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Gowest Gold Ltd V.GWA Article Financial Post. Still table pounder. Link back for recent info and fairly complete DD page summary.
My take is Gowest has arrived. They are trying to tell the market, We are legit, We have our gold and We are ready to move forward. IMO, with their house in order, they are not worried whether they get financing & have finance options now. They are looking for the most shareholder friendly deal. $50 - 60 million to get 100 - 150k high grade ounces/yr is going to produce some astronomical IRR numbers. 3rd party contracting by a major is going to speed up the process and greatly derisk the project. They will probably skip the PEA and go right to feasibility. The writing is on the wall here and the shares are cheap. Gold in the ground going for $9 MC/oz. Thats insane for a near term producer in Timmins. Gowest Will be the next Timmins mine!
http://business.financialpost.com/2012/11/27/gowest-plans-to-contract-out-gold-processing-in-timmins/
Gowest Gold Ltd V.GWA announced November 20 an updated resource estimate for the Frankfield East Gold Deposit at its North Timmins Gold Project located 42 kilometres northeast of Timmins, Ontario. Indicated resources are 6 million tonnes grading 4.88 grams per tonne gold for 945,600 ounces, and inferred resources are 3.7 million tonnes grading 4.22 g/t for 536,800 ounces.
The indicated resource, an increase of 170% over the previous estimate, is determined from surface to a maximum depth of 400 metres and along a strike of 950 metres, while the inferred resource is determined from between 400 metres and 1,000 metres.
As announced November 12, Gowest has entered into a memorandum of understanding with an existing third-party processor in the Timmins area to process ore from Frankfield East for a fee. Gold concentrate produced thereby will be sold through a separate offtake agreement.
President/CEO Greg Romain was interviewed by Kevin Michael Grace November 21.
RW: Tell me about the big increase in your Frankfield East resource and what it means to your company.
GR: The resource gives us confidence over the 400 metres because we did tight drilling. That helps us in our short-term plans, which is to use a third-party processing facility in Timmins.
RW: Your last PEA was a year ago this month?
GR: It was a year ago, and it was 1.2 million ounces with 350,000 ounces of indicated. So we’ve more than tripled that. But we’ve used a different technique; we used 3-D modeling as opposed to nearest neighbor, and so it gives more confidence. We focused most of our drilling above 400 metres and along strike.
RW: This increase in your resource means the old PEA has been totally superseded, right?
GR: Prior to September, our view that we would have to build our own facility, so we thought we’ll update the resource, update the ore sorting and then put out an updated PEA in 1Q. But because we’re pushing on the third-party processing, we’re looking at entering into a binding agreement sometime in 1Q with the third party, and once we do that we’ll go into a feasibility study as opposed to another PEA.
RW: Is this third-party processing an innovative way to get around financing?
GR: It reduces your capital; it reduces your risk; and it generates cashflow sooner because if we built our own facility, we’d be looking at between four to five years to production, and so we’re saving almost 24 months and a lot of cash. To build a standalone we were talking about something like $170 million on initial capital, whereas here we’re talking $60 million. It’s probably going to be less than that, but we’re sticking with a conservative estimate.
RW: So production will begin when?
GR: We’re looking at 1Q 2015.
RW: Which permits will you need to allow the third-party processing?
GR: We completed our baseline this past summer, and so we’re in a position to apply for a mining permit, both bulk mining and/or full mining. But we’ll start off with both permits at the same time.
RW: How big is the North Timmins Gold Project?
GR: The land position itself is about 93 square kilometres.
RW: How much of that has been explored?
GR: Very little. There are a number of targets there, and it’s one of the areas of Timmins that was underexplored because of the overburden and swamp. It wasn’t until early 2000 that the initial half million ounce resource at Frankfield East was discovered. It’s one of the virgin territories of the Timmins camp, and so there is a lot of upside.
RW: What are your drilling plans?
GR: Some definition drilling at Frankfield around the mine development area; that’s where we’ll spend most of our money. Then we’ll use a little bit to explore just outside of Frankfield East. Then there’s a little bit of money that will have to be spent on the underground to make sure we keep it in good standing.
RW: How much cash do you have? What’s your burn rate?
“If we built our own facility, we’d be looking at between four to five years to production, and so we’re saving almost 24 months and a lot of cash. To build a standalone, we were talking about something like $170 million on initial capital, whereas here we’re talking $60 million”—Greg Romain
GR: We’re just under a million, and our burn rate is about $70,000, but that depends on the drilling. We didn’t do any drilling from about May, and we’re just going to start drilling again because we have flowthrough capital we need to spend. We’ll obviously be doing a raise to acquire more capital to continue the project. We’re looking at a number of different options including adding a royalty onto the project as well, so it’s less dilutive.
RW: Companies like yours with small market caps have had it quite bad in the last couple of years. Explain the challenges of advancing you gold project under these conditions.
GR: It’s extremely difficult, but our belief is that you stick to your plan and continue to deliver on it, especially with deposits that are high grade. Gowest is averaging almost 4.6 grams, versus the average grade of undeveloped deposits, which is 0.66 g/t. We’re pretty frugal with our money, and we try to be wise. There are a lot of targets I’d like to drill, but capital being expensive we’re raising just enough to keep us moving forward and delivering on critical elements.
That’s why we believe if we can work out terms with the third-party processor in Timmins, we’ll be that much better further ahead. And it should be noted that the party in Timmins is a willing participant because they have to reduce their milling costs as they’re only using half capacity now. The funding we’re going to do now will take us into 1Q 2013 (let’s say mid to late spring) and by then we should have a definitive third-party agreement signed. We can then go into feasibility and EPCM (engineering procurement), and that will take on a different form of financing, whether it’s goldstreaming or debt financing, so we won’t have to tap the capital market as much.
RW: When will the identity of the third party be revealed publicly?
GR: Once we’ve come to a binding agreement.
RW: How do you rate Gowest’s long-term prospects?
GR: I think they’re very good. Since September, everybody is pretty excited that we can get this into production for $60 million. There are some minor upgrades that have to be done. On the mining side, we’re looking at contract mining and contract crushing. So it’s not like we have to hire reams of people and do it all from scratch. I can see the light at the end of the tunnel now.
At press time, Gowest had 131.9 million shares trading at $0.115 for a market cap of $15.2 milli
BRD.TO Brigus Dr Air I like Brigus as well and keep a good eye on them for the turn around as they experienced opps problems early this year. They hired new technical personnel to get back on track. They have been guiding since the beginning of the year to get cash costs to $700 and run rate to 100k by EOY.
One thing you have to remember not to forget with Brigus. They have a contract with Sandstrom to sell 12% of their current and FUTURE Black Fox gold back for $500/oz. A triple wammy in those last 10 words. Then Brigus just bought back 4% of the stream for $24 million and has to pay back the loan.
Thats a big hit, especially since their all in costs are surly over $1000/oz. So they have to take 8% of their production and sell it to Sandstrom for $500/oz. Roughly speaking without getting technical, thats like loosing the earnings of 20% of their total production and thats not even factoring the 24.4M loan.
On the positive, additional exploration and development should allow for the expansion from 2000tpd to 3500tpd in a couple years.
I like them better at .80 - .90
Checkmate28
GWA.V Dr Air I read the article on Central Rand Gold's use of the technology and noticed they spoke of the large amount of dilution and being down deeper in an uneconomic previously nearly mined out resource. They are able to feed diluted ore at a ratio of 3:1 and getting double the grades. Gowests new focus is on the 1 million near surface indicated ounces that can be ramped down without the shaft. They can put in a shaft later when they tighten up the spacing below the 400 meters to move the ounces to M&I and have some cash flow.
