Avocet Mining Share Discussion Threads

[kojak78] 24/11/2005 12:20

@Holdontight

Meaningless. Avocet will never reach 10 mio oz reserves at US$500 price of gold. Once they got as much reserves gold prices will be north of $2000.

However, a 10 year mine life means quality (together with sub 300 cash costs). Average price per oz of reserves is between US$150 and 250 (unhedged quality, like Newmont, Iamgold etc.). Per production oz US$1750 to 2250.

Those figures should value Avocet at 2 bn or US$19/share (1100p).
If they succeed in building 10m oz in reserves and the price of gold reaches US$2000 the share prioce is going to be 4x to 6x as much (no leverage to 1.5x leverage of gold stocks vs. gold). 4400p to 6600p.

I doubt Avocet will achieve the ultimate goal of becoming a 1m oz+ producer. Though I have no doubt the gold price will climb above 2000. If everything goes wrong the share price should still climb above 1000p until 2012.

[holdontight] 24/11/2005 10:38

Can anyone calculate share price based on 1 mill ounce prod and 10 year reserves?? Based on POG at $500.

[wolstencroft] 24/11/2005 10:24

powerbooks: I have to agree with some others. If you really feel MINCO is a buy put a post on the Minco thread and say here "I've just posted a detailed analysis on Minco (MIO)" and provide a url). On other threads it becomes a tit-for-tat and some nutter will be posting AVMs final results on MIO if youre not careful

[pecker1] 24/11/2005 09:23

DD and Ash,

After these excellent results the anticipation of what's coming next should start to build - though from the reaction so far the market remains fast asleep.

This is a quote from the header of AVM's website to remind us of their ambitions - IMHO the Chairman means what he says and backs it with substantial share purchases.

"...Avocet aims to establish itself as a market force and become a 1 million ounce producer with a ten year reserve base".

[kojak78] 24/11/2005 09:20

The Idenburg results aren't that good as everybody wants one to believe. Idenburg isn't the only property in Avocet's portfolio. What about Osela's OSD032 with 47m of 16.2g/t from 0m? Inclusive of 4m (from 4m to 8m) with 149g/t.. The Bakan district has far better drill results than the 10 Idenburg holes. Though Idenburg is scouting only, Avocet has proven that there's lots of potential.

Keeping in mind the single best valuation method for gold stocks I'm glad we get all these properties for free. (gold price - cash costs) x reserves is the best method for putting value on gold stocks. No discounting needed as gold keeps its value over time and increases with inflation/costs. Penjom has now 560,000 in official reserves (and will produce many many years longer with underground operations). So Penjom is at least worth (490-200)x.56mio = 162.4. Avocet's market cap is 180 mio.

Idenburg, North Lanut, South Lanut, ZGC, 35% Dynasty gold.. all for free.

[bionicdog] 24/11/2005 08:11

This is how it works as I understand it bis , correct me if I'm wrong. You pick a stock that's reaching a high of say £1 , you confidently predict that it's due for a tumble and if it falls to say 80p you are right. However , if it carries on rising to £2 you mysteriously disappear. Some time later it falls back to £1.80 , bis comes back and what do you know he's right again.
Also , can you please tell the nice boys and girls on here who you really are and why you don't behave like this on m.o.n.e.y.a.m like a true shorter would. The truth of the matter is that you just come on here to disrupt the BBs.
Oh and before I forget , you are still a tit.

[doobydave] 23/11/2005 23:40

Ashley,

I agree the Idenburg results are excellent in every respect. A lot of pure explorers would kill for grades and widths like these - and all near-surface, and I rather like the sound of this 15km structure. And all this after the first round of drilling. It has (early) hallmarks of a monster - I wonder if 10yrs into the future people will be talking of 'The Idenburg deposit' in the same breath as Grasberg.

All good wishful thinking after a glass of nice red - but maybe, just maybe... The next 18 months should certainly be interesting.

[mr ashley james] 23/11/2005 22:00

Dooby,

I thought I would post these Drilling Results again they really are fairly spectacular, I love the first Drill core 40 metres of mineralisation in the first 69 metres Open Pitable 1.93 g/t to 18 g/t,some of the surface enriched grab samples are incredible, but it is the amount of intersections, the average grades that makes it look to me that Indenberg may well be a seriously compelling open pit play.

All IMHO, NAG, DYOR etc

Cheers

Ash:)

Idenburg JV-Drill results

RNS Number:3944U
Avocet Mining PLC
21 November 2005


Avocet Mining PLC
7th Floor 9 Berkeley Street
London W1J 8DW
Tel [phone]
Fax [phone]
E-mail [e-mail]
www.avocet.co.uk


News Release

For Immediate Release
Date 21 November 2005

UPDATE AND DRILL RESULTS FROM THE IDENBURG JOINT VENTURE, INDONESIA

Avocet Mining PLC ("the Company") is pleased to announce an exploration update
including drilling results from an initial 10 hole diamond drilling campaign at
the Idenburg JV in Indonesia. The Company has the right to earn a 51% interest
in an Indonesian company, PT Iriana Mutiara Idenburg ("PT IMI"), by expending
US$2.5 million prior to December 2006. PT IMI holds a 6th generation Contract of
Work ("CoW") with the Government of the Republic of Indonesia. The Company has
already spent US$1.35 million on work that will count towards the earn-in
expenditure.

