Mining Minerals & Metals Share Discussion Threads

[haydock] 01/2/2008 21:04

And now from Cey the daddy of them all this week: on gold.


hope this is the start of juniors waking up.
this is a good watch, about gold.

[1waving] 01/2/2008 18:45

I was impressed on the day of the latest drill results but having thought about the implications of those results I am strongly impressed.

'Significant mineralisation' at a new target, Soloba, three RC holes encountered mineralisation at another new target, Kama, and a previous release stated there were 3 new targets to be drilled South of Komana West, so another one to go. The detailed airborne survey may find more targets.

At Komana West infill drilling got good results, good extensions at depth, additional orezone to the North East to add to the already known Northern extension, additional orezone to the South West to add to the already known several hundred metres extension to the South.

22 RC/Diamond drillhole resulte soon.
RC drilling at Komana East to firm up a resource.
RAB drilling 3 targets on the Solona license.
Detailed airborne survey in progress over all 5 license areas.

Plenty of news to come I would think just from the above, now add in the three Gold Fields JV licenses.

[1waving] 01/2/2008 15:44

Have read many articles of the same nature over the last few weeks haydock which underlines only one of the reasons I am in Glencar. Back shortly

[haydock] 01/2/2008 15:36

I suspect it's rampers week in the States.
They are all drinking from the same bottle & definately all singing loud & clear the same tune.
It's almost as if they have all been bought loud hailers for Christmas.

Still interesting times.


This was one of the most interesting posts yesterday over at Paradise Posters, Goldtent.



Chuck Cohen from Lemet on Juniors
-> Posted by Fullgoldcrown @ 15:06 pm on January 31, 2008
The Juniors– "Ready to Hit the Radar Screen"

One of the great mysteries of this bull market in gold since late 2001 has been the relative poor behavior of the junior and exploration company shares. All through this huge move in the metal, except for a couple of lunges upward, these shares have remained seemingly unconnected to the gold's price. If you looked at the charts for the past two years and were unaware of this fact, you would guess that the price of gold is hovering somewhere around $500 instead of approaching $1000. In fact, it seems that the higher gold goes, the worse the action has been in these shares. Recently, there have been days when gold is up $10 or so and the juniors actually open down. Most close on down ticks or don't even trade.

To myself and most of you who are disproportionately invested in this sector, it is not just frustrating but incredibly annoying. I know I sometimes say to myself (at least I am a good listener;) Doesn't everyone know that these companies are fantastically undervalued and represent the buy of a lifetime? But my opinion, and probably yours, is obviously a minority in the unfolding drama of a unraveling financial system.

Why is this so? This pattern has suspended all logic of how markets behave. Let me give you several reasons why I believe it has continued for so long and why it is about to change.

First, I believe it represents the overall sense that gold can't go much higher. After all, who will go to a coin dealer and drop $925 for an ounce of a metal that was just $500 and back in 2001 sold for about $250? So many who have watched gold climb are now convinced that since the smaller shares are so disappointing, there is little chance of them coming to life. In addition, you have received nothing but discouragement from the media since the bottom. After all, you can remember how often they also warned you about the impending collapse in the tech area in 2000 and more recently the housing disaster. Now that gold is over $900, almost all of the "pundits" remind you that it much too late to get on the train. (Just a little vented sarcasm).

Second, I view this behavior as a reverse of the speculation at the top. Gold is still at the bottom of what will prove to be an incredible and historic move as the system continues to break apart. This extreme point might be difficult to grasp, but if you can remember back to 2000, how improbable was it that the Nasdaq would soon fall 90%? Outside of the gold lunatic fringe, it was perhaps 1 in a million.

