Mining Minerals & Metals Share Discussion Threads

[dr fillip strange] 15/5/2008 09:48

10 million shares traded on IEX on 13th May, just saw this morning, can anyone else verify?

[1waving] 14/5/2008 16:35

Jim Sinclair's Commentary

You might consider telling the management of your junior investment to be wary of the first offer (a certain lowball) or the short that wants to cover who presents themselves as investors interested in a private placement.

Miners looking for takeovers
The Canadian Press
May 13, 2008 at 11:40 AM EDT

TORONTO - Nearly half of the large mining companies interviewed for a recent study by Ernst and Young said they need to make acquisitions to meet their aggressive growth targets and 90 per cent said they expected to make an acquisition in the next two years.

The study, published Tuesday, predicts that 2008 will be a critical year in defining which of the mining companies are the hunters and which are the hunted.

"The global mining sector is flush with cash right now, and there's a strong appetite for more transactions," says Tom Whelan, Ernst and Young's Canadian mining leader.

"Companies in Canada and the U.S. are attractive targets because most companies in North America have a single metal focus. This makes them neat strategic acquisitions."

The study found 40 per cent of respondents - which were selected from among the top 40 mining companies in the world - said they were only able to meet their aggressive growth targets through acquisition.

[reghollis] 14/5/2008 13:32

I was joking. I'm waiting for funds from elsewhere and will buy on a dip. I think 8p will be possible at some point though.

[1waving] 14/5/2008 13:23

reghollis, you have missed the boat totally at 6.5p. 8-8.5p is the best to look for, if it goes down that far.

[valentine] 14/5/2008 13:11

In your dreams! 155 gpt. Think about it. It was no accidental lucky hit! They will know where the rest of it lies shortly

[reghollis] 14/5/2008 13:08

Yep 6.5p entry point will do me.

[spaceparallax] 14/5/2008 12:53

A double bottom would be nice.

[1waving] 12/5/2008 22:21

The last RNS said that the drilling was complete on Solona and so the RAB rig is now doing what ??

If it is doing infill drilling at Komana East how acceptable is RAB drilling for a JORC estimate when complementing RC and Diamond drilling ??

Can it confirm any continuity, grade, width, depth etc within a JORC report ??

Answers much appreciated.

.

[bongo bwana] 12/5/2008 07:48

Many thanks Keevo.

Just back from a short break abroad.

Any ideas on the AGM date and location?

Planned Annual leave sees me out of the country from eary July.

[1waving] 11/5/2008 13:05

Re Gold Fields, they have depleting reserves, reduced output from South Africa due to power shortage and closure through safety issues, yet we have seen very little aggressive exploration on the Sankarani licenses -- Looking forward to a full update on these areas from Glencar shortly.

There are a good few AIM juniors starting to turn up with a few starting to run, including Glencar. Will be interesting to see the sector movement over the next few weeks, the early signs bode well.

[serpicouk] 11/5/2008 12:44

Having a host of junior miners in my high risk portfolio I have no doubt that the sector seems significantly undervalued at present - for whatever reason (reduction in the flow of money/re-assessment of risk/shorting/etc) the market seems to be reluctant to reward projects that are either near term producers or those that have even made it into production.

So - and apologies for being slightly off topic - what are peoples favorite 'most undervalued' near term/in production junior miners?

Regarding Randgold - interesting that Morila is still expected to produce another 1.4M oz (having already generated over a billion dollars in profit - nice!). A seriously impressive mine and one that Randgold may explore further.

Also, the CEO made an interesting point that investors seem happt to buy 1oz of gold from an EFT at $875, but seem to shun companies like Randgold where that same investment will net you 2oz with the prospect of that increasing as they increase their reserves and the additional benefit of a dividend. He did acknowledge operation/political risk as a slight factor for favoring EFTs.
He also went on to say that the gold industry is not in good shape despite the high gold price.


Regarding Goldfield - as mentioned the other day, their safety record has been shocking. Apparently they may be audited externally and are also in the process of an internal safety review that may see them pull out of some areas that are considered to dangerous to mine. Those areas might account for up to 1/5th of their operations.

[1waving] 10/5/2008 19:02

I can't see any strong shorting at present that is peculiar to Glencar but the sector overall has been depressed. Worthwhile keeping an eye on future movement particularly after newsflow. Friday wasn't the best day to release good results from Solona, may get further reaction Monday. Wonder if Hugh Mc had good reason for releasing that news on a Friday ? Is there more news to come in the next few days ?

Technically we are in a congestion zone between 9-12p. In Elliot Wave terms it looks like we are in wave iv of 1 of a greater wave ONE up.

I'm sure there are suitors in the wings but from what Hugh has said in interviews/articles, Glencar will be proving up resources into next year before a deal is considered. I'm happy with that.

I do believe there is shorting going on in the sector as a whole, Jim Sinclair's statement ' This is fact, believe me I know ' is the statement of a man who does know and is in the know.

'The stockholders of the junior exploration and production companies do not, nor do they believe this is the real reason behind the depression in prices.'
May be difficult for investors to understand and acknowledge without hard evidence but Jim also has a very strong point there.

[serpicouk] 10/5/2008 14:37

1W - my usual conservative but bullish views:

The reason for the recent rise:

Technicals: Increase in volume with a lot more buys than sells.
Fundamentals: Komana results look significant to both GEX holders and those on the sidelines.

