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Overall Look at the Coal Juniors
This seems like a pretty active thread so I thought it might be a good time to summarize the current state of the smaller coals from an investor/speculator perpsective.
I missed most of the run last go round but we can all see the huge pullback/correction that has taken place. In addition, a lot of the euphoria of endless profits has been drained from the sector. I was waiting for a pullback before doing any work in this sector (mostly golds for me) but now seems like a good time to have a peek. Here are my initial thoughts, comments welcome.
GCE - yikes, costs are too high. Any hope for this one cost wise?
CLG - big resource and some big investors but I have seen no cost estimates. I like this play at this point.
PVM - Willow Creek is a nice looking project especially at current coal prices. As mentioned in a previous post there were several warnings in the last quarter report that warrant a hard look. The resrves on Willow are not that large (15MT or so)so I think the success of this company may rest with Pine Pass which is much larger.Good bouince candidate?
SN - have not really had a look at this one but the price fell off the cliff, may be a a good bounce candidiate.
FT - too many obstacles for the Mount Kapplan resource and the costs look high.
CEC - they have a hand in a lot of pies, I don't have a handle on the priority of coal for them.
HLB - Have not really had a look at this one in depth
WTN - this seems to be the most profitable one and they also seem to be the best managed. If they continue to gear up production they may be a good income trust candidate or buyout candidate if coal itself stays hot. This one also has a nice $3-$6 trading range that can be 'played' for shorter term gains.
Overall, rising costs, transportation issues and political issues seem to be the order of the day. But then again, no one said mining of any sort was a profitable business.
The investment community seems to be pricing in the above plus maybe slightly lower coal prices next spring. Seems to me this may be a good time to take a position and look for an upswing in early 2006.
Well, FWIW, I have owned and/or followed stocks in the past that have had such disagreements. In every case I can recall, the disagreemnet ends up in favor of the land holder. It is generally the one who has to incure the work/expenses that fails to do something or meet a timeline. The optioner, in this case GBG, basically sits back and watched Hecla do its thing. If they anticipated any delays in the permits they should have put something in the agreement about it.
I have not read the whole agreement but it does not sound like Hecla gave themselves any room for an extension.
Well, I have followed Novawest since 1995 or so. These recent results are very disappointing given the wmount of time, effort and money it has taken to actually get to the drilling stage.
No..the same house..the buyer and seller are listed as the same house.
Generally, large crosses indicate that strong hands want the stock and have found weak hands to sell it. For Alamos, if someone wanted 1.4M shares and started grabbing them at the ask the price would rocket up (and then likely fall back). The cross allows the guy who wants a large block to get it all at the current price. After the trade is complete, you basically have a large amount of stock in the hands of someone who wnats it versus someone trying to get out...hence the bullish factor.
That is correct..the same brokerage firm was the buyer and the seller. Implies that the trades were arrranged. Usually bullish.
About 1.4 of that volume was the result of crosstrades from the trading house "McFarlane"..
Actually, i like copper more than gold at the moment and this Galore project provides nice balance for the Novagold project portfolio.
BTW - How is it going Amarks? LOL
I have had NG on my 'to do' list for like 6 months, finally getting caught up.
I actually bought some of this stock last week.
Thanks for the updates Amarks and Russ. Hopefully the stock will just 'hover' at it's current level for a bit while this change is digested. I don't have many shares left (thanks to Russ I was in very early on National)as I sold on the way up but this remains a good stock with a lot of potential.
You do realize that you talk to yourself a lot on this forum don't you? LOL
This stock name rang a bell so I checked my files. I got a tip on three stocks , all O&G about 18 months ago. I disliked the first two but was indifferent on this one. The other two turned to dogs but since this one seems Ok I will have another look-see.
Drilling is done, results in two weeks
Any comments on the surface sample results? Mr. Charters?
We should be seeing results very soon here. KNP and CZZ have released results already.
Man, that release was way beyond the scope of the average investor. Maybe Russ or Claude or even EC for that matter can help us out here.
I debated the same scenario. I also sold out my Western Silver wneh it hit $4.30. I sold 1/3 of my Alamos the other day and bought CBD which had fallen below $3.00. My Alamos cost though was .80 or so and I felt CBD may get a nice push in the next while.
Thanks for keeping us informed. Stcok has been acting well of late, nice steady climb.
Good call..here is the news..
