Greystar Share Discussion Threads

[lasata] 25/2/2008 08:19

Greystar Feasibility Study Progresses in Colombia

By Andrew K. Burger
24 Feb 2008 at 11:20 AM GMT-05:00


BAKU, Azerbaijan (ResourceInvestor.com) -- The pieces are coming together for Greystar Resources [TSX:GSL; AIM:GSL] as it moves towards completing a feasibility study for the Angostura deposit in northeastern Colombia. Progress is being made regarding efforts to determine and evaluate metallurgy, rock mechanics, environmental monitoring and infrastructure requirements, as well as strengthening community relations, according to a Feb. 20 media release.

Aimed at upgrading intervals of higher grade gold-bearing ore from the Indicated to Measured Resource category Greystar is carrying out a 40,000 metre in-fill diamond drill program in selected areas, an effort that is expected to be completed in Q3 2008.




Tonnage estimates at Angostura increased 8.4%, gold grades rose 2.6%, and Measured and Indicated Resources increased 11.1% following the completion of a similar effort within the core of the deposit's Perezosa tunnel in 2006, Greystar executive vice-president Frederick Felder, noted in the release.

"The current drill program is in the early days but the values from the late 2007 in-fill drill program are showing confirmation of the continuity of higher-grades with hole DM07-12 returning 13.87 grams gold per tonne over 5.25 metres and 17.24 grams gold per tonne over 5.4 metres," he added.

Opening Up Angostura

Greystar holds mining concessions covering just over 30,000 hectares in northeastern Colombia near the Venezuelan border 55 kilometres by road from Bucaramanga, a city of approximately one million people.

Management has steadily and in a cost-effective manner been defining and expanding Angostura's gold and silver resources. Nearly 267 thousand metres of drilling has been completed as of February. Inferred Resources were converted to the Indicated Resource category at a 246% rate between 2004 and August 2006 at a cost of C$4.20 per ounce.

According to a December 2007 resource estimation update, Angostura hosts an NI 43-101 compliant Measured Resource of 88.49 million tonnes of gold and silver grading 0.79 grams and 4.0 g/t, respectively, and an Indicated Resource of 145.826 million tonnes grading 1.69 g/t gold and 8.0 g/t silver.

This translates into 10.15 million ounces gold and 37.76 million ounces silver, which is contained in 234.32 million tonnes of material grading 1.35 g/t gold and 7.3 g/t silver, according to company information. An additional 3.43 million ounces of gold in 77.7 million tonnes grading 1.37 g/t is estimated and categorized as Inferred Resources.

Latest results from the 25-metre interval in-fill drilling program also included 5.16 g/t gold over six metres, 3.72 g/t gold over 10.65 metres and 40.4 g/t gold over 3.85 metres. Higher grade intervals were not drilled to sufficient density in the company's December 2007 resource estimate to qualify as Measured Resources according to NI 43-101 criteria. Some two-thirds of Greystar's 2008 drilling program will be dedicated to upgrading and better defining these higher grade intervals, according to management.

Determining Feasibility

Drilling activities currently underway also aim to improve Greystar's understanding of areas of the Angostura deposit outside Perezosa, as well as identify new targets. Underground development work at Perezosa includes more than 2,500 metres of drilling from 56 drill stations

Underground work is progressing at Veta de Barro, where the deposit has been opened approximately 200 metres higher above the workings at Perezosa. Drilling has advanced 85 metres and a 158-metre pilot drill hole from within the drift has been completed.

New target exploration is underway and the first drill hole testing to 409.1 metres has been completed at the Las Animas target approximately one kilometre south of the main Angostura deposit and the diamond drill rig is being moved 250 metres south.

Moving to complete a feasibility study for Angostura, Greystar is also carrying out rock mechanic and pit stability studies, which are on schedule and expected to be completed by September 2008, management reported. Designing of an access road extension to the Vetas target area is 70% complete. Water quality monitoring programs are being carried out every three months with representatives of the local environmental authority.

In addition, two parcels of land have been purchased to facilitate exploration of the Las Animas and Violetal areas of the Angostura property. Greystar has also purchased 50% of one of the 10% net profit royalties that cover half of one concession lying over the Angostura resource.

Mining, Community & the Environment

Greystar employs a team of 404 people at Angostura. Its plan for developing the concession's resources includes constructing crushing, milling, heap leaching, ore processing and waste processing and storage facilities on-site. Construction is expected to begin in 2009 with first production expected in 2010. The company has C$46.2 million of cash on hand, sufficient to see the project through feasibility the production decision stage, management forecasts.

