# ADS - ADV Group



## rwkni1 (15 November 2006)

Did anyone see the announcement from these guys?

Intersected 122m at 2.74% Cu starting at only 50m below surface.

Its early days but these cats could be onto something big, market cap is only 30m.


----------



## bigdog (15 November 2006)

chris1983 what are your thoughts?

I read the report yesterday and inclined like rwkni1     

ADS looks interesting up 4 cents to 20.5 today


----------



## tahpot (16 November 2006)

I bought today - small market cap and looks like a tidy find. They don't have a huge interest, but can expand it with further work. Looks pretty promising, but I need further research before dipping any more toes in.


----------



## two40 (16 November 2006)

day traded this one today. if i had more cap i'd short it.


----------



## CanOz (16 November 2006)

Check out the weekly, monthly and yearly charts...bizarre.


----------



## rwkni1 (17 November 2006)

CanOz said:
			
		

> Check out the weekly, monthly and yearly charts...bizarre.




Yeah, i still haven't had time to do much research into these guys, but from what i can see it looks as though they were some kind of biotech operation before management changed and they got their hands on these tenements in Saudi. Looks a bit suspect but I took out a position anyway for a roll of the dice. 122m grading 2.7% is still a very nice first assay. Also, volumes have been huge, about 50% of the free float has been turned over this week.


----------



## imajica (24 November 2006)

in their latest announcement it mentions that the resource estimate is:

100-150 million tonnes @ between 1-1.5% Cu

bigger than rocklands

DYOR and then buy some! the big players are already set


----------



## YOUNG_TRADER (24 November 2006)

Guys don't shoot the messenger on this one but a quick look around showed me the following


1. ADS has 185m shares + 40m convertible shares + 15m 20c opies + 130m 5c opies
*
So at prices above 20c Fully Dilluted shares = 370m
Mkt Cap at 25c = $92.5m*


2. Has anyone looked at the maze of ownership/interests?


*ADS has the option to convert a loan into 25% ownership of VERTEX

VERTEX holds 70% of BARIQ

BARIQ is earning 50% in the Jabal Sayid deposit*
*
So ADS indeirectly has the option to acquire a 0.25x0.7x0.5 = 8.75% interest*

Again don't shoot the messenger I could be wrong as I only looked very very briefly but unless someone can give figures to the contrary 
*
An 8.75% interest in a POSSIBLE Rocklands type deposit shouldn't give a company a mkt cap of $100m*

Thoughts?


----------



## rwkni1 (24 November 2006)

YOUNG_TRADER said:
			
		

> Guys don't shoot the messenger on this one but a quick look around showed me the following
> 
> 
> 1. ADS has 185m shares + 40m convertible shares + 15m 20c opies + 130m 5c opies
> ...




Wow, i never bothered to do the calcs but that makes sense. Based on that info i'm surprised it even made it to a mkt cap of 50m undiluted - this thing has had some serious momentum. I just skimmed through some of their releases after seeing those comments I noted they highlight that they have been granted "the first and last right of refusal to engage in negotiations to acquire a greater interest in Vertex". Now, that's hardly clear to me, but it seems to be suggesting that they may have the option to increase their stake in Vertex. Either way, this hole operation looks fishy - i've been thinking about taking a profit for a couple of days now but have been encouraged by the huge turnover. Management certainly has made very little effort to disclose in a clear manner exactly what their interest in Jabal Sayid is, but have been happy to boast about the spectacular drill results. I think i'll be bailing on Monday.....


