GW1 - Greenwing Resources

[YOUNG_TRADER]

Was only holding opies lately as I sold off shares while back


Sold opies at avg 12c

Paid 6c for em so not too bad


Good company though, may look to re-enter

I sold back in Dec because company was taking far too long to progress Que River cash cow project,

Also given the small stage build up the NPV of Que River was about half BSM's Mkt Cap, so I sold

BSM was great when first discovered at 15c/16c

It was still good at 30c with a booming Zinc price,

However since Que River is taking ages and the recovery rates and size of the intial production stages are alot smaller than I forecast as well as the fact that ZFX JV exploration hasn't been doing much it doesn't look as attractive anymore

Good luck to all

 

[Halba]

I'm out of BSM today as well for a tidy profit.

cheers all!

 

[doogie_goes_off]

BSM holds a large ground holding in the strategic Mount Read Volcanics, they have recently identified large Ni in soil anomalies in Western Tas aswell. The company may be a little overstretched but the potential is there for an announcement to trigger a good run. ZFX have a JV with them that is testing what is arguably the best remaining massive sulphide targets in the northern Mount Read Volcanics. I think that if this slides to 30c it is a reasonable value and will likely buy in, however I will also think I will be watching like a hawk for an announcement on any of their JV drill holes. I advised someone that it was a good buy at 16.5c, why don't I listen to my own advice???

 

[cuttlefish]

Surprised that this company doesn't get more attention - be curious if others have thoughts on it.

They've announced today that the trial parcel of queue river ore has been succesfully processed by ZFX, so they should be able to start mining reasonably soon. The first stage will generate quite a good profit vs market cap, and there's a lot more ore there in the total resource estimate. Could be a little complex to mine, but also likely that they'll find more pockets in the area.

They've got a lot of other promising prospects and potential projects as well, and tassie is a pretty prospective area generally. Seems that if they manage to generate a bit of their own cashflow they should be able to start to ramp up their exploration and development in other areas and start to leverage their true potential. (gold, zinc, some interesting nickel anomolies in the same area that AGM is, ZFX joint venture, etc.)

 

[doogie_goes_off]

More hits like this could see them define a significant new zone at the old hellyer mine. Plenty of room at 200m spaced drill holes, nice rise of 13% on the back of this prelim announcement.

 

[doogie_goes_off]

And now for something completely different, I ignored BSM at my own peril on the October stck tipping comp and it has broken out on a nice long high grade base metal intersection.

 

[doogie_goes_off]

This is actually worth reading, maybe I should put it on breakout alerts.

-> 57.5 metres at 9.2% zinc, 4.7% lead, 94 g/t silver and 2.89 g/t gold

That's impressive and sellers have dried up a bit, over 1.5M sahres traded.

 

[cuttlefish]

yeah I agree - worth a read - this is a nice find. Will need some more drill holes to get the scale of it - very nice grades circa 14% Zn equiv, with really strong silver and gold credits. They've also recently starting producing from que river with the first ore shipped to ZFX plant recently.

Market cap circa $40m at .50c - not much given that the que river mine will return positive cash flow and they've got heaps of potential for more discoveries like this one.

If INL weren't around I would think ZFX would be all over this Co. Thinly traded and tightly held though so be hard for them to go after.

 

[Taurisk]

yeah I agree - worth a read - this is a nice find. .
>>Market cap circa $40m at .50c - not much given that the que river mine will return positive cash flow and they've got heaps of potential for more discoveries like this one<<.

If INL weren't around I would think ZFX would be all over this Co. Thinly traded and tightly held though so be hard for them to go after.

Hi - something's brewing here, first T/H, now suspended. Do you think t/o bid likely?

Cheers
Taurisk

 

[doogie_goes_off]

Resouce base doubled (adds to nearby Que River resource) with initial Hellyer Resource and further placement of 5.4M. It remains to be seen if they can get a decent cash flow but it's likely given the Que River operation is already trucking ore to Zinifex. By my rough calcs there's $675M worth of ore there, just a matter of getting at it. If a ~1Mt resource could be defined at the 'southern barite zone' at Hellyer this may well be dividend producing company in the following financial year. The market is really showing BSM some respect today.

 

[cuttlefish]

I hope they generate some decent cash flow soon because its pretty annoying issuing large quantities of stock below market via placements - with luck this will be the last one.

Seems undervalued for the resource base given that they are in production. But there is quite a bit of commodity price sensitivity in the project as well from what I can see.

