I don't believe that the mentioned "African Gold Zimbabwe" is AFG, but the article does demonstrate rapid resurgence of E&P in Zimbabwe:

Mining Giants Plan Massive Diamond Prospecting

The Herald (Harare)

January 22, 2004
Posted to the web January 22, 2004

Harare

MINING giants, De Beers Zimbabwe Prospecting Limited and Circle Three Mining Corporation are proposing a massive diamond prospecting project that will see the two companies prospecting for the mineral in Gweru, Harare, Bulawayo and Kadoma mining districts.

The two mining companies intend to prospect for diamond in areas covering a total of 448 180 hectares.


Another company, African Gold Zimbabwe, has also undertaken to prospect for gold on two areas measuring 120 550 hectares within the Harare and Gweru mining districts.

De Beers Zimbabwe Prospecting Limited, Circle Three Mining Corporation and African Gold Zimbabwe have applied to the Mining Affairs Board for an exclusive prospecting order for 12 areas under the four mining districts.

In the latest issue of the Government gazette, the Mining Affairs Board said De Beers, Circle Three Mining and African Gold Zimbabwe intend to prospect for diamonds and gold over an area of approximately 568 730 hectares from the three areas.

"The applicants intend to prospect for diamond within the areas, which have been reserved against prospecting pending determination of this application.

"Prospecting authority is sought upon registered base mineral blocks within the reservation," read part of the notice.

One of the two diamond prospecting projects to be undertaken by Circle Three Mining measures 65 000 hectares and is bounded by a line commencing on the Zimbabwe-Zambia border approximating five kilometres.

All areas, which have been earmarked for prospecting are within the 15 000 hectares and 65 000 hectares range and are mostly in the traditional mineral bearing areas of the country.

The proposal to prospect for diamond in the country comes at a time when the US$41 million Murowa Diamond Mine has started to operate following the successful relocation of 141 families which were on the mining site.

Mining is one of the sectors which has been depressed over the last five years but some of the players in the industry have said investors should look at non-traditional minerals.

An example that is often given is that of platinum, which is fast becoming the world's most lucrative mineral.

The mining of diamond in Zimbabwe is also fast gaining pace and it is expected that some of the mining projects would create a lot of employment.

Relevant Links

Southern Africa
Mining
Zimbabwe

good news all round really, the position taken by the MM's at the close and delayed trades show that either news is due tomorrow or they are running very short of stock. If news doesn't appear at the open don't be surprised, AFG have a habit of leaving it till later in the day. It is hard to analyse trades because the MM's play games but if the last trade is a sell significantly above the market close price then they rae pretty desperate indeed and if news is out tomorrow, it will probably very good. Good luck to all holders!

News didn't come today though the price held up nicely, only closing down slightly at 13.5-15.0 pence. The RSI was overbought so in the absence of news a 3.3% drop is not bad.

News is due soon so could come anytime.

Some large buys were reported today including a 700,000 buy at 14.5 pence, 450,000 buy at 15 pence and a 425,000 buy at 14.875 pence.

Basic Fundamentals Still in Place

By David Stein, M.Sc., Mining Analyst, Sprott Securities Inc.
The Gold Report
February 12, 2004

www.theaureport.com

The Gold Report talked with Sprott Mining Analyst David Stein to get his thoughts on the latest happenings in the gold market. He calls it a "corrective phase," and believes that the basic fundamentals for a rising gold price are still in place.

Right now, I believe were seeing a correction that actually started in the beginning of December, when equities topped. That tells me they were anticipating this downward move in the price of gold. The HUI index (The Amex Gold BUGS [Basket of Unhedged Gold Stocks] Index) reached its high on December 1st, I believe, and its been trending down ever since in what I would consider a corrective phase. Obviously, the price of gold didnt actually peak at $425 until January 13th. So it is a month and a half later, and now we are seeing the price of gold trending down as well. I think the gold price needed to correct anyway; it was a little overheated.

