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Newmont cleans up Ghana holdings
http://www.miningnews.net/storyview.asp?storyid=17981§ionsource=s58
MOY-using fully diluted shares
Need to consider the 1.96M in the money warrants/options to derive fully diluted shares. Warrant/Option details at very bottom.
Bottom Line:
*28,375,264 Fully Diluted Shares
*US$ value of NEM distribution at $37.70 = US$.80 per share
*For each share of NEM, MOY shareholder will recieve .021145 NEM shares
*Warrants/Options proceeds will be C$2.05M
*With option/warrant proceeds, cash value of MOY shares post distribution will be US$.28
Pretty sure this is accurate...
______________________
800,000 total NEM shares to MOY 800,000 800,000
% distribution to MOY shareholders 75% 100%
Share distribution to MOY shareholders 600,000 800,000
26,414,014 MOY shares o/s 26,414,014 26,414,014
Warrant & Option Exercise 1,961,250 1,961,250
Fully Diluted MOY shares o/s 28,375,264 28,375,264
0.021145 NEM shares per MOY share 0.02114518 0.02819357
$37.70 NEM share price $37.70 $37.70
Value of NEM Distribution US$ $0.797 $1.063
Value of NEM Distribution C$ $1.115 $1.487
Post Distribution
Cash In Bank-Can$ $9,000,000
Exercise of Warrants/Options 2,052,625
Total Cash C$ 11,052,625
Cash per Share C$ 0.390
Cash per Share US$ $0.279
Warrants & Options Shares Proceeds C$
Cdn $1.00 February 5, 2004 1,100,000 $1,100,000
Cdn $1.15 September 24, 2004 792,500 $911,375
Cdn $0.80 July 11, 2004 68,750 $41,250
Total 1,961,250 $2,052,625
DITTOS russ, your encouragement got me in on this play for 10% of portfolio. im in at .82$C - my wife is in for 25% of portfolio at .76$C. ill gladly take my 46% profit in NEM shares and im gonna keep the rest - although they dont communicate well with shareholders - at least they deliver the goods - u bought this to make a profit no? well, u did, didn cha? waddya want - talk or profit? there are a lot of companies that give lots of talk but wheres the profit? im gonna stay in with this one. my MOY shares are free after all and they have proven that they can deliver the goods - and with pierre lasonde saying that they are surprised by the goods in ghana, and with MOY having more properties in ghana this is a long term value play imho. if MOY doesnt trade at least at .40 post distribution, i will be disappointed, but waddya want? tickle your portfolio or deliver the goods in the end? been trading well lately by the way.
jon
Well, not to rain on the party, but MOY management leaves much to be desired..., especially its investor relations. To be fair, I admire MOY's prof engineer also taking on the I/R duties..., but I have had enough.
For all new MOY purchases I make, I will likely hedge by shorting NEM or selling Dec NEM calls..., effectively locking in a 10%+ profit, by holding 2-3 months. At this point, this is an arbitrage position, nothing more, and we will have to wait until the NEM deal closes to receive full value on MOY, IMO. I will sell my MOY shares for at least its cash value per share, post-distribtution. Cannot fathom MOY not selling for at least its cash value per share, post distribution. Thus, there is at least a 10%+ arbitrage opportunity left by buying MOY and shorting NEM.
Because of Kiernan's 30%+ shareholdings and age, MOY has acted as anticipated, i.e. cashing out its major shareholder upon terms VERY favorable terms to all shareholders. MOY management has performed well in regard to cashing out all its shareholders, on the same terms.
As for accolades, my thanks go out to bayview for his insights into MOY, he was proven right, as well as to Russ W.
A ... if I have to hold this thing all the way to distribution, I will. IMHO, it's still a better spec then most because this management team is able to return real value to it's investors. You know, I've held this stock for about 4 months and I'm up about 60%. From a risk/reward standpoint I feel this has to be one of my best investments of the year. And to think that they're going to return my initial investment + $0.40 per share?
No complaints from me.
Regards,
Michael...........................
Me too Russ:
Averaged in around 77, have you to thank.
I just think the spinoff, NSR, cash, mgmt value, exp value
& True Grit drilling add up to 1.90. I suppose I would
take the Newmont to sell & keep the rest. Proven mgmt may
well develop another resource.
