CRK - Carrick Gold

[exgeo]

CRK has announced a scrip bid for Shannon SHA. On the plus side, SHA has some good hits such as these, from the Dec 06 qtly:

GOLD: (maximum depth 72 metres)
· SRRC 33 44m @ 2.24g/t Au inc. 5 metres @ 8.50g/t Au
· SRRC 34 31m @ 1.68g/t Au and 7 metres @ 2.78g/t Au
· SRRC 40 3m ..@ 24.7g/t Au and 6 metres @ 1.85g/t Au

and some reasonably long, but not fantastically high-grade nickel hits, such as:
· SNP 19 19m @ 0.63% Ni
· SNP 17 7m ..@ 0.81% Ni
· SNP 16 6m ..@ 0.73% Ni

On the minus side, Frank Carr is the largest shareholder in SHA (40%) so this might just be a way for him to cash out. BUT, he's also the largest shareholder in CRK with 46% of the stock. So it wouldn't make a lot of sense for him to do anything that's bad for CRK. The other reasons given for the bid seem reasonble to me, such as saving in admin costs, listing fees, ability to manage combined drill programmes and ultimately develop the resources using a centrally-located processing facility for both resources (they are all located in the same locality).

 

[exgeo]

Massive sulphides encountered in first RC drillhole

Massive sulphides encountered in first percussion hole located at the Grey Dam Project at Kurnalpi.

Best nickel results include:
1m @ 1.74% Nickel and 1.12% Copper from 135 -136m
1m @ 0.50% Nickel and 0.68% Copper from 130 - 131m

Best gold results include:
2m @ 0.70g/t Gold from 120 - 122m
1m @ 1.5g/t Gold from 127 - 128m

 

[Firdy]

Does this company plan to ever produce, or build a plant? Like others, I subscribe to the Market Cap:JORC Resource, and Market Cap/Proven potential (in $/oz).

Carrick's Market Cap is 180 million, and resource is 3 million oz, meaning, at the current share price of $ 1.47, I'd be paying $ 60 for an ounce of resource.

This seems to be worthy of further investigation.

PS - Is anyone still following this forum?

 

[Firdy]

THis seems to be a good company, and they recently raised 18 million in cash, but I also noticed that "Carrick Gold" was named in a US anti trust case. Different company different country same name?

I wonder why no posts on this for a year?

 

[exgeo]

14 December 2007
Share Placement Raises $18m. We wish to advise that the Company has effected a placement of 10,600,000 shares at $1.70 per share to sophisticated and professional investors, clients of BBY Limited.

Update (from exgeo). Company is buying back shares (at prices under a dollar; current sp 60c). Perhaps the company is more sophisticated than the sophisticated investors?

I'm a bit mystified as to the current share price fall given that most junior gold stocks have been holding up quite well in the recent pull-back (eg/NGF, IAU, IGR, MLI, PRU, WGR that I also hold). Page 19 of today's company update from IAU shows that CRK is one of the lowest cap/oz stocks around. Perhaps the market was disappointed with the recent resource upgrade from 4.0Moz to 4.1Moz? Can't think of anything else, as they still have enough cash to keep the drills turning for several years. Disclosure: I sold around 130c and am buying back in now.

 

[tehnoob]

Hi all, I'm quite new to this so please don't laugh at me!

CRK released some drilling results yesterday with the SP falling slightly since.

What makes for a 'good' (economical) intersection? At Atlas they had, amongst others, a hit of 4m@5.3g/t and over at Gambia they came across 3m@15.2g/t.

Does the depth of the intersection play THAT much of a part in determining economic viability?

Also, what would a reasonable cutoff be for the grade? I notice that gold explorers often use 1g/t or 0.5g/t but is that really a sufficient grade?

Cheers

 

[Sean K]

Hi all, I'm quite new to this so please don't laugh at me!

CRK released some drilling results yesterday with the SP falling slightly since.

What makes for a 'good' (economical) intersection? At Atlas they had, amongst others, a hit of 4m@5.3g/t and over at Gambia they came across 3m@15.2g/t.

Does the depth of the intersection play THAT much of a part in determining economic viability?

Also, what would a reasonable cutoff be for the grade? I notice that gold explorers often use 1g/t or 0.5g/t but is that really a sufficient grade?

Cheers

Depends on the depth, country, and type of deposit etc etc. A geo may be able to answer in some detail. Lots to consider.

From surface open pit grades 2-3% in W Africa could be worth the same as an underground mine high grade in Australia.

As an example, PRU have 7m oz at 2% ish open pittable in W Africa, and AND have 2m ish at 15% underground in Argentina and the AND's market cap is gimormous compared to PRU. There's a reason for it. Higher grade, and lower country risk. Maybe management are better rampers too.

So, try and compare apples with apples for your comparison.

Speaking of CRK ann out this am on some good drill results by the looks:


Carrick Gold Limited www.carrickgold.com intersections at Brilliant

Exciting results from 9 RC holes of the latest drill programme are set to increase the resource inventory at Carrick Gold’s Brilliant Prospect Figure 1 & 2. The drilling was designed to extend the gold mineralisation of the eastern mineralised structure further to the south. Preliminary work has shown that a total of 200 metres of strike length has been added to the eastern mineralised structure. More drilling is ear-marked to test the down dip and strike extension further to the south. Results from the recent drilling include those in



More info, thoughts anyone?

