# EVG - Envirogold Limited



## kransky (5 June 2007)

Mkt Structure
100M Shares + 36M 31/12/2007 20c options
Fully Diluted mkt Cap
@20c = $27M

Background
Conventional methods have been used in the past to treat Gold Sulphide deposits resulting in large tailings dumps full of "waste" that get slowly oxidised producing sulphuric acid which leak into the ground causing environmental problems.
But this tailings "waste" is often quite rich in Gold!

EVG licenses the Albion Process from XStrata. This produces no sulphur dioxode, remnant metals are left in a safe state, no acids left at the end of the process. This is win win for the economy, environment and governments.

*Company strategy*
Rapidly build up land bank of low cost projects each with min 15 years life
Grow the business on internally generated cash flows to minimise share dilution.


Projects
Dominican Republic - Las Lagunas
EVG holds 70% interest and management rights for the Las Lagunas Gold Tailings project in a significant mineralisation belt host to +15M ounce Pueblo Viejo deposit.
Las lagunas has a Indicated *JORC 5,137,000t @ 3.74g/t Gold 38.62g/t Silver*
These are tailings containing 621,000 ounces Gold and 6,380,000 ounces of silver. (worth AUD$620M at current prices)(recovery rates ~70% so value ~AUD $400M)
700 tonnes of Pueblo Viejo ore already tested through the Albion process.
BFS done! Environmental and construction licenses issued. Plant construction to start 3Q 2007!

project life = 6.5 yrs
operating cost = US$237/ounce
*estimated AFTER TAX annual profit = AUD $9.7M*

*POTENTIAL* Currently negotiating with 2 Canadian firms who are active in the region who could provide high grade ore to substantially extend the life of the project. There are numerous small concession holders within 20km of the site that may find their deposits uneconomical due to start up barriers.


Peru - Trujilo - MOU with San Manuel Corp
Signed a memorandum of understanding to establish a jointly owned process plant in Trujilo for recovery of Gold and Silver from tailings deposits and *high grade* suphide concentrates (up to *100g/t*) from nearby mines in Peru.

The intent is to create a centralised Albion processing plant surrounded by mines owned or controlled by San Manuel or third parties and historic tailing deposits.

Plant construction will be in 2 stages. Each stage will provide capacity to *produce 50,000 ounces per year*. 
Due to the anticipated high grades, *plant size, cost and operating costs are expected to be significantly lower* than in the Las Lagunas project.

Preliminary Feasibility Study started to more accurately establish quantities and grades of concentrates and tailings available to the plant.

EVG Expects to finance its estimated total equity contribution of US$10M for the two stages from cashflow generated at Las Lagunas.

With lower costs and larger production, *annual profit for EVG after tax could be AUD$15M?*

*Potential*
from 24 May ann:

Envirogold is also reviewing the prospect of reprocessing other high grade deposits in Peru, where there is possibility of treating refactory ore from existing mining operations.
The company is negotiating with relevant Government authorities to evaluate a number of toxic gold tailings deposits from old mine workings to establish viability of treatment.
Peruvian authorities have recorded over 800 toxic sites from historic mining operations.
Peru produced over 200 tonnes (7M ounces) of gold in 2005 primary from high grade sulphuric ore.


China
from 24 May ann

EVG hold *exclusive rights* to the Albion Process on tailings projects identified in the next 2 years in the five main gold producing provinces of China.
Negotiations have commenced with the appropriate authorities in the Province of Shandong to treat numerous state owned sulphuric tailing deposits together with concentrate from small mine workings.
China produced 220 tonnes of Gold in 2005 (7.8M ounces)

Shareholders
Very tightly held. Just try to find a seller today! 
Top 20 shareholder hold 60%
Executive Chairman holds 8M shares, 40M Dec 2009 options



I have been watching this one for about 6 months now. Been accumulating whenever i have spare cash, hoping it stayed cheap so i could buy more.. but its all started happening recently. Hitting 20c today!
Maybe someone can post a chart?


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## TheRage (5 June 2007)

Interesting analysis. If EVG could fund further projects from internally generated cashflow I would be exceptionally interested in this stock. Too many start-ups and even larger players are issuing stock like it was candy at the fair. Too many people underestimate the eventual importance of stock dilution once the company finally comes to production and EPS wasn't what they thought it would be. You have certainly piqued my curiousity in this stock.


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## So_Cynical (16 February 2008)

I joined the EVG happy holders club this week 

I reckon EVG has some potential as a niece, low cost producer with impeccable environmental credentials.

EVG has been established specifically to extract gold and silver from refractory ores and tailings utilizing
Xstrata Technology’s ALBION PROCESS to remove sulphur in the oxidation process.

http://www.albionprocess.com/

In early 09 EVG will be a Gold and Silver producer with no hedging, low debt,
low risk ore extraction methods and low per Oz costs and sovereign risk.

EVG first Project is at Las Lagunas in the Dominican Republic...the Indicated 
JORC Resource is  - 5.137mt @ 3.76g/t Au & 38.62g/t Ag for a total of 
*Gold 435,000 & Silver 3,974,000 Oz *recoverable...all at surface Tailings.

EVG is substantially, (possibly fully) funded to production..and all Financial Projections 
for the Las Lagunas project are based on POG $650USD & POS $12.70...so big profit 
upside already there with current prices.

Market Cap:	26,717,815
Issued Shares:	197,909,742
First listed	25 Nov 1993

DYOR as i did.....


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## So_Cynical (27 March 2008)

*EVG* - Envirogolds Planned expansion into Peru is going full steam ahead, and today took 
an unexpected turn, with the announcement that EVG has optioned 2 tenements, including one 
with a closed Gold/silver mine.....EVG is looking to go "underground"

Quote :Todays Ann.
Mr Brian Johnson, Executive Chairman of EnviroGold Limited (ASX Code “EVG”), advises that the 
Company’s wholly owned subsidiary, EnviroGold (Peru) SA (“EVGP”), has signed Option Agreements 
to purchase three blocks of mining concessions covering a total of 5900 hectares.

The first block covers the 300ha Bumerang concession and includes the Huancay underground gold
and silver mine, the mine, which closed in 1984 due to low precious metal prices and after depletion 
of its oxide reserves, has refractory gold-silver sulphide ore exposed on several levels of 
the underground workings over a strike length of 1.8 km and continues at depth. 

