For those interested in investments that hold very large potential and a certain amount of risk, African mining opportunities may be one way to go. The opportunities available are many and the rewards great, but one is never quite sure what will or may occur in a changing economic and political environment. Some regions are quite safe while others present significant challenges. Making an assessment and an informed decision is the key. Losing everything is possible but making a fortune could become reality.
Keegan Resources Inc., a junior natural resources company, explores and develops natural resource opportunities primarily in Ghana, West Africa. The company holds 100% interest in several properties located within the Esaasa gold belt, a known and productive source of gold and other primary metals. The company is based in Vancouver, BC Canada.
Although the prospects of working within West Africa offer the perspective of disruption and conflict, Ghana, West Africa does not. The region and country represent favorable conditions, both economic and political. A relative statement to be sure but given potential returns one that rates quite a bit higher than on other regions of the continent. Additionally, the company indicates that it has put highly skilled professionals in place to carry out feasibility and testing as its two focus projects move forward. In this respect, the company’s Esaasa project is taking the lead with 2.28 million ounces of indicated gold reserves and 1.65 million ounces of inferred reserves. The company’s second targeted project, located within the same region, the Asumura project, is testing similarly and holds the potential to return as the Esaasa project is expected to.
When using the word “professional” one may always wonder what is meant. In the case of the home office in Vancouver, BC Canada, however, the word does seem to apply as it relates to the financial aspects of the company. Assessing the financial picture of the company, as it moves forward, it does appear that homework has been done and wise choices made. Although a 3.5% concession fee to the government of Ghana may look to be a little high, other aspects of the balance sheet indicate that this junior natural resources company is planning for the long haul and a nice profit.
Investing in a junior mining company, especially in an uncertain region of the world, can be a bit more risky, but it does appear that Keegan Resources is on top of its game and ready to produce a profit for those interested in taking their shot.