----------



## imajica (24 November 2006)

the deposit is likely to be at least twice the size of CDU's rocklands deposit.

apart from that ADS has an interest in 6 other tenements that are highly prospective - in this instance Bariq has a 100% interest  - which would essentially double ADS's share


----------



## imajica (27 November 2006)

just been doing some research

some comparative figures:
CDU's rocklands discovery= 25 million tonnes @ 1.63% Cu
ADS Jabal Sayid tenement = 150 million tonnes (and rising) @ approx 1.5% Cu


----------



## rwkni1 (27 November 2006)

imajica said:
			
		

> just been doing some research
> 
> some comparative figures:
> CDU's rocklands discovery= 25 million tonnes @ 1.63% Cu
> ADS Jabal Sayid tenement = 150 million tonnes (and rising) @ approx 1.5% Cu




How did you pull those numbers for Jabal Sayid?? they've only drilled one hole......


----------



## imajica (27 November 2006)

its estimated in their last announcement based on previous extensive drilling in the area. 

ADS now in trading halt

could be the announcement of some more stellar results


----------



## imajica (27 November 2006)

ADS still in trading halt - will probably resume trading tomorrow on the announcement of news . hopefully will be more stellar intercepts from jabal Sayid - if this eventuates - this one will rocket.

DYOR and then keep this one on your watchlist


----------



## imajica (28 November 2006)

announcement out:

new drill assay results

164 metre intersection at 2.79% copper

these results are insane!


----------



## rwkni1 (28 November 2006)

Pretty amazing results, no doubt this will move quickly.
I still have concerns about their ownership, or lack there of, in Jabal Sayid.
Still, if they keep pulling numbers like this momentum should play its part and push it much higher. Imijaca, what sort of price are you expecting following these results? I've got a feeling it will overshoot in the next couple of days providing a good exit opportunity....


----------



## YOUNG_TRADER (28 November 2006)

I agree they are insane,

But I'm still not sure about a $100m mkt cap for a 8-9% interest in the project, that would mean an NPV of the project of say $1Billion 

Of course if they can acquire a larger stake say 40% or something then you've really got an interesting stock!


STILL 164M AT 2.79% Copper is amazing!


----------



## Sean K (28 November 2006)

Holy Toledo Batman, that drill result can't be right!   What a shame they own so little of it.


----------



## imajica (28 November 2006)

they currently have 8.75% of this project but have first rights to increase it to a total of 35% (ie to own 100% of Vertex who has 35% of this project)

this will be a certainty

35% of a deposit which could be 5-6 bigger than CDU's rocklands

we are talking a share that's worth the equivalent of 1-2 Cdu's


----------



## YOUNG_TRADER (28 November 2006)

imajica said:
			
		

> they currently have 8.75% of this project but have first rights to increase it to a total of 35% (ie to own 100% of Vertex who has 35% of this project)
> 
> this will be a certainty
> 
> ...



Last edited by Joe Blow : Today at 12:43 PM. Reason: ramp removed


----------



## rwkni1 (28 November 2006)

imajica said:
			
		

> they currently have 8.75% of this project but have first rights to increase it to a total of 35% (ie to own 100% of Vertex who has 35% of this project)
> 
> this will be a certainty
> 
> ...




What exactly does "first rights" to increase their ownership mean??? In order for them to take 100% ownership of Vertex someone must have to sell their stake, which in light of these results,  must be fairly unlikely.....


----------



## imajica (28 November 2006)

Tuesday, 28 November 2006

SYDNEY-based exploration company ADV Group has been further convinced of the world-class potential of the Jabal Sayid project in Saudi Arabia after the second diamond drill hole sunk on the property returned an intersect of 164.3m grading 2.79% copper.

Chairman Fletcher Quinn said the latest assay results supported those announced earlier by the company earlier this month, which included an intersect of 122m at 2.7% copper, more than double the expected grade.

"The 164m intercept establishes a very substantial body of mineralisation and it is noteworthy that this hole ended in mineralisation, with drilling being stopped as the depth capacity of the rig was reached," he said.

"It indicates the presence of significant gold and silver credits (0.44 gram per tonne gold and 23.3gpt silver) over the entire intersection, which increases the grade by 10% to 164m at 3.1% on a copper-equivalent basis.

