Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
okay talked to KGI
$205 cash cost
34M shares fully diluted
1.77M ounce resource
89% recovery
$47 market cap per resource oz fully diluted...
game plan is to get proven, measured, and inferred reserves to 3M - 5M ounces within the next 3 years, and then sell it...
Correction: KGI @ $45 per resource ounce it appears
1.77M ounces including inferred
http://www.klgold.com/news_releases/aug_18_2003.PDF
Do not have an accurate handle on the convertible debt, so dilutive shares may be low. This last PP really helped out their balance sheet...
24M ounces per quarter production looks doable and at $385 POG equals US$9.25M cash flow. Have no idea on cash cost... Anyone have their cash cost estimate??
I calculate a rough estimate of $60 market cap per reserve ounce for Kirkland, from the latest 10-Q looks like 32.3M fully diluted shares (could be much more because of the convertible debt??) and using 1.3M ounces (both proven and inferred).
Looks like the gold ounces could go over 2M+ ounces based upon that research report. The debt is convertible at C$4.00 per share...
okay, decided to join you with KGI..., seems like a reasonable speculation...
http://members.shaw.ca/dsk.consulting/KirklandLakeGoldResearch.pdf
as US$ index pastes new lows...
http://fast.quote.com/fq/cts/livechart.html?symbols=DX00Y&wd=750&ht=460
correction "he's doing us investors a disservice by drying up the liquidity"
He is doing you torquesters a disservice..., not long term investors, IMO...
"and about CKG...You have to buy this stock on the pullbacks."
And even then you have to compete with Randy to purchase them...!@!
http://www.investorshub.com/boards/read_msg.asp?message_id=1630486
jrhana had good post updating CKG:
jrhana Thursday, Oct 23, 2003 3:28 PM
Vignettes from a talk with Randy Reifel
Actually by my broker who loves talking with these companies
The company is in very strong financial position with around $27,000,000 in cash. The cash position is actually improving.
They are interested in exploring for gold and definitely are not miners. They definitely would look to sell whatever deposits they prove up. They have multiple properties with promise and have 11 geologist at work including I believe 4 from Francisco. They are sticking with Mexico and Central America because that is the geologic area that he knows.
There will probably be no real drilling results until March or so. They typically take about three years to bring a project to fruition so this is definitely a long term play. Typically the first year is spent in planning as they have been doing.
This is the only company he is involved in (although he is the largest shareholder of GLG) and therefore receives his full time attention.
He believes strongly in what he has been doing and in fact has been buying heavily to the tune of about 1.5 million additional shares bringing his total shares to over 4.5 million or around 25-27% of the company. He will continue to buy heavily on every pullback as he has been doing. Talk about your insider buying.
The company is extremely strong financially and is not going everywhere. The initial drilling may well prove disappointing (as with any drilling) but he will persevere and they will find what they are looking for (i.e. gold) sooner or later. The financial strength of the company guarantees staying power.
My broker is so impressed with Randy that he has been buying for himself. We have looked at over 50 companies and this is his favorite.
If you have any questions for Randy please feel free to call him at 604-731-1094. He says he loves what he does and he loves to talk about it.
Very brief comments on GBN by Embry...
starts at min 17:45
http://www.robtv.com/channels/hubs/pastprograms_highlights_tue.html
my prior post appears inaccurate, does not appear that Embry has or will take position in GBN in near future..., but you need to listen to link... He likes GBN and confirms his 10% holding while at RBC was a wise one... Would have thought he would have bought some at Sprott by now...
Updated Market Cap per Resource Ounce (fully diluted)
GBN continues to appear undervalued both to Canadian Juniors and its S African Peers. GBN has $13.34 market cap per resource ounce vs. $34.06 for CBD and $30.53 for AGI. Continue to like all three stocks, i.e. GBN, CBD and AGI, as a core holding...
GBN also undervalued relative to its SA peers, IMO.
_______________
GBN website now lists 99.4M shares fully diluted. I was using the info from the 6/30 Form 10-Q..., but the 99.4M is correct.
Here is the breakdown of the additional 4.5M shares previously not included:
1) SouthGold "bonus" shares 1.5M, these are for beating resource and cash cost estimate, GBN is being somewhat conservative and including these contingent shares which infers that the SouthGold purchase will have more resources at lower cost than originally budgeted under this agreement.
