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

Hey calm down guys and as for you Dil if you don't like AFG then what are you doing on this thread. If you have a negative view supported by info then I would be very interested to here your views.

LONDON (AFX) - African Gold PLC said significant gold mineralisation has been intersected in initial drill holes at Owere/Konongo in Ghana.

In a statement, the company said the drilling confirms that substantial widths of highly-mineralised wall rock exist in the mine workings.

It said the results of all holes have confirmed the presence, continuity and grade of mineralisation in just one of nine such ore-bodies.

Previous drilling indicated the potential of the wall rocks to host an economic ore body and the current programme is focused on converting inferred and indicated gold ounces to measured ounces.

Drilling is ongoing and further results are expected in the very near future.

Co-chairman John Teeling said: "These are excellent results and fully support our belief that we can turn the 900,000 oz indicated gold resource into a significant gold mine."

newsdesk@afxnews.com

nice start to the day

More to come yet.

Mining industry set for record year in 2005
By Jeremy Grant in Las Vegas
Published: September 28 2004 00:33 | Last updated: September 28 2004 00:33

The global mining industry is likely to enjoy another record year in 2005 amid continued growth in manufacturing and Chinese demand for commodities such as coal and iron ore, the US National Mining Association (NMA) said on Monday.


The NMA's upbeat assessment of the industry's prospects comes as mining equipment companies - such as Caterpillar, Komatsu and Terex - are experiencing record orders.

Demand for new trucks, shovels and other mining equipment was "very nearly outstripping" manufacturers' ability to fill orders, according to NMA chief executive Jack Gerard.

He said concerns that a slowdown in the Chinese economy might puncture demand for mining equipment had proved unfounded.

"Simply put, worldwide demand has struck what has been a relatively quiet market with nearly hurricane-force winds. As a result, the state of the industry, both here and abroad, looks very positive for 2005," he said at the opening of MinExpo, the world's largest mining exposition. He foresaw "little or no slowing in demand" for mining equipment over the next year.

The NMA, which represents the interests of more than 300 US companies in mining, said growth next year would come in spite of a slight slowdown in US manufacturing activity as a result of higher energy prices.

It predicted US coal production next year would probably be 1.15bn tonnes, up by 4 per cent compared with this year. Demand for US coal exports would be likely to continue to be strong next year "particularly as China is not expected to export as much to the world market", the NMA said. That would help deplete stockpiles of US coal by some 25m tonnes below the already relatively low levels of the end of 2003.

The NMA warned that the industry faced a shortage of skilled workers capable of handling machinery in an industry that is rapidly becoming more reliant on technology for mineral extraction.

But officials said that the industry was better prepared to ride out the cyclicality of the commodity markets as a result of recent mergers and acquisitions and stronger financial discipline.

John Nils Hanson, chief executive of Joy Global, a Milwaukee-based supplier of mining equipment, said large publicly-listed mining companies were not increasing capacity "just for the sake of increasing capacity."

He added: "There's a greater tendency for them to match long-term contracts with capacity expansion and to make certain that when capacity gets added it's not just for the purpose of lowering prices but allows them an early return on capital employed."

He acknowledged that commodity markets were always likely to be cyclical but he expected mining companies to be "less reactive" to price movements. "We'll find [mining equipment] cycles that are more like waves than spikes and troughs."

http://news.ft.com/cms/s/c481f6a4-10dd-11d9-a73b-00000e2511c8.html

Results are out
They look very good to me.

From ADVFN
=====
Ogeretla - 27 Sep'04 - 22:57 - 3944 of 3961


12.06 g/t and 10.90 g/t over large widths ? That's impressive !

From www.gold.org :

"What is the average gold mining grade?

The grade of ore refers to the proportion of gold contained in the ore of a particular mine and is quoted in grams per tonne (g/t). The type of mine depends on the depth and grade of the ore. At a rough estimate, the larger, better quality South African underground operations are around 8-10g/t (Anglogold), while the marginal South African underground mines run at around 4-6g/t. Many of the operations elsewhere in the world are open pit mines, which run at lower grades, from as little as 1g/t up to around 3-4g/t. A more significant piece of information than average gold mining grade is cost per ounce, which is a combination of grade (grams/tonne) and operating costs (USD/tonne)."

So, it looks like we're at the upper end for the best intersections :-)

Now, how quick can they get it out and processed !

Og
====

African Gold PLC
28 September 2004
contacts:

John Teeling + 353 (1) 833 2833
Jim Finn +353 (1) 8332833
Oliver Baring + 44 (0)7785 320567

PRESS RELEASE

AFRICAN GOLD PLC the AIM listed gold miner is pleased to issue results for the
year ended 31st March 2004:

Highlights:

New directors, shareholders and projects are transforming African Gold
into an active, vibrant African gold explorer.

