GIR - Giralia Resources

[grace]

Initial jorc of Western Ck of 30 million tonne at 57.6%Fe. Not a bad start! Only 50% drilled, and open at ends. Location of Western Ck is pretty good too!

“This conservative initial resource covers only a portion of the potential Marra Mamba iron ore mineralisation at Western Creek, supporting the Company’s ultimate exploration target* of 50 to 100 million tonnes for our wholly owned tenement area. We are confident of increasing this current resource with further drilling of open ended zones. Importantly the bulk of the resource is very close to surface, and the Western Creek deposit is located only 15 kilometres from the railway and train loading facilities at Newman. Completing a preliminary Mineral Resource estimate was a priority for the Company, and a necessary first step to allow us to progress discussions on access to infrastructure and development.”

The Directors of Giralia Resources NL ("Giralia") are pleased to announce an initial Inferred Mineral Resource for the Company’s 100% owned Western Creek project, located 15 kilometres west of the town of Newman in the Pilbara Region of Western Australia.

Further exploration and resource drilling is planned at Western Creek in August 2008, including step out drilling along strike of the northern and southern Marra Mamba zones, which remain open ended beyond resource models.

 

[Sean K]

Initial jorc of Western Ck of 30 million tonne at 57.6%Fe. Not a bad start! Only 50% drilled, and open at ends. Location of Western Ck is pretty good too!

Yes, great intital JORC Grace. I wonder if they will take if forward alone, or be approaching BHP for farm in? I think BHP option.

 

[grace]

Yes, great intital JORC Grace. I wonder if they will take if forward alone, or be approaching BHP for farm in? I think BHP option.

Well, if they don't tell us what they are going to do with all of that iron ore soon, I'm going to pack up the family, trucks, diggers etc, and camp up there and make a start! After all, it is to surface, so I'll pack some shovels as well for the kids!

If you add up all of the DSO targets for GIR, you get over $1.2billion tonnes. Someone must be watching GIR very closely IMO. Just a matter of time I think.

 

[grace]

This one seems to have wild swings during these times. Looking at current market cap.

158 million shares x $1.46 = $230 mill

Cash $80 mill plus
Listed investments (not sure what they are sitting at without spending a lot of time on it!)
Say $20 mill

Gives $130 mill for assets other than cash and listed investments

JORC resources
30 mill tonne @ 57.6% Fe DSO at Western Ck next door to BHP
7.2 mill tonne @ 57.2% Fe DSO at mid-west (extension to Sinosteel)

37.2 mill tonne

Now, not considering the DSO target of $1.2 BILLION tonne mmmmm, nor any other substancial minerals all over Australia, and other places in the world...

$130 mill tonne / 37.2 mill tonne DSO
$3.50 per tonne of DSO jorced.

Drilling in Beebynganna Hills should start to come in soon, as well as on the elephant deposit at Earaheedy.

Plenty of upside, the market just doesn't want to know about it though.

 

[grace]

IOH's announcement securing mine gate sales with RIO, suggest the big players are looking at even small ways of increasing sales of iron ore (that project is only 1 mtpa).

BHP says they will take mine gate sales, so Western Ck could get early sales there, but some form of railway agreement would be the best option for longer term security for the project.

Might hear in a few days about what the Government is going to do about the big player monopoly in the Pilbara.

 

[grace]

IOH's announcement securing mine gate sales with RIO, suggest the big players are looking at even small ways of increasing sales of iron ore (that project is only 1 mtpa).

BHP says they will take mine gate sales, so Western Ck could get early sales there, but some form of railway agreement would be the best option for longer term security for the project.

Might hear in a few days about what the Government is going to do about the big player monopoly in the Pilbara.

Qrtly out stating mine gate sales with BHP planned for Western Ck. Now that Mitsubishi/Murchison have the go ahead for the Port and Rail in the Mid-West, I think there might be some more transactions happening in that area. Giralia has some nice deposits in that area that will be of interest to others in my opinion.

http://imagesignal.comsec.com.au/asxdata/20080729/pdf/00864026.pdf

The Company significantly increased the resource inventory at its wholly owned iron ore projects, with substantial ongoing resource growth drilling planned;

• Western Creek Iron Ore Project: Giralia reported an initial resource estimate of 29.4 million tonnes @ 57.6% Fe at its 100% owned Western Creek project, following completion of a further 36 RC drillholes during the quarter. This is a significant discovery of near surface Marra Mamba iron ore only 15 kilometres west of BHP’s rail facilities at Newman in WA's Pilbara. The Company continues to favour a mine gate sale arrangement with BHP as its preferred development option.

