Anglo Asian Mining Share Discussion Threads

[zhockey] 02/11/2016 15:10

Ah ha! Behold I am a genius master charter

[blueball] 02/11/2016 15:07

This is undervalued by a factor of 100%.

[jbravo2] 02/11/2016 14:24

Yes, a very long way. I'm not sure even a Nessie formation will close that gap to SOLG's valuation over the next week, perhaps a month? ;)

Anyway, the buying continues. The value is just too good here. Why go elsewhere? :)

[zhockey] 02/11/2016 13:56

Yes the 200sma was around 12 when I checked a few days back. Be that as it may, AAZ is still way off a blue sky valuation like SOLG.

[doc_oj] 02/11/2016 13:51

got back in after about 2.5 years!

have had nightmares here before but everything seems to be going positive for now. gold also seem to be breaking out again. although we are sitting at about 700% rise from the year low!

[zhockey] 02/11/2016 13:45

Matt would ban me :D

[celeritas] 02/11/2016 13:42

Lol, yes the well known Nessie formation, you forgot to add is followed by the rocket formation.

[zhockey] 02/11/2016 13:38

OK so I have been studying charting and I can tell you with a high degree of incontinence that we have what is called a Nessie formation on the daily chart. This rarely seen cryptozoological pattern is very bullish and is switftly followed by an ascent to alltime highs and gives a target of £20 per share. Just incase you were wondering, I am not qualified to give financial (or any for that matter) advice.

[someuwin] 02/11/2016 13:16

Building up steam again.

[jbe81] 02/11/2016 12:58

Gold looking to break $1300. Should move a lot more in the next fews days. Then if Trump wins will be in a new trading range, and your charts look more and more likely to pan out , Matt.

[jbravo2] 02/11/2016 09:57

I'd say the exciting aspect is the possibility that zh flagged up before.
This site is 3km north west of current plant and they've already identified the same sort of stuff 1.5km south of that. i.e. halfway between the current site and Ugur. They'll start drilling that bit in 2017.

There is the possibility therefore that this is all one resource stretching over the 3km. It would hardly be surprising bearing in mind the location and of course the flagging of prospectively extensively larger resources in the IPO docs.

[bleepy] 02/11/2016 09:45

Using averages, the average gold grade for holes drilled is 1.47g/t.

1.2mt x 1.47g/t = 1.76m ounces.

1.76mozs x 0.87(recovery) = 1.54m ounces

From memory Aaz were using 0.3g/t as a cut off grade for their heap leaching.

[celeritas] 02/11/2016 09:44

I watched this last night, doesnt paint a good light on the Clinton foundation

[jbe81] 02/11/2016 09:39

Wouldn't be surprised to see an rns tomorrow as well

[blueball] 02/11/2016 09:38

Better day today next leg to 34p has started.

[zhockey] 02/11/2016 09:37

Cannon,

At 2g/t you cannot see the gold. They will need to wait for assays. Thats why they stopped at 30m when they were still in gold, they would not have known it at the time.

[cannonfodd3r] 02/11/2016 09:27

Stand corrected Dre, i missed that figure.

Good to start some discussion on the reserve though as it seemed to have been glanced over because of the sudden rise and everyone getting excited.

I suspect that there may be an RNS tomorrow ahead of the presentation to update on drilling. They will have set one rig on drilling to depth immediately i suspect to give an indicative depth or resource while the others start quantifying the spatial limits. This will have been done by now so as long as its been tested this information should be available. Unless of course they are hundreds of m down and still going in ore, then ill wait patiently!

[jeanesy] 02/11/2016 08:51

hasnt taken too many buys to move this up

[drdre] 02/11/2016 08:49

RE: 5277 - no, the conservative estimate I have is 156K ounces based on the drilling area and there is still work to do - nothing is guaranteed until it is defined as being economically feasible at prevailing prices. It is a positive but I have learnt never to get carried away.

[scottishfield] 02/11/2016 08:45

Good posts, thank you guys, v interesting indeed.

[cannonfodd3r] 02/11/2016 08:44

So a conservative estimate of 1 to 3 million Oz then

Reza always said mid tier for a reason, this is probably the rationale for that. He will have had a bloody good idea of this for years.

Very interesting times ahead. Makes the daily fluctuations seem like a drop in the ocean in reality

[drdre] 02/11/2016 08:21

Based on the RNS of the 17/10 I have used an old formula from my notes for trying to get an approximation for the new resource. This is based on my old notes - I am no geologist, but it helps provide me a picture of what may be present.

My initial thoughts were that the grades were quite low - I use another rule of thumb where you multiply the grade by the length. Anything over 100 is an exceptional result. Personally, I would look at 25-50 being my own cut-off when just eyeballing drill results. So looking at the results using the grade x strike:

13.26 Hole 3
49.14 Hole 4
9.36 Hole 7
37.99 Hole 10
41.82 Hole 11
185.3 Hole 14
39.76 Hole 18
33.3 Hole 20

Hole 14 is exceptional.

Rough resource calculation is:

Strike Length x Depth x Width x Specific Gravity = "X" (in tonnes)

I use a specific gravity for the rock density of 2.5, just for reference. This is density of the ore body (i.e. the rock). I am no geologist but have been interested in mineral stocks for nearly 20 years so use this as a catch-all.

I have used the drill parameters for establishing a potential resource.

380m x 34m x 180m x 2.5 = 5355000 tonnes

I have also been conservative on the gold content and used 1g/t, which gives 156K ounces.

If you use the size of the Ugur deposit area from the RNS and use a depth of 50m:

1000m x 50m x 500m x 2.5 = 42500000 tonnes or 1.2m ounces @ 1g/t.

This is a very good starting point for a potential range but you also need to consider the recovery percentage (87% is quoted).

All the holes ended in mineralisation and the discovery was open at strike.

Very good news all in all but work to do to confirm if the discovery is economically feasible. However, these drill results are from surface and the indicative recovery rate looks very good, so all in all I am hopeful that will extend the overall gold resource portfolio of AAZ. I obviously hold :)

Obviously, feel free to correct the above - been a while since I dug out my notes and looked at anything like this in any kind of detail.

[jeanesy] 02/11/2016 08:17

Are we due a fed rate decision today? I suspect that the price will fall back after Clinton wins the election if not before.I see that the manat has weakened again recently which is good news here.Th cold snap in Gedebay is not expected to last too long which is also good news. I wonder how many will be buying before the presentation tomorrow?