Excellent drill results are being obtained on the Konongo gold property in
Ghana including one hole running 16 metres at 12.0 g/t gold.

The objective in Konongo is to prove up an existing 900,000 oz. gold
resource into a reserve capable of sustaining
a 100,000 oz a year mine.

African Gold is actively exploring three additional properties on the
Ashanti Gold belt in Ghana. The Ahanta prospect in particular is showing very
encouraging results.

Two gold acquisitions in Africa are under evaluation

The corporate target is to become a 500,000 oz a year independent African
gold miner.

Statement Accompanying Results

African Gold has been transformed in the last twelve months. What, a year ago,
was a struggling small miner in Zimbabwe, has become a vibrant company, active
in exploration in West Africa, with a new board, new strategy and new financing.
Even the Zimbabwean operation has perked up. The Inez mine is being refurbished
while ten new prospecting licences have been gazetted. The transformation
remains a work in progress so expect significant developments in the coming
months. The strategy of the company is clear, to become a medium sized London
based independent African gold miner.

Before getting into the details of how we are going to achieve our strategic
targets, let me summarise our current operations. We now have four gold
properties in Ghana and a significant 250 sq km presence in the fabled Ashanti
Gold Belt. The top priority is an extensive 10,000 metre drilling programme on
the Konongo licence area where reports indicate a gold resource of over 900,000
ozs. Initial results are filtering through. Results from three of the first five
drill holes are shown below:

Hole No. N E RL Dip Azimuth From(m) To(m) Interval(m) g/t Au

OBAPC-003 10040.2 10126.7 290.5 -45o 270o 103.0 109.0 6.9 3.06
115.0 120.0 5.0 6.03
127.0 129.0 2.0 4.17

OBAPC-004 10000.2 10137.5 294.3 -53o 270o 133.0 138.0 5.0 5.08



OBAPC-005 9960.0 10123.7 296.2 -46o 270o 70.0 79.0 9.0 2.79
107.0 123.0 16.0 12.06



Further south, on the Ashanti Belt, our Ahanta property is being sampled. To
date, trenching has produced good results. A Reverse Circulation drilling
programme will commence in the coming months.



The final concession in which we have an interest is Akrokeri, beside the Obusai
mine, which has produced 42 million ounces of gold. The Akrokeri mineralisation
is similar to that in Obusai. Five targets have been identified.





Our Zimbabwe operations, which were on care and maintenance for the past few
years, are being revived. The local economy, which has been a disaster, has
shown some signs of life. Inflation is expected to fall to 200% p.a. by the end
of 2004!! An attempt has been made to link the official exchange rate to
inflation. In recent months we have begun to refurbish the plant, and to drive
new levels on the East shaft. The Inez Mine is estimated to contain 250,000 ozs
of gold. A refurbished plant and an underground development programme could
produce 20,000 ozs of gold a year. We have also identified, applied for and
expect to be awarded, ten new Exclusive Prospecting Licences.



These acquisitions are the first step in a strategy to become a 500,000 oz a
year producer. The group of investors who acquired 29 per cent of African Gold
in December 2003 have the skills, experience and contacts to implement this
strategy. If we are successful with our current projects, we could produce up to
200,000 ozs a year. Three of the new investors, Oliver Baring, Hank Slack and
John Anderson joined the board and are active in providing advice and direction.
Oliver Baring has become joint chairman with me. It will be my pleasure to
propose all three for election at the Annual General Meeting.



The expectation of an improved deal flow has been realised. We have evaluated a
number of acquisitions and one merger. We have been very selective. There is a
vast reservoir of African gold mining experience on the board. We know from
often bitter and expensive experience that gold mining is a tough business.
Wonderful drill results often turn into disappointing mill grades. Issues like
grade control, metallurgy and operating costs are often badly examined in
feasibility studies. The optimistic forecasts of promoters are hard to deliver
from underground.



What is found thousands of feet in the ground, rarely matches the computer
printouts. But there is a substantial opportunity in gold. We believe that
African Gold has the abilities required to take advantage of this opportunity.



We are gold bugs. We believe in gold and in the future of gold. Gold retains two
fundamental characteristics which have existed for 4,000 years, a medium of
exchange and a store of value. The world is becoming a more uncertain place
politically and economically. Major political forces are shaping themselves for
serious confrontation.



The U.S. budget deficit and the deficit on overseas trade and budget are
unsustainable. The U.S. dollar, the glue of our world economy, is fragile.



