Polo unveils significant resource boost to Sierra Leone gold project Nimini Holdings, the Sierra Leone-focused gold company 90%-owned by Polo Resources (LON:POL), has announced a significant increase in the resource from the Komahun project when measured on a like-for-like basis. The indicated resource increases 21% to 630,000 ounces, while the inferred resource grows by 60% 420,000 using the 1.8 grams per tonne cut-off that was the basis for the June 2012 mineral resource estimate (MRE). The June 2013 MRE, compiled by The MSA Group, also takes a minimum true width of one metre and cut-off grade of 2.4 grams per tonne of gold. In doing so it comes up with an indicated resource of 550,000 ounces of the precious metal and 340,000 ounces in the inferred category. Polo managing director Michael Tang said: "With its significant increase in mineral resources, the MRE provides a solid platform for the preliminary economic assessment, the technical inputs for which are scheduled to be completed in early July. “The date of publication of the PEA press release is in part dependent on the outcome of discussions with the government of Sierra Leone regarding the fiscal terms which will apply to this project, which will be the first large-scale underground gold mine in Sierra Leone.” The shares were little changed at 20.75p each, though the City reaction to the update was positive. “The mining licence is in place for this project, which should make it easier to take this forward to development subject to acceptable fiscal terms being negotiated,” said John Meyer, analyst at natural resources boutique SP Angel. “We look forward to the publication of the preliminary economic assessment (PEA). This is a good quality asset with the Polo portfolio and under the new management team may be one that can be realised once the advanced PEA is in place.” City research house Liberum said the next ask for Polo is to grow the resource base further, which means following up on the 25 or so targets geologists have identified. From an investment standpoint the shares have fallen around 8% in the past month, which means the discount to net asset value has widened to around 42%. “We think the current price represents an attractive buying opportunity given the potential for near-term catalysts from a preliminary economic assessment at Nimini and potential disposals from Signet [the oil exploration business 48%-owned by Polo],” Liberum said in a note to clients. Polo Resources
Posted on: Fri, 05 Jul 2013 04:30:51 +0000
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