Third, this section needs and will receive new buyers, and I don't mean those of modest means who jump in on a excitable whim to buy $5000 of a penny stock. Many of these early buyers have been sufficiently discouraged to be totally flushed out of the market, and are unlikely to reenter. Instead, the days are coming when the buyers of these companies will be large hedge funds, wealthy individuals from Russia, China and the Middle East who understand the historic role of gold, and realize that the US system is without remedy. After all, it hasn't been the debt attached Americans who have pushed up the metal, but instead cultures that value gold as a store of value and represent true money. It follows that they if they have been wise enough to buy the metal, they will be soon drawn to the producers. And these people do not think in terms of thousands of dollars. They are not small thinkers and they are patient. If they are now billionaires what is $10 or even $50 million?

Fourth, most of the juniors have had to raise capital during unpopular times, so management had to dilute the shares over and over. Many of these shares, since a lot of them were practically free, have repeatedly hit the market, as have many of the options that management exercised. I can't blame management because a lot of their salaries are minimal. This should be a tiny factor in the days just ahead.

Fourth, sooner or later a gold price in the thousands of dollars and exploding against all currencies will move all boats. It is totally illogical to think that this will not spark a gold rush of historic means. Do you recall those photos of the gold camps in California and Alaska when thousands of prospectors went crazy with "gold fever" as they heard of the fortunes that were being made. Can't you see it coming in the junior and exploration arena?

Finally, let's speculate and dream what the landscape will be like in a year or two. Perhaps, gold will be around $2000, or as I believe, even higher. Some of these companies that now hold a market cap of $8 to $40 million, and perhaps have real reserves of a couple of million ounces, are now making $50 to $100 million in profits just in one year. And then throw in the irrational exuberance that eventually comes in an incredibly speculative environment. With the world financial structure in tatters or even chaos, what will those shares be selling for? That is why I have written that 10 times or even 100 times move will not be a fantasy.

Remember, if you have 10 small exploration companies with your investments spread evenly, you don't have to have supernatural fortune. A batting average, just as in baseball, of .333 will be enough even though I believe it will be much higher. I'll give you a personal example. At one time I had an equal amount of Pelangio (PLG.TO) along with my other exploration companies. As their results came in, I bought some more. Most of the other similar companies have languished, but now Pelangio has begun to climb and has compensated for the others.

Finally, most bull markets begin without notice and with a great amount of skepticism, since they have followed a long period of terrible performance. It is only at a point when it becomes obvious and when alternate investments are doing poorly that the public finally takes notice. The difference this time is that by the time America realizes what has been going on, most persons won't be able to be a part of it. They will have been fleeced by the American mantra of going into debt and leave the savings up to the rest of the world.

As we have constantly written, the world has entered into not just uncertain times but totally unchartered ones. During the unthinkable turmoil, those who are wise will be drawn to an anchor. In the material world, it is gold; in the eternal and spiritual world, it is only God.

Please contact me if you are looking for professional help. Chuck [e-mail]

[bartender18] 01/2/2008 10:06

Couple of trades at the full bid,.tick up today perhaps

[haydock] 30/1/2008 16:57

This is another of an absolute frenzy of analysts who have all spotted the gap between the majors & the juniors, this week.
Time will tell.

Junior Mining Stocks are 1/8th that of the majors;

[davenic] 30/1/2008 16:52

Just wish there were more activity you would of thought this RNS would of attracted some interest looks like a 50k sell to :-(

[bongo bwana] 30/1/2008 16:26

Ur earning Ur corn 1waving.

[1waving] 30/1/2008 16:21

Today's update and results key points.

In and around the Resource Estimate Ore body - (REO)
'Extensively mineralised zone running from 119metres to 246 metres depth.'
Ore grade mineralisation at depth perhaps more variable.
38 metres at 38.9gm/t from 94 to 132 metres depth in Bonanza zone
Extensions at depth to the REO

In the South of the REO
'Many of these holes intersected mineralisation at a higher grade and thickness than had been seen in some of the earlier holes in the same area'
Bodes well for the 200,000oz increase within the REO

Western extension.
KWRC119 and 120 drilled to test western parallel structure intersects a very promising mineralised structure.
Additional North South trending structure found to the West ?
Needs more drilling but certainly adds to the overall mineralised zones.