2) Hecla gets 1M warrant shares in exchange for GBN getting like amount Hecla shares, really no dilution here as GBN gets investment shares in HL, and HL gets investment shares in GBN.
3) My original analysis failed to include 504,000 broker shares from the Jan 03 PP financing at C$1.80.
4) The 2 new SA Directors got 424,500 shares at C$1.32, and management got 1M shares at C$1.50 (both granted in July 03)
Thus, only about 1,424,500 of new dilutive shares from Jun 30 to Oct 23, 2003. FWIW, the HL for GBN share warrants (2M total now) have been anti-dilutive since HL has gone up more in share price than GBN.
natgas: Robry graphs updated...
http://amarks.homestead.com/RobryNGModel.html
This likely explains anooraq strength...
http://www.anooraqresources.com/i/pdf/desjardinsarqoct2003.pdf
If the US$ index gets under 90, then $Gold should have no problem going over $391..., IMO
Da boyz have 3 ways to manipulate $Gold
1) Central Bank(s) decides to sell a bunch
2) Da boyz lease gold and sell into the market
3) Da boyz bounce the US$ off this .91 US$ index level and get it back over 92.50
suggest you read the latest GBN post in regard to S Africa and political risk...
lots of new info to digest in regard to black economic empowerment, and may not be such a hostile environment, at least not so bad as everyone thinks...
GBN comments on SA/Black Economic Empowerment (BEE)
FWIW, GBN has the President of the Burnstone BEE on its board of directors (Mr.-Sipho-Nkosi)... http://www.greatbasingold.com/gbg/NewsReleases.asp?ReportID=66883&_Title=Mr.-Sipho-Nkosi-Joins-B.... Also, Rob Still, the primary SouthGold owner and also on the GBN board of directors, is Chairman of the New Africa Mining Fund (NAMF) which is furthering BEE. Accordingly, believe GBN is politically very well positioned (likely more so than most SA based companies) in regard to SA's black economic empowerment initiatives...
Bottom Line: there is political/country risk in S Africa, but GBN management has taken very proactive measures to lessen this risk.
_______________________
from Mineweb...
Posted: 2003/10/21 Tue 14:36 ZE2 / © Mineweb 1997-2003
http://www.mips1.net/mgbe03.nsf/UNID/DTHE-5SJGT5?OpenDocument
GOVERNMENT’S new empowerment regime has laid the foundation for long term sustainability in SA’s mining sector, says Ron Thiessen, CE of Canadian mining group, Hunter Dickinson. Thiessen’s sanguinity on the compendium of new legislation is the result of squabbling over equity ownership issues in his native British Columbia and the resultant deadlock it has caused in mineral development in the region.
“There is now 100% impediment (to the development of new mining projects) in Canada because we don’t have anything as progressive as your empowerment legislation,” says Thiessen.
Protracted negotiations focussing on ‘aboriginal title’ between Canadian miners and the ‘First Peoples’ - the term by which its native Indian communities are called – are roundly blamed for the current impasse in Canadian mining. Australian miners suffer from a similar hurdle to quick development of projects, with little case history and no legislation to break deadlocks.
In Canada, project development has ground to a halt as local and federal governments quibble over jurisdiction in dealing with land ownership issues, and native communities are beginning to drive hard bargains to secure equity ownership in projects on their territory. Also, the country’s minerals legislation does not provide for the settlement of disputes between developers, land-owners and regional authorities.
The experience of world number one nickel producer Inco, provides an eloquent example of the obstacles that could be thrown up by a lack of appropriate legislation. In 1997, Inco bought the mammoth Voisey’s Bay nickel deposit in the state of Newfoundland, from a group of explorers for $3.2bn. After spending another $1.2bn on the project, demands from the regional government and local communities demanded that Inco build a smelter and refinery near the mine. But making the additional $1.5bn investment in new plant doesn’t add up for Inco, which planned to use its existing facilities in Quebec to process the Voiseys’ ore; the net result is that an investment worth more than $4bn is lying idle.
According to Thiessen, there are countless similar examples littering the Canadian resource sector. “There are hundreds of projects that can’t go anywhere,” says Thiessen.
