Mining Minerals & Metals Share Discussion Threads

[bongo bwana] 03/9/2008 11:07

1W - GEX has survived because they have top class people with excellent management and financial management skills.

They plan quiet a bit ahead of the calendar and it would not surprise me if their updated JORC related RNS included a statement that they had entered into formal discussions relating to a JV for the Komana licence.

Id expect that JV partner to be GF.

GEX has advised that their current funds will require bolstering before next years AGM. Its probable that this fund raising will not take the form of an approach to shareholders, in the current market climate, in order to avoid DISPROPORTIONATE dilution.

GEX will require substantial funding for its drill programme later this season and for any plans they may have for Solona.

Interesting times ahead, especially if GEX receives an approach from ANother uninvited guest to the Komana party.

[1waving] 03/9/2008 10:55

Anyway, back to Glencar. The JORC came through last year on 23rd Oct so may be a bit optimistic to expect September for this year but will be pleased if it does. 2m oz would be good with anything over that a good bonus. Not all that long for the drill to go back in the ground, maybe 6-7 weeks.

[bongo bwana] 03/9/2008 09:33

Thanks 1W.

There appears to be plenty of MCR stock available at current levels but the market cap relative to actual and potential ounces appears only reasonably attractive at current Au value. But one to keep an eye on.

I still prefer GEX for my last drink at the investing saloon.

[bongo bwana] 03/9/2008 07:00

1w - whats Ur assessment of the MCR story ?

[bongo bwana] 02/9/2008 22:13

Deka - whats the US$-Au$ exchange rate?

The € is about 2Au$ and 1.45US$.

[bongo bwana] 02/9/2008 16:50

I certainly am Deka1 but only at current levels and for a short period of time.

An investing pal by the name of 'Andrewwot4' recommended them to me as a strong "watch" candidate back in Jan 2007. Today I was looking up old emails and rediscovered the recommendation. Dunno what happened to Andrew.

There appears to be a question over the fiscals/econmomics of their mine.

The big question appears to be the mean cost of producing an ounce Au there and the prevailing market price of Au. Also have MCR sold too much forward at a low $ price???

Imagine this!!! They are mining a 500,000 reserve and have 2.5m ounce resource awaiting attention. GEX could do this and we're sure the Komana economics stack up even at current Au price.

[bongo bwana] 02/9/2008 15:08

Anyone care to have a look at MCR and comment on what exactly or speculate even on what is going on over there?

[bongo bwana] 30/8/2008 12:50

EXCELLENT and many thannks.

Looking to double holding ASAP

Have a look at the iii site - in their technical analysis they refer to a 'bearish' event.

Anyone care to comment or ID what this relates to?

[deka1] 30/8/2008 08:49

well put together wave, thanks

[catom1999] 30/8/2008 08:39

1Waving,

Thank you for the time and effort put into that uplifting assessment of prospects.

Much needed in these depressing times.

C

[1waving] 29/8/2008 17:42

Glencar expects the updated JORC to come in September for Komana East and West and be a multiple of the initial 520,000oz at Komana West. With the drilling that has been done this season it should be reasonable to look for 2m oz. That will provide a good boost but does not yet come near to reflecting anywhere near full potential. The early exploration has been done and next drill season will be aggressive across all 5 license areas in Mali.

From the excitement of the initial strike at Komana West and then the additional two new strikes to the South at Kama and Soloba, that Western Komana 'string of pearls' looks to have very strong potential for over 2 million ounces, quite possibly substantially more with these strikes still being open along strike and at depth.

Then Glencar got the drill into the ground at Komana East with a small known deposit and the positive results started coming through - and kept coming, persistent good grades and width/depth - and is still open along strike and at depth. Now we also have another strike that looks very strong to the South at Gonka - plus at least a further 5 targets to the south and more to the north. With Komana East being in the main Sankarani shear zone with 23kms of strike running through it, the Eastern side of Komana looks to have far greater potential than the West side. 3 million ounces may be conservative for the Eastern side of Komana.

Solona has now had three strikes confirmed. Badogo-Malikili with both RC and RAB drilling. Niechilela RAB drilled and producing many sections over 3g/t over a strike of 1,200 metres, with significant mineralisation encountered in fifteen holes and open along strike and at depth. At Faliko disseminated gold mineralization has been located in an extensive alteration zone over a strike length of 1,000 metres. The gold mineralisation is open both along strike and at depth with significant mineralisation having been encountered in four holes. Like the look of Badogo-Malikili in particular and Niechilela. Looks like there will be a fair amount of resource ounces to come, but these targets will all be drilled in the coming season and will get a better idea then. Maybe a cautious total of 1 million ounces for Solona.

