Ive always said I would not start looking at the Gold Explorers untill POG broke through $420, well its done that today and this company in my mind is the best potential producer around, and heres why.

MANAGEMENT

Has two experinced Managers in mining in Mark Parker and John Park, both have extensive exploration management in Africa in mining and have proved themselfs in the past selling out small mines to the big boys.

THE MINES

ZAMBIA.

Here the company as 5 potential Block busters but the REAL GEM of the company Sasere, known as EAGLE EYE is an old Gold mine but recent sampling shows that it could provide massive deposits of Copper and Gold.

These are the drilling results we are waiting for. Estimations are fantastic and we could see that the company is sitting on deposits worth many times over of the market cap of the company of circa 12.2 million.

MOZAMBIQUE

Three sites here and Nickel is the one they are looking for. Dont forget Nickel is the highest commodity riser after Gold and is hitting new highs.


TANZANIA

Big prospect here is Miyabi.

African Eagle are carrying out a joint venture with the giant Miner Gold Fields. Drilling results are to be given to Goldfields by 31/January this year.

If results are expected what the management of Goldfields want, African Eagle retain a 30% stake in one massive deposit.

This is an exciting investment but one that is HIGH RISK like any other gold explorer.

We should have news very early on two fronts.

If this news is positive we are looking at one hell of an investment.

Please Dyor and remember your buying and selling actions are in your own hands.

Cheers GF.

ps, up 19% today waiting for the results.

relevant to AFE

Buy Golden Prospect at 27.75p
Argues bear raider Evil Knievil of t1ps.com

I am famous - or should I say infamous - as a shorter of stocks. That is to say, selling shares that I don't own hoping that they will collapse and then as ordinary investors gnash their teeth and wail, I buy back and collect the lolly. If you are looking for a good short right now, Jarvis is - even at 24.5p - free money all the way down.

But I also dabble with buying shares and though I say so myself I am rather good at it. There are some fools out there who base their investments on following fund mangers - so called shrewdies. I am of the view that there are more shrewdies in the penguin pen at London Zoo than there are in the City and Golden Prospect rather proves my point.

A couple of years ago when this company had net assets of 10p a share (of which half was cash) two "shrewdies" sold their entire holding at 4p or less. Yours truly lapped it up and now has a notifiable interest. Indeed I have kept buying (to a high of 36p) and with the shares at 27.5p I am more than a few lunches ahead.

Run by the wise old coot Malcolm Burne, Golden Prospect invests in an array of small mining companies and its net assets are currently worth - I believe - just under 40p a share. In addition it has direct stakes in a couple of exploration projects which I suspect are worth another 4p per share or so.

But gold and thus gold shares will go higher. The idiots in charge of the west (Bush, The Wicked Witch and her consort Mr Blair, and the fools from Euroland) think that the answer to all our problems is to print more of their paper currencies and are doing so with wild abandon. No more gold is being produced by God. Hence basic economics dictate that gold must appreciate against currencies whose worth is being devalued by the day.

Since gold mines are operationally geared to the price of gold, another $100 on the gold price (which will in time happen) will cause gold shares to soar and with it so will the NAV of Golden Prospect. Before I even start to sell this share I would expect the NAV to hit 80p and the shares to see 60p. It may take a couple of years but I am a patient man.

Legendary bear raider Evil Knievil outlines all his trading positions on EvilCast - a fortnightly webcast available only on website www.t1ps.com. The website also features the tips of Tom Winnifrith who also recommended this share at just 5.25p. For more details click here

The Case For Gold.

(Extracted from the Annual Report of Golden Prospect PLC, A 25% Shareholder In Minesite)

The gold rally over the past two years has largely been an anti-dollar phenomenon but with all the increased geopolitical tension and general financial worries, gold really has assumed the status of an insurance policy against bad times. Its safe haven status has been restored and investor appetite for this dependable alternative asset class is steadily increasing. Although historically a volatile asset to own, gold has proved itself time and again in periods of financial stress and geopolitical turmoil. What we can say about todays climate is that the only certainty is continued uncertainty, i.e. the dollar is still stressed out, inflation is gathering pace, terrorism breeds investor caution and the general unrest will not go away. Interest rates are rising, consumer debt is exploding, house prices are teetering on the edge of a big fall almost everywhere and industrial equities on both sides of the Atlantic are witnessing waning support. Seasoned market investors are holding cash, buying gold and inflation linked bonds.

There are still huge imbalances in the US economy and these will need to be corrected at some point, creatingfurther degrees of financial strain. Some pundits believe that the growing deficits in the US could eventually result in the creditor nations deciding that they no longer want to hold US dollars. If that day comes, the greenback is going to plummet.

Furthermore, to quote from many economic forecasts, it is quite possible that we will soon see a breakdown of the triangular relationship between gold, the dollar and the euro. There have already been indications in recent months that gold may move in an independent direction and if it starts climbing again in all currencies, this will be the most potent bull signal of all. Investment funds would pour in!