So it is telling that Thiessen and Hunter Dickinson have staked their growth ambitions on a brace of precious metals projects in SA. The group has an option over the Burnstone gold prospect near Evander through listed associate Basin Gold and is involved in a series of junior platinum exploration ventures through another Toronto-listed associate, Anooraq.
“We’re comfortable with the legislation in SA,” says Thiessen. “It’s not just about equity ownership, it’s about a lot more than that. In SA it’s a necessity and it will buy a level of stability which will ensure the survival of this industry going forward.”
Lots more on Gold Royalty / SA / Black Empowerment
MINEWEB BLACK ECONOMIC EMPOWERMENT SURVEY
A blueprint for all
Comments by Barry Davison, President, Chamber of Mines of South Africa
Click here ...
http://www.mips1.net/mgbe03.nsf/UNID/DTHE-5SJCLE
Broad-based empowerment is a must
Comments by Phumzile Mlambo-Ngcuka, Minerals and Energy Minister
Click here ...
http://www.mips1.net/mgbe03.nsf/UNID/DTHE-5SJCJ2
The pocket charter
Everything you need to know about SA's newly launched mining charter in easy-to-absorb bullet points.
**Best Synopsis**
Click here ...
http://www.mips1.net/mgbe03.nsf/UNID/DTHE-5SJCR2
Empowering our readers
Comments by BEE survey editor David McKay
Click here ...
http://www.mips1.net/mgbe03.nsf/UNID/DTHE-5SJCMN
Anglo's Zimele set for 20% transaction growth
Authentic broad-based empowerment is Anglo American's Holy Grail
Click here ...
http://www.mips1.net/mgbe03.nsf/UNID/DTHE-5SJCW8
The pocket scorecard
Ticking off the charter's seven pillars
Click here ...
http://www.mips1.net/mgbe03.nsf/UNID/DTHE-5SJCUT
Impala not panicking over BEE
Impala making BEE advances despite complexities
Click here ...
http://www.mips1.net/mgbe03.nsf/UNID/DTHE-5SJCX2
The meaning of the scorecard
Plenty of provisions and many omissions
Click here ...
http://www.mips1.net/mgbe03.nsf/UNID/DTHE-5SJCT6
De Beers restructuring ahead of empowerment deal
The diamond giant is untangling its business ahead of a BEE transaction
Click here ...
http://www.mips1.net/mgbe03.nsf/UNID/DTHE-5SJD4F
Funding grassroots BEE projects
Manhattan helping to motivate grassroots empowerment
Click here ...
http://www.mips1.net/mgbe03.nsf/UNID/DTHE-5SJD3J
Godsell crucial to Charter compromise
Six months after the disastrous leak of the mining charter in July last year, AngloGold CE Bobby Godsell may have found a way of mapping a route for the orderly transfer of mining assets to black ownership.
Click here ...
http://www.mips1.net/mgbe03.nsf/UNID/DTHE-5SJCZ9
Gold giant is JCI's great empowerment test
JCI's greatest empowerment test lies right on its own doorstep
Click here ...
http://www.mips1.net/mgbe03.nsf/UNID/DTHE-5SJD2M
Bafokeng mulling complex of options
Few companies can claim to be as well positioned to tackle the challenge of black economic empowerment (BEE) in SA's mining sector than the Royal Bafokeng Nation (RBN).
Click here ...
http://www.mips1.net/mgbe03.nsf/UNID/DTHE-5SJCY2
JPMorgan says 360 degree mantra will help BEE
Last year's negotiated mining charter has helped set down SA's credentials as a preferred emerging market, according to JPMorgan
Click here ...
http://www.mips1.net/mgbe03.nsf/UNID/DTHE-5SJD8A
SRK Consulting seals Kagiso deal
SRK Consulting SA recently unveiled a shares-for-cash deal with Kagiso Investments subsidiary, Kagiso Enterprises
Click here ...
http://www.mips1.net/mgbe03.nsf/UNID/DTHE-5SJD7C
Kumba says handful of partners in tow
Kumba fast-tracks empowerment with 34 potential partners on its books
Click here ...
http://www.mips1.net/mgbe03.nsf/UNID/DTHE-5SJD6H
Nedbank says BEE deals maturing
Nedbank says rules of BEE in mining are changing
Click here ...
http://www.mips1.net/mgbe03.nsf/UNID/DTHE-5SJGLF
Listing surge anticipated for BEE
Gerard Kemp, who heads up RMB Resources' corporate finance team, believes the mining charter could breathe fresh life into the resources share market as existing mining companies attempt to meet the requirements of the mining charter.