Metallurgical testing indicates that more than 91% of the higher grade gold and somewhat lower for lesser grade ore from transition zones contained in Angostura's oxide deposits can be recovered using heap leaching methods, according to a management presentation. Recovery from transitional zone materials exceeds 68% but depends on sulfur content. In addition, 79% of gold can be recovered from higher grade sulfides that also contain higher sulfur content by using a combination of flotation and bio-oxidation followed by leaching, according to company information.

Working with the Colombian Ministries of Mines and Energy, Environment, Defense, provincial and local government agencies, Greystar teams are also carrying out regular community socialization meetings that cover topics such as environmental impact, road construction, royalties and community development.

Environmental baseline studies for the project have been completed by LV Ingenieria. Water quality monitoring is conducted every three months by PSL Analysis and audited by the local environmental monitoring department. Ecological studies of flora and fauna, as well as three years worth of temperature, precipitation, humidity and other weather data, have been carried out and a revision and update of an earlier environmental management plan has been completed.

[tinpotdik] 29/1/2008 23:35

What caused the fall-off in Jan? - anyone. thanks.

[lasata] 30/12/2007 21:52

Greystar's Angostura Deposit Is Of Size To Attract A Predator





Back in 2004 when it was hardly a year old Ocean Equities acted for Greystar Resources when it decided to get a dual listing on AIM. Its reasoning was simply that London was more pragmatic about companies operating in Colombia than North Americans. Ocean Equities proved that it had the ability to pick clients as Greystar has gone from strength to strength over the intervening years and does not appear to have encountered any serious political problems in Colombia. The company's focus is on the Angostura gold silver deposit in the north east of the country and it is now preparing for a feasibility study on what should prove to be a long life mine.
In the last couple of days Greystar has come out with a revised resource estimate of 10.15 milion ozs gold and 49.84 million ozs silver in the measured and indicated categories. This is 37 per cent more than the indicated gold resource estimate at the end of last year and now represents 75 per cent of the total gold in the mineral resources. Frederick Felder of Greystar points out that "this new resource estimate continues to show the expansion potential of the very large Angostura deposit. The addition of measured resource estimates marks a milestone for the project and Greystar's exploration team will focus on further expansion and upgrades at Angostura, with particular attention to lowering the waste rock ratio and examining a staged production scenario starting with the oxide mineralization and transitioning into the sulphide material all leading to a feasibility study starting in 2008".

Ocean Equities is clearly delighted with Greystar's progress and highlights the fact that a significant portion of the previously indicated and inferred resource has moved into the measured category. This resource update includes results up to October from 717 drill holes totalling 244,443m and is an update from December 2006. During that time the resource in all categories has increased from 11.6 million ozs to 13.6 million ozs and it is worth noting that plenty of junior gold exploration companies have considerably less than 2 million ozs as a global resource so Greystar stands out as a success story on a world scale.

The ounces in the measured and indicated categories now total 10.2 million ozs which is 75 per cent of the global resource, compared to 7.4million ozs which was only 64 per cent of the global resource previously. This greater confidence will improve the economics of the deposit as it is highly likely that a greater number of ounces will now be mineable than previously considered. The grades of the new resource statement are consistent with previous levels and the grade of the measured and indicated ounces is 1.35g/t, a negligible increase from the previous 1.33g/t and Ocean Equities is happy that the grade of the potential run of mine ore remains the same.

The broker then goes on to say that more important for the economics of the project than the increase in total ounces is the increased numbed of ounces of oxide material, which is now 2 million ozs grading 1.07g/t in the measured and indicated categories compared to the previous 1.5million ozs at 1.13g/t. This increase of half a million ounces should have two very positive effects on the economics of the mine for two reasons. First, the estimated recovery from oxide material is 91 per cent as opposed to just under 80 per cent for sulphide material which means that a greater number of ounces will be recovered from the ore at no extra cost as the ore would be mined and processed in exactly the same way whether it was oxide or sulphide. Second, it is looking increasingly likely that the staged process of an oxide only operation moving to a full oxide + sulphide operation will be achievable, which will reduce the
initial capital required for the project.

Interestingly Greystar now seems to be trading at an enterprise value of US$17/oz in the ground in all categories and US$23/oz for just the measured and indicated ounces. The disparity between this and the average for Canadian listed development companies of over US$100/oz is quite ludicrous considering the potential size of the Angostura deposit and the fact that the company will start its feasibility study in the first quarter of next year. It can only be put down to fear of Colombian politics and the answer to that is for North American investors to apply for passports and get about more. In the meantime there is always the possibility that a bigger producer will turn predator as deposits of this size are few and far between.