The CoW includes exploration and mining rights over 108,600 hectares
(approximately 420 square miles) in the Idenburg area of Papua Province
(formally Irian Jaya) on the island of New Guinea. New Guinea hosts some of the
world's largest gold deposits, including multi-million ounce reserves at the
Grasberg and Porgera mines.

The Company's objective for 2006 is to drill a number of targets, in the
Sua-Afley district, with the potential of hosting ore zones similar to that
already identified by the initial 10 hole scout drilling programme at Sua,
discussed below. Infill drilling will then follow to outline a resource base.

Exploration this year has been conducted within an E-W elongate 6 x 3km area
from Afley prospect in the west to the Sua prospect in the east where the
Company had identified several zones of high-grade mineralisation within a 400m
strike length and 500m width. Since June 2005 the focus has been on completing
concurrent programs of first-pass drilling at Sua and systematic ridge and spur
soil sampling over the Kuaplu Ridge dividing the Afley and Sua prospects. The
first-pass 10 hole diamond drilling program totalling 1,373m, with 100m spacing,
was completed at the Sua prospect to target down dip extensions of gold-bearing
quartz-pyrite veins mapped in surface trench and creek exposures. Half drillcore
samples were analysed geochemically by PT. Superintending Company of Indonesia
(Sucofindo) in Timika, an internationally recognised laboratory that services
international mining companies throughout Indonesia. Mineralised intercepts
occurred in all holes except KSD009. Best results from fresh vein material were
7.5m at 16.0 g/t Au from 21m in hole KSD002, 3.0m at 35.0 g/t Au from 107m in
hole KSD008 and 3m at 17.7 g/t Au from 55m in hole KSD010. Stringer vein
mineralisation in near surface oxidised zones was best represented in hole
KSD001 with 13m at 2.86 g/t Au from surface and in hole KSD010 with 16m at 2.20
g/t Au also from surface. Full drill results are listed in Table 1.

More recently a total of 620 ridge and spur soil samples were collected
primarily testing the Kuaplu Ridge area between Afley and Sua prospects. A
distinct soil anomaly was identified on the western flank of the main Kuaplu
Ridge where 5 adjacent soil samples recorded gold values ranging from 1.43 g/t
Au to 3.55 g/t Au over a 125m segment of the ridge. Trenching is underway to
elucidate the significance of this soil anomaly.

A recent field review of the Sikrima zone in the Afley prospect noted high-grade
gold vein material confined to small boudins with dimensions less than 2 x 5m.
Outcropping vein segments returned assays including 3m at 13.0 g/t Au, 2m at
12.1 g/t Au, 1m at 81.7 g/t Au, 0.30m at 166 g/t Au, 0.30m at 102 g/t Au, and
grab samples assaying 210 g/t Au and 71.8 g/t Au. The surface distribution of
the mineralised boudin exposures appear to be within a 100m segment of a
potential 2-3km NE trending structural envelope that extends up to Silia Creek.
Previous regional work in Silia Creek collected rock float assaying 260 g/t Au
and 49.8 g/t Au. Recent prospecting of inferred extensions 1km to the NE of
Sikrima located additional outcropping vein material at three locations on Silia
Ridge to the NW of Silia Creek and outside the ridge and spur soil tested area.
A total of 12 rock chips were collected with best rock chip results from each
separate location of 2m at 11.3 g/t Au and 0.55% Cu, and outcrops of 8.47 g/t Au
and 19.6 g/t Au. A program of tape and compass controlled mapping and sampling
along with collection of ridge and spur samples is currently underway over Silia
Ridge.

The Bermol and Mafi prospects continue to represent the next generation of
targets within the CoW. Both lie on an under-explored, fifteen-kilometre long
structure. Previous channel sampling at Bermol returned 8m at 5.81 g/t Au, 6m at
8.42 g/t Au, 8m at 5.78 g/t Au and 4m at 19.4 g/t Au. Scout drilling at Mafi
intersected up to 12.6m at 8.00 g/t Au.

Avocet is a mining company listed on the AIM market of the London Stock
Exchange. The Company's principal activities are gold mining and exploration in
Malaysia (as 100% owner of the Penjom mine, the country's largest gold
producer), Tajikistan (as 75% owner and operator of the Zeravshan Gold Company,
Tajikistan's principal gold mine), and Indonesia (as 80% owner of the North
Lanut gold mine in North Sulawesi).