Then there is the JV with Gold Fields in the 3 Sankarani license areas. Seventeen targets were prioritised for follow-up work following the completion of a high resolution airborne geophysical survey in March 2008. Five Priority 1 targets have already been drilled to test a cumulative prospective strike length of 55 kilometers. Assay results from drilling the Sindo target outlined gold-in-bedrock anomalism coinciding with a northeast-southwest shear-zone. Visible gold was reported in pan concentrates recovered from the Fingouana and Kabaya South RAB holes, with intercepts of up to 9 metres at 6.5 grams per ton Au. Kabaya South has already had substantial drilling and is a known deposit along with the Sanioumale West A and B targets. With the known deposits at Kabaya South and Sanioumale West A and B it should be safe to attribute 1 million ounces to Glencar from this JV area. The Sindo and Fingouana targets together with at least a further 12 targets from the aeromagnetic survey should underpin that 1 million ounces quite easily. All 17 targets are to have further drilling completed by December in a very aggressive programme for the coming drill season.

With Glencar's current market cap of £17.5m and looking to how the value per ounce might stack up, the above totals up to some 7m oz on the 5 Mali licenses, but the forthcoming JORC for just Komana East+West will be more in the region of 2m oz. Maybe a reasonable figure to work on would be 5m oz for all the licenses, ( although I'm pretty confident of that amount at just the Komana license ). Have not ascribed any value to the Ghana or Uganda projects even though Ghana does have a confirmed ore body.

The £17.5m mkt cap divided by 5m oz gives a value of £3.50 or $6.50 per ounce.

Whilst it is widely acknowledged how undervalued the juniors are, breaking it down in this way does highlight there is massive value to be realised. In many ways trying to get a reasonable estimate of the ounces in the ground is quite academic as there are still so many targets and deposits to be developed. What is important is that we can now see very major deposits developing in close proximity on the 5 Mali licence areas.

With the increased number of rigs and clearly stated intention for an aggressive programme on all 5 licences, the coming drill season will confirm that Glencar is sitting on a world class deposit.

[maniac3] 29/8/2008 15:22

27p ... if GEX could slowly reach half that I would be happy.

[bongo bwana] 28/8/2008 11:22

Thanks R 123

[robbi123] 28/8/2008 11:12

Hi guys, sorry for the delay. No webcast just yet. Price target of 27p. Glencar imo is embarrassingly undervalued! Our time will come I am sure!

[bongo bwana] 28/8/2008 10:17

The future for GEX ?

Extracted from a UK Analyst report on yesterdays market performers.


Mining company Cluff Gold (CLF) revealed that its Kalsaka Gold Project in Burkina Faso has started the commissioning of its dry plant. Moreover, about 4,500 tonnes of ore have been processed and are now stacked on the leach pads. The group also said that it hopes to bump up its annualised gold production to 60,000 ounces by the end of this year. Together with Cluff's first project, Angovia Gold Mine, Code d'Ivoire, the company expects to produce a total 100,000 ounces of gold yearly from 2009. "Although the gold price has softened in the last couple of months, we believe it will remain buoyant over the longer term. We also believe the Company is now poised for significant growth in 2009 when the two gold projects are expected to reach their design production capacities," explained Douglas Chikohora, Technical Director. For the year to 31 December 2008, it is forecasted that Cluff will break into profitability and generate pre-tax profits of about 1.27 million pounds (up from losses of 4.78 million pounds in 2007). That would equate to earnings of 0.9p. However, this should rise substantially in 2009, when pre-tax profits of around 16.5 million pounds should generate earnings per share of roughly 25.9p, putting the shares on a forward earnings multiple of just 1.6. Shares in Cluff finished flat at 40.75p.

[1waving] 27/8/2008 19:38

Interview with Frank Barbera on Seeking Alpha - another must read

extract:--
The crazy thing about this market is that we're looking at great companies that have made a lot of progress over the last four years, and in many cases actually have cash flow or have heavily delineated, well drilled out deposits, where their element of risk has drastically shrunk and, yet, the market is just yawning and ignoring them. If you had asked me candidly a year and a half ago would this scenario happen, with practically all-time highs for a few months this year, then with metal and junior mining companies drifting off to multi-year lows, I would have told you no way.
_________________________

[1waving] 27/8/2008 14:25

Val, TW said the webcast would be today, Wednesday. Am not a T1ps member but I think one or two on this thread are - robbi123 ?

I think there are five million plus reasons that Glencar is a strong buy -- but more on that soon.