Mining Minerals & Metals Share Discussion Threads

[haydock] 13/3/2009 09:05

Agreed,bullish within parameters.

The newsflow will provide price change & thwe share price could be upwardly mobile.
However it will only move the price along the graph for a miner on the way to production.

The gold is in the ground, if the conditions are suitable a mine will happen, nothing new in that.

The point I have made though is that conditions are nearer normal for cash raising, j/vs etc than we think.
The falling markets & the rising gold price has created a market for the small gold shares.
That subset which fell so far has shown some amazing rises, whilst far below the highs already.

[deka1] 13/3/2009 08:52

willy, i agree with your post, this is many years from an operating mine,
pog has little effect on this share price at this explo stage of things
resourse upgrades are the only driver
time he put one out

[willyworm2] 13/3/2009 08:38

Yes, but we are not a gold producer. I think if they were to do a subset of gold juniors/explorers then they would be towards the bottom of the table. Over the last 12 months we have fallen by 50% and over the last two years we have fallen by 70%. Nor is there any realistic possibility of us becoming a gold prodcuer in the next 2-3 years. Yes we may have an economic deposit, but realising any value from that - either directly through production - or more relaistically through a rising share price - looks a distant prospect. By the time we actaully get to production - which I doubt we have the cash to do - we could well be in the midst of a recovery and gold prices could be falling again.

Don't mean to sound overly bearish but at the same time we shouldn't be overly bullish.

[haydock] 12/3/2009 17:09

The newsflow will bring it's reward ?
Looks very positive.

[bartender18] 12/3/2009 11:33

When was the last time any directors brought any shares in GEX.?

[spaceparallax] 12/3/2009 11:27

That's fair.

[alibongo612] 12/3/2009 10:22

The problem with a strategy of second guessing when the market should be ready to react more favourably to good news is that in the absence of news in the intervening period the share price can fall to such a low level that even good news may be insufficient to raise the share price to even previous levels.

Regular newsflow and transparency is essential in junior stocks

[bongo bwana] 12/3/2009 08:53

Paulson are reputed to have made $450million on shorting Lloyds

[haydock] 12/3/2009 08:25

Well then:
With the benefit of foresite, we could say it is the perfect example.

If GEX begins to release good news we could have some of the same results.
My point is made,it shows exactly what is going on around, & what we are waiting for.

Everything comes to he who waits, unless he is in Lloyds shares.

[serpicouk] 11/3/2009 21:39

Interesting that Patagonia Gold gets a mention - for the sake of frivolity...

Since Nov PGD have released : 3 drill reports, a resource statement, a scoping study report and a placing.

Since Nov GEX have released :

Since Nov PGD share price has gone up ~130% and is close to a 3yr HIGH.

Since Nov GEX share price has gone up ~30% and is close to a 3 year LOW.

...hmmm.

[haydock] 11/3/2009 16:40

GF, is a valuable j/v, but the site needs to be moved towards fruition. In this climate the sooner the better.

At this stage it is often not clear that GEX, has 2 irons in the fire & this could be more, someday soon, as we know that they have had offers of other j/v's.

There is much to come here, which is why I started the crocodile as a bit of fun, mainly because I felt the sp, was missing out on the rehab that has begunin the small golds,{ some of the world wide returns from the bottom have beeen huge rises } but it could also be applied to the news flow that should start to accelerate this year.

I did not know then that the share price was about to drift above the Japanese cloud.
I must look & see if it still is, I will let you know if it rains!!!

[deka1] 11/3/2009 14:59

yes haydock the sector has opened up a lot in the past couple months, personally i would like to see GF take another %%% for the money , whats your thoughts ??

[haydock] 11/3/2009 14:39

Dekal:
Lots of signs now, all the time the the cash flow situation has eased for the small golds.
Noted on Minsite today Patagonia Gold raising money for a mine, for example.

Lots of money raised with paper, cash flow problem overrated in this sector, has been for a month now, { glass flowing over!!!} since the Indaba.

[bongo bwana] 11/3/2009 13:56

Nice one Deka.

How did HMc's form strike U?

Having regard to my growing knowledge of the person that HMc is since circa 1990 Im absolutely certain that if there were drilling results which materially and negatively affected his expectations and convictions of success at Komana there would have been an RNS relating to same.