Alamos begins exploration in Mexico; warrants exercised
Alamos Gold Inc AGI
Shares issued 34,153,249 Jul 23 close $1.17
Thu 24 Jul 2003 News Release
Mr. John McCluskey reports
ALAMOS GOLD INC.: EXPLORATION STARTS AT MULATOS AND SALAMANDRA; COMMUNITY
RELATIONS UPDATE-WARRANTS BRING IN $2.3 MILLION GRANT OF INCENTIVE STOCK
OPTIONS
Alamos Gold has retained the services of Ken Balleweg, MSc geology, to
manage exploration at the Mulatos deposit and the Salamandra district. Mr.
Balleweg was with Placer Dome Exploration as senior project geologist for
the Mulatos project and manager of the Mexico exploration program from 1997
to 1999. He was on Placer's Mulatos district regional evaluation team in
1994, the Sierra Madre reconnaissance program in 1995 and the Mexico
exploration program in 1996.
Mr. Balleweg's reinterpretation of the Mulatos deposit led to the discovery
of 1.5 million additional gold ounces at the Escondida and Gap zones. His
work in the El Halcon area resulted in the discovery of the Los Bajios
area. Alamos's holdings in Sonora state comprise over 16,000 hectares of
mineral claims. Exploration this summer is covering areas within the
Mulatos deposit and eight additional zones within the district.
Mulatos exploration
The exploration plan at the Mulatos deposit is focused on increasing the
ore grade. Previous exploration activities were focused on defining bulk
tonnage mineralization. No attempt was made to delineate high-grade gold
domains and structural controls that are clearly exposed in the extensive
1,061 metres of underground tunnels. Bench level maps from the Placer Dome
resource model indicate northeast and northwest structural control on
higher-grade gold, with domains of higher-grade mineralization up to 100
metres long and 50 metres wide.
A detailed mapping survey of surface and underground structure and
alteration was recently completed to define the structural controls of
high-grade gold mineralization. Through this work, Alamos has identified
areas amenable to selective mining early in the project life, identified
additional areas of oxide mineralization and open mineralization, allowed
tightening of grade distribution in the new resource model, and defined
drill targets for a 1,500-metre underground core drilling program to
commence in August.
Previous drilling from the surface resulted in numerous holes being
oriented subparallel to some of the primary structural controls of
high-grade gold. Underground drilling will allow exploration of the
higher-grade structures normal to their trend, and is expected to encounter
higher-grade oxide mineralization missed by surface drilling. Results from
the study and drilling are expected in the fourth quarter.
A surface reverse circulation drilling program will also be conducted at
the Mulatos deposit to target structurally controlled high-grade
mineralization in two adjacent zones discovered in previous drilling
programs. Previous work targeted the large-tonnage replacement
mineralization marginal to the structures. Structural zones were not
drill-tested. Drill intercepts with visible gold and containing greater
than one ounce per ton were not targeted with follow-up drilling. The
surface drilling program will target the structural roots of the historic
mine area which produced a significant tonnage of free-milling high-grade
ore.
Salamandra district exploration
A regional exploration program will be focused on discovering new
mineralization in areas of extensive alteration located within eight
concessions controlled by Alamos in the Salamandra gold district. Alamos
recently discovered silicified breccias in the central Bajios area similar
to those closely associated with gold in the main Mulatos deposit. An
induced polarization survey is planned to delineate drill targets in the El
Halcon and Los Bajios areas supplemented by detailed alteration mapping and
sampling in areas of outcropping or projected near-surface mineralization.
The previous owners discovered outcroppings of gold-copper and gold
mineralization in the Los Bajios area in 1999, but these targets were not
pursued.
Alamos's recent discovery of advanced argillic alteration commonly found
near gold mineralization led to the staking of a new area south of the
Mulatos deposit. The "Carboneras" zone may be an extension of the Mulatos
system or a new subsidiary system. Reconnaissance exploration with PIMA
(portable infrared mineral analyzer) alteration mapping and geochemical
analyses will be undertaken on the new concession.
Aster remote sensing imagery has been obtained for the greater Mulatos
district which is helping to identify additional areas of alteration on the
concessions similar in nature to those known to contain gold deposition.
Community relations update
Agrarian court proceedings stemming from two disputes concerning the
company's contractual rights to reduce surface areas leased and payments to
the Ejido Mulatos (the surface rightsholders) have been completed. The
judge's rulings in these cases are expected soon. Ejido Mulatos officials
and the company have been conducting meetings and are forming a committee
to promote communications. The company is nearing completion of interviews
with community members to identify concerns and establish a baseline of
information. Access road improvements and evaluation of utility services
has begun. Work is being provided through exploration, sampling,
metallurgical testing, construction and camp services programs.
Warrants exercised and grant of incentive stock options
Warrants to purchase 2,586,250 common shares of Alamos at 90 cents per
share were exercised by shareholders by the July 22, 2003, expiry date,
increasing Alamos's working capital to $2.7-million.
