GCR - Golden Cross Resources

[dubiousinfo]

I am still waiting to hear back from GCR re whether share issue is pro rata or up to $5,000 per shareholder.

Judgeing by the share price movement others are thinking the same thing.

If the later as it seems, and all 2855 shareholders take up their full entitlement of 133,333 shares the no of shares will rise from 540.5m to 921.165m and not considering any extra value for the extra cash, based on the market cap prior announcement @ 4c/ share, the share value post issue looks more like 2.3c/ share.

The issue is up to $5,000 per shareholder. The chances of all holders taking up their full entitlment is virtually non existant. However, if that were to occur the company would raise $14mil and I imagine the board would be over the moon.

The more likely scenario is that around 50mil to 100mil shares will be issued raising around $2mil to $4mil which will be going into the planned drilling program.

Not currently holding but on my watchlist.

 

[Whiskers]

The issue is up to $5,000 per shareholder.

Yeah got that now dubiousinfo

The chances of all holders taking up their full entitlment is virtually non existant. However, if that were to occur the company would raise $14mil and I imagine the board would be over the moon.

The more likely scenario is that around 50mil to 100mil shares will be issued raising around $2mil to $4mil which will be going into the planned drilling program.

Agree not likely to get 100% subscription, but it's a broad range from nothing to $14m.

The Cullerin JV with TRO drill results and labrador soil tests are due soon. I thought they would have waited until then and a better share price, since they are not desperate for cash.

 

[Whiskers]

Assay results are in for the cullerin JV with TRO. GCR has not made an announcement yet, but the following is extracted from the TRO quarterly report.

TRO says the results from this initial shallow reconnaissance programme significantly extended the identified near surface mineralisation which will be further evaluated by deeper drilling in the near term.

Several holes ended in mineralisation.

The assays are four meter composites. The one meter splits are still awaited.

3. EXPLORATION
The short term objective of the regional exploration programme remains to test targets that through success will potentially create significant value for the benefit of shareholders rather than incrementally add to existing resources.

3.1 Woodlawn Regional
During the quarter exploration activities of the Company within the Woodlawn region included:
- Reverse circulation drilling within the Cullarin Joint Venture areas (EL 6292and EL 6686);
- Mapping and reconnaissance in the south west of EL 6493; and
- Mapping and reconnaissance sampling in EL 6611.

EL 6292 Cullarin Joint Venture

Within the Cullarin Joint Venture area a total of 474 m of RC drilling (in 10
holes) was completed.

The area has potential for large low grade gold-base metal deposits as well as smaller tonnage higher grade zones. The mineralisation appears to be gold dominant in the south and base metal dominant to the north. There is some evidence that the main gold zone may plunge to the north and that it is enveloped by a low grade base metal +/- Au halo.

The drilling was targeting shallow up dip, fault offset and strike extensions to mineralisation intersected in drilling by previous explorers. The mineralisation is contained within a package of variably silica +/- sericite altered felsic volcanoclastics. Disseminated pyrite and lesser base metal sulphides are associated with the alteration.

Several holes from the recent program penetrated bedrock and indicated the target horizon is present up dip of holes drilled by previous explorers. The drilling also partly confirmed the interpretation of faults disrupting the mineralisation.

Assay results are summarised in the attached table. These results are based on 4 m composites (or part thereof) obtained by the spear sampling method. Tri Origin’s QA-QC procedures indicate that results are within acceptable limits of accuracy and precision. Analyses for selected 1 m samples are awaited.

Several of the holes ended in mineralisation.

The results from this initial shallow reconnaissance programme significantly extended the identified near surface mineralisation which will be further evaluated by deeper drilling in the near term.

 

[Whiskers]

GCR drilling program on their fully owned NSW prospects at Canbelego underway. Substantial new tenement applications adjoining too. (ASX Announcement 7th November 07.)

Major Drilling Program Commenced at Canbelego near Cobar

A major drilling program has commenced to test three of GCR’s 100%-owned properties in the Cobar district of western NSW. The initial program is for 4,700m, with 16 holes for 2,500m planned at Canbelego, 1,750m within the extensive Rast properties south of Nymagee, and a 450m hole to test a unique magnetic anomaly at Kilparney.

The first holes will test the anomalies generated by the recently completed IP survey within the Canbelego properties (see Figures 1 - 3), with the first hole commenced on 1 November to test the C2A anomaly to 250m. Drilling is underway...


Drilling Program
Drilling targets have been delineated at the following prospects at Canbelego, to be tested by 2,500m of RC percussion drilling (see Figure 7):

Hardwicks/Boppy Blocks: 5 x 100m holes to test down-dip/along strike from previous drilling (GCB88: 38m at 3.4 g/t gold at Hardwicks).

Avoca: 1 x 100m hole to test a geological/geochemical target for Mt Boppy-style (12 g/t gold) mineralisation.

C2A: 1 x 250m hole to test combined IP/geology target. Major IP anomaly showing broad zone of strong conductivity interpreted to be either pyritic black shale or Carlin-style mineralisation.