Two adjoining concessions, Bumerang I (100ha) and Bumerang II (200ha) are under application and 
cover probable extensions to the mineralisation in the Huancay mine.

EnviroGold envisages reopening the Huancay mine and establishing a centralised milling and flotation facility 
to concentrate refractory ore from Huancay and surrounding gold/silver deposits that could be developed. 

High grade concentrates would then be trucked to the Company’s proposed Albion process plant near the 
Provincial capital, Trujillo.

EnviroGold is also in negotiations to acquire and re-open a second mine within economic trucking distance 
for ore to Huancay, together with a series of highly prospective exploration areas.

http://www.envirogold.com/pdf/EnviroGold Options Huancay Mine.pdf


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## So_Cynical (20 October 2008)

EVG got some financing....see its not totally impossible to raise money, just
takes a little time.

http://www.envirogold.com/pdf/2008-10-20 Project Finance approved (2).pdf



> _EnviroGold Limited has received a credit approved offer from Macquarie Bank to
> provide a US$35 million financing facility for its 70% owned Las Lagunas Gold Tailings
> Project in the Dominican Republic._
> 
> ...


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## So_Cynical (17 September 2009)

There has been lots going on with EVG over the last few months, all good news of course, and that has been reflected in the share price, up over 7% in the last 2 days and up over 200% since the first week of April. 

The highlights of the last few months 


Shareholders and holders of listed Options to be offered New Share Options on a 1 for 2 basis at a cost of $0.001 each, exercisable at $0.15 each on or before 31 December 2011.
http://www.envirogold.com/pdf/EnviroGold to offer New Options to Share and Option holders.pdf


Envirogold to acquire second mining lease and small scale gold mine in the Azuay region of Equador, combined with the neighboring lease its 450ha in total, with a possible 1 million ounces.
http://www.envirogold.com/pdf/EnviroGold to acquire 2nd Mining lease in Ecuador.pdf


The Las Lagunas Gold Tailings Project in the Dominican Republic is progressing well, with Earthworks, drainage, pad foundations, and the site access road virtually complete, with Construction of the Albion processing plant is due for completion in December 2010 with wet commissioning of the 75,000 oz Au per year plant to occur in the first quarter of 2011.
http://www.envirogold.com/pdf/Update on progress LLGTP.pdf


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## So_Cynical (10 November 2009)

EVG got a speeding ticket today  apparently stocks going up over 30% in 5 days, on no news is suspect. :dunno: anyway EVG also released an investor presentation today that gives a good over view of where they are at, and what can be expected in the near future....hit an intra day high of 11 cents today.

http://www.asx.com.au/asxpdf/20091110/pdf/31lyx2x5m9txpg.pdf


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## skc (10 November 2009)

So_Cynical said:


> I joined the EVG happy holders club this week




Have you been holding since this time? That post was from Feb 08 and the stock fell 80% at one stage? Did you fish more at lower prices?


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## So_Cynical (10 November 2009)

skc said:


> Have you been holding since this time? That post was from Feb 08 and the stock fell 80% at one stage? Did you fish more at lower prices?




I brought again at about 7 cents on the way down and then again at near bottom 3.9 cents, and they did a rights issue at about 4.5 cents....all smallish buys, took a while to come good but i was always confident and just kept buying.

Im laughing now   i hold 48000


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## Miner (15 March 2010)

ENVIROGOLD LIMITED FPO    

Code Bid Offer Last Change* % Change* Open High Low Volume Trades Value News 
EVG 0.066 0.069 0.066 +0.003 4.76 0.063 0.070 0.063 *4,536,616 *32 299,854 

Indonesian investor bought heavily at 7 cents

Interesting deal


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## So_Cynical (15 March 2010)

Miner said:


> So Cynical
> You must not be stopping to laugh considering the directors last bought EVG at 11 cents and EVG sold the same to Indonesian investors at 8 cents




Mate its the stock market, laughing one day crying the next  EVG was always a long term proposition for me...i wanted long term exposure to the Gold bull and EVG was one of 5 vehicles i chose to get that exposure.

These guys will be in production early next year and that's when the SP should get significantly re-rated, im in no hurry with this one and have a target above 21 cents.

LOL quoted before the edit.


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## aberline (8 May 2010)

Any thoughts on this. Possibly good buy in this market? Does anyone know when production begins? My ex broker was happy with this.


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## So_Cynical (10 November 2010)

Envirogold has really taken off over the last 3 days, up over 20% again as it did similar about this time last year and got my hopes up. this time i would think the SP rise has been heavily influenced by the Gold & Silver price run to new all time highs.



skc said:


> Have you been holding since this time? That post was from Feb 08 and the stock fell 80% at one stage? Did you fish more at lower prices?






So_Cynical said:


> I brought again at about 7 cents on the way down and then again at near bottom 3.9 cents, and they did a rights issue at about 4.5 cents....all smallish buys, took a while to come good but i was always confident and just kept buying.
> 
> Im laughing now   i hold 48000




When i wrote the above i was just going by memory as to what i actually paid, creating tonight's chart i got a bit of a surprise when looking at my trade confirmation emails to see just how far off i was in my earlier post. anyway its great to have my whole EVG position 9.5% in profit and my EVGO position something like 2000% up from the issue price.  

The options have an excise price of 0.15c and expire 31/12/2011 so still 13 months to run...and alot can happen to the price of Silver and Gold in the next 13 months...lots of upside for both EVG and EVGO especially now some of there finance/development issues have been settled thanks to Mac Bank stepping up...3 year chart with all my buys below.
~


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## exberliner1 (12 November 2010)

Hi everyone,

I have been acquiring EVGO this week, shortly after concluding my buying I found this post on HC.

So yes of course I want the price to go up ... but I know there are some clued up posters on this site so I thought I would share this with you.

This post is one month old ... can anyone find fault with it especially on the NPV calcs - I can't.

The post is the work of a poster called JID - have I missed something or does this really look pretty good?

Post reads

--

Hi Guys,

Put the coffee on this is long: but if you want to make lots of money I think it is worth 15 min of your time.


ENVIROGOLD 14 BAGGER POTENTIAL

SOME QUICK HOUSEKEEPING

Just so you know before you read this I have a +10% stake in EVG and I am not a licenced investment advisor, instead just a fellow HCer sharing my work...

