GBG - Gindalbie Metals

[YNKWRTNC]

Ahhhhh don't you love it when you have a win every now and again!!
I held both GBG and SDL when they announced the merger. I sold out completely of SDL on its last surge to 80c and did very nicely. It was a toss up whether to sell SDL or GBG but i'm so pleased i went the way i did seeing the result of todays announcement.

Great stuff Paul!
Don't you love the market when you can pull something like that off.
Many GBG holders are ecstatic the merger fell through.
Hopefully we can catch AGO and MGX who are $2.51 and $2.79 respectively. They were the same price as GBG 2 months ago.
Next week should be a good one.

 

[chansw]

Gindalbie, Midwest projects at risk
25-October-07 by Mark Beyer

http://www.wabusinessnews.com.au/en-story/1/57946/Gindalbie-Midwest-projects-at-risk-

Gindalbie Metals Ltd and Midwest Corporation Ltd could be the losers from a state government review of the Mid West, which has endorsed the big iron ore projects planned for the region but put a question mark over several others.

The review, announced yesterday, states that the government has a "predisposition" to development of most of the Mid West's large iron ore deposits, including at Jack Hills, Weld Range, Tallering Peak, Yalgoo and Wiluna West.

The review also favours the development of identified magnetite ore bodies in the south west section of the Karara / Mungada / Blue Hills area.

This is good news for Gindalbie's $1.6 billion Karara iron ore project, which the company is keen to proceed with following completion of a bankable feasibility study in September.

However the sting in the tail is that "the Government is not predisposed to the extraction of the hematite deposits of the area".

This puts a question mark over Gindalbie's $94 million Mungada hematite project, which the company wants to develop following completion of the bankable feasibility study.

Gindalbie has been targeting first production at Mungada in the first quarter of 2009, with the mine set to provide early cash flow for Gindalbie and its partner, China's Ansteel, in the lead up to commissioning of the much larger Karara project in 2010.

Gindalbie managing director Garrett Dixon said the company did not agree with the negative interpretation, but was seeking clarification.

"There are a few things that could be read in different ways," he said.

Midwest Corp noted the government's predisposition towards development of Jack Hills and Weld Range, where it has proposed projects.

"In relation to the expansion program of Midwest's Koolanooka / Blue Hills direct shipping project, the government's strategic review suggests that the government's predisposition is not to support hematite projects at Koolanooka and Blue Hills but that each project will be considered on a case by case basis," the company said.

"In light the minimal environmental impact of the Koolanooka / Blue Hills direct shipping project, which involves mining previously mined pits, and the economic benefit that it would bring to the communities of Morawa and Perenjori, the company will continue the process of seeking environmental approval of the project."

The Association of Mining and Exploration Companies said the review provided some degree of direction for the future of the State's iron ore industry but also left questions unanswered.

"It's good that we've now got the Review's Executive Summary and proposed State Government actions, and they do provide some direction for the State's iron ore industry," AMEC's Policy and Public Affairs Manager Ian Loftus said.

"Serious uncertainty remains, however, in relation to which particular mining and exploration tenements will be impacted and which companies will be affected.

"It looks like a number of mining companies will have their future potential operations curtailed or even denied, so it's likely that some companies, their shareholders, and their workers won't be happy," said Mr Loftus.

"The creation of additional conservation estate, as detailed in the review, is undoubtedly linked to the ongoing conversion of pastoral leases by the State."

He added, "we'd now like to see the fine details of the Review so that the full impacts can be assessed by the whole community."

"On a final note, I'd like to extend thanks to the hard-working public servants in the Environment and Resources Departments that have worked very hard to complete the Review," said Mr Loftus.