Native Dog: 2 x 150m holes to test combined IP and geochemical targets.

Native Cat: 2 x 150m holes to test IP targets.

Kopyje Area: 6 x 150m holes to test IP targets in the Pipeline Ridge, Glenn’s Hill, Camp Hill and Boundary prospect areas. Previous best hole at Pipeline Ridge returned 9.2m at 4.27g/t gold, 102 g/t silver, 1.75% copper, 2.47% zinc from 84m, plus 11.5 m at 3.12 g/t gold, 69 g/t silver from 126m.

Geweroo: 1 x 150m hole to test best IP and soil geochemistry target.

 

[Uncle Festivus]

Announcement out today -

Assay results for soil samples collected at the Power prospect at GCR’s 100%-owned Copper Hill porphyry copper-gold project near Molong, NSW, have been collated and interpreted.

GCR’s Managing Director, Kim Stanton-Cook, said today:
“The Power prospect, with semi-coincident geochemical and IP anomalies, has clear potential to host high grade mineralisation. The Power prospect lies outside the low grade Copper Hill Intrusive Complex and may represent a new style of copper-gold mineralisation similar to that at Newcrest’s Ridgeway deposit.
Success at the Power prospect would add substantially to the resource base at Copper Hill.”

 

[Whiskers]

Is anyone taking up the Share Purchase Plan, or can you see better opportunities elsewhere in the short term as I am considering?

 

[Whiskers]

Announcement by Calibre Mining the Canadian owner of Cybele Resources (Australia) that it has started it's phase two drilling program of 2,000m expected to be completed by end of year.

Some more reconnaissance rock chip assays also out soon.

The first hole was collared on 20 November 2007. A second drilling rig will arrive at the
property during November to accelerate the drilling and ensure completion of the
program during 2007. See Figure 1 for map of drill hole locations.
Calibre Mining is also in the process of completing property-wide 1:10,000 scale
geological mapping and reconnaissance rock sampling. The mapping to date has
identified several previously unknown alteration systems and hydrothermal breccias
associated with small porphyry intrusions in the south-eastern part of the property.
These features appear to lie on the same northwest-trending structural corridor that
hosts the Cargo prospect. Assay results are awaited from reconnaissance rock chip
sampling of these zones.

 

[Uncle Festivus]

This is like watching paint dry! Testing my patience now, but then....

Recoverable metal production from Copper Hill, at current copper and gold prices, is estimated to be worth $US1.9 billion, using a mining case study of 8 million tonnes per year which, at an estimated 85% copper recovery and a 60% gold recovery, would produce 240,000 tonnes of copper and over 400,000 ounces of gold; at 27 November 2007 prices of US$6,600 per tonne of copper and US$820 per ounce of gold, the total value is US$1.9 billion.​

 

[refined silver]

Whiskers: yes bought some in the SPP but then sold some of my original holding.

Agree a most frustrating stock - had it for 3 yrs and done nothing. Yet with the resources they have, good cash, good tenements, lots JV/royaltied out, with lots of drilling going on, at some stage they have to pop like popcorn.

When gold gets into its next leg up, hopefully that will remove viability questions over their main project and then there should be a significant re-rating of the price.

 

[Trader Paul]

Hi folks,

GCR ... expecting 3 positive cycles next week,
which should see a bounce off the lows, that we
should see over the next few days (low .03s???):

12122007 ... positive spotlight on GCR ...

14122007 ... positive news expected here

21-24122007 ... negative cycle ... finance-related???

Expecting early-January 2008 to be mostly negative,
then some positive news expected, around 22012008.

have a great day

paul



=====

 

[Whiskers]

A couple of good potential assays reported below today. Early days yet, but 2m @ 19.1 g/t has got to be worth a closer investigation.

Originally Posted by Trader Paul:
12122007 ... positive spotlight on GCR ...

Spot on Trader Paul.

Originally Posted by refined silver:
Whiskers: yes bought some in the SPP but then sold some of my original holding.

I refrained... looks like I should still be able to get some at .037 or less in market.

West Wyalong Drilling Intersects New Gold Occurrence
Exploratory drilling in a wheatfield seven kilometres southeast of West Wyalong township
has intersected what may be a previously unmapped gold reef.

Three vertical RC holes were drilled in the wheatfield to test anomalous gold and copper
geochemical anomalies surrounding an interpreted intrusive centre within a large
(21 milligal) gravity anomaly (see Figure). One hole, APG003, intersected 2m at 19.1 g/t
gold from 106m downhole.

Holes were also drilled under old workings on five gold reefs, looking for possible depth
extensions. This strategy was successful at the Mallee Vale reef in the north of the
property, with an intersection of 4m at 6.11 g/t gold from 28m.
The Pine Ridge reef, in the west of the property, was also intersected, returning 2m at 1.48
g/t gold from 36m.

Follow-up drilling of these intersections is scheduled for 2008.
The West Wyalong goldfield to the west of the property produced 445,700 ounces of gold
between 1894 and 1920 but has been inactive since 1920.

