Glencar Mining

Feature Story Date: December 28, 2005

What The Junior Mining Market Needs Next Year Is A Big Discovery

What the junior mining market needs in 2006 is a big discovery. Preferably at a high grade, and if it is a gold discovery it should have potential for several million ounces at an average of 5 g/t or better. A copper deposit, on the other hand should have well over 1 billion tonnes of mineralised ore with an average grade of at least 1% copper and preferably a bit of something else like molybdenum or cobalt to spice it up. These are generalisations, but you get the picture. A discovery big enough to have investors poring over exploration results from juniors all over the world is rare as hens’ teeth, but there is bound to be one sooner or later. The recent drilling result from AIM listed Glencar Mining of an intersection of 19 metres grading 53.6 g/t gold at its Komana West project in Mali is exceptional and it certainly attracted attention. The interesting fact was that this drilling ended in mineralization so there could be a whole lot more to come.

At this stage, however, buying shares in a company because of some early drilling results is a risk akin to backing a novice horse over jumps. The only guide to its chances can be gleaned from statements made by its trainer, owner and jockey. The more of these statements there are, the less likely the horse is to win. This may seem an overly cynical attitude to take at Christmas, but promotion should be avoided in both mining exploration and horse racing. It certainly does not apply to Hugh McCullough of Glencar who is a very experienced explorer and knows full well the number of fences to be jumped before a company can say it has a deposit which is economically mineable.