BACKGROUND

EVG is a small ASX listed company focusing on developing gold projects in Latin America. It currently has two projects (Las Lagunas in the Dominican Republic and Azuay in Ecuador).

EVG has had several hurdles to overcome in developing its first project, Las Lagunas, including engineering consultant design shortcomings, obtaining financing during the GFC, and problems with their minority (6%) JV partner. These problems are now resolved and EVG is progressing from being a developer to a producer of gold and silver within 12 months.

Due to ongoing delays EVGs share price is heavily discounted (current share price 7.8c for a market cap of $33m) to Las Lagunas NPV and the potential of its Azuay Gold Project in Ecuador.

LAS LAGUNAS PROJECT

Las Lagunas is a tailings project involving refactory gold that remains from a previous, Government owned mining project. It has been purposely stored for later extraction.

EVG won an international tender several years ago to develop the LL project. Using new technology developed by Xstrata (Albion) EVG will extract approx 70.1% of the gold from the tailings over a project life of 6.5 years. 

The reserve includes recoverable gold of 421,000 oz (65,000 oz p.a.) and 3.8 million oz of silver (600,000 oz p.a.) that can be extracted for an estimated $334 opex per oz.

EVG will spend USD $36m in building the gold plant, of which $34m is spent to-date. Mac Bank is financing a total of USD $45m and the Ban Reservas is providing a USD $5m contingency facility to build a USD $81m gold processing plant including an Albion processing component.

With project delays finally being overcome first production is expecting in September 2011 (11 months time). Go to www.envirogold.links.com.au to see latest project photos.

As part of the Mac Bank financing facility 50% of the first four years production (126,000oz) or 30% of total gold production will be hedged. Silver will remain unhedged at this point. In addition as part of the finance package EVG has sovereign risk insurance against capital losses (e.g. nationalisation of project) although the Dominican Republic has a sound, Americanised political system.

EVG will enjoy 94% of the JV partnership profits from this project and also earn a 2.5% management fee. Part of the project terms is that EVG is also repaid all of its capital contribution (expected to be USD $36m) from project revenues and will own the gold plant at the end of the project (for a $5m payment to the JV, of which EVG is the principal partner).

AZUAY PROJECT

EVG has created a company in conjunction with two landowners in Ecuador that are currently mining vein style gold over 700 ha. EVG will earn a 65% interest in the company by spending $6.5m in mapping, drilling and feasibility studies.

Consultants have recently been on the properties creating 3D maps and taking tunnel samples. This is to understand the gold mineralisation and prepare for extensive drilling.

Historical drill results have led the consultants to agree that there is likely +1m oz of +10g/t over the properties that could support a 75k oz p.a. production operation.

UPCOMING ANNOUNCEMENTS AND MILESTONES CY 2010

1.Accessing of financing and money flow for LL project Announced 14/10/10
2.Hedging of 126,000 oz of LL gold production
3.Construction milestones and timeline and revised NPV for LL
4.Consultants Report for Azuay confirming conceptual potential for +1m oz of gold
5.Scoping Study for Azuay Project outlining financial robustness and projections
6.Commencement of drilling on Azuay for maiden JORC resource

NPV AND CASHFLOW FOR LAS LAGUNAS PROJECT

Page 9 of the latest Annual Report provides an NPV for LL using inputs approved by Macquarie Bank. This base case, and conservative NPV, shows the following:

Variable inputs (USD)

Hedged price of 126,000 oz gold $1250.00
Unhedged price of 295,000 oz of gold $1010.00
Unhedged price of 3.8m oz of silver $15.34
Exchange rate 85c
Discount rate 10%

Project NPV (AUD @ 0.85c)

NPV $0.26 per share ($112m)*
Project profit to EVG $0.368 per share ($158.2m)
Capital returned to EVG $0.098 per share ($42.3m)

* Based on 430m shares on issue

However, these inputs are conservative and out-of-date. For example gold will be hedged in the coming weeks at the spot price, which is currently USD $1,372 which is 9.7% above the NPV input figure. Likewise, silver is currently trading at USD $24.51 which is 59.7% higher than the NPV input. The exchange rate has also moved significantly and the spot price of gold is currently 36% above the unhedged gold input price.

Assuming the current spot prices for the inputs (gold $1,372, silver $24.51 and the AUD 0.99c) I believe that there is significant upside for the LL project:

(1)Revenue increases $158m in USD/AUD I assume parity
(2)Marginal costs (royalties, taxes, project share with Dominican Government and JV partner) equate to 48.1%*. This leaves an additional $82m for EVG on the NPAT line.
(3)Assuming that this is spread evenly over the project life and with a 10% discount rate this provides an increased NPV of $57.8m.

* Government royalties 3.2%, Government share of operating profit 13.9%, Dominican income tax 25.0%, JV partner share 6.0%

Project NPV (Gold $1,372, silver $24.51 and AUD @ 0.99c)**

(1)NPV $0.355 per share ($152m)
(2)Project profit to EVG $0.502 per share ($216m)
(3)Capital returned to EVG $0.084 cents per share ($36m)

** Note entire NPV has been recalculated using AUD $0.99 instead of the original AUD $0.85

SHOW ME THE BAGS

This is how I believe EVG will become a 14 bagger (capital growth and dividends) in the coming years:

Bag 1

The return of all its capital from the LL project ($36m). Market capitalisation of EVG currently is $33m.

Bag 2

EVG is spending USD $81m on building its LL gold plant including an Albion processing component. The plant is situated in an area prospective for gold and highly mineralised. Several (predominantly Canadian companies) are developing adjacent and surrounding properties. EVG will own the gold plant after the 6.5 year LL project life. I have assumed that this will either be sold for a minimum of AUD $33m or remain as an income earning asset for EVG either via subsequent JV or toll treatment of ore.

Bags 3 - 8

This is the profit returned to EVG over the LL project life using Macquarie Bank conservative NPV inputs. A total of $158.2m will be returned to EVG in profit or $0.368 per share (current SP $0.078)

Bags 9 - 10

This is the incremental profit returned to EVG from LL using the less conservative spot prices for gold and silver but the more conservative current AUD rate. An additional $58m is returned to EVG.