 

[bigdog]

SDL ASX ANN today

29/10/2007 SDL: Clarification of Speculation on Termination of Merger
http://www.asx.com.au/asx/statistics/showAnnouncementPDF.do?idsID=00775413

CLARIFICATION OF SPECULATION ON TERMINATION OF MERGER

Subsequent to the announcement on 25 October 2007 of the decision by each of the Boards of Sundance Resources Limited (ASX: SDL) and Gindalbie Metals Limited (ASX: GBG) not to proceed with the proposed merger of the companies, there has been considerable speculation regarding the payment of a A$15 million break fee and the recommendations of the Independent Expert.
Sundance would like to clarify both points as follows:

1) NO break fee is payable by Sundance as a consequence of the decision by Sundance and Gindalbie to terminate the merger; and

2) NO report was completed by, nor any recommendation received from, the Independent Expert. The Independent Expert was engaged by Sundance to report on whether the proposed merger by way of Scheme of Arrangement was in the best interests of Sundance shareholders. The Independent Expert had no role in undertaking due diligence investigations into Sundance or Gindalbie.

read full ann for more info

 

[the barry]

Lodestone results due out Wednesday, Share price now unburdend by the SDL merger fiasco. Will sentiment again turn Bullish on this stock

Juniors such as AGO have seen their share price surge to around the $2.50 dollar mark. Are they overinflated or will GBG now play catch up football and see share price growth?

Positive Lodestone results should light a fire under the share price.

I await eagerly the anoouncement of the results on Wednesday.

Thoughts?

 

[kevien]

GBG ran very well at first, I was watching this morning and the highest today was 1.77. what happened in the afternoon, green turned into red?

 

[bliimp]

Lodestone results due out Wednesday, Share price now unburdend by the SDL merger fiasco. Will sentiment again turn Bullish on this stock

Juniors such as AGO have seen their share price surge to around the $2.50 dollar mark. Are they overinflated or will GBG now play catch up football and see share price growth?

Positive Lodestone results should light a fire under the share price.

I await eagerly the anoouncement of the results on Wednesday.

Thoughts?

Did GBG announce that the Lodestone results will definately be out Wednesday? ... can't seem to find anything conclusive.

 

[adobee]

Did GBG announce that the Lodestone results will definately be out Wednesday? ... can't seem to find anything conclusive.

I cannot find any statement that says this either ?
Please confirm if this is correct ? ......................

 

[Da Cat]

After a quick read through previous reports, I too have failed to come across any set date or timeframe for the release of Lodestone results.

The following is from the Quarterly released in July:

Lodestone Prospect

"A first-pass phase of drilling commenced in early July to investigate the potential of the deposit to host a Karara-style
magnetite deposits (both in physical dimensions and tonnage) and also to determine the prospectivity of the area for
hematite mineralisation."

"Drilling commenced at the Lodestone Prospect, 50km south east of Karara,
targeting both magnetite and hematite mineralization. Phase 1 drilling
scheduled for completion in the September Quarter 2007. Significant areas of
hematite–goethite enrichment were encountered in rock chips over Lodestone."

This may be the source of expectation that results are due soon. However, the annual report from last week states otherwise...:

"A key exploration focus during the year was the
Lodestone Project, which has been identified as a
priority exploration target for both magnetite and
hematite with many geological similarities to Karara.
Drilling commenced at Lodestone during the September
2007 Quarter"

Presumably there has been delays of some kind leading to the drilling starting/completing later than first reported. It does seem odd that the company would report that drilling has "started/commenced" in two quarters . Nevertheless, if the company's focus is on further development of Mungada resource at the expense of fast tracking drilling on a separate project, that is fine by me.

 

[the barry]

The annual report does suggest delay with driling commencing in September. I 'm sorry for suggesting the results would be out at the annual meeting, I'm sure i read that but must have been mistaken.
Not a great day for the share price. I topped up yesterday on the idea that results would be out on Wednesday.

I would like to see some form of positive announcement to fire up the share price as i ignored ago and others because i beleive in the gbg story.

I thought the proposed merger with SDL was the major reason for the lagging share price and it would be green streets ahead.

I hope we get something positive out of the General meeting tomorrow.