In making a broad comment on gold equities, we have used the HUI Index, which we believe most closely characterizes the basket of gold stocks that we cover. Over the last three years, the HUI Index has touched down to its 200-day moving average (MA) a number of times during periods of consolidation for the gold sector. Only once in the last three years (February-March 2003) did the HUI Index cross below the 200-day MA for a significant period of time, and we believe that this was due to an exceptional external event, in this case the Iraq conflict. Of course this event turned out to be an exceptional buying opportunity for gold stocks. The other major correction since the beginning of the bull market for gold equities occurred in June 2002, ending a seven-month run that started in November 2001. In this case the correction was succeeded by a fairly lengthy consolidation period that took seven months to reach the same top, and another six months to finally break the same level.

Overall, despite the correction, I think that the basic supply and demand fundamentals have not changed. What is happening specifically today (Jan. 27) is that some people are getting the sense, based on the Fed comments yesterday, that an interest rate hike may be in order before the end of the year.

There are a number of factors that we have outlined in the past that have all contributed to golds rise; including U.S. dollar weakness, supply-demand fundamentals, producer dehedging and safe haven buying in turbulent geo-political times, however, during the past seven to eight months, the decline in the U.S. dollar against the other major worlds currencies has emerged as the primary driver of the gold price. The Bush Administrations struggle to provide stimulus for the U.S. economy appears to be working as planned, but as with all battles, there are casualties and it appears the first casualty has been the U.S. dollar. Historic low interest rates have deflated the currency. Beyond low interest rates, the fiscal policy of the Bush administration and its impact on U.S. government debt is worrying to international investors, highlighted in statements made recently by the IMF. With the U.S. dollar plummeting, many astute investors are looking to gold as a storehouse of wealth in uncertain times.

It is our opinion that the supply/demand story for gold could signify a new trend for gold that could last well into the decade; it may provide some boost to the current market, but more importantly, should support prices well into the future. Our forecast calls for gold breaking $500 per ounce in late 2004, averaging $450 per ounce in 2005 and $400 long term.

(February 12, 2004)

http://www.kitco.com/ind/GoldReport/feb122004.html

Gold tops $414 on low rate signals
Metals prices, mining shares mainly higher

By Myra P. Saefong, CBS.MarketWatch.com
Last Update: 2:28 PM ET Feb. 12, 2004

SAN FRANCISCO (CBS.MW) -- Gold futures closed above $414 an ounce Thursday, as weak U.S. economic data combined with comments from the Federal Reserve's Alan Greenspan to indicate that U.S. interest rates will remain low for now.

"Gold renewed its climb when the economic numbers suggested weakness overall, which would suggest interest rates won't rise anytime soon, and the U.S. dollar should weaken further," said Peter Grandich, editor of investment publication The Grandich Letter.

U.S. retail sales fell a seasonally adjusted 0.3 percent in January, the first decline in four months, as auto sales screeched to a halt, the Commerce Department reported Thursday. See full story.

Against that backdrop, gold for April delivery climbed $3.50 to close at $414.20 -- just 20 cents short of the New York Mercantile Exchange session's intraday high. The contract has now climbed in four of the last five sessions to gain a total of nearly 4 percent.

Grandich pointed out that the gold market saw "strong physical buying when the market corrected," and as a result, "believe[s] we have the foundation to go to new highs in the next 4 to 8 weeks."

Greenspan's comments on the U.S. economy to the Senate mirrored those he made Wednesday to the House committee. He also pointed out that the dollar's decline has been orderly and will, with time, help the nation's current account deficit narrow.

The Fed chairman "gave his Good Housekeeping seal of approval today on the weak dollar," said David Gilmore, foreign-exchange analyst with FXA. See full story.

The U.S. dollar bounced back from one-month euro lows Thursday, but the greenback's downtrend against its European rivals remained intact, said analysts.

http://www.marketwatch.com/news/yhoo/story.asp?source=blq/yhoo&siteid=yhoo&dist=yhoo&guid=%7B3D3458B9%2D3BEA%2D43D0%2D9DC1%2DB9A4DD57C5AE%7D

Opportunities to add on any weakness could exist today before the good news comes out.

could it be today sue

Hi there,

I think we could get some news this afternoon judging by how the price has behaved today. If not today then would definately think early next week.

