Closeology in Senegal - An Update Referencing Goldstone Resources

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Closeology in Senegal - An Update Referencing Goldstone Resources

Goldstone Resources has been on MiningMaven's radar for some two years now. Over this time the company has progressively advanced its highly prospective license areas in West Africa with an intelligent exploration strategy. 

In Ghana right now, the company is engaged in an aggressive campaign exploration programme at Homase-Akrokerri, with two drill rigs running and airborne geophysical study (VTEM) commissioned.

In January 2011 MiningMaven published an article about Goldstone’s Ghanaian projects, at Homase-Akrokerri and also Manso Amenfi. In this they introduced the concept of “Closeology” to their readers.

For anyone with an active interest in resource investment, Closeology (or the study of what is close!) can be an extremely useful indicator in assessing the chances of an explorer replicating the success of its neighbour. Closeology provides a broad benchmark in order to assess regional geology and the commercial operating environment so we may form a view on the potential for value creation in an investment. 

MiningMaven's closeological study of Goldstone’s Ghanaian licenses proved popular with readers and helped highlight the strength of these projects.

More importantly the report gave a glimpse of what was yet to come. Just like Goldstone, MiningMaven are firm believers that if an approach works, keep repeating it. It’s simple really. So with this in mind, we now turn our attention to another of Goldstone’s blue-sky projects, namely Sangola in Senegal. 

The geological basis for Closeology in Senegal

To begin with we should first consider the supporting evidence for Closeology to better understand what makes it such a powerful investing tool.

The answer begins four and a half billion years ago, at the birth of our planet.

Over the eons, irresistible geological forces exerted their gradual influence over the Earth’s form, moving mountains, shaping continents and creating seas. With these great movements of mass travelled the planet’s natural resources. At times, this ponderous process would suddenly become spectacularly violent, as volcanic eruptions and massive earthquakes tore landscapes apart. Temperatures greater than 700 °C liquefied rocks and mineral deposits and propelled them to the surface. In this state, magma is more viscous than water and formed devastating rivers of destruction burning channels through local terrain, leaving behind rich sediment. Meanwhile, colliding continents caused great splits, forcing folds of land to ride over one another. When this furious volcanic activity eventually subsided, the lava then cooled down allowing the molten rocks, with their mineral deposit content to settle. The pressure of the moving mantle relieved, the land is then calmed. Millions of years later the evidence of these awe-inspiring events is easily recognisable to the trained eye and although the scale is grand, the paths are clearly defined. 

Experienced geologists are able to follow these paths in their quest to identify resources in the ground.

And this is at the heart of Closeology.

When looking to make a discovery one looks for clues in the consistency of mineralised trends so the best place to start is where those trends are most likely to be most consistent; that being as close as possible to the site of the original discovery. 

Examining The commercial basis for Closeology

There is another aspect of closeology, which adds to its analytical appeal. When looking at a company’s license areas it can often help to look at the calibre of the other companies operating locally. Regular readers of MiningMaven will know their preference for this method of analysis. If a smallcap AIM explorer is working in close proximity to a major player, this can tell us several things.

First it indicates the prospectivity of the region. Larger companies are generally speaking, more interested in exploring for larger resources. So if an AIM explorer is operating next door to a Major, then by inference, then the chances of making a significant discovery may well increase.

Second, it can offer the hope that the smaller company might, at some point, become a takeover target. There are never any guarantees here, but with known players of substance in the neighbourhood, it does give confidence that, should a discovery of significance be made, then our deep pocketed neighbour may be the first to come knocking. 

Third, it gives us an indication of the strength of the local operating environment and infrastructure. Political, economic, legal and infrastructure concerns usually top the list of likely obstacles in the way of an exploration company with its sights set on making the transition to a producer. Larger companies often prefer smaller companies to lead the way and demonstrate that local operating conditions are right for production before making the decision to move in themselves. If larger companies are already operational on the ground, then this would suggest that conditions are indeed conducive for mining operations. 

For more information on Goldstone Resources and closeology please visit: www.miningmaven.com