 

[tonza]

Please correct me if I'm not talking about the same meeting but I believe the AGM is not until the 28th of November.

 

[tonza]

I emailed Gindalbie, they replied same day. The September quarter figures are due next week, including the initial drill results of Lodestone.

Sorry for the double post. This post was made on the previous page (on the 25th of Oct.) and may provide some clarification as to when the Lodestone drilling results are being released. The Lodestone drilling results, provided they are good, have the potential to be a pivotal moment for GBG.

 

[the barry]

Please correct me if I'm not talking about the same meeting but I believe the AGM is not until the 28th of November.

Your correct. I'm having an amazingly off week. If anyone has any indication of when the lodestone results are due, it would be most appreciated.

 

[bigdog]

ASX ANN after close today

31/10/2007 Quarterly Activities Report
http://www.asx.com.au/asx/statistics/showAnnouncementPDF.do?idsID=00777790

HIGHLIGHTS FOR THE SEPTEMBER 2007 QUARTER

KARARA IRON ORE PROJECT (ANSTEEL EARNING A 50% INTEREST)
Mungada Hematite Project
• Resource estimation for the hematite project completed resulting in a Resource of 27.1 million tonnes at 61.7% Fe. Reserve calculation completed resulting in a product inventory of 14.3 million tonnes at 61.5% Fe.
• Bankable Feasibility Study completed resulting in a 6 year life project delivering 3 mtpa of ore and A$184 million LOM free cash flow. This produces a NPV10% of A$79.6 million and IRR of 27.5%.
• New Hematite prospects at BH7 discovered in the regional exploration program.
• Final draft of the Public Environmental Review document submitted to the EPA. Public review scheduled to commence in November 2007.
Karara Magnetite Project
• Reserve calculation completed for first 25 years of operations resulting in an initial Probable Ore Reserve of 497 million tonnes grading 36.3% Fe
• Iron Ore Concentrate of 197 million tonnes grading 68.2% Fe estimated to be contained within the initial Ore Reserve.
• Bankable Feasibility Study completed resulting in a 25 year project delivering 4 mtpa of concentrate and 4 mtpa of pellets. Financial outcomes of the BFS include a NPV9% of A$2.25 billion, IRR of 24.6% and IRRE of 37.5%. Cashflow over the 25 year life totals A$9.3 billion.

REGIONAL IRON ORE EXPLORATION (GINDALBIE 100%)
• Phase 1 drilling completed at the Lodestone Prospect, 50km south east of Karara. Better results include
273 metres @ 33.9% Fe from 80 metres
144 metres @ 32.9% Fe from 104 metres
156 metres @ 35.2 % Fe from 92 metres
• Initial DTR test work indicates a concentrate ranging from 65% to 70% Fe and 3.5 to 8.0% SiO2 can be achieved.
• Drill results and DTR results confirm a very large body of magnetite BIF is present at Lodestone which is amenable to standard magnetite separation and concentration processes.
• Further drilling of the eastern limb of the deposit is planned for the coming quarters.

CORPORATE
• Cash reserves at 30 September of A$59 million.
• Share Subscription Agreement with Ansteel finalised following receipt of all necessary Chinese regulatory approvals. 65 million shares issued at 60 cents each to raise $39 million.
• Joint Venture Development Agreement for the Karara Magnetite Project and Mungada Hematite Project signed with Ansteel in September in the presence of the President of The Peoples Republic of China and the Prime Minister of Australia

 

[greenfs]

ASX ANN after close today

31/10/2007 Quarterly Activities Report
http://www.asx.com.au/asx/statistics/showAnnouncementPDF.do?idsID=00777790