Had to go to a Estate & Tax planning seminar..., put in a bid on MOY at US$.91 for 2000 shares, and was filled..., last thing I needed was more MOY..., now about 14% of my trading portfolio..., and I have a bit in my IRA...
At NEM = $36.75, MOY distribution alone is worth US$.82
Re-reading press release, MOY anticipates C$9 million in cash after paying transaction costs and legal, this equals US$.24 per share. Still need to add in the US$.20 guesstimate for the 2% NSR, thus FMV of MOY should be US$.44 or C$.61 post distribution... (giving no value to other mining assets).
"Following the distribution to its shareholders, the Company will have working capital of approximately Cdn$9 million after payment of taxes and costs in connection with the transaction."
MOY still getting no respect as an arbitrage play, likely because it is so thinly traded... Will add more if MOY share price is less than NEM distribution plus $.05 (i.e. US$.87), at least that is my current thoughts...
It's not just MOY, the whole sector is taking a hit. I say you can still celebrate because of the special dividend ($1.20)-- once they pay that out MOY has got to be worth at least forty cents -- which would take this deal worth a lot more then what it's presently trading at.
Regards,
Michael..................
Ditto.
Thanks, Russ.
rt
Thanks Russ, it was your posts on SI that put me onto this stock and I managed to accumulate a decent position at an average price of .76.
Nice to see the movement in the last couple of months...
MOY was an averaged size PM position for me. The cursing was mostly about waiting patiently (average cost of .65) for over two years for this day, and then having to endure a long blackout on news, being right, and seeing the stock still barely above my two year earlier (when POG was under $300) entry price. But today it's like the John Candy line in Planes, Trains, and Automobiles after he drove between the two oncoming trucks, "Whew, that was somethin', but now we can laugh about it."
I think this is a case of good news on a bad day-- because there really is no interest in the sector in general today.
Yeah, it's trading now-- and < yawn > it continues to lag @ $1.30
bid 1.28 ask 1.30 last at 1.30 40000 traded so far
resumed trading 12:53, anyone have a real time quote
I don't see any PR on that yet ... but from past experiences I'd expect to see this thing trade within the hour.
< edit >
Issuer Name: Moydow Mines International Inc.
TSX Ticker Symbol: MOY
Resumption Time: 1pm EDT
Russ ... the cursing usually happens when an investor has too big of a position-- my position is just big enough to feel a mild annoyance. Nevertheless, we'll be done with this one today unless they've decide to report something hotter then what they've found NFLD.
Regards,
Michael..................
Excellent news. When will it resume trading?
A ... that's about right-- I have the $1.60 figure dancing in my head after reading the PR ... and who knows I may just keep the darn thing.
VERY positive...
800,000 NEM shares instead of 784,314
600,000 distribution = 75%
That equals US$.84 with NEM @ $37.00, for the NEM share distribution alone, = Can$1.18
Total value MOY via NEM distribution alone (i.e. without royalty, other properties) = Can$1.57
Looks like this is being wrapped up at last. Is it just my imagination, or is MOY picking up about 16,000 extra shares? I calculated 784,314 as the payment not 800,000. BTW, this about as POed as I've ever been during the course of doubling my money. Cursed everytime I looked at quotes on it.
Moydow and Newmont Sign Definitive Agreement for Sale of Ntotoroso
Business Editors
TORONTO--(BUSINESS WIRE)--Aug. 25, 2003--Brian Kiernan, President
and CEO of Moydow Mines International Inc. (the "Company") is pleased
to announce that the Company has executed a definitive agreement with
Newmont Mining Corporation ("Newmont") for the sale of its interest in
the Ntotoroso project in Ghana by way of a Plan of Arrangement under
the provisions of the "Business Corporations Act (Ontario)". Total
consideration has been fixed at: (i) 800,000 Newmont common shares
which had a closing price on the NYSE of $37.54 per share on Friday,
August 22, 2003; (ii) a royalty of 2% on all recovered ounces of gold
and silver produced from Ntotoroso after the first 1.2 million gold
equivalent ounces and (iii) the delivery for cancellation of 1,325,882
common shares of the Company owned by Newmont. The closing of the
transaction is subject to the satisfaction of customary closing
conditions including the receipt of all necessary regulatory
approvals.
