GIR - Giralia Resources

[prawn_86]

This is definitely the one that got away for me

Didnt have any spare money available at first when i looked at them around 30c then when i did i kept waiting for a pull back that never came.

Oh well, thems the breaks

 

[Sean K]

Yes, bad timing prawn, I was lucky enough to have some spare mullah down at the bottom. Those couple of funds I sold in Jan 08 have been put to good work.

GIR keeps coming out with good results, but will any of these deposits be mined? Infrastructure is a major consideration here, if not the consideration. They either need a monster find to warrant rail, or to sell off the projects/JV with those that do.

ASX ANNOUNCEMENT

IRON ORE EXPLORATION AND DEVELOPMENT UPDATE
• Successful 77 hole drilling program completed at Beebyn iron ore project in WA’s Midwest.
o best intersections to date at Beebynganna Hills; 28 metres @ 59.1% Fe, and 28 metres @ 58.3%Fe, including 16 metres @ 61.1%Fe
o resource extensions confirmed at Weld Range; 18 metres @ 61.3%Fe
• Drilling in progress at McPhee Creek testing 8 kilometre long iron formation range.
• Track construction nearly complete at Earaheedy for 128 hole program in late September.
• Scoping level mining studies in progress at Yerecoin and Mt Webber to assess development options.

The Directors of Giralia Resources NL (“Giralia”) report further progress in ongoing assessment of the Company’s iron ore projects. Giralia has 7 iron ore projects in Western Australia currently being evaluated, with initial JORC resources now released for 5 deposits.

Scoping level mining studies are being conducted by respected consultants ProMet Engineers on 2 projects (Mt Webber and Yerecoin) where infrastructure solutions are readily apparent.

The Company’s global iron ore resource inventory is now over 132 million tonnes (Table 1 below), with additional substantial exploration targets established at several projects.

 

[Sean K]

Oh dear Prawn.

Since breaking 40-45 ish has gone OK.

I love it when a plan comes together.

Seems like investing in fundamentally oversold/undervalued stocks and buying and selling to TA can pay off.

Don't tell the solo TA trotters.

 

[Sean K]

Daltons continues to provide more upside.


NEW HEMATITE ZONES DEFINED AT DALTONS JV

• Helicopter supported mapping and rock sampling has identified 7 new hematite zones at the Daltons JV (Giralia 75%, Haoma 25%).
• The most promising new zone defined is on the western range at Mt Webber ~1km north of Atlas Iron’s recently announced resource.
• An initial iron ore resource of 40.0 million tonnes @ 57.3% Fe was announced by the Daltons JV on 14 September for the eastern range at Mt Webber. The near-surface, low alumina resource is within road haulage distance of Port Hedland. A Scoping Study is in progress to evaluate development options.
• DSO potential also confirmed in the Soanesville area in the central portion of the Daltons JV around 10 km west of Mt Webber.


Within road haulage of Port Headland? 150km? Is that close enough? How many trucks would they have to have to move a sufficient tonnage? Cripes...

By the aeromagnetics it doesn't look like they aren't going to really define too much more tonnage here. But, never know.

Developing quite a lot of tonnage scattered all over the place, but not sure if they'll ever find enough in the one spot to be a miner.

Updated IO tenaments holdings:

About Giralia Resources NL

Giralia Resources NL ("ASX: GIR") is a well funded (~$70 million cash) mineral exploration company based in Perth, Western Australia. Giralia's iron ore projects in Western Australia are the Company's major exploration and development focus:

Beebyn (100%) – Hematite (MidWest) – Adjoins Sinosteel Weld Range deposits. Initial Inferred Mineral Resource 7.2 million tonnes @ 57.2% Fe. Major upside at nearby Beebynganna Hills project, where 7 new zones of hematite have been discovered.

Western Creek (100%) – Hematite (15 km W of Newman) – Marra Mamba iron ore as direct extensions to BHP Silver Knight deposit. Inferred Mineral Resource 52.4 million tonnes @ 56.7% Fe. Deposit is near surface, with several zones open ended.

Earaheedy (100%) – Hematite (200 km S of Newman) –23 known hills with rock sample grades over 57% Fe, within 130 kilometres of iron formations on Giralia tenements, with shallow dips indicating large tonnage potential. Drilling; 20 metres @ 55.7% Fe, 8 metres @ 58.7% Fe, and 12
metres @ 57.3%Fe from 8 hills tested to date.

