GIR - Giralia Resources

[stu_lee44]

Hi,Kennas.Glad you are still on board.I won't be surprise if they spin off everythingI hope it's a handle here so that we could break the resistance.But I have a feeling,this time we could see 1 dollar.

Quite an incredible fall from grace from the $2.75 peak which was a bit irrational imo. Nice to say that in retrospect, but geesh.

Could have bottomed, has a number of good IO projects developing and the market has stabilised for the moment. Could be a cup and handle there, but maybe not.

I wonder what's next for these guys? They are pretty much an IO exploration company now, they can't spin off all their assets. Or could they?

I don't think they have any plans to actually mine anything, they're just an investment vehicle really.

Would be a miracle if it broke that resistance.

 

[AussiePaul72]

I agree Stu_lee ...... recently GIR has had a couple of runs to 80c resistance levels but also seems to have strong support around 60c. Going on GIR history i think that when it does break the 80c barrier it may go on quite a steep run. As a holder i'm waiting patiently.
GIR has a lot of good iron ore projects and good cash in the bank. I'd like to see them diversify a bit into other commodities aswell ..... and could well be looking at other opportunities at present.

Hi,Kennas.Glad you are still on board.I won't be surprise if they spin off everythingI hope it's a handle here so that we could break the resistance.But I have a feeling,this time we could see 1 dollar.

 

[Sean K]

Quarterly out.

Lots on the drawing board here. Should expect plenty of drilling results during the quarter, hopefully they continue to be good.

Market cap about $110m ish, with $67m in the bank.

$40m for this:


EXPLORATION; Exploration and development activities continued to focus on advancing the Company’s iron ore projects during the quarter;

• Daltons Iron Ore Project (75%): Initial 42 hole drilling program in progress at Mt Webber, only 150 km from Port Hedland. Early results include 16 metres @ 58.5% Fe, 34 metres @ 55.2% Fe and 16 metres @ 56.1% Fe from a small hill north of the main target area. Drilling commenced at main southern hill (600m by 450m hematite zone) in late July 2009. Atlas Iron Ltd released results from within 200 metres of tenement boundary including 66 metres @ 58.5% Fe, 1.9% Al2O3, 0.09% P, and 44 metres @ 60.1% Fe, 1.3% Al2O3, 0.09% P from the western range.

• Yerecoin Iron Ore Project (100%): A Scoping Study was commissioned to review development options for Giralia’s Yerecoin magnetite project, located less than 150 km north of Perth, and within 1 km of existing rail access. An initial Exploration Target of 200 million to 250 million tonnes of magnetite mineralisation was defined with exceptional results from Davis Tube testwork (concentrate grades >71%Fe, < 1%Si02 and coarse grind size for magnetite liberation).

UPCOMING DRILLING ACTIVITY; Despite significant delays due to permitting hold ups, particularly for environmental approvals in the Mid West region where approvals for drilling proposals routinely take in excess of 6 months, the Company now has several hundred holes ready to drill in the coming months;

Beebyn Iron Ore Project (100%): Fully permitted 83 hole drilling program to extend the current JORC hematite resource at the Beebyn‐Weld Range deposit ajoining Sinosteel in WA's Mid West, along with further drill testing of hematite zones at the nearby Beebynganna Hills discovery. Drilling is scheduled for early August 2009.

McPhee Creek Iron ore Project (100%): Fully permitted for 139 hole drilling program to test potential of 8km long range for remnant CID and bedded hematite near Nullagine in Pilbara following up further high grade rock chip results during the quarter.

Earaheedy Iron Ore Project (100%): Awaiting final permitting for a further 128 hole drilling program for likely August 2009 start at the Earaheedy project, to follow up significant results from late 2008 drilling including; 20 metres @ 55.7% Fe, 12 metres @ 57.3% Fe (from surface) etc. The program will include drilling of many of the remaining 15 untested hills of hematite outcrop.

Western Creek Iron Ore Project (100%): A detailed aeromagnetic survey was completed over Giralia’s Western Creek project, located less than 15 kms from railway facilities at Newman, to aid planning for further drilling at the current Western Creek resource of 52.4 million tonnes @ 56.7% Fe, and the new Homestead deposit and CID prospects.

Listed Investments;
PacMag Metals Limited‐copper (ASXMH) Giralia ~10.4% stake
U3O8 Limited ‐uranium (ASX:UTO) Giralia ~15% stake
Zinc Co Australia Limited ‐ zinc (ASX:ZNC) Giralia ~12% stake
Carpentaria Expl. Ltd –NSW,Qld (ASX:CAP) Giralia ~10.4% stake
Hazelwood Resources Ltd ‐nickel (ASX:HAZ) Giralia ~ 5% stake

 

[Sean K]

Bouncing up from support but approaching, or in, significant resistance zone.