The definitive agreement contemplates a closing of the transaction
on or before October 30, 2003 following the Company's Annual and
Special Meeting of Shareholders ("Special Meeting") which has been
called to consider and approve the Plan of Arrangement. The Special
Meeting is expected to take place on or before October 15, 2003. The
Company is also pleased to announce that it intends to distribute to
its shareholders the proceeds from the disposition of 600,000 Newmont
common shares as of a record date to be fixed following its Special
Meeting. At present, this would represent a distribution of
approximately Cdn$1.20 per share, on a non-diluted basis assuming the
share price of Newmont is maintained. Following the distribution to
its shareholders, the Company will have working capital of
approximately Cdn$9 million after payment of taxes and costs in
connection with the transaction. The Company will be well funded to
pursue exploration and mining opportunities.
Commenting on the transaction Mr Kiernan said. " This deal
represents significant value to Moydow and its shareholders. At the
current Newmont share price it is worth about US$30 million, or more
than Cdn$40 million. Following completion Moydow will have 26.4
million shares outstanding. This transaction represents a substantial
premium on our total market capitalisation and does not take into
account any of our other assets in Africa or Canada."
This news release contains "forward-looking startements". Where
the Company expresses or implies an expectation or belief as to future
events or results, such expectation or belief is expressed in good
faith and believed to have a reasonable basis. However,
forward-looking statements are subject to risks, uncertainities and
other factors, which could cause actual results to differ materially
from future results expressed, projected or implied by such
forward-looking statements. Such risks include, but are not limited
to, satisfaction of conditions precedent to the closing of the Newmont
transaction. The Company does not undertake any obligation to release
publicly any revisions to any "forward-looking statement" to reflect
events or circumstances after the date of this news release, or to
reflect the occurrence of unanticipated events, except as may be
required under applicable securities laws.
Moydow Mines is engaged in the acquisition, exploration and
development of precious metals properties worldwide. Exploration
continues on the True Grit project in Newfoundland with more drilling
planned within the next few weeks. Given the strong success in Ghana,
the Company will reactivate exploration at Kanyankaw and Hwidem. The
Hwidem property is adjacent to the Ntotoroso project and less than 3
kilometres from the E-Zone deposit.
Corporate information is available on the Company's website
www.moydow.com. The Company is listed on the Toronto Stock Exchange
under the symbol "MOY".
"Signed"
Brian Kiernan
President & CEO
"It's about time!" Amen...
Just noticed last time MOY was halted on 3/24/03, it did not resume trading until the next day, 3/25/03...
It figures, MOY never in a hurry...
It's about time!
12000 bid at 1.19 and 2100 asked at 1.21
Why dont they just put in a market order? (vbg)
Newmont talking about Ghana again:
Newmont's Murdy bares his soul
Gold miner chief talks exploration, valuation, takeover
By Thom Calandra, CBS.MarketWatch.com
Last Update: 12:02 PM ET Aug. 22, 2003
SAN FRANCISCO (CBS.MW) - A year ago, Newmont Mining CEO Wayne W. Murdy was sitting at a luncheon table, listening to his field geologists discuss gold prospects in Turkey.
THE CALANDRA REPORT
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The guys in the field, against a backdrop of site maps and geological surveys, were ebullient about the country, where Newmont (NEM: news, chart, profile), the world's largest gold miner, had inherited the Ovacik Gold Mine from its merger with Australia's Normandy Mines.
Some of the engineers were even reporting they were making steady progress with the tribal councils in that politically volatile country, where local officials often hold sway over a multinational company's strategic goals, even if they are as simple as extending an open-mine pit to increase production.
"If you don't have land you're nothing but a rag picker," Jeff Huspeni, a vice president of mineral district exploration, was saying at the time. After years of indifference and high unemployment levels, village leaders were inviting mining executives to their ritual tea gatherings.
Murdy interrupted the presentation, taking place at the miner's headquarters city of Denver. "Very good," Murdy said, eyeing analysts and newsletter editors at the luncheon, all of them with their pens at the ready, "and our exploration team knows we make financing decisions based on economic and geological reasons."
A year later, Murdy, who left the oil business more than a decade ago to become Newmont's chief financial officer, is saying the same thing. If what Murdy told me this week bears out, shareholders are likely to discover the company's 30 percent-plus gain thus far this year on the NYSE and Toronto stock exchanges is just the tip of the drill bit.
