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Maybe their thought is... why spend these money now instead of spending it when we have the HL working, PDI spin-off done, etc etc?... maybe to take advantage of a better SP and push it higher to get some of the warrants money?
They have done some PR lately that haven't worked advertising future events... so I personally would like to see something that guarantees a SP increase! I'm sure it can be done with facts instead of expectations.
Yes Lo, I'm sure... and thanks PTY for backing up my statement...
We are ruled by Ley Petaquilla... thats why our mine is not affected by anything that happened with Law 8... PDI could have... but as mentioned before... Inmet will get the funds they need from Singapore and Korea... so all is good for PDI as well...
Yes the country needs a mining law, but for now its not an obstacle...
Since Law 8 replaced la older law, and it was repealed... now there is NO mining law...
Governments can invest on mines in Panama at the moment... and they can pay the royalties they like... as a matter of fact... Inmet already said they where going to pay 2% instead of 4% because that was their initial agreement and their is NO law that states how much they need to pay... and they already received funds from Singapore... both of these communications where posted here...
No news yet... the study is not linked to the new law though... it can be done before the law is approved... but I read somewhere the study would be done for September... new law should be passed by then...
Yes, he tried to do it too fast... And yes Cerro Colorado was included by default because the law was done for mining in general... But it's real purpose was so Inmet could develop Cobre Panama...
Then came all the protests etc... And he did what he did because for now He didn't care about Cerro Colorado... Enough with Cobre Panama for his term...
All these is just IMO though...
Appears we got some shot covering this month... to bad SP wasn't affected...
Previous 12 Months Short Interest: PTQ
Data as of 05/16/11
Date Ratio Shares
May 05/16/11 3.30 1.87 M
May 05/02/11 7.60 2.41 M
Apr 04/18/11 7.80 2.40 M
Apr 04/01/11 3.10 2.07 M
Mar 03/16/11 2.50 2.15 M
Mar 03/01/11 4.20 2.09 M
Feb 02/16/11 2.90 2.08 M
Feb 02/01/11 2.40 2.32 M
Jan 01/17/11 2.70 2.08 M
Jan 01/04/11 2.00 1.89 M
Dec 12/16/10 4.40 5.28 M
Dec 12/01/10 0.90 1.52 M
Nov 11/16/10 1.40 2.32 M
BTW I agree with many of your macro factors concerning the junior miners... good posts...
But IMO is as follow, it was all a political move:
1) the repeal of law 8 definitely put a hold on Cobre Panama = NO.. this is what I'm trying to explain... all is working according to plan... Singapore invested their cash as planned, but with a twist... instead of buying Cobre Panama they bought Inmet... same will happen with Korea once the Impact Study is done...
2) Martinelli look like a fool = Maybe outside Panama... here he is a Hero... and that's exactly what he wanted... I didn't realize this until after some time... The PRD was trying to make noise and turn people against his government... He is a smart guy and used this on his favor by repealing the law and making a lot of new friends without affecting Cobre Panama (which was the main player on the new law)...
3) I think he tried to over exceed his political power by sticking Cerro Colorado into law 8, thinking he could pass it and the Indian's had other ideas = The law wasn't meant for Cerro Colorado and he clearly sign a paper for them stating he was not going to mine their lands...
4) He didn't repeal it to please the Indians, he did because they raised enough hell to make him repeal it = i think i answered this for you already...
5) I'm thinking Martinelli will let the new law take it's time and pass when it passes, as opposed to trying to ram it through as he did with law 8 = absolutely right... he doesn't care anymore... he just wanted other governments to invest in Cobre Panama so this project can become a reality and bring billions of dollars to Panama... And he found a way to do it easier...
The repeal had nothing to do with Inmet and Cobre Panama, it was a political move to please the Indians on Cerro Colorado and say F*CK YOU to the PRD...
The Law 8 was proposed and passed specifically for the development of Cobre Panama...
Maybe this limbo period was done on purpose... who knows...
Inmet got part of the cash they needed and its a good thing!
Know I haven't post for a while but feel a need to say something about this...
No one has even said anything to acanuck for this important post!
Law 8 was passed with its main purpose being that Inmet could develope their $5 billion Copper Project...
The most debated issue about the Law 8 was that Governments would be allow to invest in Panamanian Mines through Corporations owned by them... Inmet needed money from Singapore and Korea...
The Law 8 was passed very quickly, completely replacing the previous law from 1970's...
Couple of weeks later Martinelli took down Law 8 creating a "limbo" period for Panama Mining... No law rules Mining until a new law is passed... This action also scared investors because of the "political risk" Panama now has... This incident was the single most significant news for our SP to come down...
