Klaus Eckhof, MD, Moto Gold - Interview http://www.miningmx.com/pls/cms/new_search.search
KLAUS Eckhof, MD of Moto Gold, submitted to an interview with Miningmx. Moto Gold is a Toronto and Sydney listed gold exploration company that is developing a resource in the Democratic Republic of Congo.
MININGMX : Can you tell me what is happening with the project in the DRC?
KLAUS ECKHOF: Well we are progressing rapidly now to a pre-feasibility study and the bulk of it will to be completed by early 2007. The initial operation will be around 300,000 ounces/year commencing at the end of 2008 into 2009.
The current resource base is around 11 million ounces. And as we know, we are spending around $1.5m/month and we envisage that the resource with be in excess of 15 million ounces by the middle of the year.
MININGMX : What is your assessment of the DRC and operating in the region?
KLAUS ECKHOF: Basically the company was always under-valued owing to the location in the Congo and the Congo itself. However, I must say up front that the Congo is looking quite trendy. As you look around there are a lot of companies now in the Congo and the confidence level is now increasing.
But any deals being made could not be completed satisfactorily because of the location and the discount we had. So, we decided six months ago to change the board to reflect the move from an exploration company to a more emerging producer. I think that that has been successfully completed.
MININGMX : And can you just run me through how the project will be financed.
KLAUS ECKHOF: That will be done probably in the next six to eight months. Alot of banks have us approached from Barclays to Standard Bank to Rothschild. Everyone is keen to look at it because it is a world class project and there is a lot to be financed. And there is money to be made for any bank to come in and there are not many gold projects going around. We could produce up to 800,000 oz/year.
MININGMX : Surely gold at that kind of level will truly attract interest of the majors?
KLAUS ECKHOF: All the majors have been on site. Some of the majors have made offers on various during the last two years. Most of the offers usually had a huge discount which was not satisfactory for the board. Hence, I decided to change the profile of the company to become a merchant producer. MININGMX: And your future with Moto Gold?
KLAUS ECKHOF: I think I have achieved what I have always wanted to achieve. We are getting close to production in the next three to six months, once the pre-feasibility has been completed. I will set back and leave it to the mining industry to run the company, which is not my field.
MININGMX : Will you still maintain a stake in Moto Gold?
KLAUS ECKHOF: I still have a stake in Moto Gold.
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Comment: my estimate was 15.9 mill ounces on 1 July and MOE's estimate is "in excess of 15 mill ounces".
MOE Price at posting:
0.0¢ Sentiment: None Disclosure: Held
