GCR - Golden Cross Resources

[Whiskers]

I was getting a bit depressed about this one, but I found a some news buried in the annual report released on 12 Sept to be a little optermistic about.

I didn't notice these encouraging gold intersections from the power anomoly reported anywhere else.

The Power Anomaly, about 2 km southeast of Copper Hill, was
discovered by the recent IP survey and has been tested by only
one hole, to a depth of 420m. Only trace chalcopyrite was
observed, but gold grades of 1.5 g/t were returned over two 5m
intervals. Surface rock chip sampling yielded up to 7 g/t gold
from an area, adjacent to the south of the IP anomaly, with
elevated copper values in soils.

Hopefully, a hive of drilling activity soon.

Drilling is scheduled on six GCR properties subject to farm-in or joint venture prior to 31 December 2007. In addition, GCR plans to
drill on at least three properties not subject to farm-in or joint venture.

including;

Stratigraphic and structural settings
documented at Woodlawn have been identified within parts of
the Cullarin licence. Tri Origin Minerals has farmed into the
tenement and plans to drill the property in September 2007.

and the Mulga Tank uranium and nickel prospect which was aborted in Aug to obtain a heavier duty drill rig.

 

[Whiskers]

Looks like a bit of a bollinger band squeeze forming.

Surely it has to break upwards, doesn't it?

Hey moses, are you still watching this one with that neilsen SMA?

 

[Whiskers]

Traded .039 to .04 up .003 against the market on modest increase in volume today. Highest volume for about three weeks. Got a DMI cross over too.

Smells a bit like something about to happen.

 

[Uncle Festivus]

Unfortunately there appears to be one sector of the market that has just died in the ars* basically - the junior explorers. Unless & until some extremely good news comes out, the volumes of the previous bull market just won't be around to move the sp's any significant distance. There could also be a flight to quality stocks also, to the detriment of the juniors, especially those who need to go back to the market for funding.

The only bright spot is if they are exploring for gold, or in GCR's case have multiple projects in hand and possible mining not too far in to the future.

 

[Whiskers]

Unfortunately there appears to be one sector of the market that has just died in the ars* basically - the junior explorers. Unless & until some extremely good news comes out, the volumes of the previous bull market just won't be around to move the sp's any significant distance. There could also be a flight to quality stocks also, to the detriment of the juniors, especially those who need to go back to the market for funding.

The only bright spot is if they are exploring for gold, or in GCR's case have multiple projects in hand and possible mining not too far in to the future.

You're quite right Uncle Festivus. I thought there might have been something starting yesterday, but the volume and price died today, as you say no doubt for quality producers.

I believe their cash will get them through this next quite big round of drilling then they will most likely have to go the shareholders for funds.

I wasn't looking foreward to putting more cash into them without seeing some sort of gain. I took some profits in July. I'm kicking myself that I didn't sell all of them in July.

I suppose one conselation is that I might as well hold them for another couple of months and claim the 50% CGT discount.

 

[Uncle Festivus]

Whiskers,
I'm thinking that the figures for Copper Hill are starting to look even better now with the recent surge in the POG. Their 3 case scenario for various gold prices is now well and truly into the upper valuation over $700 giving the project a NPV over $900 million. Assuming they can temp a joint venture partner, their interest will get diluted, but it still should be a nice little earner, esp with the share price where it is.
UF

 

[Whiskers]

Whiskers,
I'm thinking that the figures for Copper Hill are starting to look even better now with the recent surge in the POG. Their 3 case scenario for various gold prices is now well and truly into the upper valuation over $700 giving the project a NPV over $900 million. Assuming they can temp a joint venture partner, their interest will get diluted, but it still should be a nice little earner, esp with the share price where it is.
UF

I agree, Uncle Festivus. When I did the sums ages ago the most $ value was in copper, but it seems that people were unsure if the copper price would hold to keep the project vialbe. While fustrated with the company, and taking some profit earlier, I was always confident that the copper and gold price combination would keep the project viable, hence I could only bring myself to sell 1/3 of my holding.