Gowest Geology is very consistant.
Gold mineralization in the Frankfield Deposit occurs primarily within a fractured, sulphidized and brecciated hydrothermal alteration horizon at or near the contact with steeply north dipping (85 deg.) footwall ultramafic rocks to the south and hanging wall basaltic flow rocks to the north. This portion of the deposit is identified as the Main Zone. The mineralization is not confined to narrow vein-like structures (as can be seen in many other deposits in the area) but rather in a more massive/tabular structure than is consistently present throughout the mineralized horizon. This characteristic is shared by the major past gold producers in the Porcupine camp including Hollinger, McIntryre and present producer Goldcorp at their Dome and Hoyle Pond deposits
Read more at http://www.stockhouse.com/bullboards/messagedetail.aspx?s=GWA&t=LIST&m=31735095&l=0&pd=1&r=0#4UwwSqKJDuR6pPJi.99
Checkmate28
Dr Air GWA.v I know your a numbers guy and you like the numbers first. Having Everything lined up in order certainly reduces the risk. Ill say no doubt, that most all the companies you mention are stronger and with less risk than Gowest. To keep things in perspective Gowest has been a $12 million MC company my last few posts.
IMO being right on the company with more risk can have a great payoff and a percent of my portfolio is allotted to that. Gowest is my best candidate for highest risk reward ratio. There is no doubt that the lack of $ are the main risk right now.
I spend a lot of time de-risking Gowest for myself. They are low on cash. They should have some Canadian flow thru $ left as well, that has to be spent on explor. I agree, if cash was lined up, PPS would move hard. It will cost more to enter then, and most will pay more. You've read my earlier posts here on XStrada I assume. Its clear to me, that Xstrada is the company on the MOI that will process the GOwest ore. I'll have to stretch this one - Im fairly sure that the small moneys Gowest needs to keep going and get started can be arraigned with the deep pockets of Xstrada. They are interested in a resource large enough and close enough to fill their production equipment to maximum capacity. Gowest fits the bill. If you run the total tonnes capacity of Xstrada processing, divide by 2 for their excess capacity, there is enough to push through the tonnes needed to get 150k oz/yr of Gowest gold. There is also Communitas that I believe will be a key factor. Xstrada keeping those 600+ direct and 1400 total jobs plus the new ones created by Gowest local, will be important for the city of Timmins. They should all be on board and benefit from pushing this forward.
Also consider the fact, that most of the last financing was taken down by the insiders and while Darren has not been active buying on the open market last 6 mths, he was very active buying for the last 2 years. He is the man in charge of Gowest Technical team and technical consultant to other companies. They have some restrictions as to timing. Those are people that have faith in the project putting up their own hard $ Gowest is blessed to have a whole technical team that many companies cannot get.
Thanks for the real time info on Commadus Ultrasort. This latest testing in Germany was the second test and on the Gowest ore. They did a preliminary test about a year ago. Its worked very well.
Im presenting value and a great risk reward ratio in a market that wont reward any, but the best stories with the best value. Sure Gowest has to prove a few things, but they are filling in the holes fairly fast. The price of entry 5 - 10 days ago was .08 for the shrud buyer. Today .12 I . added .115 AM.
Dr Air Just remember I know you know most of what Im posting but many haven't seen it.
Checkmate28
GOWEST Gold Still Table pounder Todays news Huge in the scope of things with the MOI that is signed. I added just now. This outlines near 1 million ounces INDICATED near surface, only down to 400 meters and open on strike. This is 4.88 grams per tonne with a 3 gram cutoff all indicated and near surface. Im still digesting this but the writing is on the wall here.
The economics from the release
The Frankfield East deposit modeling utilizes assay data from 292 diamond drill holes, including 60 holes for 20,319 metres that had not been included in the previous estimate. In line with the Company's recently announced plans to accelerate the timetable for putting the Frankfield East deposit into production, (see Gowest news dated Nov. 12, 2012), a more detailed method was used for this latest resource estimate resulting in a block model more suitable for mine planning. The lower overall average resource grades are the result of the use of the 3D block modelling techniques. However, consistent with the previous resource estimates, the majority of the resource ounces in the project are contained in blocks greater than a 4 g/t Au cut-off with an average grade in excess of 6 g/t Au (see Table 2).
Noted Kevin Montgomery, Gowest Exploration Manager, "We have now delineated the mineralized structures to below 1000m and demonstrated good continuity of mineralisation within each structure. This is especially true for the upper 400m of the deposit, which is key to allowing us to advance our mine design. Immediate drilling will focus on tighter infill drilling for underground mine development."
The Frankfield East mineralization is contained within a series of parallel zones that extend into the host rock away from the main zone located adjacent to the geological contact structure. Approximately half of the indicated resource ounces of gold are presently contained within the main zone area ("MZ1-2"). The remaining indicated ounces are located in the other three parallel structures ("HWZ1-3").
The presence of multiple mineralized structures is significant in that it dramatically increases the density of gold ounces per vertical meter, which allows for lower overall mining costs as more gold can be mined for the same mine development costs (e.g. mine shaft, ramp, etc.). While the focus during the last drill campaign was to increase confidence in the resources above 400m of depth, the Company believes future drilling below 400m has the potential to convert more of the deep mineral potential for the deposit into additional gold resource ounces.
Greg Romain, President and CEO of Gowest commented, "We are pleased to be able to report this sharp increase in the indicated resource ounces as we focus our efforts on accelerating the project towards production. The next stage of development will utilize this information to complete detailed mine planning studies as part of our ongoing engineering work. We are confident that accelerating our plans to bring the Frankfield East deposit into production in about 30 months is the best course for us and for our investors. We look forward to providing further updates as we move into 2013."
Table 2 below shows the variations in tonnes, gold grade and contained ounces in the mineral resource estimate summarized at various cut off grades between 3.00 g/t Au and 4.50 g/t Au. The figures in the table demonstrate the robust nature of the Frankfield East deposit and the potential to respond to fluctuations in gold prices by adjusting the cut-off grade to change the average gold grade of the deposit with relatively limited impact on the overall deposit resources. The base case resource estimate (3 g/t Au cut-off) was selected as a conservative starting point based on mining techniques for similar deposits in the Timmins camp and engineering information contained in the Company's previously released Preliminary Economic Assessment.
http://www.marketwire.com/press-release/gowest-increases-indicated-gold-resources-170-945600-oz-frankfield-east-north-timmins-tsx-venture-gwa-1728403.htm
GORO steelpiston you called it. Filled the gap and now bounced
$3 share
GWA.V GowestGold Humm! Table Pounder I said it. Even in todays market. 50%IRR at $1200 gold. Whats going to happen if they pull it off. I think they are right now.
10 Pages as to why GWA.v is one of the best shots right now for a large bump in market cap. These guys dont talk unless something is happening. Something is happening and I think they can do it without giving up the farm.
http://www.gowestgold.com/downloads/GWA%20Corp.%20Presentation%20November%202012.pdf
HOW DOES GOWEST’S FRANKFIELD EAST DEPOSIT COMPARE?