Bag 11

This is from an assumed +1m oz of +10g/t gold on the Azuay properties valued at a JORC level of confidence. From an early CY 2010 report from PIR the average metric for Australian gold transactions is approximately AUD $34 oz, undeveloped. Thus, with 1m oz a value could be prescribed of $34m for the Azuay Project in its early stages.

Bag 12 - 14+

This is from the assumed development of the Azuay Gold Project into a 75k oz p.a. high grade project of which EVG will hold a 65% interest in.

CONCLUSION

I believe that EVG is well placed in terms of its company life cycle in a very good sector and will enjoy significant profits over the coming years as it ramps up its two existing projects and develops more. I think a multi-bagger is well and truly feasible from here and not blue-sky-dreaming.

FINAL NOTE

In the true spirit of HC this is shared with others to allow an opportunity to at least become aware of this opportunity. Your own research is obviously required. However, if you thought this was useful, please thumb it up and maybe it will appear on the main page, thus allowing other, fellow HC�ers to at least become aware of EVG.


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## So_Cynical (12 November 2010)

OH Snap!  EVGO hit a all time high today of 0.034 up 26.9% : ive never been in the ridiculous position of sitting on 3200% profit before. :bananasmi one of those moments where i really wish id brought a few more.


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## exberliner1 (13 November 2010)

So_Cynical said:


> OH Snap!  EVGO hit a all time high today of 0.034 up 26.9% : ive never been in the ridiculous position of sitting on 3200% profit before. :bananasmi one of those moments where i really wish id brought a few more.




Well done if that is the case.

But I thought the new series options were issued at 1c making your profit just a little bit smaller in percentage terms.

Anyway it is the bags to come that interest me hence my request for any educated input from ASF members.

Greetings from Kiev

EB


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## So_Cynical (13 November 2010)

exberliner1 said:


> Well done if that is the case.
> 
> But I thought the new series options were issued at 1c making your profit just a little bit smaller in percentage terms.




Issue price was 0.001 per option 1 for 2  at the time i thought it was pretty silly but im just a lowly investor..what do i know :dunno: so i just paid up the $30 odd dollars it was....just one of the benefits of being a long term holder with a little vision and belief.

The screen shot below is from the second last half yearly (linked) report...page 18.

http://www.asx.com.au/asxpdf/20100315/pdf/31p8dn1m8wvwn7.pdf
~


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## Sean K (13 November 2010)

Had a fantastic run the past couple of months. 

If they can start producing as claimed in quick time then they look undervalued.

Still lots of water to run under the bridge before it gets off the ground though.

I question their assumptions on recovery and opex just due to the ore and the technology. Will it really work that well for this particular waste dump? They haven't tested the ore by the looks.  

I'm not impressed with managements continued projections about development and financing. Just problem after problem. Maybe that's just the way things go in Latin America.

Not sure if the boss should have been getting paid 400k a year for not getting anywhere. I supposed he got the company out of Venezuela without too much damage. 

I'm skeptical as to why the minority shareholder would delay the project financing with Macquarie for so long. If it was clearly in their best interests why fight it? 

And what happened to the significant JV partner? Is that the mob who has caused all the problems? Good partners...

The Ecuador project troubles me. How the previous analysts plucked 1m plus potential there is beyond me. They've been returning 10-100 ppm over 1-2m in the veins of the old workings and rock chips. At that rate they'd have to have many kilometres of veins to reach the 1m ounces. Then they have to sludge it to the closest possible sight for a mill which is potentially 20km away. Long way to go for any JORC to pop out of this one.

But, by the pictures it seems they've got some good concrete slabs laid out in the Dominican Republic. With the financing now available they just might get the mill built and starting producing as stated. 

Good luck!


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## So_Cynical (13 November 2010)

kennas said:


> I question their assumptions on recovery and opex just due to the ore and the technology. Will it really work that well for this particular waste dump? They haven't tested the ore by the looks.




A couple of container loads of tailings were shipped to Brisbane about 3 years ago and run through the Albion demonstration and test mill that was/is? setup up there....the recovery numbers are real, audited and verified. 



kennas said:


> I'm not impressed with managements continued projections about development and financing. Just problem after problem. Maybe that's just the way things go in Latin America.




I'm not that impressed either...but for company's with no money and no income needing to borrow money over the last 3 years it has been a nightmare, especially when they want to do it in a way that respects there current shareholders and doesn't destroy there value by diluting the crap out of them...say like CTO has done with endless cap raisings.

In the last 3 years EVG has done 1 cap raising (rights issue) and 1 option issue (EVGO) and a couple of small placements...as a longer term holder, in my opinion there have done the best they could while not constantly asking me for money and not overly diluting me.



kennas said:


> Not sure if the boss should have been getting paid 400k a year for not getting anywhere. I supposed he got the company out of Venezuela without too much damage.




Agree...its prob twice what a CEO of a prospector should be getting...IMO 



kennas said:


> I'm skeptical as to why the minority shareholder would delay the project financing with Macquarie for so long. If it was clearly in their best interests why fight it?




What i think was happening here is that there local minority "partner" was planning  to pick up the project for a song after EVG fell over due to the constant delays and need of financing to move forward...i reckon they thought the Aussies would run out of money and pack up and go home, and they as the minority holders would get first crack at the project when the Govt put it back on the market.



kennas said:


> The Ecuador project troubles me. How the previous analysts plucked 1m plus potential there is beyond me. They've been returning 10-100 ppm over 1-2m in the veins of the old workings and rock chips. At that rate they'd have to have many kilometres of veins to reach the 1m ounces. Then they have to sludge it to the closest possible sight for a mill which is potentially 20km away. Long way to go for any JORC to pop out of this one.




Yep Equador is a side show.



kennas said:


> But, by the pictures it seems they've got some good concrete slabs laid out in the Dominican Republic. With the financing now available they just might get the mill built and starting producing as stated.
> 
> Good luck!




All the hard yards have been done...as the share price reflects.


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## tahpot (13 November 2010)

kennas said:


> I'm not impressed with managements continued projections about development and financing. Just problem after problem. Maybe that's just the way things go in Latin America.




I held EVG & EVGO a couple of years ago, but in the end wasn't impressed by management and the delays so exited for a small profit. Although the project has made some progress since then the share price is about back to where it was, if I remember correctly.

Either way, if you are comfortable with the quality of management and their ability to execute, then jump on for a good ride. Personally I'm not convinced enough that management can do the job so aren't jumping on board the second time, but good luck to those that do and I hope you're rewarded... just be cautious.