The current price of $400 an oz has brought welcome relief to many mining
companies' but in terms of Euros, Sterling or Rand, the improvement is minimal.
For the longer term we believe that the price must rise.



New gold production does not meet primary demand. The gap is expected to grow.
Central bank sales and hedging confuse the picture but it is certain that new
mines will be needed in the coming years. New sources in Peru, Chile, Siberia
and the Former Soviet Union (FSU) will cover some of the gap but Africa is the
natural home of gold production. Africa continues to be the worlds largest
producer though political instability in the past 40 years has made it a
difficult continent in which to make money. There are now welcome signs of
growing political stability. This is reflected in increased exploration and
growing output. But Africa remains a continent where local knowledge and
experience is vital. The African Gold board will use their experience and
contacts to acquire properties with significant potential. Two large scale
exploration ventures are currently being evaluated while the acquisition of a
producer is being examined.



Finance


African Gold is now a serious explorer with activities in five separate
locations. In the past year we raised almost 4 m which is being used for
property acquisition and exploration. Good projects are easy to finance. We have
indicative offers of finance for the further development of our Ghanaian
activities.



Future

The future for African Gold is bright. Gold looks good, Africa is improving,
commodities may be in the early stage of long and overdue, price rise. We have
the people, the experience and the ability to take advantage of emerging gold
opportunities in Africa.



John Teeling
Chairman


27 September 2004



CONSOLIDATED PROFIT AND LOSS ACCOUNT AS AT 31 MARCH 2004

2004 2003



TURNOVER 8,833 27,576

Cost of sales (15,148) (24,062)

GROSS (LOSS)/PROFIT (6,315) 3,514


Administrative expenses (237,574) (124,259)



OPERATING LOSS (243,889) (120,745)


Interest payable and
similar charges (1,697) (542)


LOSS ON ORDINARY ACTIVITIES
BEFORE TAXATION (245,586) (121,287)


Tax on loss on ordinary
activities - -


RETAINED LOSS ON ORDINARY ACTIVITIES
AFTER TAXATION (245,586) (121,287)



LOSS PER SHARE (.15p) (.08p)


LOSS PER SHARE - diluted (.15p) (.08p)





CONSOLIDATED BALANCE SHEET AS AT 31 MARCH 2004






2004 2003




FIXED ASSETS

Tangible assets 15,952 33,459

Intangible assets 251,230 -

267,182 33,459


CURRENT ASSETS


Stocks 222 451
Debtors 2,590 3,172
Cash at bank 2,471,422 4,310


2,474,234 7,933

CREDITORS : (Amounts falling due
within one year) (100,630) (134,178)




NET CURRENT ASSETS/
(LIABILITIES) 2,373,604 (126,245)



TOTAL ASSETS LESS CURRENT
LIABILITIES 2,640,786 (92,786)



CAPITAL AND RESERVES


Called-up share capital 2,348,677 1,387,899
Share premium 4,842,803 2,815,295
Profit and loss
account - deficit (4,550,694) (4,295,980)


SHAREHOLDERS' FUNDS/(DEFICIT)
- ALL EQUITY 2,640,786 (92,786)




CONSOLIDATED CASH FLOW STATEMENT AS AT 31 MARCH 2004



2004 2003



NET CASH OUTFLOW FROM
OPERATING ACTIVITIES (257,092) (15,892)


RETURNS ON INVESTMENTS AND
SERVICING OF FINANCE



Interest paid (1,697) (542)



NET CASH OUTFLOW FROM
RETURNS ON INVESTMENTS
AND SERVICING OF FINANCE (1,697) (542)



CAPITAL EXPENDITURE AND
FINANCIAL INVESTMENT


Payments to acquire tangible
fixed assets (262,638) (24,178)



Receipts from sales of
tangible fixed assets 253 6,756




NET CASH OUTFLOW FROM
CAPITAL EXPENDITURE AND
FINANCIAL INVESTMENT (262,385) (17,422)


NET CASH OUTFLOW BEFORE
FINANCING (521,174) (33,856)


FINANCING:


Issue of ordinary
share capital 2,988,286 -


NET CASH INFLOW
FROM FINANCING 2,988,286 -




INCREASE/(DECREASE) IN CASH 2,467,112 (33,856)



Notes:


The financial information contained in this announcement does not constitute
statutory accounts within the meaning of Section 240 of the Companies Act 1985.
The figures for the year ended 31 March 2003 have been extracted from the
statutory accounts which have been filed with the Register of Companies and
which are available on request from the Company Secretary. The auditor's report
on those accounts was unqualified and did not contain any statement under
section 237(2) or section 237(3) of the Companies Act 1985. The statutory
accounts for the financial year ended 31 March 2004 have been approved by the
Directors. The auditors' report on these accounts was unqualified and did not
contain any statement under section 237(2) or section 237(3) of the Companies
Act 1985.