HIGHLIGHTS FOR THE SEPTEMBER 2007 QUARTER

KARARA IRON ORE PROJECT (ANSTEEL EARNING A 50% INTEREST)
Mungada Hematite Project
• Resource estimation for the hematite project completed resulting in a Resource of 27.1 million tonnes at 61.7% Fe. Reserve calculation completed resulting in a product inventory of 14.3 million tonnes at 61.5% Fe.
• Bankable Feasibility Study completed resulting in a 6 year life project delivering 3 mtpa of ore and A$184 million LOM free cash flow. This produces a NPV10% of A$79.6 million and IRR of 27.5%.
• New Hematite prospects at BH7 discovered in the regional exploration program.
• Final draft of the Public Environmental Review document submitted to the EPA. Public review scheduled to commence in November 2007.
Karara Magnetite Project
• Reserve calculation completed for first 25 years of operations resulting in an initial Probable Ore Reserve of 497 million tonnes grading 36.3% Fe
• Iron Ore Concentrate of 197 million tonnes grading 68.2% Fe estimated to be contained within the initial Ore Reserve.
• Bankable Feasibility Study completed resulting in a 25 year project delivering 4 mtpa of concentrate and 4 mtpa of pellets. Financial outcomes of the BFS include a NPV9% of A$2.25 billion, IRR of 24.6% and IRRE of 37.5%. Cashflow over the 25 year life totals A$9.3 billion.

REGIONAL IRON ORE EXPLORATION (GINDALBIE 100%)
• Phase 1 drilling completed at the Lodestone Prospect, 50km south east of Karara. Better results include
273 metres @ 33.9% Fe from 80 metres
144 metres @ 32.9% Fe from 104 metres
156 metres @ 35.2 % Fe from 92 metres
• Initial DTR test work indicates a concentrate ranging from 65% to 70% Fe and 3.5 to 8.0% SiO2 can be achieved.
• Drill results and DTR results confirm a very large body of magnetite BIF is present at Lodestone which is amenable to standard magnetite separation and concentration processes.
• Further drilling of the eastern limb of the deposit is planned for the coming quarters.

CORPORATE
• Cash reserves at 30 September of A$59 million.
• Share Subscription Agreement with Ansteel finalised following receipt of all necessary Chinese regulatory approvals. 65 million shares issued at 60 cents each to raise $39 million.
• Joint Venture Development Agreement for the Karara Magnetite Project and Mungada Hematite Project signed with Ansteel in September in the presence of the President of The Peoples Republic of China and the Prime Minister of Australia

Hmmm. Will be real interesting to see which way the sp moves tomorrow. Anyone like to hazard a guess?

 

[Archa]

'The Lodestone Prospect consists of a Banded Iron Formation (BIF) that is about 6 kilometres long, with a similar magnetic intensity to the Karara magnetite deposit (Figure 7). Mapping confirmed that the aeromagnetic anomaly is associated with multiple BIF units interbedded with shale across a width of 500 metres.'


Karara indicates iron ore concentrate 190m tonnes at 68% Fe grading in initial ore.

Mungada 27m tonnes (+ reserve 14m tonnes) at 61% Fe.

Extracting key parts of the quarterly, the way I read Lodestone is:

Lodestone magnetite deposit reported as 6km long, 500metres wide, similar magnetic intensity to Karara, average interval reported at Annex B is 51metres. Using a very basic 1metre cubed = 1 tonne (which it doesn't, it is more) and extrapolating these figures that's 150m tonnes concentrate at 65-70% Fe over the 6km strike.

The drilling to date has confirmed the continuity of the ore body with a width of 150-250 metres (say 200m average), strike of 4 kilometres, and average interval 51metres; that's 41m tonnes confirmed.

Further results are awaited from the eastern side which is more prospective, and the drilling program will continue over the next 2 quarters.

This is very agricultural, happy for anyone to show us how to work the numbers better.

 

[serendip]

Archa, thanks for that assessment. There are a couple of other factors which, I believe, make the net result look somewhat better.