Table 1
--------------------------------------------------------------------------------
Hole From To Length Grade
ID (m) (m) (m) (g/t Au)
--------------------------------------------------------------------------------
KSD001 0 13 13 2.86
and 23 26 3 2.87
and 33 38 5 1.69
and 41 45 4 5.96
incl. 44 45 1 18.0
and 65 69 4 1.93
KSD002 21 27.2 6.2 18.5
incl. 25.6 27.2 1.6 52.5
and 28 28.5 0.5 10.5
and 79 80 1 17.0
KSD003 74 75 1 3.08
KSD004 41 42 1 1.76
and 44 46 2 1.51
and 123 124 1 33.8
KSD005 80 89 9 4.00
incl. 88 89 1 25.8
and 95 97 2 2.16
and 112 113 1 1.21
and 118 119 1 1.96
KSD006 20 21 1 1.30
KSD007 32 33 1 1.26
and 56 57 1 1.25
and 66 67 1 1.71
and 71 72 1 5.25
KSD008 70 71 1 3.18
and 107 110 3 35.0
and 111 112 1 3.77
KSD010 0 16 16 2.20
and 28 30 2 1.87
and 44 48 4 4.41
incl. 44 45 1 13.8
and 55 58 3 17.7
incl. 55 57 2 24.2
and 64 67 3 2.19
and 74 75 1 1.39
--------------------------------------------------------------------------------

________________________________________________________________________________

For further information please contact:
Avocet Mining PLC
John Catchpole (Chief Executive)
Jonathan Henry (Finance Director)
020 7907 9000


This information is provided by RNS
The company news service from the London Stock Exchange
END
DRLPKFKPOBDDNDD

[corrientes] 23/11/2005 21:55

It gets a bit boring seeing the same ramp everywhere you go. I do hold though.

[graham_bass] 23/11/2005 21:42

i see nothing wrong in other investors sharing information .he wasn't screaming FILL YER BOOTS like others .have just looked on company's website it says they have "six prospecting licences" for gold and "Over 20 targets remain to be tested by drilling" .i found his/her article actually quite interesting. have no funds to invest though :-(

[mr ashley james] 23/11/2005 21:24

Dooby,

Just hit filter button I think it is City Trader Boy under another log on

Market still does not seem to have got ecstatic about Indenberg results yet perhaps Catchpole/Henry need to do a Promotion Round to the City.

Cheers

Ash:)

[doobydave] 23/11/2005 21:01

I would have moderated this post (1358), since it's a piece of blatant spamming irrelevant to Avocet, but this powerbook character is a premium subscriber so unfortunately I can't. I don't remember him / her posting here before and pb certainly isn't a regular contributor. It's also 9 - yes 9 - screen lengths long at average settings.

All I can do is to ask the culprit to remove it. Minco is a silver play (not even gold) on a different continent. I just can't see an excuse for this discourtesy.
DD

[corrientes] 23/11/2005 19:51

B - and don't forget about your 'success' with THUS.I agree,he's a wonderful contra indicator, but then more likely he speaks with a forked tongue.

[wolstencroft] 23/11/2005 18:19

Bis can you remind me of the predictions you made earlier this year; I think that they were

Gold 385
OXS 40p
AVM sub 70p
AEN going to build a 4000mw power plant with equity for 3 billion

I just looked and gold is nearing 500, OXS and AVM are at or near year highs and the AEN power plant is 500mw and using third party finance.

I guess recent predictions acknowledge that Biswell predictions are doomed to failure

[biswell] 23/11/2005 18:12

Yes like OXS and CER

85p now looks likely

300,000 oz/year production to be put back to 2007 statement to be made soon

Recent moves acknowledge that Tajikistan project is doomed to failure

B

[trader horne] 23/11/2005 14:34

Pezza,
it' been held back from rising much this year by the hedging which is now being reduced ...

[zaky] 23/11/2005 12:51

"....this could be a lot higher come the end of next year. I think the results from Effendi are going to be very interesting...."

Yeah the results will come out - they will be superb, and share price will drop 10p.

[brad1] 23/11/2005 12:30

Patience required - this could be a lot higher come the end of next year. I think the results from Effendi are going to be very interesting and look forward to these in anticipation.

[pezza2] 23/11/2005 11:59

Holdontight, yeah but from a pound at the start of this year to, oh yeah a pound now

[holdontight] 23/11/2005 11:56

From 10p tp over £1 in last 3 years.....hardly lazy!!

[pezza2] 23/11/2005 11:49

sold and moving somewhere else, good luck

[zaky] 23/11/2005 11:46

It is a very lazy stock....been in for 3 years and been hearing the same old cr@p about how undervalued it is....nothing ever seems to come of it

[pezza2] 23/11/2005 11:12

I must say that I'm very disapointed in how the share price has performed recently, I take recent events as good but the share price has done jack.

Directors increase and share price dips a little, I'm going to have to consider selling my position.