| Log In | Register Now
London- and Johannesburg-listed mining junior African Eagle, which finds itself mainly in the nickel space, has announced its intention of finding a partner for its 75%-held Igurubi project in Tanzania, where an outlined resource has been increased by around 200 000 ounces to 700 000 ounces of gold. The main challenge for African Eagle, like so many other mining companies, looms up in its relative inability to access appropriate levels of capital. Over the past year, African Eagle's market value (capitalisation) fell back from $28m to $4m, but has recovered sharply in line with the global mining sector's comeback, to around $18m. The news out on Wednesday prompted a rise of 25% and more in the stock price. While gold-related publicity never does any harm, the quantum intensity of mining capital investment was shown last week when Barrick, the world's biggest gold miner, by value and production, announced the go-ahead for the $2.9bn Pascua-Lama gold-silver-copper mine that straddles high country in Argentina and Chile. In April, fresh information on mining Alaska's Donlin Creek was released, including a capital cost of $4.5bn. Barrick has some funding relief for the latter, given its status as a 50:50 joint venture with Novagold. This gives Barrick potential exposure of $4.1bn of capital expenditure for Pascua-Lama and Donlin Creek. There is no go-ahead as yet for Donlin Creek, nor for some of Barrick's other huge potential new gold mines such as 37.5%-held Reko Diq (Pakistan) and 51%-held Cerro Casale (Chile). The capital required for new mines is, of course spread out; at Pascua-Lama, for the next three years or so. BIG GOLD, BIG MONEY
Who Is Paul McCartney Trends on Twitter; Users Wonder Why
Dad Shoots Laptop Video Goes Viral on YouTube After Daughter’s Facebook Rant [VIDEO]
Free Edition
TAKE A TOURWe value your privacy. Your email address will not be shared.
