# CGG - Citadel Resource Group



## jman2007 (8 December 2007)

Small firm poised to mine Saudi Resources - This is an interesting story...

CGG, formerly known as ADV Group has gone from a small company which marketed itself as a multinational media services company to form a JV in one of Saudi Arabia's biggest untapped Cu resources, Jabal Sayid.  The current JORC resource stands at 46 MT at 1.8% Cu, the company is expecting to have a new JORC resource by March 2008, and is hoping to double the size of the known resource.

A scoping study completed in the 1990's suggested that Jabal Sayid had the potential to be a 100 million to 150 million open cut project grading between 1 and 1.5% Cu, with significant Au, Ag and Zn credits, putting the project into the top tier of its type in the world.  The pace is set to quicken at Jabal Sayid with a third and fourth diamond rig contracted to be onsite and drilling this December.

The merging of ADV Group and mining services company Vertex has given the new Citadel Resources a 50% earning in the project, with CMC (Consolidated Mining) retaining the other 50% interest, and Citadel taking the lead in the project.  The story has gone virtually unnoticed even in the midst of the resources boom.

While Jabal Sayid has the potential to be the real flagship for Citadel, Vertex also brings another 9 wholly owned projects and exploration licences to the company, all of which are in Saudi Arabia.  At least 4 of these projects have the potential to be company makers, Vertex Executive Director Ms Ines Scotland said.

(Information taken from 'The Australian', Dec 4th page 20 and ADV Annual Report 2007)


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## rhen (12 December 2007)

Just received an email from Citadel Investor Relations:

_The ASX has only yesterday advised us of the conditions we need to satisfy
in order to resume trading as Citadel Resource Group (ASX:CGG). We have the
paperwork now with them and we expect to commence trading again within the
next few days, but hopefully no later than Monday._

It begs the question: "Why only yesterday"?
Is this acceptable?


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## doctorj (12 December 2007)

I'm surprised that it will only take a "few days".  My understanding is the listing rules require them to submit a reviewed pro forma balance sheet to the ASX to support their application.  This requires engaging an accounting firm to conduct the review - I find they could go from "not knowing about it" to arranging their auditors and then their auditors being happy with the balance sheet in only "a few days".  Realistically, I'd expect atleast a week, if not 2 before ASX get everything they need. 
There is ofcourse the chance ASX have exempted them from this specific requirement in which case 'a few days' is achievable.  Who knows.


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## Santoro (12 December 2007)

doctorj said:


> I'm surprised that it will only take a "few days".  My understanding is the listing rules require them to submit a reviewed pro forma balance sheet to the ASX to support their application.  This requires engaging an accounting firm to conduct the review - I find they could go from "not knowing about it" to arranging their auditors and then their auditors being happy with the balance sheet in only "a few days".  Realistically, I'd expect atleast a week, if not 2 before ASX get everything they need.
> There is ofcourse the chance ASX have exempted them from this specific requirement in which case 'a few days' is achievable.  Who knows.




Thats all been posted up in ann's tonight...must happened just before you wrote this....anyway sounds kinda interesting worth some investigation

78% held by top 20...nice


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## doctorj (12 December 2007)

Credit where its due - that's quick work from BDO. Scratch everything I said before, I stand corrected!


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## BSD (12 December 2007)

I cannot find a superior copper/gold play in the Australian market. 

The ownership/deal complexity is over, as well as the overhang from the jilted shareholders of the previous business being soaked up by instos like Portfolio Partners. 

The grade, tonnage and in-place infrastructure are stunning.

The upside in expected additions to reserves from recent drilling at Jabal Sayid is enormous - the other projects haven't even been contemplated, but exceed the quality of many local aspirationals in potential. 

Recent intercepts include:

Zone One
115m @ 1.77% Cu, 0.45g/t Au
97m @ 3.28% Cu, 0/71g/t Au

Zone Two
164m @ 2.79% Cu, 0.44g/t Au
122m @ 2.74% Cu, 0.22g/t Au

Zone Four
254m @ 2.65% Cu, 0.39g/t Au (!)

This is purely virgin country - anything like this in Australia would have been discoverd and mined 20 years ago. 

First mover advantage in a such a resource rich, unexploited country makes for an excellent opportunity. 

Cannot imagine financing a deal in such a well endowed country would be too hard either.

Obvious ownership disclaimers apply and I should add that for deals like this; I 'own' and don't 'trade'


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## jman2007 (24 December 2007)

I realise that CGG is best known in the market for its Jabal Sayid project, but Vertex brings a whole host of other projects to the table, many of which could be company makers in their own right, imo.

The only downside I can see with CGG is that the issue of new shares and options to fund the aquisition of Vertex which has caused substansial dilution to current holders, so it might take a fair bit to get this moving.  And as the sole funder of Vertex, CGG could come under unecessary financial strain. At this stage CGG's only significant assets are cash and its investment in Vertex.

I thought it might be interesting for people who maybe don't know much about CGG or their projects to see them displayed in table form. One table displays the assets acquired by CGG, the other table details the proposed development scenario over the next 3 years.

I'm not going to get into predicting sp's or anything, I'll leave that up to the t/a's and chartists : (hint hint).  I'm more interested in the overall strategic position of the company and the logistics of the development.


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## jman2007 (2 February 2008)

More good news from Jabal Sayid,

A new zone of zinc-gold mineralisation discovered overlying lode 4, extending the copper mineralisation to the north. By the sounds of it, they're also preparing to use the ramp decline to gain access to lode 4 deeps and comence underground drilling where previous drill holes terminated in 3% grade Cu.

Continual in-fill drilling by the feasibility team should allow new discoveries and updates to be included in an upcoming resource re-calculation, and allow categorisation of the Resource into the Indicated and Measured categories in preparation for the BFS commencing Q2 2008.

A 3000m RC drilling programme commenced in Dec 07 at Jabal Shayban, of which approx 600m has been completed, assay results pending.

jman


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## shaunm (2 February 2008)

This looks like a great opportunity. Does anyone have any thoughts on why the SP has not recovered like many others after last weeks rout?


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## jman2007 (2 February 2008)

shaunm said:


> This looks like a great opportunity. Does anyone have any thoughts on why the SP has not recovered like many others after last weeks rout?




Well with the aquisition of Vertex and the issue of new shares to fund it, there are about 744M listed ordinary shares causing substansial dilution to holders of former ADV group.  Imo, it may take some serious momentum to get this moving.  I'm actually reasonably happy with the sp, seems like 20c might be baseline support atm.

jman


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## BSD (21 February 2008)

Great resource upgrade today.

1,000,000 tonnes of copper and 400,000 tonnes of zinc

http://www.asx.com.au/asx/statistics/showAnnouncementPDF.do?idsID=00814228

The gold and silver hasn't been calculated yet and plenty more drilling and results are pending. 

It looks as though the mining can begin on Lode 4 with the already deliniated 570,000 tonnes of copper at 2.3% and nearby decline - before open pit work begins on the caps. 

Love to hear your opinion JMan?

There is still a big overhang of stock weighing CGG down. I look forward to it dissapearing. This resource upgrade should assist in bringing onboard some new players. Portfolio Partners are already onboard.


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## BSD (28 February 2008)

Good volume shifting the sellers this week. 

Ongoing buyer this afternoon for millions. Do a replay...

$0.30 the next step with fundamental support of looming new highs in copper and gold. 

Show me another 1mt Cu deposit at 2% at this price...


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## jman2007 (3 March 2008)

BSD said:


> Great resource upgrade today.
> 
> 1,000,000 tonnes of copper and 400,000 tonnes of zinc
> 
> ...




Hey BSD,

Sorry mate, just got back from the bush and from chasing drilling rigs around the countryside!

Well I've had a quick look at the release, and based on the available information we have, it certainly appears as though the project would have reasonably robust financials.

Lode 4 certainly looks like the money shot atm, obviously well below the base of a conceivable open pit design, but it appears as though they could drive down with stopes and mine it out that way, so it looks like a combination of open cut and underground at this stage.

BSD, not quite sure what you mean by the overhang of stock disappearing? be interested to hear your thoughts. I'm still a little concerned by the sheer volume of shares on placement here, which imo is the one of the potential downsides. Addtionally, the ability of CGG to continue as a going concern relies heavily on their ability to raise equity from the market, but as you mentioned, the more they delineate these ore bodies and convert them to more "measured" and less "indicated" resources, the greater the investment potential will be.

If they manage to obtain and ore reserve figure for lode 4, this would obviously be a major achievment, as there is simply no higher category in terms of confidence in the JORC Code.

Obviously some of the underground workings are flooded out, hence the initiation of the dewatering phase, some idea of where the local water table sits would be very useful here.

Looking forward to your reply mate.

Cheers
jman


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## BSD (5 March 2008)

jman2007 said:


> Hey BSD,
> 
> not quite sure what you mean by the overhang of stock disappearing? be interested to hear your thoughts. I'm still a little concerned by the sheer volume of shares on placement here, which imo is the one of the potential downsides.
> 
> ...




The stock overhang is a result of the past of CGG; being a backdoor of the Vertex assets into ADV Group (ADS), a failed company focussed on medical imaging. 

This shell was less than ideal, with a bucket of script still in the hands of people with no interest in copper/gold exploration, many of who vended their businesses into ADS for scrip. These guys have no interest in mining and want their cash. 

The worst example was a massive chunk of options with 5c to pay, now turned into shares post the restructure. There has therefore been no shortage of people who are happy to knock-out their CGG regardless of drill results, JORC upgrades and prevailing metals prices. 

Large standing sell orders have been blanketing the stock for months, even before the restructure was finalised. Anytime a rally occurs, a wave of selling emerges. Note the days of trade when the restructure was completed and the recent performance post the bullish JORC upgrade. 

Thankfully, buyers are still coming into the story and today a 3m line was crossed at 25c. 

Someone yesterday was ongoing for millions of shares on the buy side - I hope the 3m line today wasn't the end of his buying, but with no follow-through this afternoon after the line went through, it could be that this buyer is done for now and I may be wrong (again) in my claims of the selling drying-up.

At least the price has been getting some traction (22c - 25c) in the last fortnight, offering some hope of the sellers getting exhausted. But remember, massive volume was done around 30c - so there are plenty of stale bulls. 

You may have noted by now that I like to follow the activity closely to understand who is buying and selling!

The absolute number of shares does not phase me in the slightest. It doesn't mean anything and attracts a bit of liquidity. 


You are right that capital raising in the next twelve months will be required to progress on the feasibility front and at the moment they and every other player in the space have no chance placing stock in this market. 

That said, copper concentrates are in great deficit in China and many Chinese firms have taken strategic stakes in juniors to get their hands on future offtakes. MLM and ALB are examples of this in the Ni space. FXR is another group that attracted an investor to their register at a premium to the prevailing market. 

CGG has a far superior resource to many of the projects securing equity from Chinese partners for long-term offtakes, so fingers crossed a deal could be done on this front. 

