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Gold, Gold Companies worth buying
triage
post Posted: Jul 6 2020, 11:56 PM
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Bugger it, I'm bored so I'll write some stuff.

In October 2018 a small outfit called Spectrum which was run by a couple of stock trading executives bought an old mine pit a couple of hundred clicks south east of Mt Magnet, WA. The site is called Penny West and is less than 900 hectares in area. The two blocks they bought had a JORC of less than 10k ounces at 5g/t and they paid all up $1m which consisted of $50k cash and the rest in scrip in Spectrum. Within 6 months a drilling campaign turned up good hits of high grade ore and within 18 months they had sold the company and the two blocks to Ramelius (RMS) for about $220m (some cash but mostly scrip). They had hit the jackpot.

About 30 clicks to the north of Penny West another financial suit had managed to get his company, Rox (RXL), into a 50:50 jv with the dominant tenement holder in the district, Venus (VMC), for much of those tenements, including another old pit called Youinme. Youinme actually used to have a processing plant right next to it but the plant had been mothballed years ago. Youinme already had over 1m ounces of JORC resources but about half of that was in refractory ore that would need specialist processing. The jv needed to uncover more gold if they were to re-establish the area as a working mine. But when they started drilling next to the old pit heading in a line from the airstrip towards the plant site, an area they refer to as the Grace Prospect, they not only found reasonable amounts of high grade near-surface gold but they also stumbled across high grade gold in a type of granite at fairly deep levels (the old operators had not drilled deep and had not thought to drill into the granite). The jv has another batch of drilling results due out anytime now and the expectation from the frenzied mob at hc is that these will also show bonanza levels of gold. We'll see. Rox acted quickly to take up an extra 20% in the Youinme jv for not much at all. It was a win for Rox and left a feeling amongst Venus holders that they had been done over.

Between Youinme and Penny West and also to the south of Penny West much of the blocks are held either by Venus outright or by Venus Rox 50:50 jv's and running north to south between Youinme and Penny West (and extending north of Youinme and south of Penny West) is the Youinme shear zone. People have joined the dots: if there is lots of high grade ore in the shear zone at Youinme and there is lots of high grade ore in the shear zone at Penny West maybe there are other high grade deposits to be found along that shear zone. That's what is being extrapolated but the current reality is that in that district there are two isolated high grade deposits (remember this: this bit is fact, the rest is speculation and dreaming).

One more thing, abutting the southern boundary of the Penny West blocks is another small block, called Penny South, currently owned outright by a tiddler called Aldoro (ARN). In the middle of last year there appears to have been a reverse takeover of Aldoro as the listed company took over Penny South from a private company and also appointed two blokes from that private company as MD and Chairman of Aldoro. Both are geologists and Penny South is their major project.

Now, Ramelius has a market cap of about $1.7b and they currently intend to haul the ore from Penny West up to their processing plant at Mr Magnet. The boss of Rox has said he wants to build a modular processing plant at Youinme. Rox's mc is about $160m. The junior partner in the jv, Venus, has market cap is just north of $43m. And Aldoro, well Aldoro has a mc of just over $4m.


Now even though Aldoro only has maybe less than 3 km of the Youinme shear zone in its tenement with a mc of only $4m it would only take one good hole for it to shoot up (it does after all hold 100% of that tenement). On the other hand Venus with all its coverage in the district only owns 50% of most of the tenements and only 30% of the Youinme project, including the brilliantly performing Grace prospect. It and Rox have a tenement to the immediate south of the Aldoro tenement at Penny South which is called Penny West Deep South. The mc of Venus is around $43m. If the jv continues to have major success at the Grace prospect or were to hit high grade deposits at Penny West Deep South you would expect the VMC shareprice to shoot up but not, in percentage terms, like ARN could with similar success. Of course Venus has other prospects in that district so if it turns out there are a number of high grade deposits Venus could have multiple winners.

And the senior partner in the Youinme project, Rox, has a market cap of about $170m. If the difference in market cap between Rox, at about $170m, and Venus, at about $43m, was entirely due to the 70:30 split at Youinme then if Venus had a mc of $43m then Rox would have a mc of only $100m. Seeing how the rest of their jv's are a 50:50 split I reckon that suggests that Venus is more competitively priced than Rox at the moment. But even if it does hit additional high grade deposits it will have to share those successes with Rox.

Anyway I'm not sure what I am saying is the better value here. Aldoro, with very limited amount of the shear zone has much less chance of hitting a high grade deposit but if it did then remember that Ramelius paid $220m for the nextdoor tenements. With Venus you have far more chances that they will find one or two high grade deposits but at best Venus will only hold 50% of that success. So, lower risk but likely lower return. If Rox were to have further success then sure it is more likely to go all the way in becoming a producer but my guess is that people are paying a premium for Rox over Venus (possibly partly explained by the suit that is the Rox MD having a hc fan club that seems to think he can walk on water).

