Oriel Securities' Russian interests could transform it into a major gold player

For Sergey Kurzin, Russian nuclear scientist-turned entrepreneur, the gulag is a place of sad national memories – and glittering commercial potential. Kurzin, who secured key mineral rights for Bema Gold from Chelsea boss Roman Abramovich, professes keen excitement about gold assets held by his new AIM play, Oriel Resources, in the remote Russian region of Magadan, originally built by slaves.

Oriel, run by Kurzin and Stephen Dattels, co-founder of the multi-billion dollar Barrick mining group, has a gold prospect at Taboga in Magadan, in the state governed by Abramovich ('not a philanthropist but good for his people'). Gulag labour once mined 600,000 oz of alluvial gold there but Kurzin contends sulphide deposits could provide 40 million tonnes of ore and make it world class.

He enthuses about Oriel's other deposits, at Urup Island near Japan, and elsewhere. One, the Shevchenko nickel deposit in Kazakhstan, could become so big it might be de-merged.

Broker Canaccord helped Oriel raise £40.6 million at 65p, valuing it at £104 million. Now 77.5p, it could motor if these prospects stack up.

Blade runner

At this bull market stage we expect more entrepreneurial characters to make a pitch. Sure enough, Chris Kyriakou from Melbourne, boss of AIM-listed security device concern Quiktrak, is lining up a new junior market float.

Broker Nabarro Wells is advising on Toledo Copper, a hopeful with a stake in the Atlas properties in the Philippines. One to watch.

Iron determination

Asia's thirst for steel has transformed Anglo-Dutch steel maker Corus from a cash-seeping stretcher case into a stalking horse for Russian billionaires. It has also provided the rationale for Aussie iron industry veteran Ian Burston to bring Down Under penny stock Aztec Resources to AIM in a bid to revive the Koolan Island iron ore prospect off the coast of Western Australia.

Run by mining behemoth BHP Billiton until 1986, Koolan Island still contains an estimated 25 million high-grade tonnes of iron ore. BHP moved away for bigger projects, but Burston, who used to run Rio Tinto subsidiary Hammersley Iron, argues it can pay handsomely.

He also headed Australian iron group Portman, whose technical experts, to his chagrin, shunned Koolan Island. Burston claims it could yield two million tonnes a year for 12 years -– with potential margins of £4 a tonne – and hopes an imminent drilling programme could double the resource estimate to 50 million tonnes.

Aztec has £750,000 cash, enough for first drilling, but will need £2.5 million for a feasibility study to take Koolan into production. Shareholders Sinom and Citic of China and Sociéte Générale could arrange project finance, says Burston.

Seymour Pierce is broker and Grant Thornton nominated adviser to Aztec, trading at 6p Down Under. It could repay a strong-nerved punt – if drilling confirms Burston's hopes.

Caribbean promise

Last month we highlighted Goldstone Resources, wanting £5.6 million from AIM to prove a major gold field in Guyana. Now comes confirmation this South African venture, advised by Westhouse Securities, is to offer shares at 25p, valuing Goldstone at £25 million.

Eminent exploration director Dr Lawrie Minter claims alluvial gold deposits in Guyana's rivers indicate a source resembling South Africa's giant Witwatersrand gold deposits. A gamble.