Mining Minerals & Metals Share Discussion Threads

[maty] 23/2/2009 09:29

I love this share, might be worthwhile looking at Vog that old chestnut..seems to be some activity on it after a long stagnation, be interested in any comments on iy on that site, I am in! imho good luck all

[robbi123] 23/2/2009 08:20

Nice early buyer of 200k @ 4p.

[1waving] 22/2/2009 20:48

It's only been a week since a poster on iii received an email from Hugh saying he was still cautious on releasing news at present but maybe the recent move up in gold will help sentiment, am not holding my breath on news in the very short term.

This extract from the resource update on the 23rd Oct lays out what drilling was intended at Komana in the current season :--

"Drilling has already recommenced on the Komana concession and,
initially the programme will focus on the prospect of extending the
Komana East resource along strike to the north and the south as well
as testing additional targets within close proximity to the main
Komana East deposit. A second rig is due to arrive on the property
before the end of October to test additional targets delineated by
the aeromagnetic survey and geological mapping, which lie along the
Sankarani Shear Zone within the Komana licence.

Further drilling is also planned at Komana West, especially to test
the down- plunge extensions to the known high grade shoots within the
deposit. Drilling will also be carried out to the north of the
Komana West deposit to test for an extension to the main Komana West
shear system which has been delineated from the new aeromagnetic
survey carried out over the licence earlier this year.

Although ore grade mineralization was encountered in the drilling
carried out at Soloba and at Kama, to the south of Komana West, it is
proposed to drill test other highly prospective targets on the Komana
Licence before carrying out follow up drilling on those targets."

Also positive on deeper extension at Komana West:--

"We are very encouraged by the increase in the Komana West resource and we believe strongly in the potential for deeper extensions to the high grade shoots, which, if confirmed, would present a strong case for underground mining from the floor of an open pit."

Good to see more activity on this thread and on the share price with a bit of volume.

[robbi123] 21/2/2009 11:27

Indeed B, except the value of gold is rising and the price of oil declining. I have no doubt Oil will recover but we are seeing a resurgence in gold stocks and GEX should not be exempt from a strong rally with a resource of at LEAST 1.3mil oz. Exciting times ahead again after years of being neglected.

Hope all is well

[valentine] 21/2/2009 11:03

Yes Robbi. About time they declared what they have achieved in the interim.
Like oil it is always there under the ground. It needs to be brought to the surface for value these days. That is the change in fortune in the intervening time.
The news is imminent that is why so many are chasing it suddenly.

[robbi123] 21/2/2009 10:50

These were the days:

"The minnow Glencar, 0.12p weaker at 13.25p, is thought to be on the verge of announcing results from final test drilling at its Yanfolila project in Mali, which some traders believe could turn out to be one of the largest gold finds in recent African history. The company has already said the mine shows high gold grades of 55.19 grams per ton and bulls believe that good results coming out today or tomorrow could transform the share price."

[seagreen] 21/2/2009 08:58

iwaving looks to me that GEX is ready to realy turn here with increased buying, re PGD was slightly unsure about funds so only bought a smidge but as they are claiming to be such a low cost producer there should not be a problem re funding.
Their reported drill results also in early february look most exciting and some think they may have hit a bonaza find with bonaza grades.

Re fundign apparently the yanks were falling over themselves when they heard David's vgm story and saw the low cost market cap as compared to the north american market caps of gold producers....think gold/silver will be one of the few areas where the market will be able to raise dosh.

We could be on the verge of a gold run I think, although personaly would prefer a slow and sustained rise as a huge spike and colapse would be useless. But as the markets are in a shocking state however, perverse it is gold may be the only protector of cpaital for teh next few years...which would be nice...good article here from the ft on thursday also shows when to look for overbought etc

Insight: Gold primed to be 'mania asset'
By Steve Ellis

Published: February 18 2009 16:26 | Last updated: February 18 2009 23:32

Gold is exhibiting all the classic signs of being in a structural bull market. On fears of inflation in early 2008, it rallied. Then, on fears of deflation in late 2008, it rallied again.

So does gold perform better during inflation or deflation?

EDITOR'S CHOICE
Investors rush into gold coins - Feb-18Fund amasses bullion holding - Feb-18World Gold Council statement - Feb-18In depth: Gold - Jan-03In our view, that question is the wrong starting point. On the contrary, the rationale for owning gold, as it once again approaches the $1,000 an ounce level, is the prospect of mounting monetary disorder.

The US Federal Reserve, having flooded the market with liquidity by more than doubling its balance sheet in less than six months, may be unable or unwilling to withdraw it in time for fear of precipitating a secondary relapse in economic activity. Other central bankers will also face intense pressures to "support" their domestic economy by weakening the currency, leading to competitive currency devaluations.

The race to the bottom in fiat currencies has begun and hard assets, particularly gold and silver, should be the primary beneficiaries.

Gold is a prime candidate to become a "mania asset" once its demand becomes chiefly financially driven as opposed to jewellery and/or industrial demand driven where its upside could be capped by "sticker shock".

In fact, gold is currently one of the few remaining major asset classes where a case could be made for it to rise in a parabolic fashion. Once the psychologically significant $1,000 an ounce is breached convincingly, the speed of the move beyond that level could accelerate sharply. One precondition for a mania is there must be uncertainty about how the asset is properly valued which allows "new era" thinking to take hold. This is very true for gold.