Now acanuck has posted a news that Inmet has actually received funds from Singapore, in other words saying "all is good, Law 8's repeal does not affect Panama's Mining and all is working according to plan"... This fact counters the news that lead to our most important SP drop and no replies on the board! come on! whats happening!?
Hey VB, no its not ours yet but will soon be... a vote is needed for that...
We only have a letter of intention... once the deal is passed we will get to see the real picture of IRC and what a good deal we got!
Awsome post pty...
We will soon see contracts between Minera Panama and PDI, leading to a PDI spinout...
Could some1 show us L2s for PTQMF please?
No idea... if you find one let me know
PETAQUILLA MINERALS LTD ("PTQ-T")
- TSX Short Positions on 2011/04/30 2,412,892 15,124
//st
Net Total Last Total Price
Date Change Shorted Price Volume Range
----------------------------------------------------------------------------
2011/04/30 15,124 2,412,892 - - - - -
2011/04/15 327,834 2,397,768 - 306,700 0.91 - 0.97
2011/03/31 -82,145 2,069,934 0.93 3,436,100 0.87 - 1.02
2011/03/15 58,679 2,152,079 0.85 10,286,200 0.85 - 1.12
2011/02/28 17,642 2,093,400 1.14 4,885,200 1.14 - 1.25
2011/02/15 -242,340 2,075,758 1.27 4,737,300 1.16 - 1.27
2011/01/31 241,135 2,318,098 1.14 11,274,600 1.14 - 1.24
2011/01/15 185,655 2,076,963 1.17* 8,340,000 1.00 - 1.21
* - Indicates that the closing price used is the last non-zero
closing price and is not the closing price on the report date.
//et
Source: TSX
________________________________________
TSX closing price for PTQ
Date: 2011/05/04
Closing Price: 0.750
TSX Top 10: As of market close on May 4, 2011
(Toronto Stock Exchange) -- TORONTO (TSX) -- Top 10 Net
Buys by Volume
Legend: Company Name/ Trading Symbol/ Insider Buys Volume/
Insider Sells Volume/ Net Buys Volume
BAJA MINING CORP BAJ 929,900 0 929,900
AVION GOLD CORPORATION AVR 824,000 0 824,000
CAPSTONE MINING CORP. CS 500,000 0 500,000
KIRKLAND LAKE GOLD INC KGI 176,200 0 176,200
BENNETT ENVIRONMENTAL INC NEW BEV 100,000 0 100,000
GROUPE AEROPLAN INC. AER 76,000 0 76,000
CGI GROUP INC GIB'A 71,400 0 71,400
CITADEL INCOME FUND CTF.UN 57,300 0 57,300
EXCELLON RESOURCES INC EXN 47,000 0 47,000
CORVUS GOLD INC. KOR 45,000 0 45,000
------------------------------------------------------
Top 10 Net Sells by Volume
Legend: Company Name/ Trading Symbol/ Insider Buys Volume/
Insider Sells Volume/ Net Sells Volume
GRANDVIEW GOLD INC GVX 0 251,000 251,000
AVALON RARE METALS INC AVL 0 52,000 52,000
PETAQUILLA MINERALS LTD PTQ 0 35,500 35,500
WESTERN COPPER CORPORATION WRN 0 29,200 29,200
5N PLUS INC VNP 0 21,800 21,800
ST ANDREW GOLDFIELDS LTD SAS 0 19,300 19,300
FORTUNA SILVER MINES INC FVI 0 17,600 17,600
VERO ENERGY INC VRO 0 10,000 10,000
OSISKO MINING CORPORATION OSK 0 8,100 8,100
DALRADIAN RESOURCES INC DNA 0 6,300 6,300
------------------------------------------------------
Top 10 Net Buys by Value
Legend: Company Name/ Trading Symbol/ Insider Buys Value$/
Insider Sells Value$/ Net Buys Value$
NATIONAL BANK OF CANADA NA 2,943,089 0 2,943,089
KIRKLAND LAKE GOLD INC KGI 2,415,943 0 2,415,943
CAPSTONE MINING CORP. CS 1,895,000 0 1,895,000
CGI GROUP INC GIB'A 1,446,445 0 1,446,445
BAJA MINING CORP BAJ 1,164,542 0 1,164,542
AVION GOLD CORPORATION AVR 1,129,120 0 1,129,120
TIM HORTONS INC. THI 1,111,043 0 1,111,043
GROUPE AEROPLAN INC. AER 978,530 0 978,530
FAIRFAX FINL HLDGS LTD FFH 812,166 3,024 809,142
ATCO LTD ACO'X 500,602 0 500,602
------------------------------------------------------
Top 10 Net Sells by Value
Legend: Company Name/ Trading Symbol/ Insider Buys Value$/
Insider Sells Value$/ Net Sells Value$
AVALON RARE METALS INC AVL 0 445,000 445,000
CANADIAN TIRE (NON VTG A) CTC'A 0 279,095 279,095
5N PLUS INC VNP 0 193,148 193,148
ASTRAL MEDIA INC ACM'A 0 170,687 170,687
SILVER STANDARD RES INC SSO 0 136,440 136,440
STANTEC INC STN 0 112,402 112,402
OSISKO MINING CORPORATION OSK 0 107,607 107,607
ROGERS COMMUNICATIONS INC RCI'B 0 97,819 97,819
WESTERN COPPER CORPORATION WRN 0 97,286 97,286
FORTUNA SILVER MINES INC FVI 0 86,506 86,506
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I award this "POST OF THE DAY!"
