Sirius on the prowl

17/08/2006 Robert Tyerman

Copper play Sirius Exploration is bullish on current Macedonian projects and on the look-out for acquisitions.

AIM-quoted Sirius, chaired by financier Richard Poulden with well-connected mining geologist Nicholas Badham as managing director, has a joint venture agreement with major US miner Phelps Dodge on two projects in mining-friendly Macedonia. Sirius says an investment of £8 million could take the first, Kadiica, into production in two to three years and yield a potential £190 million over ten years.

Poulden and Badham say it is possible that Sirius would take the leading role at Kadiica, which could be too small for a Phelps Dodge-operated project. Copper at the other project, Osogovo (or Red Ridge), is abundant but at very low grades, though there is a rich seam at Kalin Kamen on the eastern boundary.

Kalin Kamen, where Soviet era drilling showed results such as 3.7 per cent copper over 16 metres, is wholly owned by Sirius, which has filed a new mining claim there. The company has benefited from an agreement for a year's exclusive use of mining giant Rio Tinto's data from its own previous exploration in the area.

Sirius, which lost £299,000 in the year to March, raised £865,000 before expenses in that year and tapped the market again for £250,000 in July at a lowly 4p, down from 6.5p a year ago. Still quoted at 4p and valued at £2.3 million, the company, which says it rejected terms of a possible investment by RAB Capital, would like to use paper to make one or more acquisitions in the sector.

The shares' appeal is speculative.