Sovereign Mne - SMA Stream Log

MM Alert single trade

SMA big buy orders getting filled NGT ONLY JV talk rife.

went 3v1

going north NGT ONLY

SMA premium recquired for tiny amounts looks like JV rumours are true

[link]

*double

This is worth watching it seems, it was doublu the price not long ago

SMA when it was 7p !! remember loads of big players surround us with proven working mines. Shore Capital reckons that a realistic target for the drilling is a resource of between 500,000 and a million ounces. But that’s only the start, as the company is currently focussing on only a small portion of the entire Mandiana-Magana territory. And there are plenty of other concessions inside Sovereign’s portfolio besides Mandiana-Magana. But on the basis that Shore’s initial target is met, there is a strong case, the broker reckons, for a share price of around 23p. At the moment the market has not caught up with the prospects of near-term news on a resource, and the shares are languishing at a relatively lowly 7.13p. Still, given current market conditions, that doesn’t compare too unfavourably to the 12 month high of 11p, and is still within reach of the 10p level at which the last money was raised back in July. Shore Capital reckons that the initial resource at Mandiana-Magana is likely to consist of shallow oxides hosted in soft saprolite, which would be relatively easy and low cost to mine and process. “In the medium term”, comments the broker, “we would not be surprised if the resource at Mandiana-Magana turned out to be several million ounces (let alone the potential resources at the other concessions)”. Shore also expects significant positive news flow over the next 12 months from all five of Sovereign’s properties in Guinea. While the generous percentages the company has allowed the government of Guinea to hold in its concessions have allowed it to have its pick of concessions and secure excellent local working relations. Overall the company has five early stage gold properties covering a total of around 3,600 square kilometres, and any of which could, in the board’s opinion, become a significant gold asset. Sovereign’s strategy for expansion is to sign similar joint ventures for mineral exploration with other governments in Africa. Of the other Guinea concessions, Maréla and Dalgana are known to contain substantial alluvial gold, as well as several untested bedrock gold occurrences. Stream sediment sampling results have promoted Maréla up to second place in Sovereign’s list of priorities, and a number of highly prospective areas for follow-up soil geochemical sampling having been outlined. But for now, all eyes will be on the assay results from Mandiana-Magana when they come out, both from the recent drilling, and from the drilling that’s set to recommence shortly. It should be interesting to watch.

Sovereign (SMA) partnering up with the Guinea government,strategic partner or a complementary acquisition. By PLATTS With the advice of people who know the region well, including experienced geologist John Prochnau, Pearl has signed a sovereign partnership with the Guinean government, ensuring favourable treatment at the exploration stage. While politicians may come and go, senior civil servants stay put and some are on the board of the local operation of Sovereign Mines Of Africa (AIM: SMA). As with many African countries, mining offers Guinea its best chance of wealth and prosperity. Guinea has the world’s largest reserves of bauxite, the main source of aluminium; Rio Tinto plans to bring the massive Simandou iron ore mine into production in 2015; and AngloGold Ashanti, Rusal, Bellzone and Avocet are others operating in the country. The Chinese are investing heavily, improving Guinea’s infrastructure in return for supply agreements, and that could help Sovereign . This is part of the prolific Siguiri gold belt and Sovereign has rights over three gold properties . Sovereign Mines has three prospective gold projects based in Guinea , covering a total of around 1,363 square kilometres. "In order to help develop our (Mandiana-Magana) project ( Guinea ) we are continuing to search for a strategic partner or a complementary acquisition. Phase 3 drilling programme at Mandiana in the Republic of Guinea. The positive assay results saw shares in the company rise in value more than two-and-a-half times over to 2.00 pence, easily making it the best performer on the AIM All-Share. "These very encouraging results confirm the impressive grade of high-grade shoots within a broader extensively mineralized envelope," said John Barry, the company's director of exploration. Drilling programme encounters wide intervals of significant gold. Speculative Buy at with a 14.2p target price. Valuation Mandiana-Magana (MM) is where most of the company’s attention will be focused initially as this project lies within a world-class gold district which straddles a major gold mineralised system. MM seems to have been the subject of little in the way of modern exploration methods; but there is no doubt of the prospectivity of this project as it encompasses a site of a gold rush where local artisanal gold miners have dug more than 9,000 pits. The Government of Guinea has served an ace here as this area has never been drilled and just begs attention given the impressive gold discoveries on neighbouring or nearby properties such as Gold Fields’ Yanfolila (sourced by John Barry) and SearchGold’s Mandiana. Already the early sampling work by SMA has uncovered grades as high as 11.6g/t; even though the goal is to discover a large tonnage of lower grade gold resource that could support a large scale open pit operation. Moving ahead it looks as though there could be a healthy flow of news from the Mandiana-Magana drilling results, but sensibly the management will ensure that the Guinea subsidiary has made good progress before signing up the second African country. The drilling programmes should lead to resource definition with a maiden JORC resource target of between 500,000 and a million ounces of gold. Peer group analysis of gold explorers in West Africa has revealed that on discovering the target JORC resource, SMA could attract an Enterprise Value £23.6 million which equates to 14.2p per share. Our recommendation is Speculative Buy with a target price of 14.2p. .