Click here ...
http://www.mips1.net/mgbe03.nsf/UNID/DTHE-5SJGJW
Cruel irony at heart of royalty bill
Irony of bill is that national patrimony benefits at expense of communities
Click here ...
http://www.mips1.net/mgbe03.nsf/UNID/DTHE-5SJGS3
Royalty Bill is universally unpopular
Proposed royalty legislation has miners breathing hard
Click here ...
http://www.mips1.net/mgbe03.nsf/UNID/DTHE-5SJGQH
Harmony's Swanepoel ponders royalty wildcard
Harmony Gold's proposed merger with ARMgold means the combined unit would be sufficiently black-owned to qualify as an empowerment company – a status that would allow it to convert its mineral rights to a long-term 30-year tenure.
Click here ...
http://www.mips1.net/mgbe03.nsf/UNID/DTHE-5SJGWK
Royalty Bill still blocking dealflow
Mining groups are engaged in frenzied discussions with potential empowerment partners to ensure compliance with empowerment new legislation, but deal flow is only likely to come once the final royalty bill is tabled
Click here ...
http://www.mips1.net/mgbe03.nsf/UNID/DTHE-5SJGZ9
UK disturbed by royalty rumblings
UK investors absorb charter but are sceptical of royalty plans
Click here ...
http://www.mips1.net/mgbe03.nsf/UNID/DTHE-5SJGUF
Legislation essential: a Canadian perspective
Canadian investor says empowerment is sustainable
Click here ...
http://www.mips1.net/mgbe03.nsf/UNID/DTHE-5SJGT5
Creating SA mining's future
The unveiling of the blueprint was the start of a new era
Click here ...
http://www.mips1.net/mgbe03.nsf/UNID/DTHE-5SJH5W
$385.40
London closes at 12 Noon Eastern..., if gold were going to drop (due to lease rates hypothesis) should have done it between Noon and 1:30 Eastern...
I covered, but should not be much downside risk holding your KGC short... If you have a bunch of gold juniors, then KGC should continue to be a good hedge if you are unsure about potential direction of POG and HUI...
covered KGC, out the roundtrip commission...
POG closing on the highs...
INM (International Northair) Analysis
http://www.investorshub.com/boards/read_msg.asp?message_id=1619797
talked to the company today...
Rainy season in Mexico will preclude road construction/start of drilling until at lease mid-December, but should begin by the end of January... Plan to drill 10 holes (El Tesoro Project) for about $250K or so... Based on those results, should have a much better idea whether this is a mine or not... If results are good, then can expect additional 10 holes or so to be drilled immediately thereafter... These will be the first drill holes on the property, up to now just trenching. Given the 20 holes come up with positive results, can expect a scoping study in 4Q04.
INM still has no idea whether they will identify a high grade close to surface resource or a deeper and low grade resource. Still very much a crapshoot... Gold to Silver content should be around 7:1.
Rick Rule/Exploration Capital Partners has been the 25% shareholder in INM (Prudent Bear Fund is large investor in Exploration Capital). On this last PP, however, my understanding is Rick Rule did not participate and most of this PP went to individual investors so that more trading liquidity would be available. Few, if any, funds participated in this latest PP. INM management just received a healthy chunk of new options at C$.69, so current price may be a good entry point (doubt they would want options at a strike price that was too pricey...)
FWIW, INM believes recovery rates on this mine will be above 85% based on their initial tests; 85% recovery rate is high for Mexico. The INM president is a geologist rather than a finance type, which is somewhat refreshing...
Now let's assume that EVERYTHING goes right. INM uses its $2M+ cash balance and drills the 20 holes, the results are good, and a scoping study completed in 4Q 2004 identifies a 1M ounce resource (over 1M ounces is very possible, but remember less than 300K ounces is also very possible and thus this mine is NOT economic). Here are the market cap per resource ounce metrics:
The Upside
At a $7.07 market cap to resource ounce, INM would likely be a triple in share price (given they identify the 1M ounce resource, everything goes right...). Alamos (AGI) is currently trading at a $21.23 market cap to resource ounce and MFN is trading at a $50.13 market cap to resource ounce. Both Alamos & MFN are Mexico based mines (like INM) so are a very good comparable to where INM should be trading via this resource ounce metric...
