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Tuesday, 20th February 2007 (3125 views)

GMA, a gold producer in Algeria, is hoping to secure a 100,000-ounce gold project in Africa this year.

The company is analysing a 1,215sq km area of land, using geologists to ascertain the details of various anomalies and 300 identified veins of gold in the JORC-compliant deposits.

Russian prospecting in the 1980s found some 2.8 million ounces of gold in the area, although GMA claims there could be around double that amount which can be obtained through opencast mining and underground developments, according to Miningmx.com

The company's CEO, Doug Perkins, told the website that the company is looking to mine 1,500 tonnes a day from the site, which will turn cash positive in the summer.

"With all we believe, to say there is not five million ounces here would be wrong," he said.

He added: "I'm [GMA] the only game in town developing a gold mine and I'd like to see a whole lot more juniors in Algeria. It will develop the sector."

Mr Perkins explained that there is "very little technical support available or geophysical services in country" and that mining companies would be "silly" not to be in Algeria.

 

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