[andy] 30/12/2007 11:05

rambutan2,

From another source;

"On a quiet news day, word continued to swirl that AngloGold Ashanti has found a rumoured plus 5 million ounce gold deposit in Colombia. AngloGold was hoping to hold off until February to announce the find but Colombia's president Alvaro Uribe came out with the news after mines and energy minister Hernan Martinez told him exploiting the deposit could double Colombia's gold production. This news, if indeed true, could well boost other Colombia gold explorers"

--------

Hope you had a good Xmas and have a prosperous New Year!

[rambutan2] 29/12/2007 23:45

COLOMBIA'S government is talking up a gold find it reckons could be one of the top ten in the world and a newspaper there called El Tiempo says AngloGold Ashanti found the deposit, which will take $2bn to bring into production from 2011...

[doobydave] 28/12/2007 00:21

Good article on Minesite: "".

Minesite is correct to point out the ridiculous Columbian discount. A handful of majors are working there quite happily. Personally I'd rather have my company in Columbia than just about any other Latin American country as political risk is substantially less, based on recent history.

Thanks to the extra oxide ounces, the inital weakly positive scoping study will now be bettered and especially if hefty strip ratios can be improved. By how much remains to be seen, but now that 75% of ounces are now in measured and indicated catogories, it just has to attract predatory interest.
DD

[dak] 12/10/2007 08:36

Up 10% at close in Canada yesterday

[bionicdog] 12/10/2007 08:10

There appears to be a bit of life in the old dog yet.

[hyper al] 19/9/2007 07:57

not looked at this since Oct 2005.

The important part of todays news is

"No Exposure to the ABCP Market"

[tinpotdik] 04/9/2007 22:16

Well at this price there must be value in spite of the processing difficulties.

[rambutan2] 18/7/2007 23:21

fair write up...
There aren't many places where you can find a virgin gold resource exceeding 11m ounces excluding silver credits, so Greystar's Colombian Angostura deposit sticks out amongst its peers. Set in the Columbian hills fairly near the Venezuelan border, Angostura lies 55km and just over two hours by road from the provincial capital Bucaramanga...


by the way, it's colombian independence day this friday - viva bolivar!

[doobydave] 25/6/2007 14:29

Yes, I'm still awaiting WTI's good pleasure as well. Another irritation. Such is life!

[rambutan2] 25/6/2007 13:59

hi dd,

yes still in it! although have taken profits along the road having got in at approx 140p. agree most frustrating.

ot: had hoped to see wti today, but has been put off for a few days. again, rather frustrating.

[doobydave] 25/6/2007 13:48

At what price? With or without warrants? Very aggravating - I really wish they wouldn't do this.

Meantime, share price continues to fall off a cliff. Not that I'm invested - you in this rambutan, or just watching?

[rambutan2] 25/6/2007 11:58

been waiting for this...

TSX, AIM SYMBOL: GSL June 25, 2007 Greystar Resources Ltd.: Private Placement of Up to 6,000,000 Shares

Greystar Resources Ltd. (the "Company") (TSX:GSL)(AIM:GSL) announces that it has appointed a syndicate of agents led by RBC Capital Markets including Ocean Equities Ltd. (collectively, the "Agents") to act on a best efforts agency basis in connection with a marketed private placement of up to 6.0 million common shares (the "Offering"). The Offering is anticipated to price later this week and close on or about the week of July 9, 2007.

The net proceeds from the Offering will be used to advance the Company's Angostura project in Colombia to feasibility, for exploration and for general working capital.

The Offering is subject to certain conditions including, but not limited to, the execution of a definitive agency agreement with the Agents and the receipt of all necessary approvals, including the approval of the TSX.An application will be made to the London Stock Exchange to admit the common shares to be issued pursuant to the Offering to AIM at the Offering's close.

[rambutan2] 05/6/2007 00:47

yes, well that seems a very fair summary by minesite, but this game of bluff can be a very drawn out and frustrating one for investors, as has been proven already.

i decided to take a third of my stake off the table and stick it into some other sits.

[serpicouk] 04/6/2007 21:47

Minesites take on events:

Greystar Resources Gets Itself In Shape For An Approach By A Major

As our Canadian Correspondent pointed out over the weekend the reaction in the market to the positive scoping study at its Angostura gold project in Colombia was odd to say the least. Here was a study which confirmed that the project would produce an average of 395,000 ozs gold and 1.3 million ozs silver over the next ten years at a cash cost of US$276/oz after silver credits and the share price drifted down C10 cents to C$8.05. [...]



Upshot is that they feel take over speculation was built into the price in 2006 and has fallen back when that cooled. Costs in the scoping study were set at a maximum. Should get an increase this year for the resource associated with the open pit operation. And that the scoping study looked only at the more expensive, less favourable irr approach of a unified oxide-sluphide process because the larger scale operation would be more attractive to a major.

[serpicouk] 03/6/2007 13:54

Totally agree about the 'general air of vagueness'.