? Natural Resource Holdings Identified 439 deposits with +1 MILLION
OUNCES OF GOLD* (“Global Gold Mines & Deposits 2012 Rankings”) –
Their findings:
? Average Grade* (undeveloped deposits) 0.66 g/t Gold
? Average Grade* (producing mines) 1.06 g/t Gold
? Average Grade* (total) 0.86 g/t Gold
? GoWest FRANKFIELD: +6.0 g/t GOLD
? GoWest FRANKFIELD: Comparable to 24th
of top 50 undeveloped gold deposits by grade
? FRANKFIELD: Comparable to 3rd
(of 25) highest grade deposits in North America
To keep things in perspective, I am talking about a $14 million market company. Grade will conquer many of the problems that other companies face.
Checkmate28
EXN.v Insider spent $100,000 after mine reopening due to blockade. EXN has bounce written all over it but increased value doesn't get respect today anywhere.
On Nov 15, 2012 Peter Crossgrove bought 230,000 EXN shares @ $0.421 = $96,830
http://www.canadianinsider.com/node/7?menu_tickersearch=exn
TORONTO, Nov. 15, 2012 /CNW/ - Excellon Resources Inc. (TSX:EXN) ("Excellon" or "the Company"), Mexico's highest grade silver producer, is pleased to announce that the Board of Directors has appointed Mr. Brendan Cahill to the position of President of the Company. Mr. Peter Crossgrove will continue in his roles as Executive Chairman and Chief Executive Officer.
"Excellon's high grade, low cost silver production from La Platosa provides a rare opportunity to expand our new CRD/Source-style discovery," stated Mr. Cahill. "I look forward to working with the great team at Excellon and further developing our already excellent relationships with the local communities of Bermejillo and Mapimi that rely on La Platosa, as well as with Mexican government and business leaders."
Mr. Cahill joined Excellon as Executive Vice President in summer 2012 and was instrumental in the Company's return to production following an illegal blockade that disrupted production during the third quarter of 2012. He was previously Vice President Corporate Development of Pelangio Exploration Inc., a junior gold exploration company active in Ghana, West Africa and Ontario, Canada, and served as Corporate Secretary of Pelangio Mines Inc., prior to its merger with Detour Gold Corporation. Prior to Pelangio, he was a lawyer in the M&A and corporate securities practices at Davies Ward Phillips & Vineberg LLP. At Davies, he advised on public and private transactions valued at over $15 billion, including Barrick's acquisition of Placer Dome in 2005. He also advised on public offerings totaling over $2 billion dollars for various Canadian companies.
About Excellon
Excellon's high-grade silver production drives transformative exploration potential. The Company's 100%-owned La Platosa Mine in Durango is Mexico's highest grade silver mine, with lead and zinc by-products making it one of the lowest cash cost silver mines in the country. With 41,000 hectares of exploration ground surrounding the mine, Excellon is focused on discovering the large-tonnage Source of the high-grade silver mantos currently in production. Such a discovery has the potential to transform La Platosa into the next major project in Mexico's prolific CRD/silver belt.
Lone Clone As to GORO you brought up a good point about the divy that I hadn't though about and that may be so.
I dont spend a lot of time on GORO as I think their a first class operation and going forward will do very well. Basically I think they pushed production, and held off some rehabbing and preparation of the mine as long as they could. They were gearing up for more production. There is only so much space down under to go in and out and their fore production was effected temporarily. Many companies in Mexico are dealing with water issues as well. I think their was a delay and they will be back on track simple as that. Guidance was crushed. They should have been more forthright and upfront with that info.
I think 99 out of 100 companies or investors would say for a company to start from scratch in 07 at $1 per share, to secure the properties, acquire the financing, put up 200k oz production for $35mil, pay a 3 - 4.4% divy, share price up as high as 3100% and currently up 1500% is quite remarkable.
Think about the divy, its obvious they are spending millions buying their own shares at a steady clip. Seems if trouble was that bad, they would not spend the money on the shares and save it for the divy?
I think it has created an opportunity and a value going forward
Just my opinion
Checkmate
Micro-cap Gowest Gold aims for 2015 production
Going it alone by Greg Klein
http://resourceclips.com/2012/11/12/going-it-alone/2/
The take here is, the reality that the Commodas Ultrasort X-ray ore sorting process may be a blessing, because of the Unique nature of the Gowest ore. This process, will allow for a 12 -15gpt head grade ore, going into 3rd party processing. Thats a big cost saving, as the huge grade will allow for smaller processing capacity and processing costs. Also less ore to haul up and down the shafts as the sorting equipment may be set up under ground and less ore to move down the road to the processor. If the 3rd party agreement with the local processor is fair, Gowest will save the initial costs and aggravation of a new facility and take advantage of another proven companys expertise and permitting. The 90gpt gold concentrate can be easily shipped to one of many places cost effectively for the final pore. My gut take here, is that grade conquers easily, the few extra costs here, and allows for a speedy run to revenue and that the 3rd party plus Communitas, will make this deal winners for all and a reality. Gowest, the 3rd party, and the local community/gov all have a win here in keeping the 1200 current jobs, plus the new ones this creates in the community. I believe grades and communitas, allowing this to be a success, may later be looked upon as a brilliant way for Gowest to have kept 100% of the project as opposed to giving away the farm like most companies are. For the speculators, this is a huge opportunity to get a very favorable risk reward ratio or to watch close. Gowest is about to put up a new NI43-101 with a significant boost to the 1.2 million oz - 1 year old resource. Your risk? What is $13mil MC /1.8 million oz (guess) worth per share? Thats high grade gold for $7.22MC/oz that not long ago, was averaging $87MC/OZ in the Timmins areas for explorers. The hints lead me to Xstrata being the 3rd party unless someone has a better fit of the known information. My opinions of coarse Checkmate28
The body of the link.
But for another company, the path to production might not require wealthy suitors or even large capitalization. Gowest Gold TSXV:GWA closed November 12 at $0.095 for a market cap of $12.53 million. Even so, it’s determined to take its Frankfield East gold deposit into production by Q1 2015, and to do so itself—well, with a little help from some friends.
Gowest Gold plans to use high-tech ore-sorting and third-party processing to begin mining quicker and cheaper.
The company hopes to shorten the path and lower the capex by contracting a third party to produce high-grade concentrate. That, in turn, would be sold to a customer who would refine it further. Gowest’s location in the Timmins mining camp helped the company find a processor with sufficient capacity, which led to the memorandum of understanding announced November 12.
“It’s a matter of building the mine a couple of years sooner and putting less than a third of the capital into it than if we tried to do it ourselves,” says IR manager Greg Taylor. “That would mean generating cash flow a couple of years early, and then we’d make a separate decision on whether to continue doing it that way or to build our own plant after we’ve already started mining.”
To that end, Gowest is now working on engineering, metallurgical and mine development studies prior to hammering out a final agreement with the mill operator next year. A report announced last February suggests the mill would produce concentrate grading over 90 grams per tonne gold.
The 2,444-hectare Frankfield East deposit forms part of Gowest’s 90-square-kilometre North Timmins Gold Project. The deposit’s August 2011 resource shows an indicated category of 1.62 million tonnes grading an average 6.68 g/t for 348,000 gold ounces. The inferred category shows 4.34 million tonnes grading an average 6.01 g/t for 838,900 ounces.
The deposit starts near surface and is open along strike and at depth. Taylor says he expects a resource update soon, followed by an update to last year’s PEA.
The ore-sorting, third-party processing and concentrate upgrade mean we can go into production more quickly and without having to rely as much on capital markets.