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## exberliner1 (13 November 2010)

So_Cynical said:


> Issue price was 0.001 per option 1 for 2  at the time i thought it was pretty silly but im just a lowly investor..what do i know :dunno: so i just paid up the $30 odd dollars it was....just one of the benefits of being a long term holder with a little vision and belief.
> 
> The screen shot below is from the second last half yearly (linked) report...page 18.
> 
> ...




My mitsake then ... I was not a holder back then so I wasn't paying attention.

That $30 should give you one of the biggest percentage gains in history - shame it was only $30

Thanks for clarifying.

I paid just above 3c average for mine.

EB


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## exberliner1 (13 November 2010)

Thanks guys for your feedback.

EVGO is in my speccy portfolio at the moment but it is getting close to being promoted to my super fund.

Delighted with the negative comments as well as the positive.

I left Sydney a few years ago and now live in Kiev so sometimes forums like HC and ASF are the only place to discuss the stocks I own. Not many Ukrainians have a view on the Australian stock market 

Have a good weekend all.

EB


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## Sean K (14 November 2010)

exberliner1 said:


> Delighted with the negative comments as well as the positive.



I suppose all we've done is identify the risks. But with risk there is danger and opportunity. High risk = High reward. Some people may judge it to be lower risk, but that's why they will perhaps take the risk and reap the reward. Or otherwise.


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## exberliner1 (14 November 2010)

kennas said:


> I suppose all we've done is identify the risks. But with risk there is danger and opportunity. High risk = High reward. Some people may judge it to be lower risk, but that's why they will perhaps take the risk and reap the reward. Or otherwise.




Indeed but Macquarrie seems happy with the risks as they have put up $37.5mn in loans with a chunk of it to be repaid by forward gold sales (that Macquarrie arranges) so if those forwards cannot be covered by actual production then Macquarrie will have to deliver from other means ... such as buying gold on market.

I am sure Macquarrie's analysts were able to see a bit more management data than is available to us mere motals before they committed to lend the money and  obviously liked what they saw.i 

Anyway, many thanks I saw all the risks outlined and so far seem to have missed none.

Watch this space, based upon last week's upward movement and an apparent lack of stock together with good management reporting I think EVG is showing all the signs of being a bit more lively over the next week.


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## ubid (14 November 2010)

Mr Johnson must be pretty happy with the risks also has anybody seen how many shares he has bought on market since he arrived?  It's mind boggling!

He has spent far more than he has earned since he took the helm.
I think anyone who wonders if he has been payed too much should go back and do their homework lol.

This will be 20c by Christmas and beyond .... Who know's ??  One thing is for certain he is a man on a mission and if anyone can get the ball rolling in a big way it is him! 


Good Luck to the long termers this is just the start imo!


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## Sean K (15 November 2010)

exberliner1 said:


> Watch this space, based upon last week's upward movement and an apparent lack of stock together with good management reporting



They do report a lot, but I'm not sure about 'good'. Have continuously promised and failed to deliver actually. Going back through their anns over the past few years and it's just failed forecast after failed forecast.

Talk of the Trujillo Project in Peru a case in point.

13 March 2008

SUBJECT: ENVIROGOLD ADVANCES 150,000 OUNCE PER YEAR TRUJILLO GOLD PROJECT IN PERU

Mr Brian Johnson, Executive Chairman of EnviroGold Limited (ASX Code “EVG”), advises that the Company has further defined its objectives for the Trujillo Gold Project in northern Peru following an extensive review of opportunities to source high grade gold and silver polymetallic concentrates from mines in the region east of Trujillo, the capital of La Libertad Province.

EnviroGold has committed to pursuing the development of a centralised processing plant in two stages utilising Xstrata Technology’s Albion Process, each with the capacity to extract approximately 75,000 ounces of gold equivalent per year (refer equivalency calculation – Appendix 1).

The plant will be constructed in two stages, with one to be wholly owned by EnviroGold and the other possibly partially owned by a Peruvian mining company, Corporation Minera San Manuel (“CMSM”), which has expressed an interest in a joint venture and which is in the position to provide high grade concentrate from its existing Cascajal and Sayapullo gold and silver mines.

The first plant to be developed by EnviroGold is planned for commissioning in late 2009, and the second, one year later subject to security of feed and technical and commercial viability.


HUH?  What ever happened to that? There is not one ann specific to this project following this? Maybe it was hidden in a Quarterly.


And, on funding for Las Lagunas mid 09:

22 July 2009

SUBJECT:	SHARE PLACEMENT FINALISES EQUITY FUNDING FOR LAS LAGUNAS GOLD TAILINGS PROJECT, DOMINICAN REPUBLIC

Mr Brian Johnson, Executive Chairman of EnviroGold Limited (ASX code “EVG”), advises that the Company has placed 40.0 million shares with clients of Stockbrokers Lodge Partners, at 5 cents per share in accordance with Australian Securities Exchange Listing Rule 7.1.

The $2.0 million raised together with cash in hand will be applied to EnviroGold’s outstanding equity requirement for the Las Lagunas Gold Tailings Project in the Dominican Republic.

Mr Johnson is confident that with falling local construction costs *the project will now be fully funded* and further capital raisings will only be required if they are to be applied to new opportunities in Latin America.


I've lost count of the number of times they have raised money since.

Add it todays ann......


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## So_Cynical (15 November 2010)

kennas said:


> I've lost count of the number of times they have raised money since.
> 
> Add it todays ann......




LOL...While we are on the subject of placements and raising money 

EVG announced today that they are placing another 65 million shares at 0.11 cents each to oh so sophisticated investors to raise 7.15 million, dollars to be used to advance the Ecuador project and buy out there oh so helpful local minority partner...by my rough calculations a 16% dilution.

Market seemed to like it, EVG up another 4% (intra day 12%) at the close and EVGO up 10% intra day before falling back to hold at the 0.033 level....this long term holder is pretty happy.


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## exberliner1 (15 November 2010)

I think we are seeing many new investors joining the register - I am one of them - people who are not affected by issues in the past.

I am more interested in the short term future which to me looks very positive and causes me to personally value EVG at a higher price that the current market price, which is why I bought the options for leverage.

I am firmly of the belief that EVG has turned a corner and my viewpoint on the company is not "poisoned" by legacy baggage issues.

