EVENTS

MINING FOR GROWTH CONFERENCE 2011

Kirkland Lake Gold (KGI CN/LN)  Harry Dobson (Chairman), Brian Hinchcliffe (CEO), Mark Tessier (COO) with cash of C$50m.  Kirkland owns and operates the Kirkland Lake gold mine in Ontario.  Kirkland has operated the mine since 2002 after acquiring a complex of 5 previously producing mines from Kinross with total current resources of 2Moz Au.  Kirkland currently produces ~82koz Au per annum and is aiming to expand resources and production.  Kirkland’s production will grow towards 200koz pa by mid-2012. Substantially the largest of the attending companies.

Nyota Minerals (NYO LN)  Nyota has first mover advantage in Ethiopia and is currently the only company that has the in-house geological knowledge to unlock the mineral wealth in this underexplored part of East Africa. Nyota ecently submitted its mining licence application, a definite statement of intent by the team to take its flagship Tulu Kapi mine through to development. They recently announced the first results from its larger landholding to the north of Tulu Kapi. Early indications are positive, suggesting that the northern licences warrant continued exploration and are likely to yield good results, offering Nyota organic growth potential.

Northland Resources (NAUR NO, NAU CN)  Iron Ore in Scandinavia with Anders Hvide (Executive Chairman), Karl-Axel Waplan (President & CEO). OSL/TSX : NAUR/NAU – Market Cap C$561m and cash  of C$245m).  Northland’s flagship Kaunisvaara project remains on track for first exports in early 2013 and is a low risk, high quality iron ore product project expected to ramp up to 5Mtpa. A DFS for the Company’s second project, Hannukainen, a brownfield Iron Ore (IOCG) project, is scheduled for 4Q’11 and will provide the next organic leg to Northland’s story as construction continues at Kaunisvaara. 

DiamondCorp (DCP LN)  DiamondCorp is in the process of bringing South Africa’s historic Lace mine back into production. DiamondCorp’s Lace mine offers the much sought-after near-term stone production at a low capital cost and so presents an attractive opportunity to gain exposure to the diamond industry. The company’s asset portfolio also includes blue sky potential through DiamondCorp’s Jwaneng South project located down trend from De Beer’s Jwaneng mine, the most profitable diamond mine in the world.  

African Eagle (AFE LN)  African Eagle’s Dutwa nickel-cobalt project in Tanzania is a laterite deposit that is amenable to atmospheric leaching having low iron content, greatly reducing the sulphuric acid requirement. The ~100Mt deposit grade 0.93% Ni plus 0.03% Co and early metallurgical testing and economic analysis has returned encouraging results. The team is in the process of producing a pre-feasibility study on the asset (expected to be complete by year end) which will role straight into a feasibility study (to be completed in late 2012). 

Ferrum Crescent (FCR LN)   Iron ore in South Africa with Ed Nealon (Executive Chairman), Bob Hair (CEO), Ted Droste (Non Executive Director).  Cash is around A$10m and the stock is dual listed ASX and AIM.  Ferrum’s ongoing DFS for the development of a pellet plant is expected to be completed in early 2012 and the company has recently entered into an offtake agreement Duferco SA for up to 6Mtpa of DRI and/or BF pellets. Ferrum has a management team with a proven track record of successfully developing early stage projects in Africa led by Ed Nealon, formerly of Aquarius Platinum. 

Kolar Gold (KGLD LN)  Gold in India with Nick Spencer (CEO), Richard Johnson (COO).  Kolar recently completed a £12m placing and IPO and is the first quoted play on the London market for equity exposure to Indian gold. Kolar is a regional brownfield consolidation, exploration and development play in the proven world-class Kolar belt. Ongoing exploration is expected to define a 1-2Moz JORC resource in the next two years and Kolar continues to pursue the acquisition and revival of the Central Kolar Gold Fields, the prize gold asset in India.   

Equatorial Resources (EQX AU)   Iron ore in Republic of Congo with Ian Middlemass (Chairman), John Welborn (MD & CEO), (Cash ~A$64m).  Equatorial is a unique African iron ore play due to its flagship asset being favourably located to existing bulk commodity infrastructure with potential for Direct Shipping Ore (‘DSO’) mineralisation giving scope for rapid development into initial production. A total exploration target of 3.6-6.1Bt across its two assets supports a potentially world class, large-scale operation in the medium term. 

Verde Potash (NPK CN)  Verde Potash plans to develop its Cerrado Verde Project which holds the Verdete Slate (potash rich “Green Rock”) from which a superior potash product, ThermoPotash, will be produced.  We believe that it is differentiated from its potash peer group for a number of reasons including: cost structure and location advantage of Amazon’s ThermoPotash product versus imported potash; large 105mt resource close to the surface and favourable project economics; partnerships and affiliations for near-term production in 2013; and exploration upside with the discovery of phosphate at the Apatita Phosphate project located adjacent to Amazon's Cerrado Verde Potash project.   

Sunridge Gold (SGC CN)   Copper, Gold & Polymetallic: Eritrea & Madagascar with Michael Hopley (President & CEO), Greg Davis (VP Business Development) and cash of C$19m.  Sunridge Gold has four defined mineral deposits that make up its Asmara project in Eritrea.  The deposits have total resources that contain: 582,000t Cu; 1.2Moz Au; 32Moz Ag and 1Mt Zn.   A feasibility study for the highgrade Debarwa copper, gold and zinc deposit commenced in October 2010 and is scheduled for completion in Nov’11.  A pre-feasibility study is scheduled for completion in late 2011 or early 2012.   

Belvedere Resources (BEL CN)  Belvedere has a portfolio of base and precious metal mines and projects in Finland. Its flagship asset, the Hitura nickel mine, provides good cash flow for the company enabling its ongoing exploration and expansion plans. Of the company’s many exploration projects, the Osikonmaki gold project further south in Finland has yielded strong results following Belvedere’s reinterpretation of the ore body. To unlock the value of its exploration portfolio and prevent distraction from Hitura, the company has pursued various joint venture agreements.  

Cardero Resources (CDU CN)   This is a multi-asset company quoted in Canada and NYSE with assets in Canada, USA and Peru.  There are multiple project and corporate developments underway with Cardero Resources and we believe these will develop value rapidly over the next year.  Their recent acquisition of Coalhunter and change thereby of CEO are clear steps forward.  We hope to be initiating coverage shortly.

Condor Resources (CNR LN)   Condor Resources is focused on high grade gold assets in Central Latin America. It's flag ship asset is its La India gold project in Nicaragua. Through a licence swap agreement with B2Gold, Condor has been able to increase its land holding around the historic mine area at the same time as gaining as acquiring a large cap, Canada listed strategic partner in Nicaragua in B2 Gold.