The Downside
If the El Tesoro project is not economic, INM still has the 2 other mining projects as fallbacks, so the stock price should not be going to $0, worst case would likely be a 50% drop IMO.
Some comments from Claude at Ormetal (highly recommend a subscription to Ormetal Report http://www.ormetal.com/en/report.html ):
"Seven distinct zones of classic low sulphidation epithermal gold and silver mineralization in zones ranging from under one metre to over 15 metres in true width have been identified from a series of mapping and sampling programs. The zones are exposed in erosional windows as well as in numerous small gambusino workings; detailed continuous sampling has returned results of up to 9.33 grams per tonne gold and 32.6 g/t silver over 10 metres. Propertywide, the company has taken a total of 474 rock chip samples to date, with a project average of 5.18 g/t gold and 37.36 g/t silver.
Although INM has not yet defined a gold resource at El Tesoro, current exploration results suggest that the property could host a significant deposit. With only 12 millions shares issued and outstanding and near $3 millions in cash and other current assets, we are upgrading INM to a speculative buy."
IMO, the INM upside potential far exceeds the downside risk given the positive trenching results to date. INM is still very much a crapshoot, but the risk reward ratio is very appealing for risk tolerant investors.
yep, my total longs (including core) are more like 15x my short in KGC..., but my KGC short is about 1:3 my gold trading shares...
FWIW, I am more of a fundamental analysis than technical analysis type of investor..., but I see a potential double top in KGC especially if POG gets whacked...
just make sure gold longs are 3 to 5 times your short in KGC...
this is only a partial hedge for me... if gold does not tank today by the close, brought about by my leasing hypothesis, then I will certainly close out this KGC short at a loss... and will still be up for the day given the rise in HUI thus far.
FWIW, watch POG after London closes...
taking a walk on the wild side...
shorted KGC as a hedge against my sizeable long gold positions and expected whacking of gold this afternoon...
most consistent website on the internet...
http://www.chesapeakegold.com/
Gold Lease Rate alert...
as posted, be very wary when lease rates rise..., indicates there is physical that may come to market...
well, the good news is they think C$.69 is a good strike price to get their new options...
the bad news is of course more dilution...
could you add this link to the i-box info for INM please...
http://www.sedar.com/command_servlet?cmd=DisplayCompanyDocuments&issuerNo=00004742&lang=EN
Resource Opportunities GBN writeup...
http://www.greatbasingold.com/i/pdf/UpdateGBG.pdf
Today's news release was IMO just a re-hash of prior news, no new information here...
http://www.greatbasingold.com/gbg/NewsReleases.asp?ReportID=69858
Of more significance, Embry recommending GBN is a plus, have not listened to him yet... FWIW, Embry when he was with RBC was a 10% owner of GBN and participated in all the PP's to retain that ownership. With Embry recommending GBN, it would stand to reason that he has established a new GBN position now at Sprott...
here's real audio link to humor you, a bit dated...
http://www.macreport.net/ram_meta_files/GBGLF.ram
FWIW, sure wish GBN could get a RBC, Haywood, Yorkton analyst writeup... The analysts following GBN are mediocre, IMO... (and LOM is certainly not one of my favorites). We need a research report with capex costs, cash costs, and better resource calcs...
GBN, just a hunch...
Embry via RBC owned a 10% position of GBN and participated in each of their PP to retain that 10%. Now, as you know, he has moved over to Sprott... My guess is Embry may well have gotten a few million shares of GBN via the selling SouthGold shareholders (this has yet to be announced, there was a 20 day acceleration clause so SouthGold shareholders must exercise their US$.75 warrants).
In any event, my math indicates the 45 day period will end Nov 8 (45 days after the 20 days that GBN traded over US$1.50 average stock price). There will likely be a news release around that date and we will know who bought those SouthGold warrants... Since Embry apparently recommended GBN today, he is a leading contender...
