GDN - Golden State Resources

[bigdog]

ASX ANN GDN 10:14 AM Suspension from Official Quotation

http://asx.com.au/asx/statistics/showAnnouncementPDF.do?idsID=00716923+

must assume that there is a further GDN announcement to be issued that covers a statement included in the "Third Quarter Activities Report"

GDN 6:00 PM Third Quarter Activities Report
http://www.asx.com.au/asxpdf/2007043...vyx9xyrpmm.pdf

In the activities report it says re the uranium project "full details of the transaction are contained in an announcement issued today (30 April) to the ASX."

 

[chance fate]

.... trading suspension!!.... perhaps the asx rightly has concerns ... there is no way the general market has sufficient info. to put a value to the stock.... reckon the management team should come up with an indication... fun!!

 

[white monkey]

Why would a company request a suspension? Can't they request an extension to the trading halt that has already been issued?

Any explanations would be great.

thanks
WM

 

[bigdog]

There is a further GDN announcement to be issued that covers a statement included in the "Third Quarter Activities Report"

GDN 6:00 PM Third Quarter Activities Report
http://www.asx.com.au/asxpdf/2007043...vyx9xyrpmm.pdf

In the activities report it says re the uranium project "full details of the transaction are contained in an announcement issued today (30 April) to the ASX."

 

[chance fate]

... putting all doubts, suspicions etc aside.... re. the uranium - some preliminary logic in the absense of any further info.. i don't believe there was much uranium value built into the share price prior to this announcement.. i.e. it was all about the gas well.. so given that suddenly golden has become exposed to potential (as it announced) advanced status mineral production, by way of a JV with White Canyon, this can only be good news for the SP.... secondly, go back to the announcements re. paradox.. there are indeed many chances for commercial production given the large number of intersected intervals baring hydrocarbon shows... so standing back from the heat of the volatile nature of this stock/shareholders.. there is a strong chance of realising value from both the U and the gas... so if anyone can pick up golden stock for 40cents ... reckon they've got a bargain.... (in my opinion!)... reckon also that the market should have been allowed to run it's course... (in my opinion !!)... agree with AgentM in this sense that the share price was probably heading back to the 60cent mark and that any rise beyond that was pure bubble....

 

[bigdog]

Yesterdays ANN

Thompson Uranium Project: The uranium assets of Golden State Resources and Utah miner White Canyon Exploration are to be spun off in a new ASX-listed uranium mining and exploration entity, to deliver the Company’s shareholders maximum value and exposure to the uranium market. Golden State shareholders will have a priority entitlement in the capital raising for the new company.

I have not been able to locate "White Canyon Exploration" using search on the internet!!!

If you can find "White Canyon Exploration" please post links

 

[elcruzy]

http://www.eia.doe.gov/cneaf/nuclear/page/umtra/whitecanyon_title1.html

i cant find the company but did find info on the area...it did produce in the 40-50's some very high grades of U @ 0.43%
the mine plant has been dismantled but obviously with the price per pound at $113 it is now economic to mine again. considering most mines are using a cut-off 0.1% this mine once JORC complaint could be good.

another thing i have noted when a stock is suspended the buy/sell list is cleared as oppposed to a trading halt. hopefully this will force speculators to rethink their actions and the SP will stabilise - however i dont think there is much chance of that as even i am becoming a nervous nellie!!.

 

[shanty]

Hi,White Canyon is name of U.S.Energy Corp U property at San Juan.Utah. Last info I could find,100% owned by them? It'll all come good! Trust me! DYOR!

 

[kevro]

http://www.eia.doe.gov/cneaf/nuclear/page/umtra/whitecanyon_title1.html

i cant find the company but did find info on the area...it did produce in the 40-50's some very high grades of U @ 0.43%
the mine plant has been dismantled but obviously with the price per pound at $113 it is now economic to mine again. considering most mines are using a cut-off 0.1% this mine once JORC complaint could be good.

another thing i have noted when a stock is suspended the buy/sell list is cleared as oppposed to a trading halt. hopefully this will force speculators to rethink their actions and the SP will stabilise - however i dont think there is much chance of that as even i am becoming a nervous nellie!!.

Those sellers may have been trapped T3er's who are still trapped and having to find some money to pay for their shares.

 

[DAZT49]

Do you mean Buy/Sell depth?
My Comsec platform indicates an IAP change of -15c but thats from around the time of the suspension of trade.

 

[Wysiwyg]

So this is the reason for the hold up folks.....


URANIUM MINING AND EXPLORATION VENTURE
The directors of Golden State Resources are currently finalising the content of a detailed
announcement regarding the proposed spin off of the Company’s uranium assets.
There are issues to resolve regarding the levels of confidence and method of presentation for
resource estimate data prepared within the USA.
It is expected that these issues will be resolved shortly and an application made to lift the
current trading suspension as soon as practicable.

 

[chance fate]

What does this mean?? ... we could be waiting weeks for them to meet the criteria required for that kind of declarataion in the usa.... seems the original announcement was premature and that a trading halt was not required.... no news of the DST.......:sleeping:

 

[DAZT49]

Have they stopped drilling at Paradox1 until after the DST or have they called it quits.
Very confusing to this little black duck.

