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

This is one to buy as once it finds gold, it will be a shooting star.

More funny price movements this morning.....

Is something afoot.

Regards
Amar

it is 8.75p now...strong buy as gold findings is imminent

Look to go long of Gold

Suggests Zak Mir of Zaks-TA.com
Gold has been in recovery mode ever since our Prime Minister in waiting Gordon Brown jettisoned this country's remaining reserves just above the low point of the current cycle near $250. This was a great fundamental buy signal, But ever since then the price of gold has started to push to the upside. The best period for the metal so far was almost exactly a year ago when those gold bugs that had bought into the sector of the stock market which saw many of the small caps soar. But as is often the case with using the stock market as a proxy for an underlying commodity, the gearing in your favour is very often not as strong as the gearing against you. This meant that even when gold broke the initial highs of 2004 late in the year, gold stocks remained subdued.

And in some ways this was a correct response given the way that much of the reason for the spike in gold at the end of last year was only due to the decline in the dollar, with the metal being practically flat in terms of its value in euros.

But this does not necessarily mean that it is the end of the road for gold. The trading clichfor a bull market is to buy on dips and the decline from $450 certainly qualifies in this request. What can be seen on the hourly chart is the way that the 2004 support line runs through $420.Therefore any dips towards this zone should be regarded as buying opportunities. Given that we are currently only some $3 away from the 2004 support line, one could go long of gold with a stop loss of as little as $5 on an end of day close stop loss basis. Only a end of day close below $418 ends the buy dip scenario where we see a top of 2004 price channel target above last year's high as high as $470.

UK-Analyst

Article from todays IC. From the ADVFN board.
Oliver Baring, chairman of AFG another former J Teeling company was busy putting the final touches on a deal to merge AFG with a private South African outfit headed up by some heavyweight industry players. A deal should be formaly announced next week.

Interesting stuff. Hope for a prosperouse week, next week.

azhar
this was another of my stocks, i dont hold it now

There would be more upward movement with a merger in hand

akel44 why not? this is just the begining. These will be going places within 2 years.

I'm in it before they strike gold bigtime

Bizarre spread on this 7.5 bid and 9.0 offer, but when I topped up this afternoon I got 7.85 (and it was marked down as a sell). Seems daft because the advertised 16%+ spread must put off a lot of potential investors.

any idea why the rise today?

any idea why the rise today? - sorry dunno what happened there did'nt mean to post twice!

African Gold raises 1.04 mln stg via 6p/share placing
AFX


LONDON (AFX) - African Gold PLC said it raised around 1.04 mln stg through a placing of 17.3 mln shares with institutions at 6 pence apiece.

The proceeds will be used to fund the company's exploratory drilling programme at its Konongo and Banka gold deposits in Ghana.

newsdesk@afxnews.com

ak/

African Gold PLC
29 March 2005




African Gold plc (the "Company")


The Company was notified on 24 March 2005 that, in accordance with Part IV of
the Companies Act 1985 (as amended), Artemis Investment Management Limited, and
certain of its subsidiary companies, have a notifiable interest of 13,075,000
shares, representing 4.19 per cent. of the issued share capital of the Company.


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

www.africangoldplc.com

LONDON (AFX) - African Gold PLC said it is confident that gold resources
from the Konongo mining licence in Ghana will exceed initial estimates of more
than 950,000 ounces.
The company said it now has two potential mines on the Konongo licence.
It also said results were encouraging from the Banka mining licence,
about 50 kms to the south of Konongo, and that a 40-hole drilling programme
covering 2,500 metres will start shortly.
"We are delighted with these results," said co-chairman Oliver Baring. "The
initial results at Banka are particularly encouraging as they indicate that the
licence may host a new significant gold resource," he added.
newsdesk@afxnews.com
jc

Nice movement today any views anyone?

Slow steady climb is what we want.

Mining Sector Remains Lucrative Despite Challenges

The Herald (Harare)
NEWS
April 21, 2005
Posted to the web April 21, 2005

By Jeffrey Gogo
Harare

ZIMBABWE'S mining industry has remained attractive to both foreign and local investors at a time when other sectors appear to have lost their lustre.

While a number of manufacturing companies (and other related firms) have downsized operations or are relocating from the country altogether, citing a difficult operating environment, the mining industry has proved otherwise.

The sector has remained lucrative, luring multinational mining conglomerates into an industry were vast resources of platinum and diamond have been discovered.

