Irish
Glencar Mining reports 2006 loss but Mali gold project prospects look bright
By Finfacts Team
May 29, 2007, 12:24

Glencar Mining's share price movement over past month.

Glencar Mining plc today announced its results for the year ended 31 December 2006.

The audited results for the financial year show a loss for the period of $1.4 million. This loss includes, for the first time, under new accounting rules, an imputed cost to the company of the issue of share options to Directors and staff. Our accounts are denominated in US Dollar currency and, due to the decline of the dollar over the last year, certain costs whose underlying currency is the Euro, appear as increased costs in US Dollar terms.

Glencar said that 2006 represented a very important one and the good exploration results obtained last year, have continued through 2007 to date. The primary exploration focus is on the Komana West deposit in southern Mali where Glencar is currently completing our fourth phase of drilling. The Komana West deposit is displaying evidence of very persistent, ore-grade mineralisation over extensive widths and all the indications to date suggest that this deposit will prove to be a commercially viable orebody.

The company says that Mali is a country well endowed with profitable gold deposits, but it also possesses the essential fiscal and legal framework to enable these deposits to be successfully worked with attendant benefits to the State as well as the other stakeholders involved in the Nation’s resources. Gold is Mali’s primary export earner and the Government of Mali strongly supports the orderly and efficient extraction of the natural resources in an environmentally responsible way. It is a country rich in culture and tradition, with a young but now well established democratic political system.

Glencar says that the results to date from the Komana West project continue to impress. Recent intersections such as 49 metres at 6.0 grams per tonne and 86 metres at 2.73 grams per tonne indicate the presence of considerable widths of ore grade mineralisation. The strike length of this mineralised zone is already established at 1,100 metres and may extend for at least another 500 metres further south. The drilling to date also suggests that the mineralisation is open at depth.

The Komana Shear Zone, within which the Komana West deposit lies, extends throughout the entire 20 kilometre length of the Komana Licence area. The field mapping and sampling programmes have discovered a number of good exploration targets to the south of the Komana West deposit, such as at Kama, 9 kilometres to the south. The Komana East deposit, some 7 kilometres to the east of the Komana West deposit, was explored by Randgold Resources and North Limited in the 1990’s and they estimated a non-JORC compliant resource of 280,000 ounces of gold within a brecciated metasediment in a northeast-southwest trending shear zone. Glencar says it intends to drill the Komana East deposit, using the extensive knowledge we have gained from our work at Komana West to guide our evaluation of the deposit.

The company says that it has also recently completed an exploration drilling programme on a promising target at Badogo-Malikila on the Solona concession, adjacent to the Komana concession. Approximately 1,250 metres of reverse circulation drilling has been completed and assay results are awaited.