“The other major option for small mining companies raising finance, apart from debt is a strategic partnership with a larger mining company, or cornerstone investor, frequently Chinese domiciled,” said Phil Swinfen, Metals & Mining analyst with brokers Old Park Lane Capital. “These often take the form of convertible loans and private placements. The main aim of these larger investors is to secure off-take agreements. We have seen an increase in larger companies taking equity stakes in small juniors.” 

A synthetic seismogram is used to test possible interpretation models for 2D and 3D seismic data. This can also be used to represent the response of the predicted geology to aid the planning of a seismic survey. Synthetic seismograms are generated using specialist geophysical software.

Here is a simple guide on what is involved in a 2D survey.

There must be an agreement between the consortiums funding the survey, the agricultural liaison officers and each landowner. Landowners satisfaction must be acquired before a survey can be completed.

Before the seismic survey can begin, the depth of the basalt bedrock must be determined. Probes or spikes are inserted into the ground and connected by a cable. A small amount of current will pass through the probes and the voltage drop is measured.

The data lines that are laid for the seismic survey are about 60 kilometres long and stretch across the countryside are. Coordinates are marked and geophones or microphones record the sound waves reflected on various subterranean layers by the seismic reading specialists. These geophones are placed about 10 meters or approximately 32.5 feet apart and linked by cables.

There are numerous vehicles and specialist equipment will be used during the process. These vehicles and equipment will drill small holes parallel to the cables and geophones which should measure around 8cm/3 in diameter and will be between 10 25 meters or approximately 32.5 82 feet deep depending on the depth of the basalt bedrock. Small sound charges are placed in the drilled holes and detonated to create a sound wave. The sound wave will travel through the ground and will reflect off the various sub-terrain strata. The team will inspect the drilled holes and place the sound charges.

Analysis of seismic data gathered and recorded from beneath the earth’s surface will be carried out by teams of specialists within the company hired. This information is then used to determine the amount of Oil in the ground. It is this, of course, that interests the company looking to extract the natural resource and ultimately those at Old Park Lane Capital.

Red Emperor, have exploration interests in Puntland, Somalia, and also the Republic of Georgia.

In Puntland, Red Emperor has a 20% interest in 2 licences encompassing attractive exploration plots in the Dharoor and Nugaal valleys. Both of these exploration locations protect almost 40,000km2 and incorporate around 19.9 thousand barrels of oil. Red Emperor’s partner and PSA owner, Africa Oil Corp. (TSXV: AOI), expects drilling to commence in Q3, 2011.

Red Emperor features a 20% operating interest two onshore prospects inside the Republic of Georgia.These locations cover 6,500km2. Through a 2d seismic programme covering 410 km completed with RPS energy they have identified 68 potential structures containing an estimated 2.045 billion barrels.

The Company also has a 25% interest in a gold and copper project in Jillewarra, Western Australia.

Range often sees heavy volumes but this time it surpassed even it’s own high standards. It was the most traded stock in London. A staggering 100 million shares changed hands by 10am! A incredible result for Old Park Lane capital and, more importantly, for their investors .

Range aided this colossal share movement by announcing plans to start drilling in Georgia soon. There are also rumours about its plans in Somalia. Their take on Range Resources is clear: “The management is making huge progress de-risking the business while maintaining exposure to highly attractive exploration upside.”

Impressive stuff from Old Park Lane Capital. Keep a close eye on them and their stocks and your bound to make money.