AS1 - Asara Resources

[Garpal Gumnut]

Mate, I'm a bystander in this current sharemarket train wreck.

Still, if they do surprise by actually producing something tangible instead of salted samples, I may win the Feb comp.

L O bloody L

Care to swap it for PEN?

gg

 

[Sean K]

And there you go.

What a crap initial resource.

Maiden Gold Resource and Preliminary Scoping Study Results for the Netiana Lodes at Balogo, Burkina Faso

● Maiden Inferred Mineral Resource estimate in accordance with the JORC Code has been completed for the Netiana Lodes at Balogo.
● Inferred Resource of 850,000 tonnes at 6.8 g/t gold for 185,000 ounces of gold has been defined at a 0.5 g/t cut-off.
● Resource estimate is highly conservative with spatial restrictions placed on the influence of high-grade gold samples in the resource model.
● High-grade core of the resource is predominantly oxide material and is located only 25m below the surface enabling early extraction in an open pit operation.
● Preliminary Scoping Study estimates from Coffey Mining suggest that an open pit development on the Netiana Lodes would be very robust, with a calculated NPV of A$45.7 million and an IRR of >100% giving a Capital Cost (CAPEX) payback of less than 5 months.
● CAPEX for a new modular 250,000 tpa plant is estimated at A$38.8 million and total Operating Cost (OPEX) is estimated at A$603/oz at a treatment rate of 30tph.
At a gold price of $1,550/oz, the mine would generate gross revenue of A$106 million/year.
● Mine life is 2 years and Golden Rim is confident that this can be extended with further pit optimisation and additional discoveries of satellite gold resources in the region around the Netiana Lodes.

CAPEX of $38m to go into production? What are they doing? Panning it out?

Mine life of 2 years? Cough, splutter.

Is this a joke?

 

[outback]

Horse driven stamp mill maybe, the horse is already pretty old so 2 years is all they can ask.

 

[Miner]

GMR has started back pedalling but why the directors spend their money to buy at a rock bottom price ?
I am sure not to throw away. Even it is a two years mine life, the pay back is within 5 months.

Should I wait and accumulate at further dip ?

 

[Miner]

And there you go.

What a crap initial resource.



CAPEX of $38m to go into production? What are they doing? Panning it out?

Mine life of 2 years? Cough, splutter.

Is this a joke?

I was going to tip for GMR and saw you took. Thanks for your tipping my friend

 

[Sean K]

I was going to tip for GMR and saw you took. Thanks for your tipping my friend

LOL

Lucky I included the disclaimer.

GMR

Due for an initial JORC, although it'll probably underwhelm, and may not even come in on time.

They should have known it was going to be such a small resource at this stage. Great grade, but really....

The 'extensions' they have established will increase the tonnage but at this stage is just diluting it.

 

[Miner]

GMR is now going for a death from a cancerous poor management strategy, lack of mine life and a new Capital Raise against a constant falling price. Latest annoucement might have already been already leaked or now will impact further on next market opening opportunity.
I however still struggle to think - why the directors invested their money recently ? I am sure they knew CR was coming

Any knowledgable in put ?

 

[Country Lad]

I however still struggle to think - why the directors invested their money recently?..................Any knowledgable in put ?

No, can't offer any knowledgeable input, can't remember looking at this one till now, but your post made me curious so I looked at their numbers.

I have no knowledge of the particular director Rick Crabb, but having a look at GMR, well let's say that I would not have bought shares whether or not I was a director. I can assume only that he was confident that the announcement would increase the share price (he bought the same day after the announcement).

The chart shows that GMR hasn't exactly had a good year,






and a good assumption would be that the market is not in love with it, so a logical conclusion is that the announcement of a 185,000 oz gold resource would be pretty well ignored by the market, regardless of how much it is sugar coated about an IRR greater than 100% and a payback of less than 5 months. Add to that of course, the obvious need for a capital raising.

An understanding of market sentiment would have made one very wary of buying based on that announcement, and in fact, the price has fallen about 30% since the announcement as could be expected, so why the director bought more will be a mystery to most.

Mind you, the funny numbers in the announcement didn't help.

