Mining Minerals & Metals Share Discussion Threads

[valentine] 22/9/2008 12:36

Assay results "due within couple of weeks"
No further funding necessary.
Drilling to re-commence in Oct.

[bongo bwana] 22/9/2008 12:32

Ive just seen the first signal in Dublin to alert me to elevate GEX on my 'black watch' list.

Something's stirring this morning.

[serpicouk] 21/9/2008 12:17

Looks like 1W picked a fine week to take off =)

We only went and had the single biggest rise in Gold in the last decade...GEX went down.

Then we saw the single biggest rise in global stock markets ever...GEX went down.

Next week we might see a significant increase in JORC resource...GEX up at the third time of asking?

If 1W was around I'm sure he would post this from Jim:

Does this price action we just experienced give you déjà vu from late 1978?

Answer: Yes!

[maniac3] 19/9/2008 13:25

Ha .... funny, in a way, to see market up 400 pts or so and GEX going down while when the market plummeted GEX did as well.

Gotta love it.

[bongo bwana] 18/9/2008 16:52

Steady maniac, steady

[maniac3] 18/9/2008 15:28

might buy some more now ... v. tempting to be fair.

[bongo bwana] 18/9/2008 07:36

the market is contrarian by its own twisted nature

[serpicouk] 17/9/2008 22:28

Crazy times. Lets look at some crazy numbers. So, using a year old resource and a very conservative gold price:

Resource of 520,000oz with in ground value of just $25 = $13,000,000

Today gold has risen 10%. Underlying asset value has increased by $+1.3M.

For whatever reason a few people sell £12,000 of shares. MM mark the stock down by $-4.4M.

We unfortunately invest in a time where:

$1.3M increase in asset value = $-4.4M to company value.

And £12,000 = $5.7M

Makes my head spin.

[pecker1] 17/9/2008 17:25

There is no need for a fund-raising until late Jan/early Feb 2009 by which time they will have another large batch of drilling results for Komana East and the string of pearl targets to the South.

Provided they can find the right kind of partner, I'd expect a JV with a cash-rich intermediate/large producer.

Should POG do what I hope it will and exceed $1000 by the end of this year, attitudes towards financing gold explorers could change markedly for the better.

[valentine] 17/9/2008 17:11

A placing?...Noooooo! Please No! That means half price and more discount to present sp, and you'll still get it for less on the market. Tell me it is not a possibility!

[deka1] 17/9/2008 16:59

gold price dosent seem to effect expolrers as much, must say ithought 6 would be the bottom during the off season, but then america had'nt imploded at the time, could be very difficult to get funding i agree,perhaps they will sell a bit more to gold fields, seems the obvious choice to me to raise cash

[bongo bwana] 17/9/2008 16:07

Spacer,

Seems like some junior are getting a belt again today.

Over at iii there's an authoritative article on GEX relating to E & W Komana and the geological settings (Magnetite and Pyrite) in which the ore is located in varying concentrations.

Reference made to the need for additional funds early into the New Year for the drilling programme which will assist GEX exerting a firmer grip on their understanding of the tergets. This market is not a place to try and raise funds in right now.

[valentine] 17/9/2008 16:03

Gold price going potty and we're going..............nowhere.

[spaceparallax] 17/9/2008 15:31

I don't understand why the sp's dipped so much - we're only expecting good news.

[deka1] 17/9/2008 12:32

is it just the mud that stops them drilling in rainy season,because these rigs are not so big that they could'nt be covered by a tent arrangement of some sort, iv'e seen the pictures of the rigs CEY is using in Egypt and they are wheeled vehicles, like trucks , i suppose using wheels in the rainy season is not practicable, wonder if tracked rigs are available, that could be the answer,

[valentine] 17/9/2008 12:05

Any chance of Hugh telling us if they intend continuing during the 'Rainy season'? They must have been 'up t'neck in muck and bullets' last year, but I suspect they have had a chance to improve infrastructure and access by now ie built a few roads and huts for shelter.

[spaceparallax] 17/9/2008 12:02

Beginning to look very good value given the imminent resource upgrades.

[haydock] 16/9/2008 11:19

Borrowed from SRB, which in the same hole as the rest.

nielsc - 11 Sep'08 - 12:37 - 1785 of 1792


An interesting read.



Chipperfrd posted this on the GFM thread.

Cheers,
Niels

[serpicouk] 12/9/2008 19:48

Yep - that sounds like a serious amount of drilling...

If it is possible to drill in the rain then it would be strange for GEX to choose not to. From memory, last season drilling at Komana stopped early June and didn't commence again at Komana until early November. That would be a lot of missed exploration time if it is possible to continue operations.

...Actually, just reading an rns for the 2007-2008 season and it says the stoppage of drilling was extended 3 weeks due to improved conditions on site due in part to a scale up of operations. Suggests there may be 'rain defenses' that enable drilling throughout the year? improved road surfaces, improved homes, improved drainage....more umbrellas and wellies.

If anyone finds references to others drilling through the wet season I might send Hugh an email asking what his plans are regarding this.

Just thinking about those rigs turning 24/7 all year round at Komana - GEX, make it happen =)

[1waving] 12/9/2008 18:10

Serp, yup, production should be all year round although may be a little hampered in the rainy season as you mention. Also got the impression from Medoro on the neighbouring Sindo license that they are continuing with diamond drilling in the rainy season, read it a few weeks ago but can't find the reference now!
Gold Fields have set themselves a really major amount of drilling to do by December which would take one whole lot of rigs if done in the two dry months leading up to December - Does make me wonder if they are drilling now.

From Gold Fields last quarterly report:--
'The upcoming work programme will include trenching and 18,000 metres of RAB/RC and diamond drilling to further test the five priority targets. An additional 20,000 metres of RAB drilling is planned for target definition over the twelve other Priority 2 and 3 areas not yet tested. The above should be completed by the December quarter.'
Just two months to do that amount of drilling ??? --- Needs a lot of rigs.

[serpicouk] 12/9/2008 17:17

The minesite article the other day made it sound like Goldfields were drilling through the wet season. Whilst I doubt this I did ask whether the wet season would impact any future production.

Took a look at Morila and Randgold mined the same quantity in all 4 quarters. One impact is that supplies are limited through this period - fuel often can't be brought in and it's illegal to transport cyanide in the wet season. Something we'll probably need to extract the gold out of that pyrite.

Morila is mostly pyrite too - they recover ~92% with current cash costs between $340-370. With diesel being the biggest contributor to costs.

Not really surprising that drilling and recovering cores isn't feasible in the rain where as simply digging out the tonnes isn't an issue.

[bongo bwana] 12/9/2008 10:27

There appears to be no interest in GEX at 0.085 cent to buy in Dublin's IEX either. No trades for 3 days.