Sector:  Gold exploration in Turkey

Background information:

·      Ariana has a JORC resource of 1.5 million oz equivalent of gold, over a third of which relates to the Kiziltepe sector of its flagship Red Rabbit project.

What they are doing:

·      With earn-in contributions from Turkish construction company Proccea towards its eventual 50% stake on production start-up, Ariana's interest has been reduced to 82%.

·      Mine construction is expected to start in late 2013.

·      Initial production is expected by late 2014 at an annual rate of 21,000 ounces.

·      An 8 year mine life is forecast, with adjacent assets adding further potential to the project.

Future plans:

·      Ariana has recently announced ten new drill-ready targets at Kiziltepe and a further 300 scouting targets.

·      Ariana has a 49% interest in a JV with Canadian Eldorado Gold, which is funding an exploration campaign on the Salinbas and Ardala projects in the north-eastern Artvin Province, with a maiden JORC resource of 1.09 million oz gold inferred and indicated.

·      Ariana also has an 11.5% interest in Tigris Resources with exploration interests in the south-east. 

Comment:  Despite the vagaries in the gold price, Ariana offers interesting potential once planned cash flow materialises from its Kiziltepe operations thus enabling it to pursue its wider interests.

Further information is available on the Ariana website: www.arianaresources.com

 

Beowulf Mining plc - AIM ticker: BEM

Sector: Iron ore, copper and gold in Northern Sweden

Background information:

·      Beowulf is dual listed on Stockholm's AktieTorget market. 

·      Sweden has a long-established mining history and record of political, economic and social stability.

·      Recent non-violent attempts to disrupt Kallak drilling operations by limited numbers of protesting activists, and separately by local Sami reindeer herders, have caused minor delays to drilling and testing operations which are being overcome.  Positive support from landowners, local authorities and central government has led to Kallak being designated as an area of national interest, effectively giving it national credibility, protection, and assistance in the company's project plans. 

·      Beowulf enjoys a 100% interest in all of its projects except for the Ballek copper-gold project owned 50/50 in JV form with an Australian partner, Energy Ventures Ltd.

What they are doing: 

Beowulf has projects in Sweden, in particular:

·      a 144 mt  iron ore JORC resource at Kallak North;

·      a potentially larger and contiguous deposit at Kallak South, for which an extensive exploratory drilling campaign is planned;

·      adequate cash funding in hand;

·      some early stage projects and others where considerable work has been undertaken.

Future plans:

·      Initial demand for iron ore production exists within Europe alone.

·      Access to the market will be well served by Sweden's established infrastructure - being upgraded to accommodate the enhanced industry production levels.

Comment:  Beowulf would appear to offer investors a low risk opportunity.  Further information is available on the Beowulf website: www.beowulfmining.com

 

Greatland Gold plc - AIM ticker: GGP

Sector: Gold exploration in Tasmania and Western Australia

Background information:  Greatland has been conducting early stage exploration for gold since 2006 having been admitted to AIM that year.  Having made progress on two properties, Warrentinna and Lisle, Greatland has entered into farm-in agreements with larger entities which will earn an increasing percentage share of the projects in exchange for expenditure incurred.

What they are doing:  Significant recent developments have included:

·      very positive results at the Warrentinna project in Tasmania;

·      work on the Firetower project, the subject of a farm-in agreement with Unity Mining, continues apace;

·      significant surface geochemical results at Lisle peaking at 2.5g/t gold;

·      farm-in agreement signed with Tamar Gold at the Lisle gold project;

·      identified large gold anomalies at Lackman Rock with encouraging results from soil sampling;

·      identified gold and nickel targets at Bromus; and

·      exceptional geochemical results from Ernest Giles.

Future plans:

·      to press on with early stage exploration at their various properties for which purpose Greatland has recently raised £675,000 before costs from a share placing.

Further information is available on the Greatland website: www.greatlandgold.com

 

KEFI Minerals plc - AIM ticker: KEFI

Sector:  Gold exploration in Saudi Arabia

Background information:  KEFI has switched its focus from Turkey to Saudi Arabia where it has a 40% interest with a local construction company, ARTAR, in a JV partnership which has enabled KEFI to gain accelerated attention from the notoriously slow Saudi licensing authorities in granting exploration licences.

