GIR - Giralia Resources

[gdaf]

Then take a look at their spin off ZNC, listed a couple of years ago, just announced a target of 1.2b tonnes of magnetite (on only half the BIF tested). Around the same time as anouncing this astonishing result, they slip to the market that they've also got themselves a high grade manganese discovery at Earaheedy that extends over 4 strike kilometres.

This company's total share register is around 60m issued when I last checked. GIR is their largest shareholder and hold 8m of these - the top 40 own over 50% of the company.

This is valued at an inconcievable $11.5m. Don't say I didn't tell you.... LOL

 

[Sean K]

Astonishing recovery from the bottom. And we called it here folks! No need to go to any trashy tipster sheets for a 12345 count.

Hardly any news here recently, so probably just supported by ongoing IO price negotiations in the sector.

I sold out of this about 5 months ago with a great profit. Hope others have made a mint also if you stayed in. Great run!

 

[outback]

Wished I'd jumped on at 50c, but would be upset if I'd not got in when I did ($1.20), just keeps on keeping on.

 

[grace]

I have this one stuck on my mobile - just to remind me each day how dumb I was to let it go. I think it is time I stopped punishing myself.

It has been a great run with the Gorilla. Always had so much potential - just took the market to realise it, eventually.

 

[lazyfish]

This one has already reached my initial target but I am just waiting for a couple more month so I won't have to pay too much tax. First time I had to worry about CGT lol.

 

[Sean K]

This one has already reached my initial target but I am just waiting for a couple more month so I won't have to pay too much tax. First time I had to worry about CGT lol.

I thought about that sort of thing a couple of years ago. Watched MAK go from about 2.75 ish to 1.75 ish while I was waiting for the end of financial year thing. I had about 300k in it. Add that up. And it is at about 50c now.

 

[shag]

I thought about that sort of thing a couple of years ago. Watched MAK go from about 2.75 ish to 1.75 ish while I was waiting for the end of financial year thing. I had about 300k in it. Add that up. And it is at about 50c now.

yr comments re the western part of mcphee turned out dead true as well, it does show how these unloved stocks suit this type of forum.
i love the graph too, chugging steadily up a hill.
i'm supprised bhp didnt lock up some of these fellas over the gfc. such a quality product. i guess the rio thing was their focus plus competition issues.

 

[TheAbyss]

Lock in profits always. As a general rule a companies SP goes up on an escalator and down on an elevator.

Having said that Giralia have engaged Toll to look at transporting ore and port access and look to have a decent future IMO.

 

[Sean K]

Another one to watch closely when the dust settles from the financial meltdown and profit tax BS. On my watch list to get back in on significant correction.

McPhee Creek could be the one deposit they can hang their hat on instead of having about 50 potential projects all running undetected.

100-140Mt potental for just a small part of it. Could be double that by their guestimates on the map of the project. See ann for details.

20 May

ASX ANNOUNCEMENT
SIGNIFICANT EARLY ASSAYS CONFIRM EXTENSIONS TO MCPHEE CREEK RESOURCE

• First assay results from major resource definition drill-out of the new 100% owned McPhee Creek main range discovery, located 220 kilometres south east of Port Hedland;
o 114 metres @ 59.9% Fe, incl. 106 metres @ 60.5% Fe, 1.7% Al2O3
o 56 metres @ 56.4% Fe, incl. 36 metres @ 58.5% Fe, 1.7% Al2O3
• Results continue to indicate a significant hematite iron ore deposit, with large tonnage potential along the range which is ~8 kilometres long and up to 1 kilometre wide.

The Directors of Giralia Resources NL (Giralia) are pleased to report the first assay results from the major, ongoing resource definition drilling program at the Company’s 100% owned McPhee Creek iron ore discovery, located 220 kilometres south-east of Port Hedland, and around 50 kilometres north of BC Iron Limited/ FMG's Nullagine Iron Ore JV deposits in the Pilbara region of Western Australia. Three drill rigs are now in operation at Mc Phee Creek.