FWIW, my understanding is RBC still holds all their GBN shares. Post Embry, RBC is changing their investment style and buying producers only for the most part and not so much exploration plays anymore. However, since GBN is scheduled to go into production at Ivanhoe in 2004, RBC decided to retain all their GBN shares is my understanding...
doubled my CKG position in my IRA... was trying to add AGI @ C$2.65 to C$2.75 before Embry opened his big fat mouth... figured I better add to CKG now before Embry starts recommending it... actually, this is my first purchase of CKG in my IRA, got the rest of it via Francisco...
most likely mutual funds fiscal year end (Oct 31) driving some of these large crosses here recently...
quit posting my trades, was hoping you wouldn't notice that 30M share purchase I made... lol
not much to listen to, but good to hear a voice...
FWIW, fiscal 2Q03 quarterly now out (Aug 31, 03)
http://www.northair.com/international/images/INM%202Q%202004.pdf
FWIW, added to INM today @ US$.515
how about an audio report...
http://www.macreport.net/ram_meta_files/inm.ram
GBN...
FWIW, not much news here, all of this press release is old news...
GBN news...
Great Basin Announces Likely Cut-Off Grades for Mineral Resources in Burnstone Area 1 Gold Deposit
VANCOUVER, British Columbia, Oct 21, 2003 (BUSINESS WIRE) --Ronald W. Thiessen, President and CEO of Great Basin Gold Ltd.(AMEX:GBN)(TSX:GBG) is pleased to announce additional details on theindependent resource estimate for the Area 1 gold deposit at theBurnstone Project in the Witwatersrand goldfield of South Africa.
The Company's goal for the Burnstone project is to define andengineer a classic multi-million ounce Witwatersrand gold mine withproduction in the range of 200,000-400,000 ounces of gold per year.The first stage is to drill off substantial gold resources, which isbeing successfully achieved through work in several areas on theproperty. Concurrent with this ongoing drilling stage, the Companycommenced preliminary project engineering and mine planning in Area 1,the most advanced deposit on the property, in preparation for afeasibility study.
Great Basin commissioned the independent engineering firm of BehreDolbear & Company to estimate the mineral resource for the Area 1deposit, reported in June 2003. Behre Dolbear was involved in the duediligence acquisition assessment of the Burnstone property in 2002, aswell as making recommendations for the Area 1 drill program. GreatBasin staff and South African consultants compiled the new data, andupdated the geological model for the Area 1 deposit. Behre Dolbear'sresource estimation specialists reviewed the model, updated theestimate and classified the mineral resource based on 57 core holesand 208 valid core hole deflections. The Behre Dolbear team workedunder the direct supervision of James A. Currie, P. Eng., of BehreDolbear, who is the independent qualified person for the resourceestimates.
-------------------------------------------------------------------- AREA 1 MINERAL RESOURCE -------------------------------------------------------------------- AT 1.0 M WIDTH -------------------------------------------------------------------- Cut-off GOLD GRADE CONTAINED Category (CM G/T) TONNES (G/T) GOLD OUNCES -------------------------------------------------------------------- MEASURED 300 15,107,000 6.313 3,066,000 -------------------------------------------------------------------- 350 12,258,000 7.026 2,769,000 -------------------------------------------------------------------- 400 10,275,000 7.657 2,530,000 -------------------------------------------------------------------- -------------------------------------------------------------------- INDICATED 300 8,002,000 7.715 1,985,000 -------------------------------------------------------------------- 350 7,071,000 8.308 1,889,000 -------------------------------------------------------------------- 400 6,465,000 8.735 1,815,000 -------------------------------------------------------------------- -------------------------------------------------------------------- TOTAL 300 23,109,000 6.798 5,051,000 -------------------------------------------------------------------- 350 19,329,000 7.495 4,658,000 -------------------------------------------------------------------- 400 16,740,000 8.074 4,345,000 -------------------------------------------------------------------- -------------------------------------------------------------------- Mineralization at the Burnstone property occurs within theKimberley Reef, one of the four main mineralized horizons in theWitwatersrand goldfield. Standard accepted practice in South Africa isto use a grade-thickness cut-off over a mining width. The resources ata postulated mining width of 1.0 metre width at various cut-offs aretabulated above. Mining widths of 0.8 metres have been achieved inWitwatersrand operations, therefore, the actual mining width for Area1 could be narrower. In the Company's June 18, 2003 news release, theArea 1 mineral resource was reported for a range of cut-off grades upto 400 cm g/t and in the Company's November 2002 release, an inferredresource was reported at a zero cut-off the Area 2. The Area 1 andArea 2 estimates at the 0 cm g/t cut-off were geologically constrainedto demonstrate the extents of the deposits, but were not intended tosuggest that the material at that cut-off is entirely economicallyviable. Since the Area 2 estimate was only presented at a zerocut-off, it cannot be considered a resource at this time.
