GRY - Gryphon Minerals

[Sean K]

Yes, 6c would have been nice. Not going hard at 25 breakup was a mistake, but have a decent holding now from around 30.

Indecision yesterday creating a potentially bearish evening star doji. Don't want to see a long red candle today.

Or, that could just mean the opportunity will be coming to enter. Some strong support lines there, but a fair way off current position. That's the problem when things go vertical, not much support on the way back down.

Seems to be some upside with exploration here. I didn't even realise they were drilling Fourkoura.

Current resource is 90k oz au on 500 x 100 ish zone to the north. Looks like that is being drilled out/confirmed with possible additions to the resource at depth.

To the south about 1k away is where more of the latest drill holes are 3 paralel zones 8 - 20m thick @ 2.5 - 7.8 g/t.

There is an untested area of 700m now which you would reasonable expect to contain similar mineralisation, all under 100m. So, it will be at least 1000m strike, still open both ends. If the original JORC was just on the top 4-500m section then we could be looking at 200k ish minimum, with no further extentions to the strike.

On Fourkoura they state:

The Fourkoura Prospect is only 7 kilometres from the Nogbele gold deposit and is located on the intersection of a major shear corridor and a zoned dolerite intrusive believed similar in style to the Golden Mile dolerite in Western Australia. A large historical soil geochemical anomaly extends over 2500 meters in strike length with several peak values over 1000ppb gold that coincides with the dolerite. Gold mineralization is associated within single and multiple sub parallel shear zones with intense silica, magnetite and pyrite alteration and quartz veining within a felsic intrusive and the dolerite intrusive.

I don't think the current drilling program is intended to cover the entire strike length so it may not be included in the next resource upgrade. Still, this drilling alone could take them over the 1m mark, and then add in all that drilling at Nogbele yet to be included.

In some ways I hope it does pull back for you jman, and I would certainly add more on a decent pullback, but then again....

 

[jman2007]

Yes, 6c would have been nice. Not going hard at 25 breakup was a mistake, but have a decent holding now from around 30.

To the south about 1k away is where more of the latest drill holes are 3 paralel zones 8 - 20m thick @ 2.5 - 7.8 g/t.

There is an untested area of 700m now which you would reasonable expect to contain similar mineralisation, all under 100m. So, it will be at least 1000m strike, still open both ends. If the original JORC was just on the top 4-500m section then we could be looking at 200k ish minimum, with no further extentions to the strike.

In some ways I hope it does pull back for you jman, and I would certainly add more on a decent pullback, but then again....

Well I'm in now @ 45c, so let's see what happens. I'm reasonably happy to have given up at least some potential gains, as GRY finally seem to have demonstrated the potential of their tenement holdings and de-risked the project somewhat. I really should have kept a closer eye on GRY tbh, I remember we posted on them ages ago when they were just plodding along, and poking a few drill holes here and there. Perhaps the MD set off a bomb underneath them though, hence the steady flow of good news this year. :

That 700m untested zone at Fourkoura was one of the main reasons behind my decision to enter actually, barring some kind of bizarre geological event, that zone should also host some reasonable mineralisation. Looking good for the next 6 months on the news front.

 

[LeeTV]

I grabbed a small parcel today @ 46c, better late than never eh?

ASX Announcement and Media Release
Monday, 21 September 2009
Gryphon Minerals announces 1.1 Million oz Gold
Resource: Banfora Gold Project, Burkina Faso - West Africa
Highlights
http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=00989782

JORC inferred resource estimate on Nogbele & Fourkoura deposits at the
Banfora Gold Project of 14Mt @ 2.4g/t for 1,100,000 oz gold.
Exceeding 1 Million ounce milestone a major achievement by World Gold
Council statistics.
Mineralization remains open at depth and along strike at both Nogbele and
Fourkoura deposits.
The resource is shallow with 90% above 100 meters depth.
Gryphon aims to establish a multi‐million ounce gold district by targeting

 

[Sean K]

This is out earlier than expected and will not include the most recent drilling results so look forward to more upside, which may be substantial on those drill results we saw. Not exactly sure what has been included at this point.

The market also agrees with this comment according to current MC to oz JORC as it's more than double the average. Market is factoring in 2m plus I think.

Gryphon views this resource as an interim estimation with significant potential to define further shallow ounces and potentially a multi‐million ounce gold district from the company’s aggressive on‐going drilling programs at the Banfora Gold Project.

2.4g/t is very respectful also.

Gryphon Minerals will undertake a 10,000m RC/DD infill and step‐out drill programme at Nogbele and Fourkoura over the coming weeks which will continue to target shallow high grade gold mineralisation (≈100 meters vertical depth) outside of the current defined resource estimate. Further drill results will be made available at the earliest opportunity.

