Golden Paydirt Attracts Mining Heavies to West Africa

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Researched by Industrialinfo.com (Industrial Information Resources, Incorporated; Houston, Texas). West and central West African countries continue to generate enthusiasm among mineral mining and resource companies. Newmont Mining Corporation (NYSE, ASX:NEM- TSX:NMC) (Denver, Colorado - Toronto, Canada - Adelaide, Australia), the world's largest gold producer, is planning to invest $450 million to develop the Akim and Ahafo gold deposits in Ghana. The company estimates that the deposits could produce 7.5 million ounces of gold over their lifetimes.

The new Ghanaian mines have the potential to rank among Newmont's top five producing regions that include Nevada, Peru, Australia, and Indonesia.

The decision to back the projects in Ghana was influenced by the quality of the ore deposits more than by the currently rising gold price. The new mines, which could create around 900 new jobs, will be a fillip to Ghana's foreign exchange reserves of which 45% come from gold and minerals.

Meanwhile in Mali the Morila ('the gorilla') mine continues to break gold production records for Randgold Resources (LSE:RRS) (Jersey, Channel Islands) and Anglogold (JSE:ANG- NYSE:AU - LSE:79LK - ASX:AGG) (Johannesburg, South Africa). In its second full year of operation the mine has produced more than 1.5 million ounces of gold at costs below $100/ounce. During the record breaking September quarter it produced 428,421 ounces at a cash cost of $28/oz and a total production cash cost of $49/oz.

Randgold says that current exploration programs will focus on drilling the orebody extensions and trying to find new ones concealed beneath cover rocks east of Morila and in the north west San extension. The exploration is being carried out with the aid of a new geological model for Morila that has been developed from the latest drilling and pit mapping information. The gold zone is surrounded by a halo of altered rocks which confirms the presence of a large mineralized system. The ore body is essentially flat and is only exposed at the surface in the south due to displacement by faulting caused by an intrusion.

The above translates to 'more paydirt in the African West.'