Uruguay Mineral (SEE LSE:OMI) Share Discussion Threads

[themoneymonster2] 07/10/2009 09:28

Your a short termer and selling out of a gold producer that is massively operationally geared to the all time high gold price.

[somfawa] 07/10/2009 09:22

You're a short-termer.

[cyberbub] 07/10/2009 09:05

I have sold out today guys, at a small profit, have held for a month and they aren't going anywhere fast, I am a bit suspicious of the deal just announced, the site just bought is cheap but that's for a reason, it seems likely to be expensive and low yield to develop. Of course if gold does hit $1500 within 6-9 months it could be a different story but there seem to be better prospects elsewhere meanwhile. Call me a short-termer, yes I suppose I am in some stocks! :-) Good luck to all though, now I have sold it will probably rocket! DYOR

[kooba] 07/10/2009 07:16

Gold, 'Off The Charts', May Target $1,500: Technical Analysis

[themoneymonster2] 06/10/2009 22:34

Great read thanks

[kooba] 06/10/2009 22:26

minesite out of date have rbc down as nomad..
thanks makes an interesting read and no imminent fundraising before we know how big pantinillo really is..if its a 2-3m open cast cracker it won't be anywhere near these levels anyway,also sounds like it will not be that long a wait to have the prospect verified.

[robson1974] 06/10/2009 22:20

matrix (corporate)

[kooba] 06/10/2009 22:19

robson1974 thanks for posting. is that [shop] rbc research may i ask?

[themoneymonster2] 06/10/2009 21:35

Issued share capital after the new shares has been allowed for is 65 million shares meaning around 15 million shares have been issued and the cost is around £5 million so the issue price is equivelent to around 33p. Not suprised we are sat here and am happy to do so. Daz, SP, the fact that bigger and better investors have tipped this and continue to buy fills me with more confidence than your constant put downs, but I like it when not everyone is bullish, I would be looking to exit if they were, means a bigger bargain for me : )

All the very best

[qpwoei102938] 06/10/2009 21:09

Flat in Canada again.

The fact that the share price hasn't rallied after the announcement is a disappointment, but what did people expect exactly?

I'm sure the short termers will move on with a loss soon enough. Whereas the savvy investor will stick around and ignore the crackle of short term trading.

After all, EK has held from above the £1.50 mark and still sees these as a long term winner.

[kooba] 06/10/2009 19:06

slightly out of date fortune presentation


worth a look but i can't help thinking this whole deal revolves around the option that fortune have just acquired from anglo subsid..we need to pick the bones out of the pantinillo prospect and hope its not pants.

The Property Acquisition

Anglo American Norte S.A., a subsidiary of Anglo American plc, has agreed to grant Fortune Valley's wholly-owned subsidiary, Fortune Valley Resources Chile S.A., an option to acquire a 100% interest in the Pantanillo gold deposit in Region III of Chile.

Located in the prolific Maricunga gold district of northern Chile, the potential mineral deposit at Pantanillo is estimated at between 82 to 125 million tonnes grading 0.83 to 0.73 g/t gold using a 0.6 to 0.5 g/t gold cut off for the lower and higher tonnage estimates respectively, which is equivalent to 2.18 to 2.95 million ounces of contained gold. The potential quantity and grade of the potential mineral deposit is conceptual in nature, as there has been insufficient exploration to define a mineral resource, and it is uncertain if further exploration will result in the target being delineated as a mineral resource.

US$4,000,000 must be spent on development work and cash payments of US$850,000 must be made over a period of three years to earn a 100% interest in the property. An initial cash payment of US$100,000 is required at closing. The vendor will receive a 3.5% net smelter returns royalty on future production from the property. An annual minimum royalty of US$300,000 is payable in years four and five, increasing to US$1 million from year six.

The Pantanillo property comprises 11,750 hectares of exploitation concessions located 125 kilometres east from the city of Copiapo in Region III of Chile at an elevation of 4,600 metres above sea level.

The property is located in the prolific Maricunga Gold Belt which currently has two operating gold mines, La Coipa and Maricunga, and several major gold projects at project development stage, including Marte-Lobo, Pantanillo, Cerro Casale, La Pepa, Volcan and Caspiche.



Source: Maricunga Mine Technical Report, Kinross Gold Corp, Dec 31, 2007


The Maricunga Gold Belt, comprising a NNE trending chain of andesitic to dacitic volcanoes, measures approximately 150 kilometres long (north-south) by 30 kilometres wide and hosts a series of epithermal high sulphidation and porphyry-style gold-silver-copper deposits. The Pantanillo deposit was discovered in 1992 and is a gold-porphyry with both oxide and sulphide gold mineralization.

Historical geological work on the Pantanillo property has been performed by Anglo American (1992- 2005) and Kinross Gold (2005-2008). The potential mineral deposit at Pantanillo is estimated at between 82 to 125 million tonnes grading 0.83 to 0.73 g/t gold using a 0.6 to 0.5 g/t gold cut off for the lower and higher tonnage estimates respectively, which is equivalent to 2.18 to 2.95 million ounces of contained gold. This estimate is based on the results of a total of 8,398 metres of reverse circulation drilling and diamond drilling completed on the Pantanillo deposit and a preliminary assessment prepared by Kinross Gold in 2007.

The potential quantity and grade of the potential mineral deposit is conceptual in nature, as there has been insufficient exploration to define a mineral resource as defined by the standards of NI 43-101, and it is uncertain if further exploration will result in the target being delineated as a mineral resource.

Anglo American and Kinross Gold performed geochemistry, geophysics, trenches, and geological mapping to 1:5000 on the property. In the area north of the Pantanillo gold deposit, there are a number of gold anomalies associated with epithermal veins; local small miners (pirquineros) are operating in this area. In the area of south of the Pantanillo gold deposit, zones of banded volcanic rock with hydrothermal alteration and gold mineralization have been observed.

