GCR - Golden Cross Resources

[YOUNG_TRADER]

Has anyone been watching this one.

I haven't paid to much attention to this since my last post but with a 24% jump in share price, I wonder if someone knows something I don't..

Has there been much exploring going on lately.

Yeah been watching this one for a few months now

Interestingly it is on the verge of a breakout chart wise

found some interesting stuff in the qtrly about UCG which has really peaked my interest again

Kenna any chance of a chart?

 

[Sean K]

Long term, 2c looked important in hindsight.

Short term breakup from 2.4 ish cents look great, on volume.

Potentially a little flag forming, but to early. If it forms up target on break up 3.5, ish.

 

[YOUNG_TRADER]

lol love the Buro Kennas! heeeeee hawwwwwwwwwww :


I see that the last time GCR poked its head above 3c in April/May 2008 it ran to 6c-7c

given there is very few peeps talking about it my guess is its something the market hasn't fully come to appreciate yet

 

[YOUNG_TRADER]

Here's what I reckon is driving the share price

GCR looks to have pegged UCG grounds near the 2 market leaders for UCG, CNX and LNC

I dont think the market is fully aware of this yet but my guess is once they do become aware ie if GCR release a UCG specific announcement or something I would expect a flurry of interest

 

[d_crome]

Nice work YT - I hold GCR simply for the copper/gold potential, wasn't aware of their exposure to Coal as well.

Given the likelihood of gold and other base metals to rise (especially when the US $ tanks even more when they realize they won't be able to just "print" their way out of this deficit) GCR could be onto something.

I hold skeptically.

On a side note - did you get a forced one weeks "vacation" from another ASX forum site that shall remain nameless? LOL

 

[YOUNG_TRADER]

hey D Chrome yeah dont think many know about GCR's UCG potential

Have always followed the story and liked it because of its huge Copper Gold deposit and now with Chinese backing/funding it looks like its only a matter of time before the wheels for development are set in motion

I also like the diversification
-Phosphate
-Uranium
-IOCG
-Other Copper Gold
-Silver

Many of these projects are farmed out too reducing GCR's expenditure while keeping usually a 15%-20% free carried interest

and yeah a WTF comment got me a vacation

 

[Gekko]

Just running the ruler over this one over the weekend. A number of highlights look to be of interest. The Chinese thirst for raw materials is unstoppable. Any thoughts on how they will fund the copper/base metal project Copper Hill?

 

[refined silver]

Me too! Have always held it for the size of the Au/Cu deposit. Everything else has been a bonus. The amount of royalties it has coming in have also meant it should survive until Au really takes off. Have always held a core holding and traded parcels.

 

[YOUNG_TRADER]

Yeah Copper Hill has a very large NPV but given its low grade of Coper and Gold it will only be very profitable at a gold price of say $1000+/Oz and a Copper price of $3/lb+

Thats not to say that at current prices the project isn't profitable its just for it to be super profitable it requires higher prices, anyway the Chinese like what they see hence why they've decided to back GCR

My guess is funding for the project will only ever come from the Chinese, doubt the company would want to go down equity funding as that would be near impossible

Likewise Id hate to think they'd try and get debt funding, think it the current environment it would be near impossible

 

[Gekko]

What sort of dollars we talking about here to get this gold project off the ground? And whats sort of dollars are we talking about in terms of profit the grdes aren't amazing but the size is impressive?

 

[YOUNG_TRADER]

Copper Hill is big and will have a large NPV at the right commodity prices but will also have large funding requirements and hence GCR being a minnow will only be able to keep a minority stake

However this is not what will re-rate GCR in the short term future, you have to realise that every company that has pursued UCG has been re-rated and re-rated hard


GCR slipped into their quarterly that they were pursuing UCG next to LNC and CNX

"Queensland Coal (southeast Queensland, 165 sq km, GCR 100%, coal)
The Queensland Department of Natural Resources and Mines has offered Golden Cross three coal tenements in the Chinchilla, Warwick, and Dalby areas. Golden Cross has made a further four applications in southeast and central Queensland. These areas may have potential for Underground Coal Gasification (UCG), a well-understood technical process by which coal beds can be treated, by heating in situ, to produce syngas which can be further refined to produce fuels such as synthetic diesel. While the technical aspects of the process are well known, full scale application is in its infancy. Golden Cross intends to carry out initial test work to determine the suitability of its new areas for treatment by UCG."