Price explosion might not be imminent, however. Gold is experiencing unprecedented buying by exchange-traded funds, offset by substantially reduced jewellery demand. The fall in the Indian rupee has meant Indian gold prices have reached record levels. This is causing a slowdown in jewellery purchases (even though rupee expenditure levels are holding up, the tonnage of gold imports is suffering).

The long-term story for gold, however, is as a remonetisation play as investors lose faith in fiat currencies. Keep an eye on gold lease rates; a spike would be a good lead indicator that gold is about to punch higher as this would reflect a shortage of lendable bullion. Rising lease rates will cause gold to go into backwardation as holders of gold may not want to sell their gold forward under any circumstances a trend currently evidenced by the high physical premium being paid for gold coins.

Rising lease rates prefigured the last big move in gold back in the spring of 2007 just as the two Bear Stearns hedge funds were blowing up. Central Banks feared counterparty risk for the first time in 20 years and substantially curtailed gold lending and sales. This led to a 40 per cent rally in gold from $700 to over $1,000.

How high can gold ultimately go? A Dow Jones Industrial Average/gold ratio of 2:1 would be a good sign the bull market in gold is getting well advanced. We saw this in 1932 and 1980. Only nine years ago in 2000, however, this ratio reached over 40:1.

Arriving at 2:1 again does not necessarily mean the Dow must decline significantly from here; more likely gold prices surge and the Dow stays range-bound but volatile. Investors are looking for good risk/reward investments.

I cannot say with any confidence that gold will not be without risk and volatility but at least it offers early participants plenty of upside reward to compensate them for the wild ride.

Speaking to central bankers, this is the first time I can recall them actually favouring a high gold price. Normally they see high gold prices as a lack of trust in the financial system (not to mention their ability as central bankers). Alan Greenspan, the former Fed chairman, for example used to target a gold price of around $400 to $500 an ounce.

Recently, the central bankers have become more enamoured of higher gold prices as it would suggest that their attempts to stave off deflation were starting to work.

Central bankers in favour of higher gold prices? Things really have changed.

The writer is manager of the RAB Gold Strategy
Copyright The Financial Times Limited 2009

[1waving] 20/2/2009 22:43

Jim Sinclair's Commentary

The third time above $1000 means $1650 and I believe that Alf will take the award for being most correct.

The following is the schedule for Gold.

Gold will try $1060.
Then $1224.
Then $1650.

from trader Dan Norcini

Also, we are not yet through the month of February, but gold is on track to put in its highest monthly CLOSE ever. Coincidentally, that occurred back in February 2008 when the front month closed at $975. Next Friday's close is going to be interesting to say the least. One more thing – gold in inflation adjusted terms is still well off its all time high which on an inflation adjusted basis is over $2,000. The case could me made that even at current levels, gold is not particularly expensive.

[valentine] 20/2/2009 22:12

Good day today1
The news has to be good. Question is when?
Monday?

That would be perfect.

[robbi123] 20/2/2009 19:07

Has anybody got the Cenkos broker note from last April with a price target of 15.5p? Would be interesting to see if they reiterate their BUY recommendation with Gold flying high at the moment

[robbi123] 20/2/2009 19:00

Just looking back at Tom W's last update after the resource upgrade in Oct, he was very bullish about GEX at 4.125p,

"Taking a conservative resource of 1.5 million ounces and an ounce-in-the-ground price of $75, the combined Komana mineral resource would carry a value at in excess of $100 million."

Anyone want to take a guess at what kind of value with gold at these prices? Certainly considerably more than the £10mil market cap we are at now! Todays volume and buying has been very interesting!

[pecker1] 20/2/2009 17:27

1waving,

Many thanks.

[pecker1] 20/2/2009 16:54

The last AGM.

[pecker1] 20/2/2009 16:26

Mid February is about the time when GEX said it would need to raise additional funds. Does anyone know whether the drills have been turning since the start of the year or have they been trying to conserve cash?

Today's action suggests that news will be coming soon.

[bongo bwana] 20/2/2009 16:13

Guys, we havent enjoyed a day like this with GEX in a long time.

It has the feel of a good crisp spring morning!

Have a great weekend all - the quality Sunday papers should be interesting.

[1waving] 20/2/2009 15:40

BT18 ---- NO, will put in ticker

[bartender18] 20/2/2009 15:37

1waving

Are you talking about GEX?

[1waving] 20/2/2009 15:33

seagreen, did post a reply to you earlier but didn't hit the post reply button !!!

PGD will need cash and the current mkt cap is high but need a clear picture of their compliant resources. Maybe one to wait on but will look further.

[spaceparallax] 20/2/2009 15:31

Yes, just seen the 1M sell@ 3.75p. A good, solid week.

[robbi123] 20/2/2009 15:29

looks like thats the seller is cleared now, good volume today gents

[pelleeds1980] 20/2/2009 15:26

Nice one could be a good end to the week and hopefully we can keep some momentum in for next week. gold looking strong as markets take a battering

[spaceparallax] 20/2/2009 15:23

250K Buy @ 4p recently come up.