Let us also not forget that CGG operates in Saudi Arabia, a money rich part of the world with a government that is very supportive of endeavours to diversify the economic output of the nation away from energy. 


As for the water table - that is beyond my knowledge.


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## jman2007 (6 March 2008)

BSD said:


> The stock overhang is a result of the past of CGG; being a backdoor of the Vertex assets into ADV Group (ADS), a failed company focussed on medical imaging.
> 
> This shell was less than ideal, with a bucket of script still in the hands of people with no interest in copper/gold exploration, many of who vended their businesses into ADS for scrip. These guys have no interest in mining and want their cash.
> 
> ...




BSD,

Some great insights there, I was also at a loss to explain with the recent JORC upgrade just why there was not much movement in the sp, but your explanation goes a long way in explaining these patterns.  I guess in a nutshell you seem to be proposing that until these holders not interested in the fundamentals offload their shares, it will be difficult to build any serious momentum as long as hordes of sellers materialise each time.

I was also thinking that exposure to Saudi interests may also open up new opportunities for financing, as it would certainly be in their best interests for the economy to diversify and add another string to its bow. The Chinese connection is obviously purely speculative at this stage, but I don't doubt that they are constantly assessing and reviewing jnr's aound the world, and imo this project will be beginning to generate some interest somewhere.

Cheers
jman


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## jman2007 (13 March 2008)

Some nice Au-grade continuity from Jabal Shayban,

They're obviously confident of uncovering some more mineralisation along strike in both directions, and also down dip and down plunge.  Grades are certainly not stellar, but factor in the additional Ag credits, and the width of the mineralized zones, and we just may have a nice little cash-flow starter project here.

I'm sure Jabal Shayban will rapidly increase in importance during the year, depending on just how quickly they can prove up the resource, CGG appear to think the best prospects for early production would lie with this prospect, the capex for development may in the long run, be substansially less than for Jabal Sayid(?).... open question there! Refer to my Dec 24th post for details.

jman


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## Miner (14 March 2008)

interesting report from Owls on late Feb as speculative buy. Then the report came as good drilling.
What is the real future of this stock CGG ?

Regards


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## jman2007 (14 March 2008)

Miner said:


> interesting report from Owls on late Feb as speculative buy. Then the report came as good drilling.
> What is the real future of this stock CGG ?
> 
> Regards




Hehe...

Sorry Miner, left my crystal ball at home today. 

I read the Owl report, not too much disclosed that we didn't already know, they have a twelve month price target of 47c, which would represent a financial gain of approx 100%.

This stock obviously is still speculative and relatively high-risk.

Key points to consider Miner would be CGG's financial position (I am unsure of their current cash balance) and their heavy reliance on the market for equity raising, as funding for these types of projects are naturally reliant upon this mechansim.  The Vertex acquisition may also place some unecessary financial strain on CGG in the future.

Future price triggers could be a positive outcome for the Jabal Sayid Pre-Feasibility and an increase in the global resource, as the Owl report mentions. Further postive results from other prospects such as Jabal Shayban would obviously be well-recieved by the market as well.

jman


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## BSD (16 March 2008)

Found this very detailed research piece on the CGG website:

http://www.citadelrg.com.au/links/news-articles-media/petra-capital-cgg-arabian-delight-0108.pdf

Not familiar with the analyst or background of Petra Capital, but I do know they have been active buyers of the stock in recent weeks. Probably off-the-back-of marketing this report. 

Some key points from the piece:

* Gold project Jabal Shayban (US50m capex) to be brought into production before the larger copper/zinc Jabal Sayid (US360m)

* Analyst describes in detail the debt funding options offered by the Saudi govt (up to 75%)

* Assuming $660 gold and $2.50 copper (pretty bullish, but similar to WiseOwl)


My issue with the attached report is I cannot find any mention of dilution. As Jman notes, CGG needs to raise $10s of millions to complete these feasibility studies. There is no way the same amount of shares will be on issue at the time of production. 

I note the WiseOwl note provided by Miner provides for the issuance of an extra 120 million shares (~10%) dilution. 

Shareholders shouldn't be disheartened by necessary dilution. Hopefully, a convertible note (or similar) can be used to fund feasibility and provide convertibility at a far higher shareprice. 

In reality all of the capex estimates will be wrong by large amounts and slippage will occur in the timeframes. 

But, the beauty of this company for me is the level of upside in scale and the world class quality appearing in the main project. Negative effects can quickly be offset by large additions in tonnage and grade. 

The other projects are completely off the radar and gold projects are far easier and quicker to convert to cashflow than base metals. 

Finally, some pretty upbeat comments from the Saudi press

http://www.meed.com/news/2008/03/citadel_finds_gold_bonanza_at_shayban_mining_project.html


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## BSD (18 March 2008)

Stunning and surprising gold drill results today from Jabal Shayban.

http://www.citadelrg.com.au/links/announcements/180308-shayban-exceptional-results.pdf

To quote:

"_*39m at 37.8 g/t Au from 5m to 44m, including 12m at 100.5 g/t (uncut)*"

"The bonanza grade intersection reported in drillhole SH031RC represents part of a blanket of supergene enrichment within the oxide zone covering the Shayban hill. *This is known to extend over at least 200m of strike, could be up to 100m wide, and remains open to the north along strike*._"


It looks as though the gold projects in CGG have a substantial value and need to be taken very seriously. Until now CGG traded solely on the value of Jabal Sayid. 

Good volume and price action today in the face of bearish miner sentiment. 

These results will require an adjustment to management and analysts approach to the company. A 33% increase in the drilling effort for the project has been the immediate response.


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## jman2007 (18 March 2008)

BSD said:


> Stunning and surprising gold drill results today from Jabal Shayban.
> 
> http://www.citadelrg.com.au/links/announcements/180308-shayban-exceptional-results.pdf
> 
> ...




Cripes BSD!

Looks like they definitely hit the jackpot with that hole.... very impressive width and grade to say the least! I think even CGG will be quietly pinching themselves here, up until now, the market has attributed almost no value to their other prospects, but that may indeed change as you mentioned.  

If they can demonstrate continuity of these grades along strike, and 200-300m would be enough imo... then this has the potential to be a real company-maker on the grades alone.

It will be interesting to see if this can break through 30c and maintain support in the 31-15c bracket.

The next round of drilling reults will be very interesting indeed. I imagine they will tighten up on line and hole spacing, and drill this zone out as quickly as possible.

Cheers
jman


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## jman2007 (26 March 2008)

*"200m at 2.51% Cu extends lode 4 mineralisation - Jabal Sayid"*

A further steady trickle of positive news from Jabal Sayid, this mineralised zone (from 220m - also ended in mineralisation) occurs updip of the previously defined mineralised envelope, so basically there is mineralisation closer to the surface than they expected.  

As indicated in the Owl report supplied by Miner, with the recent resource upgrades at Jabal Sayid it may turn at that lodes 1,2 and 4 are actually part of 1 larger system.  Deeper drilling to 1000 below surface underneath lode 4 targeting the high-grade extensions is planned for later this year.

Haven't been watching the trading ultra-closely, but it appears to me that momentum on the buy side is slowly building, which harks back to BSD's earlier observations in this thread.

Cheers
jman


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## Sean K (26 March 2008)

This is really becoming very interesting. Can't get over those recent grades and intersections and the lack of real follow through in the sp. Potential breakout alert (AGAIN!) for ADV now CGG.


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## Sean K (27 March 2008)

Halt for a capital raising.

Wonder if that will mean the price retreat from the 30s again? 



> *Request for Trading Halt*
> 
> Citadel Resource Group Limited (ASX Code: CGG) requests a trading halt of its securities (CGG) & (CGGCA) with immediate effect.
> 
> ...



Might depend a bit on the price I suppose.

In "contemplation" of a "proposed" capital raising? LOL. Well, are they going to do it or not? Bit weird  Does it mean they've been approached by an investor with a bag of gold or something?


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## jman2007 (27 March 2008)

kennas said:


> Halt for a capital raising.
> 
> Wonder if that will mean the price retreat from the 30s again?
> 
> ...




Yeah I agree,

The wording does seem slightly odd, I can't really imagine them releasing an announcement like: "Citadel Resource Group is pleased to announce that we are _thinking_ about a $XM Capital Raising".

Timing wise, I'm not really too surprised by this, as their reasonably aggressive exploration strategy and resource drilling focus at Jabal Sayid must be burning a fair bit of cash. The 30c mark prove to be a tough nut to crack this time around (again!). 

Maybe they found black gold? 

jman


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## cowboy (28 March 2008)

First timer on the Forum. 

Went to a Gold Day seminar on 26 March and impressed with presentation from CEO of CGG.  

Had a look at their Balance Sheet - 31/12 07.  Cash situation was about $6 million - so probably not much left.

Also, concerned to see a Deferred Tax Liability of $72 million!  Checked the ASX announcements and this "liability" relates to the former Vertex Group and a company in Saudi Arabia.  I'm not sure if its a real liability!

Exploration announcements have been fantastic - looking forward to their next announcement on capital raising


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## jman2007 (28 March 2008)

cowboy said:


> First timer on the Forum.
> 
> Went to a Gold Day seminar on 26 March and impressed with presentation from CEO of CGG.
> 
> ...




A warm welcome to ASF Cowboy,

Yes the exploration and infill drilling results as of late have been very encouraging.  Probably some recent value in the sp is attributable to the Jabal Shayban drilling success.

BSD has some very interesting comments re the trading patterns of CGG on an earlier post in this thread, and I'd encourage you to have a read if you haven't done so already.  Our resident t/a guru Kennas should be able to provide some addtional insights as well, if this is your area of expertise/interest.

Wasn't aware of the tax liability issue, but I'll definitely be having a dig as it potentially sounds a little concerning.

jman


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## crisstoff (30 March 2008)

Just been looking at this share and have noticed that according to the December Top 20 Shareholder list that Opes-Prime Sharebroking Limited hold 10.8M shares. 
Assuming that the Trading Halt was not for this reason, it may be a bit of luck that they are in a Trading Halt as maybe they can place the shares off-market. It may be ugly otherwise.

Other than these comments it has some fantastic grades and potential.

What does everything of their management getting these projects into production and in what timeframe?


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## BSD (31 March 2008)

What a dissapointing result today after such a positive announcement.

Placing almost $30million worth of stock to instos at almost no discount is an enormous feat in this market and the failure of a bucket-shop sends the stock south on fears of forced sellers. 

Opes has been a huge seller in the market since the reported 10m shares at December 30. The only issue (in the short term) is the number of shares associated with Opes in the holding of Anz Nominees Cash A/c on the register. 

In any case, this is all noise and long-term investors shouldn't give a stuff about such rot. 

More important is the obvious support for the company from instos willing to punt $30million and the fact CGG can now drill like crazy on the highly prospective projects and seriously advance the bankable feasibility studies on Jabal Sayid and Jabal Shayban. 

Interesting that they noted an intention to 'explore' the nickel sulphide (not laterite) and platinum group element projects with this cash. Their ground is obviously virgin territory, the gold project has surprised everyone - what could happen if they have something semi-decent in Ni sulphides and PGEs ???