My guess is that sometime soon GCR will do a follow up announcement to do with its UCG and that this will most likely catch the market off guard and on that day the stock will get re-rated so I am patiently buying and accumulating waiting for that re-rating

 

[YOUNG_TRADER]

I saw someone asking about GCR's UCG on CNX and just so there's no confusion this is not something I've heard or am expecting or anything like that

Its something I discovered in their latest quarterly report on the bottom of page 4 and the top of page 5

http://www.goldencross.com.au/Quarter/Qtly2009/PDF/140709.pdf

here is the direct quote

"Queensland Coal (southeast Queensland, 165 sq km, GCR 100%, coal)
The Queensland Department of Natural Resources and Mines has offered Golden Cross three coal tenements in the Chinchilla, Warwick, and Dalby areas. Golden Cross has made a further four applications in southeast and central Queensland. These areas may have potential for Underground Coal Gasification (UCG), a well-understood technical process by which coal beds can be treated, by heating in situ, to produce syngas which can be further refined to produce fuels such as synthetic diesel. While the technical aspects of the process are well known, full scale application is in its infancy. Golden Cross intends to carry out initial test work to determine the suitability of its new areas for treatment by UCG."

 

[swm79]

I saw someone asking about GCR's UCG on CNX and just so there's no confusion this is not something I've heard or am expecting or anything like that

Its something I discovered in their latest quarterly report on the bottom of page 4 and the top of page 5

http://www.goldencross.com.au/Quarter/Qtly2009/PDF/140709.pdf

here is the direct quote

"Queensland Coal (southeast Queensland, 165 sq km, GCR 100%, coal)
The Queensland Department of Natural Resources and Mines has offered Golden Cross three coal tenements in the Chinchilla, Warwick, and Dalby areas. Golden Cross has made a further four applications in southeast and central Queensland. These areas may have potential for Underground Coal Gasification (UCG), a well-understood technical process by which coal beds can be treated, by heating in situ, to produce syngas which can be further refined to produce fuels such as synthetic diesel. While the technical aspects of the process are well known, full scale application is in its infancy. Golden Cross intends to carry out initial test work to determine the suitability of its new areas for treatment by UCG."

thanks YT... loveing your commentary on this one.

I'm holding both CNX and GCR so any upwards movements in either of them is welcomed

just wished i had have gone harder into CNX when i initially bought in.... while i think it has much more to move, i would have loved to see some more full profits from my initial entry point.

hoping GCR will get some good results from the UCG tenements they have too... like you said - the announcement and the subsequent re-rating will do wonders for this minow

 

[sall123]

a lot of these miniing stock are quickly making 100% easily in one day. A great way to get a quick . But does risk outweigh reward?

 

[YOUNG_TRADER]

If you look at mot of the kind of stocks I like to back there stocks which I feel will give you a re-rating opportunity such as MAT LOD LBY LKO BUY sure there are others that are yet to move or re-rate such as MEL or WCL or BMY but I am hopeful that in time the fundamentals I see withing the stocks will offer a re-rating opportunity

For GCR I see the UCG as being the catalyst for a re-rating and whether it happens to re-rate 100% and hold for weeks or just re-rates 100% for a day it still gives us the opportunity to profit

As for risk vs reward, with Chinese backing and a whole suite of other projects and commodities I see GCR as one of the lower risk mining minnows

 

[Gekko]

Was just looking at GCRs history and I would assume given what they have done in the past with non core projects (read any project other than that main Copper Gold deposit) and considering I doubt if they are skilled enough to operate UCG a farm out is probably on the cards yeah YT?

 

[YOUNG_TRADER]

Breaking out as we speak

Just hit a new high of 3.4c

Once 3.5c goes not much till 4c

I smell UCG :

 

[YOUNG_TRADER]

Was just looking at GCRs history and I would assume given what they have done in the past with non core projects (read any project other than that main Copper Gold deposit) and considering I doubt if they are skilled enough to operate UCG a farm out is probably on the cards yeah YT?

Sorry just saw this

Yeah I reckon farm out is definately what they will do or a JV, some say its silly but I say its smart as it keeps expenses low and allows them to be free carried with a 10%-20% interest in the project

My guess is CNX would be the most likely JV partner

even though LNC are closer (see image) CNX seem to be more pro-active ie they signed a JV with LBY for UCG, just a guess though

 

[YOUNG_TRADER]

few buyers coming in, I reckon GCR may get a nother leg up on the back of URL's merger with VCN as URL's Roseby and GCR's Copperhill are comparable deposits




URL 128Mt's@ 0.68%Cu+0.06g/tAu = 880kt's Cu + 240koz's Au

GCR 133Mt's@0.31%Cu+0.28g/tAu = 420kt's Cu + 1.2Moz's Au


IGV's using $950 US Gold $2.60 Cu and 80c AUD/USD

URL's IGV = $6.7B

GCR's IGV = $4.5B

Gold is up alot more than copper, so I like the fact that although GCR's Copper grades and thus content is half that of URL's its Gold grade and thus gold content is about 5x as much as URL's"

Will wait to see what the exact details of URL's and VCN's merger is to use yardstick deposit valuation calcs

 

[Gekko]

Took an entry today at 3.2 and 3.1cents. Most of resource/materials sector portfolio is weighted towards Copper and Gold. Ive noticed accumulation at around 3-3.5cents, and once 3.5cents is cleared, a move to 4.5cents is likely.