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

Perhaps ann to be released about Jabal Sayid?
 
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....
 
Why is this stock is still under $.20, the news was very positive.
Can anyone please explain what happens?
 
That's right i dont' get it either??? so much positive news and feedback? but why is it still under 20cents??? can anyone explain?
 
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.
 
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??
 
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)
 

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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:
 
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)
 

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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.
 
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.
 
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.
 

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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?!...
 
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...
 
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
 
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