Mining Minerals & Metals Share Discussion Threads

[1waving] 17/7/2008 21:39

Now to someone who really knows about gold:--

Dear Jim,

Louise Yamada was quoted on CNBC as predicting Gold at $5000...within 5 to 10 years. Do you have any comment?
Regards,
CIGA Lew

Dear CIGA Lew,

I would not be so foolish as to argue with any price level on the bullish side.

In 1974 I concluded gold would rise to $900. That number represented the price gold would have to be at times the amount of gold published as held for the US Treasury to balance the value, at par, of US Treasury debt held internationally. This would be balancing the international balance sheet of the USA.

The trick is analyzing what the international debt of the US is, both directly and implied. The number in 1974 was $900. I will not tell you the number today. It is absolutely scary.

I will stay with $1650 as I know for a fact gold will trade there.

Imagine what the juniors will be worth when gold is at $1650. Now think about them at $5000. Do your homework as above and think about that price.

Jim
____________________________

When gold is $1650 and Glencar's JORC is a multiple of what it is now.

Leverage on the price of gold and leverage on increases in resource ounces.

Answers questions recently on potential as a multibagger.
.

[spaceparallax] 17/7/2008 20:51

Don't forget, TW had many months back over estimated the resource attributable for GEX and consequently he was disappointed when the the official figure was reported as C500K. No doubt he is erring on the cautious side and indeed we are for now more likely to see resource upgrades of the order suggested - the proving business is laborious and costly. The indications are good, but we must be patient in awaiting the full rewards.

Perhaps the most important factor is that GEX should maintain a reputation for being able to steadily support their expectations - this will instill investor confidence.

[1waving] 17/7/2008 18:29

I know why I am uneasy about those TW figures, 18 months ago TW was working on there being 3m oz at Komana --- Why 1.5m oz now ??

[1waving] 17/7/2008 18:21

If TW thinks there is only 1.5m oz at Komana and values just Komana at 21p, the 1.5m oz seems extraordinarily low. ( as is the 21p value )
Is that 1.5m oz risk weighted down from a higher figure ??

[1waving] 17/7/2008 17:32

maniac3, how many ounces does he think is at Komana ??

[valentine] 16/7/2008 18:17

Sooner the better..DOW racing away..
Confidence must return first.

[robbi123] 16/7/2008 17:45

well, TW has a target of 28p and values Komana @ 21p, based on 1.5m ounces at $75 oz. What price if gold reaches $1500 next yr? Unbelievable that we are sitting here at 8p. At some stage the market will realise that there are some serious bargains to be had in the sector.

[1waving] 16/7/2008 16:55

Think this paragraph is so important:--

'The latest results from Komana East give very good reason to be optimistic about the outcome of the next Komana resource estimate update. There is very good confirmation of ore grade mineralisation along strike and the regularity of ore grade intersections over exciting widths intersected to date point to a very well developed mineralised system. The potential for continuity along strike both to the north and the south is very strong and, based on the results from the RAB drilling at Gonka, the further potential for up to 20 kilometres along strike to the south is very good indeed.'

Someone referred to the grades in this release as modest earlier. Maybe we're spoiled by Glencar. Consistent grades of 3g/t are grades that any gold juniors would be extremely pleased with.

Good width, depth, strike length and consistent 3g/t grades demonstrate how strong these grades and results are. The current JORC resource ounces at Komana West are at 1.4g/t over 1,100m, comparison with the Komana East characteristics should put what is at KE into context.

.

[haydock] 16/7/2008 13:29

Mabel 123.
They want more than that, try EGU, look at the RNS today no known reason for the fall, all going well, then look at the chart, and you will know which direction the small mining caps are moving at the moment.

Everbody that tries to make sense of it comes up with the same answer.
The fed seems to feel that something has happened in the markets past as well?

[valentine] 16/7/2008 13:23

Same goes for our other mutual interest M. AGM day onwards there>>>>
Publicity and good RNS just do not have the same effect anymore. They want production and proven assets. The rest is treated with smug indifference.

[mabel 123] 16/7/2008 13:16

What does it take to move the share price.

Gold ready for an assault on $1000 and a good rns and here we are at 8p.

mabel

[spaceparallax] 16/7/2008 12:40

Thanks DFS.

[dr fillip strange] 16/7/2008 11:25

Their holding remains the same @ 15.742m shrs,

% changes from 6.09% to 5.86% because of the new equity issue..

[1waving] 16/7/2008 11:21

Can't tell after the recent placing but any movement in that holding is very modest.

[spaceparallax] 16/7/2008 11:19

Solid results, showing no realy high grade spikes, but extensive modest grade. Results have been remarkably consistent so far and the scope of the find is growing significantly with each set of results.

Anyone know whether JPM's holding is up or down?

[1waving] 16/7/2008 10:27

Hugh also emphasised how these latest KE drill results confirmed continuity within the KE drill area. Adds confidence for a good initial JORC.

[haydock] 16/7/2008 10:06

What he really said was:

There is very good confirmation of ore grade mineralisation
along strike and the regularity of ore grade intersections over
exciting widths intersected to date point to a very well developed
mineralised system. The potential for continuity along strike both
to the north and the south is very strong and, based on the results
from the RAB drilling at Gonka, the further potential for up to 20
kilometres along strike to the south is very good indeed.

Apart from our study of his carefully chosen adjectives, note exciting, he is saying that this could extend in the formation they have drilled, with the type of grades they have found for a long long way.

One hole 79 metres @ 2.5 g/ton, is a very significant strike, once more.
Also there's even more in that particular hole as it was still open.

[dr fillip strange] 16/7/2008 09:53

O/T - naked short selling.

[dr fillip strange] 16/7/2008 09:44

Media & Broker views on this mornings solid RNS..

[1waving] 16/7/2008 08:21

Seems Hugh is graduating from exciting, to stunning, to emphatic.

Time to run a book on the next 'word of the announcement' ??

[deka1] 16/7/2008 08:08

no bonanza grades , but steady average of around 3- 4grams/ton along the whole strike , and very good width,depth, looks very good, could be world class strike when all proven up

[valentine] 16/7/2008 08:02

Emphatic eh? "Emphatic confirmation of ore zone along strike"
And they are always so careful, nay conservative, in their wording.

Nice after waiting patiently for so long.
Congratulations Hugh and co,