LOL!
It's funny Lo... I'm sure directors don't even want to do anymore PRs... this crazy sell-off has no base!
Anyone in this board any good at PR? we should postulate someone to see what happens...
Hey Lo,
I was the one mentioning LEXG... after that.. I started reading on this company and found that their new CEO, Alex Walsh, is apparently a very good marketing and PR guy...
He pushed the stock from 0.07 cents to 10.68 out of NOTHING but good marketing...
As MJ said, it might be a scam... but either way, we need a guy like this!!!
It would be a very good combination to have an operating mine generating profits after only a year... and PR-oriented officer like Walsh...
btw its already back to 6.47 as I type this post lol...
in the same day it went from 10.45 to 3.50... back to almost 7... then down to 4... crazy volatility with high volume... +20 million shares changed hands that day!
was that copper mine by any chance Petaquilla Copper? lol
history will repeat itself... patience!
small traders then lol... the volume has been pathetic for a while and I dont think traders are able, or willing, to make big money timing this non-liquid stock...
so I totally agree with MJ... people who has serious money on the company are holding and maybe buying from small scared investors who don't bother to do their own DD...
I, like everyone else, want to see the stock price in $10 so I can retire early... but since Martinelli's political move with law 8, our plans have been delayed... we just have to learn to deal with it... It did not affect us, but well.... it happened... some people got scared and others took advantage of the situation...
I still hope we can see it on $3 this year!
we all did MJ!!
Bloomberg
Item 25(j)
Mine Life: Mine life for the mill is 4.5 years; mine life for the heap leach operation is 2.7 years; and mine
life for the aggregate sales is 6 years. The life of the mill and the heap leach operations is expected to be
extended by ore from adjacent deposits currently being evaluated.
Exploration Potential:
• Botija Abajo is the more advanced exploration project near Molejón. It is the natural
possible source of gold feed to the process plant to extend the mine life at Molejón. The
authors recommend that further analysis and validation of the Mineral resources
estimated at Botija Abajo be carried out. Provided that the results are favorable, it is
recommended that metallurgical testing be continued and scoping studies be carried out
to define the potential economic interest of the deposit,
• Evaluation of the Brazo deposit would be the following recommended activity,
considering its closeness to Molejón and its particular Indicated resources of 71 million
tonnes with a particularly high gold/copper ratio.
• Considering the preliminary geochemical and exploration drilling results, it is
recommended that exploration be continued to identify sizable targets in the Oro del
Norte area. It is noted, however, that this area is isolated 22 km away from the Molejón
process plant and infrastructure and lacking of any infrastructure.
Item 25(h) Economic Analysis:
A cash flow spreadsheet model of the Molejón gold and aggregate operation has been prepared by Behre
Dolbear.
Input consists of the expected movement of overburden, some of which will be sold as aggregate plus the
movement of material to the mill and movement of material to the heap leach. These input items are
discussed in detail elsewhere in this document, but in summary, 79.8 million tonnes will be mined, of
which 9.4 million tonnes will be sent to the mill; 5.9 million tonnes will be sent to the heap; and
29.4 million tonnes will be sold as aggregate. From 643,266 ounces fed to the heap and mill,
585,800 ounces of gold are recovered and sold.
Operating costs are developed elsewhere in this document. In summary, input operating costs consist of
$2.09/t of ore or waste; $16.95/t processed for gold milling plus milling G&A; $5.50/t for heap leaching
and leaching G&A; $6.50/oz for gold transport; $2.97/t for jetty stone production, and $3.20/t for other
aggregate production. Some of these costs include the cost of leased equipment.
Most of the capital investment was made prior to 2011, but expansion capital is necessary for the
aggregate production and expansion of leaching and milling facilities. For aggregate production,
$5.250 million is included in 2011, and for expansion of milling and leaching, $34.239 million is included
(spread over 6 years).