"Further it reinforces our view that Jabal Sayid is likely to rapidly emerge as a world-class ore body and that the grade in the previously announced open-pittable target of 100-150 million tonnes at 1-1.5% copper, based on 50km of previous drilling, may indeed prove to be conservative."

ADV is currently undertaking due diligence on a portfolio of assets in Saudi Arabia owned by Bahrain-based company Vertex.

Vertex is completing a pre-feasibility study at Jabal Sayid, with the first drill program planned to total 5000m. An initial JORC-compliant resource is expected to be produced at the end of the program.

ADV has provided a $1.5 million loan to Vertex to fund exploration at Jabal Sayid, which can be converted into a 25% stake in Vertex.

The Australian company has also been granted first and last right of refusal to enter negotiations to acquire a greater interest in Vertex, with both parties agreeing to a period of exclusive dealing to the end of March 2007.

http://www.miningnews.net/StoryView.asp?StoryID=69559


----------



## imajica (28 November 2006)

Someone on another forum called the company and confirmed the relevant interest ADS has in this project:

Bariq owns 50% of Jebel Sayid
Vertex owns 70% of Bariq
ie Vertex owns 35% of the Jebel Sayid project

ADS currently owns 25% of Vertex, ie 8.75% of this project

HOWEVER ADS has first, and last rights of refusal to acquire up to 100% of Vertex - IMO this is now going to be a certainty before March 31, 2007.

So in other words, ADS will eventually have 35% of this project.


----------



## rwkni1 (28 November 2006)

Why does this first and last right business mean they will be able to acquire 100% of Vertex??? I don't understand. Who is going to sell their share of Vertex???


----------



## imajica (28 November 2006)

I think we are all forgetting about the remaining zones in Jayal Sayid which are even more prospective and Vertex's interest in many other tenements. including one with a conservative resource estimate of 100,000 tonnes of zinc. Jayal Sayid alone could be worth in excess of 40 billion - if the remaining zones are proved up - this could add another few billion at least - even 8.75% of say 40 billion = 3.5 billion share for ADS - and that is not accounting for their option to take a higher stake in the project - a 20% stake is in the realm of 8 billion. what would be a fair share price for a company with 8 billion of inground value? cnsiderably more than it is now! hold this one long term - sit back and smile in a years time


----------



## Sean K (18 December 2006)

Something maybe going on here. Up 14%, no news.

Perhaps ann to be released about Jabal Sayid?


----------



## rwkni1 (21 December 2006)

Yup, looks like they've managed to double their interest in Jabal Sayid. Great announcement and it looks as though it clearly answeres all shareholder questions regarding ownership of the various assets. Jeez i'm wild i sold these, i think this will really start to move now....


----------



## r063r (15 January 2007)

Why is this stock is still under $.20, the news was very positive.
Can anyone please explain what happens?


----------



## Devilito (15 January 2007)

That's right i dont' get it either??? so much positive news and feedback? but why is it still under 20cents??? can anyone explain?


----------



## rwkni1 (17 January 2007)

If you take the 262m shares in the current float, plus 150m options, add to that an additional 340m shares and 40m options for consideration for the purchase of Vertex, you have a fully diluted number of 792m shares on issue. At 19c per share, thats 150m market cap fully diluted. This is pretty large for a company with a 35% interest in a potential mine. Yes, there are other promising tenements that come with the vertex acquisition, and I think Jabal Sayid could be huge, but with that many shares on issue movement will be slow. It certainly won't ever move like a CDU.


----------



## Dukey (9 April 2007)

Just checking these guys out for first time given their appearance in Potential Breakouts thread!!  

Found this presentation which confirms their 35% Jabal Sayid and 70 % interest in 7 other projects - Au, Zn, Ni. (all via Bariq I presume). 

As stated previously - information seems scarce and maybe they want it that way - can't find a homepage.

Any thoughts peoples??


