Oliver has change of heart over Malian projects

Oliver Gold (OGO-V) has had second thoughts about selling its interests in Malian gold properties.

The Vancouver-based junior was prepared to sell it interests in the western African country (T.N.M., Nov. 3/97), including its option to earn a half interest in the Segala gold concession from Consolidated Mining Corp. (CMC), a conglomerate owned 51% by Trillion Resources (TLQ-T), 29% by Consolidated African Mines and 20% by a Malian citizen.

Oliver planned to sell its interest, as well as its other concessions in the country, to CMC in a share deal worth $6.6 million, as announced in October.

Regulators approved the deal and Oliver was to have presented the arrangement to shareholders at its annual meeting in December.

The company changed its tune, however, and decided to wait it out until interested majors had a chance to poke around. Reserves at the Segala deposit stand at 15.4 million tonnes grading 2.75 grams gold, equivalent to 1.4 million contained ounces. The oxide reserve is estimated at 1.2 million tonnes grading 2.27 grams. The remainder of the zone consists of sulphides.

The company spent $14 million on the project over the past several years, and was ready to cut its losses and head south to Zimbabwe.

Oliver still might do just that, but not before the majors kick the tires. In the last six months, North American majors Placer Dome, Battle Mountain and Newmont Gold, as well as South Africans Rand Gold and Anglo American, have demonstrated interest.

To date, only the Segala deposit has been delineated, and areas to the north and east are said to be prospective.

Oliver has now acquired a vested 50% interest in the property by paying CMC $350,000 in cash and issuing 1 million non-transferable warrants exercisable for one year at 70 cents.