Enough ramping!


As for the 'deferred tax liability' of $72m in CGG's balance sheet - from what I can ascertain, this is an accounting treatment stemming from the back door listing. 

Under IFRS (apparently, I am NOT an accountant) the increase in assets from the acquisition/introduction of ~$240m worth of 'exploration and evaluation assets' on the balance sheet, must be matched by the corresponding 'tax liability' associated with the potential benefit. 

The accounting treatment accounts for the potential tax liability against the sale of the asset. ie 30% of $240m =  $72m.

Nothing to worry about - but I do stress I am not an accountant.


The big picture is now even bigger with plenty of fully financed drilling to come. Hopefully the forced selling from those financed by the Opes Prime Bucket Shop creates a bigger buying opportunity for the liquid amongst us with a time horizon in years not days.


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## jman2007 (31 March 2008)

BSD said:


> What a dissapointing result today after such a positive announcement.
> 
> Placing almost $30million worth of stock to instos at almost no discount is an enormous feat in this market and the failure of a bucket-shop sends the stock south on fears of forced sellers.




Yes they have done well,

But unfortunate with the timing of the release which coincided with the Opes downfall, which looks to have sparked a bit of panic selling across the board today.  

On the upside, CGG look to be increasing their profile amongst sophisticated Australian investors, and the fact that this offer was oversubscribed and completed within 24 hours attests to the potential of Jabal Sayid and Jabal Shayban.  The big instituitional investors may now be dipping their feet back into the market, and shrugging off the continuing doom and gloom coming out of the US.

Looks like Wadi Kamal is next on the hit list, with this $29M I'll be looking for an accelerated effort towards the completion of the Jabal Sayid BFS, and some aggressive exploration drilling at Jabal Shayban.  Kennas's chart shows some clear resistance around 30c, so I'm not too surprised to see a retreat from this mark.  But then again, this is a long-term hold for me.

Thanks for the take on the tax liability, which may well be more of a book-keeping requirement rather than a "current" liability so to speak.

Cheers
jman


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## jman2007 (6 April 2008)

Interesting article in Highgrade about CGG,

Main points:

A.) Recent funds from Cap rasing will be used for the bankable feasibility study at Jabal Sayid, and to place deposits on long-lead items such as grinding mills to reduce waiting times.

B.) CGG believe Jabal Sayid could support a 3-5MT/annum operation, beginning as an _underground_ operation - via a 3.9km decline (which they're already de-watering) into the high-grade guts of the ore body and eventually transform it into an open pit.

C.) Saudi Government keen to provide assistance - they are installing a power grid to the site (apparently from a private conversation Ms Scotland had with the Saudi Mines Minister).

D.) Source of water 50km away, at a place called the Haratz.  Medina (120km away, pop over 1 million) has also offered to sell CGG their wastewater. The govt may build the pipeline (not guaranteed) which would support a 10-20MT/annum operation, so water should hopefully be plentiful.

E.) Possible dual listing on the TSX or AIM, but probably not going to happen over the short-term.

Cheers
jman


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## Sean K (11 April 2008)

I haven't had time to look more closely at this ann, but it seems pretty good for CGG on the surface. Will add more comments later. 



> *JABAL SAYID PROJECT RAPIDLY PROGRESSING TOWARDS BFS*
> 
> Highlights:
> • Delineation of high grade core in Lode 4 and Lode 2 (31 Mt at 2.3% Cu) provides focus to forward planning for Stage 1 of Jabal Sayid development.
> ...



Technically, it's winding up....


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## jman2007 (11 April 2008)

Yeah the ann is pretty broad-picture, hand wavy type stuff,

But obviously good for CGG to keep moving forward on the BFS front, looks to have been a flood of recruitment in the last few weeks with experts and work groups in various areas being formed and coming on board.

What do you reckon Kennas, is this possibly primed as a breakout candidate? Volume looks to have been picking up, but the sellers continually keep coming out of the woodwork approaching 30c, but I wonder how long this cycle can be kept being repeated before the sellers begin to dry up.

jman


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## Sean K (24 May 2008)

jman2007 said:


> What do you reckon Kennas, is this possibly primed as a breakout candidate? Volume looks to have been picking up, but the sellers continually keep coming out of the woodwork approaching 30c, but I wonder how long this cycle can be kept being repeated before the sellers begin to dry up.
> 
> jman



Yep, still potential breakout. Been so for a year. 

Looks like Jabal Sayid is turning into a decent deposit.

220m @ 1.1% Cu.... sheeesh. 

Mentioned on Egoli yesterday:


> Citadel Resources Group Limited (CGG) advised that significant tonnages are expected to be added to its Jabal Sayid minerals resource in Saudi Arabia following the release of new copper intersections closer to the surface than expected. The new copper-gold-silver intersections, including strike lengths of up to 223 metres at 1.11% copper, were more than 100 metres above the existing Lode 4 resource envelope at Jabal Sayid. “This has provided yet another bonus to our drill expectations at Jabal Sayid which continues to stamp its presence as a potentially world class minerals project,” CEO Ms Ines Scotland said. “We’ve previously announced that Jabal Sayid is open at depth and along strike, but we didn’t realize it’s also open towards surface. This is a fantastic copper project and it just keeps getting better,” Ms Scotland said. “Drillhole 4011 has intersected plus 2% copper mineralization 100m above the current resource boundary and this has been affirmed by BDH4013 which was drilled for metallurgical samples.


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## jman2007 (18 June 2008)

kennas,

CGG been building up momentum steadily since early last month, imho fairly significant that it is holding firm @ approx 34c when you take into account the historical resistance level @30c indicated on your chart. This is the first time we have seen 30c broken since I have been a holder. 

I sometimes like to think of Cu as a it of a barometer for the health of gobal markets, and with the current strong demand and the way Jabal Sayid is shaping up, the signs are promising imo. 

BSD/kennas, love to hear your comments.

jman


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## Sean K (24 June 2008)

Fantastic break up from long term resistance. Note that it tested 30 after breaking through and it firmed as support. 

So, what have they got?

Copper: 
Jabal Sayid: 56Mt @ 1.6% Cu (JV 50%) 74Mt including Au & Zn - (to be significantly upgraded with recent drilling noted above.)
Gold (5 EL’s): 
Shayban: currently drilling, 250,000oz + new drilling 39m @ 38 g/t
Lahuf: 6km from a historical 6Moz Au producer with a resource of 1.2 Mt at 2.83 g/t Au down to 100m and open at depth. Resource from surface to 80m 1.7Mt @ 2.6 g/t.
Baydan: adjacent to Shayban, 600,000t @ 16.6%Zn & 2 g/t Au
Bari: ancient gold workings covering 1.4 km of strike with historical drill results including 39m at 7.32 g/t Au, 12.86 g/t Ag and 84m at 6.75 g/t Au and 5.1 g/t Ag.
Wadi Kamal: virtually unexplored layered ultramafic complex where recent exploration has upgraded the project to a high priority.
Muraijib-Bil’iwy (100%): limited trenching of a major alteration system which covers an area of 6km x 2km intersected 32m at 1.75 g/t Au and 12m at 1.8 g/t Au.

Need to crunch some numbers on all that to find an IGV but looks pretty damn impressive.

Just some broad numbers on Jabal Sayid which is the most advanced and going into production in 2011/12. 

Initial mining study on Jabal Sayid (50% JV) plans for: 
2 to 3 Mtpa, 
Producing 45kT to 60kT pa copper (99m - 132m lbs) Copper @ $8500 tn,  Opex 0.96c lb = $95m - $126m, 
Income $382 - 510m less opex = $287 - $384m
CGG share $144 - 192m pa.  

Capex $300m, Is the JV funding any of this?

MC about $385m fully diluted. Is that right? 1.1b @ .34c? 

Assume capex is half debt and equity perhaps, so dilute $150m, MC to $535m add in costs up to production ($5m a quarter) incl current BFS $60m ish through another raising, MC dilutes to about $600m. 

Cash in the bank after raising??

Pretty broad but just on Jabal Sayid income of $150- 200m pa, smack a pe of 10 on it and it might be worth about $1.5b - $2b MC. Current forcasted pluck MC of $600m. So, looks cheapish. 

Then add in those other projects. Shayban will obviously be a mine as well. 

Any adjustments/comments on those back of the envelope figures welcome.


----------



## jman2007 (24 June 2008)

kennas said:


> Fantastic break up from long term resistance. Note that it tested 30 after breaking through and it firmed as support.
> 
> Any adjustments/comments on those back of the envelope figures welcome.




I am actually considering taking another bite of the cherry at some stage, and topping up with some more CGG. Breakout looks to be confirmed now, with some more positive price action pushing it up another 10.3%

Haven't had a chance to have a good look at your figures, but will do so over the next few days. Fairly remarkable turnaround in sentiment, just wish I'd loaded up more at 21.5c...

jman


----------



## Sean K (25 June 2008)

jman2007 said:


> I am actually considering taking another bite of the cherry at some stage, and topping up with some more CGG. Breakout looks to be confirmed now, with some more positive price action pushing it up another 10.3%
> 
> Haven't had a chance to have a good look at your figures, but will do so over the next few days. Fairly remarkable turnaround in sentiment, just wish I'd loaded up more at 21.5c...
> 
> jman



Aaaaghhhh! 

Kennas says to himself, 'golly, must buy some of that now that it's broken through, and the figures look great'. And doesn't. 

jman, I'm going to do some more work on the above figures to put it in some type of cleaner order. Would appreciate your thoughts though. I'm sure there's gaping holes.


----------



## jman2007 (1 July 2008)

kennas said:


> Fantastic break up from long term resistance. Note that it tested 30 after breaking through and it firmed as support.
> 
> Need to crunch some numbers on all that to find an IGV but looks pretty damn impressive.
> 
> Any adjustments/comments on those back of the envelope figures welcome.




Hey mate,

Sorry for taking a while to get back to you on this (been completely side-tracked chasing girls... unsuccessfully .

I'll have a crack at a hypothetical IGV for Jabal Sayid:

Contained tonnes of copper, *Inferred*:

52.1Mt @ 1.13%Cu for 587,600t contained Cu.
Assume long-term price of Cu @ US$ 8000/t = US$ 4.78B

Contained tonnes of copper, *Indicated*:

22.2Mt @ 1.84%Cu for 408,480t contained Cu.
@ $US 8000/t = US$ 3.27B

Bear in mind that in all likelihood we will see some substansial resource upgrades at Jabal Sayid (certainly in terms of the overall tonnage anyway), if announcements from CGG as in "_200m @ 2.51% Cu extends Lode 4 Mineralisation_" are anything to go by (26/03/08).

