GCR - Golden Cross Resources

[Sean K]

Golden Cross Resources (GCR) is a gold and base metals explorer searching for large deposits in highly prospective mineral belts.

GCR's primary focus is the Copper Hill Project in central NSW strategically located near NCMs Cadia deposit. Copper Hill has an Indicated and Inferred Resource of 136 million tonnes containing 455,000tns copper and 1.4m oz gold.

Today it announced a major drill intersection 400m to the north of the current resource envelope and similar to the Cadia mineralisation.

The management of GCR are very conident that further drilling will uncover more and higher grades within the region. This would significantly increase the resource estimate.

Systemaic drilling is to commence in the area immediately.

This project seems to have significant upside to me. I bought this as a trading stock a little while ago, but since their past 2 anns, I'm holding to see just how big this deposit can get.

Seems to be heading up on the charts and broken through $0.07. The next few reports should continue to drive the sp up imo. As I said, holding.

http://www.goldencross.com.au/Main/home.asp

 

[CanOz]

Where's a good stop for a small position, 4.7?

 

[Sean K]

Prabably depends where you come in at and your trading plan.

Do you have a 'plan'?

When trading I try not to lose more than 10% on speccie stocks, or 5% on a blue chip.

Or, you could be trading support and resistance lines.....

I had a stop on this at $0.052, but took it off after the recent anns. I might move it up, but I think it's got some potential and I might just let it go. I'd probably consider buying more if it drops back to those levels.

Be aware, this is still a speculative stock. The recent drilling results could be just anomolies and there may be not a bit more gold in that there hill. However, I believe this is unlikely.

 

[CanOz]

Yes i do have and use a trading plan.

I might try to pick up some GCR up if it drops a bit today.

Thanks,

 

[edogg75]

From mining news.net:



Golden Cross has been stalking Australia for more than 10 years, pegging exploration tenements with undoubted potential. However, timing and commodity pricing have, until now, foiled any attempts to take a discovery into development.

The company's 105 million tonne Copper Hill deposit, grading 0.33% copper and 0.33 gram per tonne gold, has been deemed too low grade and therefore too marginal to be developed by many.

Golden Cross managing director Kim Stanton-Cook agrees the grades are low, but is confident the project setting and metallurgical factors will prove the difference between a moneymaker and a money pit.

"Copper Hill is one of those projects that people have previously failed to appreciate," Stanton-Cook told RESOURCESTOCKS while onsite at Copper Hill.

"It can be made to work despite the fact that it is a relatively low-grade deposit, and if we can produce 30,000t of copper a year and 60,000-80,000 ounces of gold each year at reasonable costs, then GCR will be a company that people can invest in."

Stanton-Cook was reluctant to speak of the economics required to make Copper Hill work before completing a scoping study, but said the cost indicators to this point gave him every confidence in the project.

Copper Hill is near the regional centre of Orange, adjacent to the Mitchell Highway, and just 45km north of Newcrest's massive 281Mt Cadia Valley gold-copper mine.

In essence the project has access to a ready workforce, established infrastructure and a proven geological setting (Copper Hill and Cadia both occur on the Molong Volcanic Belt) – an awesome position for any potential operation.

"We can see an economic model that's rational and reasonable, that doesn't require outrageous copper and gold prices because we've got a low strip ratio, good metallurgy and good infrastructure," Stanton-Cook said.

"You couldn't make this thing work if it was sitting out 40km from Alice Springs – you wouldn't even think about it – but because of where it is it can be made to work."

The prize within the established infrastructure is a decommissioned railway "in quite good nick", which runs up to the base of Copper Hill.

"From there, it is just a simple matter of refurbishing the rail to allow us to take the product the 5km down to the trans-Australia line at Molong. That's one alternative, the other is that we may simply truck the product down to the line," Stanton-Cook said.

He said other major advantage the project had was its metallurgical qualities. Metallurgical work returned so far has been excellent, and when combined with a very low strip-ratio, it equals cost-efficient ore processing.

"We've got very encouraging results from our earlier metallurgical work and we've got more to do," Stanton-Cook said.

"We're hoping to achieve high recoveries and we're fairly confident that with that material, we will have a relatively high grade and very clean concentrate. We'd be looking to produce concentrate at 30% copper and around 60gpt gold.