 

[tehnoob]

Thanks Kennas.

I'm guessing that if there is little SP movement on yesterday's drilling results of 3m@14.2g/t and they close up 11% today on announcement of 50m@5.75g/t that the latter is a far better strike. It's only 1m below the surface too.

 

[TashiGold]

In a few days time we may know what the future holds. The quarterly report is coming out possibly next Monday.
With a bit of luck we will know when mining will start plus there should be another upgrade.
This is one of the most underrated stocks on the board and with potential for a very significant share price rise in my opinion.
Let's see on Monday

 

[exgeo]

One can only assume that the recent sp action of CRK is a case of the "market staying irrational longer than the punter can remain solvent." Gold resource is expanding (recently extended one of their resources 250m with drilling, no resource calculation on the extended part yet) and already has a large inventory. Perhaps it's because they seem to have no firm plans for getting into production? Maybe Frank Carr has recently read "When Money Dies"** and wants to hoard some gold ahead of time? What better way to hoard it than keep it in the ground? No storage costs, no danger of someone stealing it.



** A scary but perhaps prophetic read? Replace "War Reparations" with "Unfunded Medicare Liabilites, TARP" etc., and "German Industrialists" with "Wall Street Banks" and it could be a book about current events.

 

[exgeo]

From Apex Minerals 25th September 2009 presentation. I'm glad they are finally considering development. In retrospect, employing a full time resource geologist 6 months ago was probably the first step on the road to development.

 

[tehnoob]

Is there something I'm missing? CRK finished the day at $1.005, up 12.5c or 14% for the day. No news, gold price fairly steady.

 

[ectoplasm]

Hi tehnoob,

That was a nice bounce on the 21st Nov. & I note from another forum that CRK was mentioned in dispatches and the chart does look good! 4 Price Sensitive Company announcements in the last month (or two) & CRK may just be worth watching ~ particularly if gold keeps bouncing

Daily chart:

 

[exgeo]

Note from Warwick Grigor to BGF Equities clients this morning. Now it becomes clear why BGF initiated coverage late last year.

BGF is proceeding with a placement of shares in Carrick Gold (CRK) at a price of $1.00, aiming to place a minimum of $9m, but with the ability to increase this to $14m. The shares are in a trading halt now and should resume trading on Friday morning, this week.

I have attached some research written prior to Xmas, which will give you a good flavour. The critical thing here is that the Company has been flying under everyone’s radar screen. It represents a rare opportunity that we are keen to pounce on.

In the few hours since we have started talking to institutions we are already heavily bid for stock, but I wanted to make sure the Gold Card clients get a chance to participate.

 

[ectoplasm]

Note from Warwick Grigor to BGF Equities clients this morning. Now it becomes clear why BGF initiated coverage late last year.

Hi exgeo

Nice price and volume action today - only wish I was on it...

Daily Chart: Gapped up 14%!

 

[exgeo]

Recent sp decline explained (perhaps). Frank Carr, director and founder died on June 6th. His last trade in CRK was on May 18th at 64c to bring his shareholding to 52,200,000 shares, or 37.56% of the company. No indications about what will happen to this holding yet. Might be a good buying opp. for those contrarians; everyone else just stand aside for now perhaps! CRK were already very cheap on a cap/oz basis (at 60c, last time I checked) and they continue to drill. Also Ian Burston was appointed to the board on May 12th (he is a well-known figure in the Aussie gold scene). He may help to drive things forward with this company.

 

[exgeo]

Substantial shareholder notice lodged yesterday by Frank Carr's widow, confirming the transfer of his shareholding to her name (deceased estate). Strangely this seems to have given some comfort to the market - CRK is up from 35c to 45c in a day. Seems to me that this still doesn't tell us whether she will be a long-term holder or not though, which is presumably what the market was worried about before.

 

[godhaspoken]

been watching carrcik for a while now... had a nibble at 43c a couple of months ago but picked up a truck load at 32 and 34. seems director freidman picked up a few at this level also.

to be quite honest mate i believe there is no concern of Mrs Carr selling her stock on market, as you can see from the recent appointments these new guys are not mining/exploration buffs...watch this space.

the recent price action above 50c resistance/support under decent volume is encouraging. it would be nice to see them drilling the **** out of tenements, maximise the resource and sit and wait- and hopefully not be ignored!

you've been watching this space for longer than I, anyhting to add?

 

[godhaspoken]

perhaps any comments RE: the shares traded by JPM- 3.6M shares "transfered out" yet no new substantial shareholder nottice submitted... if not traded on market where/who did they go to? recent substantial shareholder nottice in quarterly shows they are still registered as a holder of these securities. with ~10% not 8%.

 

[exgeo]

Nothing new to add really, other than it seems that the new board is more geared towards getting the thing in production. I also backed up the truck; unfortunately a little before the bottom, at 40c, but I'm not complaining now though. CRK is now my biggest single shareholding.