What they are doing:

·      Early drilling of the Jibal Qutman licence resulted in 2000 assays establishing a compliant JORC resource of 313,000 ounces gold, with more expected as a result of further work already undertaken and the addition of a third drill rig.

Future plans:

·      With an updated resource assessment likely by year-end, and the benefit of cheap labour and low fuel costs, it is understandable that the shares have been receiving market attention in the belief that KEFI could be applying for a production licence in early 2014.

·      With ARTAR paying its 60% share, the mine development cost requirement should be relatively modest, and KEFI's likely need to seek limited further funding from its shareholders by the year-end should be successfully achieved.

Further information is available on the KEFI website: www.kefi-minerals.com

 

Nordic Energy plc - ISDX ticker: NORP

Sector:  Oil and gas in the North Sea

Background information:  Nordic was formed in 2012 and admitted to trading on ISDX in November; Starvest contributed core funding for an initial 42% stake.

What they are doing: 

Nordic is focussed on oil and gas opportunities in Denmark, Norway, and the North Sea sectors of the Netherlands and the UK.

·      Nordic holds Licence 1/13, the largest exploration and production licence in the Danish North Sea, covering an area of 3,600 sq. km; the Licence is located approximately 50 km from the edge of the Central Graben, where existing production and multiple discoveries are located, and 100 km from the Siri Area which has a number of tertiary fields.

Future plans:

·      A programme of assessment leading to a CPR is planned for Q4 2013 followed by drilling within 24-36 months thereafter.

 

Comment:  The Directors of the Company all have significant experience in the oil and gas sector, specifically in the Nordic region and believe that significant opportunities exist and that their expertise and extensive contacts will assist them in the identification, evaluation and funding of appropriate investment opportunities.

Further information is available on the Nordic website: www.nordicenergyplc.com

 

Oracle Coalfields plc - AIM ticker: ORCP

Sector:  Coal in Pakistan

Background information:  Oracle Coalfields is the first developer of the Thar lignite coal field in the Sindh province in south-east Pakistan; it came to AIM in April 2011.

What they are doing:

Oracle has:

·      a JORC resource of 529mt;

·      a first phase proven coal reserve of 113 mt, and has

·      moved from exploration into development;

·      a 30 year production licence extendable on expiry for a further 30 years, producing initially an annual 2.4 mt a year;

·      joint development agreements signed for a  mine-mouth power plant; and

·      agreements with major Chinese state-owned entrepreneur CAMC Engineering (CAMCE), for the funding and development of the mine and adjacent power plant.

Future plans:

The future plans are:

·      to supply a 300MW power plant and local industry such as the cement sector;

·      to raise initial mine capital costs estimated at US$176million;

·      CAMCE will assist Oracle in securing the  requisite funding for two thirds of the construction costs likely to be obtained from Chinese banks with related capital expenditure underwritten by the SINOSURE export credit agency; and

·      initial mine production expected within two years and later capable of expansion to an annual level of 5 to 6 mt raising supply to an eventual 1100MW plant.

Comment:  Oracle enjoys first-mover advantage and local status as it seeks to alleviate Pakistan's shortage of electricity which is seriously constraining the development of the national economy as well as being a cause of growing civilian unrest.  Oracle enjoys the support of government and is one to watch.  Oracle has achieved all its pledged objectives and commitments, yet in common with many others, it has seen its share price fall since AIM admission

Further information is available on the Oracle website: www.oraclecoalfields.com

 

Regency Mines plc - AIM ticker: RGM

Sector:  Varied interests in mineral exploration ventures 

Background information:  Regency came to AIM in 2005 with a portfolio of exploration properties in Australia since when it transferred some to Red Rock Resources plc, see below, and continued to deal with others as well as take stakes in other mineral exploration ventures.

What they are doing:

Regency has:

·      exploration assets in Western Australia prospective for base metals and gold;

·      19.9% interest in ASX quoted Ram Resources Limited, the holder of licences in the Fraser Range, WA prospective for gold and nickel-copper-cobalt, adjacent to those held by Sirius Resources (ASX);

·      with the support of the Sudanese government, a 51% interest in IMRAS exploring for agro-minerals in Sudan;

·      50% of Oro Nickel Vanuatu, which itself holds the Mambare property in Papua New Guinea with a JORC resource of 162.6 mt nickel grading 0.94% with 1.53 mt of contained nickel plus cobalt, from 3% only of the tenement; there is also potential for base metals, gold and geothermal resources;

·      a 6% interest in Direct Nickel Limited which is in the later stages of proving a game-changing nickel treatment technology; and

·      other investment interests in Alba Mineral Resources plc, see below, and Greatland Gold plc, see above.