—Gowest Gold IR manager Greg Taylor
The deposit holds refractory ore, Taylor points out. “That means it’s a little harder and a little more expensive to produce. All the tests we’ve done indicate that it’s economically viable. We’ve tested this on a commercial basis using an ore-sorting process that’s really quite remarkable.”
Normally refractory gold is separated from sulphides using an oxidation process in either a roaster or an autoclave. Taylor says this deposit features “a very strong correlation between arsenopyrite and gold.” Gowest plans to use technology from the German firm CommodasUltrasort that features “an X-ray system that detects incredibly low levels of arsenopyrite and kicks aside the rest. So you end up putting though only half the rock and losing less than 1% of the gold, while more than doubling the grade. It’s really quite a remarkable process. Then we have the third-party process that can turn this into 90-gram-plus [per tonne] concentrate. The ore-sorting, third-party processing and concentrate upgrade mean we can go into production more quickly and without having to rely as much on capital markets.”
GORO Started out different than most companies. They did not drill first to prove a big resource to get financing.
They started with proven mgt and a stellar lay of property's that were good enough to draw the financing without the official NI43101. That was great as they put up a Modular Mill set up with a 200,000 oz production capacity for a CAPEX of only 35M Including infrastructure. A couple of the leaders here on the board, got in on the IPO at or near $1. If they still have any of those shares, they already received that $1 in dividends. Current yield is near 4.5% for any shares bought today.
GRADES extremely high at 12.75 gpt processed 2011
2011 CASH COST extremely low $136 w credits
$222 w/Royalties and the 14% Base metal credit
Company internal resource
3million tonnes 15 gptAg eq LaAurista alone 23gpt Au eq
open along strike and at debth.
LaArista deepest hole only 500m
Only drilled 1% of 200sq miles
2011 was great 66k oz returned $87 million CF & 58M Net Income plus paid 1/3 CF to share holders for .72/share Div 2011
They lowered guidance 2 times this year as they ran into problems down under and had to rehab some areas. There is a recent class action against the company. They are accused of knowing the problem and not warning the shareholders in timely fashion. This is the reason for the hit in share price. Plus shake up in mgt.
They were guiding in 2013 for potential cash flow of 300 million Sticking with their plan would have netted 1/3 to share holders = 1.92/share in divys
They have current paid for capacity for 300 million CF. Going forward they need to get the underground infrastructure done and continue what they were doing, get back on track and this will turn out to be a great bargain today.
Just my opinion CM
AUMN Golden Minerals $3.80 = Outstanding value
OS 48 Mil
Market Cap 185m
Cash 50m
Projecting cash flow positive by end of year.
two-phased expansion underway to 850 tpd Q3 2013, then 1150tpd
Large mixed resource focused on silver
Decreasing costs, increased ounces and grades, shedding propertys
They are moving forward with their new focus on production at Velardena. Suffered efficiency problems while waiting for equipment but all is well now.
Each quarter should be better than the next.
guiding for 35 to 50M$ in net profit for 2013
They could and probably will organically fund both expansions.
Shorty Golden Minerals is projecting to be cash flow positive by end of year.
Share price has been ugly but this is an outstanding value right now. They have a market cap of about 185 million with about 50 million in the bank. As you know share count is very low so this should move very well once they move this new plan forward some more.
They are moving forward with their new focus on production at Velardena. Production efficiency is going up, output is going up, dead properties are being sold to gather cash and those maintenance costs will be gone forever.
Each quarter should be better than the next.
Dont worry about the short term and don't get shaken out
Checkmate28
Gold Resources GORO Getting hammered down 10% today.
I noticed they are buying back their shares on a regular basis. You can see the OS on each PR and that number is going down. They bought over 30k shares last 3 trade days and I guess they spent about $500k on that. About $6 mil since Oct 2011.
Going to take them a couple quarters to iron out there operational woes.
Gowest Gold More! Am I the only one? Key takes from the news.
"Greg Romain, Gowest's President and CEO stated, "We have been extremely pleased with the ongoing discussions taking place with these potential partners. The results of our Preliminary Economic Assessment demonstrated the potential at a gold price of $1,500 per ounce for Gowest to generate cash flows of greater than $50 million per year from the production of 95,000 ounces of gold starting within 30 months. This scenario was achieved with an estimated capital cost of approximately $60 million, giving an internal rate of return on all equity basis of 50% and a payback of 1-2 years. We are now reviewing financing options and completing a more detailed evaluation to further define the optimal parameters for a short term custom milling arrangement. We look forward to providing updates as we move into 2013."
If this deal happens anything like the the above quote from today, referenced from the current PEA, and GWA get fair financing, than GWA is a screaming buy right now at a market cap below 15million and .10 per share.
From the current PEA, The IRR for the 3rd party processing option is over 50%, payback is less then 2 years.
Over 50million cash flow from $60 million CAPEX is going to provide a NPV Far Far greater then the up front capital. The market will like this. Keep in mind that Gowest has a lot of drill results not in those numbers above. Current official resource is 1 year old and they are in the process of updating their NI43 101 any day. With a year's drilling added, the total ounces of the resource will be bumped significantly higher. That will be followed up by an updated PEA and should improve the economics above even better.
Also note that the PEA does not contain the benefits that can be derived from the ore sorting that bulk testing in Germany showed a success in 2 rounds. This will allow a head grade of 12-15gpt going into the Gowest processing. Thats huge and will allow the 95k ounces per year above, to raise to 150 k/year with the same 1500tpd mill, thereby, saving dollars on costs and increasing total ounces produced by 50%.
Gowest has some work to do, but things are looking MUCH brighter today. The processing option is the option I hoped they'd choose and its now looking far better then my best imagination. If the agreement is with Xtrata, thats huge.
These numbers have huge potential! and also remember, for the most part, Gowest has always delivered what they said and doesn't pump. They are often late as most companys are, but they have always delivered. They dont print what is not true. Again these numbers are huge based on the 15Mill MC. OK Ill stop pumping.
Checkmate 28
Gowest Gold, GWA GWSAF Look like, Be right and sit tight, might finally pay. My guess is the 3rd party is Xstrata, who has just upgraded their Very nearby Kidd mine production facility by $121 million to keep the, scheduled to close, facility open until 2020. They are the only company in the area I can find that has the capacity and fits the bill.
Heres my reasoning, with some facts and links.
As to Xstrata, they have the expertise and deep pockets that could really help Gowest and Gowest is the largest high quality resource in the Timmins area without a mine. Xstrata can only use 50% of their production capacity as their down to 9000 feet and the mine is nearly depleted. They need a large enough resource to fill the other 50%. Gowest can fit the bill
Xstrata IS one of the world’s largest mining and metals companies, operating in over 20 countries and employing over 70,000 people. The Kidd mine is the deepest base metal mine in the world. The Kidd mine has incredible credentials and safety record. Gowest would benefit greatly by this reputation and Xstrata's technical group would assist in the processing modifications to accommodate the Gowest high grade ore. Gowest would have to put the time and effort into underground permitting and to build the mine end.
This would add instant credibility to Gowest and help them to avoid the very high costs of building a new 160 million facility and to have to deal with all the start up problems. Xstrata could handle the refractory as well. Seems if this deal gets done, that Gowest could find the dollars they need to develop their mine in a number of places.
Lets look at community. Greg Romain is a native of Timmins. Xstratas closure would cause the lose of some 1200 jobs in the Timmins area. Onterio Natural Resources would lose $8M a year. Everybody wins here.