The absence of such an RNS speaks volumes for the current 'unspoken' and continuing success of the Komana drilling programme. It also allows shareholders to draw certain inferences, and given his high level legal qualifications, HMc would be aware of this.

[spaceparallax] 11/3/2009 12:39

Cheers Deka.

[wispaman] 11/3/2009 12:15

deka1, thanks for sharing the reply.

I view it as nothing has happened in the last 12 months out of the ordinary.

The share price should remain the same as there is nothing to encourage new buyers.

lol wispa

[haydock] 11/3/2009 12:01

Well done Dekal:
A strong & measured response, all we would expect:

{What he is really saying is it's all it was last year, so why is the price any less? }

Answer the world has changed.{ Glass half empty, reality? }

Correct answer, but so has the gold price.{ Glass half full }

Well the price is too low still. Then so are many other small golds.

Still the news will come.

[1waving] 11/3/2009 10:49

deka - thanks for that. Looks like a change of wording from Hugh, from not in the present environment with forced sellers, to news is not too far away and things are going well.

Will be looking forward to it.

Cheers.

[deka1] 11/3/2009 10:41

hi all, got a response to my comp email this am, below is the reply in its entirety


Thank you for your email. I appreciate that it has been some time since our last announcement. However, this should not be taken as indicating that anything is amiss. I am quite satisfied with our progress and my expectations for the Company's projects and its future are as strong as they were a year ago.

I do hope to be in a position to give an update on the Company's activities and progress soon.

With regards

Hugh McCullough
-----

[bongo bwana] 10/3/2009 21:25

It is beyond doubt that Komana will be the location of a mine.

It would be wonderful if Sankarani was the location of another mine.

Because its not inconceivable that both would come into production within a relatively short period of time of each other - providing a double whammy to GEX's projected earnings.

[1waving] 10/3/2009 20:50

From what I can see GEX have a RC/Diamond rig and a RAB rig the same as last drill season and have not forecast how many metres they may drill simply because they are drilling according to what they find as they go. I certainly haven't expected any particular metreage.

As for Gold Fields they did forecast an aggressive drill plan in their quarterly report ending Sept 08 as follows:--

"At the Sankarani joint venture in south-western Mali, where Gold Fields is earning-in to an initial 51 per cent interest in a project currently operated by partner Glencar Mining plc (AIM: "GEX"), seventeen targets were prioritised for follow-up work following the completion of a high resolution airborne geophysical survey in March 2008.
A total of 18,486 metres of rotary air blast (RAB) drilling has been completed to date on five Priority 1 targets 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. 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."

Following on from that, Gold Fields Quarterly report to end Dec 08:--

"At the 51 per cent owned Sankarani joint venture with partner Glencar Mining plc (AIM: "gex") in south-western Mali, exploration focused on the Bokoro Main, Fingouana and Kabaya targets. At Kabaya, assay results from bed rock sampling outlined three N-S corridors displaying gold-in-saprolite anomalism with gold values ranging from 26ppb to 1.15 grams per ton. At Fingouana, assays are pending for infill RAB drilling of a seven kilometre long anomalous zone identified in early 2008."

Very short but that is what GF have released, make of it what you will.

I do think a substantial amount of progress will be made at Sankarani this drill season.

[serpicouk] 10/3/2009 20:33

parallax et al: re GEX/Goldfields not overstating drilling plan.

[edit: I appreciate that 'overstating' probably wasn't the best choice of word.]

Back in Novemeber I had a number of concerns - one was that I could see drilling being scaled back to reduce cash burn. I don't recall the exact words but Hugh concured that that course of action may be likely given the credit crunch circumstances. I also questioned the feasibility that Goldfields could drill the meters they claimed in the release at the time. He agreed it seemed unlikely but couldn't confirm the rate they were drilling at.
Feel free to search through posts towards the end of November as I posted the information on this BB.

Hugh would say that they only said they 'hoped' to exceed last seasons meterage. He was quite insistent that no targets for meters had or would be given. However, I suspect quite a few shareholders are expecting another increase in total meters drilled...it may happen but you should also expect less meters drilled than last season.

[bongo bwana] 10/3/2009 14:02

OK class - relax!!!