I saw a simillar situation with CQT back in 2006 when historic mistakes and earlier exagerated claims by the management caused many investors to ignore the stock and thus miss out on some pretty spectacular gains.

Still we wouldn't have a market without opposing views and I for one like to hear both sides of the argument.

Although having said that I still think the positives for EVG far outweigh any negatives.

EB


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## Sean K (16 November 2010)

exberliner1 said:


> I am firmly of the belief that EVG has turned a corner and my viewpoint on the company is not "poisoned" by legacy baggage issues.
> 
> Although having said that I still think the positives for EVG far outweigh any negatives.
> 
> EB



Sorry to be negative EB, but they deserve it. It's still the same management promising the same stuff, to date.

Although, they have poured some concrete so the wheels are definately in motion at the moment. 

Brian Johnson has an interesting background in this company when you do a little research.

A Director of the major Shareholder, Moonstar.
Was a Director of the company that Envirogold bought that owned Lagunas. 
Owns the company that Envriogold have bought the license for the Albion process off.

Looks like he's putting his heart and soul into this.


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## exberliner1 (16 November 2010)

kennas - as I said every market has 2 sides.

In the current situation you would be a seller and I would be a buyer.

The broker would take his 0.3% and the wheels would continue revolving.

Time will tell.

I think EVGO is worth a bag or two before the year's out.

EB


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## speculator101 (16 November 2010)

Hi Kennas and Exberliner,

good to have a little discussion on EVG.
Been sooo quiet for so long.
I have been a holder since it listed.. and am happy to keep holding. As you have discussed, EVG has had a BIIIG pile of issues.
However.. my beacon is their eventual cost basis for production.. this is what makes me feel confident enough to not sell even though the share has gone up from 3c ( yes... %400 profit...) to 12c.

However, after following Brian J from Mount Gibson ( Which he made from the ground up) I have every confidence that he will do it again.

Yes, he has pretty much put a lot of his own money on the line, which I respect in itself, but for me more importantly, he believes that this is a great investment...and if the production does happen as planned...  this could... one day be a share that I can sell and pay off the house with.

Ha... yes I am optimistic... but... after buying Mount Gibson at 18c and selling for $3.37c.... I have a right to be I believe.

I also have ah... quite a few options as there have been people willing to sell for almost nothing in the past.

I would put up my calcs regarding valuations.. and future production. But to be honest, I don't really want others to get into this share. 

Goodluck to all holders... 
AND DO YOUR OWN RESEARCH..... ( I could be a teenager that works at safeway!)


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## ubid (21 November 2010)

Hi speculator101,

I would be interested in your Calculations in EVG.

I think we should see some more movement in the next few weeks with a few announcements expected from Equador and then hopefully the done deal on the minority holder on the 6th of December.

I am confident we will see 20c by end of the year.

EVG could be worth anything if we prove up more ounces on adjacent leases if we get them.

I am very bullish on Gold also so hopefully should be a terrific 5 years minimum coming up.

Cheers,

Ubid.


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## prawn_86 (21 November 2010)

speculator101 said:


> Hi Kennas and Exberliner,
> 
> good to have a little discussion on EVG.
> Been sooo quiet for so long.
> ...




So in this whole post what analysis is there giving a reason it should go up in our opinion, aside from the fact that the MD has done it before with a different company.

This is very close to a ramp, and in the future more analysis would be appreciated

Thanks


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## speculator101 (23 November 2010)

Hi Ubid and Prawn...

Ah, so in my earlier post I was simply posting what has happened in the past... Facts that is. Of course EVG could go belly up like many other companies in the past, however as I stated it has a few things going for it, and after speaking to Mr Brian J last week, to get an honest opinion of what he thinks this company is capable of, I will go so far as to say that I would repeat my earlier post, and times it by 2 regarding my positivity.

I highly doubt there would be many other Managers of company willing to go to the lengths  he has to make EVG into a company that will continue to try its very best to reward both those that work in it as well as own part of it.

( Note - I suppose this could also be seen as ramping, but surely I am allowed my own thoughts and opinions as long as state that they are just that?)

So.. Positives...  ( Please read through the past Company announcements for proof)
Forward sold Gold sales... ( at a good price )
Long term plans, with lots of other mines just waiting to be leached...
Production will soonish (in the world of Mining companies that is!).. commence
Very strong support from Institutional investors regarding recent rights issues to ensure funding.
* Therefore have enough money to now reach production stage.
Dare I repeat: great management.

If you just wait a couple more days, there will hopefully be some more positive news from the company regarding future projects.. no inside information I assure you, just what has been spoken about in past company announcements. 

As Ubid mentioned - soon to be sorted issue with the very annoying joint venture partner who has almost... well.. tried to ruin the company.. for reason I am not privy too.

Right.. so... you want numbers.... figures... proof that this company is going to do great things... well.. As i stated, I won't be putting them up ( and yes, please post any criticism's).
Also, after reading comments from people like Kennas and Agentm (for example) I really don't feel confident enough to put them up. As this is not really my area of expertise. 
Sorry to disappoint anyone who reads this.

Perhaps the information that best shows this company has something going for it, is last week they did a capital raising, at 11c. and.... the share price is at 12.5c. Proof is in the pudding.

Goodluck to all holders...   
AND DO YOUR OWN RESEARCH..... ( I could be a teenager that works at safeway!) 

p.s sorry for the long post. :headshake


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## Sean K (8 December 2010)

> SUBJECT:	ENVIROGOLD RELEASES RESULTS OF SCOPING STUDY FOR AZUAY GOLD MINING PROJECT, ECUADOR
> 
> EnviroGold Limited (ASX Code “EVG”) attaches herewith the results of its Scoping Study for the planned expansion of the Pinglio and Papercorp underground mines in the Azuay region of Ecuador.
> EnviroGold is earning a 65% interest in the two high grade adjoining mines by spending US$6.5 million on a 27,000m drilling program and associated resource definition during 2011, prior to a planned expansion to a 100,000 oz gold per year operation.




I've never seen an exploration company come out with a 'Scoping Study' including income, when they haven't even got an initial JORC out, let alone a Resource. Quite incredible. A Feasibility without drilling a hole? Good stuff that. 



> The ultimate technical and commercial viability of the project is obviously dependent on the results of the 2011 drilling program, further metallurgical testwork, detailed mine planning, and final costings.