On 15 December 2009 the Company announced the maiden JORC Inferred Mineral Resource for the new main range discovery at McPhee Creek of 52.1 million tonnes @ 56.0%Fe (61.7% CaFe) at 50% Fe cut-off, including 33.8 million tonnes @ 57.3%Fe (62.9% CaFe), based on 71 RC holes completed to date, since discovery in September 2009.

The main range deposit remains open in most directions, with large tonnage potential indicated along the ~8 kilometres long and up to 1 kilometre wide range. Outcropping hematite mineralisation extends south from the current resource into an interpreted synclinal keel where rock sampling has returned high iron grades. The Company has established a conservative initial Exploration Target# of 100 to 140 million tonnes of hematite iron ore (57-60%Fe) for the main range deposit, for a ~250 metre wide zone along the western side of the range only.

 

[Sean K]

More outstanding intersections at McPhee.

18 June 2010
ASX ANNOUNCEMENT
ASSAYS CONTINUE TO CONFIRM MAJOR EXTENSIONS TO MCPHEE CREEK DISCOVERY
• More thick DSO hematite intersections from resource growth drilling at the 100% owned McPhee Creek main range discovery, located 220 kilometres south east of Port Hedland.
• Holes to east and down dip continue to show major extensions to current JORC resource, with many holes finishing in mineralisation;
o 96 metres (to end of hole) @ 58.6% Fe (65.1%CaFe), 1.6% Al2O3
o 104 metres @ 57.3% Fe, (63.5%CaFe), 1.9% Al2O3
o 72 metres (to end of hole) @ 60.5% Fe (65.8%CaFe), 1.5% Al2O3
o 68 metres (to end of hole) @ 58.5% Fe (63.4%CaFe), 2.9% Al2O3

Looking at 100-140Mt plus which is almost a company maker in itself.

 

[Sean K]

Looking at 100-140Mt plus which is almost a company maker in itself.

Hmm, maybe even better than this. Looks like it could be a massive deposit.

ASX ANNOUNCEMENT

THICK HEMATITE INTERSECTED ACROSS ALMOST FULL WIDTH OF MCPHEE CREEK MAIN RANGE

• New results confirm Giralia’s model of extensive hematite mineralisation outside existing JORC resource and exploration target.

• Strong intersections across almost full width of McPhee Creek main range;
o 80 metres (to end of hole) @ 57.1% Fe (63.9%CaFe), 1.6% Al2O3
o 146 metres (to end of hole) @ 56.1% Fe (62.0%CaFe), 2.1% Al2O3
o 70 metres (to end of hole) @ 58.6% Fe (65.3%CaFe), 1.7% Al2O3
o 54 metres (to end of hole) @ 60.3% Fe (65.2%CaFe), 1.5% Al2O3

• Mineralisation up to 700 metres wide across range.

146m at 56%Fe eoh?

 

[grace]

Hmm, maybe even better than this. Looks like it could be a massive deposit.

146m at 56%Fe eoh?

For Giralia, there is no question on the quality or quantity of their iron ore deposits. The question for Giralia is, will they get to mine it during this boom??? With China slowing, will we see iron ore prices slipping and then these exploration companies back at the 08 price levels???

 

[Sean K]

For Giralia, there is no question on the quality or quantity of their iron ore deposits. The question for Giralia is, will they get to mine it during this boom??? With China slowing, will we see iron ore prices slipping and then these exploration companies back at the 08 price levels???

Yes, good points grace. They are some time away from mining and while 220km to Port is closer than some, opex will still be a major issue if prices fall.

More excellent results on McPhee Ck.

They'll have to upwardly revise the exploration target from 140m tn you'd think.

8 July 2010
ASX ANNOUNCEMENT
STRONG NEW DSO RESULTS FROM NORTHERN MCPHEE CREEK MAIN RANGE

• First results from resource drilling of the northern end of the McPhee Creek main range confirm more extensive hematite mineralisation;

o 112 metres (to end of hole) @ 57.7% Fe (63.3%CaFe), 0.06% P, including
74 metres (to end of hole) @ 60.3% Fe
o 100 metres @ 57.8% Fe (63.4%CaFe), 0.08% P
o 68 metres (to end of hole) @ 57.1% Fe (63.3%CaFe), 0.07% P
o 42 metres (to end of hole) @ 57.7% Fe (64.9%CaFe), 0.06% P

• Mineralisation significantly thicker than modelled in current JORC resource, and outside both current resource and Exploration Target.
• Interim resource upgrade anticipated within ~2 weeks, with all drilling data for southern 25% of range delivered to resource consultants.