 

[chance fate]

They use the drill string to do the test... i.e. it's the usual length of drilling pipe but without the drill bit on the end... and instead a whole bunch of gear to isolate the area they're interested in testing... so no they can't drill and test at the same time if that's what you mean by the question... once they've finished testing they can then proceed with drilling.... but i guess they're not really under pressure to report well results now that trading is supended....

I reckon the original annoncement that we didn't get to see concerning the uranium venture was rejected as containing insufficient details by the ASX.... that's why we're now having to wait some more.... that reflects poorly on the manager's judgement... tho' must concede they're under alot of pressure right now... on the brighter side.. if they're having to firm up resoruce estimates for the Uranium venture there'll be something more concrete by which to value to company... so it will be worth waiting.... i hope!!!

 

[DAZT49]

Seems they were trying to rush the U report thru to cover the not so good ann about Para1.
I converted my options to shares a day before that, as the expiry date was looming, I am bleeding rather profusely.
Fingers crossed ..as they have been for the last 12 months.

 

[ben_Q]

New announcement available regarding the Uranium spin off.
Looks like the market may open again this morning.
Hoping for a good result.

 

[bigdog]

Two GDN Announcemetns to ASX yesterday
GDN 6:35 PM Reinstatement to Official Quotation
http://www.asx.com.au/asxpdf/20070503/pdf/31293j7nzdtlph.pdf

GDN 6:35 PM Uranium mining and exploration venture - assets spin off
http://www.asx.com.au/asxpdf/20070503/pdf/31293gv2vzd441.pdf

URANIUM MINING AND EXPLORATION VENTURE
Uranium Assets Spin Off
• The uranium assets of Golden State Resources and Utah miner White Canyon Exploration are to be spun off in a new ASX-listed uranium mining and exploration entity, to deliver the Company’s shareholders maximum value and exposure to the uranium market. Golden State shareholders will have a priority entitlement in the capital raising for the new company.

• The new entity will hold high grade U3O8 deposits estimated to contain in excess of 1.9 million pounds (a non-JORC-compliant resource – see page 2 for details) and is expected to begin mining operations, given satisfactory confirmatory drilling results and statutory approvals, within the year. The directors of Golden State Resources announce the execution of a Memorandum of Agreement for a mining and exploration joint venture between the Company and Utah-based independent uranium miner White Canyon Exploration LLC to combine their respective uranium-vanadium resource and exploration assets into a specialized uranium mining entity to be listed on the Australian Stock Exchange.

It is anticipated that Golden State and White Canyon will each hold approximately 30% of the new entity, with the remainder to be held by the public as a result of a planned capital raising. It is the intention of Golden State’s directors that there will be a priority entitlement for Golden State shareholders to participate in this raising.

The agreement is the result of six months’ negotiation with White Canyon and will provide the Company’s shareholders with the greatest value for the Thompson Uranium Project and exposure to a much larger advanced project with a short time frame towards mining operations.

The new joint enterprise has distinct advantages:
• In excess of 1.9 million pounds of U3O8 with an ore grade of 0.3% (6.2 lbs per ton) contained in 300,000 tons of ore in high grade sandstone-hosted roll-front deposits, plus substantial exploration potential on the Thompson Project.

• Experienced management, with successful underground uranium mining expertise, who are currently contract mining and shipping ore to the White Mesa Mill, Blanding, Utah.

• Early mine production potential from drilling-defined ore bodies.

• Favourable and proven geology – the Chinle and Morrison Formations of the Colorado Plateau. Utah has historical production of 130 million pounds of U3O8, with 80% from the Chinle Formation.

• All projects are in Utah, USA – a supportive jurisdiction with currently licensed and operating uranium mines and mills.

• An aggressive and ready market for yellow cake product from US electricity utilities. Spot price for uranium has doubled in the past six months to US$113.

Drilling to commence in May
The Company has engaged a drilling rig and lodged application for statutory permits to commence a drilling programme on the Daneros and Geitus bodies. The technical programme will include twinning a large number of the drill holes used in the original assessment, infill drilling certain zones and opening up and relogging old drill holes. The work will evaluate the assessment and reporting criteria of Table 1 of the JORC Code and allow the generation of mineral resources over a period of two to four months, and in time ore reserves in accordance with the JORC Code.

Terms of agreement with White Canyon Exploration LLC
Golden State and White Canyon will contribute their respective uranium interests to the new entity, which will acquire remnant interests in the Daneros and Geitus leases from unrelated parties for US$10,000,000, part of funds to be raised. The new company will own 100% of all assets. There is a pre-existing 15% mill return royalty on the Daneros and Geitus leases, ceded to the previous owner of the leases in 1993.

Indicative timetable
An indicative timetable for due diligence investigations, fund raising and listing will be released within two weeks.

 

[DAZT49]

1.9mp x $113=$214.7 m gross. Is that good? Seems small .
say $20/p to produce.
1.9 x $93=$176.7m A days wage for Bill Gates
Or is my math out

 

[bigdog]

GDN today opened 74 cents

GDN 0.725 -0.065 -8.23% 0.74 high and low of 0.70 549,230 shares $405,637 04-May 10:05:23 AM

 

[constable]

This thing is a game of russian roulette! Every trade changes the bloody price!!!
Looks like it might be coming off the boil now after nearly 400 trades in the first 25 minutes.