Alamos has granted incentive stock options to some of its directors and
consultants under its stock option plan to purchase up to a total of
682,483 common shares of the company. The options are exercisable at a
price of $1.13 per share for a five-year period.
Alamos's stock option plan received shareholder approval on June 26, 2003,
and TSX Venture Exchange acceptance on July 10, 2003.
WARNING: The company relies upon litigation protection for
"forward-looking" statements.
NovaWest Resources Inc NVE
Shares issued 28,052,850 Jul 17 close $0.47
Thu 17 Jul 2003 News Release
Also (CJ)
Mr. Patrick O'Brien of NovaWest Resources reports
RAGLAN NI-CU-PGM-CO PROJECT DRILL SITE PREPARATION UNDERWAY
NovaWest Resources and its partner Cascadia International Resources Inc. of
Vancouver, Canada have commenced exploration on the 660-square-kilometre
(161,000-acre) Raglan assemblage. Novawest/Cascadia personnel and a
geophysical team, along with geophysical, field and drill equipment,
arrived in the area in early July. Sampling, geophysical surveying and
drill site preparation are now under way. The fully financed $3.55-million
2003 exploration program, currently under way, includes an extensive
AeroTem airborne geophysics survey program, ground geophysics over both
known and new drill targets, prospecting and sampling, and diamond
drilling. Under the terms of their agreement, the two companies have agreed
on spending $12.35-million over three years on the Raglan assemblage, with
exploration commitments of $3.55-million in year 1, $4.3-million in year 2
and $4.5-million in year 3.
The expansive Novawest/Cascadia Raglan assemblage has taken seven years to
assemble and is strategically situated in the centre of the Raglan camp
between two of the world's largest metal producers, Falconbridge Ltd. and
Anglo American Exploration (Canada) Ltd. Available data indicate that the
west, central and east horizons of all three of the important
stratigraphies of the Raglan belt are now mostly covered by the extensive
holdings of Anglo American/Knight Resources Ltd. to the west,
Novawest/Cascadia in the centre, Falconbridge Ltd. to the east, west and
north, and Canadian Royalties to the east and south. Collectively, these
companies now encompass approximately 3,000 square kilometres at Raglan.
The straddling of all three of the Raglan trends, the north trend, the main
Raglan trend (hosting most of Falconbridge's deposits) and the south trend
is a situation that appears to only be apparent on the Raglan holdings
covered by the Novawest/Cascadia Raglan assemblage and Falconbridge Ltd.'s
adjoining holdings, most of which hosts its producing Raglan deposits.
The high-grade nickel, copper and PGM samples released by Knight Resources
Ltd. and its majority partner Anglo American Exploration (Canada) Ltd. from
the western extension of the Raglan belt on July 16, 2003, are very
positive and encouraging, supporting Novawest's own in-house model,
developed in the mid- to late 1990s, projecting the entire Raglan belt from
east to west as mineralized, including the western extension. Due to early
Novawest results, more recent Canadian Royalties results and the most
recent Knight/Anglo American results, the Raglan belt does appear capable
of hosting mineralization throughout that could result in economic
orebodies. The in-house Raglan model concluded that the western extension
was capable of mirroring the mineralization already known to exist along
the north, main and south Raglan trends to the east, and this model was
based on the fact that Novawest's own sampling clearly delineated the three
trends traversing the Novawest/Cascadia Raglan assemblage east to west. It
was clear from the early sampling that the three trends would likely
continue through the central Raglan belt currently controlled by Novawest
and Cascadia, and extend into the western extension.
The company's in-house Raglan exploration model and geological overview
identify the Raglan belt as part of the Circum-Superior mobile belt, which
includes the Thompson nickel belt (TNB). In order to estimate the economic
potential of the Raglan belt, Novawest drew upon its personnel's knowledge
and expertise in the TNB, Manitoba. The TNB represents another,
approximately 340-kilometre-long portion of the Circum-Superior belt; a
virtual mirror image of the Raglan (Cape Smith belt). A comparison of the
Raglan with the TNB indicates that, to date, only a fraction of the
Ni-PGM-Cu sulphide deposits and tonnage known to exist in the TNB have been
discovered in the Raglan belt. The TNB contains in the order of 800 million
tons of Ni-PGM-Cu sulphide mineralization in over 30 deposits (not all
producers), with exploration down in excess of 5,000 feet. In comparison,
the Raglan belt is early into its economic evaluation, with exploration to
date being shallow, above 1,000 feet depth.
