Perth, Australia — MININGREVIEW.COM — 30 January 2009 – Shield Mining Limited – an Africa-focused gold and base metals explorer listed on the Australian Stock Exchange – has withdrawn from Madagascar to concentrate on its more prospective flagship projects in Mauritania.
In a letter to the Australian Securities Exchange, the company confirmed that it had halted operations in Madagascar and that it had no further expenditure commitments in that country.
“In response to the prevailing global economic conditions, Shield Mining continues to pursue its gold exploration strategy in Mauritania in northwest Africa, but prudently has reviewed and reduced overheads in order to preserve the company’s US$3.45 million (R35 million) cash position,” the letter explained.
“The board and management will carefully manage the cash position and have reduced administrative costs – including salaries and directors’ fees – while completing low cost, value -enhancing exploration on the company’s core projects,” it added. “This will ensure that Shield Mining remains in a strong financial position with its flagship exploration project well defined and ready to be drilled.
Main exploration outcome of the quarter involved the first results from samples from trenching of the five prospects on the Tijirit licence – Sophie I, II & III, Lily and Eleanor – as well as geophysics and geological mapping on the prospects.
During the December quarter, 3 994 m of trenching was undertaken, composites were sent to Mali for analysis. Results from all samples have now been received and are currently being assessed.
The limited drill programme previously planned for the March 2009 quarter has now been postponed to allow for further, low-cost, value-enhancing trenching to better delineate targets ahead of drilling, which is now planned for later this year.