The drilling was undertaken by Argent Minerals Limited under a farm-in agreement with
GCR. Argent has the right to earn a 70% interest in the West Wyalong property by
spending $1,030,000 by 1 June 2013. Argent is aiming to list on the ASX early in 2008.

 

[Whiskers]

Don't like the look of this chart.

Wedge corresponding roughly with two year decline in price looks like coming to a head soon. My first thought was surely it has to break out upwards... then I had a look at the money flow.

Geees if they don't post some substantial news soon, this might be trading in tenths of cents before two much longer.

I hope you're right Trader Paul.

Expecting early-January 2008 to be mostly negative,
then some positive news expected, around 22012008.

have a great day

paul



=====

 

[Whiskers]

GCR's kempfield silver offshoot, Argent Minerals Limited prospectos closes 7th March 08.

http://www.argentminerals.com.au/

 

[Uncle Festivus]

We can only hope Argent is as successful as GCR has been - doh!!! .
Loosing patients with this mob .

 

[Bushman]

Any thoughts on the rock phosphate potential of GCR.

Per Dec 07 ann, they have entered into a 20% farm-out arrangement with Legend Int over the following Mt Isa holdings -
EPM 14905 'Quita Creek'
EPM 14906 'Highlands Plain'
EPM 14912 'Lily & Sherrin Crk'.
EPM's are prospective for phosphate and uranium. Resource tagret is 200mt phopshate rock at grades from 13.4% to 18.7% P2O5. Economics of the project is 'enhanced' by the presence of acid producing facilties and excellent rail/road infrastructure linking Mt Isa and Townsville.

Why did they 'farm-out' 80% of the project to Legend Int?

Anyway at 3.1 c, the mkt cap is below $20m. Could be a good earner once Legend ann their intention to start drilling the Mt Isa properties a la MAK. Interested in peoples thoughts on this.

Note also have gold and base metal prospects.

 

[Uncle Festivus]

Anyway at 3.1 c, the mkt cap is below $20m. Could be a good earner once Legend ann their intention to start drilling the Mt Isa properties a la MAK. Interested in peoples thoughts on this.

Note also have gold and base metal prospects.

Hi Bushman,
I really have to wonder what it will take to get this one on fire! With all the fingers in the pies, at least 2 have real potential, yet it still languishes @ 3c. We need a decision or at least a commitment to start mining something I think .

 

[YOUNG_TRADER]

Hey guys,

Just a quick post

Keep an eye on GCR I have bought a few shares over the last few days from around the low to mid 3's and was hoping to buy more but it seems to be getting away now so beofre it does a heads up for all ASF'ers

Its current mkt cap is like $20m

The company appears well funded and has about 10 projects on the go, most of which it is free carried through,

The 2 that interest me the most are Copper Hill where the NPV is like $650m = $1 a share although huge funding issues so maybe 10% = 10c

The other is the Mt Isa 500Mt@15% Phosphate project, GCR have farmed out 80% to Legend International who appear to be a major player www.lgdi.net

I have a rough value on this at $40m = 6c+ a share


More research to follow soon

also see www.goldencross.com.au

 

[Gekko]

Hey guys,

Just a quick post

Keep an eye on GCR I have bought a few shares over the last few days from around the low to mid 3's and was hoping to buy more but it seems to be getting away now so beofre it does a heads up for all ASF'ers

Its current mkt cap is like $20m

The company appears well funded and has about 10 projects on the go, most of which it is free carried through,

The 2 that interest me the most are Copper Hill where the NPV is like $650m = $1 a share although huge funding issues so maybe 10% = 10c

The other is the Mt Isa 500Mt@15% Phosphate project, GCR have farmed out 80% to Legend International who appear to be a major player www.lgdi.net

I have a rough value on this at $40m = 6c+ a share


More research to follow soon

also see www.goldencross.com.au

Looks interesting YT. One brief question. How did you get those figures for the projects in terms of EV.

 

[YOUNG_TRADER]

Well for Coppr Hill back in March last year the company released some scoping results

It showed a potential NPV of $900m using lower spot prices, using current spot prices the projects economics would no doubt be greatly improved,

An important thing was that the $300m CAP EX was no taken into consideration so this has to be taken away from the NPV

Now the reason I prefer to use 10% is that given the CAP EX requirement (which is large) it muct be discounted accordingly,

Still even attributing only 10% I get 9,5c or almost 10c value to GCR

 

[Gekko]

Well for Coppr Hill back in March last year the company released some scoping results

It showed a potential NPV of $900m using lower spot prices, using current spot prices the projects economics would no doubt be greatly improved,

An important thing was that the $300m CAP EX was no taken into consideration so this has to be taken away from the NPV

Now the reason I prefer to use 10% is that given the CAP EX requirement (which is large) it muct be discounted accordingly,

Still even attributing only 10% I get 9,5c or almost 10c value to GCR

Yep I get how you got Copper Hill figures but its 9.5c using 1/10th value not 10c right (just being accurate I guess)

Also how about Mt Isa 6.3c value??????