Newmont's shares are outpacing gains made by other 2 million-ounce-plus gold producers -- year to date and for the past 12 months. Wall Street banks, and individual investors, are coming around to the belief that Newmont will boost proven and probable reserves, the basis for what folks are willing to pay for a gold mining stock, by large margins in coming months and years.
"We look at everything out there and if we see something that fits with our strategic goals, we do it," says Murdy, who has an oil man's obsession with replacing depleted reserves. "With exploration, if you do a good job of funding it, and have good people who understand their risks and a good budget, you can have success."
Murdy, in a wide-ranging interview, says he has high hopes for at least two of the company's five major production areas: Nevada and Ghana. Nevada, of course, has been a lucrative source of gold for Newmont and others, thanks in large part to the Carlin Trend. Newmont began mining in and around the town of Carlin, Nev., in 1965. Reserves in Nevada are estimated at 30 million ounces.
"In 1992 when I came here, our production was about 1.6 million ounces, and at that point in time we had 20 million ounces of reserve in Nevada," says Murdy, who hailed from Getty Oil and Apache Corp. at the time. "Well, we had prospects and lots of debate at the company, and people saying if we get to much higher levels, how were we going to replace the ounces. Now, we are producing more than 7 million ounces a year and we are replacing those reserves."
The Wall Street crowd, and its counterpart in Toronto, are gaga about Newmont, which at $14 billion or so of market capitalization is the world's largest gold-mining equity. The company's shares were the third best gainer in the entire S&P 500 Index last year, when Newmont logged its first yearly profit in three calendar years.
"Newmont already is the stock that everyone wants to own," says James Turk of Freemarket Gold & Money Report in New Hampshire. Turk, a former commodities financier, is considered one of the sharpest mining and bullion analysts away from Wall Street.
"But we haven't seen anything yet," says Turk about Newmont's $36 shares. "If gold trades in the $400s in September and October as I expect, then I think it is reasonable to expect Newmont to trade at $55 or higher."
Turk says Newmont managed to pull off a tricky, $4 billion merger with Normany and Canada's Franco-Nevada Mining last year, combining management teams and steadily reducing its inherited hedge book of forward sales. Coming with the merger was the presence of exploration wizard and gold fanatic Pierre Lassonde, a nattily dressed executive who is legendary in the bullion world for rolling up his shirt sleeves and successfully pinpointing exploration prospects.
Lassonde raised eyebrows this month when he forecast sharply higher gold prices at an Australia speech, in part because of Middle East investors who see bullion as a logical alternative to owning dollars, euros and yen. A gold dinar, a new currency, also will boost demand for the metal, he said.
Lassonde, Newmont's president, jets around the globe, looking for ways to increase gold grades, lower operating costs and identify properties and companies that could increase Newmont's 83 million or so of reserves.
"Pierre has a term," says Murdy, who spoke to me from Denver. "It's 'grow or go.' I have one of my own, too: all ounces are not created equal."
Murdy says he is convinced both Nevada and Ghana will have investors raising their eyebrows before long. Last year, Newmont achieved a little better than 1-to-1 reserve replacement. Could Newmont exceed even that healthy ratio?
Says Murdy (and I quote extensively here): "I've always been a little leary of west Africa but am slowly becoming comfortable, with Ghana certainly. In Peru from a geologic standpoint I like it, and I concede we have done exploration in Ecuador and not been successful. You can only be in so many places."
Murdy continues, "I like northern Nevada and we will be there several more generations. In Peru we have 34 million ounces gross and we have 54 percent of that. We'll see where we end up in Ghana with total reserves, but we are very excited about that. In Australia we are very excited, too, but the deposits are spread out."
On the notion of Wall Street correctly gauging what a gold mining stock should be worth, Murdy says, "The Street does not really know how to evaluate that 525-square miles we control down in Peru, for instance, and how much is it worth. I have been in the natural resource business my whole life and you can never have enough land, especially when our terrific geologists come back from their trips. You are going to have some very pleasant surprises in northern Nevada."