Really? 

What they are saying is, 'if we find anything of substance down the track, and we can afford to build a mill, depending on the POG, and political situation in Ecuador, we might be able to mine.'

A formal Scoping Study for that? 

WTF!?!


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## exberliner1 (8 December 2010)

The market seemed to like it as it went up.

Base your valuations on the Dominican project for the moment that has proven reserves and will be producing gold in 2011.

Everything else is a bonus.

I am up 40% on my EVGOs in the last 4 weeks so I am not complaining.

EB


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## So_Cynical (8 December 2010)

exberliner1 said:


> The market seemed to like it as it went up.
> 
> Base your valuations on the Dominican project for the moment that has proven reserves and will be producing gold in 2011.
> 
> ...




Yep Ecuador is a side show, its all about the DR project and all the numbers for that are in perfect alignment....on the EVGO front i sold out today at 0.044 for a 4189% profit...must surely go down as the biggest percentage winner ill ever have and the easiest 1000 bucks ill ever make.  my reasoning for the EVGO sell out was.

With EVGO selling at around 4.5 CPS, EVG shares would have to be trading at around 19 or 20 cents to be in the money for punters buying in at over 0.044 considering the conversion price is 15 CPS, and i cant really see EVG trading at 19 cents any time soon.

Sure the options have 11 months to go till there worthless and alot can happen in 11 months, but i just cant see it, and if i hung on to my EVGO and paid the 15 CPS to convert them to ordinary shares, the SP would still have to get to 19 or 20 CPS for me to make the 1000 bucks i just made.

And ive got 48000 EVG shares anyway so plenty of exposure to EVG upside...anyway a nice little Xmas punting bonus for myself considering i never really expected anything from my $30 odd dollar EVGO investment.


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## exberliner1 (9 December 2010)

That's where we differ, I can see EVG at 20c+ sometime soon based on the DR project alone, I have given my reasons in earlier posts in this thread.

Given the upside on the DR project 4.5c premium is not too expensive for the EVGOs imo especially at it gives X3 leverage and has a year to run.

Although I can't blame you taking a 4000%+ profit.

EB


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## Sean K (9 December 2010)

exberliner1 said:


> That's where we differ, I can see EVG at 20c+ sometime soon based on the DR project alone, I have given my reasons in earlier posts in this thread.
> 
> Given the upside on the DR project 4.5c premium is not too expensive for the EVGOs imo especially at it gives X3 leverage and has a year to run.
> 
> ...



I really like your fundamental approach to the DR project EB, and I hope all the assumptions come to fruition and it's rated accordingly. Should be a very handy return on the basic numbers. I still doubt execution of the plan however but hope I am well off mark. Wouldn't be the first time.


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## Sean K (15 January 2011)

Ref drilling in Ecuador this year, did they actually say 'drilling'? Or just rock chip sampling? 

Technically, short term looks pretty positive on the close yesterday. If it follows through on volume, nice.






(I still think fundamentally this is highly speculative)


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## grandia3 (24 January 2011)

envirogold has just announced a new progress report

it's looking good on the report
"ENVIROGOLD REPORTS ACCELERATING PROGRESS ON CONSTRUCTION OF
ITS ALBION PROCESS PLANT – LAS LAGUNAS GOLD TAILINGS PROJECT"

I don't get why the SP is falling


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## speculator101 (24 January 2011)

I would hesitate to guess that some shareholders are selling now to raise some cash to be ready to take up the options which become available at the end of the year at 15c (2011).
Yes... it does not make sense when you first think about it... but they might be hedging their betts regarding the price... could even be viewed as prudent.

but... thats just one option, could be someone getting out as they need the cash?
or... someone does not believe that gold will go higher... as the media keeps harping about... sigh... I love it.. push down the price so I can buy more... gold.. and gold companies... 

Go Bernake Go!!  

Goodluck to all holders... 
AND DO YOUR OWN RESEARCH..... ( I could be a teenager that works at safeway!)


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## So_Cynical (24 January 2011)

grandia3 said:


> I don't get why the SP is falling






speculator101 said:


> I would hesitate to guess that some shareholders are selling now to raise some cash to be ready to take up the options.
> could be someone getting out as they need the cash?
> or... someone does not believe that gold will go higher




Or it could be that the gold and silver price has fallen and there is renewed optimism in the USD and Euro etc...this is just a wild guess on my part as i really haven't learnt to much about gold stocks in the 3 and a half years ive been playing around with them.


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## grandia3 (25 January 2011)

good point with the commodities price decrease

gold price has been decreasing lately


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## Sean K (24 March 2011)

Really, can these guys be serious?

A scoping study stating 100k oz pa without even having a JORC. Of anything?

It really is laughable IMO.


> ASX / Media Release
> 22 March 2011
> ABN: 48 008 031 034
> 
> ...




A 14 year mine life infers 1.4m oz recovery. And NO JORC!


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## So_Cynical (8 April 2011)

EVG had an amazing day today, the share price ended up 35.71% at the close and was as high as 47.5% up intra day on volume that saw about 12% of the company traded, 70 million shares...today was also the first day that we have seen the conversion of Listed Options (EVGO) due to there 15 cents strike price getting left in the dust of today 19+ CPS price action.

I didn't sell...as i have tax issues and just for a change thought i mite hold off and see what happens...wait for the inevitable new substantial holder announcement...needless to say my portfolio hit yet another new all time high today.
~


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## speculator101 (10 April 2011)

*Reason for share price jump*

Hi all. 
I realise I will always be out of my depth in this forum, but honestly, I have few like-minded people around me to discuss topics like shares. 

So onto the my heading. 
Last week, a mining research publication ( unnamed for the reason that it annoys the hell out of me that others get research that I pay for ) gave EVG the thumbs up.

Simple reason - the gold they have... has already been dug up..... So.. the only risk ( other than natural disasters ) is getting the leeching process going. Then... all those tailings... turn into GOLD! ( and... perhaps in the long term, more importantly... silver )

The valuation that the publication published is quote 'extremely conservative' and based solely on the first site getting into production ( The valuation is very much above the current share price).
So basically... everything else is blue sky regarding the share price.

exberliner1 - not sure if your still around, but I do hope you have been able to enjoy the first real bump in the share price since last year.

