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AFMINEX - Promising Spec Gold play

  1. deltoid

    415 Posts.

    Anyone looking for a spec gold play over the coming weeks and months should take a look at Afminex AFM (formerly Sheilds Equity SQS).

    Afminex had some good results in Africa as Leo Sheilds in the mid 90s. The company then moved into the Telco area during the tech boom, which went the same way as a lot of other tech companies. They are now back doing what they know and do best gold and mineral exploration.

    Afminex is curently receiving royalties from RSG from a sale of a tenement last year which relates to about US$1.5 - 2 mil for the current year.

    They also have a quality Tantalum resource (which also contains diamonds) at Akim-Oda Ghana which they are looking at going into production with in the new year. The royalties and tantalum are not huge in themselves but do supply a good revenue stream to fund the gold exploration.

    Afminex's gold projects are in Ghana and Cote D'Ivore the preliminary work that has been done on the tenements over the last few months have produced some very good results and they will be comencing drilling programs over the coming weeks and months.

    This is definately a spec play but the company also has a proven track record on exploration in the area they are working and with a number of promising tenements which if even only one of then proves successful will result in a dramatic rise in the share price.

    the shares are currently trading between 3 & 4 cents and there are 330,000,000 shares on issue but it is also tightly held. 82% of the shares were held by the top 20 in Sept last year since then several of the large holders have been increasing their holdings including one of the Directors Colin Carson who has moved from holding approx 8mil shares to 20 mil shares.

    Due to this the shares are currently a bit difficult to get hold of but may be worth while because if these do move they could move very fast.

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