North of the REO
RAB drilling finds 'significant mineralisation' in a number of holes to the East of the originally projected Northern extension zone. 4 RC holes drilled - results awaited.
Additional orebody.

South of the REO
RAB drilling here to guide future RC/Diamond drilling but not a lot else on this. Previous RC drilling indicates the mineralisation extends about 5-600 metres to the South and is generally wider but with variable grades and potential very high grade shoots. Best grade 733gm/ton over 1 metre.

Awaiting results of 22 holes - these will be in and around the REO.

Soloba - 3.5kms to the South
RAB drilling picks up a 'zone of significant mineralisation' to be followed up by RC drilling in a few weeks.
This puts a pearl onto the string - nice going.

Kama - 9kms to the South
5 RC holes drilled with mineralisation found in 3. Needs more drilling-Airborne survey may help to define this target more clearly.
Another pearl on the string ?

Komana East - RC drilling going on here, non JORC estimate by previous license holder ( Randgold ) of 280,000oz. From memory I believe the cores and samples from Randgold's drilling are still held, plus drill results of course, which will help with producing a JORC compliant estimate here.

Solona license area - RAB rig now drilling 3 targets there.

Airborne survey currently underway will give great assistance in defining targets on all 5 license areas .

I am very impressed with the results and progress now I've had a little time to let them sink in. Long may the aggressive drilling continue.

May have missed a few points but hope this helps.

[robbi123] 30/1/2008 15:34

TW still maintaining his buy stance with 18p target today....and rightly so:)

[gardenarc] 30/1/2008 15:06

RSN was good holding and waiting.

[davenic] 30/1/2008 15:01

only 21k traded thought the news was encouraging

[bongo bwana] 30/1/2008 12:00

Well done Keevo - a very smart move IMHO.

Im adhered to the smaller caps and at the moment it appears Im in quicksand!!!!

It wont always be like that.

The cycle will turn back in my favour, slowly.

[keevo] 30/1/2008 11:38

nice results. davy target 21 cent. long way off that

i've been accumlating the irish banks lately. 100k in aib, 100k in boi.

anybody else hold them?

i've applied the whole buffet strategy in full effect. ROE in each bank is 25%. they are trading at 40-50% below intrinsic value at an extreme 10% discount rate.

[bongo bwana] 30/1/2008 11:27

"String of pearls down the west side" ....well done 1waving.

[gerri-c] 30/1/2008 11:03

It may just be too early for an informed reaction, and the wider market falls haven't helped. On the bright side, there's also been no significant negative reaction.

[1waving] 30/1/2008 11:00

Long update with much good news, will take a while to absorb them.

Today markets in general will be focussed on FOMC and US GDP announcements.

The string of pearls down the West side of Komana has been given credibility at Kama and Soloba.

[maniac3] 30/1/2008 10:58

It seems barely any investors know about GEX!

[spaceparallax] 30/1/2008 10:10

I agree, the results seem promising and should help firm up and increase the resource - another step towards feasibility. I'm surprised that we haven't had more Market reaction.

[tonudiki] 30/1/2008 09:35

These drill results look pretty good to me.....plenty of good grades, many grammeXmetres readings decent to excellent, zones and depth extension potential......

Details provided of only about 30 boreholes out of the 159 they have drilled and so far had assay results for though.

HRA survey now underway, but no news on a JV.

Have I missed something, because the market seems distinctly underwhelmed so far this morning?

[haydock] 30/1/2008 09:25

Don't bother booking the flight mate, the locals will have that lot for certain!!!

[dr fillip strange] 30/1/2008 09:23

Hole KARC130 intersected 105 grams/tonne from 0 metres to 1 metre depth.

I'm going on my Hols to Mali to collect some of my gold..

[amt] 30/1/2008 07:56

Results out

[bongo bwana] 29/1/2008 20:58

Robbie amigo,

The €20K I mentioned is merely a short term advantage I have - my position is pretty much that of a scrum half when it comes to the funds. Its my money but not for long.

I will email my thoughts - please drop me a line in case I have not retained Ur addi.

Thanks