Falconbridge's nearby Raglan (Katiniq) mine, on property adjoining
Novawest/Cascadia, is presently an important world source of nickel,
palladium, platinum, cobalt, osmium and copper. Some of Canada's most
significant palladium and platinum values are from the Raglan camp, with
Novawest itself reporting palladium values up to 26.76 grams per tonne, and
platinum values up to 9.3 grams per tonne from 1997/1998 surface samples of
hard-rock surface outcrops. In spring 2000, Amplats, the world's largest
platinum producer, tested a sample representative of an extensive
outcropping area on the Novawest/Cascadia Raglan assemblage at its South
Africa laboratory. Amplats reported identifying three palladium-telluride
(Pd-Te) phases in the samples, and confirmed that its chemical analysis
gave a value of 20.4 grams per tonne platinum group elements plus gold.
Novawest/Cascadia is pleased to have had such a recognized and respected
independent third party report such an assay from a Novawest finding in a
zone determined to be approximately 2,000 feet in strike length. Other
various surface samples from the Raglan camp area submitted to Chemex for
analysis returned notable assays of 21.8 grams per tonne palladium, 16.5
grams per tonne palladium, 8.83 grams per tonne palladium, 5.54 grams per
tonne palladium and 3.37 grams per tonne palladium. The Novawest/Cascadia
assemblage surrounds Falconbridge's Delta-Oasis property containing the
approximately 850,000-ton Delta deposit (D-8 and D-9) grading 3.08 per cent
nickel, 1.26 per cent copper and 2.25 grams per tonne platinum group
minerals (PGMs). It is understood that these holes were placed a few
hundred metres from Novawest/Cascadia boundaries.
Maps and information packages on the Raglan camp and the company in general
can be obtained by contacting Novawest at 1-800-663-8990 in North America,
or 604-683-8990 from elsewhere.
Novawest invites the public to visit its Web site at
http://www.novawest.com,, or E-mail it at novawest@novawest.com to be added
to the company's E-mail list for news releases and updates.
WARNING: The company relies upon litigation protection for
"forward-looking" statements
Just thinking out loud here...I am wondering if CBD is raising cash to increase their position in Medialine? Likley not, but WMC has been trying to get out of this project.
Thanks for that link. I actually cannot recall ever seeing an analyst's report on NVE...except maybe from the old "International Homestead" days..LOL
I voted as well but in all honesty I have never seen a vote go against management for any junior. The average shareholder likely does not even open let alone understand the voting package they receive. This makes it all the easier for these votes to go through. I am not overly impressed with the option set up but realistically there is little differrence between this and the standard fair where management goes in on all new PP's but sells last years warrants to fund it.
Certainly, one would like to see management have a significant core holding. I will stick with this Company becuase I like the potential of a buyout with the Burnstone property in hand.
But I probably have more patience for(mis)management than Russ..LOL
Russ, do you have any idea of the economics of Burnstone?
I believe the volume is more of a result of some buyers absorbing the good gold news here (the connector deposit) and not a result of the kimberlites.
Trading nicely, nice steady rise. Good to see.
I like it. NVE keeps control and is the operator.
NVE is halted..hope it is a Raglan JV...
Well, that is what has kept me on board all of this time. The property is just to good to pass up IMO. Pat O'Brien has been very patient throught the PM bear market and they have had little dilution - but I do sense that the time is ripe to JV and set out some aggressive drilling plans.
EC, have you ever been up to that area?
Volume and price in Novawest is picking up. I think we will see some positive news shortly. I hope it is news on the Raglan front (JV perhaps?) as this area seems to be heating up after the CZZ drilling the past six months. For us long standing NVE shareholders, we would love to see some drilling on the NVE Raglan claims.
I have been an investor - in and out - of Novawest since about 1996 or so. It was actually called International Homestead back then. I love the raglan property they have but they do need to proceed with a JV or some drilling.
The CEO, Pat O'Brien, is a very good guy to talk to. He is been there through the market ups and downs and has steered the company through the last downturn with very little dilution.
Thanks TF..If that is true that gives a whole new meaning to the term "undervalued junior"..I am going to try and dig deeper here and see what I can come up with, I would like some confirmation that the 8M applies to this property only.
Great info on this thread folks! I just slid over from SI where the info on Moydow is slim.
Interesting reading lassonde's comments on the $15/oz cost for resources. That is a dream at $370 + gold. There is going to be some bidding wars once gold breaches $400 and the low cost resources will be high on everyone's "reserve wish lists".
Could I get some clarification about the resources on the main property please. At $270 POG, Moydow has a reserve of 1.2M oz, of which 50% is JV'd to Newmont. Is the 2000 report of the 8M oz potential THIS property only or are they including the other property owned by Newmont nearby? That is, the property that I thought Newmont was including in the production concept.