A copy of the audited Annual Report for 2004 will be mailed to shareholders and
is also available for inspection at the Company's registered office at 20-22
Bedford Row, London WC1R 4JS.




African Gold is an AIM listed company (AFG) with gold mining interests in Africa


www.africangoldplc.com









This information is provided by RNS
The company news service from the London Stock Exchange

LONDON (AFX) - African Gold PLC, which has transformed itself from a small miner in Zimbabwe to a company active in exploration in West Africa, said its full-year pretax losses widened but that it is optimistic for the future.

Pretax losses widened to 245,586 stg in the year to end March from 121,287 stg in the year-earlier period as sales dropped to 8,833 stg from 27,576 stg.

In May, the AIM-listed gold miner bought 70 pct of three mining licences covering 125 sq km in the Konongo/Owere district of the Ashanti gold belt in Ghana. It now has four gold properties in Ghana.

The company said two gold acquisitions in Africa are under evaluation.

It also said excellent drill results are being obtained on the Konongo gold property in Ghana.

In Zimbabwe it said its operations, which were on care and maintenance for the past few years, are being revived.

The company is optimistic for the future.

'Gold looks good, Africa is improving, commodities may be in the early stage of long and overdue, price rise,' said chairman John Teeling.

newsdesk@afxnews.com

So the rally was short lived. Well I'm holding for 20p and will not be selling before then. Always bought in with long term view. I must say I'm a bit surprised why it has gone WELL below 9p as institutions bought in then. I bet they will be well cheesed off.

AFG leading the miners up today

Up 20% now

why is it shooting today?

SAN FRANCISCO (AFX) - Gold futures closed near 425 usd an ounce Friday to
close at their highest level in six months, gaining more than 3 usd for the
week, as a weaker-than-expected US jobs report fueled a steep drop in the
dollar.
"[The] weaker job-growth than forecast, combined with falling consumer
confidence, runaway energy prices and constant geopolitical tensions worldwide,
have given gold all the ingredients necessary for a run to new highs in the
coming days and weeks," said Peter Grandich, editor of The Grandich Letter, an
investment advisory publication.
Data on US employment Friday showed that the economy added fewer jobs than
expected in September.
The news sent the dollar reeling and that, in turn, sent more investors to
gold as a hedge against financial losses.
Against this backdrop, gold for December delivery climbed 5 usd to close at
424.50 usd an ounce on the New York Mercantile Exchange after peaking at 426
usd. It hasn't closed at a level this high since April 7. Last Friday gold
closed at 421.20 usd.
"Ahead of the US election, we would not be surprised if some moderate asset
reallocation out from US dollar-denominated assets into euro-denominated assets
would occur," said Frederic Panizzutti, an analyst at MKS Finance in Geneva.
"Any such move would ... result in a somewhat temporary stronger euro, and
ultimately help gold to strengthen."
"Gold is rather poised to play one more time its short-term safe heaven
role," he said. "New highs seem fairly possible in October."
Kevin Kerr, a senior trader at Kwest International believes the next target
for gold is 428 usd. The contract peaked at an intraday level of 436.50 usd on
April 1 -- that was the highest futures level in about 15 years.
But Dale Doelling, a chief market commentator at Bullion.com, warned,
"Volatility is off the charts, so we'll need to watch gold closely here."
"If the market can hold these levels, then new highs will likely be made
soon. If they can't, we could see gold move lower very quickly," he said.
"Gold is also getting a boost form the rest of the metals complex, including
industrial metals like copper," said Kerr.
December copper climbed 4.2 cents to close at 1.4695 usd a pound. Futures
prices for the metal have been trading at levels not seen in the futures market
since 1995. It's up almost 5 pct for the week.
Silver, which is both a precious and industrial metal, tacked on 7.8 cents
to end at 7.295 usd an ounce, trading at levels not see since mid-March. It's
also up about 5 pct from last Friday.
Tracking inventories, copper supplies were down 249 short tons at 47,475
short tons late Thursday, according to Nymex.
Silver stocks were unchanged at 107 mln troy ounces, while gold inventories
stood at 5.12 mln troy ounces, also flat from the previous session.
Elsewhere in the metals market, December palladium closed at 234.45 usd an
ounce, up 1 usd, while the January platinum contract rose 4.70 usd to end the
day at 843 usd an ounce.
In equities, major metals mining indexes closed higher, mirroring strength
in the metals futures.
"Believing higher gold prices are in the cards, mining shares should be
among the groups seeing positive money flows for the foreseeable future," said
Grandich.
The Philadelphia Gold and Silver Index rose 2.1 pct to close at 104.26
points, its highest level since early April. It's up 3.2 pct for the week.
The CBOE Gold Index added 2.6 pct to end at 95.16 points, a level not seen
since January. It's up from last week's close of 91.5.
The Amex Gold Bugs Index closed at 237.44 points, up 2.6 pct. It hasn't
traded at levels this high since mid-February and it's up 3.5 pct for the week.
/mas