The structure of the cash flow spreadsheet first shows production of gold and aggregate; next, the income
from sales of all products is determined. From the income, the operating costs for mining, milling,
leaching, and aggregate production are deducted. These operating costs include payments for leased
equipment and a royalty of 9% on gold sales. The cash operating costs are subtotaled. Next, depreciation
of capital investments is determined. A 10-year straight-line depreciation is used for tax purposes.
Net income before taxes is income from sale of all products less cash operating costs less depreciation.
After taxes are determined, depreciation is added back to the cash flow stream to determine the net
income from operations. Capital investments are then deducted to determine the net cash flow. Net
present value of the cash flow is shown for various discount rates, varying from 0% (no discounting) to
25%. For example, net present value at a discount rate of 8% is $383 million.
Item 25(i) Payback:
Payback occurs early in the second year (2012), after the mill throughput is increased and the heap leach
operation starts up. Because many of the new items are leased rather than purchased up front and the lease
payments are spread over the several years, payback is much quicker than if the capital items were all
purchased initially. In the latter case, however, payback would still take place in 2012, albeit later in the
year.
To download the full report click bellow:
https://www.yousendit.com/download/MEtSeVdqb0IzS3J2Wmc9PQ
CAPITAL COSTS
Capital expenditures required to accomplish the planned expansion program include a crushing plant for
the 2.2 million tonnes per year heap leach operation; a second crushing plant for production of the
aggregate; construction of a heap leach pad and a pregnant solution processing plant; and all equipment
required to expand the current mill in two stages to 7,900 tpd by 2014. PML has solicited quotations for
the majority of this required equipment, which Behre Dolbear has reviewed, and a considerable quantity
of it has already been ordered. PML has made financing arrangements to pay for all of the equipment
utilizing two separate leases, one for the mill expansions and the other for the heap leach plant and pad.
Details of the annual lease payments and the up-front capital expenditures are shown in Table 25.6.
Capital costs, including interest paid on the leases, total just under $40 million.
22.0 RECOMMENDATIONS
22.1 METALLURGICAL STUDIES RECOMMENDATIONS
Metcon recommended that column rinsing be initiated on all of the large columns at Molejón.
Care will be needed to ensure that any oxidation of the sulfides in the fresh material will not produce any
acid solutions at the end of the heap leach. The preponderance of highly alkaline oxide leached material
should be sufficient to ensure that there is more than sufficient chemical capacity to neutralize any acid
generated by oxidation of the low-grade sulfiitic material. It is recommended that this issue be given
further study to confirm this conclusion during the heap leach planning phase.
22.2 MINERAL RESOURCE AND RESERVE RECOMMENDATIONS
Behre Dolbear recommends that for feasibility level analysis, the resource and reserve model be updated
after further refinement of the database, statistical review of the assays, and evaluation of the estimation
methods.
22.3 EXPLORATION PROJECT RECOMMENDATIONS
Botija Abajo is the more advanced exploration project near Molejón. It is the natural possible source of
gold feed to the process plant to extend the mine life at Molejón. The authors recommend that further
analysis and validation of the Mineral resources estimated at Botija Abajo be carried out. Provided that
the results are favorable, it is recommended that metallurgical testing be continued and scoping studies be
carried out to define the potential economic interest of the deposit.
Evaluation of the Brazo deposit would be the following recommended activity, considering its closeness
to Molejón, and its Indicated resources of 71 million tonnes with a particularly high gold/copper ratio.
Considering the preliminary geochemical and exploration drilling results, it is recommended that
exploration be continued to identify sizable targets in the Oro del Norte area. It is noted, however, that the
area is isolated 22 km away from the Molejón process plant and infrastructure and lacking of any
infrastructure.
19.5 RESOURCE AND RESERVES CONCLUSIONS AND RECOMMENDATIONS
Behre Dolbear concludes that the Petaquilla property contains 33.3 million tonnes of measured plus
indicated resources averaging 0.86 g/t gold using a cutoff of 0.20 g/t gold.
Through check work, Behre Dolbear verifies that the portion of the resource block model used for the pit
design is a reasonable representation of the in-situ tonnes and grade. The estimated resource ounces
shown in Table 19.7 are an in-situ resource; they do not include factors for mine losses and dilution.
Behre Dolbear believes that it is possible that the Geovectra model could be predicting slightly higher
grades than will actually be mined, and this represents a low-medium risk to the project. While extensive
checking of the model has not been done by Behre Dolbear, it is believed that only minor problems with
the model still exist. The problems are not significant and Behre Dolbear believes the model is sufficient
for a pre-feasibility economic pit design and reserve estimate.
Using the resource model provided by PML, Behre Dolbear determined the potential tonnes and grade of
reserves in an optimized pit and generated mine plan. From this work, Behre Dolbear believes that
Molejón has reserves that are economically minable. Based on the pre-feasibility level design work,
Behre Dolbear believes there are approximately 15.3 million tonnes of reserves that can be produced
averaging 1.30 g/t gold and ontaining approximately 643,000 ounces of gold, based on the projected
aggregate sales.
