re: ggn voluntary suspension Could be a gold hedge blowup (ala...

re: ggn voluntary suspension Could be a gold hedge blowup (ala SWG) or ....

http://metalsplace.com/metalsnews/?a=2236

9 Sept 2005

Junior gold miner Gallery Gold said the development of its second African gold mine was on track with first gold expected in early 2007, trebling the company's gold output.

The Buckreef project in Tanzania will initially add 140,000 ounces a year from the first quarter of 2007.

Construction of Buckreef is due to start early next year after the completion of a feasibility study.

Gallery Gold commissioned its first mine, Mupane, in the land-locked African nation of Botswana last October and said it would pour 115,000 ounces of gold in 2005/06 from the flagship mine.

It hopes to lower cash costs at Mupane from current levels of $US235 an ounce down to $US210 an ounce.

The price of gold in Sydney on Thursday was $US445.375 per ounce.

At its developing Buckreef project Gallery has recently increased the resource to 1.91 million ounces and Gallery business development manager Michael Anderson said he expected that to grow.

"Our hopes are that we can find further additional ounces to make this a sustainable producer on a basis that is bigger and better than Mupane," he said.

The company is also looking at other ways to grow the company into a mid-tier gold miner, including acquisitions of other African focused companies.

"We continue to keep a very proactive watching brief for additional opportunities in Africa," Mr Anderson said.

The company also has a number of joint ventures, including with major miners Barrick Gold and De Beers.

Gallery could also add nickel to its commodity exposure, holding tenements surrounding nickel miner LionOre Mining's Tati nickel mine.

"Clearly the prospectivity for nickel in those leases is very high," he said.