 

[Sean K]

That resource upgrade should be out this week. Not sure if the 'news' will do anything to the sp, unless it comes in at over 100mt with the exploration upside pushed up over 200mt or so.

Performed ordinarily after probably overdoing it up to $2.50 with hardly a rest. You'd really want to see $1.75 hold. While that does it's still longer term up, but will be in trouble under that. Breaking up through $2.00 would be very positive.

 

[Sean K]

Much larger upgrade than I expected but the market obviously did. Well factored in perhaps.

New Exploration target for a DSO operation is quite significant. If IO prices hold at a reasonable level, you'd expect this to get up one day. No idea what a potential Capex / Opex would be so very difficult to say.

26 July 2010
ASX ANNOUNCEMENT
INTERIM UPGRADE TO JORC RESOURCE ESTIMATE FOR MCPHEE CREEK MAIN RANGE DEPOSIT

• Interim upgrade to JORC Inferred Mineral Resource estimate for Giralia’s 100% owned McPhee Creek main range deposit;
o New resource estimate 161.4 million tonnes @ 56.2 % Fe (62.1% CaFe).
• Represents a major increase to previously reported 52.1 million tonne JORC Mineral Resource estimate, and exceeds previously reported Exploration Target of 100 to 140 Mt.
• The estimate incorporates new drilling results for only the southern 25-30% of the main range.
• Significant hematite intersections outside the new interim JORC reported Mineral Resource include;
o 112 metres (to end of hole) @ 57.7% Fe (63.3%CaFe) 0.06% P, including 74
metres (to end of hole) @ 60.3% Fe, and
o 100 metres @ 57.8% Fe (63.4%CaFe) 0.08% P.
• Upward revision of Exploration Target# to 250 to 350 million tonnes @ 56-60% Fe.
• All remaining assay results should be received in the next week, with further resource update anticipated by late August.
• The resource is near-surface, and potentially within road haulage distance of Port Hedland.

Their list of projects is pretty impressive:

Daltons-Mt Webber: 40Mt JORC Resource, 150km from Port Hedland. Scoping study on 2mtpa truck/ship; NPV*A$170M, IRR 53.9%. Pre-Feasibility Study in progress
McPhee Creek: 161Mt JORC Resource. New discovery 220km from Port Hedland. Exploration Target 250 - 350Mt. Scoping Study in progress.
Western Creek: 52.4 Mt JORC Resource adjacent to BHP Billiton Newman rail. 50- 100Mt Exploration Target .
Anthiby Well: 37.5Mt JORC Resource, 220km to port at Onslow.
Beebyn: 7.2Mt JORC Resource adjoins Sinosteel project, 3rd party rail planned to doorstep. Exploration Target of 40 - 70Mt.
Yerecoin: Magnetite project 1km from rail. Exploration Target 200 - 250Mt. Scoping study on 2.5mtpa concentrate via existing rail/ port; NPV* A$321M, IRR 33.8%.
Earaheedy: Greenfields play. Early movers in 2nd biggest iron formation basin in Australia. Exploration Target of 750Mt - 1.25Bt.

They now have about 280Mt JORC at and EV of $331m gives them a DSO to JORC EV of $1.80 a ton. Looks probably about right at the moment compared to the others.

 

[Sean K]

Quite a few analysts following GIR now.

Maquarie's last report:

Possibility of a game-changer Event

 GIR has increased its DSO resource and exploration target at McPhee
Creek.

Impact

 JORC resource capable of supporting a mid-size operation. The revised
McPhee Creek JORC resource is 161mt, at 56.2% Fe (62.2% CaFe); building
on the original 52mt resource along strike, the updated resource includes
mineralisation at the Southern end of McPhee Creek. GIR has increased its
McPhee Creek exploration target to 250-350mt, based on 100m+ iron ore
intersections from the northern end of the range.