US close (Friday): Gold breaks higher on dollar woes
October 8 (DowJones) -- Gold futures on the Comex division bolted $5 an ounce higher Friday on fund and trade buying, spurred by the drop seen in the U.S. dollar in the wake of a weaker-than-expected U.S. employment report. The most active Dec contract settled $5 higher at $424.50 per ounce. U.S. non-farm payrolls grew by 96,000 jobs during September ... the report was weaker than what had been expected by analysts. The Labor Department said employers also created fewer jobs in August than first estimated. The unemployment rate held steady at 5.4%. The news applied pressure to the U.S. currency, and rendered dollar alternatives such as gold more appealing to investors. With sentiment in the gold market already firm because of the strength seen in oil prices, sellers of gold proved sporadic and were easily overrun by the fund and trade buying, dealers said. However, earnest bullion bank and trade selling appeared at $426 to cap Dec futures prices on the early charge, and the selling in that area kept that level out of reach for the rest of the day. But, as the U.S. dollar remains on the back foot and oil prices linger near historic highs, speculators are expected to remain friendly toward gold over coming days to cushion prices on any fall and keep overhead targets such as $428 and $430 in view.

http://www.usagold.com/DailyQuotes.html

up 10% today. if this hold up we may be going back to 14p within 4/6 months

Was up yesterday and is holding up. A good sign fro things to come.

Great drilling report up 13%

RNS Number:3203E
African Gold PLC
21 October 2004



AFRICAN GOLD PLC the AIM listed gold miner is pleased to announce the following:



Further Gold discoveries at Konongo in Ghana



Highlights:

* A further nine drill holes contain good gold mineralisation, these are in
addition to the five results reported in September.
* Three of the new holes contain grades of 10 grams or greater over widths
of 5 metres or greater.
* All fourteen drill holes analysed have commercial grade gold.
* Results are awaited from additional holes.
* Drilling is ongoing.



African Gold is pleased to report substantial gold mineralisation in nine
additional holes drilled in our Konongo gold property in the Ashanti Gold Belt
in Ghana. These results follow the noteworthy discoveries in the first five
holes announced September 27th.



All nine holes contain good gold grades. The best results are 10.77 g/t gold
over seven metres in hole 6, 11.28 g/t gold over 5 metres in hole 10 and 11.12 g
/t gold over 7.9 metres in hole 14. The latest results of the drilling programme
are as follows:




Hole No. From(m) To(m) Interval(m) g/t Gold

OBAPC -006 105.0 106.26 1.26 7.24
108.0 109.0 1.0 5.23
110.0 117.0 7.0 10.77
118.0 120.0 2.0 2.90

OBAPC-007 91.7 93.25 1.55 1.78
104.0 105.0 1.0 3.20

OBAPC-008 127.0 128.0 1.0 6.98
143.0 145.0 2.0 5.02

OBAPC-009 104.0 107.0 3.0 4.50
OBAPC-010 85.0 90.1 5.1 11.28
OBAPC-011 140.9 146.0 5.2 3.60
OBAPC-012 115.0 117.0 2.0 2.55
145.0 147.2 2.2 7.85

OBAPC-013 130.0 132.0 2.0 4.60
OBAPC-014 109.3 115.0 5.8 4.10
141.0 148.9 7.9 11.12






A number of further holes have been completed and are being analysed. Results
will be reported in the near future. Drilling continues.



John Teeling co-chairman said, "We now have 14 holes all reporting commercial
grade gold mineralisation. The current drilling programme is on one of nine ore
bodies on our licence, all showing similar geological characteristics. We
estimated a gold resource of 900,000 ounces. This looks easily obtainable and
may be conservative."



Contacts:



John Teeling + 353 (1) 833 2833



Adrian Lungan +233 (24465) 6485

I like the bit in the last paragraph where John Teeling says,we estimaated a gold resource of 900,000 ounces. This looks easily OBTAINABLE and may be CONSERVATIVE.