Anthiby Well (100%*) -CID (Pilbara) – Channel iron deposit (CID) mesas, drill intersections include 32 metres @ 55.1%Fe including 24 metres @ 56.0%, 22 metres @ 56.3%Fe, and 18 metres @ 56.2%Fe. Initial Inferred Mineral Resource 63.5 million tonnes @ 50.5% Fe, including 37.6 million tonnes @ 53.6% Fe (59.1%CaFe). * subject to production royalty

McPhee Creek (100%) – CID (Pilbara) – Channel iron deposit (CID) mesa, new drill intersections include 12 metres @ 56.1 % Fe, 10 metres @ 57.2% Fe. Initial Inferred Mineral Resource 5.17 million tonnes @ 53.6% Fe (60.4%CaFe).

Daltons (75%) - Hematite (Pilbara) – newly discovered zone of massive hematite outcrop, only 150 km south of Port Hedland, and 40km from FMG, BHP rail lines. Drilling 70m @ 58.4% Fe from surface, including 54m @ 60.9% Fe, 1.5%Al2O3. Initial Inferred Mineral Resource 40.0 million tonnes @ 57.3% Fe (62.3%CaFe).

Yerecoin – Magnetite (150 km from Perth) – 1 km to railway. Initial drilling March 2009; 72 metres @ 32.4%Fe, 52.4 metres @ 31.6 %Fe. Coarse magnetite; excellent DTR testwork. Scoping Study in progress.


So, over 140m tons DSO scattered about the country and a potentially huge magnetite deposit close to Perth.

Scoping study on Yerecoin and they haven't even got a resource yet. HUH?

 

[Sean K]

GIR is an announcement machine....

NEW HEMATITE DISCOVERY AT MCPHEE CREEK

• Encouraging results from the first 12 holes from an initial widely spaced iron ore drilling program testing the 8km long main range at Giralia’s 100% owned McPhee Creek project;
o 58m @ 55.6% Fe from 4 metres depth including 36m @ 58.1% Fe
o 16m @ 57.2% Fe open at end of hole
• Project located 220 kilometres south east of Port Hedland.
• Results for a further 35 holes to come, with drilling rig now mobilising to wholly owned Earaheedy project.

Current McPhee resource:

McPhee Creek (100%) – CID (Pilbara) – Channel iron deposit (CID) mesa, new drill intersections include 12 metres @ 56.1 % Fe, 10 metres @ 57.2% Fe. Initial Inferred Mineral Resource 5.17 million tonnes @ 53.6% Fe (60.4%CaFe).

Looks like that western area could hold quite a resource. 8km range....

 

[grace]

GIR is an announcement machine....

Yes, be careful that you do not get RSI from posting for this resource giant. Can't help but think that someone would love to gobble the gorilla up one day. Fingers in so many pies.......
I don't own at present and it is hurting.

 

[Sean K]

Nice intraday sell off today. Rejected $1.10 ish pretty convincingly. Will be interesting to see if it's bought up from the intraday lows as it has been recently. Fair way back to any significant support.

 

[Sean K]

GIR is an announcement machine....

Current McPhee resource:

McPhee Creek (100%) – CID (Pilbara) – Channel iron deposit (CID) mesa, new drill intersections include 12 metres @ 56.1 % Fe, 10 metres @ 57.2% Fe. Initial Inferred Mineral Resource 5.17 million tonnes @ 53.6% Fe (60.4%CaFe).

Looks like that western area could hold quite a resource. 8km range....

The announcement machine out with an update on McFee Ck.

MORE SIGNIFICANT INTERSECTIONS AT MCPHEE CREEK HEMATITE DISCOVERY
• More encouraging results from a further 9 holes from initial widely spaced iron ore drilling testing the 8km long main range at Giralia’s 100% owned McPhee Creek project, located 220 kilometres south east of Port Hedland;
o 46 metres @ 60.2% Fe open at end of hole
o 34 metres @ 58.9% Fe open at end of hole, including 28 metres @ 60.4% Fe
• Results for a further 26 holes to come.

8 kilometers strike might turn this into something real decent. Like maybe even mineable!

 

[Sean K]

Wow, McPhee Ck is shaping up to be something more significant. They need a standalone decent deposit and this could be it.

SIGNIFICANT HEMATITE IRON ORE DISCOVERY CONFIRMED AT MCPHEE CREEK

• Outstanding new drilling results confirm a significant hematite iron ore discovery at Giralia’s 100% owned McPhee Creek project, located 220 kilometres south east of Port Hedland;

o 90 metres @ 58.6% Fe , 1.7% Al2O3 from surface to end of hole
o 58 metres @ 59.0% Fe, 1.5% Al2O3 from 12 metres depth
o 62 metres @ 57.3% Fe, 2.4% Al2O3 from surface
o 42 metres @ 60.1% Fe, 2.2% Al2O3 from 20 metres depth

• Several zones of strong hematite mineralisation defined by widely spaced initial drilling of the central 5 kilometres of the 8 kilometre long iron formation range.