To date the total resource estimate is located on only two target areas, the only areas to date to have received any RC/DD drilling. The Company intends to RC/DD drill test with 10,000m a further seven high priority target areas within a 15 kilometre radius of the Nogbele deposit over the coming weeks. The Company will also undertake a reconnaissance exploration focussed on new, previously untested regional targets.

The Company believes that the drill results released to date confirm the potential for the Banfora Gold Project to host world class gold mineralization similar to other major deposits in West Africa.

That means 4m oz au plus, I guess.

Fourkoura is up to 200k already which is more than I thought.

 

[jman2007]

The market also agrees with this comment according to current MC to oz JORC as it's more than double the average. Market is factoring in 2m plus I think.

2.4g/t is very respectful also.

Gryphon Minerals will undertake a 10,000m RC/DD infill and step‐out drill programme at Nogbele and Fourkoura over the coming weeks which will continue to target shallow high grade gold mineralisation (≈100 meters vertical depth) outside of the current defined resource estimate. Further drill results will be made available at the earliest opportunity.

To date the total resource estimate is located on only two target areas, the only areas to date to have received any RC/DD drilling. The Company intends to RC/DD drill test with 10,000m a further seven high priority target areas within a 15 kilometre radius of the Nogbele deposit over the coming weeks. The Company will also undertake a reconnaissance exploration focussed on new, previously untested regional targets.

The Company believes that the drill results released to date confirm the potential for the Banfora Gold Project to host world class gold mineralization similar to other major deposits in West Africa.

That means 4m oz au plus, I guess.

Fourkoura is up to 200k already which is more than I thought.

Nothing wrong with that grade at all, in comparison it is double that of PRU's Ayanfuri Project which itself generates a healthy IRR.

I thought the Ann was a good one, there is clealry going to be extensions along strike and and depth to the known Resources, so a 2Moz eventual outcome definitely isn't out of the question. What is pleasing is that they don't sound like they'll resting on their laurels, but plan to keep feeding the market a steady flow of (hopefully positive) news.

 

[Sean K]

Decent correction underway. All else being equal you'd expect a bit of support across the 35c ish zone. A little bit at the mercy of the market and POG of course.

From the 1.1m JORC upgrade ann they state that they're into a 20,000m drilling program.

Gryphon Minerals will undertake a 10,000m RC/DD infill and step‐out drill programme at Nogbele and Fourkoura over the coming weeks which will continue to target shallow high grade gold mineralisation (≈100 meters vertical depth) outside of the current defined resource estimate. Further drill results will be made available at the earliest opportunity.

To date the total resource estimate is located on only two target areas, the only areas to date to have received any RC/DD drilling. The Company intends to RC/DD drill test with 10,000m a further seven high priority target areas within a 15 kilometre radius of the Nogbele deposit over the coming weeks. The Company will also undertake a reconnaissance exploration focussed on new, previously untested regional targets.

So, trying to extend the current deposits, and discover new ones.

The top priority targets are probably:

Ouahiri
4m@12g/t
8m@4g/t
7m@3.8g/t

Bassongoro
4m@10g/t

Muddi
24m@2.5g/t
Rock chips +150g/t

Kassangara
1m@8g/t
5m@1.8g/t

Samavogo
8m@2.5g/t
16m@1.4g/t
Rock chips +85g/t

You would have to be confident that one of these will turn into a few defined ounces, if not all of them. All within 15km of Nogbele. Could turn into a decent sized gold camp.

 

[swm79]

i dont know if they're listening to you out there kenna... up another 2c today.

or given the prospects, maybe they are.

would have liked to have seen this one taking shape to get on with you, but i think i missed the boat.

However, if POG keeps going down hill we might have another buy in opp.

RSI has dipped under 50 with a MACD cross over.... maybe 35c doesnt look too far off.

 

[Sean K]

Hi swm,

Yes, just paused a bit around some support as shown, but it's pretty week imo. 35, looks better to the downside. I'll be considering adding down around those levels. Interesting rise in volume recently.

Funnymentally obviously I see them being a longer term producer with their current resources and future potential clear enough. Judging entries on the fundamentals is a matter of guestimating what value they should be now and what they might be in the future. On their current resources they are trading at $53 an ounce EV. This is about double most junior explorers. Why should they command a premium? Obviously the market's factoring in double the resources in the future. Will they get 2m oz au? Or, 4m oz au? I'm sure 2m is possible, and with another decent discovery perhaps 3m. 4m might be a stretch. On 3m oz au, their EV to oz au (on current shares on issue and cash) would be $19.5. For an advanced explorer going into development, this would be crazily undervalued. At that stage, they should still command $50 an ounce I think which would give them a sp of about 92c. Of course, there will be more capital raisings between now and then, so need to factor in some dilution.