Timmins Press News Aug 8 2012 TIMMINS - Xstrata Copper has added another three more years of mine life to its Kidd Operation.
http://www.timminspress.com/2012/08/08/xstrata-extends-life-of-kidd-mine
http://www.xstrata.com/assets/pdf/xcu_brochure_200804.en.pdf
http://www.xstrata.com/media/news/2011/12/15/1200CET/
http://www.sudburyminingsolutions.com/xstrata-coppers-kidd-mine-goes-even-deeper.html
http://www.infomine.com/minesite/minesite.asp?site=kidd
I see the deal being friendly to Gowest because of the community deal above. All party's including the municipals would have in interest in success as opposed to a loan shark taking advantage of a company short on cash. As far as cash goes. Logic tells me that the dollars that Gowest needs to get their end done would be chump change for Xstrada and they very well could pony up the funds to get this deal done ASAP.
anyone have a better idea?
If this happens there is still a lot of work to do and hopefully I wont end up like coinmaker, ticked off after unfriendly to shareholder decisions like the Aurigua situation.
The resource at Gowest is very high quality and their is a lot of good information if you link back to my earlier posts and pic the DD link.
Checkmate28
News Gowest Gold Advancing Towards Early Gold Production with Third Party Processing
http://at.marketwire.com/accesstracking/AccessTrackingLogServlet?docid=0833444001&sourceType=1http://www.ccnmatthews.com/logos/20110713-gwalogoLG.jpg
TORONTO, ONTARIO -- (Marketwire) -- 11/12/12 -- Gowest Gold Ltd. ("Gowest" or the "Company") (TSX VENTURE:GWA)(OTCBB:GWSAF) is pleased to update investors on the feasibility of initiating mining operations at its wholly-owned Frankfield East deposit in the Timmins Gold Camp prior to 2015. Accordingly, Gowest has entered into a memorandum of understanding with an existing third party processor in the Timmins area, which has sufficient milling capacity to be able to process ore from the Frankfield East gold deposit for a fee. The current plan is to produce a high-grade gold concentrate to be sold through a separate off-take agreement.
In preparation for negotiating a final agreement with the third party processor in the first half of 2013, Gowest is preparing a number of engineering, metallurgical, and mine development studies aimed at establishing appropriate technical, operational and economic parameters required by all parties. With the baseline environmental study completed at the Frankfield East deposit this past summer, current plans include Gowest securing appropriate mining permits to enable it to begin mine development at Frankfield East towards the end of 2013.
As previously reported, Gowest has focused on a number of potential ways to optimize the economics of mining and processing operations from the Frankfield East deposit. This includes a recently completed commercial test of ore sorting equipment by Commodas Ultrasort Inc., a world leader in the production of ore sorting equipment. This full scale ore sorting test clearly demonstrated significant economic opportunities, including a reduction in the quantities of rock being handled, while more than doubling the gold content in the crushed material sent to the final processing facilities (see Gowest news release dated September 10, 2012.) At the same time, other detailed metallurgical studies have also demonstrated the potential for the production of a concentrate from the Frankfield East ore with a grade of more than 90 grams of gold per tonne ("g/t") (see Gowest news release dated February 1, 2012.) Either or both of these approaches will enhance the economics of the already robust third party processing plan.
Greg Romain, Gowest's President and CEO stated, "We have been extremely pleased with the ongoing discussions taking place with these potential partners. The results of our Preliminary Economic Assessment demonstrated the potential at a gold price of $1,500 per ounce for Gowest to generate cash flows of greater than $50 million per year from the production of 95,000 ounces of gold starting within 30 months. This scenario was achieved with an estimated capital cost of approximately $60 million, giving an internal rate of return on all equity basis of 50% and a payback of 1-2 years. We are now reviewing financing options and completing a more detailed evaluation to further define the optimal parameters for a short term custom milling arrangement. We look forward to providing updates as we move into 2013."
Frankfield East Gold Deposit
The Frankfield East deposit has been estimated to contain NI 43-101-compliant resources including 348,000 ounces of gold in the Indicated category (1,621,000 tonnes at a grade of 6.68 g/t Au) plus 838,900 ounces of gold in the Inferred category (4,342,000 tonnes at a grade of 6.01 g/t Au). The deposit is currently 1.3 kilometres along strike and remains open including at depth beyond the approximately 800 metres that have been drill tested to date.
Issuance of Shares
Gowest also announces that it intends to issue, subject to TSX Venture Exchange approval, an aggregate of 125,000 common shares to non-management directors of the Corporation (31,250 common shares per director), at a deemed price of $0.08 per share, as partial payment of fees owed to such directors in respect of the quarter ended July 31, 2012. The aggregate deemed value of the common shares to be issued is $10,000. The shares are being issued in lieu of cash in order to conserve the cash resources of the Corporation.
Qualified Person
This press release has been reviewed by Mr. Darren Koningen, P. Eng., Gowest's Technical Advisor for Project Development. Mr. Koningen is a Qualified Person under National Instrument 43-101.
About Gowest
Gowest is a Canadian gold exploration and development company focused on the delineation and development of its 100% owned Frankfield East gold deposit, part of the Company's North Timmins Gold Project (NTGP). Gowest is exploring additional gold targets on the 90-square-kilometre NTGP land package and continuing to evaluate area, which is part of the prolific Timmins, Ontario gold camp.
This news release contains certain "forward looking statements". Such forward-looking statements involve risks and uncertainties. The results or events depicted in these forward-looking statements may differ materially from actual results or events. Any forward-looking statement speaks only as of the date of this news release and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OF THIS RELEASE.
Contacts:
Gowest Gold Ltd.
Greg Romain
President & CEO
(416) 363-1210
info@gowestgold.com
Gowest Gold Ltd.
Greg Taylor
Investor Relations
905 337-7673 / Mob: 416 605-5120
gregt@gowestgold.com
Dr Air, I did see that ARZ disappointment but unfortunately you unloaded before I saw the news and it was already 4.10. I was going to sell and add to my Goro position a few days ago as I did some comparing on the 2 companies.
I picked up some GORO near a 2 year low anyways, banking the miss in mid year production will soon be looked as an opportunity to get cheap cash flow and high dividends as they rehab back to 100k/year and then to 150 k with sector leading costs and grades.
The class action, I think will soon be looked at as an opportunity and is insured anyways. The Reids are a class act, sharp operators and have always delivered what they've said, just often a little late. They put up a new modular 200k oz production facility for 35mil CAPEX including most in-fracture. Current yield about 4.3%
Now Dr Air - There is a nice little Junior explorer Ive been hearing about right down the road from ARZ that is about to make some noise. Might want to save some ammo.
Checkmate28
Coin, I would like to stick up for Chen as well. While Im not a subscriber to his news letter, Ive been here many years and I watched him move that account from 5k to 1 million BEFORE he partnered with JT. I've met him as well. His calls were often, DD intense and he was more nimbal and quick than anyone Ive seen, moving in and out of positions based on news earnings and especially sector trends. While Im sure he bought and sold before he posted, most of us do, he did make mostly good decisions and shared mega hours of DD and wisdom. I cherry picked his stuff and in the end, the DD job is up to the individual. Chen was just a tool (no pun intended) that helped an investor to figure things out. I think its much harder to pick stocks for a newsletter, knowing there has to be a a big enough market or liquidity for the followers.
I would vote that he has contributed to this board, more quality free information than anyone with Bobwins being a close 2nd. Bobwins might even back me on that. The stats here speak for themselves. Thats saying a lot, since he hardly ever posts last few years due to conflicts of interest.
