Ariana Resources Share Discussion Threads

[claretandbluedave] 06/7/2020 11:09

Well after all the hype about the MoU it looks like its not done anything for the SP, as we now sit lower than before last weeks announcement. For some reason this share doesn't seem to get on people's radar unlike other small miners. Maybe its the complex company set up/partner arrangement and maybe its because of the location. Either way its not exactly creating huge interest. I understand the Covid situation hasn't helped matters, but some of us aren't getting any younger and I've been around here for a few years now. Anyway the sun has just come out, first time in over a week so maybe time for a coffee in the garden and keep hoping.

[kirbs4] 06/7/2020 10:46

It was deliberately worded "Longer" rather than "Long".Emphasis on the fact that todays market presents an awful lot of short term opportunity. "Longer" means longer than many other opportunities.

[bigglesbingham] 06/7/2020 10:15

Point is it will come in a very short timescale imho. I'm trying to say that this level will be in our mirrors come six months. The fact that I'm saying I'm adding is just effectively saying I'm putting my money where my mouth is and not ramping a stock and hoping for best. Cheers

[renniks2016] 06/7/2020 10:15

Depends on what you class as long term, if waiting till December for all the finer details and dividends, is long term then happy days, in my eyes that is not at all.

[coachsailor] 06/7/2020 10:14

And back to AAU.

I can not help but wonder where the shares currently available are coming from. I have just topped up another 200,000 at 4.00p.
Since my first AAU purchases back in 2009 at 3,25 after meeting Kerim, have gradually topped up bringing my average buying price down below 2p. So since my last buy last Nov was reluctant to buy more as the price rose. However, I agree with Biggles that with what we now know even at 4.00p it is well worth pouring a bit more in the pot.

The mystery to me is why would anyone sell at this price as even if looking for a quick short term return, hard pushed to find it elsewhere.

[jaf1948] 06/7/2020 10:13

It may well suit you, biggles, but not all of us have unlimited funds that we can put in here - some of us need a return from the many years already invested.

[bigglesbingham] 06/7/2020 10:03

Suits me deal 99% therefore happy to add at this level

[kirbs4] 06/7/2020 09:58

Do feel timing is playing a part in the current activity. Only a couple of weeks ago we were waiting patiently for the results and news of the MOU. Results delayed and MOU agreed in principle but not final turns this into more of a longer term option in a short term market imo.

[1candc] 06/7/2020 09:10

Yawn, take your ramp somewhere else

[jc2706] 06/7/2020 07:46

ECR is the ramp du jour.

[johncasey] 06/7/2020 06:57

Latest Articles
MININGMAVEN on: 02 July 2020
ECR Minerals – right at the heart of Australia’s second gold rush (ECR)
The goldfields in Victoria, South Australia are grabbing the world’s attention for the second time in history.

Upon the first discovery of the precious metal in the 1850s, we saw this desert area become a major international mining centre.

As you can probably imagine, technology has moved on from the hand-dug pits, wooden ladders and dynamite that marked these times.

Today, 3D-mapping, drone-based mineralogical studies, and vast national resources devoted to seismic, geochemical and geochronological surveys are unearthing a deeper, second layer to Victoria’s gold rush.

The Geological Survey of Victoria now estimates that 75 million ounces of high-grade gold is currently sitting under the earth in Australia’s most southern state.



Tax no dampener on gold rush

The scale of finds being made in Victoria are so enormous that the local government is even keen to cash in.

In January 2020, it announced that mines recovering more than 2,500 ounces of gold a year would be subject to a 2.75% tax.

But this has done little to dampen exploration interest.

Not least because the state government has been handing out multi-million-dollar grants to mining companies to get their projects underway.

What the tax development does mean, however, is that the cost of mining an ounce of gold has risen to the point where only the most well-capitalised projects with licenses to boot will succeed.

Enter ECR Minerals (LSE:ECR).

ECR has more than a few strings to its bow in Australia.

The firm’s main area of interest is the Victoria boom.

In Bailieston and Creswick, ECR boasts two enormously exciting and prospective Victoria gold projects.

Bailieston is found in the major orogenic Lachlan Fold Belt, while Creswick sits on the Dimocks Main Shale that extends to Ballarat then miles to the south.



Bailieston’s location within Victoria

Recreating Kirkland Lake’s success

Kirkland Lake Gold (TSX.KL) (NYSE:KL) has become the poster child for success in the current wave of Victoria gold interest.

In the last five years, the firm’s share price has exploded 2,263% thanks to its ownership of the Fosterville Gold Mine.

This has made the company and its investors rich by any standard.

Fosterville is the largest gold producer in Victoria, increasing annual gold production by 315% between 2014 and 2018 while also seeing a 540% jump in gold head grade from 4.6g/t to 24.8g/t, according to the national geological survey.