----------



## Sean K (16 April 2007)

Dukey said:


> Just checking these guys out for first time given their appearance in Potential Breakouts thread!!
> 
> Found this presentation which confirms their 35% Jabal Sayid and 70 % interest in 7 other projects - Au, Zn, Ni. (all via Bariq I presume).
> 
> ...



More outstanding drilling results just released. Still 'potential' breakout at 19.5, under resistance at 20.

Can we confirm this ownership relationship here because it's still a little confusing.

By my reading of their announcements they now own 100% of vertex, vertex owns 70% of Bariq, and Bariq is earning 50% of the Jabal Sayid project, which holds the several 'company making' deposits. They therefore hold 35% of JS right??

Has about 800m shares on issue @ .195 = $156m cap. 

Project details below.

(not holding)


----------



## Dukey (16 April 2007)

kennas said:


> Can we confirm this ownership relationship here because it's still a little confusing.
> 
> By my reading of their announcements they now own 100% of vertex, vertex owns 70% of Bariq, and Bariq is earning 50% of the Jabal Sayid project, which holds the several 'company making' deposits. They therefore hold 35% of JS right??
> Has about 800m shares on issue @ .195 = $156m cap.
> (not holding)




Kennas - I think thats the situation ownership-wise.  100% T/O of vertex was confirmed in Dec06.  
Just found this Bariq website - though havn't had much chance to check it out yet.  
That project table looks pretty juicy huh  :emp:


----------



## Sean K (18 June 2007)

This broke resistance recently at 20 cents, which it then tested to confirm the break which now should be support. Another very positive ann from the Jabal Sayid Project, just out. Should end up being a substantial resource here, not sure what they're hoping for. Only issue has been the depth of the mineralisation, but this recent hole brings it a little closer to surface.

(not holding)


----------



## doogie_goes_off (18 June 2007)

The latest announced intersection is drilled straight down the ore body, grades are good but the drill intersection is a directors special IMO. Price rise today is not justified, however there is probable resource upsize, but very small tonnage at grades equivalent compared to MGO, FNT.


----------



## doogie_goes_off (18 June 2007)

Looks like they have plenty of other potential though - main ore body is fairly deep too - maybe lower grade will mean they could produce from block cave in an area above the high grade. Nice grades in the core, they need some tonnage.


----------



## Sean K (12 July 2007)

kennas said:


> This broke resistance recently at 20 cents, which it then tested to confirm the break which now should be support. Another very positive ann from the Jabal Sayid Project, just out. Should end up being a substantial resource here, not sure what they're hoping for. Only issue has been the depth of the mineralisation, but this recent hole brings it a little closer to surface.



The break definately confirmed. Now pushing 30 cents ish resistance and maybe on to all time highs, but need to wait and see. Had a great run in a pretty bullish environment, but 50% in a few weeks is worthy of applause. Breaking through 30 will put it onto a seperate path, but I'd expect resistance here. The indicators look OK.


----------



## jman2007 (21 September 2007)

Hi Everyone,

I've enjoyed reading this thread over the past few months, and I have a small stake in this company.

Sorry for causing people to pull their hair out again (that means you Kennas!), but I would like to confirm if possible, who is holding the other 50% interest in Jabal Sayid if Bariq own 50%, and ADV Group (who I believe have recently changed their name to *Citadel Resource Group*) are holding a 35% interest via their 100% ownerhip of Vertex?

EEK! I know it's a little bit of a brain teaser, but I think this is right so far.

However...

I have seen in the latest presentation (quote)..." ADV is completing the CMCI interest in Bariq, *immediate 50% interest of Jabal Sayid project with management rights, off-take rights etc*. 100% interest in 10 other Saudi Project". (end quote)

So CMCI _originally_ held part of the other share in Jabal Sayid?  Are there any other companies left to come out of the woodwork?

The Saudi venture as a whole seems to be gaining a bit of momentum, with a tentative timetable being postulated for early(iest) production from Lahuf in 2009 (115,000 oz, but def room for upgrade).  To be honest, many of the other projects are in the early exploration stage only, and have a long way to go.  Jabal Sayid looks likely to be the money shot though, with some fairly intense ore body modelling currently underway.  