The Karara orebody averages around 35% Fe, meaning that it is better than 50% magnetite. Let's assume 50%, to be reasonably conservative. Magnetite has a specific gravity of just over five, meaning that one cubic metre weighs about 5.1 tonnes. The volume at Lodestone outlined to date (4 km strike, average 200 m width, and average 50m drilled interval thickness) is therefore 40m cubic metres, or at least 100 m tonnes of magnetite, containing about 65 m tonnes of iron metal. If the geology ends up anything like Karara (and the indications are that it is quite similar), then the orebody would be expected to continue to much greater depths than 50m. (Karara appears to go to at least 600m)

Add to that the highly prospective eastern arm, which has yet to be drilled, and it is not hard to surmise that this orebody could contain many hundreds of millions of tonnes.

GBG will be shipping ore for a long time.

Cheers, Serendip

 

[imaginator]

What's GBG share price doing?

The long awaited report is out yesterday.

ASX is at all time high today.

I didnt see much movement.

 

[YNKWRTNC]

What's GBG share price doing?

The long awaited report is out yesterday.

ASX is at all time high today.

I didnt see much movement.

Unless you're a long term holder of this stock (sitting on large profits), now is as good a time as any to sell up and invest in stocks that will at least move north with this strong market.
The Lodestone anti-climax initial drill results seem to have been factored in to the SP, which makes sense, considering the awareness of it happening.
There are the EPA problems to get past and huge infrastructure to set up.
Production a long way away.
Could be a great stock again when all is a bit clearer?
With the iron ore stocks flying high, the old GBG has been left anchored to mid $1.50's.
This all of course my opinion only.
Good luck to all.
You Never Know What's Round The Next Corner

 

[bigdog]

ASX ANN today

Market liked the ANN
GBG $1.615 +$0.105 +6.95 high of $1.64 1,297,210 shares $2,079,117 @ 07-Nov 11:13:25

07/11/2007 New High Grade Magnetite Discovery at Karara
http://www.asx.com.au/asx/statistics/showAnnouncementPDF.do?idsID=00780182

7 November 2007
NEW HIGH GRADE MAGNETITE DISCOVERY AT KARARA

KEY POINTS
• Extensive high-grade magnetite mineralization identified at depth beneath BH2 hematite deposit.

• Davis Tube testwork on this material produces a DR quality magnetite concentrate grading +70% Fe and 2% SiO2.

• Results confirm the Company’s view that the Karara hematite deposits comprise nearsurface supergene ore, marking areas of high-grade magnetite enrichment at depth.

• Ongoing drilling underway to further test this style of mineralization.

• New geological model being applied across the Karara Iron Ore Project, with potential to delineate substantial additional resources of high-grade magnetite.

 

[AussiePaul72]

ASX ANN today

Market liked the ANN
GBG $1.615 +$0.105 +6.95 high of $1.64 1,297,210 shares $2,079,117 @ 07-Nov 11:13:25

07/11/2007 New High Grade Magnetite Discovery at Karara
http://www.asx.com.au/asx/statistics/showAnnouncementPDF.do?idsID=00780182

7 November 2007
NEW HIGH GRADE MAGNETITE DISCOVERY AT KARARA

KEY POINTS
• Extensive high-grade magnetite mineralization identified at depth beneath BH2 hematite deposit.

• Davis Tube testwork on this material produces a DR quality magnetite concentrate grading +70% Fe and 2% SiO2.

• Results confirm the Company’s view that the Karara hematite deposits comprise nearsurface supergene ore, marking areas of high-grade magnetite enrichment at depth.

• Ongoing drilling underway to further test this style of mineralization.

• New geological model being applied across the Karara Iron Ore Project, with potential to delineate substantial additional resources of high-grade magnetite.

I thought there may have been numerous comments and posts on this thread today about the announcement ...... where are you all?
In my opinion i thought todays news was unexpected but a very good and positive announcement. It has the potential to significantly increase the resource size and from the little bit that i understand about the grades, may get a premium in the market for this new resource. Someone else may be able to better explain the implications of these grades to me???