Jump to content

RED - RED 5 LIMITED


banjine

Recommended Posts

Today is an off day, many resource stocks are down, the RED quarterly is basically just adding to previous announcements over the last 12 months. There is nothing definite to get a hold of, drilling a resource prior to project feasibility is time consuming and can be costly. Luckily they are currently well funded, and so far the money spent has been well used. The drilling around the Siana pit, is adding to the picture and the grades being found are very acceptable. Once all of these recent drill results are incorporated into a new resource figure, i expect a significant upgrade beyond the current 1.1m ounces.

 

With the scoping study we should get a better handle on likely mining methods, tonnage and project economics.

 

The copper/Gold at Madja is another kettle of fish, from what i have read, and their approach from major mining houses, typically this sort of resource is very large in tonnage and of lower grades, similar to nearby mines. It is beyond a company the size of RED, their initial sole funded hole has given them a stronger position to negotiate from. They will wait for the results of the second hole, and then try and get a good deal from one of the interested parties to take this project forward, on terms that will hopefully give them a free carried interest. Anyway that is my take on it.

 

From more reading today, i also noticed they have another area MAPAWA 18km North, not much has been mentioned lately, but i think they are still progressing the MPSA for it.

 

Another point of interest is the 50m OPT05 are priced to convert at 35c, so they are obviously optimistic of a higher share price in the next 6 months, as they have earmarked the funds for BFS study.

 

I am certainly no expert on Gold mining, but have seen a few projects go through the cycle, so please anyone who can offer a different opinion do so.

Link to comment
Share on other sites

  • Replies 219
  • Created
  • Last Reply

Top Posters In This Topic

Top Posters In This Topic

Posted Images

I'll follow the conversation on this one closely.

 

It could be another quiet achiever over the nex 6 months or so. LAF also looks like a no-brainer for a modest return over the next 12 months. The Philippines is not without a degree of country risk, so DYOR.

 

For what it's worth, I'm told that RED has suffered from a major shareholding unwinding 18 million shares on-market over the last 6 months. Life could be looking up with that monkey off their backs.

 

R/happy

Link to comment
Share on other sites

Hi Happy - pleased to have you on board too. The Skinners got rid of quite a few shares over the last few months but I don't think they offloaded 18 million - wonder who the others were?.

 

Bear in mind that they have 6 drillhole assays outstanding, plus drilling on the estern side of the pit is underway, so we should have something to keep us going in the near future.

 

Cheers, BC

Link to comment
Share on other sites

Hi All,

 

Just came over from H/C for a squizz, a little more orderly on first impressions!

 

Interesting chat on RED from you guys, have been holding this one for a year or so and and rate it highly, albeit with some moderation attributable to geopolitical issues. If management can get Siana up and running (and this won't be a cakewalk, previous mining ceased due to a significant pit wall failure and will require a major cutback prior to any recommencement) things are looking up for RED.

 

One thing i really like about the story is the potential for management to negotiate a restart at Siana (already a mill on C&M), generate some early cashflow and sink some serious dollars into drilling out the two copper/gold targets up the road. As you guys have discussed already the first Madja hole confirmed broad mineralisation and in doing so has validated Anglo's geochem etc and increased the chances the second anomoly is mineralised.

 

These Cu/Au porphry systems are typically large tonnage, low grade beasts, and require huge capital and time commitment to prove up a resource to bankable status. Accordingly, they are usually the relm of the majors with their associated deep pockets and slow mechanations. If RED can generate revenue form Siana they can really attack the potentially huge copper/gold sytems like Madja at their speed (faster) and prolong a JV decison until after prefeasibility (they probably will have to at some stage as they will need a pretty hungry plant if Madja makes the cut).

 

The geological setting can't be dismissed, Anglo have 2 x +3MOZ deposits in and around Boyongan so this is elephant country. RED previously announced mobilisation of a larger rig for follow up drilling and the Qtly noted the second hole has been completed to +550m. Nice to see mssrs Edwards, Govey and Smith all buying shares on market in the last few days, so will wait with interest.

 

Although I clearly like this story, RED are not cheap with a cap of $30m, but definately one with real potential should things fall the right way for management/s/holders.

 

From what I can gather, topseed/skinner has been selling for nearly 12months now and was associated with a previous director (accuracy = ?)

 

regards

 

 

 

 

 

 

Link to comment
Share on other sites

Welcome to sharescene Periscopes, your input is more than welcome.

 

I was not aware previous pit had a wall collapse, so that adds to the story.

 

I think you will find sharescene is a far more pleasant and well moderated forum that is building a solid reputation.

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now

×
×
  • Create New...