Based on preliminary engineering studies for Area 1 andcomparisons with other deeper operations, the 350 cm g/t cut-off grade(bolded above) is considered to be a likely scenario. The dilutedgrade for Area 1 at the 350 cm g/t cut-off is 7.5 g/t, and comparesfavourably with grades of 6.27 g/t, 8.08 g/t and 4.93 g/t,respectively, for measured mineral resources at Harmony Gold'soperating mines at Evander, Elandskraal and Randfontein (Harmony 2003Annual Report). The Evander Kimberley Reef deposits are alsoconsiderably deeper (1,900 metres) than at Area 1, where a significantportion of resource lies at a depth of only 250 metres and shouldallow for lower cost operations.
Great Basin has initiated engineering studies, including costestimates, for underground development of the Area 1 deposit. Theindependent firm of Turgis Consulting (Pty) Ltd. is assessing thevarious development options, including a larger-scale,higher-throughput operation with the potential of increased annualgold production.
Area 1 lies within a 15 kilometre northwest-southeast gold trendon the Burnstone property. Since January 2003, Great Basin has carriedout 32,000 metres of infill and step-out drilling in Area 1; over19,000 metres in Area 2 located three kilometres southeast of Area 1;and 5,000 metres in Area 3, located 4 kilometres from Area 2. Drillingis continuing to assess gold concentrations in Area 2 and Area 3 alongthis gold trend. The objective is to delineate additional goldresources and complete new resource estimates that can be added intothe overall project mine planning.
Great Basin's drilling programs include rigorous quality assuranceand quality control ("QA/QC") procedures under the supervision ofqualified persons. Samples are lock-tied during shipment from thelogging shed to the assay laboratory. During sampling, duplicates,blanks and standards are confidentially inserted into the regularsample stream to check repeatability, contamination and competency ofthe analysis. Randomly selected sample pulps are also shipped to anindependent Canadian laboratory for check analysis. Technical reportsdetailing the resource estimates and QA/QC programs are filed onwww.sedar.com.
The Burnstone gold property is located approximately 80 kilometressoutheast of Johannesburg, near the town of Balfour, and has excellentaccess to manpower, electricity and transportation infrastructure. InNovember 2002, Great Basin acquired an option to purchase, up to 100%of Southgold Exploration (Pty) Ltd, which has the right to acquire100% of the Burnstone property.
ON BEHALF OF THE BOARD OF DIRECTORS Ronald W. Thiessen, President and CEO No regulatory authority has approved or disapproved theinformation contained in this news release.
METALLIC VENTURES INC. (MVG : TSX : C$6.45) - BUY - 12-MONTH TARGET PRICE:
C$7.00
Brian Christie
Comment: Metallic Ventures reports on new drill results Metallic Ventures reports on new drill results from the Martinez and Prospectus veins on the Esmeralda property in Nevada. Underground drilling has outlined a new high-grade ore shoot on the Martinez vein, about 300 feet west of the known resource area. A hole from this zone intersected multiple intervals with the best value being 1.0 opt gold and 1.3 opt silver over 3.5 feet. Further drilling on the Prospectus has also yielded additional results that continue to enhance the tenure of the mineralization. The best recent intersection from this area was five feet grading 2.43 opt gold and 10.0 opt silver. Exploration and development continues with the goal of commencing production later in November. New resource/reserve calculations should also be available by year-end. We are maintaining our BUY recommendation and C$7.00 target price.
funny you should ask, forumulated a valuation chart last week or so... TNX is cheap if there is 10M-20M ounces on its properties..., overvalued if less than 5M. 40M ounces have been identified to date in the immediate area they have been exploring... right now, they are valuing TNX as having around 5.3M ounces...
welcome aboard...
US$ - buy donuts
“I would stake my reputation on employment growth happening before Christmas. I’d bet dollars to doughnuts that we’re going to see a pick-up in jobs in the next few months,” Snow told The Times.
http://www.mips1.net/MGGold.nsf/UNID/SBAY-5SHLQW
natgas/Frank: ever taken a look at Bison?
http://www.bisonresources.com/