But, as you say, the POG will attract a lot more interest and if it holds for a substantial period, which I'm inclined to believe it will, it not only gets peoples attention but transforms it from a marginally profitable project to a very reasonably profitable one.

 

[Uncle Festivus]

Another thing to factor in is the number of active drill campaigns going on or about to start within the next qtr - no less than 9 separate joint venture and own drilling projects. Good odds at this price I think.

 

[Whiskers]

GCR's JV partner TRO made the following announcement on 5 Sept 07.

JV partners often replicate the notices, but for whatever reason GCR didn't with this one.

Tri Origin Minerals Ltd (Tri Origin) is pleased to announce exploration drilling will commence this week within the Cullarin Project Joint Venture area located approximately 30 kilometres north of its Woodlawn Zinc-Copper Projects site in New South Wales.

This initial programme of reverse circulation drilling to be thereafter followed up by deeper diamond drilling is focussed on the Cullarin Valley Prospect located towards the southern end of the Joint Venture area (Figure1).

The exploration objective for this prospect is to either identify a standalone project development opportunity or provide an alternative site for the Woodlawn Retreatment Project plant (+1.5 Mtpa) once tailings retreatment at Woodlawn is complete. At the Cullarin Valley Prospect good potential exists for the delineation of a large low grade Au-Ag-Cu-Pb-Zn deposit (Figure 2) as well as higher grade zones within this extensively mineralised envelope.

Work by previous explorers indicates the target mineralisation has a strike length of over 1 kilometre and a true width up to 150 metres. In recent years we have seen the development of large scale low grade operations in the Lachlan Fold Belt of New South Wales and this area may offer a similar exploration opportunity.

In preparation for the current drilling programme of approximately 1000 metres the Company has compiled and validated the drillhole database for the Joint Venture area. Preliminary 3D modelling of the geology and mineralisation indicates that the Cullarin Valley Prospect remains open in all directions.

Short term objectives for the drilling programme are to locate the interpreted faulted offsets and near surface extensions to the east and thereafter through deeper diamond drilling begin to scope out the depth potential of the prospect to the west, ultimately leading to resource estimation.

The Cullarin Valley Prospect is the first prospect within the Joint Venture area being appraised by drilling, however, based on the results by previous explorers several other areas are considered by Tri Origin as highly prospective.

Under the terms of the joint venture Tri Origin may earn a 51% interest in EL 6292 from Golden Cross Operations Pty Ltd by expending $200,000 within a four year period. The Company views this drilling programme as providing the opportunity for early success in the Woodlawn region away from the existing resource inventory of the Company.

For further information, contact Bruce Robertson on (02) 9221 4322.
Yours faithfully,
Bruce Robertson
Managing Director

 

[Whiskers]

I posted a breakout alert in the breakout alert thread for GCR last week, more on fundamentals, but supported by the charts. Normal volume today, but there certainly seems to be a willingness to pay a bit more for them now.

I would suggest that the POG gaining strength and copper holding above $3.50 is starting to get people thinking copper hill is now becoming a very profitable operation if it can gear up to production quickly. If these prices hold for a few years as some reports suggest, then the whole 1.2m oz's of gold and about .421m t of copper might be mined profitably.

Then there are about nine prospects currently drilling or to be drilled before the end of year.

I have felt this one has been undervalued for quite some time, but with the new acquisitions lately it must surely be worth considerably more if the new prospects continue reporting results as previously.

Only another week and I get the 50% CGT discount on the first lot I bought.

 

[Uncle Festivus]

It's on the move Whiskers by the looks, even on a down day for the rest of the market - up 15%.

 

[Whiskers]

Looking like people are starting to notice alright, uncle festivus.

I just had another look at the diagram provided by TRO with their notice I posted above. There has not been an awful lot of drilling so far but it's not hard to see why TRO thinks there is potential for a significant gold and base metals operation to supplement their current operation nearby.

The two better holes are:

WL31: 147.4m @ 1.06g/t Au, 8.4g/t Ag, .19% Cu, .03% Pb, & .11% Zn.
including 14.6m @ 5g/t Au, 1g/t Ag.