 

[doogie_goes_off]

BSM is back on my Radar (Note - I already hold). It can only be a matter of time before they calculate an inferred resource for the Fossey Zone (The deposit previously known as the Southern Barite Zone). I am now watching for any downward movement for accumulation opportunities.

 

[doogie_goes_off]

Cuttlefish, if you still follow this one, you will get an indication that cash flow has gone positive from Que River operations to the approx tune of $1M a month with good forward hedge on Zn/Pb price, also has significant Au/Ag/Cu credit which holds up sale prices.

Accumulation time has come for me, 17c is close to the 16.5c I once told a mate they were 'too cheap' and he got on for the ride to about 46c. Not much else has fundamentally changed except the metal prices, so I'm expecting it to creep back up.

 

[doogie_goes_off]

The Fossey Zone at the Hellyer Project is really showing some go now, plenty of intersections with additional copper,gold and silver and good continuity. I am expecting a good resource announcement by Q4, this should see BSM turn around. Metallurgy will presumably be same as the old Hellyer mine and all infrastructure for processing and the mining lease still exists as far as I am aware. I hope we get a couple of cents today because these guys deserve a break (or breakout?).

Diamond drill hole HLD969 intersected 20.0 metres at 8.7% zinc, 5.5% lead,
0.3% copper, 44 g/t silver and 1.05 g/t gold from 174.0 metres downhole.

 

[doogie_goes_off]

Well I broke some fundamental trading rules and began accumulating on a downward trend, then finally Bass posts their maiden profit for a $1.8M 'suprise' for a little turn around. This without production from the last 2 months at Que River Mine which continues to produce above scheduled grades. The Fossey Zone has had more positive metallurgy which should see better recoveries than the old Hellyer operation and the Resource Estimate (presumably inferred, however I'd have thought indicated resources with metallurgy and grade continuity was possible) is due early this week. I'm hoping BSM gets back to around my average buy price at 14c, however I gues there will be a few more 'suprised' people that get onboard when the resource base of BSM doubles (that's a guess - not a fact - but it wouldn't be a suprise)

 

[doogie_goes_off]

Well I'm glad there's some positive news to keep my long term investment afloat, Bass have closed out their hedge book and have an extra $3.2M in the account. You can hardly blame them for grabbing some cash. I hope the market likes this and I can go >10c again or otherwise I will look very silly in the stock tipping comp!

 

[Sean K]

Doggie, still holding on?



MC smashed down to just $10m ish and it has $7m in the bank.....

Has an awesome land portfolio in a known development corridor, and it's actually turning a profit...

Obviously, market factors crushing it.

Once again have to ask the question, is this a significant correction in the market in the long term industrialisation of Chindia, or the end of the world? How long before things turn around? 1 year? 5 years?

The resource companies with money in the bank and known assets might do ok when (if) things turn about. This may be one spec that does.

 

[doogie_goes_off]

Holding about half my original stock. I believe BSM may still turn around, zinc price has crept back but stockpiles are significant with not much sign of demand, so these ones are in the bottom drawer so to speak. As long as OZL keeps buying Que River ore then the cash flow will remain positive so that there is money for exploration and possibly some for development of the Fossey Zone.

 

[Sean K]

Some in the market thought this was a good buy.

Highlights
• Binding agreement to acquire from Intec Ltd the Hellyer Mill, associated infrastructure, tailings resource and Mining Lease for $4.0M plus a Processing Royalty of $2.50/tonne processed (capped at $5.0M).
• Hellyer Mill is a 1.5mtpa flotation concentrator within 1 km of Bass Metals’ Hellyer Mine project resources and well suited to treat its polymetallic ore types to produce high value metal concentrates.
• The acquisition will be funded from cash reserves which currently stand at $8.0 million and is underpinned by expectations of continued strong cashflow from the Que River mine well into 2009, subject to commodity price and exchange rate movements.
• This is a transformational acquisition for the Company; Bass Metals will now evaluate processing ore from a variety of its projects, such as the Hellyer-Que River mineral resources and more regional prospects as well as 3rd party ores, to maximise the revenue potential of this modern, well maintained, comprehensive mineral processing facility.


Any idea of the replacement costs for such an asset doggie?

 

[doogie_goes_off]

$4.5M interim net profit equivalent to EPS of 4.3c, Cash reserves $7.8M, Net backing per share of $0.26, Increase in ore reserves AND set to buy the Hellyer Mill at a below market rate - Looking very promising for people who hold (like me)