Kennas - you know a lot more about this industry that me ( I am in the Education sector, closest I get to mining.. is talking about its importance to Australia’s economy ) I would love to get an update on your thoughts about this company?

I have read as much as I can about the leeching process and it seems to be a proven technology... that is totally underutilised... but! then.. as I stated.. not really sure.

Anyway, hope all the shareholders realise that Brian J is not blind or obsessed about this company, he is just willing to put his money up as proof that one way or the other, the company is going to succeed. 

Just in case, anyone didn’t notice, he took up millions of options ( that were out of the money! ) to ensure the company does not need to do another share placement. Which, I can understand upsets many people.. but I have followed other small mining companies.. and they have also done many cap raising... is EVG any different?

hmm... this post much look like I am some die hard EVG holder!    but I am just really excited about owning part of company that could really assist me financially in the future. I guess I really just want to hear others thoughts and idea's on EVG.

Good luck to all holders... etc.
AND DO YOUR OWN RESEARCH..... ( I could be a teenager that works at Safeway!)


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## So_Cynical (10 April 2011)

*Re: Reason for share price jump*



speculator101 said:


> Last week, a mining research publication ( unnamed for the reason that it annoys the hell out of me that others get research that I pay for ) gave EVG the thumbs up.
> 
> Simple reason - the gold they have... has already been dug up..... So.. the only risk ( other than natural disasters ) is getting the leeching process going. Then... all those tailings... turn into GOLD! ( and... perhaps in the long term, more importantly... silver )
> 
> ...




So tell us the target price? ... the fact that its a tailing deposit was the main driver for my original investment 3 years ago because i figure its a very low risk operation...good to see the industry professionals have caught up with my thinking  after the SP has risen some 550%  brilliant. 



speculator101 said:


> Kennas - you know a lot more about this industry that me ( I am in the Education sector, closest I get to mining.. is talking about its importance to Australia’s economy ) I would love to get an update on your thoughts about this company?
> 
> I have read as much as I can about the leeching process and it seems to be a proven technology... that is totally underutilised... but! then.. as I stated.. not really sure.
> 
> Anyway, hope all the shareholders realise that Brian J is not blind or obsessed about this company, he is just willing to put his money up as proof that one way or the other, the company is going to succeed.




Not sure why Kennas has a bee in his bonnet over EVG and has called the stock speculative...for me its always been a stock with a reasonable degree of certainty in that Las Lagunas certainly has alot of gold and silver that is easy and cheap to get at and the Albion process is 100% proven and tested with Las Lagunas ore.

https://www.aussiestockforums.com/forums/showthread.php?t=7127&p=591495&viewfull=1#post591495

The other projects are a side show and waste of time and money in my opinion, and the fact the Brian J pays himself 400K a year to manage a company that losses money is quite frankly discussing and shameful.


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## speculator101 (11 April 2011)

Really appreciate the post So_Cynical. ( a good name if I might say so regarding share investment ) Good to see that you have been able to make some $ with your investment in EVG. Just wish I could have bought more at $0.031 ( ah those were the days )

I would have to bash myself up if I gave away the full share price valuation, however just the valuation of Las Lagunas project to the company is $0.42. 
This has me quite excited, as I stated above, this is just 1 tailings deposit.....!!!! 

Anyway, ( my wife just told me to not ramp!!! )
I believe that this week will be quite bumpy, with the price possibly going as low as 15cents, then back to above 20cents. Many shareholders will want to take some profits ( although considering that 32% of the company's shares changed hands last week, on one day... hopefully those wanting to stay for the ride have already grabbed hold.

I must admit, I did not realise that Mr Brian J was earning that much from the Company, that is too much, considering the company's market cap. I can only take solice that all the money he has invested/loaned etc has not earned him interest etc ( beyond market rates).

and please Mr Bernanke.. bring on QE 3,4,5,6,7,8,9,10+ ( BTW - i do not say this naively, I believe I have a good understanding of what will occur and have invested to protect my wealth )

Good luck to all holders... etc.
AND DO YOUR OWN RESEARCH..... ( I could be a teenager that works at Safeway!)


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## So_Cynical (16 April 2011)

I closed trade #61 today...3 years and 2 months after my first entry into EVG i decided to take my first profit today (60%+ profit) a part sell of my first and most expensive parcel of EVG shares...bringing down my average price a little and thus lifting my open profit % a little....my EVG position is now about 40% free carried.

The Belief Wikipedia says

"Belief is the psychological state in which an individual holds a proposition or premise to be true"

http://en.wikipedia.org/wiki/Belief

The above very much sums up my overall thinking re my decision to buy into gold/silver stocks 4 years ago...hindsight tells us that i paid to much for all my gold and silver stocks and that's true...however i kept on buying as the SP's dropped and waited for the market to catch up with my thinking and have thus reaped the rewards over the last 12 months.

Time is an amazing advantage that long term investors have...its an incredible tool, a life changing tool...has been for me anyway.
~


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## Sean K (30 August 2011)

*Re: Reason for share price jump*



So_Cynical said:


> Not sure why Kennas has a bee in his bonnet over EVG and has called the stock speculative..



Any stock is speculative SC. On the range of speculation between an EVG and a BHP you'd have to put EVG more towards the spec end I guess.

As an aside, interesting move from the company recently and its second largest shareholder, Denman Group. They bought about $150K in stock in Feb/Mar just before the spike and then sold over $1m in stock just after the spike reducing their stake from something like 9.2% to 7.8%. Nice work.

Then a few days ago, Mr Denman (aka The Denman Group) becomes a non executive director. His qualifications to be a director? 

He has a couple of degrees, and worked for KPMG as an accountant. 

Nice work by Brian Johnson also buying stock and converting quite a few options in March just prior to the spike and selling just after.

Must have been for tax reasons. 

Did I read in June that an Executive Director was appointed for $350K pa? In addition to his pre existing compensation. Wasn't he already a Director? 

I am confused about the 'trial mining' announcement a few days ago. It doesn't actually say what they did other than dig up some dirt and relocate it for the wet season. 

Is that 'trial mining'?


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## So_Cynical (26 September 2011)

As of tomorrow (27-09-2011) Envirogold (EVG) has changed its name and its ASX code to PanTerra Gold (PGI). As such a new thread has been created and the discussion has been moved there: https://www.aussiestockforums.com/forums/showthread.php?t=23501


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