Peninsular Gold Share Discussion Threads

[aleoap] 30/4/2011 17:01

Yes Rico still have a holding over at CNR, less than half of what I had but can you blame me with an average of 0.5p. Started taking profits at 5p all the way up. I'll be out fully when it hits 15-20p either this year or next.

ORE worries me with nearly 1.7 billion shares, however I have yet to research it so cannot provide any opinion.

I am moving/sticking with un-hedged gold producers now. If you believe gold is going north of $2000 then profits in these miners will/should grow exponentially. Obviously this means moving away from explorers but my reasoning behind this is as currency concerns grow miners with income and gold reserves are reasonably protected and should be the stars of the show imo. Slowly building in PGL, CEY, CLF, SHG, AAZ, OMI maybe one or two more (MML?). Also adding in physical gold to my SIPP now some providers are giving this option - again just added protection.

I like PGL, appears to be a slow mover but at £35m mcap growth prospects look good coupled with rising gold price AND off the radar (reminds of CNR when no-one was interested).

[rico_suave] 30/4/2011 10:15

o/t

hey aleoap you still
invested in CNR? you
are a hard man to track
a big thanks for all your
great research and analysis
over at CNR from the very
early days along with bonsoir
and v1d. What are your thoughts
on ORE Orogen Gold? hope you are well


ALL IZ WELL!!!


rico

[aleoap] 29/4/2011 19:13

Gold doing well today, coupled with production upgrade news should see PGL move higher.

[aleoap] 24/4/2011 21:25

Second highest volume ever for PGL on Thursday.

[aleoap] 21/4/2011 16:40

I see evidence of the overhang today, 2 x 592,500 at 40.5p. Be interesting to see some holding RNS's over the next few days/weeks if any % have moved over reporting thresholds.

This is old but the only presentation i've found on PGL:


Chenua looks interesting..

[aleoap] 19/4/2011 17:35

Worthwhile noting the intrinsic value increase once the Tersang deposit is moved to indicated. In my current estimate I value the whole 963,400 resource around £78m, using standard values per inferred, indicated and measured. Once Tersang moved from inferred to indicated total value in my estimate moves to around £120m, an increase in value of just over 50%.

Looking forward to further increases to move us over the 1 million oz total resource, but more importantly the doubling of capacity to get those revenues up.

[aleoap] 19/4/2011 16:31

Referring to my question on Tersang in 673, I've found the following in the admission doc:

'This original SEREM 'reserve' estimate was revised as an inferred resource in a scoping study by Cole (2004), who re-estimated a resource of 18.9 Mt at 0.87 g/t for a content of 528,000 oz, using a 0.6 g/t cut-off and a stripping ratio of 1.8 waste to 1 ore.'

'His outline financial valuation, using an estimated 84% recovery, modelled an annual production of 82,000 oz from 3.5 Mt of ore'

'Cole concluded that the drill sampling density was clearly insufficient to evaluate the deposit and recommended that sixty-five 70 m deep holes (i.e. about 4,500 m) would be required to bring this material into indicated reserve. Howe can only concur with this and Peninsular intends to carry out channel sampling and both RC and diamond drilling on a grid pattern over Tersang to intersect not
only the stockwork mineralised felsite, but also the vein system in the underlying graphitic shales'

So the intention appears to be move it from inferred (non JORC) to JORC indicated. Unsure if all the 528k will move to indicated at once but this appears to be the plan. Looks like they've completed half the drilling required as of 09/03/11 when the rig(s) were moved to Tersang North.

[aleoap] 15/4/2011 13:41

Stumbled across this whilst looking for evidence of any worthwhile silver content PGL may have. There doesn't appear to be based on this study and can't find any reference in the RNS's.


Characterisation of Gold from the Raub Area, Pahang, Malaysia

[aleoap] 14/4/2011 15:02

In my notes I have the following due:

1) Upgrade of plant processing facility to handle 2mtpa of ore - Q2 2011
2) Raub drilling program underway (3 diamond drilling rigs in operation) - Ongoing
3) Tersang drilling program & definition of initial JORC resource - end of Q3 2011
4) Primary ore expected to start being mined - Q4 2011
5) Further drilling at Tersang to complete JORC resource - Q3 2011 > H1 2012

As at 09/03/2011 31 holes at 2,352m RC drilling program at Tersang Project (Tersang South)completed. RC rig now moved to Tersang North area. DD rig completed 249.5m in 3 holes. Assays received for 19 RC holes.