Murdy, by the way, acknowledges that Lassonde is hunting for takeover candidates - everyone in the gold business is these days as miners suffer what the pros call "reserve rot," or depletion. Not helping the building of reserves: environmental permitting, geopolitical challenges and lower exploration budgets. ("Remember, seven years ago, the entire gold mining industry's exploration budget was something like $3 billion, and now it's $1 billion or so," he says.)
Still, Murdy says he would prefer to grow reserves "via the bit." That's drill bit, for you ordinary folks out there. He says, "If I am a Newmont and I am funding something with $75 million of exploration money a year and $30 million of development money, we get a lot of shots, and our team understands that. Newmont in the past 10 years has had only one year where it has not replaced reserves with the drill bit."
Not everyone is convinced Newmont won't go knocking on doors.
Turk, the mining analyst, says Newmont will replace reserves "from three sources: using its stock to make new acquisitions, raising reserves from lower grades that will become economic as the gold price rises, and making new discoveries on its vast property portfolio, particularly in Nevada and Australia."
One well-placed analyst told me Newmont is regularly "kicking the tires," at companies in Canada, Africa and even the good old USA.
As for exploration, the company had 83 drill rigs badgering the earth in this year's second quarter. These days, with gold mining shares at six-year highs and many small companies doubling and tripling their stock-market values in the space of three months, Newmont's global efforts make the company's shares nearly as attractive as a pure-play exploration company based in Vancouver, Canada, says Turk.
Murdy says Newmont will continue to reduce the amount of gold it sells forward in an increasingly popular practice known as de-hedging. Such de-hedging by companies that once hedged their production via the use of derivatives and forward sales contributes as much as 20 percent of all gold purchases worldwide.
I'll have more on Newmont -- and potential takeover candidates in the mining industry in general -- in subscription service The Calandra Report, which will next be distributed to paying subscribers Sept. 3 or Sept. 4.
(Will he plug MOYDOW I wonder??)
http://www.marketwatch.com/news/yhoo/story.asp?source=blq/yhoo&siteid=yhoo&dist=yhoo&gui...
Great charts. Thanks for posting.
NEM vs. MOY charts (3 month/6month)
Charts pretty much in parity, MOY has consistently retained around a 30% discount. Current NEM arbitrage value* = $1.61 vs. $1.12 = 30.67% discount... (*not including royalty, cash on hand and other gold properties, however, does include MOY's effective PR campaign)
3 month
6 month
MOY is lagging Newmont here a bit. When are we going to blow through 1.20?
Humble , I'll say, This guy is damn good. I have'nt minded holding Moydow for two years. My main criteria for these juniors is not to fall below my purchase price. These will turn out to be the best LEAP calls with no expiration date you could have bought. All I can hope is that I'm still alive and surfing when things break lose.
"H" ... I'm thinking "A" was just being humble when he was creating what I thought was a pretty good break-down and buy recommendation on a stock we've all been holding for so long.
"M"
I would take exception to the fact that this action was against your better judgement. All of your recent posts have been the most detailed and rationaly considered that I read here. I can only hope that you see fit to continue to share your veiwpoint on these mining companies.
Against my better judgement, added 15% more MOY shares at US$.76
At NEM $38.80, this values MOY at NEM distribution alone at C$1.59 as follows:
$20,000,000 NEM consideration 20,000,000
$25.50 share exchange rate $25.50
784,314 total NEM shares to MOY *** 784,314
distribution to MOY shareholders 100%
549,020 share distribution to MOY shareholders 784,314
26,414,014 MOY shares o/s 26,414,014
NEM shares per MOY share 0.02969309
$38.80 NEM share price $38.80
$0.67 arbitrage value of MOY share in US$ $1.1521
Can/US$ exchange $0.7249
Arbitrage Value in Can$ $1.5893
MOY consistently retaining a 33% discount to NEM share price it appears... i.e. C$1.06 vs. C$1.59 = 33% discount
Here is link for NEM to MOY comparison:
http://finance.yahoo.com/q?d=c&c=nem&k=c1&t=6m&s=moy.to&a=v&p=s&l=on&....
Since above link shows parity, 33% discount has been consistent.