And sitting in the background is Ramelius which could swallow any or all of the other players if it so desired. At the moment they seem happy to have acquired Penny West so as to have high grade ore they can haul up to Mt Magnet and mix with lower grade stuff from much closer to the mill. But if there were signs of multiple high grade deposits being proven up in that area they may decide to step in and take over the entire district and build an additional processing plant in the district. I am not looking to buy any more RMS but as a holder I think that could be a very positive move for them. It would push them well over the 300k oz pa figure they have been striving to reach, it would give them an additional mill churning out very high grade very low cost gold, and with a proven life of mine easily the equal of the 6 year life of mine they have with their existing mills.

Anyway, this may all come to nothing. But one way or the other, we should know by Christmas.



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"The market can stay irrational longer than you can stay solvent." John Maynard Keynes

"The crisis takes a much longer time coming than you think, and then it happens much faster than you would have thought." Rudiger Dornbush

Mozart fixes everything and Messi is a dog

Said 'Thanks' for this post: nipper  mullokintyre  
 
joules mm1
post Posted: Feb 27 2020, 10:39 AM
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In Reply To: joules mm1's post @ Feb 26 2020, 12:38 PM

gold ($xauusd) nearterm still not finished it's probing lower
also keep in mind the AUD is at major low v USD (at/below 2008 low) so wouldnt bet on a continuation of that trend which impacts local stocks and likely to attenuate hedging
OBM showed that having a tight register is a killer when larger money wants to exit even tho it has shown decent enough results

https://www.macrotrends.net/2551/australian...istorical-chart




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. . . . . . . . everything has an art.....in the instance of the auction process, the only thing, needed to be listened to; price
 
joules mm1
post Posted: Feb 26 2020, 12:38 PM
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In Reply To: mullokintyre's post @ Feb 26 2020, 10:22 AM

be slow to rush in, Mick
gold and silver shows some very strong trend signals since their recent highs, silver a non-confirmation to gold (usd's)




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. . . . . . . . everything has an art.....in the instance of the auction process, the only thing, needed to be listened to; price
 
mullokintyre
post Posted: Feb 26 2020, 10:22 AM
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Everything bar the VIX is down.
Pm's especially Silver were crunched overnight, reflected in all my gold stocks down today and yesterday.
Some of them down 15% from recent highs, perhaps a bit oversold.
Waiting for a signal to add to my gold stocks.
Mici



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mullokintyre
post Posted: Feb 25 2020, 09:15 AM
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Dow down 1000 ponts overnight.Not good for the big banks and trading houses.

Looks like the plunge Protection team have stepped in and started to crunch gold.
Will take some profits today and wait.

Mick



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sent from my Olivetti Typewriter.
 
mullokintyre
post Posted: Feb 1 2020, 03:34 PM
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In Reply To: nipper's post @ Feb 1 2020, 10:12 AM

Brilliant Nipper, another copralitic takedown.
So good I almost missed it.
You have a mind out of left field.

QUOTE
(and as for some Canadian fairy, just POQ)


Mick



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nipper
post Posted: Feb 1 2020, 10:12 AM
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In Reply To: nipper's post @ Oct 29 2019, 10:43 AM

a shame there are 3 Gold threads weaving a web of confusion, such that some posts disappear without a trace (and as for some Canadian fairy, just POQ)

the Fosterville discovery NE of Bendigo has excited the punters. Big players taking early stakes means some potential upside has been taken.
Tim Boreham writes widely on the region; latest missive is "Behind The Victorian Gold Revival"
https://www.sharecafe.com.au/2020/01/29/beh...-revival/

Its mostly about the latest excitement Kalamazoo KZR, also gives a mention to Navarre Minerals NML, Catalyst Metals CYL and Chalice Gold Mines CHN, all looking for the next elephant
QUOTE
.....meantime, the Victorian government is due to announce the winner of a new tenement grouping called Block 4, which abuts the Fosterville mine. To describe the tender as hotly competed is somewhat of an understatement, with all of the key players expected to have competed in the Dutch auction process...




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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
Nopoo
post Posted: Jan 28 2020, 03:51 PM
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With gold prices heading to $1600 USD per ounce and many junior gold companies having challenges to finance their projects, Guyana Goldstrike's management delivers a creative and non dilutive way to finance their advanced gold project Marudi.


________________________________________________________________________________
__________

NEWS RELEASE

Guyana Goldstrike Signs US$9 Million Gold Forward Purchase Agreement

​

Guyana Goldstrike Inc. (TSXV: GYA, OTC: GYNAF, FSE: 1ZT) announced it has signed a definitive gold forward purchase agreement, dated January 24, 2020, with an arms-length investor for proceeds of up to US$9,000,000, for the Marudi Gold Project located in Guyana, South America.

