Asia Gold Plays to the Fore in Singapore
By Stephen Clayson
29 Mar 2007 at 05:32 PM GMT-04:00
resourceinvestor.com
SINGAPORE (ResourceInvestor.com) -- Asia, and in particular China, has been primarily responsible for the commodities boom we have all been enjoying of late. Although gold is far from a simple demand and supply story as in the case of base metals like nickel and copper, investment demand from Asian countries is a factor in any analysis of the gold market.
But in addition, there is growing interest from Asian investors in investing in gold companies, particularly from internationally oriented financial centres like Hong Kong and Singapore. Witness the successful Hong Kong listings of Chinese gold companies like Zijin Mining [HKE:2899], Sino Gold [HKE:1862; ASX:SGX] and Zhaojin Mining [HKE:1818].
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Accordingly, numerous gold companies with assets in Asia chose to represent themselves at the Asia Mining Congress 2007, which took place this week in Singapore. It is especially encouraging that most of those doing so were juniors, indicating that local investment interest is starting to go beyond relatively mature producing outfits. What follows is intended to be a concise rundown of the most interesting propositions.
Agincourt Resources [ASX:AGC] is looking to shortly complete a definitive feasibility study on the Martabe gold-silver in North Sumatra, Indonesia, and hopes to be producing in early 2009. The company hopes that it has gained control over an emerging gold mining district known as Kapur-Gambir, with the Martabe deposit being just the beginning.
Alhambra Resources [TSXv:ALH] is producing gold from the Uzboy mine in Kazakhstan, and controls 11,000 square kilometres of the prolific Charsk gold belt in Kazakhstan. The company is still coming to grips with the full potential of Uzboy, and is also advancing the Dombraly gold deposit towards production.
Archipelago Resources [AIM:AR] is developing the Toka Tindung gold project in Sulawesi, Indonesia. Toka Tindung has a total resource of 1.7 million ounces, 900,000 ounces of which is expected to be extracted by way of an open pit operation commencing later this year. Archipelago is also involved in early stage gold exploration in Vietnam and the Philippines, and has entered a joint venture over four small gold mines in China.
Indo Gold is looking to float on London’s AIM market sometime this year, and is exploring the Jagpura project in Rajasthan, India. The company’s most advanced prospect is the Bhukia gold deposit, which hosts an inferred resource of 1.74 million ounces. The company hopes that further drilling will yield more ounces.
Indophil Resources [ASX:IRN] controls 32.5% of the sizable Tampakan copper-gold deposit in the Philippines. The Tampakan deposit hosts a 2 billion tonne resource containing 11.6 million tonnes of copper and 14.6 million ounces of gold, making it a true elephant. Xstrata has chosen to exercise an option to acquire 62.5% of the Tampakan project, which is an obvious vote of confidence.
Oceana Gold [ASX:OGD] acquired Climax Mining last year, combining Oceana’s producing Macraes mine in New Zealand with Climax’s development stage assets in the Philippines, which include the Didipio copper-gold project. Didipio has a gold equivalent resource of 2.5 million ounces, and production is being targeted for late 2008.
Oxiana [ASX:OXR] is an established South East Asia favourite among investors, and is now putting itself forward as a poster child for the positive economic effects of major mining projects on host countries, in this case Laos, where Oxiana controls the Sepon copper-gold mine, which has essentially been the making of the company. Oxiana is now looking to branch out through joint ventures in China, Indonesia, Thailand and Cambodia.
Peninsular Gold [AIM:PGL] is reviving the fortunes of the historic Raub mining district in West Malaysia. The company expects to enter production in early 2008, initially through the low cost retreating of existing tailings. Cash flow will then be directed into regional exploration, and the company is targeting the delineation of between 3 and 5 million ounces of gold in Malaysia. The Raub district has already produced in excess of 1 million ounces.
Royalco Resources [ASX:RCO] has assembled a portfolio of ten royalties, including one on the Reefton gold deposit in New Zealand that is expected to enter production around the middle of this year. The company also has a portfolio of early stage copper-gold and gold assets in the Philippines that used to belong to Oxiana, and exploration of these is now ongoing.
Sino Gold [HKE:1862; ASX:SGX] is focussed on the development of the Jinfeng gold project, which has a resource of 4 million ounces and is expected to come on stream this month. Sino Gold hopes to develop Jinfeng into China’s premier gold mine. The company also holds multiple exploration projects in China, and operated the Jianchaling mine from 1998 to until its sale in 2006. Sino Gold is understandably seen bit of a trailblazer for Western miners in China. |