850,000 tonne resource for 185,000oz of gold. They state a Gross revenue of $106 mil per year at what I calculate a gross profit of $947 per oz. That means 112,000 ozs of gold per year, so that the resource of 185,000 oz is mined and treated in 1.65 years at a rate of 514,000 tonnes of ore per year.

The size of the plant they have based their IRR, payback, etc on has a capacity of 250,000 tonnes per annum, about half required.

Unless I have made some calculation errors, I would expect that credibility may be an issue as well.

Cheers
Country Lad

 

[Sean K]

Mind you, the funny numbers in the announcement didn't help.

850,000 tonne resource for 185,000oz of gold. They state a Gross revenue of $106 mil per year at what I calculate a gross profit of $947 per oz. That means 112,000 ozs of gold per year, so that the resource of 185,000 oz is mined and treated in 1.65 years at a rate of 514,000 tonnes of ore per year.

The size of the plant they have based their IRR, payback, etc on has a capacity of 250,000 tonnes per annum, about half required.

Unless I have made some calculation errors, I would expect that credibility may be an issue as well.

Cheers
Country Lad

Nice work CL. I haven't verified that with the calculator, but if right, geeeesh.

 

[Miner]

Dear Country Lad

Many thanks for an excellent analysis.
You have told many unfolded stories with opening lines with an alert on GMR .
I will watch to see the reaction of market when it resumes after trading halt

Regards

No, can't offer any knowledgeable input, can't remember looking at this one till now, but your post made me curious so I looked at their numbers.

I have no knowledge of the particular director Rick Crabb, but having a look at GMR, well let's say that I would not have bought shares whether or not I was a director. I can assume only that he was confident that the announcement would increase the share price (he bought the same day after the announcement).

The chart shows that GMR hasn't exactly had a good year,


View attachment 50954



and a good assumption would be that the market is not in love with it, so a logical conclusion is that the announcement of a 185,000 oz gold resource would be pretty well ignored by the market, regardless of how much it is sugar coated about an IRR greater than 100% and a payback of less than 5 months. Add to that of course, the obvious need for a capital raising.

An understanding of market sentiment would have made one very wary of buying based on that announcement, and in fact, the price has fallen about 30% since the announcement as could be expected, so why the director bought more will be a mystery to most.

Mind you, the funny numbers in the announcement didn't help.

850,000 tonne resource for 185,000oz of gold. They state a Gross revenue of $106 mil per year at what I calculate a gross profit of $947 per oz. That means 112,000 ozs of gold per year, so that the resource of 185,000 oz is mined and treated in 1.65 years at a rate of 514,000 tonnes of ore per year.

The size of the plant they have based their IRR, payback, etc on has a capacity of 250,000 tonnes per annum, about half required.

Unless I have made some calculation errors, I would expect that credibility may be an issue as well.

Cheers
Country Lad

 

[greggles]

Long time between drinks for Golden Rim Resources. Last post in this thread was six and a half years ago.

The company is developing the Kouri Gold Project in Burkina Faso which has a JORC Indicated and Inferred Mineral Resource of 32 million tonnes at 1.4g/t gold for 1.4Moz.

Assay results from the new Diabatou and Maré prospects announced this morning have sent the GMR share price heading north with grades as high as 784g/t. Some very impressive intercepts there. See attachment below.

GMR currently up 66.77% to 2c with more than 48 million shares traded.

 

[barney]

Long time between drinks for Golden Rim Resources.
with grades as high as 784g/t. Some very impressive intercepts there.

Some chunky nuggets in that vein

Looks like closing at around 80% higher today. The recent January high of 0.023 is the obvious sticking point in the short term.

Only have about $800,000 in the coffers so the results are timely if they are looking to Cap Raise.

 

[greggles]

Some chunky nuggets in that vein

Looks like closing at around 80% higher today. The recent January high of 0.023 is the obvious sticking point in the short term.

Only have about $800,000 in the coffers so the results are timely if they are looking to Cap Raise.

Further high-grade gold intersections from the Diabatou prospect at the Kouri Gold Project have been released today.

A second zone of high-grade gold mineralisation hosted in granite has been discovered with a new intersection of 4m at 23.2g/t gold from 67m, including 1m at 65.7g/t gold, in hole MRC014(Figure 3).