The reason for the subsequent slight fall back:

Technicals: Decreasing volume with more sells than buys.
Fundamentals: Uganda deal is hard to value to those not in GEX. Solono results still very early and difficult to price in as future reserves at this stage - I certainly won't be ascribing 1+Moz at this stage.

I doubt there is an offer in the wings at this stage and I doubt any nefarious shorting is going on. Still plenty of news to come so if we still see it stand still then I might have to revise my thoughts...

[pecker1] 10/5/2008 10:36

Not sure about the logistics of using Komana to supply feedstock to Morila - more likely to come from Bageo JV with African Gold, which is much closer, if they find what they hope. If not, there will be a large second-hand plant at Morila that could be dismantled in 2012 and shipped elsewhere if need be.

Agree with you about not being in a rush. But if a good deal could be done it would accelerate the development process towards a BFS. The results from all of this season's drilling plus updated resource figures should strengthen Hugh's hand in any negotiations.

Exciting times - the one thing I find hard to believe is the share price after the excellent results this season, including the bonanza 4 metres at 155 gpt. at Solana.

[pecker1] 09/5/2008 19:44

At Tuesday's RRS Qrt 1 presentation, Bristow confirmed that he was looking for JVs with third parties on 2+m oz prospects. I don't think the fact that they sold the Komana licence to GEX will put him off being interested - he's too much of a big-hitter to worry about things like this. Watch this space!

[valentine] 09/5/2008 19:34

I was being ironic 1w. I realise you don't do these things by chance. Once again Dr McCullogh's famous caution comes into play. Any other company would be shouting it from the rooftops.

[1waving] 09/5/2008 18:53

valentine, don't think the 155g/t over 4m was luck. That hole was drilled 400m north of RC hole SARC009 along a low chargeability anomaly and low resistivity axis. Look at the B-M RC drill map from last year. With this years RAB drilling it shows great potential.

Reckon Glencar's geologists are doing an excellent job.

[valentine] 09/5/2008 18:21

155 gpt over 4m @ 54-56m .. That is truly magnificent if it is the confluence of veins and not an isolated incidence. A very lucky 'hit' to get it on one drill though! It suggests there is more to come. There has to be more to my mind. Perhaps this is what they meant by 'bonanza' find last year?
MML's find in Phillipines of 33-35 gpt was called 'exceptional' in their RNS earlier this week.

[1waving] 09/5/2008 17:42

From Gold Fields quarterly report released today:--

At the Sankarani joint venture project in south-western Mali, operated
by partner Glencar Mining plc (AIM: "GEX"), litho-geochemical
sampling by means of air core drilling has been completed on the
Bokoro and Sanioumale A & B targets. A high resolution airborne
magnetics and radiometric survey was flown over the three exploration
licenses. With the completion of this programme, Gold Fields has
earned a 51 per cent interest in the joint venture.
_________________________

Not exactly forthcoming but we should get an update soon with the annual report due in 2-3 weeks.

Looking at the Sankarani geology map the Komana and Solona licences have a NE-SW granite formation running along the boundary between the two. That granite formation runs through the middle of the Sanioumale area with metasediments to the East in the same formation and along strike from Komana, to the West the the same formation and along strike from Solona.

Should be particularly good potential at Sanioumale.

.

[spital23] 09/5/2008 12:14

More Mali magic at Glencar
Companies: GEX
09/05/2008
Glencar Mining has followed encouraging drilling results at Mali's Kamana East gold prospect with 'significant' mineralisation at another, Solona.

The Dublin-based company says drilling intersected four metres at a bonanza grade of 155 grammes per tonne of ore at Badogo Malikila within the Solona licence. The company also found 16 metres at a more modest 2.54 grammes a tonne and four metres at 9.28 grammes at Niechilela, and eight metres at 2.27 grammes at Faliko, also within the Solona licence.

Further drilling will follow to find out more. Glencar shares plunged from 10p to 1.25p between 2000 and 2002 on disappointment at the company's Wassa gold project in Ghana. They've since moved from the Full List to AIM, in 2005, and have recovered to 9p. They could bounce further if the Mali news continues to cheer.

[dogdig] 09/5/2008 11:54

And so the share price goes down - unbelievable!!

[1waving] 09/5/2008 10:36

Some important statements from this mornings results at Solona.

'Significant, northeast-southwest trending shear structures are evident from the aeromagnetic surveys.'

' At Faliko, gold mineralization was found on each of three fencelines drilled and the mineralized zone extends over a strike length of 1,000 metres in an ENE-WSW trending direction.'

' At Niechilela, significant mineralization extends over a strike length of 1,200 metres with one hole, SARB096, intersecting 4 metres at 9.28 grams/tonne.'

'At Badigo Malikila, hole SARAB114 intersected 4 metres at 154.7 grams/tonne between 52 and 56 metres downhole depth.-- Assays from 60 holes are awaited from this target.'

The aeromagnetic survey appears to be complete and will be so important in identifying strikes and extent. Would like to see the survey results posted on the website.

I was cautious about the Solona area being in the main Sankarani shear zone but these results say that caution was unjustified.

Time to start counting the ounces, from the drilling done am confident of in excess of 1 million+ ounces gold.

Yet more excellent results -- More to come soon from Komana East.