Newmont Mining Eyes Gold Boost on Asian Currency Hike
http://sg.biz.yahoo.com/030810/16/3da6e.html
"Mr Lassonde also said that he expected Newmont's operations in Ghana to become one of the company's core assets over the next three or four years."
let me revise and extend my remarks:
This deal will not get finalized until the 4Q 2003. By finalized, I mean MOY shareholders actually receiving the NEM shares. No reason for NEM to dilute shares and thus 3Q EPS results if they can get away with it, thus the shares will not be issued until the 4Q.
NEM could announce the deal in Sept at the Denver Gold Show and still likely delay the distribution until the 4Q 2003.
On the otherhand issuing MOY 784,314 shares when NEM has 402M shares outstanding is not that dilutive...
I think sooner than year end. The deal will be signed before the Denver gold show in September.
Although the finer points of the Ghanaian growth strategy would be unveiled at the Denver Gold Show in September, Lassonde said initial work suggested $500 million would be spent on developing two mines, which together would produce 700,000 ounces.
"We'll unveil it at the Denver Gold Show. We'll give a clear idea of where we're going with it," said Lassonde.
Anyone care to speculate on shortly be available...:
"Further details will shortly be available on the company website www.moydow.com "
Likely, this is details on the True Grit drilling, but for MOY shortly may well mean a few weeks from now...
http://www.moydow.com/news.html
Nonetheless, MOY does run a tight ship as far as expenses, e.g. their Prof Engineer and Qualified Person is also head of investor relations...
"Results were checked and verified by Michael Power P.Eng., Qualified Person, in accordance with National Instrument 43-101. Mr. Power is also a director of Moydow...
FOR FURTHER INFORMATION PLEASE CONTACT:
Moydow Mines International Inc.
Michael Power"
FWIW, got a partial fill today... At NEM = $37, this values MOY at US$1.10 for the NEM share distribution alone...
___________
Also FWIW, no I do not think the NEM deal will be changed. NEM has historically been slow to finalize their deals, but they have always closed them/honored their commitments... NEM will have these ounces on their balance sheet by year end IMO.
Somebody actually got some at .90 this morning. My bid was at .88 but it didnt get hit.
Once the terms of the deal are set like they have been with this one, what are the chances that those terms change before the deal is signed?
Are they renegotiating? Is that why its taking so long?
http://www.globeinvestor.com/servlet/WireFeedRedirect?cf=GlobeInvestor/config&vg=BigAdVariableGe...
Please note:
"Details of the sale are currently being finalized and it is expected that an announcement will be made in the coming weeks.
Further details will shortly be available on the company website www.moydow.com "
This article mentions Ntotoroso in the last paragraph.
Moydow Mines International is engaged in the acquisition, exploration and development of gold properties. Moydow's most advanced projects are in Ghana, Africa, where its Ntotoroso Property has reserves currently calculated at over 1.1 million ounces of gold and has already been the subject of a feasibility study. In March 2003 Moydow announced that it had reached agreement with Newmont Mining of Denver to sell Moydow's interest in Ntotoroso to Newmont. Details of the sale are currently being finalized and it is expected that an announcement will be made in the coming weeks.
http://www.globeinvestor.com/servlet/WireFeedRedirect?cf=GlobeInvestor/config&vg=BigAdVariableGe....
True Grit news:
CORNERSTONE CAPITAL RESOURCES INC. NEWS RELEASE
NEWS RELEASE NO. 03-25
Cornerstone and Moydow Announce
True Grit Drilling Results and Additional Staking
August 7, 2003
Mount Pearl, Newfoundland & Labrador: Cornerstone Capital Resources Inc. (TSXV -- CGP) and joint venture partner Moydow Mines International Inc. (TSE - MOY) are pleased to announce the results from the recently completed first phase of drilling on the True Grit Gold Project in south-central Newfoundland.
This first phase of drilling comprised a 1,251-meter, 22 hole diamond drilling program. All drill holes except TG3 and TG4 were drilled to a depth of approximately 50m at azimuths ranging 295-300 degrees and inclined at -45 degrees. TG3 and TG4 were drilled vertically to depths of 103 and 121.3 m, respectively.