Contained tonnes of zinc, *Inferred*:

421,000t contained zinc
Long-term Zn price more subjective  US$2000/t? 
= US$ 842M

and

67,000t contained zinc *Indicated*:
= US$ 134M

Au and Ag credits are more difficult to predict, at this stage there seems to be multiple mineralisation styles within the lodes, and representative Au grades seem to be between 0.35g-0.95g/t, and 13.5-69.2g/t Ag. Resource estimate for these metals due out later this year. Possibility that the Au could be practically extracted using a low cost heap-leach approach perhaps??..

Well, minus the Au and Ag credits I get a IGV for JS of *US$ 9.03B*, with of course, CGG earning a 50% interest in the project. Hmmm, not bad : I've double-checked the numbers, but would appreciate any comments/corrections to them. Very ball-park stuff at this stage. Also worth mentioning that a substansial portion of the IGV is based on inferred tonnes, but I would expect the quality of the tonnes to improve as more infill/extensional drilling is carried out over the next 12-18 months.

Yep, fully diluted, MC of 385M'ish looks correct.

I'm not really in the know when it comes to opex/lb for a Cu outfit, I assume the 96c/lb is some kind of industry average figure then. Your other assumptions look reasonable, 

Have a look at this link from the CGG website:

http://www.citadelrg.com.au/links/news-articles-media/wiseowl-digging-for-arabian-treasure-251107.pdf

Potentially there is also a target potential of 2.5Moz Au from Shayban and other prospects, plus the Ni and PGE etc projects - which I haven't even factored in yet. Wise Owl use a base-case scenario of capex US$350M of which there will be a 50% split between debt and equity as well.

Earlier in this thread BSD mentioned a possible debt-funding option offerred by the Saudi Govt (up to 75%). Not 100% sure how CMCI and Vertex fit into the broad scheme of things in terms funding any development, but my understanding is that they are now major shareholders/investors (?) in CGG.

Comments welcome.

Cheers
jman


----------



## Sean K (2 July 2008)

Absolutely amazing results from CGG just in.:

*JABAL SAYID RETURNS OVER 300 METRES AT 2.7% CU*

TREMENDOUS HIGH-GRADE COPPER INTERSECTION

The latest results from diamond drilling of Lode 4 confirm the consistency of the Lode 4 mineralization at depth and further supports the case for down plunge potential. Diamond drillhole 4012 was targeted to pass through the western side of the massive sulphide part of Lode 4, and to test the down plunge continuation of the main stockwork mineralization.

o This hole returned 301m at 2.7% copper and 0.29g/t gold from 350m, with several high grade copper zones including 19m at 4.0% copper, and 27m at 5.0% copper;

o At 2.7% copper this intersection is higher grade than the high grade core of 25Mt at 2.3% copper identified in the current Lode 4 Mineral Resource. This new high grade intersection will be used in the calculation of the upgraded JORC Mineral Resource due out later this year.

o It also includes a gold zone of 46m at 0.80g/t gold and 39.7 g/t silver from 350m. Precious metal credits are not included in the current JORC resource.

o The hole is the deepest drilled so far by Citadel at Jabal Sayid. The tail of the hole intersected a high grade zone of over 5% copper (27m at 5.0% copper) in the down plunge position. There is no drilling below this intersection, meaning that the orebody remains open at depth.

o It demonstrates the continuous nature of the copper mineralisation. Lode 4 essentially has no internal waste, meaning that mining and stoping designs are simpler, and can be geared towards higher mining rates.

Turning into a world class asset by the looks.


----------



## Sean K (2 July 2008)

jman2007 said:


> Hey mate,
> 
> Well, minus the Au and Ag credits I get a IGV for JS of *US$ 9.03B*, with of course, CGG earning a 50% interest in the project.
> 
> ...



Thanks jman, Well, just on JS this is now looking like tremedous value on the recent results to be added into the JORC. Quite incredible actually. 

The IGV and potential MC into production look conservative now.


----------



## jman2007 (2 July 2008)

kennas said:


> Absolutely amazing results from CGG just in.:
> 
> *JABAL SAYID RETURNS OVER 300 METRES AT 2.7% CU*
> 
> ...




Thanks for the heads up mate,

Looks fantastic doesn't it?.. . Makes you wonder what the true potential could actually be when considering lode 4 is still open at depth. CGG believe lode 4 could be a high-grade stand-alone operation on its own, but the option to bring lodes 1 and 2 online at a later date would remain open.

Essentially there is no internal waste from lode 4 at all, and as for the down-plunge intersection of 27m @ 5% Cu in the tail?!!.. let's get a rig underground! Certainly putting forward a very strong case for a profitbale underground operation.

jman


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## Sean K (4 July 2008)

Why does the ASX only deliver 'please explains' to companies that have gone north immediately, compared to those that have gone south.  

Idiots!!!!

Like, 

Really stupidly idiotic!!!!

Do they have a brain?

I think not.

They are taxi drivers.

Actually, 

ex taxi drivers...

Too stupid to put an indicator on.

WTF!


----------



## Sean K (4 July 2008)

Yes, and confirmed.



Our stock price has gone up because we have a great asset. 

Now, please go away.


Golly, 

When does this happen when an sp goes down? 

Idiots 

aaaaaagggghhhhhh


----------



## jman2007 (4 July 2008)

kennas said:


> Our stock price has gone up because we have a great asset.
> 
> Now, please go away.




Lol kennas....

Perhaps they thought of this on their break, (while sipping on their skinny latte's) as a good way to pass some time?...

Page two of the the CGG release clearly directs readers to refer to Table 2, which gives a clear breakdown of the J-S Resource in terms of JORC categories.

I can understand the ASX wanting to clamp down on companies releasing wild and speculative "target potential of X-Million tonnes at prospect XYZ" type releases...but this seems to me to be extremely pedantic.

Took another nibble at 33c yesterday... couldn't resist. 

jman


----------



## Sean K (11 July 2008)

LOL,

I sold this yesterday.

Will wait to see if it can reclaim 30c before I get back in. Was a critical break down IMO.


*DRILLING CONTINUES TO EXPAND THE SHAYBAN PROJECT*

LATEST DRILLING INTERSECTS BROAD ZONES OF GOLD MINERALISATION AND ASSAYS CONFIRM SIGNIFICANT SILVER, ZINC, AND COPPER CREDITS

Highlights:

• Additional drilling intersects extensive zones of gold and silver mineralisation from surface, or near surface, over the entire strike length drilled (+550m).
• Assays confirm significant silver and base metal credits in the previously reported gold zones and highlight the polymetallic nature of the mineralisation.


----------



## Sean K (31 July 2008)

At least CGG will learn how to REALLY ramp their company now.

*Former Oxiana boss to advise Citadel*
July 31, 2008 - 12:28PM

Gold explorer Citadel Resource Group Ltd has appointed former Oxiana Ltd managing director Owen Hegarty to an adviser role to the company.

Mr Hegarty, who stepped down from the managing director role after the merger of Oxiana and zinc and lead producer Zinifex Ltd, will take up his post at Citadel on August 1.

He remains a non-executive director of the merged Oxiana and Zinifex - OZ Minerals Ltd - and a director of the Minerals Council of Australia.

Citadel's flagship project is the Jabal Sayid gold and base metal's joint venture in Saudi Arabia with local outfit CMCI.


----------



## jman2007 (6 August 2008)

kennas said:


> At least CGG will learn how to REALLY ramp their company now.
> 
> *Former Oxiana boss to advise Citadel*
> July 31, 2008 - 12:28PM
> ...




Haha...

I reckon this topdog should be worth at least 5c to the sp if he's half as good as they reckon he is 

jman


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## Sean K (7 October 2008)

CGG has come out with a couple of good anns recently and continues to make progress with JS and it's other deposits.

Has $25m in the bank to take it through the rough stuff and must be one of the better placed explorers/developers to make it through this little hic up  and be a producer.

MC off 75% ish and may be a nice tasty bite for a major when the inevitable consolidation takes place, if the market as we know it still exists in the future.

7 Oct ann:



> Citadel is moving the Jabal Sayid project forward:
> 
> o Finalising a feasibility study on the Jabal Sayid copper sulphide deposit.
> o Total mineral resources at Jabal Sayid of 74Mt. Including 52 Mt at 1.6% Cu (Stockwork Cu) 4 Mt at 1.9% Cu & 1.3% Zn (Massive Sulphide Cu/Zn) and 18 Mt at 2.2% Zn & 0.4% Cu (Massive Sulphide Zn) (Table 1).
> ...




The PMs are lookingpretty good here after the recent drilling results too, which may save them if Au/Ag turn when (if) currencies turn to dust.

2 Oct ann:



> EXPLORATION STEPS OUT KNOWN MINERALISATION AT LODE 1 JABAL SAYID
> 
> Drillhole BRC-4011 intersects 77m at 3.0% Cu, inc 20m at 7.3% Cu, 1.2 g/t Au
> • Exploration drilling designed to test the near surface oxide gold zone at Lode 1 encountered broad zones of both oxide gold and silver mineralisation.
> ...




(not holding, waiting.....)


----------



## jman2007 (18 October 2008)

kennas said:


> CGG has come out with a couple of good anns recently and continues to make progress with JS and it's other deposits.
> 
> Has $25m in the bank to take it through the rough stuff and must be one of the better placed explorers/developers to make it through this little hic up  and be a producer.




Been a while since I poked my nose into this thread

In hindsight kennas I probably should have shot through with a modest profit a few months ago when this was threatening to well and truly bust out. Got greedy though, ignored the technicals and now licking my wounds. 

There has been a plethora of positve news streaming out from J-S this month, only forseeable problem is the persistent seller at 16c with 6.5M shares, otherwise we would probably see this levelling at 20c. 

Major news for this month:

-   Discovery of new oxide aone above Lode 1 Resource envelope containing   substansial Cu, Au and Ag credits. A definite RC target, potential for Open Cut mining here while underground mining is ramped up. Vey exciting.

-   Dewatering of decline complete, uderground contractors being mobilised to J-S to commence underground rehab in prep for drilling, presumably targeting the open depth potential underneath Lodes 2 and 4. 30,000,000L pumped out of the mine.

-   Potential extensions to Lode 1 Resource envelope with discovery of high grade core (incl 8m at 12% Cu from 203m..wow!). Interesting.

At least 2 rigs currently drilling on the surface, targeting extensions and infilling zones in Lodes 2and 4. Looking forward to the revided resource figures this Quater, this time with Au. I think it's worth noting that CGG may be a slightly superior position than its peers wrt funding arrangements. They may be able to fund up to 75% of the J-S capex with debt financing available through the Saudi Banks, and are only required at this stage to front up with 12.5% of equity for the capex which is estimated at around $330M. That has to be good news for shareholders as I would think this limits the dilutionary effect from future cap raisings.

I had some issues with the CGG release on the 2nd of Oct, as there were some errors in the text, and the diagrams were poorly labelled, or in some cases not labelled correctly. I e-mailed Ines Scotland and recieved this reply within 24hrs. I think it was good reply, but reminding them that there are people out there capable of pulling apart their data reminds them that they need to maintain high quality at all times. 