I wish Chen would leave JT and come back to trading and discussing stocks.
Just my honest opinion
Checkmate
Great point masteraticoupe, one off take agreement, will be one giant step past the NI43 and the PEA, and an even larger rubber stamp on the reality that molo will move forward.
At that point, the future will be greatly de-risked and we will be here running cash flow calculations and transferring those into dollars per share.
Riverrock, Those are very impressive numbers, unfortunately for the time being, graphite is not sexy or in the news. Many are still in the show me mode, and need to see more. In the mean time the massive molo mine is moving forward creating value and confidence.
First the official NI43101 will make some believers but when those numbers are run in an officail PEA, their going to make a statement
EXN.V Halted Excellon Resources Inc
This could have something to do with the blockade but Im guessing they got the permits to reopen or the drills found something very nice. They have been touting being close to the source
TM Sorry - no PM for me. Aurcana Warrant info
Canada AUN.WT US AUNWF
Strike Price - $1.00
Expiration Date - November 29, 2013
AUN.V Weakness, Let me take a stab.
Im guessing many got in during the spring expecting 2500tpd production out of Shafter (their 2nd mine) shortly after the announced commissioning date in April.
Early year, the company danced around the fact, that normal start up problems & the jumbo task of getting the mine staffed with a competent crew would take awhile. Then, there was the water problem.
They also didn't mention upfront, the commissioning and testing phase leading to commercial production of only 1500tpd taking until year end.
So in short, the current price reflects the time period during spring, when the market thought they'd see 2500tpd from Shafter on top the 2500tpd from LaNegra in a couple months.
Couple that impatience/insecurity, Europe insecurity and the metals correction, and you have buyers waiting and sellers drizzling off.
I think it take's until spring to see proof of the big numbers and the project being de-risked to get the superman. At that point, they will have First Majestic (500% more market cap) in their sights and the world will see it.
I don't see anything fundamentally wrong there. They are lining up big additions everywhere, production, cash flow, total resource numbers, total land patents and lower costs.
Just my opinion but what do I know!
I just hope to see my .30 warrants at 2.00 by mid year.
Checkmate28
GPD.V These are good terms in todays market and Im sure the coming large royalty's to GPD helped to secure the loan. The 35 million should get their low CAPEX browns field producing and still some exploration work.
Golden Predator arranges USD $35,000,000 Loan Facility
Golden Predator arranges USD $35,000,000 Loan Facility with RK Mine Finance; Closes Brewery Creek Acquisition
TSX: GPD
VANCOUVER, Sept. 27, 2012 /PRNewswire/ - Golden Predator Corp. (TSX:GPD) (the "Company") is pleased to announce that it has executed definitive agreements with MF Investment Holding Company 1 (Cayman) Limited ("MF Investment"), part of the Red Kite group, for a senior secured loan facility in the principle amount of USD $35,000,000 (the "Loan"). The Loan proceeds will be utilized to develop the Brewery Creek project and complete the Brewery Creek acquisition.
"We are pleased that Red Kite has appreciated the opportunities presented by our Brewery Creek project. This financing consolidates our interest in the project and ensures Brewery Creek moves forward as planned," said William M. Sheriff, Chairman and CEO. We look forward to Brewery Creek advancing towards becoming the Yukon's next gold producer in 2014."
USD $35,000,000 Loan Facility
The Loan will be provided through three advances, the first advance of USD $10,000,000 having been provided on September 25, 2012 and two subsequent advances of USD $10,000,000 and USD $15,000,000, respectively, being made on completion of certain specified conditions including delivery of an acceptable pre-feasibility study and receipt of any required permit amendments for the Brewery Creek Project.
The first $10,000,000 of the Loan matures on July 1, 2015, the next $15,000,000 on March 31, 2016 and the final $10,000,000 matures on December 31, 2016. The Loan bears interest payable at LIBOR plus 8% per annum, subject to a minimum interest rate of 10%. As a condition to the second advance of the Loan, the Company has agreed to enter into an offtake agreement under which it will sell to MF Investment the first 500,000 ounces of gold produced from the Brewery Creek Project at a discount of 1.5% to the spot price.
Of the initial advance, CAD $3,205,000 was used to complete the acquisition by Golden Predator of the Brewery Creek Project from Alexco Resource Corp. ("Alexco") as more particularly described below, with the balance of the net proceeds of the Loan will be used exclusively to fund the working capital requirements of the Company related to or arising in connection with the exploration and development of the Brewery Creek Project.
Brewery Creek Purchase
The Company has closed the previously disclosed transactions contemplated under the purchase agreement dated February 14, 2012 among Alexco, the Company and Golden Predator Canada Corp. (the "Purchase Agreement"). The Company now owns a 100% interest in the Brewery Creek Project, subject to a 2% net smelter royalty ("NSR") in favour of Alexco on the first 600,000 ounces of gold produced from the Brewery Creek Project, following which the NSR will increase to 2.75%. The Company has the right to repurchase 0.625% of the increased NSR for CAD $2,000,000 (which, if so acquired, would result in a 2.125% NSR on gold to Alexco).
In exchange for a 100% interest in the Brewery Creek Project and in addition to the NSR, the Company paid to Alexco CAD $3,205,000, representing the cash consideration to be paid under the Purchase Agreement (CAD $4,000,000) less the amount of the reclamation bond that had been posted by Alexco with the Yukon government (CAD $795,000) and issued to Alexco 7,500,000 common shares and 3,750,000 share purchase warrants of the Company (the "Warrants"), each Warrant entitling Alexco to purchase one additional common share of the Company at a price of CAD $1.15 for a period of two years from closing.
About Golden Predator
Golden Predator Corp., Yukon's Gold Company, is mandated to become a mid-tier gold producer. Golden Predator's road-accessible advanced properties include its flagship Brewery Creek Project as well as its Grew Creek and Clear Creek Projects. Golden Predator is committed to moving aggressively to a near term production decision while expanding the existing NI 43-101-compliant resource at Brewery Creek.
Golden Predator has one of the largest controlled land positions in the Yukon, with exploration holdings in excess of 1.0 million acres, and is committed to strong relationships with First Nations and communities. Golden Predator's highly skilled management and technical teams continue to lead quality exploration programs in the underexplored regions of the Yukon, focused on advancing new discoveries and leaving a positive legacy.
About RK Mine Finance
RK Mine Finance provides mining companies with project financing and metal off-take agreements for initiation or expansion of mine production and is part of the Red Kite group. Red Kite operates across the global metals industry from offices in Bermuda, Denver, Hong Kong, London, New York, Shanghai and Sydney. Investors in Red Kite funds include college endowments, foundations, family offices, pensions and other institutional investors.
GPD.v Halt hummm! Alexco Completes Sale of Remaining Interest in Brewery Creek
Hopefully the halt has to do with GPD getting the financing wrapped up, and that helped this deal to happen. There was 5 to 10 times normal volume last week for GPD.v
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 27, 2012) - Alexco Resource Corp. (TSX:AXR)(NYSE MKT:AXU) today announces it has completed the sale of its remaining interest in the Brewery Creek property, located in the Yukon.
In August, 2009, Alexco entered into an option agreement with Golden Predator Corp. (TSX:GPD) under which Golden Predator could earn up to a 75% interest in the Brewery Creek property. Golden Predator completed the work commitment to earn an initial 51% interest in Brewery Creek, and has been continuing work programs to complete its remaining earn-in under the option. Pursuant to a purchase agreement entered into in February 2012, Alexco has now completed the sale to Golden Predator of all of Alexco's remaining interest in Brewery Creek.
