CAPE TOWN (Business Day) -- South African gold miner Gold Fields [NYSE:GFI] is in a prime position to take a stake in a mining venture in Mali, which the exploration company Glencar, has described as containing “bonanza grade” gold deposits.

Bloomberg reported yesterday that Dublin-based Glencar Mining, listed on the Irish Stock Exchange [IEX:GN2; AIM:GEX], said it would seek a partner to help finance and develop its Komana gold project in Mali.

Glencar CEO Hugh McCullough said the company planned to deliver the results of exploratory work at the site by the end of this month, although it might not make a decision on a partner for as long as a year, depending on drilling results.

“There is something very significant there,” McCullough said. “I would be am confident this will go to the next level.”

Glencar’s shares have risen 138% this year, giving the company a market capitalisation of €42.8 million ($53.1 million).

In September last year Gold Fields and Glencar announced they had signed a nonbinding agreement that would give Gold Fields a 25% interest for funding $2.5 million of exploration at Glencar’s Bokoro, Sanioumale and Farasaba licences in Mali.

It could increase its stake up to 65%, depending on its funding contribution. The parties also said Gold Fields had been given the right of first refusal on the Komana project.

“Komana looks like a very promising project and we are watching it with interest,” Gold Fields spokesman Willie Jacobsz said yesterday.

“We are pleased to have first refusal on this particular project.”

Gold Fields, like other major mining groups, funds junior exploration companies in return for rights to participate in mining projects if a viable deposit is found. The strategy minimises the costs and risks of new exploration ventures.

Gold Field’s share price is currently trading 11 cents higher at $25.08 on NYSE.