All in all, not bad for a comapny that late last year looked like it would struggle to continue as a going concern.

Any techies out there willing/kind enough to have a crack at an analysis? 

As a relatively high risk spec stock, this has done well do hold up around the mid 20's I feel, although ADV's untested ability to deliver on key projects coupled with some geo-political risk will probably play a part here.

Thoughts?!...


----------



## BSD (21 September 2007)

Post the upcoming completion of the deal, ADS will own 50% of Jabal Sayid. 

They will have 953m ordinary shares, 38m convertibles and 145m options on issue post the deal for a fully diluted base of 1.136bn shares. 

At current price of 24c, the fully diluted cap will be A$323m

From the results at hand so far - Jabal Sayid looks like a monster. 

I cannot find another project with similar grades and intercepts. 

*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 (!)

They are 'targeting' 100 million tonnes at 1.5%-2.0% Cu with gold, zinc and silver credits. If they can achieve this goal, you are looking at a very low cost, long life mine. They note a 'potential' for 100,000tn of Cu/pa which would be a 20 year mine life. 

Very early days yet - they have a JORC so far of 46 million tonnes and plenty of drilling to do. 

There is already a decline down to 200+ metres. The 'gold caps' would also appear to offer an opportunity to make money in gold while getting down to the copper rich sulphides. 

You would assume once the structure is cleaned-up, the company will recieve more interest. 

Some of the other gold projects have some excellent potential too; but Jabal Sayid looks world class. 

Anybody got a copper/gold project remotely similar in size and grade to compare with?

Would love to discuss further...


----------



## jman2007 (22 September 2007)

Hi BSD

Yes, that's my interpretation of the ownership rights as well; 50% upon completion of the latest deal.  Early days, although yes, Jabal Sayid could be massive.

Re the zone 1 oxide cap, some of the intercepts appear fairly deep, may have implications for their planned open pit style of mining?

A virtual unknown company CGA Mining (CGX), have a sizeable reource (indicated 3.3M oz) at their Masbate project in the Phillipines, 30M available in cash reserves, long-lead items such as grinding mill secured and construction contract recently awarded to Leighton Contractors.  Au mostly hosted in quartz veins within host rock.  You might like to check them out, as far as I know no thread for CGX exists as yet.

Apologies to anyone offended by my going off topic on this thread.

Cheers
J


----------



## jman2007 (23 September 2007)

Correction,

there is currently an active thread for CGA Mining buried several pages back, I recommend you check it out.

Cheers!
jman2007


----------



## BSD (27 September 2007)

9 million shares turned over today

5 million shares crossed at 27c 

Closed at 28.5c

It would appear a seller has been removed and someone had $1.35m+ to spend on an emerging copper/gold play

We have another 'believer' it appears...


----------



## jman2007 (29 September 2007)

Yes I saw the trade volumes myself, although did not check the order status during the day, obviously some massive orders were going through though.  Conceivable that this might strike some resistance at 30c however.

Have just printed out their Annual report so will head home now and digest it tonight, if there are any juicy tit-bits I'll be sure to share them on this thread!

jman2007



BSD said:


> 9 million shares turned over today
> 
> 5 million shares crossed at 27c
> 
> ...


----------



## jman2007 (18 November 2007)

A couple of points re the upcoming extraordinary GM...

Basically this will be focussing on trying to get shareholder approval over the acquisistion of Vertex Group Middle East and the issue of another 382M shares and 40M options under the acquistion agreement.

Given that ADV Group already have 309M ordinary shares on issue, wouldn't the issue of another 382M seriously diliute the capital structure of the company (as raised by BDO Kendalls, the independent experts overseeing the acquisition)?  Also, Kendalls commented that since Vertex are solely responsible for funding Bariq, this could place additional strain on ADV during the development phase.

Thoughts?....


----------

