AS1 - Asara Resources

[greggles]

Another call on the money Greg News out today and currently nudging up on solid Volume.

I have a really good feeling about GMR. If the upcoming drilling results from Kouri are good we should be over 3c by the end of 2019. I am starting to see the size of buy orders increasing and more at market buying. Punters are finally clueing in to what's going on here. The size of the mineralisation could be huge.

Market cap is only $17.4 million. All upside and very little downside at current prices. Watch this space.

 

[barney]

Market cap is only $17.4 million. All upside and very little downside at current prices. Watch this space.

Duly noted and on has been on the watchlist since your earlier reminder

Aggressive punters will likely be getting set now. Back to 1.8 cents will take out a couple of recent Volume points so I'd expect it to hot up if that happens.

Back to the 2 cent region, I agree that it could move fast which makes any buying/selling in what might be a 'ranging period' at the moment important to keep an eye on …. appreciate the heads up

 

[greggles]

Been a bit of a sell off in the last week or so. There appears to be concerns about terrorist activity in Burkina Faso. An attack on a gold mine in early October claimed 20 lives.

https://www.aljazeera.com/news/2019/10/killed-attack-burkina-faso-gold-site-191006082526446.html

 

[barney]

Been a bit of a sell off in the last week or so. There appears to be concerns about terrorist activity in Burkina Faso.

Yeah I noticed that late last week …. Shame that BF is suffering from turmoil. If GMR had the same project in Aus, it would be a totally different SP I suspect.

 

[greggles]

Yeah I noticed that late last week …. Shame that BF is suffering from turmoil. If GMR had the same project in Aus, it would be a totally different SP I suspect.

Yes, I'm inclined to agree with you barney. Unfortunately this is a typical example of the downside of African-based mining companies. There is a lot of political risk and social unrest risk and it can rear its ugly head at any time, even in countries that are considered "safe".

Africa is a continent rich in mineral wealth but it is far from stable politically and socially and there is sometimes a price to pay for that. I have seen it happen many times before and is why I don't tend to invest in African-based miners unless there are compelling reasons to do so.

 

[greggles]

GMR fell off my radar some time ago. Just noticed it again this morning when I saw the share price was up over 10%.

Kouri appears to be on the backburner now, with a new project acquired earlier this year, the Kada Gold Project in Guinea, being the new focus. Some good assay results announced this morning:

Thick widths, decent grades and mineralisation from the surface. I haven't looked too deeply into previous announcements yet but have noticed that a maiden Mineral Resource Estimate for Kada is due in late January 2022, so there could be some more short term momentum for GMR early in the new year.

 

[Sean K]

Thick widths, decent grades and mineralisation from the surface. I haven't looked too deeply into previous announcements yet but have noticed that a maiden Mineral Resource Estimate for Kada is due in late January 2022, so there could be some more short term momentum for GMR early in the new year.

More good hits here. Close to 100m above 3g/t is exceptional. Not sure how things are tracking post coup in Guinea. EV only about $20m, so very small for those sorts of intersections and potential really. Massive country risk/discount. Looks like Kada is about 700x800x120=67m@?grade=?ounces.

 

[Sean K]

MRE was due in Jan but they knocked it back to end of Feb without too much explanation.

Decent hit way outside the intended MRE area.

Can't find the non-JORC Newmont MRE on this deposit. Not sure why that's not clearly evident anywhere.

On the current dimensions mentioned above, and in their own presentation of 700x800x120 x SG of 2.5 = 168Mt. But there's obviously a big gap in the higher grade stuff in this picture below, but it's pretty well mineralised under the ground with not too many gaps. Looks like up to a third of the overall dimensions might be very low grade halo or dirt. So, I'd take 30% off those dimensions = 112Mt. Average grade? Complete pluck of overall 1g/t = 112m grams / 31 = 3.6Moz. That sounds like a lot for a company with an EV under $30m.

Plus, they've got 2Moz in Irovy Coast...

 

[Sean K]

Not a bad initial MRE but my calcs were way off on the tonnage. Must have taken a smaller area or perhaps there's many more gaps in mineralisation that's not clear in their cartoons. Grade as thought it would be with some of those previous intersections. Open in a few directions so should be just the start.

 

[The Triangle]

GMR have 2 high tonne, low grade, rather average to below average projects in Africa and have been rather uninteresting lately, however they put out two announcements today, first is a trading halt pending capital raising, second is announcing the chairman is leaving the company. Last month the MD/CEO left (think he's still on the board). The new CEO looks about 30 years old.

Back in June/July they announced they were selling their Burkina Faso assets (which I don't think they had done anything on for years) to a "local" company for~$22M- which at the time was more than their market cap. Not surprisingly the market correctly though the deal was too good to be true and the SP hardly moved. The deal fell over by July/August.

Company is a long way off the last capital raising price of 6.8cps - trading right now at 3.4cps for a $11m market cap. So I can't see them raising much more than a million or so after fees. Which doesn't seem like it's enough to move the needle on either the Guinea or Burkina Faso projects. Maybe it will be a big recapitalization to wipe out the old holders? With major board changes occurring there is something big in the works here.

 

[System]

On December 22nd, 2023, Golden Rim Resources Limited (GMR) changed its name and ASX code to Asara Resources Limited (AS1).