Under the terms of the Agreement, the Investor will make an initial payment of US$2,000,000 on or before April 14, 2020. Thereafter, a second payment of US$7,000,000 will be advanced within thirty days of a royalty interest in the Project in favour of the Investor having been registered.

The Agreement is non-dilutive to the Company’s current share structure as no shares or warrants will be issued to the Investor. The proceeds will enable the Company to finalize its purchase of the Project and further explore and develop the resource potential of the Property.

In consideration for providing funding, the Company has agreed to deliver 30,000 ounces of gold, representing approximately 10% of the Project’s current mineral resource estimate. Deliveries will commence within 120 days of a declaration of commercial production from the Project, or within 36 months of the initial funding under the Agreement, whichever the earlier, with an annual delivery schedule of 3,000 ounces. The Company has also agreed to grant the Investor a right of first refusal to acquire a further 30,000 ounces of gold, on terms to be negotiated between the parties.

The delivery obligation of the Company will be secured by a 12.5% net smelter returns royalty in favour of the Investor, to be registered against the Project. The royalty will not be payable while the Company meets the deliver schedule and will expire once all delivery obligations under the Agreement have been satisfied.

________________________________________________________________​

HIGHLIGHTS



Share Structure 58 M I/O (Jan 2020)


Zijin (HK) Resource Funds own 20% (invested $3.2M in 2018)


Advanced Exploration Project with 40,000 m drilling completed


Two Mineralized zones / deposits the Mazoa Hill & Marudi North


43-101 Gold Resource of 345,700 oz - Mazoa Hill zone / deposit


Near Surface Open Pit Mine Scenario


13,500 acres (54 sq. kms) in size


15 % of Project Explored to Date


New Discovered Area the 2.5 km Toucan Ridge trenched Sampled as high as 23.5 g/t gold


21 Geophysical Targets Identified


Geophysics Showing More Depth and Lateral Extensions to Drill Targets


Driller Company Selected


Property Drill Ready


Mining Permit for Production in Place


Mining Camp in Place




Symbols: GYA.V / GYNAF / 1ZT

www.guyanagoldstrike.com



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Nopoo
 
Nopoo
post Posted: Oct 30 2019, 10:50 PM
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Former Senior Vice President of Ivanhoe Mining Joins Guyana Goldstrike


Guyana Goldstrike Inc. announced that Mr. Edward Rochette has joined their Board of Directors.

Mr. Rochette is best known in the mining industry in his role of Senior Vice President of Ivanhoe Mining ltd. where he spent 25 years negotiating and acquiring various projects in over 35 countries.

Mr. Rochette presently consults for Mr. Robert Friedland, founder and Executive Co-Chairman of Ivanhoe Mines Ltd., conducting mineral acquisitions in Utah, Nevada, Arizona and China.

He is a Mining Executive, Land Manager, a member of the Oregon State Bar Association and former CEO of East Asia Minerals.

Over the course of his tenure he has worked in over 50 countries and is responsible for the acquisition of world class mining properties, including Monywa copper mine in Myanmar, Bong Mieu gold mine in Vietnam, Bakyrchik gold mine in Kazakhstan, Oyu Tolgoi copper mine in Mongolia and the Miwah gold project in Indonesia.

At Nerco Minerals, Mr. Rochette was responsible for 14 western territories and left his legacy in the form of consolidating and reopening the Cripple Creek mining district, currently owned by Newmont Mining and home to a 13-million-ounce gold reserve.



Assays yield 47.6 g/t Au over 3 m within 9 m of 21.2 g/t Au at Marudi



The company reported that three chip-channel samples were collected from fracturing in oxidized quartzite-metachert (host rock) at the Marudi gold project.

Assays returned values as high as 47.6 g/t Au across 3 metres within 9 meters of 21.2 g/t Au.

The samples were taken as part of the company’s objective to expand the known mineralized areas and add to the current existing mineral resources.

Mr. Locke Goldsmith, M.Sc., P. Eng, P. Geo, VP Exploration,

“These chip-channel samples are important as they increase knowledge about structural controls of high-grade gold mineralization within the host strata. A better understanding of controls will enable us to more effectively target our drilling on areas with high-grade gold potential.”




www.guyanagoldstrike.com





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Nopoo
 
blacksheep
post Posted: Oct 30 2019, 07:48 PM
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In Reply To: nipper's post @ Oct 29 2019, 10:43 AM

Gold's most sought-after piece of land up for grabs - map showing location
https://www.afr.com/companies/mining/gold-f...20191028-p5352q



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The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington
 
 


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