Small firm poised to mine Saudi Resources - This is an interesting story...
CGG, formerly known as ADV Group has gone from a small company which marketed itself as a multinational media services company to form a JV in one of Saudi Arabia's biggest untapped Cu resources, Jabal Sayid. The current JORC resource stands at 46 MT at 1.8% Cu, the company is expecting to have a new JORC resource by March 2008, and is hoping to double the size of the known resource.
A scoping study completed in the 1990's suggested that Jabal Sayid had the potential to be a 100 million to 150 million open cut project grading between 1 and 1.5% Cu, with significant Au, Ag and Zn credits, putting the project into the top tier of its type in the world. The pace is set to quicken at Jabal Sayid with a third and fourth diamond rig contracted to be onsite and drilling this December.
The merging of ADV Group and mining services company Vertex has given the new Citadel Resources a 50% earning in the project, with CMC (Consolidated Mining) retaining the other 50% interest, and Citadel taking the lead in the project. The story has gone virtually unnoticed even in the midst of the resources boom.
While Jabal Sayid has the potential to be the real flagship for Citadel, Vertex also brings another 9 wholly owned projects and exploration licences to the company, all of which are in Saudi Arabia. At least 4 of these projects have the potential to be company makers, Vertex Executive Director Ms Ines Scotland said.
(Information taken from 'The Australian', Dec 4th page 20 and ADV Annual Report 2007)