 This is a potential game-changer... In our view, the current 161mt resource
could potentially support a 5-10mtpa operation. This could enable GIR to
commit to infrastructure; infrastructure alternatives include building a haul
road to Port Hedland or building a rail spur or haul road to the Goldsworthy
rail line which has recently been declared open to public access by the
Australian Competition Tribunal.

 ... however, port capacity hurdle remains. GIR currently has no allocation
at Port Hedland. Until GIR can secure port capacity, McPhee Creek remains
stranded. Capacity at Utah Point, to be commissioned in September 2010,
seems to be fully allocated in the short term. The planned South West Creek
development, planned to commission 2013, could be another alternative;
however, GIR is not a member of the North West Iron Ore Alliance which is
planning to build infrastructure there. Given the potentially larger throughput
premised on the increased McPhee Creek resource, the game for port
capacity has also changed for GIR. We understand that GIR management
continues discussions with the Port Hedland Port Authority.
Earnings and target price revision

 We increase our target price to A$2.99ps from A$2.50.

Price catalyst

 12-month price target: A$2.99 based on a DCF methodology.
 Catalyst: Further resource upgrade at McPhee Creek expected end August

Action and recommendation

 We rate GIR Outperform with a target price of A$2.99ps.

I hadn't really thought too much about port capacity to date. Would be a game changer if they secured something.

Maybe the Chindians will come and build something for them?

If not, might be just a has been until the iron starts running out for BHPRIOFMG

One to watch if the market falls over again I think.

 

[Sean K]

Good results from W Creek.

Could turn into something significant too.

Impurities high but.

24 August 2010
ASX ANNOUNCEMENT

STRONG DSO RESULTS FROM HOMESTEAD PROSPECT AT WESTERN CREEK

• Strong new DSO results returned from a 59 hole RC drilling program completed in July at Homestead Marra Mamba prospect at Giralia’s 100% owned Western Creek project;

42 metres @ 59.1% Fe from 6 metres
24 metres @ 61.7% Fe from 10 metres
58 metres @ 57.9% Fe from 52 metres

• Significant hematite mineralisation now intersected over 1.6 kilometres strike.
• The Homestead deposit is 10 kilometres north of Giralia’s current 52.4 million tonne Marra Mamba resource at Western Creek, located only 15 kilometres from railway and train loading facilities at Newman.
• Increase to Western Creek project resource likely.

But, considering proximity to Whaleback, possible best case could be feed to BHP. Might earn them some dollars, if BHP care, which I doubt actually.

Looks like BHP may have an entire range of DSO at Whaleback so this is tricky.

Maybe a red herring and they should concentrate on something more substantial?

There seems to be a massive area of undevelopment west of Newman.....

 

[beetleb]

Does anyone have views on where GIR will stop - plateau and go again or a correction in store. Also, what do you think UBS nominees plans are? Thanks

 

[Sean K]

New results that seem to be outside the current resource at depth that will add a few more tons to McPhee Ck. With essays pending on how deep it goes. Could be quite large down there.

154m!

Shame there's no rail line close by. Trucking 220km just can't be a sustainable can it?

Maybe FMG will help them out and allow them to use that line to the south. They can build the spur up to McPhee and take a stake in the project..Done.

6 October 2010
ASX ANNOUNCEMENT
NEW DRILLING RESULTS FROM MCPHEE CREEK MAIN RANGE DEPOSIT

• Drilling of resource growth targets continues at Giralia’s 100% owned McPhee Creek main range deposit.

• Significant new results include;

o 154 metres @ 57.8% Fe, including 106 metres @ 60.0% Fe
o 72 metres @ 58.2% Fe
o 100 metres (open at end of hole) @ 57.3% Fe

• Further resource update anticipated in late October.

 

[Boggo]

Does anyone have views on where GIR will stop -

It had a few issues at getting past 2.90, seems to be in blue sky now after a a convincing break up through 2.90 and 3.00.

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