

Found this in the Australian 25/4/12.


Glory's Greek project could prove a surprise packet for gold stocks
BY: BARRY FITZGERALD From: The Australian April 25, 2012 12:00AM
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Glory Resources (GLY) GOLD stocks have been beaten up something shocking of late. If it is not fears that gold's 10-year run is coming to an end, it is fears that cost pressures will eat up margins.

Then there is the sort of operational disappointment, be it from weather events or overly ambitious development timetables, that a company of Newcrest Mining's status can spring on the market, not once, not twice, but thrice.

Having said all that, it has not been all one-way traffic downhill for Australian Securities Exchange-listed gold stocks.

The not so humbly named Glory Resources (GLY) is a case in point. It has just about doubled since the start of the year to the 38.5c a share at the close of trade yesterday. It is the sort of performance we used to expect from ASX-listed West African gold explorers.

But this one is a bit of a surprise packet, given its key project, Sapes, is in northeastern Greece. The home of democracy has not been known as a friendly place for mining investment in the modern era.


But surprise, surprise, the place is now more focused than ever in sweeping aside the sort of permitting constraints that have long held back development of its known mining potential.

A mining industry expansion is one of the few options available to the Greeks as they set about paying their way in the world.

Proof that Greece was fair dinkum about expanding its mining industry came last year when environmental clearance was given for a gold project there owned by the Canadian and British-listed European Goldfields.

That was followed up earlier this year with an environmental approval for Canada's Eldorado Gold (which now owns European Goldfields as a result of a successful $2.4 billion takeover bid) for its Perama Hill gold project. Perama Hill is all of 20km from Glory's Sapes project. What's more, Eldorado is Glory's biggest shareholder with 19.99 per cent.

Now Eldorado is to the Greek goldmining industry what ouzo is to the drinks industry. It has recently outlined $1bn in expansion-development plans for its interests in the country and it has long been assumed it will one day pounce on Glory, which itself is working towards getting Sapes into production in 2014.

This year's near doubling in Glory's share price pretty well matches up with approvals on Perama Hill picked up by Eldorado in February.

The idea there is that Greece is open for business when it comes to getting mining going. So Glory is now an $86 million company. It is further back with Sapes in the Greek permitting queue so its market value may be about right. But it is confident it will have preliminary approvals in the bag by the end of June and final approvals for a development by the end of the year.

If that proves to be the case, it is in line for a rerating on several fronts. Sapes is a nice project.

A grade of about 10g of gold a tonne and a resource base of 830,000 ounces tells you that. A feasibility study in 2010 indicated a seven-year mine life would yield 510,000oz of gold at an operating cost of less than $US300/oz. Capital costs would be relatively modest too at about $US100m.

But that is only part of the story because there is good reason to expect that across time, the resource base at Sapes will grow into something much bigger.

There has been little in the way of exploration since the main deposit (Viper) was outlined all those years ago. That is something Glory wants to rectify.

It has an application in for approval to get exploration moving again and hopes that could be to hand by June 30.

That's when things could get interesting. Eldorado the shareholder would be wishing Glory all the best with its hunt for more ounces at Sapes.

But Eldorado the would-be predator would not want to see too much value added to the company before doing what most assume it will do: bid for the 80 per cent it does not already own.

Tony Sage's Cape Lambert would be in the winner's box either way. It holds 16 per cent of Glory after having sold Sapes to the company last year.

Sapes was part of the broader 2009 deal under which Cape Lambert paid $135m for the assets inside the collapsed CopperCo.

It is what Cape Lambert does.


Quality article explaining what could be possible in north eastern Greece. IMO get out there and research the co. Because it has the sky as a limit once the permits are done. And for my opinion on the first few lines, c'mon this doubled on news of another mine 20k down the road