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HGO, HILLGROVE RESOURCES LIMITED
happychappy
post Posted: Feb 2 2004, 11:38 PM
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Re size of Cu/Au resource at Kanmantoo.

I've seen one pre-mining figure of 12Mt @ 1% Cu for the Kanmantoo mine (Source: - Terramin prospectus). Some 36,000 tonnes of copper were produced from Kanmantoo before it closed (probably from some 3.5 Mt of ore using a grade of 1%), so this leaves a remnant resource of perhaps 9 Mt.

Much of the drilling was never assayed for gold, but some of the mineralisation is known to be carrying gold, so we might guesstimate a grade of 0.5 g/t, which is typical of similar copper deposits in the Mt Isa province of Queensland.

9 Mt at 1% Cu/ 0.5 g/t Au is comparable to a resource of 0.75 MOz of gold - not too shabby!, and this could probably be bumped up if there are satellite pods of mineralisation on the surrounding tenement that HGO.

A grade of 1% Cu and 0.5 g/t Au has an approximate metal value of Oz$45 per tonne - if we use a nominal "profit margin" of Oz$5 per tonne, we get a project value of perhaps $45M or around 45c per share on the recently expanded share base - hence my belief that Kanmantoo alone can underpin a share price of 30c for HGO.

I hope this rambling post make sense.

R/happy



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happychappy
post Posted: Feb 2 2004, 04:25 PM
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Hi Daj,

Kanmantoo is not an inactive project for HGO, my main concern is that some of the big investors will get preferential treatment, and lots of cheap scrip (or cheaper than the average retail investor can get) while there is an information drought. There is some very big money backing HGO, but only at the right share price - the SPP is really only there to placate the small share holders.

My understanding from impeccable sources is that Kanmantoo has a "substantial" Cu/Au resource - it is only a question of timing before it is made public - and I've heard it suggested that Kanmantoo alone can conservatively underpin a share price of 30c for HGO.

The ESG deal is still hard to understand - but it must be impressive if several million $ can be whistled-up out of nowhere from private investors.

R/happy

ps I'm really quite interested in AMG - their various gold projects seem to have a lot of hope for good drilling prospects later in the year - it seems to be very cheap relative to similar grass-roots explorers



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daj
post Posted: Feb 2 2004, 04:10 PM
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Happy - further to my last post (and after having read the prospectus), it seems that the focus of HGO over the next 6 months will definitely be on the CBM (coal bed methane) project in a JV with Eastern Star Gas.

Wow ! - a big departure from their traditional mining interests and an expectation (of mine) that money raised would fund Kanmantoo copper and gold etc.

Did this one come from 'left field' or what !?!
DaJ.

P.S. a browse thru ESG's announcements give more details on the project.

 
daj
post Posted: Feb 2 2004, 03:10 PM
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Hi HappyChappy - I am 'liquid' at the moment having taken profits on HZN and ROC.

I am very interested in HGO and AMG (one of my tips in the competition). Unfortunately for both of us the SPPs recently announced will limit any price increase to well after 15/02 ...... LOL !

Seriously though, I think that the long-term prospects of both are excellent and the issues will enable a cheaper entry than would otherwise have been the case.

Re. HGO, I'm very surprised that it is not underwritten - in your opinion is there any doubt re. the issue being completely taken up. Surely there would be no shortage of volunteers to underwrite it (at the right price) ...... any comment on this, or am I missing something ? A full refund would not be good for the SP.

DaJ.

 
happychappy
post Posted: Feb 2 2004, 02:06 PM
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Re Quarterly Report - I was puzzled by the absence of an Activities/Cash Flow report - but I checked the previous report (Third Quarter), and discovered that HGO reports on the quarter ended 31 Jan '04 - ie it has to be lodged by end Feb.

A company update may or may not be out before the SPP closes on 16/2/04. My understanding is that there may be some eye-opening updates on Kanmantoo - but we'll just have to wait and see.

R/happy



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happychappy
post Posted: Jan 27 2004, 11:10 AM
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HGO and ESG jointly farm-in to a possible 8 tcf coal-bed methane project in northern NSW (Narrabri area). HGO interest to be 32.5%, ESG to operate the project.

This one comes from left field, and I'm scratching my head a bit and trying to judge the significance of it.

R/happy



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happychappy
post Posted: Jan 23 2004, 06:11 PM
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Market Sweetener #1 - HGO in trading halt, new acquistion to be announced shortly.


R/happy



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happychappy
post Posted: Jan 19 2004, 11:37 AM
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Signs of life at last!

HGO is getting ready to cash up for 2004 - so I think we'll see a few market-sweetener announcements in the very near future, especially for the Kanmantoo Copper/Gold project in South Aus.

It's a little know fact that there is a fairly sizeable remnant resource left from past mining. You might want to think about the value to HGO of a resource of, say, 5 - 10 Mt @ 1% copper and 0.5 g/t gold (these are educated guesstimates of my own - not official company figures).

R/happy



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ADMIN1
post Posted: Jan 19 2004, 08:34 AM
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created on request



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ADMIN1
 
 


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