Zimbabwe has the largest undeveloped near surface platinum reserves in the world - around 165 million ounces in reserves along the Great Dyke region - while Murowa Diamond Mine in the Midlands has a 14,5 million carat reserve, which is equivalent to a year's production in South Africa.

It therefore does not come as a surprise that foreign mining firms have shown keen interest in investing in Zimbabwe's mining industry, which has huge potential for growth and generation of precious foreign currency.

Mining experts have also classified Zimbabwe among the top six African countries where mining activities are secure.

Such developments work in the country's favour, particularly given that Zimbabwe has intensified efforts to increase mineral production and boost its foreign currency earnings

During the last three years, gold production has dropped significantly, subsequently putting a strain on the country's already depleting foreign exchange coffers.

The mining sector contributes about 4,3 percent to Zimbabwe's gross domestic product.

The industry also accounts for about 40 percent of the country's foreign currency earnings, but the sector has not been that robust in recent years, shrinking by 10 percent in 2003 before projections that the sector would grow by 12 percent last year.

However, there appears to be some excitement from international mining companies to establish operations in the country.

Last year, a syndicate of African business people, Mwana Africa, bought into then collapsing Freda Rebecca gold mine from a disillusioned Anglo-American Gold for US$2,5 million.

The black consortium must have been somehow fascinated by the availability of huge opportunities in the country's mining industry, given that only in 2003, Mwana Africa had acquired listed nickel producer, Bindura Nickel Company, another former Anglo asset.

The black-owned consortium has other interests in the DRC, but from the look of things - having purchased two operational mines in Zimbabwe alone - it seems Mwana Africa's primary area of investment has been here, where most of its assets are concentrated.

Critics would argue that Anglo's rapid disposal of its gold assets might serve as a sign of the firm's lack of interest in Zimbabwe's mining sector. But then, they would have to offer a satisfactory explanation for the sister company's strong interests in development of the multi-billion-dollar giant Unki Platinum project in Shurugwi.

Anglo-Platinum is developing the Unki project, which is expected to commence operations in 2007.

Officials at the company are fully aware of the huge platinum reserves in Zimbabwe. Anglo Platinum must have a good reason to invest in the country.

It is not only Mwana Africa and Anglo Platinum which have shown interest in seeking a share of Zimbabwe's mineral wealth.

In July last year, international mining firm, Rio Tinto plc, former parent company to locally listed RioZim, received shareholder blessings to take up 78 percent in money-spinning Murowa Diamond project.

Rio Tinto effectively spun off RioZim, which is now holding the remaining equity in Murowa, developments described by the former holding company as a complete departure from gold mining into the lucrative diamond business.

What happened is that Rio Tinto swapped a significant part of its equity holding in RioZim in exchange for a controlling stake in Murowa Diamond.

In a similar show of confidence, in 2003, South African business tycoon Mr Mzi Khumalo, once described as South Africa's very own Tiny Rowland, bought into Independent Gold Mine, now operating under Metallon Corporation.

The company now plans to list on the JSE while recent announcements by Impala Platinum, holding company for Independent, seem to suggest that the group was keen to increase production in its Zimbabwe mines, and millions of dollars would be pumped in during this project.

However, the industry has had its fair share of problems. There has been rampant closure of mines during the last five years as producers cried foul over unviable gold prices, as well as a perceived hostile economic climate that was not conducive for operations.

Below-expectation producer prices culminated in side-marketing, a development which robbed Zimbabwe of millions in foreign earnings which never found their way into the official coffers.

Government efforts to empower indigenous people by acquiring stakes in foreign-owned mining firms operating in Zimbabwe appear to have been less successful. Some consortiums formed by local business people to acquire the stakes set aside for them have failed to raise the required funds to translate their intentions into reality.

For instance, the National Investment Trust failed to raise the US$31 million to acquire the 15 percent equity in Zimbabwe Platinum Mines, in which last-minute bids had to be made by Nkululenko Rusununguko Mining Company to buy the shareholding. But they, too, came unstuck when it came to paying for the stake.

Mr Mzi Khumalo is also understood to have offered to buy out Manyame Consortium's 15 percent shareholding in Metallon, as the locals are reportedly failing to raise the necessary funds.

However, be that as it may, Zimbabwe's mining sector has the potential to grow and could actually emerge as the country's biggest foreign currency earner given that traditional foreign exchange cash cows - tobacco and cotton - are struggling.




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Copyright 2005 The Herald. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com).
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