---------------------------------------------------------
(Quote)

"Dear XXXX

Thanks for your note you are correct this was an oversight. The 77m @ 3.0% Cu refers to hole BRC (our new prefix for RC holes) 1048. BDH4011 was an earlier Lode 4 diamond hole that intersected 223m at 1.1%Cu, 0.3 g/t Au from 153m, incl 48m at 2.25% Cu, 0.7 g/t Au from 153m that pushed the top of Lode 4 around 50m higher than the current resource.

It is not an adequate excuse however we rushed the release out a day earlier than we would usually as the discovery of a new copper sulphide zone north of Lode 1 is one the most significant events we have had in the past 18 months. The dips and azis for are BRC1046 dips -90 to 360; BRC1047 dips -60 to 270; BRC1048 dips -60 to 090 and hole 1038 does dip to the east BRC1038 dips -90 to 360.  We will have a corrected figure in our annual report. 

The new intersections in this announcement are all from RC holes, and as such have the BRC prefix. Holes 1048, 1038, 1035, 1036, 1043 and 1049 are all RC holes. The other holes in the diagram are all diamond holes.
Thanks for supporting your company and we’ll work to ensure there are no mistakes in future announcements."

Regards,

Ines Scotland

------------------------------------------------------------

Other than a slighly dodgy release (As Ines mentioned - will be corrected in the AR), been a great month for CGG project-wise.

jman


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## jman2007 (11 November 2008)

BSD said:


> Stunning and surprising gold drill results today from Jabal Shayban.
> 
> http://www.citadelrg.com.au/links/announcements/180308-shayban-exceptional-results.pdf
> 
> ...




Some fairly decent follow-up results from Shayban phase 2:

-   19m @ 10.66g/t from 81m _incl_ 8m @ 23.72g/t
-   35m @ 6.14g/t from 39m _incl_ 14m @ 11.97g/t

If I'm reading this release correctly, CGG have only received assay results for 3 of the 40 RC holes from phase 2, of which the 19m and 35m interecepts were from.... so there is another 37 holes worth of data to come!

I say get a diamond rig in there and see what lies underneath this oxide cap. Potential similarities to J-S here, Au mineralisation currently open along strike, down dip and down plunge. Would make a great starter project.

jman


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## Sean K (9 December 2008)

Wow, great intersections.

*LATEST RC DRILLING RESULTS CONTINUE TO DELIVER BROAD HIGH-GRADE GOLD RESULTS*

Highlights:

• New high-grade assay results include:
o 41m at 22.75 g/t gold from 0m - including 16m at 50.71 g/t.
o 28m at 14.17 g/t gold from 14m - including 5m at 65.71 g/t.
o 41m at 2.68 g/t gold from 21m.

• Continued intersection of high-grade primary and oxide gold by the current RC program further demonstrates Shayban’s potential to host a significant resource.
• Mineralisation has now been delineated over a strike length of 550m and is currently open along strike, down dip and down plunge.


Should be one of the few explorers/developers to rise out of the ashes, with cash and a couple of very good known resources.

All depends on how long the decline lasts I suppose.


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## So_Cynical (9 December 2008)

Yes Kennas...almost spectacular results in today's ann.

I couldn't help but notice the ann and haven't had time to 
look right into them yet...u say they have some cash?

http://www.citadelrg.com.au/documents/NewHighGradeGold_JabalShaybanProject.pdf


----------



## Sean K (4 February 2009)

Latest results along strike from post 55 above.

Looks like a pretty nice shoot of gold they've got there.


MORE BONANZA-GRADE GOLD INTERSECTIONS FROM CITADEL’S SHAYBAN PROJECT, SAUDI ARABIA

LATEST RC DRILLING RESULTS CONTINUE TO EXTEND THE HIGH GRADE GOLD ZONES AT SHAYBAN

Highlights:

• The RC program continues to deliver high-grade primary and oxide gold that further upgrades the Shayban deposit.
• New high-grade gold results include:
o 32m at 15.22 g/t gold from 36m (SH067RC)
including 13m at 35.61 g/t gold from 42m
o 20m at 3.92 g/t gold from 59m (SH072RC)
o 16m at 2.59 g/t gold from 5m (SH069RC)
o 14m at 2.17 g/t gold from 30m (SH070RC)
• SH067RC extends the bonanza grade zone a further 20m to the east.
• Mineralisation at Shayban has been delineated over a strike length of 550m and is currently open along strike, down dip and down plunge.
Summary


----------



## J.B.Nimble (5 February 2009)

Yes Shayban looks pretty good, but they seem to have their priorities wrong. It is the much bigger Jabal Sayid copper gold project that is more advanced at this stage and they still talk of investing 250 to 280mill USD to be producing first copper by end of next year. I would feel much more positive if they switched the focus to Shayban which is a much less ambitious project, and with the good grades it is likely to produce a very attractive return. It seems a much better starter project and one that could produce the cash flow to fund Jabal Sayid at a more appropriate time


----------



## Sean K (5 February 2009)

J.B.Nimble said:


> Yes Shayban looks pretty good, but they seem to have their priorities wrong. It is the much bigger Jabal Sayid copper gold project that is more advanced at this stage and they still talk of investing 250 to 280mill USD to be producing first copper by end of next year. I would feel much more positive if they switched the focus to Shayban which is a much less ambitious project, and with the good grades it is likely to produce a very attractive return. It seems a much better starter project and one that could produce the cash flow to fund Jabal Sayid at a more appropriate time



Yeah good point JBN, I hadn't actually thought that myself before. Perhaps they've gone too far down the feasability path with Jabal that they are emotionally attached to it? LOL Would seem smarter to be opening up a near surface gold operation rather than an underground copper one at the moment...


----------



## J.B.Nimble (5 February 2009)

I guess Jabal Sayid made perfect sense up until October. It would be a pretty decent operation - grades look good - but best just to keep the BFS ticking along and not commit serious money until copper prices make some recovery. Regardless of how much blood sweat and tears has gone in to getting it this far, the right thing is to put it to one side and concentrate on something the market does want... 

I see a parallel with PNA. They got the Phu Kham copper gold project up and running just in time for the crunch. How different it might have been if the very attractive but somewhat smaller Ban Houyxai gold silver project had received priority earlier. Right projects but only 20/20 hindsight could have told them wrong sequence...


----------



## Sean K (5 February 2009)

J.B.Nimble said:


> I guess Jabal Sayid made perfect sense up until October. It would be a pretty decent operation - grades look good - but best just to keep the BFS ticking along and not commit serious money until copper prices make some recovery. Regardless of how much blood sweat and tears has gone in to getting it this far, the right thing is to put it to one side and concentrate on something the market does want...
> 
> I see a parallel with PNA. They got the Phu Kham copper gold project up and running just in time for the crunch. How different it might have been if the very attractive but somewhat smaller Ban Houyxai gold silver project had received priority earlier. Right projects but only 20/20 hindsight could have told them wrong sequence...



I suppose if they do all the feasability and get set for development they'll be in prime position once the tide turns again. If it turns again. A few of the near term producers who have been seriously cruched will be good opportunities if the if turns into a when.


----------



## jman2007 (5 February 2009)

J.B.Nimble said:


> Yes Shayban looks pretty good, but they seem to have their priorities wrong. It is the much bigger Jabal Sayid copper gold project that is more advanced at this stage and they still talk of investing 250 to 280mill USD to be producing first copper by end of next year. I would feel much more positive if they switched the focus to Shayban which is a much less ambitious project, and with the good grades it is likely to produce a very attractive return. It seems a much better starter project and one that could produce the cash flow to fund Jabal Sayid at a more appropriate time




I think CGG is coming from a slightly different tact. There is no doubt that there has been a massive shakeout in the Cu industry, and that many marginal projects & developments have bitten the dust. In reality Cu prices have just returned to pre-boom levels where those companies with high quality ore bodies were still making money anyway. I think CGG's point is that they could still high-grade JS profitably, not the preferred option because it obviously depletes your most valuable asset - your ore body, and once that's gone you can never get it back.

On the other hand, other companies in a slightly more enviable position are able to preserve their ore bodies and until happy days return once again, so they simply shut everythng down and get rid of their workforce - many examples of that recently. In CGG's case their best option is probably to get Shayban into the starting blocks as quickly as possible - they should be able to get 70-80K oz from the oxide zone at least, which would at least get some cashflow happening. But they probably still need to demonstrate to the market that J-S is a viable project, which we are all praying it is of course.

jman


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## Sean K (11 February 2009)

They must be reading this thread.


*CITADEL’S EXPLORATION AND DEVELOPMENT EFFORTS CONTINUE TO DEVELOP THE GOLD ASSETS*

CITADEL IS EXPLORING AND DEVELOPING TWO OF ITS MOST PROMISING GOLD PROJECTS – PRELIMINARY EXPLORATION HAS COMMENCED ON SEVERAL OTHERS.

Citadel’s current gold program:

• Resource drilling underway at Jabal Shayban
• Metallurgical testwork for Jabal Sayid Oxide Gold Cap in progress
• Scoping study to Heap Leach the oxide gold cap at Jabal Sayid approx 70% complete
• Study includes trucking higher grade ore for the first 1.5 years from Shayban to Jabal Sayid to increase grade and tonnes
• Production target for 2010 is 50,000 to 60,000 oz at Jabal Sayid with a heap leach located on the tailings storage facility
• Production increases in late 2011 with a CIL plant at Shayban to a target of 100,000 oz p.a.
• Exploration drilling at Lahuf with 2 rigs on site (located 40kms from Jabal Sayid)
• Exploration drilling at Bari planned for March 2009
• Continued exploration on the porphyry gold projects at Hail


----------



## jman2007 (14 February 2009)

kennas said:


> They must be reading this thread.
> 
> *CITADEL’S EXPLORATION AND DEVELOPMENT EFFORTS CONTINUE TO DEVELOP THE GOLD ASSETS*
> 
> CITADEL IS EXPLORING AND DEVELOPING TWO OF ITS MOST PROMISING GOLD PROJECTS – PRELIMINARY EXPLORATION HAS COMMENCED ON SEVERAL OTHERS.




You never know kennas, they may have an insder on the ASF forum..

It was good to get an overview of their gold assets in Saudi, I have to admit I wasn't very familiar at all with some of their lesser-known prospects.

It's interesting that a lot of these anomalies they talk about have not been adequately follwed up by various parties over the years. At Bari for example, those two percussion holes drilled in the 60's in the 'Trench 13' area returned absolutely stunnning results of 39m @ 7.32g/t and 84m @ 6.75g/t, and were seemingly open at the bottom of hole. That's _84m_!...

You have to think that either the previous operator felt they had closed off this mineralisation and that the upside was very limited - and walked away from it, or that CGG have omitted a lot of other less spectacular drilling data from this area, or that these untested anomalies are simply symptomatic of a junior minerals exploration industry whch is slowly fnding its feet. It certainly doesn't sound like you could classify their ground as a "mature" play in the sense of company after company having drilled the same patch of dirt for thirty years. A mature exploration field for example would be many parts of the Goldfields in WA.