Central Bank selling of bullion is also drying up.Whereas previous Central Bank gold sales contributedto a weakening in the gold price and negative sentiment within the investment community, the signing of the new agreement to limit sales over the next five years has provided some additional stability and positive sentiment to the gold market has returned. Even more importantly the European Central Bank confirms that gold will remain an important element of the global monetary reserves.

The supply demand equation is also going golds way.Capital costs of new mining projects are soaring and there is a lack of new mining projects coming on stream. By and large, major discoveries have not been made in the sector for some years, so the upshot is that new big supplies are not being found. Moreover, short term interest rates, although increasing, have not risen high enough to result in more hedging and gold producers are unlikely to hedge gold in a bull market environment. In the past, mining companies have used low gold lease rates to sell gold forward in order to raise money to finance the construction of new gold
mines, but we now believe that the large, global gold producers will continue to unwind their hedge booksat an increasing pace.

Factor in a huge boom in China, India, Russia and Brazil and the ultimate buying power of gold that this will eventually produce, together with the continued erosion of confidence in the dollar, then demand must exceed supply for some many years to come. It may be worth recalling that gold last hit its zenith in the late 1980s when inflation was rising and the world had suffered two major oil price shocks. Just as America inflated away the reckless spending then so it can be expected to do the same again to address todays looming fiscal problems. The FEDs usual way out of this problem in the short run is to print money. These current financial events, the rise in oil price and other deteriorating economic trends are all building a case for significant inflation down the road and thereby the most excellent environment for physical gold and gold equities.


AND Now Copper:


Date : July 7, 2004



Low Stock Levels Are Still The Key.


By Rob Davies


Judging by the price action in the market one could be forgiven in thinking that the steam had completely gone out of the hard commodity market. Over the week aluminium dropped US$10 a tonne; copper lost US$2 and zinc US$9.5/tonne. Nickel was the only base metal to register a substantial move. But its gain of US$257 a tonne needs to be viewed in the context of metal priced at US$15,240 a tonne, not the US$960 a tonne that zinc trades at.

On the face of it there were lots of excuses for traders to move prices around. The first upward move in US interest rates for four years was a significant event. But it hardly came as a shock to the market. Moreover, the increase was only a quarter of a per cent and took the rate to a still very reasonable 1.25 per cent . An increase in the demand for money, as indicated by rising interest rates, should be good for metal prices. But that good news was almost exactly balanced by a much weaker rise in US employment than was expected. An increase of 112,000 was half the forecast number of 250,000 and was sufficient to push money into the safety of US treasuries and drop the yield on the 10 year bond to a 2 month low of 4.44 per cent

In effect the market was saying why should we take risks on equities and commodities when there is so little pressure on employment even after four years of falling short-term interest rates. If employment growth stays weak it implies a less robust spending pattern in the future. While it is true metals did not perform strongly last week, it is equally valid to point out they didnt fall either. The reason for that is the support they continue to enjoy from low inventory levels. On the London Metal Exchange copper stocks are only just over 100,000 tonnes. That isnt much in a world that uses around 10 million tonnes a year and where rumours that a mine in Chile responsible for 3 per cent of world output may go on strike are rife.

Coppers role in the generation and transmission of electricity is its key USP (unique selling point) to use the modern vernacular. China has just completed its massive Three Gorges hydroelectric power scheme, but still suffers from a lack of electricity. To rectify that it is adding the equivalent of the whole generating capacity of the UK to its network every two or three years. That will need a lot of copper, as well as other metals like aluminium.

In the short-term low stock levels will keep the market supported, but there is perhaps more reason to be concerned about long-term prices. Given the scale of consumption now, the already high rate of recycling, and the long lead times of finding and developing new mines the market could stay tight for a very long time. There are few new large mines under development right now and unless some more start being planned soon the current portfolio of mines will be reaching the end of their lives before new ones are developed. But in todays markets few people are prepared to invest on a ten-year view.

I think we also need to have a broader picture of where Gold is heading. Take a look on the outlook coming from Merrill Lynch, one of the best (if not the best) fund managers in the world. Also the FTSE World Gold benchmark supports this. See link below. Thanks

http://www.mlim.co.uk/shared/pdfs/mlf/ut-gold-fs-uk.pdf?silo=individual-investors