• Beebyn Iron Ore Project: Drilling to extend the initial JORC hematite resource of 7.2 million tonnes @ 57.2% Fe at the Company's 100% owned Beebyn-Weld Range and test the nearby Beebynganna Hills discovery in WA's Mid West is due to commence in early August, following completion of all permitting, including flora and heritage surveys, and earthmoving for access. Detailed gravity geophysical surveys were completed at Beebynganna Hills.

• McPhee Creek Iron Ore Project: A 43 hole resource drilling program was completed, testing the Crescent Moon channel iron deposit ("CID") at Giralia's 100% owned McPhee Creek iron ore project in the Pilbara region of WA, resulting in an initial resource estimate of 5.2 million tonnes @ 53.6% Fe (60.4% CaFe). Drill intersections include 12 metres @ 56.1 % Fe, 10 metres @ 57.2% Fe, 14 metres @ 55.9% Fe, with mineralisation commencing at surface.

• Earaheedy Iron Ore Project: Permitting is progressing well for a planned 100 hole RC drilling program to test high grade outcrops of hematite iron ore. Ground flora surveys were completed in mid July, and heritage surveys are in progress. Ground gravity geophysical surveys have commenced. Additional rock samples have extended the areas of known high grade iron at surface.

 

[grace]

Gir is drilling not only the extension to the weld range deposit (next door to mid west steel), but also the Beebynganna Hills deposit this month. Both deposits are at the doorstep to the proposed mid-west rail line, and therefore lies the attractiveness to other parties, or GIR itself.

There are some nice grades in the outcropping hills, and the target is for 30 - 50 mill tonne of DSO. The survey looks pretty good I think.

Thankyou to Kennas for showing me how to cut and paste.

 

[speculator101]

Hi fellow investors.
Hope you are not all doom and gloom like the masses...
Now that I have spent all my pennies... I have time to just read, and read, and read...
So anyway, just looking at Giralia's worth, and I must say that they must be one of the few 'explorers' that are very very cashed up due to thier now - 'brilliant' (perhaps lucky) sale of Red Hill Iron, which leaves them with $85,000,000 in cash, wish I had that earning me interest!
So I was wanting to get a few thoughts on whether GIR would ever be interested in T/A or maybe joint ventures? as there has to be some bargains after the battering that all the miners are taking?
For the past few years I always thought that GIR would be a T/A itself, but I believe it finds itself in an interesting position.
I know its leadership pride themselves on being explorers, but perhaps some production would be nice?
Yes... I could just be day dreaming, but now that the markets are down, and still going down, speculation is great way to get you mind off the losses!!

IMHO.

 

[Gundini]

Couldn't help but dive into this one today at .30c

Good solid earnings and debt free...

Has to be some value here.

 

[prawn_86]

Couldn't help but dive into this one today at .30c

Good solid earnings and debt free...

Has to be some value here.

i didnt know they were earniong anything i must have msised that

Can you please expand on it? I thought they just had a sh1teload of exploration projects happening

 

[Gundini]

i didnt know they were earniong anything i must have msised that

Can you please expand on it? I thought they just had a sh1teload of exploration projects happening

Perhaps I should have said Earnings per share:

Earnings Growth Rate: 45.0% (10Y) 80.2% (5Y) 132.5% (1Y)

 

[prawn_86]

Does that EPS come from selling of tenemants? Or do they have an actual operating mine or something else producing constant cashflow?

 

[Gundini]

Does that EPS come from selling of tenemants? Or do they have an actual operating mine or something else producing constant cashflow?

Yes it does.

From what I can gather, they explore their tenements, find something good in them, spin them out to someone else, and retain a stake in the operation.

This is their core business. I don't believe they intend to produce, they leave that to somebody else! They don't have any operating mines as far as I can see.

Smart business if you ask me, and little risk, with potentially plenty of gain.

Below will give you an idea on the company focus.

GIR has a multi-commodity exploration portfolio and is seeking to accelerate development and unlock shareholder value through independently capitalising and spinning out company specific listings from the portfolio. In each case the new company attracts a new management team with industry and international connections and raises the necessary capital to facilitate its independent listing. GIR retain strategic stakes in the commodity specific spin offs. This provides shareholders with an on-going indirect interest through the retained holding, a priority to subscribe for shares on listing and, in most cases, a free distribution of shares. GIR have further 100% owned opportunities in their project pipeline and participate in 9 non managed joint ventures.

 

[Sean K]

GIR smashed and now bottoming or bottommed, for the moment, along with many others. As previously noted, so many projects hard to keep track of. Recent upgrade of DSO to quite a handy tonnage as well.

180m ish @ .36 = $64m

$70m cash in the bank.

What the?

All those projects are worth nada?

Wait for a break up, or get in before it does. hmmmmm.

Maybe it just falls over....

Cash backing should be close to a floor though, surely.

 

[prawn_86]

I have these on my watchlist. Huge support at 30c, even a bit of swing trading of buy at 30c sell at 33 - 35c would work, and sell on break down of 30c.