Behre Dolbear recommends that for the feasibility level analysis the resource and reserve model be
updated after further refinement of the database, statistical review of the assays, and evaluation of the
estimation methods.
Behre Dolbear believes that the mine will be able to produce the projected 643,000 ounces.
3.16 EXPLORATION PROJECT RECOMMENDATIONS
• Botija Abajo is the more advanced exploration project near Molejón. It is the natural
possible source of gold feed to the process plant to extend the mine life at Molejón. Theauthors recommend that further analysis and validation of the Mineral resources
estimated at Botija Abajo be carried out. Provided that the results are favorable, it is
recommended that metallurgical testing be continued and scoping studies be carried out to define the potential economic interest of the deposit,
• Evaluation of the Brazo deposit would be the following recommended activity,
considering its closeness to Molejón and its particular Indicated resources of 71 million tonnes with a particularly high gold/copper ratio.
• Considering the preliminary geochemical and exploration drilling results, it is
recommended that exploration be continued to identify sizable targets in the Oro del
Norte area. It is noted, however, that this area is isolated 22 km away from the Molejón
process plant and infrastructure and lacking of any infrastructure.
3.12 PIT OPTIMIZATION
With these results in hand, Behre Dolbear re-ran the pit optimization and life-of-mine (LOM) schedule
developed by a Petaquilla outside consultant using the same parameters as those used by him. Behre
Dolbear developed capital and operating costs for the new heap leach operation, designed a main haulage
ramp to the pit bottom, included 10% dilution and an ore loss of 3%, developed a new LOM schedule,
and ran a cash flow sheet for the operation to demonstrate the project economics.
3.13 AGGREGATE SALES PROJECT
With the purpose of evaluating the economic effect of selling waste material for use as aggregate
construction products, PML provided information to Behre Dolbear regarding the estimated sales of
aggregate materials, predominantly to Minera Panamá, S.A., for use in the construction of the Petaquilla
copper mine, located only 4 km from Molejón. Based on available pre-Feasibility studies by Minera
Panamá, PML has calculated that over 29.0 million tonnes of aggregate material can be sold through the
construction period. PML has also provided a letter of intent from SAM Heavy Equipment and Solutions
Corp., a Panamanian company, to purchase 2.8 million tonnes of aggregates over the next 5 years.
Using the Molejón resource model provided by PML, Behre Dolbear determined the potential tonnes,
grade of reserves in an optimized pit, and generated a mine plan. From this work, Behre Dolbear believes
that Molejón has economically mineable reserves, which are economically minable. Based on
prefeasibility level design work, Behre Dolbear believes that the project has approximately 15.3 million
tonnes of reserves that can be produced averaging 1.30 grams of gold per tonne and containing
approximately 643,000 ounces of gold based on the projected aggregate sales.
3.14 PROCESS-RELATED STUDY RECOMMENDATIONS
Care will be needed to ensure that any oxidation of the sulfides in the fresh material will not provide any
acid solutions at the end of the heap leach. The preponderance of highly alkaline oxide leached material
should be sufficient to ensure that there is more than sufficient chemical capacity to neutralize any acid
generated by oxidation of the low-grade sulfiitic material. It is recommended that this issue be given
further study to confirm this conclusion during the heap leach planning phase.
3.15 MINERAL RESOURCE AND RESERVE RECOMMENDATIONS
The authors recommend that for feasibility level analysis, the resource and reserve model be updated after
further refinement of the database, statistical review of the assays, and evaluation of the estimation
methods.
from report: BEHRE DOLBEAR & COMPANY (USA), INC
MOLEJÓN PROJECT
NI 43-101 TECHNICAL REPORT
DONOSO DISTRICT, COLON PROVINCE
REPUBLIC OF PANAMÁ
80° 38 46WLONGITUDE AND
8° 48 N LATITUDE (972,650N, 538,850E UTM
-------------------------------------------------------------
3.9 SAMPLING PROCEDURES
In order to verify the reliability and compliance with Canadian National Instrument (NI) 43-101 standards
of the early drilling campaigns at Molejón, PML hired AAT Mining Services to ensure that PML drilling,
trenching, and survey activities were conducted to standards suitable for NI 43-101 reporting. AAT
concluded that the 1990’s drilling program was adequately validated by a drill hole twining campaign in
2006 and that 2007 drill core samples were analyzed to industry standards with minimal variance of
protocols or analytical results.