• Resource definition drill-out is planned to commence in November.

90m DSO with low contams is very good.

8km range, with up to 90m DSO....

Whoohoo!!

This will certainly take their overall inventary above 200m DSO, and then the Mag potential to be expanded. Turning into a much larger Iron explorer, with cash.

 

[Sean K]

Can't help but think that someone would love to gobble the gorilla up one day. Fingers in so many pies.......

I think the recent action is related both to the McPhee Ck drilling and the BHP grab for UMC. Seems they are pretty keen to prevent the Chinese Railway dudes take over too many juniors. This should provide good support to all the juniors with shored up resources close to rail lines, or port. I'm not sure if 220km or whatever is really close enough, but maybe. BRM and FRS are probably in a better position, but FRS is in some type of arrangement with the rail dudes already.

Great recovery from that sell off a few days ago. Was a good buying oportunity in retrospect.

 

[Gurgler]

Was a good buying oportunity in retrospect.

Perhaps that buying opportunity is coming back - RSI dipping below the base line. Trigger finger is getting itchy!

 

[Sean K]

Perhaps that buying opportunity is coming back - RSI dipping below the base line. Trigger finger is getting itchy!

Pretty dramatic collapse. Quite a few have turned turkey the past week. Markets well overdue for a decent correction. Maybe this is it. Lets hope it's not the start of the W shaped recovery, or if it is the right hand bottom of the W is a little higher...

 

[Dukey]

Perhaps that buying opportunity is coming back - RSI dipping below the base line. Trigger finger is getting itchy!

well Gurgler , kennas - that certainly was a great buying opportunity!! Hope you guys bought more - look what it's done since then!!

and yet again I missed it with Giralia. I'm beginning to make myself sick with this one. but it can fall sharply at times as I found out a year or so back.

Any thoughts on where this run will end? I'm thinking 1.55 to 1.60 ish?? but that's more of a punt than anything else.

 

[Sean K]

Fundamentally I think it's about right, but with some more drilling success it could be worth much more. Most projects are still open. McPhee Ck could be much much bigger with the recent drilling results so just have to wait and see. They need one decent project to expand to around the 100m ton mark I think to be on the radar of a major. I doubt they will ever mine anything themselves. Maybe McPhee Ck will be it? I didn't pick up any more unfortunately, I've been selling things recently.

 

[Sean K]

Quarterly Summary:

EXPLORATION; Global JORC resource inventory at Giralia’s 7 iron ore projects in Western Australia, is now 184.5 million tonnes, boosted by 2 significant new discoveries within trucking distance of Port Hedland.

• Daltons Iron Ore Project (75%): Independent Scoping Study findings delivered on development options for Mt Webber DSO iron ore deposit (Maiden Resource September 2009: 40.0 million tonnes @ 57.3% Fe);
o Base Case of 2Mtpa mining and road haulage to Port Hedland, targeting production by 2nd quarter 2011;
o NPV(10%) of A$170 million, IRR of 53.9%

• McPhee Creek Iron ore Project (100%): Maiden Inferred Mineral Resource for new McPhee Creek main range discovery based on 71 RC holes completed to date;
o 52.1 million tonnes @ 56.0%Fe (61.7% CaFe),

Conservative Exploration Target of 100 to 140 million tonnes @ 57 to 60% Fe for the western side of the 8 km long range. Resource is near‐surface, and potentially within road haulage distance of Port Hedland. Scoping Study to evaluate development options.

• Yerecoin Iron Ore Project (100%): Resource drilling program (143 holes) scheduled for early February. Scoping Study on development options is due for delivery in early 2010. Initial Exploration Target of 200 to 250 million tonnes of magnetite mineralisation grading 30‐35%Fe, 150 km north of Perth, and within 1 km of existing rail access. Exceptional DTR results (grades >71%Fe, < 1%Si02 and coarse grind size for magnetite liberation).

• Earaheedy Iron Ore Project (100%): A 126 hole drilling program was completed in November 2009 at the greenfields Earaheedy project, Better intersections include 40 metres @ 50.4% Fe (open at end of hole), 12 metres @ 55.5% Fe within 30 metres @ 51.5% Fe, and 4 metres @ 58.1% Fe.

• Beebyn Iron Ore Project (100%): Positive results from initial DTR tests on magnetite drill samples from Beebynganna Hills; average grade of DTR concentrates 67% Fe, 4.5% SiO2 and 17.5% weight recovery. For samples below 50 metres depth the average weight recovery was 20.8%. The iron formation package is over 150 metres wide on the section tested, and up to 11 km long.

