GCR - Golden Cross Resources

[Sean K]

Could come under pressure Mon with the ann as the last notice about hole 190 having 2-3 % chalcopyrite seems to be overestimated.

However, overall still positive for the long run with mineralisation confirmed through the depth of the hole which pretty much confirms that the Copper Hill deposit will be extended out to 800m north of the current resource envelope, with still further potential with the drilling only just commenced.

They recently upgraded the resource by 30% and this finding could significanty increase it again. Seems to have a lot of potential to surprise n the upside.

holding

 

[Alfredbra]

looks like ann. didnt attract to many buyers. down today

 

[Archinos]

OK- managed to run over what info I could find btw coffe breaks.
Templates for Copper Hill are of course Newcrests Cadia Hill (open cut) & Ridgeway (underground). First point is Cadia, Ridgeway & Copper Hill are in the same geological settings/rock packages (good). Cadia & Ridgeway are low grade but economically viable due to 'economies of scale' (Cadia 281Mt+ @ 0.64gt Au / 0.17% Cu for 5.9 MozAu & 476 kilton Cu; Ridgew 73Mt+ @ 1.76 gt Au / 0.62% Cu for 4.1 Moz Au & 450 kilt Cu)- they are also principally Au (important distinction with Copper Hill).
I'm a little confused with current figures being quoted for GCR but I'll run with 8-08-06 rpt showing (indicated & inferred) 136Mt @ 0.32 gt Au / 0.33% Cu for 1.4 Moz Au & 455 kilt Cu.
Hiving off hole 190 & 'new' porphyry target domain for a minute, you can see at current Au grades CopHil is not in the same league as Cadia. It is however returning much better Cu grades. While CopHil may have infrastructure, metal chemistry etc, IMO what makes Cadia work is the amt of Au (and production cost in 2005 were ard $400 oz, but probably much higher this yr). Take this with a grain of salt, but on it's own right now I'd see this as marginal as too much is weighted towards low grades & bean counting; a play such as CDU holds much better prospects/grades even though their drilling is not as advanced (and Cobalt is on the rise too).
I don't know the mind of the market, however it seems obvious there's been a lot of anticipation (board at least...) of further discovery aka Ridgeway type deposit - hence the previous touting of hole 190. (Ridgeway: undergroung op, 500 m below surface, 3 km NW Cadia; volcanics & mineralised porphyry intrusion; 2005 prod costs <$100 oz; infrastruct benefits from Cadia).
Interesting to note in 15-8-06 announc description of this hole in a different (?) type of porphyry - more potassic etc - but I'm not sure if this is the alteration. Good to note however that rather than discrete qtz veins, mineralisation is 'disseminated' and there is mention of a breccia. Brecciated (good fluid pathway; chicken or egg as to whether fluid helped break up the rock or exploited this pathway), hydrothermally altered (fluid altered) is a great target. It is a pity that this target (magnetite/chalcopy/pyrite) may be too deep for standard quick & dirty & cheap geophysical surveys (eg Induced Polarisation); if the volcanic rock types include basalts (as at Cadia?) that might also rule out much of the geophysics. While it's only one hole, future Au values have to be much better to be in the same league as Ridgeway.
Strange to see discussion of scissoring a hole or dropping a vertical one. Indication of how little they knew of it at the time?
Hope this helps, I've got to get back to work.

 

[Sean K]

Yep, as expected. Bounced off $0.081 which is minor support. Quite a few buyers coming in to pick it up around $0.084 which is encouraging. Wouldn't be happy with it slipping back through $0.08, but with such a rapid gain anything's possible on bad news.

As I said earlier though, I'm not trading this one short term, just sitting on the upside potential of CH. I'm hoping it turns into a 1.5 oz + resource (over 2m would be nice but a bit blue sky) after this new extention is factored in.

 

[Alfredbra]

arghh shouldve sold on friday, all im seeing in my portfolio is red red red! why are all my stocks down today I plan to hold long term also, there is hope

 

[Archinos]

kennas
so you are looking at this as an Au resource, not a Cu one?

 

[Sean K]

kennas
so you are looking at this as an Au resource, not a Cu one?

Yeah I have been, probably to error. I get too excited when I see the letters Au......and don't see anything else. he, he. Best I look a bit closer.

 

[Archinos]

Yeah I have been, probably to error. I get too excited when I see the letters Au......and don't see anything else. he, he. Best I look a bit closer.

No worries, so do I. Precious metals and energy...
Well they do have approx 1.4 Moz Au and counting (including the Cu it's 4.7 Moz 'Au equivalent'), so the balance is they'll be adding to that before long given that it's very early days. Whether it's economical or not to mine is another question. That's why I pointed to Newcrests Cadia - Cadia has half the Cu grade, twice the Au. It cost Newcrest approx $400 oz to produce in 2005 (I'm assuming it's including Cu as 'Au equivalent') and I can only see costs increasing this yr). At A$10K a metric t for Cu, that's lots of doh for CopHil (455 kilot), but I'll leave it to others with the right slide rules to work out if a mine might be a goer or not.