 

Future plans:

More of the same:  conduct early stage exploration; prove a resource; dispose of it to a third party in exchange for a minority stake, and/or a carried interest.  Immediate plans are to continue early stage exploration in Sudan.

Comment:  The significance of the Mambare project with the associated technological breakthrough by Direct Nickel should not be overlooked.

Further information is available on the Regency website: www.regency-mines.com

 

Red Rock Resources plc - AIM ticker: RRR

Sector:  Gold and iron ore

Background information:  Red Rock was launched on to AIM in mid-July 2005 by Regency Mines, see above, with a portfolio of exploration licences of properties in Western Australia.

What they are doing:

Red Rock is an early stage exploration company with a diverse range of projectsin Colombia, Greenland and Kenya as well as interests in Australia including:  

·      a 50% interest in a producing gold mine in Colombia;

·      a direct interest of 15% in tenements in Kenya prospective for gold, with the prospect of a further 45% on completion of a bankable feasibility study, plus a 33% interest in the holder of the remaining interest;  a JORC estimate shows a 1.193m oz resource.

·      a 60% interest in an iron ore project in Greenland with a JORC resource; an offer for a partial sale has been received;

·      an interest in ASX quoted Jupiter Mines Limited which has a 33% interest in a major South African manganese producer as well as other assets in Western Australia;

·      a 38% interest in ASX quoted Resource Star Limited which recently announced an intention to acquire a number of Texan oil wells; and

·      an interest in Regency Mines plc, see above, Alba Mineral Resources plc, see below, and Ascot Mining plc.

Future plans:

Rather like Regency Mines, we suspect more of the same.

Further information is available on the Red Rock website: www.rrrplc.com

 

Sunrise Resources plc - AIM ticker: SRES

Sector: Diversified mineral exploration and development specialist

Background information:  Sunrise was admitted to AIM in 2005 initially with a portfolio of diamond exploration assets from Tertiary Minerals plc.  Tertiary remains a major shareholder.

What they are doing:  Exploring for:

·      diamonds through its wholly-owned Western Australia Cue Diamond project, where samples of a discovered kimberlite float have been sufficiently encouraging to suggest that evaluation of its economic potential through bulk sampling is warranted with further exploration work planned to locate the bedrock source;

·      gold in Australia, where work on the Baker's and the Corona gold exploration projects has been deferred;

·      barites in Ireland where Sunrise is evaluating a production opportunity for its high-white Derryginach barite resource against a background of increasing prices and with no major mine supplier outside of China.

Future plans:

With access to new capital restricted, Sunrise has taken a cautious approach to discretionary expenditure on its mineral projects in order to conserve cash until replacement equity can be raised on more favourable terms.  It has relinquished its option over a Canadian gold project and suspended its diamond exploration work in Finland. 

Further information is available on the Sunrise website:  www.sunriseresourcesplc.com

 

The above companies constitute Starvest's core portfolio as at 30 September 2013. 

 

In addition, the Company holds interests in the following which are believed to be worth watching for future developments:

 

Alba Mineral Resources plc - AIM ticker: ALBA

Alba is a UK-based exploration company with an overall strategy to develop a portfolio of well-researched, promising and prospective exploration interests; currently, these are:

·      uranium in Mauretania;

·      gold, nickel and base metals in western Ireland; work on its JV agreement with Teck Resources has been financed by Teck towards its ultimate 75% interest by mid-2015.     

But with limited financial resources, Alba's activities have been concentrated on securing additional funding, much of which was achieved by the issue of new shares to satisfy debts due to its directors and to its Mauretanian JV partner. 

Further information is available on the Alba website: www.albamineralresources.com

 

Centamin plc - LSE ticker: CEY

Sector:  Gold mining in Egypt

Background information:

The interest was acquired in 2011 in part consideration for a holding in Sheba Exploration, an Ethiopian gold exploration venture at a time when Centamin wished to build a portfolio of interests outside Egypt where it holds and is significantly dependent on its investment in the Sukari gold mine. 