What's ur target price Sue?

Hi Joe,

I have a target price of 30 pence by the end of February on these. John Teeling is back this weekend so should get some announcements next week.

In addition, look at the trades reported since 3.30pm. Some huge buys have been reported:

250,000 buy at 14 pence
350,000 buy at 14 pence
490,000 buy at 14.5 pence
300,000 buy at 14.5 pence.

They were all reported as single protected transactions, so this means someone had an order in to make these purchases. The four big buys are marked as T trades so there is no doubt that they were buys.

The price could really rocket next week.

Plus we have seen other good buys come through this afternoon.

Positive Candidate (Short term) - Feb 12, 2004
Has risen 1040% since the bottom on 30 Sep 2003 at 1.25. Has broken through the floor of a rising trend channel. This indicates a slower rising rate at first, or the start of a more horizontal development. RSI is overbought, which indicates a potential short-term reaction down. The stock has marginally broken up through the resistance at p 13.70. An established break predicts a further rise. High risk with an average difference between the lowest and the highest price of the month of 57%.

Positive Candidate (Medium term) - Feb 12, 2004
Has risen 2180% since the bottom on 7 Apr 2003 at 0.63. Is within a rising trend. Continued positive development within the trend channel is indicated. RSI is, however, overbought. The stock can still rise further, and we should see a decreasing RSI before this is used as a negative signal. The stock has support at p 1.50. High risk with an average difference between the lowest and the highest price of the month of 57%.

hello SueHelen, I am new to all this and i have been reading your comments, you seem very wise. Are there anymore web sites that you recommend are worth looking at and do you have any advice for the novice?

Hi

Can anybody tell me & give opinions on how's AFD doing?

Hi batty hill,

www.africangoldplc.com
www.kitco.com

www.moneyam.com is quite a good website to start learning and keeping up to date with what is happening on the markets. My favourite.

From Today's Independent Newspaper:

Press Comment: Independent Market Report

African Gold, which recently unveiled the purchases of gold assets in Ghana's Ashanti Belt, ticked 0.12p higher to 14.37p on whispers that another acquisition is on the cards. According to yesterday's market gossip, the deal would be quite substantial for the AIM listed company, which is presently valued at 30m. A source close to African Gold confirmed that the group was looking at a major acquisition but indicated that a deal is by no means imminent.

Good to get some press mention.

Source:http://business.iafrica.com/features/302238.htm

Indaba bullish about commodity market
Justin Brown
Posted Fri, 13 Feb 2004

This year's Indaba Mining conference was abuzz with excitement about the bullish market for commodities, especially precious as well as base metals and bulk commodities like iron ore.

This was a change from last year when the key issue was South Africa's empowerment and transformation programme, with investors', bankers' and mining executives' heads still spinning, some even dazed, about the approach of a new mining order in the country.

Empowerment remains a very key issue to many mining executives, but now it is more a background issue and one that companies want to sort out as soon as possible so as to provide certainty to their shareholders and get on with business as usual.

There was also excitement at this year's conference about China, the world's most populous country, which is rapidly increasing its consumption of metals and minerals.

India, with a population of about a billion people, is seen as the next developing market to see a boom in its demand for commodities, which at this stage is low from a per capita view point.

At the conference there were signs of Afro optimism, with AngloGold's CEO Bobby Godsell and Ashanti Goldfields CE Dr Sam Jonah both calling for a paradigm shift on how African gold miners are rated relative to their other global peers, especially in North America.

Others speakers also expressed optimism about the fortunes for mining on the African continent.

However, concerns were raised about the extent of HIV/Aids in sub-Saharan Africa and its effect on mining in particular.

Another area of concern was the decline in mining exploration.

Bullish on commodities, metals

In US dollar terms, many of the precious and base metals as well as bulk commodities are at or near long-term highs.

Gold touched a 15-year high in January of about $430 while platinum, used mainly in auto catalysts and jewellery, reached a 24- year high of $868/oz in early 2004.