"We're looking at better than 90% recoveries for both copper and gold – the initial studies showed high 90s for copper and low 90s for gold – and we will be looking at getting a mill that will be recovering better than 90% for both metals.

"It's very clean and there's no indication we'll have any contaminants, which should make it attractive to buyers."

Stanton-Cook was in the midst of site tours for potential offtake partners and other would-be suitors for the project when he spoke to RS and said "all options were on the table".

The presence of infrastructure and a solid processing outlook are vital for Copper Hill's development into a producing mine down the track. But Stanton-Cook is not counting his chickens.

Rather, he insists the focus for the time being remains on a 15,000m RC (reverse circulation) drilling program in progress, which is concentrated on proving up the resource and identifying possible extensions.

A scoping study will be completed in tandem with that drilling. Both the drilling and scoping study are expected to be tied up by the start of October, with a pre-feasibility complete by the end of the year.

"If everything is positive, then we look forward to doing a full feasibility stretching right through 2007," Stanton-Cook said.

He said the project would receive intensive drilling throughout 2007 to reach the bankable stage.

"We really need to get the drill density up to the point where we've got measured and indicated resources. At the moment, we've got 75% inferred and 25% indicated resources, and a nominal drill spacing of 100m by 50m that needs to come down to 50m by 50m and, at places, 50m by 30m to get us to the status that we would like to be."

Permitting, approvals and engineering process will be started in 2007 and the start-up date for mining is set for 2010.

The mine life is 10-15 years, however, with a number of early stage nearby exploration targets yet to be seriously tested, Golden Cross is hopeful of extending the mine's existence. The company holds 15km of contiguous tenements along the Molong Volcanic Belt within the Copper Hill project area.

"I've said from the outset that we would continue to explore Copper Hill to add value," Stanton-Cook said.

"It is our hope that we will be able to add to the existing resources as we go along but at this stage, we're unable to point to a particular target and say what it might add because all the previous work, and work we've done, has been preliminary.

"There's been soil sampling, there's been shallow RAB [rotary air blast] drilling – some of that hasn't been terribly effective – and we need to go back and do some deeper drilling in some of those areas."

The current infill program has already branched the resource out further, with hole 107 hitting mineralisation that has not been included in the optimised pit. That hole hit 196m grading 0.8gpt gold and 0.46% copper from 154m with more assays to come.

"When we're drilling this infill program, we're adding to the project, not just confirming it, and we're coming up with quite good numbers in Copper Hill terms.

"All these infill holes are adding to the resource and adding to our confidence in the project."

 

[Sean K]

Anothe good ann today with a far in from Zinifex on the Wagga project. All seems to be happening atm.

Climbed through $0.08 today and holding for now, hopfully breaking the resistance noted there.

Looking forward to further anns regarding the extent of mineralisation at Copper Hill North.

 

[edogg75]

Nice non-copperhill ann today has the SP going up. Zinifex can earn a 51% interest in the project by spending $550,000 on exploration over the next 4 years.

The copper hill project is due for a resource update soon, and yesterdays ann indicates that the old figure (344,000t cu, 1.12moz au) may be significantly eclipsed.

From miningnews.net:

Rock solid find for Golden Cross

Ben Sharples
Wednesday, 16 August 2006

JUNIOR explorer Golden Cross Resources has hit "Cadia and Northparkes-style porphyries" 400m north of the main deposit and outside the optimised pit of its Copper Hill project in New South Wales.

Golden Cross said the first deep drill hole at Copper Hill North has hit a new zone of disseminated, and some massive, copper mineralisation extending for more than 460m down hole.

Managing director Kim Stanton-Cook told MiningNews.net yesterday the area looks like a new structural domain, which was recognised from detailed mapping the company has been carrying out for the past couple of months.

"We appear to have drilled into a much more potassic porphyry … which is more like the porphyries that you see at Northparkes and Cadia, and it's something that we've always felt we were missing and now we think we've got one," he said.

"It just happened to have quite a lot of copper associated with it, so effectively we've got normal Copper Hill mineralisation that is fairly low grade from 12m down to about 270m.

"For the next 200m beyond that, we've got this strongly disseminated and massive chalcopyrite magnetite and we're starting to get into some more pyrite towards the end of the hole, but there is still a lot of finely disseminated pyrite in the intersection.

"We'll keep that hole going through to about 500m, which is about the limit of the rig."

Assays are expected within three to four weeks.