What they are doing:

Last year saw the start of civilian unrest and changes in government, along with labour problems at the mine, a fall in production levels and a legal dispute with a junior administrative court that was contesting Centamin's mining licence.  This led to a serious threat that the Egyptian Government's stake in the mine should be raised from 50% to 75% or the mining licence annulled or suspended.  The inevitable consequence was a sharp decline in the share price, although more recently the price has enjoyed a minor recovery to reach a level of almost one half of the value obtained at the time of the Sheba take-over.

Whilst tensions in Egypt remain, Centamin has continued to deliver positive results, most recently announcing a third quarter when 84,757 ounces of gold were produced, bringing the total for the year to date to 265,397 ounces and close to the annual target of 320,000 ounces. 

The interest in Centamin has been sold since the end of the financial period under review.

Further information is available on the Centamin website: www.centamin.com

 

Goldcrest Resources plc: - ISDX ticker: GCRP

Goldcrest:

·      is under new management and is now focused on exploring for gold in north-east Ghana;

·      has raised further funds and strengthened its Board,

·      as it prepares to seek admission to AIM in 2013; and

·      has changed its name twice in the past three years from Lisungwe to Rare Earths and Metals.

Further information is available on the Goldcrest website: www.goldcrestresourcesplc.com

 

Guild Acquisitions plc - ISDX ticker: GACQ

Guild has a mixture of assets including stakes in Starvest investee companies Goldcrest Resources plc and Equity Resources plc.  Guild does not maintain a website.

 

International Mining & Infrastructure Corporation plc- AIM ticker: IMIC

·      IMIC is focused on infrastructure solutions for West African iron ore development projects;

·      Subject to final approvals, IMIC has successfully bid £120 million for Afferro Mining with its Nkout project in Cameroun; although this acquisition represents a significant multiple of IMIC's own capitalisation and met with initial scepticism in the market, IMIC's success marks a significant extension of its original objectives.

Comment:  IMIC enjoys support from its strategic partner, the privately held African and Iron Ore Group (AIOG), as well as from Chinese interests in assuring access to supply sources for its future iron ore requirements. With its Cameroun mining and infrastructure project now added to its Guinea infrastructure work, IMIC has become a major player in West Africa.

Further information is available on the IMIC website: www.imicplc.com

 

Marechale Capital plc - AIM ticker: MAC

Unlike other investments, Marechale is not involved in the mineral exploration business but an interest was acquired some years ago when it was an adviser to companies quoted on what became PLUS Markets and more recently, ISDX.  Today it describes itself as an investment banking and corporate finance business, using its established relationships and sector specialisation to raise capital and refinance high growth companies and funds in the retail, leisure, renewable energy and infrastructure sectors.

Further information is available on the Marechale website: www.marechalecapital.com

 

Minera IRL Limited - AIM ticker: MIRL

Minera IRL, South American precious metals mining, development and exploration company listed on the AIM, Lima and Toronto TSX markets, focuses its activities entirely on:

·      Peru where it operates the 100%-owned Corihuarmi gold mine, and is developing the Ollachea underground mine while also exploring a number of other gold prospects.  Expected lower production, grades and revenues from Corihuarmi have recently impacted on Minera's significant financing requirement for the Ollachea development, resulting in group losses.

·      In Argentina, a DFS has established Minera's Don Nicolas gold-silver project as robust enough for mine construction, with local equity and debt funding already fully secured.  Minera's local subsidiary retains a 51% interest in the project with production intended by end 2014, with an annual forecast of 52,400 ounces gold and 56,000 ounces silver over an initial mine life of 3.6 years, but with further extensions adding to the project's potential.

Comment:  While the market reacted unfavourably to news of the Peru ventures and to overall funding uncertainties, the release of the Don Nicolas arrangements has led to a favourable re-appraisal of Minera's overall potential; predatory enquiries were swiftly rejected by the company.  Future developments seem likely.

Further information is available on the Minera website: www.minera-irl.com

 

Starvest also holds investments in:  Agricola Resources plc; Alpha Universal Management plc, CAP Energy Limited; Carpathian Resources Limited; Equity Investors plc; Equity Resources plc; Fundy Minerals Limited; Gippsland Limited; Goliath Resources Inc.; Kincora Copper Limited; Kuwait Energy plc; Treslow Limited.

Kuwait Energy is worth an additional comment: the holding is as a result of the acquisition in 2006 ago of a substantial stake in the original holding in Concorde Oil & Gas plc.  A London listing for Kuwait is expected.