Globally, South Africa is the number one producer of both gold and platinum.

In base metals, nickel and copper have recently touched long-term highs too.

In the area of bulk commodities, there is also very strong demand for South Africa's iron ore, chrome and manganese-all used in the production of production of steel.

Some executives in industry are calling the current bull run one of the biggest in 25 years for metals and minerals the inputs of industrial production.

China devouring commodities, India next

The China dragon, the world's fastest growing major economy, is one of the key sources of growth in the demand for commodities.

However, demand for commodities is growing in all major economic players in the global economy with Japan showing very early signs of recovery, while Europe and the US are on the way to recovery.

India was also identified as the next big developing market to follow China in increasing its consumption of commodities.

In the case of China, Kumba Resources is currently missing out on the rapid expansion of demand for iron ore for China due to South Africa's rail and port infrastructure not keeping pace.

As a result, Kumba's competitors BHP Billiton, Rio Tinto and Companhia Vale do Rio Doce (CVRD) of Brazil which can more easily raise output, are increasing their share of iron ore exports to China.

China is the world's number one producer of steel, with output in 2004 expected to climb 11 percent to 245 million tons from 220 million tons in 2003.

Not only is the world's most populous nation number one in steel it is also a fast growing consumer of platinum, gold, diamonds, copper and aluminium.

Empowerment, mine legislation

On the first day of the conference, Mineral and Energy Minister Phumzile Mlambo-Ngcuka announced that the government will promulgate the Mining and Petroleum Development Act by May 2004.

Mining executives welcomed the announcement after having waited since October 2002, when the empower charter was finalised.

It is unclear whether the Royalty Bill, which seeks to introduce royalties the revenue of South African minerals and metals, will be de-linked from the Act and promulgated at a later stage.

Within five years or by May 2009 South African miners will have to meet the requirements of the empowerment mining charter, with the key requirement being that empowerment interests hold a minimum of 15 percent of the country's mining industry.

Signs of Afro-optimism

Many speakers are the Indaba exuded confidence that Africa was set, in the long-term, for better times.

AngloGold's Godsell, ahead of his company's merger with Ashanti, called for an end to Afro pessimism.

At the time of AngloGold's formation in 1998, the international gold industry had an investment caste system, he said.

"Global investors rated North American companies most generously, then came the Australians and then the Africans," Godsell said.

"In this regard some quite new thinking is needed in regard to risk rating," he added.

"I suspect that the tragic events of September 11th 2002 had profoundly altered the calculus of risk. Equally in the business world the Enrons, WorldComs and Parmalats come as an unpleasant reminder that there is no life economicus without risk," Godsell said.

Regarding, the imminent merger of Ashanti and AngloGold, Godsell said the new group had to demonstrate the capacity to create wealth for shareholders, employees and the communities and countries that host the group.

"My hope is that in doing this we can be a small, but concrete part of our continent's renaissance," he added.

Anglo American deputy CE in South Africa Lazarus Zim said that Anglo saw Africa as a continent that was rich in resources and minerals and the group foresaw excellent opportunities.

Zim also called for the creation of a climate conducive to attracting long-term investment in Africa.

"There are positive signs in Africa. There is peace in the Democratic Republic of Congo and a resolution of the conflict in Liberia," he added.

The New Partnership for Africa's Development was also noted as a positive development.

"You can make money on this continent," Zim said.

Indaba attendance a record

The Mining Indaba, the ninth, saw a record attendance of delegates.

Over 2000 delegates pre-registered for the conference, well ahead of last year when the final delegate count was about 1800 people and talk was that close to 3000 delegates attended the three days this year.

The Indaba also moved its venue to the ultra modern glass-and-steel structure of the Cape Town International Convention Centre, away from its old headquarters at a local hotel in the Mother City.

The conference is the world's leading gathering for mining executives, government policy makers and the finance community interested in African mining.

Three-hundred-and-fifty companies and 37 African governments sponsored the Indaba.

I-Net Bridge

What effect might the new share issue have on AFG and in fact how do share issues work. (Newbie investor)