• Anthiby Well Iron Ore Project (100%): Drilling is scheduled to commence in late January to collect PQ diameter drill core for beneficiation testwork.

Now trading at 1.12 a tn DSO, so it's probably fairly valued based on the last BHP transaction at 1.20. However, there's nothing factored in for the potential at McPhee Ck - another 50-100Mt, and the other projects being drilled or about to be. So, long term still looks good.

Just looking at the junuior comparison, and look how cheap FRS is compared to the others. 65c a ton for DSO. Of course if you call BRM a DSO operation (it needs beneficiatiation) it's still at about 20c a ton!

 

[Dukey]

Hi guys - I've finally got back in on Giralia takinmg advantage of this minor correction.... hopefully she'll treat me better than she did last time !

Tenements and resources stacking up higher each month (as stated by Kennas on many occasions), fingers in many many pies... so we'll see what happens. Stops in place though - just in case though.

wonder how much this Cu deal will be worth for them... hard to put $$ on that one?

-D

 

[Sean K]

I've been off the ball and missed the Yerecoin Scoping Study. GIR hasn't moved much so maybe it's not that significant.

ASX ANNOUNCEMENT

YERECOIN MAGNETITE PROJECT SCOPING STUDY OUTCOMES

• Findings from independent Scoping Study on development options for Giralia’s 100% owned Yerecoin magnetite project delivered;

o Design basis is production of 2.5 mtpa of magnetite concentrate, with transport on existing rail to Kwinana port.
o High level financial analysis indicates that the project is viable, and attractive under several scenarios;
CAPEX Contingency included #OPEX $/t *NPV(10%) *IRR
Base Case $415M $54M $58 $67M 13.8%
Scenario 1 $373.5M $48M $55 $321M 33.8%
# * see notes to Table 1 for details
o Detailed testwork confirms excellent beneficiation characteristics, allowing
evaluation of several product specifications, including Blast Furnace grade, Direct Reduction grade and sinter feed blend.
o Implementation schedule indicates production possible by 3rd quarter 2013.

• Resource drilling has commenced to establish initial JORC resource within current Exploration Target of 200 to 250 million tonnes.

Any thoughts?

 

[Dukey]

I've been off the ball and missed the Yerecoin Scoping Study. GIR hasn't moved much so maybe it's not that significant.

ASX ANNOUNCEMENT

YERECOIN MAGNETITE PROJECT SCOPING STUDY OUTCOMES

• Findings from independent Scoping Study on development options for Giralia’s 100% owned Yerecoin magnetite project delivered;

o Design basis is production of 2.5 mtpa of magnetite concentrate, with transport on existing rail to Kwinana port.
o High level financial analysis indicates that the project is viable, and attractive under several scenarios;
CAPEX Contingency included #OPEX $/t *NPV(10%) *IRR
Base Case $415M $54M $58 $67M 13.8%
Scenario 1 $373.5M $48M $55 $321M 33.8%
# * see notes to Table 1 for details
o Detailed testwork confirms excellent beneficiation characteristics, allowing
evaluation of several product specifications, including Blast Furnace grade, Direct Reduction grade and sinter feed blend.
o Implementation schedule indicates production possible by 3rd quarter 2013.

• Resource drilling has commenced to establish initial JORC resource within current Exploration Target of 200 to 250 million tonnes.

Any thoughts?

Sadly I just can't get it right with GIR!... got stopped out on the last dip - then off she goes into $1.80 territory! just can't win with this one!

The project though sounds good kennas. Bigger than I expected - but mag, not haematite. Dunno - I'm no Fe guru, but between this project and the ridiculous number of other explorations on the go.... something's gotta give ... sometime.

just hope i get a chance to get back in before it takes off.

-D

 

[chops_a_must]

On this purely on the technicals.

But as always, the fundamentals look pretty good to match.

Looks like an outstanding breakout to me.

 

[Dukey]

OMG!! can't believe the performance of GIR in the last month or so.... no actually, I can believe it. It's fair enough based on the resources and projects the have - what I can't believe is that this one got away from me again. I got stopped out maybe 2 months back after setting fairly tight stops (due to seeing GIR fall quickly in the past)... then bang! - she strolls from $1.50 through $2 mark and onwards and upwards barely missing a beat to $2.30.

Obviously i should've been prepared to back my judgement better - and allow it some room to move, rather than stopping myself out. I guess it's part of the game when you work 5 days a week and can't spend the time required to watch carefully either....

oh well.... next time.... there's always my fave and faithful CSG sector!