I'm hesitant to buy more while under 82, looks like a lot of trouble there.

60 certainly firmed up as good support.

 

[stu_lee44]

Yes,the resistance kept stopping GIR going to the sky.But I'm still holding and waiting for the break.

Bouncing up from support but approaching, or in, significant resistance zone.

I'm hesitant to buy more while under 82, looks like a lot of trouble there.

60 certainly firmed up as good support.

 

[AussiePaul72]

In my opinion GIR can only run to 80c so many times before it breaks through ....... we can't be too far away now. With all the activity going on in this quarter (as listed by Kennas in a recent post) we may see the sp get a move on.

GIR has a market cap of ~$139M @ sp of 78c. They have about $70M cash on hand. A very healthy cash position.

They have a strong portfolio of 8 iron ore projects and it is easy to forget about the numerous other projects that they are involved in. These are shown in the map on page 11 of the recently released quarterly. Apart from the iron ore projects, there are a further 20 projects GIR are involved in which cover the following target commodities:
Gold
Copper
Zinc/Lead
Nickel
Uranium
Cobalt

I like GIR for a range of reasons:
......... lots of cash on hand ($70M)
......... a number of very good iron ore projects
......... a diversified involvement of a suite of almost 30 projects covering a wide range of commodities

Good luck to fellow holders!

 

[Sean K]

EXPLORATION; Exploration and development activities continued to focus on advancing the Company’s iron ore projects during the quarter;

• Daltons Iron Ore Project (75%): Initial 42 hole drilling program in progress at Mt Webber, only 150 km from Port Hedland. Early results include 16 metres @ 58.5% Fe, 34 metres @ 55.2% Fe and 16 metres @ 56.1% Fe from a small hill north of the main target area. Drilling commenced at main southern hill (600m by 450m hematite zone) in late July 2009. Atlas Iron Ltd released results from within 200 metres of tenement boundary including 66 metres @ 58.5% Fe, 1.9% Al2O3, 0.09% P, and 44 metres @ 60.1% Fe, 1.3% Al2O3, 0.09% P from the western range.

Wow, good intersections and grades here.

Shaping up to be something.

Need to have a closer look at potential strike to come up with a guestimate tonnage.

ASX ANNOUNCEMENT

THICK ZONES OF HIGH GRADE HEMATITE DISCOVERED AT MT WEBBER- DALTONS JV

• Encouraging early results from the first 3 holes from initial iron ore drilling of main southern hill at Mt Webber;

o 58m @ 58.3% Fe from surface, including 50m @ 59.6% Fe, 1.4%Al2O3
o 32m @ 58.4% Fe, 1.7% Al2O3 from 2 metres depth
o 82m @ 55.1% Fe from surface, including 50m @ 57.9%Fe, 1.8% Al2O3

• Project located 150 kilometres south of Port Hedland, and close to existing rail
• Ongoing drilling continues to intersect thick zones of hematite mineralisation

 

[LeeTV]

Haoma Mining NL sp has jumped over 41% on the news in morning trade and they only have a 25% stake

 

[stu_lee44]

That's great.

It seems my feeling is correct.We will see $1 soon.

Kennas, what's the next resistance?any opinion?

Wow, good intersections and grades here.

Shaping up to be something.

Need to have a closer look at potential strike to come up with a guestimate tonnage.

ASX ANNOUNCEMENT

THICK ZONES OF HIGH GRADE HEMATITE DISCOVERED AT MT WEBBER- DALTONS JV

• Encouraging early results from the first 3 holes from initial iron ore drilling of main southern hill at Mt Webber;

o 58m @ 58.3% Fe from surface, including 50m @ 59.6% Fe, 1.4%Al2O3
o 32m @ 58.4% Fe, 1.7% Al2O3 from 2 metres depth
o 82m @ 55.1% Fe from surface, including 50m @ 57.9%Fe, 1.8% Al2O3

• Project located 150 kilometres south of Port Hedland, and close to existing rail
• Ongoing drilling continues to intersect thick zones of hematite mineralisation

 

[Sean K]

That's great.

It seems my feeling is correct.We will see $1 soon.

Kennas, what's the next resistance?any opinion?

What do you base $1.00 on Stu? You need to add some analysis to any targets.

I think the historical chart is a bit choppy in front, so not sure on where the next real hurdle is.

I'm cautious on this breakup so far actually. Overall market has run a bit hard for my liking. Needs a decent rest imo.

 

[stu_lee44]

Hi, Kennas,

I just tried to learn the chart analysis from you.

GIR's cash and funmental are there. I try to catch some spikes.

What do you base $1.00 on Stu? You need to add some analysis to any targets.

I think the historical chart is a bit choppy in front, so not sure on where the next real hurdle is.

I'm cautious on this breakup so far actually. Overall market has run a bit hard for my liking. Needs a decent rest imo.

 

[Sean K]

Wow, good intersections and grades here.