The Maricunga Gold Belt has several major gold projects in development stage. In November 2008, Kinross Gold acquired a 100% interest in the 5.9 million ounce gold resource at Marte-Lobo in the Maricunga for about US$258 million. In addition, project development work is advancing at the Cerro Casale, Volcan and Caspiche projects.

The strategic location of the Pantanillo gold deposit provides opportunities to leverage continued infrastructure improvements in the region to support the project development.

The Company intends to prepare a NI 43-101 technical report for the Pantanillo property.

The Company plans to conduct further drilling on the Pantanillo gold deposit to upgrade the potential mineral deposit to a mineral resource as defined by the standards of NI 43.101 and to complete preliminary metallurgical testing aimed at defining a viable heap leach, open pit operation. The significant potential for a new gold discovery on the overall land package will also be investigated. Project development work will be advanced on power, water and logistics to confirm the feasibility of securing or purchasing key raw materials and services, and discussions will be initiated with mining companies owning other significant gold resources in the Maricunga Gold Belt to investigate potential development synergies.

Mr. Robert Perry, Certified Professional Geologist, V.P. Exploration, Intuitive Exploration Inc., who is a Qualified Person under National Instrument 43-101, has reviewed the technical disclosure in this press release. Mr. Perry has verified the data disclosed in this press release and has relied on summary information available from internal studies prepared by the former operator.


cost and length of time it will take to give an acceptable verified resource seem critical...we can then look feasibility and funding..we will then know if we have "knicked" a world class low cost resource.

[daz] 06/10/2009 18:44

Kooba ...but i could do with just a bit of convincing by the management!! Here here to that.

You think there's got to be more to this than is being said but because the announcement makes no mention of the rationale or strategy for developing the prospect, everyone is completely in the dark.

Perhaps higher grades can be achieved but management don't want to let on because that might get the vendors asking for more than UGY are paying.

[blowitall] 06/10/2009 18:34

maybe tomorrow...he says hopefully. With gold where it is what the .... is going on with this share.

[skidaddle] 06/10/2009 18:07

The market needs convincing as well by the looks of it.

[kooba] 06/10/2009 17:51

i'm sure it's a great deal bringing in a wealth of management skills and some huge potential projects that will significantly enhance shareholder value...but i could do with just a bit of convincing by the management!!

[corrientes] 06/10/2009 17:33

This is the reverse of these new gold shops now springing up.


Psst ! says the vendor company. Want to buy a 9 carot piece of gold for 22 carots. Everyone a winner,except UGY shareholders.

[skidaddle] 06/10/2009 17:25

My problem is I think our management are capable of buying off of a snake oil salesman if the pitch was good enough.

[kooba] 06/10/2009 17:14

re previously planned exploration funding for current year...from aug presentation
Cash balance at year-end FY10 expected at $US 10 million
–
After funding exploration expenditure of approximately US$ 4.7 million
–
Assuming a $US 850 gold price

[thx1138] 06/10/2009 17:14

Some of you could also do with a trip back to charm school.

[sporazene2] 06/10/2009 17:09

Daz, agree 100%

Moneymonster and Robson taken back to school yet again on how to value Gold companies

[daz] 06/10/2009 17:05

Moneymonster

From the net gold revenues, you need to subtract central costs of $3.8m and make an allowance for exploration costs for Arenal Deeps, last year near mine exploration costs were $6.1m, this ought to be less this year but not sure exactly what, I'd guess at least $4m.

The company have also sold some gold into the hedge taken out last year at a much lower price, so you have to adjust your average revenue for that as well.

The overall result is that it still looks quite cheap but nowhere near as cheap as you're suggesting and given the risks with the ore quality at the current mine - they missed their 1st quarter production target by 3.5% - and the uncertainties over funding of the new prospect, I think a big discount is warranted.

For a low quality gold producer, trying to bring a very low grade prospect into production, it doesn't look a bargain to me at any rate.

[kooba] 06/10/2009 16:51

head honcho at fortune valley seems a heavyweight but as far as i can see no mention of future board structure is out there..another thing light on detail in the announcement.



Michael J. Gingles
President and Chief Executive Officer, Director

--------------------------------------------------------------------------------
Co-Founder of Fortune Valley. Previoulsy, Mr. Gingles was Vice President Corporate Development of Placer Dome Americas, from October 2001 though September 2006, and worked for various affiliates of Placer Dome after joining in 1995. During his tenure at Placer Dome, Mr. Gingles was a leading participant in the successful division that restarted Getchell, acquired the Pueblo Viejo project and developed Zaldivar into a world-class copper mine. Mr. Gingles has 21 years experience in exploration, business development, corporate development and finance in the mining industry and has worked in Australia, United Kingdom, Chile and the United States.

re placer dome
Placer Dome Inc. was a large mining company specializing in gold and other precious metals, with corporate headquarters in Vancouver, British Columbia, Canada.

In August 2005, the company had interests in 16 gold mining operations in 7 countries; it had a market capitalization of $6.7 billion USD (on June 30, 2005).[2] For the year 2004, it had sales of $1,888 million, net earnings of $284 million, and cash from operations of $376 million USD.[2]

The company was purchased by Barrick Gold in 2006, and was assimilated into Barrick

[skidaddle] 06/10/2009 16:50

Re-reading the 'proposal'. Everything on our side is substantiated and everything on their side is anything but.

No wonder the Fortune board is unanimous about the 'combination' going through. We are taking all of the risks.

[robson1974] 06/10/2009 16:48

from all of two days ago (seems like a different era)