These high-grade veins/shoots can be tricky as hell though, I've seen a lot of drill data which initially suggested that the Mother of all Mother Lodes had been hit, only to find that the area around it was completely dead. I suppose the catch would be to have a sufficient density of them to make the area amenable to open-pit mning, like CGG mentioned.

The rock-chip sampling carried out at Murrayjib in 1937-38, yes that's right.. 70 years ago, averaged 5.1 g/t for the entire program. Again there is no way that comparable results in Australia would have remained untested for 70 years. It also sounds like an interesting area. The Hail prospect is another area with no work since 1985, despite 33 rock-chip samples from qtz veins and altered wallrock averaging 3.2 g/t Au.

Hopefully we will see some spectacular results during 2009-10 from some of this ground, I think what makes it exciting is that CGG probably even don't know what to expect from these prospects.

jman


----------



## Johno (19 February 2009)

I just bought into these guys today....the chart has clearly bottomed and its all upside from here IMO. Plenty of potential


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## jman2007 (24 February 2009)

23rd Feb - "Continued High Grade Intersections from Citadel's Shayban Project, Saudi Arabia" - 35m @13.48g/t from 9m.

Call me fussy - or a bit of a pessimist, but I don't think this release was really required by the company. The hole looks to be very close to the original collar location of the bonanza discovery in the north of Shayban, so I'm wondering just how much this extra hole has contributed to CGG's understanding of this high-grade shoot - and indeed the deposit as a whole. Just how many extra tonnes this shoot may add to the overall resource also remains to be seen.

I suspect it was just a bit of a carrot on the stick routine from them, to keep the market inetersted given the POG. But the market didn't really react at all to the release, perhaps investors are thinking the same as me?

The 11m @1.48g/t drilled 200m to the south looked a little bit more interesting to me tbh.

j-fusspot-man


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## Sean K (24 February 2009)

I agree jman, seems they're jumping on the au bandwagon recently, which we suggested, but they're telegraphing it a bit much perhaps.

Still, good intersection and grades.

They need to do something though to gain some interest. 

Languishing down in the sin bin at the moment.

Any idea when an initial JORC might be out? 

Perhaps I should call the boss and not be lazy.....


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## jman2007 (24 February 2009)

kennas said:


> I agree jman, seems they're jumping on the au bandwagon recently, which we suggested, but they're telegraphing it a bit much perhaps.
> 
> Still, good intersection and grades.
> 
> ...




In their 08 Annual they said Q4 2008 for a resource estimate, which has obviously been and gone. A target porential of 500K+oz was also mentioned. They're supposed to be getting a diamond rig over that way this week to start testing some of the deeper targets, it will be very interesting if the grades hold up down plunge as they're hoping... well more interesting than twinning old high-grade holes anyway :


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## Sean K (24 February 2009)

jman2007 said:


> In their 08 Annual they said Q4 2008 for a resource estimate, which has obviously been and gone. A target porential of 500K+oz was also mentioned. They're supposed to be getting a diamond rig over that way this week to start testing some of the deeper targets, it will be very interesting if the grades hold up down plunge as they're hoping... well more interesting than twinning old high-grade holes anyway :



I'll call tomorrow to ask for an update. If they did declair that, as you have found, and not given an update, pretty poor darts really. Doesn't take much to keep on top of your goals, and keep the market informed on why you have failed to achieve them. Perhaps they are one of those companies that just assume no one reads the anns, like a KMN. I doubt that, as they seem to keep the market well informed normally, just their focus has been the copper job. Until now cu has crumbled and au has held up....


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## jman2007 (26 February 2009)

kennas said:


> I'll call tomorrow to ask for an update. If they did declair that, as you have found, and not given an update, pretty poor darts really. Doesn't take much to keep on top of your goals, and keep the market informed on why you have failed to achieve them.




Any luck speaking to these guys kennas?

Appears to be some decent depth on the buy side building, especially between 11 and 13c now that the big seller at 16.5c seems to have disappeared for the time being.

What do you think the prospects are for a move up into the 16c range? Has traded in the 11-15c channel for some time now.

jman


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## Sean K (4 March 2009)

jman2007 said:


> Any luck speaking to these guys kennas?



Completely overlooked this the past 2 weeks.  Been too busy with fish and chips on the beach back home in Melbs.  Must still check this though...

Feasability Study on JS is out and they say its viable at current cu prices, which is pretty positive. Especially if you think cu will head higher once global growth turns around in the coming few years, when they are producing. Could go down too I suppose...

Not sure where it's going except sideways on this chart. 10 bottom, 16 top of the range. Looks like it'll trade anywhere between the 2 until something gives....


*RESULTS OF FEASIBILITY STUDY JABAL SAYID PROJECT IN SAUDI ARABIA*

Highlights:

● Annual concentrator throughput of 3MT of ore per annum
● Copper in concentrate production of 60,000 T per annum
● Life of mine at average head grade of 2.26%Cu
● Capital cost of copper project US$ 249.5M ( US$4,200/T of annual copper production )
● Cash operating cost of US$0.94/lb copper produced, with cost in the first two years as
low as US$0.75/lb after credits
● Heap leach of Lode 1 oxide gold cap to produce 50,000 to 60,000oz gold over first two
years of project, followed by additional production from other nearby gold projects
● First gold production in 10 months, first copper production in March 2011


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## jman2007 (22 March 2009)

kennas said:


> Feasability Study on JS is out and they say its viable at current cu prices, which is pretty positive. Especially if you think cu will head higher once global growth turns around in the coming few years, when they are producing. Could go down too I suppose...




Interesting article from the web about life for the underground drillers and geo's at Citadel's JS project... :

http://www.arabnews.com/?page=9&section=0&article=120132&d=11&m=3&y=2009

As funny as it may sound, probably not such a bad time to be constructing a project. As you say, they should be in a favourable position once the base metals rebound... sometime. Cu's been going on a nice wee run however.

jman


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## Sean K (25 March 2009)

Trading Halt.

Capital raising.

I thought they had some cash in the bank?



I hope for holders the raising is at a decent price and you get to join in any discount allotment. Hopefully it's not just for the sophisticamacated!


*Application for a trading halt*

Citadel Resource Group Limited requests a trading halt to prevent trading in its securities taking place in an uninformed market, pending the Company’s announcement on a capital raising.

We are not aware of any reason why the trading halt should not be granted.
We request that the securities of the Company remain in trading halt until an announcement is released to the market, which is expected to be no later than pre open Friday 27th March 2009.


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## Sean K (25 March 2009)

Golly, anyone there make heads or tails on why the ASX has questioned their last ann. Over the coals on some detail there, for sure. Someone must have pointed this stuff out for them to go to this trouble. A geo comment j?


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## jman2007 (26 March 2009)

kennas said:


> Someone must have pointed this stuff out for them to go to this trouble. A geo comment j?




Btw, it wasn't me... 

On a more serious note, some of these supposed indiscretions are a little concerning. I don't think I've seen a resource company get strips torn off them like this for a while. And tbh, the ASX have some valid points.

The reason this is not so good, is that once a company falls under a cloud regarding the integrity of their data, and suspected non-compliance with the JORC Code, this can potentially cast doubt over the whole operation. We have enough risk factors on our plates with CGG operating in a foreign jurisiction without having to add QAQC and data-quality risk to the list, thank you very much.

One of the reasons that the ASX is upset, is with CGG's rather flipant useage of the term "ore". Ore has a very specific meaning under the JORC Code, and basically means the economically mineable part of a Measured and/or Indicated Mineral Resource. To use the term "ore" with repect to an _inferred _Mineral Resource is really not on (as CGG have done with reference to the JS Lode 1 Oxide Gold cap), because you don't know as yet whether _any_ of it will be economically mineable.

Basically the term "ore" is reserved for describing Ore Reserve Estimates only.

The other point of note is with CGG's useage of the term "historical" in an apparently confusing manner. This is perhaps a little bit nit-picky, as I would consider "historical" in the sense that CGG use it wrt Lahuf and Shayban to imply that the Resource figures are inherited from previous operator's, to be acceptable useage. But there was definitely some confusion between the figures they have been releasing to the market, and what they say on their website, which certainly didn't help.

The cap rasing took me by surprise a little too, if they offer these shares to instos only at a discount price, then the sp could be punished. Not sure where the cash burn has been coming from exactly... they should have had about $20M fromthe last half-year report.

jman


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## Sean K (27 March 2009)

kennas said:


> Trading Halt.
> 
> Capital raising.
> 
> ...



Crikey!!!

$22m!!!!!!!!!!!!!

And yes, to instos, at a nice discount. Punters get hammered once again!




*Capital Raising*

Citadel Resource Group advise that it has successfully undertaken a capital raising.

Shares totaling 213,456,000 have been placed at 10.5 cents per share, raising a total amount of $22,412,880 before costs.

The Placement was made mainly to Australian Institutional shareholders.
Petra Capital exclusively managed this capital raising.

The funds will be applied to the development of the Company’s gold heap leach project at Jabal Sayid.



They will need more than that to develop JS.

Who are they kidding?



Getting a little frustrated with these juniors progressing at snail pace, giving nada back to their majority holders!


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## jman2007 (27 March 2009)

kennas said:


> $22m!!!!!!!!!!!!!
> 
> And yes, to instos, at a nice discount. Punters get hammered once again!
> 
> Getting a little frustrated with these juniors progressing at snail pace, giving nada back to their majority holders!




Yeah this is bullcrap mate.

A 30% discount for the sophisticomated, and nothing for us. 

Not happy at all.

One wonders just how many shares this outfit will end up with by the time they actually get around to producing anything.

I am seriously starting to question whether I want to remain invested with this mob.

jman


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## BSD (5 April 2009)

Thought this raising to be a good outcome. 

The feasibility on the leach project showed $15m of capex required and the company didn't want to have debt based project finance. 

The fact they could use the high gold price environment to get $22m in new cash means they go green light on a gold project while still having cash to complete Sayid BFS and further exploration; rather than one or the other. 

The price was horrible, but shows how hard it is attracting $20m in new equity for a junior. They will need at least another $50m to fund Sayid copper in the next twelve months (75% of total finance provided is meant to come from the Saudis) - so better to be raising the extra dollars as an imminent producer of 50,000oz at US$380 than to be a company with no cash, a 10c share price and a completed BFS.

As for retail punters not getting a look-in; blame ASIC and the government for the prospectus laws. It costs 100s of 1000s to complete the required paperwork and it is a waste of management time at this point of a project. 

Buy your shares now at a small 10% premium if you are dissapointed in the dilution while they are being held down by flippers. 

This company remains an exposure to some world class, low cost, high grade copper/gold projects with production imminent and a highly prospective exploration portfolio. 

Hopefully they are in the sweet-spot of building a copper mine, partly financed with gold production, in a capital cost downturn that will be ready in time for an improved copper market in 24 months time.


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## jman2007 (9 April 2009)

BSD said:


> Thought this raising to be a good outcome.
> 
> The feasibility on the leach project showed $15m of capex required and the company didn't want to have debt based project finance.
> 
> ...