Ticking up again. 7.89% so far

NEW YORK, July 16 (Reuters) - COMEX copper futures surged to a three-month peak Friday morning, fueled by fund- and stop-loss buying, as traders said they saw room for more gains due to supply-side concerns in the market and a weaker dollar.
By 9:40 a.m. EDT, active September copper <0#HG:> jumped 1.85 cents, or 1.4 percent, to $1.3060 a lb, the highest for futures since April 19, in a $1.2850-to-$1.31 range. Spot July was up the same at $1.3080, and later months were 1.55 to 1.85 cents higher.
"The market is looking for higher prices because of the labor unrest and the weak dollar, and because warehouse stocks are down considerably," a COMEX floor trader said. He added that first chart resistance, basis September copper, lurked at $1.31 a lb, and then at $1.3150-$ 1.3240. Support was pegged down at around $1.2890.
The dollar fell against the euro after a muted rise in core U.S. inflation for June was reported, signaling the Federal Reserve is likely for now to keep its promise to be "moderate" as it raises interest rates.
June consumer prices rose 0.3 percent, versus expectations for a rise of 0.2 percent. But the "core" number that excludes food and energy rose 0.1 percent, below forecasts for a gain of 0.2 percent.
The greenback extended its retreat after separate data showed U.S. asset inflows fell in May. The euro rose above $1.24 * up about 0.3 percent on the day. A softer dollar boosts immediate demand for dollar-priced metals like copper from traders holding foreign currencies.
Fundamentally in copper, analysts say strong metal consumption mixed with steadily falling refined stocks in exchange warehouses has lent a bullish tone to the market.
On the labor front, No. 3 copper producer Grupo Mexico SA's La Caridad operations are unable to make deliveries this week due to a strike there.
At Grupo's U.S. unit Asarco Inc., workers said Thursday they will resume contract talks with the company in mid-August. Some 750 workers have threatened to go on strike if talks between the company and copper unions are not resolved.
At the London Metal Exchange, three-months copper gained to $2,832 a tonne from its last close at $2,806.
COMEX is a division of the New York Mercantile Exchange.

more on gold.

Gold to hold above $400 this year and next
Mon 19 July, 2004 13:24



LONDON (Reuters) - Gold prices are seen holding an average above $400 an ounce for the foreseeable future as the dollar stays weak and world security worries keep big investors hedging their bets on where money is safe, a Reuters poll shows.

The global survey of 24 analysts pointed to an average gold price of $404.50 a troy ounce in 2004, up 11.2 percent on 2003. Gains were then seen being pared to an average for 2005 of $402.50, up 10.6 percent on the 2003 level of $363.83.

Analysts' predictions for 2004 were down around 3.5 percent compared with a similar survey conducted in January as expectations of broader investment flows had disappointed.

"2004 promised so much and simply failed to deliver," Ross Norman of TheBullionDesk.com said.

Gold's broad uptrend started in 2001, when the metal was near 20-year lows.

The advance gathered momentum as dollar weakness, global security worries and producer buy-backs of reserves in the ground that they had sold on forward markets pushed world prices to a 15-year peak in early January 2004 of $430.50.

Producer buy-backs have since slowed, but the market should remain firm as the spotlight concentrates on the dollar, where weakness makes gold less expensive for holders of other currencies.

"We are dollar bears, despite the fact that the second quarter of 2004 saw the dollar improve...We remain bullish on the gold price -- tempered to be sure," economist Martin Murenbeeld said.

"Issues such as debt -- government and household -- factor into our longer-term thinking and are gold-positive, while terrorism and its potential impact on oil prices are on average also gold-positive," he added.

BROADER INVESTMENT STALLS

Investment funds piled into commodities, including gold, in 2003 against the backdrop of a struggling dollar and heightened geopolitical tension.

But analysts said the market had been only partially successful in its efforts to attract new investors with products such as gold-backed securities traded on stock exchanges.

"The expectation of a sustained rally was based on the assumption that a retail and wholesale investment market would be launched and indeed gather momentum," TheBullionDesk's Norman said.

"The market has failed to inspire the investment community and so the indomitable laws of supply/demand are re-asserting themselves and gold is re-establishing itself in a rather uninspiring trading range."

Average 2004 price forecasts for gold in the poll range from $376.00 to $422.25, but even the low was above the average forecast for 2004 of $350 when a similar poll was conducted in July 2003.

Frederic Panizzutti of MKS Finance said economists' expectations of a slow but almost confirmed world economic growth cycle -- plus moderate, but increasing inflation -- should be positive for commodities prices.

"Geopolitical instability and concerns will be another source of support, in particular for precious metals," he added.

"These few but major factors should enable demand for precious metals to grow over time and generate additional price strength mainly in the last quarter of 2004," he said.

Any news anyone?

i sent an email to mr Parket and could not reveal any news.

Its been a long time now without any posative news/resalts. Xmortal do you think we will here somthing soon?

I really hope so, it is testing my patience this one... I am not very confortable at moment as one would expects some kind of news by now

Just a little good news could make AFE go north right now! other mining shares are doing well.

gone up a bit. Level 2 at 4/4 all MM on the smae b/o now. maybe some good news coming our way. some buys now

I hope so, as GF said AFE has massive potential. Good luck to all. goal.

Evening all, + 3.64% today. well its a start, fingers cross for tomorrow. goal.

Moneyplus, if your out there switch your private message facility on and I have some news for you on this one, you were asking last night.

cheers Gf.

News out next week guys.

cheers Gf.

Thanks Gf.

GF: don't be tight! how do u know there are news next week? how good are they?

Check your PMs xmortal, sent it through this afternoon.

cheers GF.