Mining Minerals & Metals Share Discussion Threads

[1waving] 28/4/2008 22:44

The quality deposits that Glencar have will be under scrutiny from many majors needing to top up reserves. The Chinese companies are acquisitive backed by lots of cash. China's foreign reserves of $1.5 Trillion have only a tiny percentage in gold, they are looking to increase that percentage. Am not fussed who tries to buy Glencar or into Glencar but not for a while. The early stage takeovers will be on the cheap.

Would like to see Glencar prove up reserves and become a producer itself at Komana or Solona.

[valentine] 28/4/2008 20:44

Indians and Chinese and most of the Middle East value gold above all things.
In Turkey it is a sort of insurance and saving scheme all in one to the wife. The traditional gift from family's at a wedding is gold in one form or another. A girl can have 40-50 bangles on each arm after a wedding. We are down to the gold rings but same principle applies except now the toaster substitutes for the bangle.
The idea in the east is in times of trouble and turblence the gold retains its value against unstable currencies. Material goods are transient but gold always holds its value.
So it is unlikely to fall by the wayside these days when the dollar is as unwelcome as it appears to be.
Chinese are now getting rich enough to want gold every time in all forms. This is more than just the jewellery end of things. It is endemic top to bottom in society. We have forgotten what gold means in our secure western surrounding. We may re-discover it if we get to live in 'exciting times'.

Will the Chinese buy directly into GEX do you think?

[1waving] 28/4/2008 20:28

Extract from Smart Commodities UK by Garry White

But the fundamental reasons why gold is a
'power trend' are quite clear:

According to the World Gold Council in 2006 demand hit a staggering record of $65 BILLION...

At the same time, production of the metal FELL 13%.

The value of gold jewellery sales rose 14%, even though the volume of gold in shops DROPPED 16%. That means people are paying MORE for it. And as you're about to see, demand looks about to EXPLODE even further...

For the first time since 1949 Chinese citizens can legally buy gold. When the same ban was lifted in America in 1973 the gold price doubled because of the extra anticipated demand. Back then the US population was 212 million. Today's China tops 1.5 billion.

Half the world's gold is consumed by just ONE country. India can't get enough of the stuff. As India's economy continues to grow at an unprecedented rate, demand is set to increase further. In fact, the World Gold Council expects it to increase 60% by 2015.

According to MoneyWeek analyst Tim Price, opinion in the City is unanimous:
"With these economic fundamentals, even a tiny increase in investor interest in the precious yellow metal could produce a MASSIVE run-up in the price."

The fact remains... demand is higher than ever. It's likely to continue. And in times of a crisis and global economic uncertainty there's nowhere safer for your money than gold. Fact. It has real intrinsic value.

Look at it this way: How likely is it that paper currencies - unbacked by gold - will become worthless?
Answer: pretty high.

According to The Business... "currencies come and go, but gold has been a store of value for more than 5,000 years. Gold is rare, but, paper money is not. Presented with an opportunity to churn out extra cash at little expense, it takes a special kind of government to resist. Few seem able to do so."

And how likely is it that a gold currency will lose its value?
It's never happened yet. I don't believe it ever will.

The Business continues... "there is a finite supply of gold. This keeps it honest..."

The current gold bull market started in 2001 - but the run is clearly not over yet. Not by a long shot.

Now I don't know if it will reach $5,000, $3,000 or even $2,000 an ounce. I don't have an exact answer. No one does. But I have a better one than most...

I do know the Chinese are buying. The Indians are buying. I know the price cycle forces that drove up gold 37% last year are still in place: A weak dollar, heavy demand for jewellery in fast-growing Asian economies, tight supplies and its perceived status as a safe asset during times of economic and geo-political stress (the Government's way of describing the war in Iraq!).

[bongo bwana] 28/4/2008 14:01

Keevo,

Many thanks.

You have post.

[bongo bwana] 28/4/2008 13:10

Keevo

Chinese interest?????

[keevo] 28/4/2008 12:50

choo choo...

all aboard!