As at 09/03/2011 RC drilling program at Raub Project completed with 24 holes drilled ranging in depth from 48m to 102m for a total of 1,964m. All assay results returned.

So we are also waiting for assay results from the remaining 12 holes at Tersang South. I would imagine we will get these in the next update.

Currently we have 217,400 JORC oz (Proved 202,000, Indicated 15,400) in tailings and 218,000 JORC oz (Measured 62,000, Indicated 74,000 and Inferred 82,000) oxide material (Raub total - 435,400 JORC oz). Tersang has 528,000 oz (non JORC). So total 963,400 oz however the Raub tailings will now be less as production is taken from this. From reading material on PGL website I see targets are given as 1 million oz at Raub and 1 million oz at Tersang. Also read an 'ambition' to discover a minimum of 5 million ounces of gold in Malaysia.

Does anybody have any information on the 528,000 non JORC historic resource at Tersang? Is the initial intention here to solely convert it to JORC rather than increase it?

[aleoap] 08/4/2011 15:59

Good videos on monument mining discussing various items. Shame there is not more PR available on PGL i.e. videos/presentations/interviews. Took 3 weeks to reply to one of my emails.


Monument Mining becomes gold producer in record time


Monument Mining - Gold production in Malaysia in record time

Only information i've found on PGL is through Daniel Stewart's top picks for 2011 note.

Could do with reaching out to Proactive/Edison etc - ideal time to start wih (hopefully) positive updates to come.

[aleoap] 08/4/2011 15:43

Thanks Paul, will/could C content be a problem for PGL in your opinion?

[polaris] 08/4/2011 15:37

Penjom and other S.E. Asian assets of AVM are under offer for $200M from a private company J&Partners, although there is a legal case being brought by their partners in the N. Lanut mine that may delay this. Penjom suffers from high C content ore and its performance has been going downhill for several years. Monument mining bought the Selinsing property from AVM and have done very well with it bringing it to produciton with nice low costs. Whether they will also encounter problems later with C content is an open question.

regards,

Paul

[aleoap] 08/4/2011 15:32

Just doing some research on fellow miners in Malaysia - if anyone can find any others i've missed please let me know.

AVOCET MINING (LSE:AVM) Market Cap 498.37m GBP
Operates three gold mines however is selling its South East Asian assets for US$200 million in cash - includes its Penjom gold mine - largest producer in Malaysia. Penjom has produced over one million ounces of gold to date and still has over 1.2 million ounces of resource. Penjom produced 51,084 oz for the year ending 31/12/10 at a total cash cost of US$944.
North Lanut (Its Indonesia asset) produced 47,580 oz for the year ending 31/12/10 at a total cash cost of US$674 - resource 411,600oz
These two are being sold for 122m GBP.

MONUMENT MINING (TSX-V:MMY) Market Cap 71m GBP
Three properties in Malaysia: Selinsing(production) - 618,000oz, Damar Buffalo Reef(exploration) - 185,400oz and Famehub(exploration)
- page 9 has a map reference for PGL, AVM and MMY
Company will commence construction of its planned Phase III expansion to lift the gold treatment plant capacity to 1,000,000 tonne per annum
Gold production will remain at 40,000 ounces of gold for year ended 30th June 2011.
Average operating cash cost of approximately $317 per ounce


OLYMPUS PACIFIC MINERALS (TSX:OYM) Market Cap 96m GBP
Bau Project - 40 km from the capital city of Kuching, in Sarawak, East Malaysia
JORC status gold resource of 1.612 M oz has to date been defined in four deposits has 50% interest
Interests in Vietnam(producing) and Malaysia(exploration)
Vietnam production is targeted at 35,000 with production is expected to increase to 60,000 oz pa in 2011
SP dropped some 50% over last 4/5 months

PGL market cap £33m just looks too cheap. Ho hum, patience needed.