Operating cash costs of $130 to $150 per oz are laughably small for a world-class deposit, and the spot price of gold hitting new eight-year highs of $1,759 per oz has done nothing to dampen enthusiasm for the precious metal.

ECR’s key tenement of Bailleston sits just 18 miles east of Fosterville and on the same rich seam of gold that has made millionaires of Kirkland’s investors.

Trading volume has started to pick up in ECR since it won licences at the start of 2020.

But with wider equity markets consumed by Covid-19, attention has been diverted away from a potential goldmine.

With the ECR share price trading in a range at around 0.7p, there is huge upside potential to be had.



The Blue Moon prospect at Bailieston, Victoria

Firms flocking to Victoria

ABC Australia reported in May 2020 that more than 80 mineral exploration applications are now underway in Victoria.

And it is the UK and Canada-listed companies that have got there first.

Top names include Power Metal Resources (LSE:POW), Red Rock Resources (LSE:RRR) and Fosterville South (TSX.V:FSX).

The latter of these has this week spun off two of its gold projects at Avoca and Timor in Victoria — bought from none other than ECR — to create a new company, Leviathan Gold, with FSX shareholders receiving shares in Leviathan on a one-to-one basis.

Shares in FSX rose by nearly 30% to an all-time high of CAD$4.35 on the news.

ECR’s sale of Avoca and Timor to Fosterville South means that – as well as an upfront $500,000 to fund its Bailieston and Creswick exploration – ECR will receive $1 for every ounce of gold discovered, up to a maximum of $2,000,000.

Multinational miners are now converging on Victoria, but they have been beaten to the punch to by their nimbler rivals.

As a relatively small AIM-listed exploration, the results here could be a kingmaker for ECR.

[rjwoodrjwood] 05/7/2020 17:27

What would be really nice, is when the special divi comes, the record date is July 3rd.....after confirmation of intent for the deal.

[thanksamillion] 05/7/2020 11:36

actonovator,

In the event of a company open market buyback how many share do you expect would be for sale at 4p?

Really cannot see it anywhere near £5m/4p=125m if indeed any at all.

[bigglesbingham] 05/7/2020 10:01

Correct and divis is a way of rewarding long term holders without them having to cash in

[thanksamillion] 04/7/2020 22:27

If I recall correctly the share buy back you speak of was the Board wanting to purchase a small number of shares held by Ariana workers in order to help them out. Whatever the reason I dont think it was that many relatively speaking.

[actonovator] 04/7/2020 20:05

Soul, you telltale :)

I was merely pointing out that the creation of an accounting profit on the sale of jv assets would allow share buyback, which was the company's avowed intention last year - but which they promptly shelved upon discovering it was not immediately feasible.

I'm neutral about the share buy-back - though I would prefer they spent 5 million on open market buy back of shares than a one-off 5 million dividend payout, which seems pointless. You could argue that its not great to buy shares at 4p issued at 1p - or you could argue buy shares at 4p you believe will soon be 16p and a premier force in Turkish goldmining.

But I'm more interested in Dogu and the Kizilcuker royalty. Surely if it was worthy of an rns announcement, then deciding not to proceed should also have been rns-ed?

[soulsauce] 04/7/2020 18:31

There are probably too many shares in issue but much of that is due to historically poor raisings, probably the only area where Kerim & Co dropped the ball.

But I don't see the point of using good money to buy back shares at 4p that were issued at a penny piece.
I am not sure I like the idea of consolidation either.

[thanksamillion] 04/7/2020 17:28

I took it the buyback related to actonovators mention of too many shares. Personally I thought he meant a consolidation say 1 for 10. Me, I have no view on it.

[soulsauce] 04/7/2020 17:22

actonovator unless I have misread it.

[bigglesbingham] 04/7/2020 17:10

Who mentioned buy back?

[soulsauce] 04/7/2020 16:49

We do not want a share buy back, this is a growth stock and we will have plenty to do with the money.

[bigglesbingham] 04/7/2020 15:16

Under promise over deliver in true AAU way

[actonovator] 04/7/2020 14:56

And final comment from me this weekend - I thought I noticed KS in that last interview put a bit of emphasis on - besides Cyprus - other opportunities within Turkey. This clearly ties in with the announcement last Oct of the acquisition of Dogu from Kefi and its significant exploration database. That was only a month before the JV announcement and he probably already knew there was an inlow of capital about to happen. Exciting times!

edit - staged payments till the end of 2019 - can we assume Dogu happened?

last edit - from Kefi final ye dec 209 accounts released last week:

Post year end the company started taking the steps to voluntary liquidate Dogu