Having said that, I understand any reluctance of entering something that has seemingly run so far so quickly from the 6c lows. It's why I haven't completely committed yet either, and why I watched EXT run from $1.00 to $10 without buying it. lol

One thing we shouldn't discount with GRY is a takeover from possibly a West African player. LGL is obviously on the hunt, but Randgold is developing their Tongan Project 30km to the south. So, it's practically trucking distance from Banfora. Not sure of any spare capacity though, and it's in another country....

 

[swm79]

Hi swm,

Yes, just paused a bit around some support as shown, but it's pretty week imo. 35, looks better to the downside. I'll be considering adding down around those levels. Interesting rise in volume recently.

Funnymentally obviously I see them being a longer term producer with their current resources and future potential clear enough. Judging entries on the fundamentals is a matter of guestimating what value they should be now and what they might be in the future. On their current resources they are trading at $53 an ounce EV. This is about double most junior explorers. Why should they command a premium? Obviously the market's factoring in double the resources in the future. Will they get 2m oz au? Or, 4m oz au? I'm sure 2m is possible, and with another decent discovery perhaps 3m. 4m might be a stretch. On 3m oz au, their EV to oz au (on current shares on issue and cash) would be $19.5. For an advanced explorer going into development, this would be crazily undervalued. At that stage, they should still command $50 an ounce I think which would give them a sp of about 92c. Of course, there will be more capital raisings between now and then, so need to factor in some dilution.

Having said that, I understand any reluctance of entering something that has seemingly run so far so quickly from the 6c lows. It's why I haven't completely committed yet either, and why I watched EXT run from $1.00 to $10 without buying it. lol

One thing we shouldn't discount with GRY is a takeover from possibly a West African player. LGL is obviously on the hunt, but Randgold is developing their Tongan Project 30km to the south. So, it's practically trucking distance from Banfora. Not sure of any spare capacity though, and it's in another country....

i know the feeling of seeing them run and not getting in... TRUST me! i let MEO run over 400% before i got in.... not to mention some of the others!... KAR!!!!!!!!!!!!!!!!!!!!!

i've been following this one with some interest for some time now and i think, fundamentally, they do have a nice little set up. although like you said ATM they are running double their peers... I think a lot of people got caught up in the gold rush over the last few weeks - which has sort of quietened down now a bit - which is what i've been waiting for - but the USD isnt helping us AT ALL!

and yes i agree that Banfora may well be a bigger elephant than first thought.... there are a lot of good things GRY have got going for them - nearology to LGL and Randgold, Newmont on the books... etc.

as i see it i think they'll touch 35c and imo they may even breifly slip lower... that will give me a good entry.

my problem is i'm fully invested and waiting for some catalysts to pan out before i take some of my skin out of the game

so once again, this may just be another one that slips away.

 

[craigj]

there seems to be a lot of speccy stocks like this that are forming very similar charts
GRY after a good announc last week has retraced 15% like many others
seems like the small caps that have run strongly are having a retrace
GBG CNX FML to name a few

 

[Sean K]

I'm surprised that minor support at 40 ish held. I was actually hoping for more of a pullback to pick up a few more. He who hesitates is lost. POG can't keep runing away though, and neither can this. Fundamentals should catch up eventually and the current EV does not really represent it's current assets imo. Looks a bit overdone. Although, if POG keeps going, I suppose sentiment will keep pushing money into the market chasing the likes of these stocks.

 

[Sean K]

Trading Halt for a capital raising.

But, they raisied $10m in April and got a $2m donation from IFC in May.. What the? They should have $8m plus in the bank.

Maybe best to strike while the iron's (gold) hot?

On a 2-3 week VWAP should be covered at about 54c a share, which looks good to me.

Let's hope no major discount.

 

[Sean K]

40m @ 50c a share is OK I suppose.

Puts them in a pretty neat cash position for the next year or two.

Looking forward to some drilling results which should be momentarilly.


ASX Announcement and Media Release
Thursday, 26 November 2009

Gryphon Minerals Raises $20 Million to Advance Exploration at Banfora Gold Project Gryphon Minerals Limited (ASX code: GRY) is pleased to announce that it has received firm commitments for 40.0 million shares at $0.50 per share to raise gross proceeds of $20 million (Placement). The Placement was strongly supported by new and existing institutional investors including a number of UK and North American based international resource funds.