The second zone of high-grade gold mineralisation is interpreted to lie 25m northwest and parallel to the high-grade gold mineralisation recently discovered with previous intercepts of 7m at 121.2g/t gold from 41m, including 1m at 783.8g/t gold from 44m, and 3m at 7.2g/t gold from 56min hole MRC008.

With assay results from a further 12 drill holes pending and due to be released soon, I think this is going to be a good prospect for the September stock tipping competition. It's a real roll of the dice, but with the share price currently at 1.6c (up 14.3% today), there is plenty of room for GMR to move north quickly if there are some good high grade intercepts reported in the upcoming results.

 

[Smurf1976]

The recent January high of 0.023 is the obvious sticking point in the short term.

So far that has indeed been the case. Price reached 2.3 cents on the day of your post but hasn't come back, closing at 1.5 cents on Friday.

Perhaps further drilling results will give a boost?

 

[barney]

Perhaps further drilling results will give a boost?

With assay results from a further 12 drill holes pending and due to be released soon, I think this is going to be a good prospect for the September stock tipping competition.

Thanks for the reminder on this one gents … As usual, its one I was kind of watching from the sidelines, but forgot to watch …

As it turned out, they did do a Cap Raise after the spike higher in early August but to be honest I can't quite sort out exactly what is going on. There has been an off market transfer from/to Capital DI Limited who have +14% stake … Westward Investments now have a +6% stake and Acorn Capital have almost 8% ……

I am not sure of any of these past or present relationships with GMR so can't make any factual assumptions. The current raisings are still to be finalised I think, so are still to show on the balance sheet??

All I can assume is …. there has been movement at the station … and any movement involving successful raising of money should be treated as short term positive if the SP backs up the C/R.

With that in mind, if the SP progresses above 1.7 cents, I see that as bullish …. below that is still a wait and see

Definitely on the watchlist (the one I actually watch) now

 

[greggles]

Perhaps further drilling results will give a boost?

GMR announced this morning that they expect to re-commence their planned 14,000m drilling program at Kouri in the next 3 weeks. A total of 100 drill holes are planned.

Given the drilling results that have been released so far I think they have a better than average chance of coming up with some good results.

The next few months look to be an exciting time for GMR.

 

[greggles]

I'm going to stick with GMR in the October competition as I think I picked it too early and it will come good sooner or later.

Drilling should have recommenced at the Kouri Gold Project by now, so hopefully we will have some results through by the end of October.

$3,448,226 (before costs) was raised in a 3 for 11 pro-rata fully underwritten renounceable rights issue announced in August so there's a fair bit of money in the kitty to keep things moving forward.

Hoping for good news in October.

 

[greggles]

The 21,000m reverse circulation drilling and diamond drilling program has re-commenced at GMR's Kouri Gold Project.

Approximately 9,200m of RC drilling and 4,000m of diamond drilling (for approximately 100 holes) are envisaged for the remainder of the program.

Diamond drilling is currently underway at the Diabatou prospect and RC and diamond drilling is planned at the high-grade gold zone, the Maré -Guitorga North Induced Polarisation (IP) anomaly.

Previous drilling at Diabatou delivered bonanza results so hopefully there will be more good news once further drilling results are reported.

 

[greggles]

On 15 October, GMR released an announcement containing the following:

Diamond Drilling:

• The first diamond drill hole (MDH001) at the Diabatou prospect has been completed and has intersected several zones of granite-hosted quartz-sulphide mineralisation with visible gold.
• A second diamond drill hole (MDH002) is currently being drilled 75m beneath MDH001.
• First assays from the diamond drilling are expected in approximately 3 weeks.

Auger Drilling: A major 15,000m (3,750 hole) auger drilling program has commenced at the Diabatou prospect and will systematically cover various target areas in the Margou Permit.

Geophysical Survey: A ground magnetic and gradient-array Induced Polarisation (IP) geophysical survey (~500 line km) has also commenced at the Diabatou prospect and will extend through the central portion of the Margou and Goueli permit areas.

So there will definitely be drilling results from Kouri released in November. I believe it is likely that they will be positive, so I will hang in for another month with GMR and hope for the best.

 

[barney]

So there will definitely be drilling results from Kouri released in November. I believe it is likely that they will be positive, so I will hang in for another month with GMR and hope for the best.

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