[valentine] 28/4/2008 12:12

Any chance of Goldfields of SA running slide rule over us again? Wasn't that a suggestion a few months back, or was it years? Memory failure after being around so long.

[1waving] 28/4/2008 12:03

Watch out for a quarterly update from Gold Fields in the next few days on their website for the Sankarani farm in license areas. There may be RC drill results for Kabaya South and extensive RAB drilling on all 3 license areas.
About time we had an update from gex on this anyway.

[robbi123] 28/4/2008 12:01

Interesting val, will do a bit of research if I get chance. Could be an interesting month for a couple of our stocks:)

[valentine] 28/4/2008 11:57

Definitely robbi. Attended presentation. A few people close are very excited. News anytime now from beginning of May. Micro drills packed with +ve indicators. Macro drill should prove up the 'finds'. News in Q2. Several key personnel recently joined from De beers. De B's are 'struggling' presently and could get avericious given right result.
The timescale is not dissimilar scenario here!

[robbi123] 28/4/2008 11:45

hi val, held FDI a few years back, did rather well off them. Nice chart,, looking to break out of a 3 year range.

[robbi123] 28/4/2008 11:16

All looking very rosy at the mo, I still dont think any true buying pressure has started yet.....having said that, volume over the past couple of weeks has been much much better.

[gerri-c] 28/4/2008 11:14

That last 50K at premium.

[valentine] 28/4/2008 10:26

tx 1w
Explains the buying in recent days.

[1waving] 28/4/2008 10:19

Next news probably in 2-3 weeks on Komana East northern extension where the grades may be very good and decent width/depth.

[valentine] 28/4/2008 10:15

When can we expect the news?
Is there a likelihood of an admirer in the wings?
The prospects of even higher grades at deeper depths intrigue me. Are they drilling the deeper levels yet?
Any precis re:overview appreciated.
Still holding.

[haydock] 28/4/2008 09:50

Isn't it something to do with the Irish buying ? We had a little patch of this a week or two ago.
No chart man, but I had a little look the other day & everything seemed to be in the right place for some confidence in the share price.
Simply looked positive , not negative.
With the newsflow to come it should be.

[1waving] 28/4/2008 09:24

Looks like the mms are short of stock, just mugged someone, offer at 8.9p

08:37:06 28-Apr-2008 9.63 15,000 1,445.15

[serpicouk] 27/4/2008 17:44

1waving - I'm always conservative with my resource estimates =) Although I do explore larger numbers when running numbers.

I just feel that GEX are still drilling to gain understanding of the structure. As you say, I wonder how much infill drilling will be performed and therefore wonder how much potential will actually be converted to resource this season.

Personally, whilst I'm excited at proving additional strike length, new targets etc I'm conscious that GEX will probably require funding for next season. I wonder if this might be 'less expensive' with a larger defined resource?

I guess it's a balancing act between spending time drilling extension/targets and infill drilling. Hopefully GEX will get this right.

I'm sure we'll all have some fun later this year with a guess the resource competition =)

[1waving] 27/4/2008 13:05

Using TA/Elliot wave we are now in wave 3 up, the minimum target on this wave 3 is 20.5p. That 20.5p is the absolute minimum

[1waving] 26/4/2008 14:39

serp, on your comfortable with 1.5m oz I think you will get a pleasant surprise when the next resource estimate comes in. I am comfortable with there being 3m oz at Komana based on areas drilled already but there needs to be a lot more infill drilling to put it into JORC category which will not include strikes such as Soloba and Kama this season and I suspect will still not determine the ultimate strike length or depth at KE or KW.

With both Komana West and East having a JORC estimate after the end of this drill season I think 1.5m oz would be a cautious view and 2m oz+ would be good. A lot may depend on the drilling at KE being intense enough to get a strong initial estimate although it has to be said that with average grades of 3.5g/t so far that is pretty good. May be difficult with only one rig and about 6-7 weeks of the drill season left to get major infill drilling done when strike length is still being added at 100m spaced fencelines, unless that rig is working round the clock.

Am also a long term holder and looking forward to Glencar production and getting full value for that store of value.