In exchange for providing Golden Predator with a 100% interest in Brewery Creek, Alexco has now received $4,000,000 cash (comprised of $3,205,000 received from Golden Predator, plus $795,000 received through the release of reclamation security) as well as 7,500,000 common shares of Golden Predator, and warrants to acquire an additional 3,750,000 common shares of Golden Predator at any time in the next two years at a price of $1.15 per share. Alexco has also been granted a net smelter returns royalty of 2% on the first 600,000 ounces of gold produced from Brewery Creek, increasing to 2.75% thereafter. Golden Predator has the right to repurchase 0.625% of the increased royalty from Alexco at any time for $2,000,000.
Read more at http://www.stockhouse.com/bullboards/messagedetail.aspx?p=0&m=31589875&l=0&r=0&s=T.GPD&t=LIST#ZTEFPZhDIMt51RkJ.99
NAK Northern Dynasty Dont own now, but been watching the near 100% bounce since db7 posted at the bottom.
Further to Energizer : The Molo zone is only 1 of 17 zones. They have the capacity to become a graphite camp. Inside this same camp, might be the largest source of Vanadium in the world.
There is a Vanadium supercharged Lithium battery car that has gone 600 km on a single charge and charges in a few minutes plus there are VBR's in use now for grid electricity that use Vanadium charged Lithium. Incredible technology if they can get the bugs worked out for the cars.
EGZ.V ENZR For those doubting Energizers track to production. Todays PR is a very good read.
http://finance.yahoo.com/news/energizer-resources-provides-progress-report-120000096.html
In broad terms, a tonne of graphite is equivalent in dollars to an ounce of gold
Production capacity with the expected resource to be 150,000 tpy modular starting at 50,000tpy
Their jumbo flake is said to be released with simple crushing.
Going to work on understanding production and costs better when I get some time.
Graphite prices
http://www.indmin.com/MarketTracker/197195/Graphite.html?id=GT-C
AUMN Re LOL! I did too notice the author was a little green esp with a prediction of many multiples of current price in one year and his number of articles written, however, I do agree with his main premise, that the dilution is accretive and not a bad deal to get the cash for the expansion, and also that the reason for the dip and lid in the current price, is because professionals can buy the private placement for 5.75 until its full.
I've posted couple times about the 80 properties and the 1/2 billion ounces they have. That maintenance is actually one of the reasons their burning cash and not CF positive yet. BOY they had about 80 mil cash. They are running low now, 20 some mil and hence have to raise cash for the small CAPEX. The 6 months wait for equipment at the border hurt.
Since they started production, they've been pruning their inventory of property's. Zacatecas Mexico is an advanced stage drilling project they hope to sell soon that would bring them a nice piece of cash. Possibly they might be able to pay for the 2nd phase exp with that cash.
AUMN Golden Minerals Great article Author shares the reasons why I own it and says it will be many times the current price 1 year from now
The New Share Offering By AUMN Creates A Unique Buying Opportunity
Here is some background on Golden Minerals (AUMN), a junior gold/silver producer. The company is currently cashflow negative, but in its xjMay production update, it said that it is expecting to become cashflow positive in 4Q at gold/silver prices of $1500/$30 per oz. That's going to be a big thing in the market's view, and many new investors will pile into AUMN (the ones that are avoiding it now on the principle of avoiding companies with a negative cashflow).
In its most recent production update, AUMN mentioned that with about $20M of funding, it will be able to expand production to 2M oz. of silver by 2Q 2013, and then with extra $50M, further expand to 4M oz. by the end of 2014. At that volume, its cash cost per oz. will be less than $7, so at $37 silver (I think silver is going to be MUCH higher by the end of 2014, since U.S. employment is not going to improve markedly and the Fed will keep buying the MBS securities for a long time), AUMN will be making $30 of cash profit on each oz., for a total cashflow of $120M per year. Its current market cap is only $210M, so its market cap would have to rise A LOT by the end of 2014 (it will rise steadily as AUMN keeps increasing its production).
Now here is the interesting part: AUMN announced on Friday that it will increase its share count by approximately 20%, selling new shares at $5.75 and raising $37M as a result (including the share purchase planned by the Sentient Group), which should be sufficient for AUMN to ramp up its production to 850 tonnes per day (for an annual output of 2M oz of silver) and then perform "engineering, design and other work related to the planned expansion to 1,150 tonnes per day" (it had previously predicted an annual output of 4M oz of silver at 1150 tonnes per day). Once this offering is sold, what should be the fair price of AUMN stock afterward?
Well, let's look at a small example. Let's say I open a new company, issue 100 shares at $7, and place the obtained $700 in a bank. Then, let's say I announce that I sold to the public 20 shares at $5.75, raising $115. What will the fair price of my stock be then? It depends on how productively I will spend these extra $115. If I use it to buy a bottle of good cognac and drink it with my friends, then the price of each share should drop by 20%, since NAV/share will be $700/120 = $5.83. If instead I put that $115 in the bank, then the new share price should be $815/120 = $6.80.
But if I announce that there is a business opportunity to double my money in a couple of days and a minimum $800 is required to participate (so I was previously excluded from this opportunity, but not anymore), then the new share price should be $1630/120 = $13.60 (since investors will rightfully assume that a doubling of my NAV is inevitable). Now, we know that AUMN is going to spend these $37M productively, greatly expanding its production and removing the last cloud of uncertainty surrounding this company (it had a great potential for expanding production but no money to pay upfront for it, but now it has the money and the expansion became a certainty).
If this is so, then why is AUMN stuck around $5.80 for two days now? Well, the Big Traders (hedge funds), which determine the price, are rightfully thinking that there is no reason to pay much more for the stock right now if they can get shares at $5.75 on Wednesday. And they are correct. However, as soon as this offering is sold (maybe it will all be sold on Wednesday, maybe it will take until the end of the week), the price of AUMN will jump back at least to where it would have been without this offering -- above $7 (it should at least jump to $6.80 -- the fair price I calculated above for the company that was priced at $7 and then expanded the share count by 20%, selling new shares at $5.75 and then placing the proceeds in the bank). The fact that AUMN was down on Monday less than the Market Vectors Junior Gold Miners ETF (GDXJ) (even though it is usually much more volatile than GDXJ), further confirms my view that the company is not trading freely now, but is just marking time waiting for the new share offering to be sold.
Thus, traders with a horizon of longer than a week have a unique opportunity on their hands now, buying AUMN at $5.80 and selling it above $7 a week from now...
As for the long-term view of what is going to happen with AUMN stock, I think it will be many times higher a year from now, both as a result of expanded production (which now becomes a certainty, after it has obtained the funding for this expansion) and as a result of much higher gold/silver prices. There was a huge jump in 5-year inflation expectations last Friday -- gold/silver prices have not caught up fully yet with this spike (there is a clear correlation between inflation expectations and gold/silver prices over the past year). Inflation expectations are self-feeding -- since people will start buying commodities in expectation that inflation will make them more expensive in the future, which will serve to raise the commodity prices NOW, which will confirm people's expectations of higher inflation and will even adjust those expectations up further, which will cause more buying of commodities now, etc.