But my point wasn't that the market should be impressed with an irr of 14.2% but rather questioning why the market had reduced the market cap by one third over the last year against what has been quite favourable market conditions and in the face of real progress.

In terms of the irr:

I guess the BFS will produce a better idea of costs (hopefully they have over estimated by 30% (rather than underestimate by 35%).

I'm also bullish on the price of gold (and silver).

I guess the costs are also GSL related and would be less for a major? I'm thinking things like the lease/purchase of mining fleet equipment etc.

I also guess there may be opportunities for exploiting the oxide first and taking the cap ex strain out of the more expensive sulphide?

And I guess positive upgrades to the resource estimates from further drilling can't hurt the profitability of any potential mine.

However, all that said, I'm still carefully considering my position.

[rambutan2] 02/6/2007 23:18

serpico,

the mkt isn't going to be impressed by an irr of 14.2% and a general air of vagueness about just about everything. in fact, i think the price has done well to stand still and not slip.

that said, i'm still a supporter and believe that a bid will likely materialise before the end of the year, although perhaps not at the price i might have hoped a year ago.

[serpicouk] 02/6/2007 22:52

Just looking at the disappointing share price We seem to be back where we were in October 2005. I know a few more shares are around but you'd think the progress over that time would have seen this (staying) higher.

Don't have too much time to look at this but GSL seem to have accomplished a fair bit in that time (admittedly a little behind their stated schedules but when has a miner ever come in ahead of schedule?).

Plenty of drilling had occurred - 14 drill reports have seen the resource estimates significantly increased.

Oct 05:

Indicated resource contains 5.83 million ounces of gold and 24.6 million ounces of silver from 148.14 million tonnes of material grading 1.22 grams gold per tonne and 5.17 grams silver per tonne.

Inferred mineral resource of 4.47 million ounces of gold and in 21.5 million ounces of silver from 123.3 million tonnes material grading 1.13 grams gold per tonne and 5.42 grams silver per tonne.

To the last resource update:

Indicated resource contains 7.42 million ounces of gold and 32.97 million ounces of silver from 173.4 million tonnes of material grading 1.33 grams gold per tonne and 6 grams silver per tonne.

Inferred mineral resource of 4.2 million ounces of gold and in 17.7 million ounces of silver from 80.8 million tonnes material grading 1.62 grams gold per tonne and 7 grams silver per tonne.

(note: the results may not be directly comparable as I'm not sure what cut offs were used)

I believe GSL are expected to update the resource still further – some time in June (if on schedule).

They have shown impressive recovery rates for their bio-oxidation process of sulphide samples.

Completed a scooping study that showed an open pit mine is commercially viable in today's business environment. Read the study for more info/numbers.

GSL will be starting the bankable feasibility study in a few months time.

But hey, what do I know, if the market says its only worth this market cap who am I to disagree?

But you have to imagine that a gold/silver resource of this size with a BSF would be worth a considerable sum of money to a big player...question is, am I going to be made to wait until late next year to see any value realised? Another question is, am I prepared to wait that long while others surge ahead...

[serpicouk] 01/6/2007 15:10

Gold and silver hopeful Greystar Resources says an independent study suggests revenues of £232 million to £296 million from Angostura in Colombia.

Vancouver-based Greystar cites an independent scoping study by the Hatch consultancy showing potential cash flow from an open-pit operation at Angostura over an 11-year mine life ranging from $464.6 million (£234.6 million) with the gold price averaging $515 an ounce (against $658 today) and silver at $9 an ounce (against $13 now) to $593.6 million, with an average $545 gold price and silver still at $9. The study envisages provisional open-pit reserves of 6.8 million ounces of gold at a low grade of 1.28 grammes per tonne of ore and 31.2 million ounces of silver at 5.82 grammes per tonne.

The Hatch study suggests cash costs, before capital expenditure, of $276 an ounce of gold, after taking silver credits into account, and envisages an initial capital cost of £190 million, with another £70 million over the life of the mine. AIM and Toronto-quoted Greystar, which had £121 million in the bank in April, says it has enough money to take it through to commissioning a bankable feasibility study info the Angostura project, though it might 'top up' its cash before then.

Greytstar shares, which have swung between 97p in 2004 and 585.5p a year ago, were recommended by Growth Company Investor as a 'speculation' at 114.5p in October 2004 and as offering 'more growth' at 275p in August 2005. Now 385p, valuing the company at £147 million, they should outperform several sector peers.

[serpicouk] 31/5/2007 17:27

Scoping study out and no one battered an eyelid. Amazing. share price does nothing - but no surprise there.

Makes interesting reading - anyone want to discuss the findings?

[bionicdog] 14/5/2007 08:26

All chugging along quite nicely.