News & Analysis » UK

Alecto Minerals Plc: All Set For 2013

Contributed by Fox-Davies Capital

Alecto enters 2013, in a far stronger position than it did in 2012, both financially and in its asset base having gained a real sense on momentum over the last six months that given the proposed news flow of exploration results looks set to continue into 2013.

Ethiopia and Mauritania are countries which are chronically under explored despite having very prospective geology. Alecto's two tenements in Ethiopia lie in greenstone belts prospective for gold and base metals and proximal to the only area of current commercial gold mining (Lega Dembi mine) and two proposed new mine developments (Nyota's Tuli Kapi project and NimCo's Dawa project), as well as a number of multinational and junior exploration companies such as Stratex, OreCorp and BHP Billiton. Mauritania hosts several large existing mining operations for gold, copper and iron ore (Kinross' Tasiast Gold Mine and First Quantum Minerals' Guelb Moghrein Mine). Alecto holds tenure over three prospective areas for precious and base metal mineralisation.

Boosted by the recent appointment of former SRK consultant, Niall Tomlinson as Technical Manager, Alecto now has been undertaking exploration programmes in both countries supported by funding from a cornerstone investor that was secured in 2012.

This has given the Company more of a sense of purpose, direction and momentum.

Having secured a cornerstone investor in 2012, the Company remains funded, based on the current rate of cash burn until 2H'13.