So a huge ship has been set in motion, and as long as the Fed keeps expanding the monetary base, precious metals will keep steadily going up (those who want to check a historic correlation between the monetary base and gold/silver prices, can take a look at the monetary base chart over the past year and see how closely it tracks the general shape of gold/silver prices over the past year). The recent rally in both the iShares Silver Trust (SLV) and the SPDR Gold Shares (GLD) has been explosive (just as I had predicted in the article I posted in July), as traders have already started to adjust their portfolios for much higher future gold/silver prices.
http://seekingalpha.com/article/872581-the-new-share-offering-by-aumn-creates-a-unique-buying-opportunity?source=yahoo
GPD Golden Predictor. Large volume continues. Just waiting for the news. Bill Sheriff bought twice as you said.
I think its the sleeper in the Yukon. Might not have the monster project like some are showing, but this is the company that does not suffer the Yukon plague that the others suffer. These guys have year around infrastructure NOW. Since they are out front, they get the help before the long line comes. They'll have cash flow while the others are fighting for infrastructure, drills, equipment and help. As to their resource, its solid now and with nearly the largest land package in the Yukon they very well could prove up 5 - 10 million ounce resource.
The large growing Royalty revenue package, production ramp and increasing NI43 will happen simultaneously changing the whole story here IMO!
Long term-er for me.
Checkmate28
Bobwins, When you say, your holding 85% of your stocks in Canadian and Australian currency, do you mean you are buying the US version on Ca/AU stocks, or do you have accts in Canada and Au where you buy the native version of the stock?
Im assuming its the 1st option that gives you the added bonus when CA currency is getting stronger against US currency.
Just to buy the US version of CA stocks gives the advantage of picking up the positive currency difference whether the stock goes up or down. When the CA dollar gets stronger, the US equivalent version goes up faster to a higher PPS than the straight Canada PPS.
CM28
db7 GPD.v I think Sprott has been the seller bringing it down lately as they were probably not chosen for the financing. The CEO buying on the open market is always good. Wish I had time to pull some more DD together but unfortunately I'm headed out of town
Off hand
The Yukons largest land package about 1200sqkm
Lots of drilling coming in Think about 25k meters this year
Production eminent
4 of 5 top projects are road accessible
They have royalty's coming in now and growing to about
10,000 oz gold net to them per year, in about 12 mths from the various agreements. Thats 10k X about $1750 in revenues without production. That should guarantee they get a fair deal for the small 20 - 30m CAPEX to get the fully permitted brownsfield going
One of the only Yukon companies Able to mine 12 mths a year and that has access to electricity, water and roads NOW!
Bill Sheriff at the helm Just ask Bobwins?
EXN.V +20% The gamble paid off, plus full production will soon be on the way.
Excellon regains access to La Platosa mine
During the blockade, essential services have been maintained at La Platosa, including pumping operations.
Excellon Resources Inc. (TSX: T.EXN, Stock Forum) said that it has regained access to its La Platosa Mine in Mexico.
La Platosa, located in Durango State, has been under an illegal blockade commenced by the landowners, known as the Ejido, over a land rental dispute since July 8.
According to the press release, the company's work force peacefully regained regular access to La Platosa through a new alternate access with the aid of the Concerned Women of Bermejillo, a group of women from local communities that have been affected by the illegal blockade.
Early yesterday morning, a combined group of state and federal authorities peacefully reopened access to the mine site via the new access - which at the time had only five blockaders.
The company aims to continue accessing La Platosa in the coming days with the aid of the Concerned Women of Bermejillo and with the aim of resuming full production when the situation stabilizes and ordinary course permits are received.
In the event that the illegal blockaders interfere with the escort provided by the Concerned Women of Bermejillo, the company will be forced to put the mine on full care and maintenance for an indefinite period.
Read more at http://www.stockhouse.com/natural-resources-news/2012/Aug/30/Excellon-regains-access-to-La-Platosa-mine.aspx#P0JePQH8Du4KeVeq.99
Gowest Gold GWA.v GWSAF Another feather in the cap. Essentially increases their grades to 12 - 15gpt. Plus for why I think Gowest offers a better risk reward ratio than most any early stage explorer out there.
Gowest Demonstrates Potential to Reduce Capital and Operating Costs Through Successful Completion of Commercial Scale Ore Sorting Test
TORONTO, ONTARIO--(Marketwire - Sept. 10, 2012) - Gowest Gold Ltd. ("Gowest" or the "Company") (TSX VENTURE:GWA)(OTCBB:GWSAF) is pleased to report that its recently completed testing of commercial scale, Dual Energy X-ray Transmission (DEXRT) ore sorting equipment and has clearly demonstrated the amenability of the Frankfield East mineralization to separation using this technology.
The implementation of commercial ore sorting equipment provides significant economic upside opportunities:
Mine cut-off grades can be lowered, thereby increasing overall resource ounces;
Cheaper bulk mining techniques can be utilized;
Hauling and transportation costs between mine and processing facilities can be reduced; and,
Overall capital and operating costs are reduced.
At typical mine grades, DEXRT effectively separates waste rock (50% or more of total) present in the crushed rock from the gold-bearing material;
The potential exists to more than double the gold content in the crushed rock sent to the processing facilities from 6 g/t to 12-15 g/t; and,
Gold losses during sorting are minimal as the effectiveness of the DEXRT system is extremely high with the Frankfield East style mineralisation.
the full story
http://tmx.quotemedia.com/article.php?newsid=54158618&qm_symbol=GWA
Plus more info and back up to this story coincidentally posted on Stockhouse by somebody last night.
http://www.stockhouse.com/Bullboards/MessageDetail.aspx?p=0&m=31507607&l=0&r=0&s=GWA&t=LIST
Gowest Gold Due Dilligence
http://www.stockhouse.com/Bullboards/MessageDetail.aspx?p=0&m=31379348&l=0&r=0&s=GWA&t=LIST
Dr Air Have a listen to Golden Preditor GPD.v day 3
Dr Airtime AUN.v For the Aurcana longs the 115M La Negra resource and 10M oz production was already a given. Somewhere Lenic has even mentioned 12m production. We were just waiting for this time, (actually more so for the 1st couple Q's of good numbers)Thats when the First Majestic comps are going to revalue the Aurcana shares.
Al Korelin's interview with Lenic and MeGaw in January of 2011 you will realise that MeGaw grew up in the Big Bend area and the Presidio/Shafter geology inspired him to become a geologist.
" I have known Shafter for many years.I became a gelogist because of the Big Bend country.I am very comfortable with the geology and the deposit type out there.There is every reason to think that that thing keeps going for quite a distance and there is a lot of exploration upside." Dr. MeGaw
MeGaw is very successful and is arguably the world's pre-eminent expert on Carbonate Replacement Deposits(CRD's).He has a personal interest in Shafter as he grew up in the region and Shafter seems to be a large part of his inspiration to become a geologist.
He can work pretty much anywhere he pleases and he chooses where he wants to work and he can also dictate the terms of his employment,as he did with Lenic and AUN.
"Basically when I came on I told Lenic I wanted to see an independent exploration team and I wanted significant funding for it and he agreed to do that so we are moving forward on that basis." Peter Megaw
http://www.kereport.com/2011/01/29/industry-experts-cambridge-house-investment-conference/
Additionally their is much more at LaNegra as well. 300M total is a shoe in for the 2 areas and I'll bet it nears 500M oz
Also of interest is the contaminated dore bars poured at LaNegra. Unexpectedly the bars were golden in color and found to contain 15% gold witch raises the value 700% over the straight up silver they were expecting for that area.
Checkmate28