3.10 QUALITY ASSURANCE/QUALITY CONTROL (QA/QC)
A QA/QC protocol was established by PML at Molejón through the insertion of standard, blank, and
duplicate samples, with the objective of providing credibility to the database. It is the authors’ opinion
that sampling procedures and control during the PML 2006 and 2007 campaigns followed Industry
Standards and provided reliable samples and assay results for the purpose of Resource and Reserve
estimates following NI 43-101 standards.
3.11 ORE RESERVES AND MINERAL RESOURCES
Geovectra, S.A. (Geovectra) completed a geologic model and a NI 43-101 compliant resource estimate in
August 2009 for PML and issued a reserve estimate based on that model in March 2010. Based on the
revision of the Geovectra Block Model, Behre Dolbear & Company, Inc. (Behre Dolbear) concluded that
the Molejón deposit contains 33.3 million tonnes of measured plus indicated resources averaging
0.86 grams of gold per tonne using a cutoff of 0.20 grams of gold per tonne.
Metallurgical data obtained from nine crushed core column leach tests indicates that samples of various
portions of the low-grade mineralized material at Molejón are amenable to heap leaching with good to
excellent recoveries for the oxide material (80% to 98%) and modest recoveries for the fresh primary
sulfide ore (38% to 53%). These extractions were achieved with modest cyanide consumption (0.40 kg/t
to 0.93 kg/t) and modest lime (calcium oxide) consumption (0.76 kg/t to 4.81 kg/t).
Grats on your new job Lo!
I saw it today!
10k in march are 1m now!
it would be awesome to have the same story of LEXG happen to us next week!
Question of the day: Why wasn't I invested on LEXG???????
Lo, maybe its time to change this sticky for the new one? :)
Bloomberg News, sent from my iPad.
Gold Gains to Record as Fed Maintains Stimulus, Dollar Declines
April 28 (Bloomberg) -- Gold advanced to a record after the U.S. Federal Reserve pledged to keep interest rates near zero to bolster the recovery, weakening the dollar and boosting demand for precious metals as an alternative investment.
Fed Chairman Ben S. Bernanke signaled yesterday that the central bank will maintain monetary stimulus. The Fed kept its target rate for overnight lending between banks at zero to 0.25 percent, while saying it will end $600 billion of bond purchases on schedule in June.
“The tone from the Fed remains dovish with a continued focus on maintaining growth in the economy and conviction to complete QE2,” said Daniel Brebner, a London-based analyst at Deutsche Bank AG. “This is resulting in further weakness in the U.S. dollar. Also, inflationary threats may be seen to be building as the Fed continues to sit on the sidelines. This is pushing gold and silver higher today.”
Immediate-delivery gold gained as much as 0.4 percent to $1,534.05 an ounce, and traded at $1,532.53 at 10:05 a.m. in London. Bullion for June delivery in New York rose as much as 1.2 percent to $1,535.10 an ounce, an all-time high.
Gold may rise above $1,800 by the end of 2011, Brebner said. “A price of higher than $2,000, maybe approaching $2,500, is possible into 2012 if there are not significant changes to global monetary policy,” he said.
The dollar fell beyond $1.48 per euro for the first time since December 2009 after the Fed’s pledge. The U.S. Dollar Index, which tracks its value against six counterparts, declined for an eighth day to the lowest level since July 2008.
Libyan Fighting
Gold has gained 7.9 percent this year, extending a decade- long advance, the best run since at least 1920 in London, as concerns over currency debasement and accelerating inflation fueled investor demand. Fighting in Libya and sovereign-debt turmoil in Europe have also contributed to the rally this year.
Gold may rise to $1,650 an ounce in 12 months as investment demand increases on the back of low interest rates, Credit Suisse Group AG said yesterday, raising its estimate from $1,550 an ounce.
Assets held in gold exchange-traded products were little changed at 2,069.98 metric tons yesterday, compared with record holdings of 2,114.6 tons reached in December, according to data compiled by Bloomberg.
“Gold remains in a stable uptrend,” Tobias Merath, Zurich-based head of commodity research at Credit Suisse, wrote in a monthly report yesterday. “We expect to see a renewed increase in investment demand over the coming month.”
Silver for immediate delivery strengthened 0.4 percent to $48.0263 an ounce, gaining for a second day. The metal reached a record $49.79 on April 25. Palladium rose 0.6 percent to $772.50 an ounce, while platinum was little changed at $1,826.75 an ounce.
To contact the reporters on this story: Maria Kolesnikova in London at mkolesnikova@bloomberg.net Kyoungwha Kim in Singapore at kkim19@bloomberg.net .
To contact the editor responsible for this story: Claudia Carpenter at ccarpenter2@bloomberg.net .
You are welcome VB...