Yes, you're probably right BSD...

My comments probably came through frustration more than anything...

If these resolutions get passed, which they probably will, then the real acid test will be to see how well CGG can contain capital costs and stay within their budget. If the heap leach project goes over budget or is significantly delayed, the market could punish them. 

But yes, I do agree with your comment about hitting the Cu market at the right time to maximise J-S's potential.

jman


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## Sean K (20 April 2009)

In retrospect the sell off to the raising price was probably a good short term opportunity.

Expect it to head back near to the top resistance line here, before probably falling over again.

Technically, one to keep a close eye on once it looks to start coming out of this sidways move. Lots of junior charts looking like this and they've been breaking up 20-100% from the lows. 

Although, I do expect the overall market to consolidate more significantly shortly, or now, so CGG may have missed the oportunity for a nice jump. 

Anyway, worth watching as they have some tremendous assets.


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## Sean K (22 April 2009)

Something fishy on at CGG I reckon. Significant increase in volume and breaking through the 15.5 mark, at 17.5 intra day. Or, could be just people taking advantage of the sell off. Not sure what anns are due off the top of my head.

Will probably completely fall over now. LOL


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## shag (22 April 2009)

it seems commsec require some paperwork now too so u can buy these fellas. bit of a pain. from the bisconnections fiasco.


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## jman2007 (22 April 2009)

kennas said:


> Something fishy on at CGG I reckon. Significant increase in volume and breaking through the 15.5 mark, at 17.5 intra day. Or, could be just people taking advantage of the sell off. Not sure what anns are due off the top of my head.
> 
> Will probably completely fall over now. LOL




I hope not!:

It has been a little odd as you say, a reasonable rise on the back of diddly-squiddly from the company, I can't recall any earth-shattering releases that were due, perhaps it is some drilling results that are really not-so-secret afterall? 

jman


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## Sean K (27 April 2009)

The fishy results are out.

Awesome intersections here.

_*Highlights of the new drill results reported for the first time today include:*
o 103.4m at 2.9% Cu, 0.6g/t Au, 15.4g/t Ag from 130m downhole, including, 46.5m at 4.1% Cu, 0.9 g/t Au, 29.8 g/t Ag from 131.5m (BDH2032A)
o 101m at 2.9% Cu, 0.4g/t Au, 11.6g/t Ag from 239.1m downhole, including, 30.95m at 4.1% Cu, 0.5g/t Au, 15.1g/t Ag from 239.1m downhole (BDH2037)
o 74.9m at 2.3% Cu, 0.2g/t Au and 5.7g/t Ag from 270.1m downhole (BDH2038)
o 87.3m at 4.5% Cu, 0.5 g/t Au, 23.2 g/t Ag from 276.5m downhole including 43m at 7.4% Cu, 0.8 g/t Au, 43.0 g/t Ag (BDH 2040)
o 83.95m at 2.4% Cu, 0.3 g/t Au and 15.6 g/t Ag from 186m downhole (BDH2041)_

They are very good results. 

I think they are only firming up the current resource though aren't they?


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## Sean K (7 May 2009)

The 16 or so cent level was discussed some time ago as breakout point. Looks very strong here on great volume. Cu up a few % will hold it up you'd think. GEC still ticking bomb though.


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## jman2007 (7 May 2009)

kennas said:


> The 16 or so cent level was discussed some time ago as breakout point. Looks very strong here on great volume. Cu up a few % will hold it up you'd think. GEC still ticking bomb though.




Had a very strong opening this morning at 19c, but has since fallen back to 17.5-18c, but still promising that it is showing signs of bucking the sideways trend. CGG have also just out an ann that shareholders have voted to ratify the $22M placement - no surprise there.

Some very healthy Cu intersections from J-S kennas, in general a strong Quarterly release from CGG with diamond and RC drilling ongoing at several of the outerlying gold projects/prospects, and some seemingly good progress with the J-S DFS.

I'm still a little concerned with the Q1 2009 timetable for the startup of the gold heapleach pad at J-S. Although Lode 1 precious metal credits have been calculated, Lodes 2 and 4 have not. Considering they look to be lagging with getting a revised JORC figure out for Shayban, they might have a little bit too much on their plate?


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## Sean K (21 May 2009)

I think the build up here from the cap raising low may be due to expectations for the upcoming resource announcements.

Had a great run since the bottom, and that support area has held well.


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## Sean K (28 May 2009)

Holding well, bit of a triangely thing happening. Well held above 16, looking more solid. 

ASX looks like it needs to consolidate however, so conflicting messages.


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## Sean K (29 May 2009)

Breaking up from triangely thing, and confirmed 15/16 as good support now.

Been a nice run since tripple bottoming at about 10.


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## jman2007 (29 May 2009)

kennas said:


> Breaking up from triangely thing, and confirmed 15/16 as good support now.
> 
> Been a nice run since tripple bottoming at about 10.




kennas I've noticed CGG have released a third call on the partly paids recently @ 12.5c. I'm wondering if this has contributed to the increased volume we've seen today?  I'm not 100% sure on how the partly paids work, but does this mean that once the payment is executed, that those particular holders are getting one hell of a fantastic deal right now? Certainly looking good, haven't seen 20c for a loooong time


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## jman2007 (6 June 2009)

Another nice little update from CGG this week,

The deepest ever drillhole drilled into Jabal Sayid (approx 625m TD) has returned an unexpected surprise, *76m @ 3% Cu from 530m *to the end of hole. Also, another intersection closer to surface also looks interesting, *59m @ 1.84% Cu from 25m* in the same hole. This hole was drilled from the existing decline, so the collar will be about 300m below surface. 

Nice little leg-up in the chart recently, looks like 21c is now recieving some solid support. Cu hitting US $2.20/lb, looks like CGG may be timing their run very nicely indeed.


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## Sean K (15 June 2009)

jman2007 said:


> Another nice little update from CGG this week,
> 
> The deepest ever drillhole drilled into Jabal Sayid (approx 625m TD) has returned an unexpected surprise, *76m @ 3% Cu from 530m *to the end of hole. Also, another intersection closer to surface also looks interesting, *59m @ 1.84% Cu from 25m* in the same hole. This hole was drilled from the existing decline, so the collar will be about 300m below surface.
> 
> Nice little leg-up in the chart recently, looks like 21c is now recieving some solid support. Cu hitting US $2.20/lb, looks like CGG may be timing their run very nicely indeed.



Yeah, some pretty good intersections there to eoh, that will increase the recource. 

They are doing quite a lot this quarter, due for some more anns...

*PLANNED WORK PROGRAM DURING THE JUNE QUARTER*

JABAL SAYID PROJECT
• Continued work associated with the Definitive Feasibility study including, water, environmental/community impact assessment and planned infrastructure review.
• Continued in-fill and Resource extension Diamond Core (both underground and surface) and RC drilling associated with the DFS (completion brought forward to approximately 6 weeks time).
• Follow through with Government authorities for the mining license application.
• Project financing including, legal and technical due diligence.
• Copper concentrate specification sheets and samples to be sent to smelters and traders.

JABAL SHAYBAN PROJECT
• Continuation of the drilling program to support an upgraded resource which will be finalised after the planned drilling programs have been completed.
• Diamond core drilling to test the along strike, down dip, and down plunge potential of the copper mineralization below 100m.
• Further metallurgical test work including column leach testwork on diamond core samples.
• Surface exploration along the 15km strike within the greater exploration area.

LAHUF PROJECT
• Ongoing RC and diamond core drilling program.
• Regional surface exploration of structural, geochemical and spectral anomalies.

BARI PROJECT
• Initial RC drilling program commenced late in March and will continue during the current quarter.
• Regional surface exploration of structural, geochemical and spectral anomalies.


This has been running like a champ since the bottom. Along with many other Cu/Au players I guess. Maybe it's just a general market recovery. Lots of juniors making 200% plus gains. Bit of resistance up ahead at 25.


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## Sean K (7 July 2009)

kennas said:


> JABAL SHAYBAN PROJECT
> • Continuation of the drilling program to support an upgraded resource which will be finalised after the planned drilling programs have been completed.
> • Diamond core drilling to test the along strike, down dip, and down plunge potential of the copper mineralization below 100m.
> • Further metallurgical test work including column leach testwork on diamond core samples.
> • Surface exploration along the 15km strike within the greater exploration area.



Wonder how long before they get an upgraded resource out. Pretty vague time frame.



*MORE HIGH-GRADE GOLD INTERSECTIONS FROM CITADEL’S SHAYBAN PROJECT, SAUDI ARABIA*

LATEST RC IN-FILL AND EXTENSIONAL DRILLING CONTINUES TO DELIVER HIGH-GRADE GOLD RESULTS

Highlights:
• Results include:
• 43m at 9.38 g/t gold from 11m (SH091RC)
Including 16m at 19.38 g/t gold from 20m
• 11m at 6.29 g/t gold from 21m (SH090RC)
• 13m at 4.19 g/t gold from 22m (SH079RC)
• 21m at 3.08 g/t gold from 55m (SH080RC)
• 40m at 1.66 g/t gold from 58m (SH088RC)


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## BSD (20 August 2009)

After-market announcement of A$25m placement to European offtake partner at 34c - good premium to prevailing market

http://asx.com.au/asxpdf/20090819/pdf/31k5r0r1k4yxj6.pdf

The instos interested in getting set after the recent company presentations will have to buy on market now. Stock should be well bid.

http://asx.com.au/asxpdf/20090819/pdf/31k5js1rrfv8tb.pdf

Drill results set down for early October release in announcement


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## Sean K (7 September 2009)

kennas said:


> The 16 or so cent level was discussed some time ago as breakout point. Looks very strong here on great volume. Cu up a few % will hold it up you'd think. GEC still ticking bomb though.



At the risk of looking like a Radge, this level did seem to be important.

Would have liked to be involved around then.

Only up 100% + ish.


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## shag (7 September 2009)

yes i wish i could have brought more at 18
i love the cu/au mix, copper is such a versatile metal.
cheers and thanks for yr spot on graph.


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## goin4gold (7 September 2009)

jumped in at .15c and decided to profit take last week at  .32.5c just before the gold rally and bailed out ...a wee bit early ...think this still has some way to go..looks to be in a good uptrend.


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## jman2007 (10 October 2009)

jman you clown you totally dropped the ball on this one @26.5c...

Chartwise looks great, must have broken through to a new all-time high by now surely. Yet another potential multi-bagger that has gone begging since the start of the year. Still no new updates on Jabal Shayban which is a little odd. J-S still looks like it is trucking along nicely though.


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## BuffetJr (12 October 2009)

gday guys

BIG fan of both CGG and another company just getting into Saudi Arabia called Syrah Resources (ASX code SYR). The latter has gone absolutely  ballistic recently, mind you with only 30 million shares on issue, didn't take  much to go soaring 

Unfortunately, its so hard to get a decent amount of shares in it  Took me ages to get a decent quantity.