Shaping up to be something.

Need to have a closer look at potential strike to come up with a guestimate tonnage.

ASX ANNOUNCEMENT

THICK ZONES OF HIGH GRADE HEMATITE DISCOVERED AT MT WEBBER- DALTONS JV

• Encouraging early results from the first 3 holes from initial iron ore drilling of main southern hill at Mt Webber;

o 58m @ 58.3% Fe from surface, including 50m @ 59.6% Fe, 1.4%Al2O3
o 32m @ 58.4% Fe, 1.7% Al2O3 from 2 metres depth
o 82m @ 55.1% Fe from surface, including 50m @ 57.9%Fe, 1.8% Al2O3

• Project located 150 kilometres south of Port Hedland, and close to existing rail
• Ongoing drilling continues to intersect thick zones of hematite mineralisation

More great grades and depth discovered.

This could turn into something.

ASX ANNOUNCEMENT

SIGNIFICANT HIGH GRADE HEMATITE DISCOVERY CONFIRMED AT MT WEBBER- DALTONS JV

• More significant results from initial iron ore drilling of main southern hill at Mt Webber;
o 70m @ 58.4% Fe from surface, including 54m @ 60.9% Fe, 1.5%Al2O3
o 52m @ 60.5% Fe, 1.3% Al2O3 from 4 metres depth
o 60m @ 58.6% Fe from surface, including 44m @ 60.1%Fe, 1.7% Al2O3
• Initial resource estimate and Scoping Study to be commissioned on receipt of remaining assay results.
• Project located only 150 kilometres south of Port Hedland, potentially close enough for trucking operation to port, and also close to existing rail.


Crunching some basic numbers they have the possibility of shaping up an OK resource. They claim it's 600 x 450 and adding in 50m depth x 2.5 density it comes to around 34Mt @ 60%. Depends a bit on the drill angle and slope of deposit. This is from the southern target.

They also have an area 200 x 200 @ over 60% rock chip samples just to the north 'North Hill' which the JV partner reported returning 16-35m @ 55% +. So, possibly 2.5Mt using 25m thickness there.

Wouldn't be surprised if they join hands with Atlas on this one in some shape or form. AGO have 30 or 40Mt on the same strike. Not sure at what stage they are in developing their project. Interesting to see where it all goes.

 

[Sean K]

Further great results from MT Webber southern hill close to AGO's deposit.

Should be re-rated soon I'd expect on their project pipeline.

Sits 4th on my list of 25 companies for DSO to EV comparison and 11th for Mag. Only BRM beats it overall I think.

But, hard to put a figure on them in the IO to EV comparison as it's all dispursed and no one major deposit.

Well undervalued on the DSO currently rated at about 54c a ton, where the average is $6.15 on my watchlist, covering explorers and producers.

Plenty of room to move.

STRONG HEMATITE INTERSECTIONS FROM MT WEBBER

• Further assays received from initial iron ore drilling of main southern hill at Mt Webber.
More thick high grade low alumina intersections;

o Hole RCDW028; 52m @ 59.2% Fe, 1.2% Al2O3 from 14 metres depth, and
20m @ 58.4% Fe, 0.4% Al2O3 from 84 metres depth
o Hole RCDW029; 34m @ 60.5% Fe, 1.0% Al2O3 from surface
o Hole RCDW032; 38m @ 58.6% Fe, 1.5% Al2O3 from 10 metres depth

 

[Sean K]

Best results come from the final drilling, looks to be very low impurities which is good. No time frame on the initial JORC, so wait and see. Won't be too great I think. It's not a big area that they've drilled and deposit ranges 10-50m thickness by the look.

Not sure what the future of this will be. Couldn't be a standalone deposit. Maybe they will hit something grander further to the north.

Or, maybe a JV with AGO for a Mt Webber combined operation.


ASX ANNOUNCEMENT

BEST INTERSECTIONS TO DATE IN FINAL MT WEBBER HEMATITE RESULTS

• Final assays received for the last 5 holes from initial iron ore drilling at Mt Webber.
More thick high grade low alumina intersections, including best results yet;
o Hole RCDW036; 68m @ 60.9% Fe, 0.7% Al2O3 from surface,
o Hole RCDW038; 38m @ 58.3% Fe, 0.6% Al2O3 from 4 metres depth,
o Hole RCDW040; 64m @ 55.6% Fe, 1.5% Al2O3 from surface, including
30m @ 60.1% Fe, 1.0% Al2O3
• Every hole on main hill returned significant hematite intersection.
• Data base and interpretation being finalised for initial resource estimate and Scoping Study.

 

[stu_lee44]

Good on you,Kennas.

I'm keeping selling and buying for a while. The result is good. I just wonder waht time it will rocket.