 

[Sean K]

No worries, so do I. Precious metals and energy...
Well they do have approx 1.4 Moz Au and counting (including the Cu it's 4.7 Moz 'Au equivalent'), so the balance is they'll be adding to that before long given that it's very early days. Whether it's economical or not to mine is another question. That's why I pointed to Newcrests Cadia - Cadia has half the Cu grade, twice the Au. It cost Newcrest approx $400 oz to produce in 2005 (I'm assuming it's including Cu as 'Au equivalent') and I can only see costs increasing this yr). At A$10K a metric t for Cu, that's lots of doh for CopHil (455 kilot), but I'll leave it to others with the right slide rules to work out if a mine might be a goer or not.

I think I'm generally focussing on gold and uranium as I'm a little bearish atm. Cautious anyway.

 

[Sean K]

Yep, as expected. Bounced off $0.081 which is minor support. Quite a few buyers coming in to pick it up around $0.084 which is encouraging. Wouldn't be happy with it slipping back through $0.08, but with such a rapid gain anything's possible on bad news.

As I said earlier though, I'm not trading this one short term, just sitting on the upside potential of CH. I'm hoping it turns into a 1.5 oz + resource (over 2m would be nice but a bit blue sky) after this new extention is factored in.

Broken through support at $0.08, hopefully parachutes utilised, unless your long term. Next stop .07 and .06....

 

[Sean K]

Another good ann yesterday with another good intersection north of the main deposit at Copper Hill.

This will significantly upgrade the resource estimate when they've done enough drilling for JORC imo. Looking like it could be 2m+ oz gold resource, putting it up there as one of the bigger deposits n Australia.

Stabilised after the excitment of the massive intersection announced in early Aug at just over $0.07 with what seems to be support around this level.

 

[Alfredbra]

GCR might be going for a run if it breaks .64c news bound to be out soon from copper hill.

just starting to follow this stock again, opinions anyone?

 

[Sean K]

Well, this has had a pretty crappy run since all the excitement of the significant Copper Hill intersections in early August.

Driven straight down through technical support lines to it's recent lows. Can't work out why tis has been punished so much when they have 4.7m oz total gold and 450K tns copper JORC in the ground and the clear potential for furthe upgrades. Just the gold is worth $2.8 bn.

They have 409m shares on issue and 55m oppies at about $0.10, giving it a market cap of about 27.2m.

What am I missing here? I know it's going to cost a few dollars to dig the stuff out of the ground but it's sitting on a rail line and Cadia Ridgeway (30m oz au) is just down the road and the town of Molong is just over there!

 

[Sean K]

Good ann this am. Copper Hill just keeps getting better.

 

[Kipp]

Struth... I thought it time someone else put a post on here just so you don't start quoting and debating yourself!

Thought cracking 40 on the RSI was a major breakthrough for GCR when SP started to creep up last week, but apparently not, as it's on the slide once again... (Forgive my lame Yahoo charts!)

What's your outlook like for copper Kennas? I've got to say I'm pretty bearish, LME stocks are on the up and I'm not sure that there's the same underlying demand (specualtion aside) as Zinc/Nickel enjoy (just an opinion).

 

[Sean K]

Struth... I thought it time someone else put a post on here just so you don't start quoting and debating yourself!

Thought cracking 40 on the RSI was a major breakthrough for GCR when SP started to creep up last week, but apparently not, as it's on the slide once again... (Forgive my lame Yahoo charts!)

What's your outlook like for copper Kennas? I've got to say I'm pretty bearish, LME stocks are on the up and I'm not sure that there's the same underlying demand (specualtion aside) as Zinc/Nickel enjoy (just an opinion).

Kipp, I have a copper bear suit on. Very negative after it slid through critical support on Friday. This led to today's massacre of BHP, amongst others.

However, the thing about GCR is that all the resource dev has been done assuming copper and gold and much lower levels. And while copper is a key part of the resource there's a substantial amount of Au there. I only looked at this for the gold originally. With the recent digging I can see another resource upgrade on the cards and gold going to 1000 bucks (fingers crossed), and this unhedged, it could be a pure gold play. Copper is a bonus to me on this one.

Must admit my average entry is about $0.052, and there's limited downside with the quality of the ground.

I'm holding.

PS, nice chart Kipp.

 

[Sean K]

GCR has been extremely boring the past month. Boring!

What will pick it up soon is the next set of drilling results and perhaps a revised resource estimate and an approximate date set for the PFS on Copper Hill. Now that will be exciting!

This should happen very shortly. Before Chrsitmas, but they seem to come out with an ann each month and the last one stated that there was a whole pile of ore at the shop waiting to be tested. Plus a few drill samples from one part of the last drill program that were yet to be treated. I guess, before the end of next week. It has to because I have it in the stock comp!!!!!!

I bought more around these levels because I just can't see it going any lower, and the chart seems to support that.

 

[CanOz]

Agree Kennas, another one whos flat trend shows a reluctance to sell anymore. I like these.

Cheers,

 

[Sean K]

Unusual volume and gain this am. Up to $0.06 - 11%. Odd. Chart to follow. More results must be about to come out from CH.

 

[Sean K]

Unusual volume and gain this am. Up to $0.06 - 11%. Odd. Chart to follow. More results must be about to come out from CH.

Well, as quickly as it went up, it fell back down.