Great writeup on *both *companies by Garimpeiro (Barry Fitzgerald) in today's Age newspaper...you can see it at www.theage.com.au if interested.

BuffetJr


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## drillinto (9 April 2010)

April 08, 2010

Citadel Edges Ever Closer To Putting The Finance In Place For Its Jabal Sayid Copper Project In Saudi Arabia
By Our Man in Oz
www.minesite.com/aus.html

There is only one thing wrong with the Jabal Sayid copper project of Citadel Resources in Saudi Arabia - it’s not in production. More to the point, it’s not in production at a time when the copper price has rocketed up to US$3.60 a pound, which is more than three times the mine’s forecast cash cost. “We would love to be producing right now”, Citadel’s chief executive, Ines Scotland, told Minesite’s Man in Oz. “But I don’t believe we’re going to miss anything because the outlook for copper is strong for years into the future.” If missing the first few months of the strong rebound in the copper price is frustrating, there is some good news in the situation. The company’s ability to finalise the funding package for the US$280 million development has been made much easier, as the profit margin on the projected total copper cash cost of US94 cents a pound looks very sweet indeed at that US$3.60 per pound price.

The basic plan for Jabal Sayid involves output of 57,000 tonnes of copper over an initial 10 year mine life, with the first three years delivering 61,000 tonnes. But interest in the project is driven by more than just the basic output parameters. It’s also a question of Citadel’s role in the opening of Saudi’s hard-rock mining industry, an industry which has traditionally played second fiddle to the country’s giant oil sector. Then there is the issue of what comes next, as metal-hungry investors cast their eyes over other parts of Citadel’s portfolio of base metals and gold projects on the Red Sea side of the Arabian Peninsula. In effect, Jabal Sayid will be first cab off Citadel’s very busy rank. 

Deals involving exploration assets, such as the Jabal Shayban copper and gold prospect, the Wadi Kamal nickel, copper and platinum prospect, and the Bari copper and gold prospect are possible, as the metal-price revival gathers strength. But, interesting as those assets might be the immediate aim, and what investors in the Australian-listed company want to see, is finalisation of the funding package for Jabal Sayid, and a possible increase in Citadel’s existing 50 per cent stake in the project. An extra slice of the project is likely because the point has been reached where the other 50 per cent owner, a wealthy Saudi family, is required to start contributing to the cost of the development. 

“We’ve been saying to the investment market for some time that we would like to increase our stake in Jabal Sayid”, Ines said. “Whether that happens, or how it happens, is now part of the discussion we’re having.” Significantly, that turn of events is occurring as Citadel reaches the final round of financing talks with its bankers, Saudi-based Riyad Bank and Germany’s WestLB. Ines said in a report to the ASX last month that key due diligence talks had been completed, with no problems or issues identified. A term sheet, she said, had been agreed, which reflected strong interest in the project. Aside from the lead banks, expressions of interest had also been received from a group of Saudi and international banks offering more debt than Jabal Sayid requires. “It is intended that a group of up to seven banks will form the final syndicate of lenders”, Ines said. 

While the paperwork is finalised Citadel is charging ahead with planning and the early mobilisation of key equipment and personnel. After construction of the 2.6 million tonnes a year underground mine, and the above-ground processing plant, commissioning is scheduled start in the third quarter of 2011 with full-scale production reached soon after. Two lodes of ore, No.2 and 4, will start the operation. Both are open at depth, and there are additional lodes nearby. Large open stopes should make for simple mining. Truck haulage will be used to bring the ore to the surface, and the underground development will leverage off the existing 3.9 kilometres of existing declines. 

“We are at a very busy stage of development”, Ines said. “As well as the financing and equity discussions we have ongoing engineering and design work. We’re doing all of the engineering for the long lead items. We’ve ordered key items of equipment such as the mills, float circuit, and thickeners. The mine contractor is mobilising to site. We’re pretty much on schedule.” 

Interestingly, raising the equity component for Jabal Sayid might not have the watering down effect that can often worry investors. Those “other” projects on Citadel’s books have a value, and that value is rising every day that metal prices continue their recovery. “We have got a number of corporates in Saudi looking at joint venturing on some of the projects”, Ines said. “Some of those we would be hoping to get a cash payment as well, and bring equity in that way.” If there are secondary deals to be done the obvious starting point will be in the gold assets, given the understanding of gold that already exists in Saudi Arabia. “There is a long history of gold production, and that certainly means there is a preference for gold when it comes to hard-rock mining”, Ines said. “Jabal Sayid will be the country’s first base metal mine.” 

On the ASX Citadel has been attracting fresh interest as the copper price rises and the full-scale development of Jabal Sayid gets closer. Since slipping to a late February low of A28.5 cents, the shares have rallied to trade at around A38.5 cents, which is not far short of their all-time high of A46 cents reached late last year. At its current price, Citadel is capitalised at A$565 million, a potentially modest value, given the news about to start flowing at a corporate, financial and construction level. Not to mention that first production is now only about 18 months away now.


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## BSD (10 September 2010)

With copper again in the spotlight, CGG is worthy of another update...


The situation continues to improve as management keeps ticking boxes on the way to production in 2012. 

BFS completed for 2.6million tonne throughput of 2.4% Cu and 0.4gtAu equiv ore. Costs sub $1.00lbCu. Try and find grades like that in something else ready to produce in the coming 5 years.

At $3.00lbCu and $1000ozAu, CGG is generating cashflow around US$300m per annum for 10 years from production of 60ktCu and 40koz of Au equiv. 

They are building the project for US$280m and complete the purchase of the remaining 30% of Jabal Sayid for US$120m as announced this week (an extremely accretive transaction). 

Leaving some cash spare, they can use US$180m of the US$200m they have in the bank, leaving another $200m for the banks to fund (who are willing and able) after they issue another 150m shares to the partner for 50% of the bill. 

Debt would be paid back in less than a year. 

So using 10% discount rate, NPV of 10 years of US$300m after taking off the US$200m debt is US$1.6bn

Fully diluted post the final 150m of issuance we get 2.6 bn shares.

Rough val of about US$0.60 or A$0.65

Trading today at A$0.36


Apart from attractive exploration properties, upside comes initially from expansion of 2.6mt plant, to 3.0mt and onto possible 5mt (before being restricted by decline capacity).

JBWere, Petra and Morgan Stanley cover stock and have vals from $0.40 to $0.60 under various levels of expectation. Haven't seen all updates since this week's deal, but they will be positive. 

As a long term supporter, anticipation is now high in the countdown to production and inclusion in ASX 200.


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## Sean K (10 September 2010)

Was just looking at Citadel again yesterday and I do like their prospects. I was hoping their gold projects would develop into something bigger but I suppose they have a focus on the Cu for the minute.

What's the profit pa by your figures?


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## BSD (10 September 2010)

Accounting profit? No idea!

Estimating Depreciation, hedging, interest costs etc ??? - I am a trader not an accountant and don't care too much for regulatory numbers.  

I just look at funding requirements and crude cashflow levels and add a big enough discount rate and low commodity prices to provide cushion. 

My "trading/investment model" uses 12% IRR and $2.50Cu/$1000Au and still gets $0.45 for Jabal Sayid alone (similar to most analyst targets).

Most of the analysts like to cushion their numbers by using higher cash costs (40% in one model I follow) - this allows them to apply very "scientific" calcs of WACC that impress academics but in reality dont mean much, while still having a discretionary cushion to adjust as the actual price approaches the "price targets".

My model does not put any value on the reinvestment of accumulated surpluses either. In the case of CGG this could be immense. They haven't really announced anything yet on Lahuf, RamRam - all high grade gold targets. 

Saudi has attractive fiscal terms - 20% corp rate, no royalties etc. They also have 6 lane highways, spare port capacity, ultra cheap energy and an intent to grow their economy and provide employment.

The gold project Jabal Shayban now has over 400,000oz resource and only from scratching around. Nice grade above 2gt - just a sideshow at this stage - probably 2c-4c of valuation now with cap approaching $800m.

The Baydan drilling recently released showed some more potential (4%Cu, 25%Zn with Au and 600gtAg off the top of my head) in a 4-10m section. But it is hard to get excited about compared to 200m+ at 2%+ Cu at Jabal Sayid being developed. 

Interesting to see what comes of the Bari porphyry target. It would cost $100m to explore that properly so I can imagine it could be better farmed-out to a major. Who knows? but it would be an massive gamble to tip too much money into this.

I can't find any company with a similar project or portfolio of targets.

Open to hints!


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## rhyslivs (4 October 2010)

This stock got a tip in a certain small cap investigation newsletter which explains the volume spike experienced the other day. Fortunately for the larger than typically recommended market cap the price didnt spike as badly as a lot of their other tips do. 

This should be bring some welcome new interest for this stock.


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## Sean K (4 October 2010)

rhyslivs said:


> This stock got a tip in a certain small cap investigation newsletter which explains the volume spike experienced the other day. Fortunately for the larger than typically recommended market cap the price didnt spike as badly as a lot of their other tips do.
> 
> This should be bring some welcome new interest for this stock.



So, who was the newsletter, what was the call, what do you think of it, why any interest?


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## Buckfont (4 October 2010)

If this is any help kennas, I believe it was Australian Small Cap Investigator, and I guess that for a 900m mc company it may lie outside the small cap. range. 
I hold some and as with centamin i made money and if the political systems are kept under control in this neck of the woods, which in itself is a big if and the copper inventories are at a squeeze at the mo, there may be some upside as the the chart appears, but I`m no T/A. Hope this helps and look forward to your input.


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## Sean K (4 October 2010)

Buckfont said:


> If this is any help kennas, I believe it was Australian Small Cap Investigator, and I guess that for a 900m mc company it may lie outside the small cap. range.
> I hold some and as with centamin i made money and if the political systems are kept under control in this neck of the woods, which in itself is a big if and the copper inventories are at a squeeze at the mo, there may be some upside as the the chart appears, but I`m no T/A. Hope this helps and look forward to your input.



I've been commenting on this one for some time, but less so recently due to some change of life style. Looking forward to getting back into the detail of this one. They have a great basis for a start and certainly some very prospective ground for further exploration success.


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## Sean K (25 October 2010)

Takeover from EQN. Probably not as good a value for long term holders I feel. Once into production they could have claimed a much higher MC perhaps. Or, if they stuffed up the transition could have been untidy I suppose...


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## pedalofogus (25 October 2010)

kennas said:


> Takeover from EQN. Probably not as good a value for long term holders I feel. Once into production they could have claimed a much higher MC perhaps. Or, if they stuffed up the transition could have been untidy I suppose...




I agree, seems cheap when you consider the potential upside once production commences.  I wouldn't have been surprised to see other companies come out of the woodwork and make offers.  But the fact that the management have approved the offer indicates that they know there isn't going to be other offers, or maybe they just want to take what they can get.  But i guess there is still time for others to throw their hat into the ring?

However, EQN is a good company, so CGG shareholders are not losing exposure by holding EQN shares.


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