The drilling was designed to test a broad zone of low-grade gold mineralization hosted within a sequence of thinly bedded pelites and lesser phyllites and characterized by finely disseminated arsenopyrite-pyrrhotite-pyrite mineralization and numerous narrow quartz veinlets and stringers. Previous drilling in two diamond drillholes (TG1 and TG2) had returned 0.48 g/t Au over 42.7 m (see Cornerstone News Release 02-12). The zone occurs within a 2600 m by 800 m coincident gold, arsenic and antimony soil anomaly. High-grade arsenopyrite-bearing quartz veins located approximately 1.2 km to the northwest of this low-grade zone assayed 15.9 g/t Au over 1.0 m and 18.0 g/t Au over 0.5 m from saw-cut channel samples.
The 2003 drilling program has confirmed the results obtained in holes TG1 and TG2, and has outlined similar mineralization along two sections located approximately 200 m and 350 m to the north-northwest. The best intersection was obtained in hole TG4, which returned 0.6 g/t Au over 117 m including a 26 m wide section grading 0.83 g/t Au. Intersections ranging from 16 to 46 m wide with grades of 0.45 to 0.75 g/t Au were encountered in holes TG3, 11, 12, 22 and 23. The full drilling results are summarized in Table 1. Gold grades across the mineralized sections are very consistent with the highest individual assay reported being 1.5 g/t Au. The true width and attitude of the mineralization has have not been determined at this time.
Maps and figures showing drillhole locations and cross-sections are posted on Cornerstone's website at www.cornerstoneresources.com
New Valley Drilling of Springdale, Newfoundland conducted the drilling. All core samples were saw-cut; one half was submitted for assay to Eastern Analytical of Springdale, Newfoundland and the other half was retained for permanent record. All field work was supervised by Moydow personnel. Michael Power, P.Eng. of Moydow Mines International, was the Qualified Person, as per National Instrument 43-101, for the True Grit phase one drilling program.
Cornerstone and Moydow personnel are currently reviewing the data with a view to further drilling.
The True Grit property, originally comprising 356 claims, has been enlarged to 535 claims covering 134 sq. km. by way of additional claim staking by Cornerstone and Moydow.
Cornerstone and Moydow wish to acknowledge funding support from the Newfoundland & Labrador Department of Mines & Energy, under the Junior Company Exploration Assistance Program.
The agreement with Moydow Mines on the True Grit Property is one of eight joint venture agreements Cornerstone now has in place, including seven gold projects and one VMS project.
Fig 1 DDH Location
Fig 2
Fig 3
Fig 4
Fig 5
http://www.crigold.com/aug0703.htm
Excellent. The article makes it sound like the deal is closed. Of course it's not.
Here are the relevant paragraphs:
Lassonde was bullish on the prospects for Newmont’s growth in West Africa, however. He said the Ghanaian assets acquired along with the Normandy takeover had surpassed all expectations. “We put very little value on Ghana and now it is turning out to be the best asset we bought with Normandy,” said Lassonde. He said Ghana would be one of the group’s core operating districts.
Although the finer points of the Ghanaian growth strategy would be unveiled at the Denver Gold Show in September, Lassonde said initial work suggested $500 million would be spent on developing two mines, which together would produce 700,000 ounces.
“We’ll unveil it at the Denver Gold Show. We’ll give a clear idea of where we’re going with it,” said Lassonde.
In April this year Newmont bought the half of the Ntotoroso gold property in Ghana that it did not already own, from Canadian-listed Moydow Mining. Aside from the $20 million in cash for the stake, Moydow would also receive a 2% net smelter royalty on all gold and silver production from the property greater than the defined reserve of 1.2 million ounces when the deal was done.
Newmont also inherited the neighbouring Ahafo and Akyem properties in Ghana from Normandy, which had completed a feasibility study in 2001 at the Ahafo-Ntotoroso prospect. Newmont has upgraded the reserves at the site to 3.3 million ounces. Lassonde said the drilling results in the area had been “outstanding”.
“Normandy wanted to sell and today, it is going to be a flagship asset,” said Lassonde.
No Newmont bid for Ashanti – Lassonde
http://www.mips1.net/mgdd03.nsf/Current/80256D7800445A6642256D7800485EA2?OpenDocument
Lassonde discusses Ntotoroso.
Thanks...
Recalling my prior post(s), NEM mangagement must have this deal done by Dec 31 to get rewarded by their compensation plan which is based primarily on reserve replacements/NAV as of 12/31 each year... So, the MOY deal must be done by Oct 2003, at the latest??, to fall within the NEM capex and 2004 budgeting plans, and also some time must be allowed for MOY shareholder vote...