Or buy now and hold?

 

[Sean K]

I have these on my watchlist. Huge support at 30c, even a bit of swing trading of buy at 30c sell at 33 - 35c would work, and sell on break down of 30c.

Or buy now and hold?

I'm going to assume from here that .30 is a floor and reevaluate if broken. Will add some on (if) break up.

I didn't add in their investments to the above equation, but their holdings in various companies should be added to asset backing.

Admittedly though, there are out of favour commods, like IO I suppose.

Wouldn't be surprised if they spun out these iron projects into something new.

Beebyn (100%) – Hematite (MidWest) – Adjoins Sinosteel Weld Range deposits. Initial Inferred Mineral Resource 7.2 million tonnes @ 57.2% Fe. Major upside at nearby Beebynganna Hills project, where 7 new zones of hematite have been discovered.

Western Creek (100%) – Hematite (15 km W of Newman) – Marra Mamba iron ore as direct extensions to BHP Silver Knight deposit. Inferred Mineral Resource 52.4 million tonnes @ 56.7% Fe. Deposit is near surface, with several zones open ended.

Earaheedy (100%) – Hematite (200 km S of Newman) –23 known hills with rock sample grades over 57% Fe, within 130 kilometres of iron formations on Giralia tenements, with shallow dips indicating large tonnage potential. Drilling; 20 metres @ 55.7% Fe, 8 metres @ 58.7% Fe, and 12 metres @ 57.3%Fe from 8 hills tested to date.

McPhee Creek (100%) – CID (Pilbara) – Channel iron deposit (CID) mesa, new drill intersections include 12 metres @ 56.1 % Fe, 10 metres @ 57.2% Fe. Initial Inferred Mineral Resource 5.17 million tonnes @ 53.6% Fe (60.4%CaFe).

Daltons (75%) - Hematite (Pilbara) – newly discovered 600 metre by 450 metre zone of massive hematite outcrop, grades average 63.3% Fe only 40km from FMG, BHP rail lines.

Yerecoin – Magnetite (150 km from Perth) – 1 km to railway. Coarse magnetite; 70.1 % Fe from initial DTR testwork. Initial drill testing March 2009.

Then add all the other projects .....

 

[grace]

I'm glad someone else has joined me here, the thread has been so quiet of late.

Giralia is a real gem - just has so many different minerals - something surely must come out of all of those deposits. Iron ore is a major one of course.

Share price can be so volatile though - very illiquid at times. I continue to hold - it won't go broke for some time with all of that cash in the Bank. Nice to eliminate that for now! Have some spare cash, but I think I'm going to put it elsewhere for now.

 

[Sean K]

I'm glad someone else has joined me here, the thread has been so quiet of late.

Yes, as it should be. Being a right turkey the past few months! 'But the times they are a changing!' Is that a song?

Potential breakout looming here. Fingers crossed. A break up through this presents a very good opportunity imo.

Ann today of another IO JORC, which looks pretty bloody good.

Maybe a justification for a break up.

ASX ANNOUNCEMENT
INITIAL IRON ORE MINERAL RESOURCE ESTIMATE FOR ANTHIBY WELL CHANNEL IRON PROJECT

• Initial iron ore Mineral Resource for Giralia’s 100% owned Anthiby Well project.

o 63.5 million tonnes @ 50.5%Fe (55.8% CaFe), including
o 37.6 million tonnes @ 53.6%Fe (59.1% CaFe)
• This maiden estimate for the Anthiby Well channel iron deposit (“CID”) is based on an 87 hole first pass drilling program completed in December 2008.
• The resource is near surface; within ~40 metres of natural land surface.
• Drilling results include 32 metres @ 55.1%Fe incl. 24 metres @ 56.0%, 22 metres @ 56.3%Fe, and 18 metres @ 56.2%Fe.

The Directors of Giralia Resources NL ("Giralia") report an initial Inferred Mineral Resource for the Company’s 100% owned Anthiby Well iron ore project, located around 100 kilometres west of Paraburdoo in the Pilbara Region of Western Australia.


(holding a few)

 

[Dukey]

Man Oh man - these guys are gonna be rolling in it when Fe demand turns around.
I hadn't even heard of Anthiby Well deposit - can't remember seeing it on their monumental list of projects....

nice surprise packet. I've lost a fiar whack on GIR .. but no point thinking about selling now... the future is inevitable AFAICS.

('As far as i can see' - saw that somewhere!)

- Looks like i've been too slow to move on BOW and MPO too :-(

 

[YOUNG_TRADER]

Just my thoughts but the key for GIR to add value here is expanding Beebyn given its proximity to MIS/Sino

While the other projects look real good an expanded resource at Beebyn will surely attract the attention of MIS/Sino

Trading at cash backing is just silly, crazy mkts these