Interesting that Penjom cash costs are US$944 and Monument is US$317. Big difference.

[aleoap] 05/4/2011 22:10

Just keeps getting cheaper each week. Well i'm fully loaded now so won't be taking anymore. I won't be selling them for a long while yet either. Looking at the chart it looks a screaming buy here, drop manufactured on low volume and today majority of the volume was buying yet still down. Unless there is another placing at 40p (doubt it as we had over £5m cash end of 2010) we should have a bounce soon heading into the forthcoming updates..

[aleoap] 14/3/2011 17:28

Had another 10k or so today, had to get them in 2500 lumps though, difficult to buy volume down here. Average around 50p now so happy with that.

[aleoap] 11/3/2011 18:42

Any thoughts on the share price decline? I continue to buy and took another 15k today. Shame there have been some delays but Q2 instead of Q1 isn't long to wait. I'm seeing more buys than sells yet we continue to slide, doesn't make much sense but I know these things can turn quickly so i'll continue to add at these levels.

[aleoap] 03/3/2011 20:00

Picked off the other site:

[sporazene2] 03/3/2011 19:17

Aleoap, yes, all recent placings done at minimum 50p so that is good enough for little old me, been steadily adding. one thing i need to check is who has increased/maintained their holdings since the placings.

Mgt still worries me they dont appear to be especially heavyweight or expereinced. I dont see any objective targets in terms of production and cash costs that they are aiming for over the next year. However, there is enough short term news flow for me(drill results, main plant commissioning) to take the risk here. Hopefully, there will not be another placing before we deliniate additional JORC resources at the main pit site and the remote site that has 500k non-jorc resources and ramp up to full production.

I think 50k-60K PA at $550 cash costs plus 2X500K M+I resource despoits would be my targets by the end of 2011. I would then be looking for 100K production in 2012; additionally looking to bring another 50K pa production increase in 2013 ideally with the 50K increase coming from the remote location ideally from a dedicated plant

[aleoap] 03/3/2011 17:03

Well sold my CEY today as unsure of the impact of the delay in opening the Egyptian stock exchange. May be a short term sell off next week of CEY over there with an inevitable impact over here.

Been picking away at PGL since my last post, becomes cheaper every day. Suprised there is not more interest, but then, it allows me to pick them up cheaply..

[kickstart] 24/2/2011 17:46

Good reason for EGU fall , think they may still hAVE ALONG WAY TO GO.

As a general comment I think we may be seeing a lull before the storn in gold share prices. I expect gold to take out 1425 soon and when it does it could get explosive.

[aleoap] 24/2/2011 16:44

Neither can I, although I see this as a buying opportunity and have been picking up a few goldies to build a long term portfolio. Been picking at CLF, PGL and took a large chunk of CEY luckily just before the update RNS communicated earlier. Hold a chunk of CNR but looking for producers, preferably unhedged, to sit on.

I see EGU are taking a hit too, may look at those once the dust settles too. Have lots on my watchlist OMI, AAZ, SHG etc..

[sporazene2] 24/2/2011 16:22

Aleoap, i have a far larger position on CLF and that is down today also, so hopefully just wider sentiment which I cant immediately understand given the POG

[aleoap] 24/2/2011 16:09

Wow, what an impact i've had on this share lol!

Picked some up earlier at 51.8p. share price then dropped further yet its 52p to buy now.

Is there an overhang here? Someone keen to keep this down.

[luckyjonah] 24/2/2011 12:19

aleoap - I've not changed anything in my NPV10 but it's dropped a bit due to the USD/GBP rate.

sporazene - I'd be interested to hear your thoughts on management. Whilst there are disappointments with production figures this is pretty par for the course in getting a gold production facility running smoothly, and Kam has a history of doing a lot to protect our shareholdings, from underwriting loans to renegotiating the loan note repayment with a haircut. The recent dilution is not good I suppose, but they are pushing hard to get the grades and capacity doubled whilst gold is high and we still have the Pioneer Status Tax Discount.

[aleoap] 23/2/2011 18:12

Many thanks sporazene