Newmont seeds growth expectations
By: Tim Wood
Posted: 2003/07/31 Thu 20:00 EDT / © Mineweb 1997-2003
NEW YORK -- Newmont [NEM] has a persistent, anonymous critic on Mineweb. Just yesterday, "Nevada Jim" reappeared to lambaste Newmont for lacking an exploration discovery to match Placer Dome's [PDG] Cortez Hills. He may soon have reason to stop complaining.
Newmont gave its strongest indication yet that a project pipeline worthy of a senior gold producer will be unveiled before the end of the year.
The best signal were several statements alluding not only to reserve replacement, but addition. Newmont surprised the market last year by replacing the gold reserves it had mined out - a mammoth 9 million ounces. Not all of those were high quality ounces, but they were much more than Newmont was ever expected to accomplish. The burden is not as great this year, but the capacity to find 7 million new reserve ounces and some for the future, is no mean feat.
Wayne Murdy, chairman and chief executive, said in a statement: "Our exploration team had another successful quarter and we expect to increase reserves after depletion in 2003."
This was reinforced during an investor conference call when Newmont president, Pierre Lassonde, told participants: "In Nevada, Ghana and Peru our near-mine exploration teams are doing a fantastic job.
"In September we will announce our 5-year plan and will give you a much more detailed update on where we are. I can say that we are more than confident that not only will we replace reserves, but Newmont has started on the path of growing reserves once more."
Newmont revealed a preliminary project pipeline in October 2002 during the Denver Gold Forum, which Mineweb will again be covering this year, but went silent on it after professional investors criticized the lack of detail.
At the time, Barrick [ABX] had impressed the market with news on four projects - Alto Chicama, Cowal, Veladero and Pascua-Lama. After investing $2.1 billion, Barrick expects to be mining 2.1 million ounces a year from the projects at a weighted average cash cost of $125 per ounce. The projects have a combined 29.6 million ounces of potential reserves although Pascua-Lama's 16.9 million ounces are generally excluded by analysts until there is certainty that it is economic.
Newmont's approved projects, the Gold Quarry South Layback and Leeville Underground, are on schedule and without budget according to the latest report. Pending approval - and possible wrangling with joint venture partners in some cases - are Boddington (Australia), Akim and Yamfo-Sefwi (Ghana), Martabe (Indonesia), Corimayo and Cerro Quilish (Peru), Phoenix and Emigrant Sprints (Nevada). The Batu Hijau mine in Indonesia is also slated for a large and rich underground development.
The best prospect remains Ghana where sources say drilling has progressed well and Newmont has made good progress on permitting issues. The Boddington expansion still has a lot of proving to undergo before it can be approved, but it has a feasibility study in place and could likely move faster with restructured ownership.
Newmont's 2Q Net Rose 32%, Buoyed By Higher Gold Prices
Thursday July 31, 12:44 pm ET
DENVER -- Newmont Mining Corp.'s second-quarter net income jumped 32%, helped by higher gold prices.
The mining company on Thursday reported net income for the period rose to $ 90.8 million, or 22 cents a share, from $69 million, or 17 cents a share, a year earlier.
Analysts expected earnings of 18 cents a share, according to Thomson First Call (News - Websites).
The latest quarter included charges and gains that had the net effect of increasing net by $18.9 million. In the year-earlier quarter, items boosted net by $40.6 million.
Revenue rose 16% to $747.2 million from $643.7 million, as the average realized gold price rose 12% to $353 an ounce from $314 an ounce a year earlier. Equity gold sales slipped to 1.8 million ounces from 1.9 million ounces last year, reflecting the company's sale of an interest in the TVX Newmont Americas joint venture in January and the exchange of its 45.7% interest in Echo Bay for a 13.8% interest in Kinross Gold.
Newmont raised its 2003 equity gold sales projection to 7.2 million to 7.4 million ounces, from an earlier outlook of between 7.1 million and 7.3 million ounces. The company now expects total cash costs of $198 to $208 an ounce, up from earlier estimates of $195 to $200 an ounce.
-Nora Devine; Dow Jones Newswires; 201-938-5400
(Amy Reilly contributed to this report.)
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