 

[Sean K]

Taken them bloody ages to get some drill results out from the current program and they're not that exciting, but ok. Shows the continuity of the deposits I suppose. Disappointed the ann didn't come with a map of the drill holes which would have shed some light on where they're actually drilling...

ASX Announcement and Media Release
Wednesday, 24th February 2009

Ongoing Drill Results include -
11m @ 4.42g/t, 12m @ 3.87g/t & 16m @ 2.81g/t Gold, Banfora Gold Project, Burkina Faso

Highlights
 Drilling intersects high grade gold mineralisation at the Nogbele & Fourkoura Gold Deposits (Refer to tables and map).
 Mineralisation is shallow (<100 meters depth) and open at depth and along strike.
 Drilling will continue to target shallow gold mineralization at Nogbele & Fourkoura as well as new satellite targets at the Banfora Gold Project.
 Further results from the ongoing drilling will be made available at the earliest opportunity.

 

[Sean K]

Some more good drilling results a few days ago, but I can't see them accounting for the break up of GRY the past few days. What a performance. Something going on perhaps with that volume.

 

[Sean K]

GRY being an absolutely outstanding investment the past couple of years. Punching way above it's weight, with the expectation of a massive resource base looming obviously.

Looking expensive on an oz to au ratio, which reflects the markets optomism.

Now taking a substantial stake in RNS. No idea why. Shouldn't they just concentrate on getting to production? I hope they don't end up being one of those explorers that just keep exploring. Get to production FFS!

 

[Sean K]

Decent correction underway. All else being equal you'd expect a bit of support across the 35c ish zone. A little bit at the mercy of the market and POG of course.

From the 1.1m JORC upgrade ann they state that they're into a 20,000m drilling program.

So, trying to extend the current deposits, and discover new ones.

The top priority targets are probably:

Ouahiri
4m@12g/t
8m@4g/t
7m@3.8g/t

This one should add significant resources.

Going to be a multi million ounce gold camp you'd expect with these ongoing exploration results.

ASX Announcement and Media Release
Thursday, 17th June 2010
Drill results from a new major regional target:
Include 15m @ 5.09g/t, 17m @ 2.55g/t & 4m @ 11.54g/t Gold

Banfora Gold Project, Burkina Faso Highlights
 Drilling has intersected significant gold mineralisation at the new Ouahiri regional shear zone (Refer to tables and map).
 Results are from a 10 kilometre portion of a major structural target that
remains untested for a further 20 kilometres.
 Mineralisation is multiple shallow zones within a major regional shear zone.
 Further results from the ongoing regional Banfora drilling programmes as well
as at the Nogbele deposit will be made available at the earliest opportunity.

 

[Sean K]

Trading halt.

HUH?

For an acquisition?

HUH HUH

Gryphon, you are an exploration company with barely an asset and future debt / major dilution forecast.

Buy with cash and reduce holdings at a time when cash is at a premium, or dilute company with a share swap?

You better be buying something bloody interesting.

 

[Sean K]

No amount of HUH's to exclaim.

Who pays a 50% + VWAP? I'm off you GRY. Hooly Dooly!!!

Key Points of the Transaction
● Shield shareholders will receive one Gryphon share for every three Shield shares
● Share Offer represents a 35.8% premium to Shield’s closing price and a 55.8% premium to the three month VWAP of Shield shares prior to the announcement
● Unanimous recommendation by Shield Board of Directors
● Gryphon has entered into pre-bid acceptance agreements with Shield shareholders representing 19.9% of the Shield shares on issue
● Shield’s CEO and Managing Director, Mr David Netherway will join the Gryphon Board as a nonexecutive director on successful completion

THE priority should be getting cash flow from their existing potential mine.

They could end up JUST AN EXPLORER if they don't get the focus right.

Subject to further analysis of the tenaments they have picked up, off the watch list.

 

[Bigukraine]

No amount of HUH's to exclaim.

Who pays a 50% + VWAP? I'm off you GRY. Hooly Dooly!!!



THE priority should be getting cash flow from their existing potential mine.

They could end up JUST AN EXPLORER if they don't get the focus right.

Subject to further analysis of the tenaments they have picked up, off the watch list.

g'day kennas and other's,

big order's came through today for GRY and expecting drill results soon... a bit of a leak maybe ??

I'm a SHX holder and can see some games being played re this take over such as others taking a blocking stake % wise and as you would of found out very prospective ground SHX has on offer right next door to the canadian Redback and lease has similar geo.... reading the concerns of this post the positive i can see is that they wanted to secure extra ground while they could and maybe that is there intention to be an explorer only for now and get jv's re bringing project's into fruition...intersting and noticed area of the world africa re investment and GRY's attempt could be a good strategic one..... only my thoughts