WL24: 110.2m @ .63g/t Au, 7g/t Ag, .04% Cu, .29% Pb, & .48% Zn.
including 11.3m @ 3.9g/t Au, 24g/t Ag, .06% Cu, 1.61% Pb, & 2.17% Zn.

 

[Trader Paul]

Hi folks,

GCR ... looking for a BIG spike in price, between 29102007 and 02112007 ...

happy days

paul



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[Uncle Festivus]

Hi folks,

GCR ... looking for a BIG spike in price, between 29102007 and 02112007 ...

happy days

paul



=====

Hi Paul,
I know you base your study on astro stuff, but would it be possible to add a bit more info eg how big is BIG? Post an astro chart maybe so we can see where you are coming from? Doesn't need to be a complete/in depth explanation , just something to shed some light on the logic of it all? Technically, going by the forum rules, it's a ramp?
Thanks,
UF

 

[Whiskers]

GCR is starting to raise more funds already. Since they still have about $5m in the bank, I would have thought they would have got some drill results posted first rather than announcing it on the bottom of their share price when they have so many projects to kick off.

25 October 2007
Share Purchase Plan
Golden Cross Resources today announced that it intends to implement a share purchase plan (“the plan”). Under the plan, shareholders with registered addresses in Australia or New Zealand who are on the share register on Thursday 1 November 2007 will be entitled to subscribe for up to $5,000 dollars worth of fully paid ordinary Golden Cross shares at an issue price of 3.75 cents per share. This price represents a discount of 11% to the weighted average price of Golden Cross shares over the ten trading days up to and including Wednesday 24 October 2007.

Letters of offer will be sent to shareholders on Friday 2 November 2007.

The plan will provide all shareholders with an opportunity to purchase shares in the Company at a discount to the current market price. The shares may be purchased without brokerage, stamp duty or other costs.

As set out in detail in the September Quarterly Report, the Company is embarking on a series of major drilling programs targeting IP and geochemical anomalies at Canbelego, magnetic anomalies at the Rast and Kilparney tenements and epithermal gold veins in Panama. Over 6,000m of RC and core drilling is planned. The Company has met its commitments for the first year’s work on its uranium projects in Labrador, Canada, where initial airborne results and field investigations are encouraging and assays are awaited.
Enquiries: Kim Stanton-Cook, Managing Director: kim@goldencross.com.au

 

[Uncle Festivus]

Hi Whiskers,
Hopefully Trader Pauls crystal ball comes good and 3.75c will be a bargain on Monday

 

[Trader Paul]

Hi folks,

GCR ... looking for a BIG spike in price, between 29102007 and 02112007 ...

happy days

paul



=====

Hi folks,
GCR ... updated chart ... shows price has recently broken out,
above 3 x MAs and is currently testing support, before the expected
next leg up .....

As per post above, we expect 3 positive time cycles to come into
play next week, to lift it further off the lows, that it has established
on the lower edge of the ellipse, since mid-August 2007.

..... volume has also been up over the past 10 days, as well.

So looking good, so far.

happy days

paul



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[Whiskers]

Hi Whiskers,
Hopefully Trader Pauls crystal ball comes good and 3.75c will be a bargain on Monday

Yeah Uncle Festivus, I noticed the 'coincidence'.

Heh Trader Paul, whats the make and model of that crystal ball you have?

 

[Trader Paul]

Yeah Uncle Festivus, I noticed the 'coincidence'.

Heh Trader Paul, whats the make and model of that crystal ball you have?

... made by God Hisself, this model is called SOLAR SYSTEM, Whiskers ...

have a great day

paul



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[Whiskers]

I am still waiting to hear back from GCR re whether share issue is pro rata or up to $5,000 per shareholder.

Judgeing by the share price movement others are thinking the same thing.

If the later as it seems, and all 2855 shareholders take up their full entitlement of 133,333 shares the no of shares will rise from 540.5m to 921.165m and not considering any extra value for the extra cash, based on the market cap prior announcement @ 4c/ share, the share value post issue looks more like 2.3c/ share.