"We'd love to know what it's running on and in particular we'd love to know what the gold grades are, so there is a bit of blue sky in there at the moment," he said.

"That will be our next main drilling target until we've defined it because you have to chase your best targets, and this drill hole has created an excellent target. We're debating now whether to put a scissor hole to come back from the other side to try and define in that direction or whether to go vertically down."

Golden Cross is currently conducting a scoping study at Copper Hill looking at a potential 10 million tonne per annum operation producing 25,000tpa of copper and 80,000 ounces of gold, and possibly costing somewhere in the order of $A250 million.

Copper Hill is around 40km from Newcrest Mining's Cadia operations near Orange.

END ARTICLE

IMO, GCR is going to be a big mover over the next few months. There is a bunch of publicly traded options that expire on 30 sep 06 at a exercise price of 5c, and I believe that management will be trying to release as much positive news as possible before that deadline.

I hold GCR and GCRO

 

[Sean K]

GCR forming a couple of nice pennants on poles which is normally a bullish formation, backed by their recent good anns on Copper Hill. Watch volume for next spike. Probably need some more good news to continue pattern.

Pennants are very similar to symmetrical triangles except that they generally occur over a shorter time frame and tend to be asymmetrical, although they don't have to be. They also offer more of a bias to continue in the underlying direction than triangles and can be recognised by their squat or squashed corrective nature. They are often best distinguished by the presence of a pole, a vertical move to which the pennant attaches itself.

Construction is effected by drawing a resistance line sloping down across the tops of the corrective price bars, generally starting at the recent high. The lower side of the pennant is drawn as a straight line across the bottoms of the corrective price bars.

Pennant in an up trend

There is a greater probability for price to break out of the pennant to the high side. Nevertheless a break down from the pennant would have also generated a valid signal, but a signal to sell.

 

[edogg75]

keep an eye on GCR and GCRO (ex 5c, 30/09) this morning. Relatively large buying on the heads. Options at a steal. Up 6% so far.

 

[Sean K]

Up 9%. Seems those pole and pennants were a good indicator.

 

[Sean K]

Golden Cross Resources (GCR) is a gold and base metals explorer searching for large deposits in highly prospective mineral belts.

GCR's primary focus is the Copper Hill Project in central NSW strategically located near NCMs Cadia deposit. Copper Hill has an Indicated and Inferred Resource of 136 million tonnes containing 455,000tns copper and 1.4m oz gold.

Today it announced a major drill intersection 400m to the north of the current resource envelope and similar to the Cadia mineralisation.

The management of GCR are very conident that further drilling will uncover more and higher grades within the region. This would significantly increase the resource estimate.

Systemaic drilling is to commence in the area immediately.

This project seems to have significant upside to me. I bought this as a trading stock a little while ago, but since their past 2 anns, I'm holding to see just how big this deposit can get.

Seems to be heading up on the charts and broken through $0.07. The next few reports should continue to drive the sp up imo. As I said, holding.

http://www.goldencross.com.au/Main/home.asp

This has climbed much faster than anticipated and smashed through previous resistance levels on increased volume. Must pull back sightly to consolidate, but definately being rerated after recent positive anns.

One to watch on pull back, because further results from CH will be forthcoming in the next few weeks I'd assume.

 

[edogg75]

Copper Hill scoping study is due before the end of the month Kennas.

 

[Alfredbra]

got into GCR and GCRO last week, today was an excellent day for both of them. in you opinions what sp do you think GCR will be at the end of the month?

 

[Sean K]

I want some consolidation as I have this as a longer term play. So, happy where it is right now!

Can't put a figure on it because we don't know how much gold and copper is in the Hill. Could be anywhere bewteen 1 and 2m oz Au atm.

 

[Sean K]

Up 11% on 4m vol early. Doubled in 3 weeks.

 

[Alfredbra]

very happy with this stock, 60% up from entry which i cant complain about that! i expected today to see some big sellers however the sp went up again a huge amount!

 

[ahspritemk]

I got out of gcr 3 weeks ago

 

[Alfredbra]

copper hill update annoucement released this afternoon. market reacted negatively? anyones opinions plz?

 

[tasmanian]

announcement came out at 4.07pm

see what happens monday.things looking good here.long term could be v good

 

[Alfredbra]

oh i see didnt know the specific time but only that it was sometime this afternoon