RE: Gabon Licenses Yes, great news acquiring more licenses in a promising region. In addition to the greenfield development in Gabon, there are also the JV propoerties with Orogen, so while we wait for more news on Timok, I found the below update from Orogen to be interesting:
() has been notching up impressive grades from exploration efforts on the Gindusa West area of its Deli Jovan project in Serbia. Proactive catches up with the firm to see where it's heading in 2013.
Q: Can you briefly outline what the firm is about and where its ambitions lie?
A: We see Orogen’s core strength as its ability to recognise high quality gold project opportunities at an early stage and to bring these up the value chain through further exploration and development. Our aim is to build the company through acquiring rights to these projects, focused on Europe and near-Asia.
Q: What are your key plans for 2013?
A: At our Deli Jovan gold project in Serbia, we aim to define a maiden mineral resource by further exploration, with a significant drilling programme planned. We will also further test our exciting new gold vein discoveries at Gindusa West by trenching and drilling with a view to adding to the potential resource base. Elsewhere on the property we will undertake detailed evaluation of other target zones, including the Latovo area where historic underground exploration has defined a second mineralised shear zone carrying very high gold grades, which is undrilled to date. This work will take us through to our 75% earn-in target on Deli Jovan.
In addition, we aim to acquire an interest in at least one further gold project in line with our ambition to build value in by recognising opportunities in the current recessionary climate.
Q: What is your funding situation going into next year?
A: Orogen is in a strong position entering 2013. Our successful share placing in late 2012 sees us with about £1.7mln in the bank. We also recently signed a 3-year, £5 million Equity Finance Facility with Darwin Strategic which can help us to take Deli Jovan through to feasibility without regular recourse to our shareholder base, as well as allowing us to more aggressively pursue new project opportunities.
Q: What are the firm's key milestones in the early part of 2013 ?
A: At Deli Jovan, the field programme is scheduled to re-start in early spring after the winter thaw. Investors can look forward to news flow from the infill/extension drilling planned for the Gindusa mine area as we work towards defining a mineral resource there. We are also planning with enthusiasm for the follow-up programme at Gindusa West where Orogen has made potentially game-changing discoveries of hidden, high grade gold veins. Concerning new projects, we are hopeful of early agreement in relation to a further gold opportunity and will inform shareholders on this as soon as possible.
Q: Why has Serbia been so relatively unexplored?
A: Essentially this is down to historical factors. Much of Serbia sits along the geological belt which has an exceptional mineral endowment. There are two major copper-gold mines operating at the current time. However, until recent investment by international minerals companies, little exploration was carried out from the latter stages of the Tito era, through the break-up of Yugoslavia, as economic resources were diverted elsewhere. Announcements of major new gold and copper/gold discoveries during 2012 by Avala Resources and Freeport/Reservoir Minerals confirm the world-class potential of the region. Orogen recognised this untapped potential when deciding to invest in the under-explored Deli Jovan district. Our confidence has been vindicated by demonstrating that gold mineralisation at the shallow historic mines continues to at least 300m depth and through the discovery of previously unknown gold zones.
Q: Can you say more about operating in Serbia. What are the pros and cons?
A: We have found Serbia to be a good place to work. Among the positives are good infrastructure – extensive motorway and secondary road systems, access to cheap hydro power, low cost base, positive attitude to mining based on long historic experience, access to a pool of experienced contractors and technical staff, relatively low tax regime. The positives have clearly been recognised by major international mining companies, as current explorers include Freeport and . The ‘cons’ mainly relate to uncertainties, such as final resolution of the various Balkan conflicts that rumble on and the fact that no new mines have been brought to production in recent years, with the permitting process therefore being untested.
Q: Are there other underexplored regions in Serbia/the Balkans that you are looking at?
A: There are certainly further mineral discoveries to be made in Serbia and the Balkans and we have reviewed some other prospects in the region. However, we don’t confine our search for new gold opportunities to the Balkans. We will look within the wider European region for the projects that best fit our requirements in terms of prospectivity, location and cost of entry. We see the current squeeze on juniors as an opportunity for to gain access to quality projects, using our strong financial position to advantage.
Q: What is your outlook for gold prices more generally?
A: We have seen some greatly divergent opinions on the gold price over the past few years, many of which have been well wide of the mark. From my viewpoint, I see the price remaining steady through 2013 due to the on-going economic uncertainties and strong fundamental demand.