Everything indicates we did a great deal!
the tsx standard valuation appears to be $20 so.. what a deal!
http://www.munknee.com/2010/02/how-to-value-a-junior-miners-gold-in-the-ground/
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How to Value a Junior Miner’s Gold in the Ground
February 1, 2010 by Editor
At any given time, we know the international spot price for an ounce of refined gold but what about the gold an exploration or mining company has in the ground – how do we value that? Words: 748
In further edited excerpts from the original article* Louis James and Andrey Dashkov (www.CaseyResearch.com) go on to say:
There are several different ways to value a junior miner’s gold in the ground:
1. Given sufficient data, you can estimate a reasonable net present value (NPV) for a project and deduce what each of the company’s ounces should be worth. To do this, you need to know annual output of the proposed mine, proposed capital expenditures, energy and other costs, and many more things. Unfortuneately, for most deposits held by the junior companies we tend to follow, there’s just not enough data available.
2. Another approach is to compare the value the market is giving a company per ounce of gold in hand against the average value the market gives companies with similar ounces. The most obvious way to define “similar” ounces in the ground is to use the three resource and two mining reserve categories defined by Canada’s National Instrument NI43-101 regulations – the industry standard. These are combine these into three broad groups:
a) Inferred:
The lowest-confidence category, based on just enough drilling to outline the mineralization.
b) Measured & Indicated (M&I):
These higher-confidence categories have been drilled enough to establish their geometry and continuity reasonably well.
c) Proven & Probable (P&P):
These are bankable mining reserves – basically Measure and Indicated resources with established value.
So, what does the market give a company, on average, for an Inferred ounce of gold? M&I? P&P?
To answer this, we combed through every company listed on the Toronto Stock Exchange (TSX) and the TSX Venture Exchange (TSX-V) and pulled out the ones with 43-101-compliant gold resource estimates (or mostly gold) – no silver, copper, etc. Of these, we kept only those with resources that fall almost entirely into only one of our three broad groups: Inferred, M&I, and P&P leaving us with about 90 companies to calculate some averages on and we got these numbers:
• US$20 per ounce Inferred
• US$30 per ounce for M&I
• US$160 per ounce for P&P
Armed with this information, if you didn’t know anything else about an M&I resource (political risk, type of ore, etc.), but you saw that the company that owned it was trading at $10 per ounce, whereas its peers are valued at around $30 an ounce, you can conclude that there must either be something very wrong with the project or the stock is a great speculation.
If there’s nothing wrong with the project, there’s an implied growth potential in the stock price, based on the difference between what the company is getting per ounce and the market average for similar ounces. In this case, it would be:
$20 x # Ounces ÷ # shares.
As a matter of perspective, a few years ago the market was giving a company about $25 per ounce Inferred, $50 for M&I, and about $100 for P&P. Then, when gold ran up over $1,000 before the crash of 2008, these valuations went out the window, and some companies were getting over $100 for merely Inferred ounces – do we have your attention now?
Conversely, just after the crash, there were companies having a hard time getting $10 for M&I. That was clearly a sign that it was time to buy, and we did, with gusto.
It’s also why, when the Mania phase gets underway, we’ll be selling into it as gold approaches the top; we will not be attempting to time the top. It’s far better in this business to be a day early than a day late.
Today, the market is willing to pay more for advanced and producing stories ($160 P&P) but is discounting earlier-stage stories, hence the lower M&I valuation than in previous years ($30). These figures will change again as the market’s appetite for risk changes.
Bottom line
We often get asked what an Inferred, or M&I, or P&P ounce is worth in the ground. The $20, $30, and $160 figures are only rough guides, and you must consider the reasons why some ounces are given more or less by the market, but they’re a good starting point.
*http://www.stockhouse.com/Columnists/2010/Feb/1/Valuing-a-junior-miner-s-gold-in-the-ground
Editor’s Note:
- The above article consists of reformatted edited excerpts from the original for the sake of brevity, clarity and to ensure a fast and easy read. The author’s views and conclusions are unaltered.
- Permission to reprint in whole or in part is gladly granted, provided full credit is given.
- Sign up to receive every article posted via Twitter, Facebook, RSS feed or our Weekly Newsletter.
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Petaquilla Minerals Ltd.: TSX Grants Conditional Approval for
the Acquisition of Iberian Resources Corp.
NEWS RELEASE TRANSMITTED BY MARKETWIRE
FOR: Petaquilla Minerals Ltd.
TSX SYMBOL: PTQ
OTC Bulletin Board SYMBOL: PTQMF
FRANKFURT SYMBOL: P7Z
April 26, 2011
Petaquilla Minerals Ltd.: TSX Grants Conditional Approval for the Acquisition
of Iberian Resources Corp.
VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 26, 2011) - Petaquilla
Minerals Ltd. ("Petaquilla" or the "Company")
(TSX:PTQ)(OTCBB:PTQMF)(FRANKFURT:P7Z) announced today that it received
conditional approval by the Toronto Stock Exchange ("TSX") on April
19, 2011 for the acquisition of Iberian Resources Corp. ("Iberian")
as per the terms previously announced by the Company on April 6, 2011
("Petaquilla Minerals Ltd. Enters Letter of Intent with Iberian Resources
Corp.").
Iberian is a private British Columbia company that owns 100% of the Lomero
Poyatos mine through its wholly-owned Spanish affiliate Corporacion de Recursos
Iberia S.L. Lomero Poyatos is located in Andalusia, Spain about 110 kilometers
northeast of Seville, in the heart of the Iberian Pyrite Belt. Iberian also
owns several other exploration licenses in Iberia through its wholly-owned
Spanish and Portuguese affiliates, and soon expects to receive a mining license
for its Banjas concession in Portugal.
Based on Behre Dolbear's preliminary report on the Lomero Poyatos massive
pyrite (Au-Ag-Cu-Pb-Zn) project "the total Inferred Mineral Resource is
estimated at 30.4Mt at 2.31 g/t of gold, 46.56 g/t of silver, 0.67% copper,
0.67% lead and 2.35% zinc, containing 2.26 Moz Gold and 45.51 Moz Silver when
applying a 25%S cut-off only". This assessment is preliminary in nature
and includes inferred mineral resources that are considered too speculative
geologically to have the economic considerations applied to them that would
enable them to be categorized as mineral reserve, and there is no certainty
that the preliminary assessment will be realized. Mineral resources that are
not mineral reserves do not have demonstrated economic viability.
Based on the exchange ratio of 1.3 shares of the Company for each 1 share of
Iberian, the transaction has been valued at approximately US$41 million
(corresponding to US$12 per equivalent gold ounce using the estimates contained
in the Behre Dolbear preliminary report noted above).
The conditional approval by TSX of the transaction requires the Company to:
/T/
-- 1. obtain shareholder approval for the issuance of shares of Petaquilla
in connection with the Agreement and the Iberian stock options and
common share purchase warrants;
-- 2. obtain clearance by the TSX of the final form of agreement;
-- 3. obtain clearance by the TSX of the information circular pertaining to
the shareholders meeting approving the transaction;
-- 4. file with the TSX a NI 43-101 Technical Report for Lomero Poyatos and
a formal valuation of Iberian, each in a form acceptable to TSX prior to
closing;
-- 5. file with the TSX, on the same day of the closing of the transaction:
(a) the news release announcing the closing of the transaction or (b)
written confirmation that the acquisition has closed; and
-- 6. file with the TSX certain other documents related to the transaction.
/T/
The Company is currently working with its legal counsel, Blake, Cassels &
Graydon LLP, corporate auditors, Ernst & Young and independent consultants,
Behre Dolbear International Limited to develop and file the documentation
required by the TSX's conditional approval of the transaction which the
Company is planning to close during June 2011.
The acquisition of Iberia represents an extremely valuable growth opportunity
for the Company and its shareholders and is an important step in the
Company's strategy to become an international mid-tier gold mining
operation by expanding its gold resource inventory, potential reserves and near
term production profile.
Mineral Resource Estimate
As noted previously, the mineral resource estimate was based on the following
assumptions:
/T/
-- A database of existing drill hole data was compiled from previous
exploration records comprising about 50 surface drill holes and a
similar number of underground drill holes.
-- The deposit was defined as all mineralisation assaying greater than 25%
sulphur and a computer generated block model was constructed using
Gemcon(C) software to define the shape and size of the deposit.
-- Based on Ordinary Krigging methods the tonnage and the average gold,
silver, copper, lead and zinc grades of this +25%S deposit were
estimated.
-- The tonnage was based on an assumed bulk density (SG) of 3.3.
-- No cut-off grade was applied.
-- The resources were assigned an Inferred classification (JORC Code,
2004).
/T/
Qualified Person
Richard James Fletcher is qualified to act as a "qualified person" as
defined in National Instrument 43-101 and accepts responsibility for the
information on Exploration Results and Mineral Resource Estimate in this
report. Behre Dolbear affirms that Mr. Fletcher:
/T/
-- is a Fellow of the Australasian Institute of Mining and Metallurgy; and
-- has more than 40 years experience in the estimation, assessment and
evaluation of mineral resources and ore reserves that is relevant to the
styles of mineralization and the types of deposits under consideration.
/T/
About Petaquilla Minerals Ltd.
Petaquilla Minerals Ltd. is a gold producer operating its gold processing plant
at its 100% owned Molejon Gold Project in Panama. The Molejon mine site is
located in the south central area of the Company's 100% owned 842 square
kilometre concession lands, a region known historically for gold content.