Best results come from the final drilling, looks to be very low impurities which is good. No time frame on the initial JORC, so wait and see. Won't be too great I think. It's not a big area that they've drilled and deposit ranges 10-50m thickness by the look.

Not sure what the future of this will be. Couldn't be a standalone deposit. Maybe they will hit something grander further to the north.

Or, maybe a JV with AGO for a Mt Webber combined operation.


ASX ANNOUNCEMENT

BEST INTERSECTIONS TO DATE IN FINAL MT WEBBER HEMATITE RESULTS

• Final assays received for the last 5 holes from initial iron ore drilling at Mt Webber.
More thick high grade low alumina intersections, including best results yet;
o Hole RCDW036; 68m @ 60.9% Fe, 0.7% Al2O3 from surface,
o Hole RCDW038; 38m @ 58.3% Fe, 0.6% Al2O3 from 4 metres depth,
o Hole RCDW040; 64m @ 55.6% Fe, 1.5% Al2O3 from surface, including
30m @ 60.1% Fe, 1.0% Al2O3
• Every hole on main hill returned significant hematite intersection.
• Data base and interpretation being finalised for initial resource estimate and Scoping Study.

 

[lazyfish]

Best results come from the final drilling, looks to be very low impurities which is good. No time frame on the initial JORC, so wait and see. Won't be too great I think. It's not a big area that they've drilled and deposit ranges 10-50m thickness by the look.

Not sure what the future of this will be. Couldn't be a standalone deposit. Maybe they will hit something grander further to the north.

Or, maybe a JV with AGO for a Mt Webber combined operation.


ASX ANNOUNCEMENT

BEST INTERSECTIONS TO DATE IN FINAL MT WEBBER HEMATITE RESULTS

• Final assays received for the last 5 holes from initial iron ore drilling at Mt Webber.
More thick high grade low alumina intersections, including best results yet;
o Hole RCDW036; 68m @ 60.9% Fe, 0.7% Al2O3 from surface,
o Hole RCDW038; 38m @ 58.3% Fe, 0.6% Al2O3 from 4 metres depth,
o Hole RCDW040; 64m @ 55.6% Fe, 1.5% Al2O3 from surface, including
30m @ 60.1% Fe, 1.0% Al2O3
• Every hole on main hill returned significant hematite intersection.
• Data base and interpretation being finalised for initial resource estimate and Scoping Study.

Had a quick read and I think it would be around 30MT.. ish, didn't spend too much time on it. I think most of the tennements are o.k. in terms of grade and contaminants. However I don't know how they are going to operate/blend with all their deposits so far apart, and do they have potential access to rail and port?

I have a buy order placed some days ago and it's not filled yet...

 

[Sean K]

Yes, agree with the deposits all over the place comment.

They need to discover a whopper in the one location close to infrastructure.

Current EV is $58m and they have 100m DSO and 72m Mag, both numbers to be upgraded in the coming months with the recent discoveries and drilling campaigns.

Their DSO to EV is worth $0.58 a ton - average market $6.34
Mag to EV is $0.81 a ton - average $0.93

Under the averages probably for locations.

But lots of exploration upside.

Not sure which is their most valuable deposit.

 

[Sean K]

Bouncing up from support but approaching, or in, significant resistance zone.

I'm hesitant to buy more while under 82, looks like a lot of trouble there.

60 certainly firmed up as good support.

Chart update, broke that 82 short term area but then failed on the breakthrough. Support established about 70 and now broken through again to finish at a 11 month high yesterday. Probably related to the other positive IO news about. Been good since the breakout at 40c!

 

[Sean K]

Crunching some basic numbers they have the possibility of shaping up an OK resource. They claim it's 600 x 450 and adding in 50m depth x 2.5 density it comes to around 34Mt @ 60%.

Had a quick read and I think it would be around 30MT.. ish, didn't spend too much time on it. I think most of the tennements are o.k. in terms of grade and contaminants.

We were close enough, but it's higher.


INITIAL IRON ORE MINERAL RESOURCE ESTIMATE FOR MT WEBBER HEMATITE DEPOSIT

• Initial Inferred Mineral Resource for Haoma’s 25%/Giralia’s 75% owned Mt Webber deposit at the Daltons JV.
o Overall Resource 40.0 million tonnes @ 57.3%Fe (62.3% CaFe) and 1.42% Al2O3 o Includes higher grade zone of 24.6 million tonnes @ 59.0%Fe (64.2% CaFe) and 1.33% Al2O3 with an Fe cut-off of 57%
• This maiden estimate for the Mt Webber deposit is based on a 40 hole first pass drilling program completed in May to August 2009.
• The low alumina resource is near-surface, and within road haulage distance of Port Hedland.
• Mining Scoping Study commenced to evaluate development options.
• Recent rock sampling and mapping of areas of hematite potential within the Daltons JV has identified targets for resource growth, particularly immediately north of the Atlas Iron resource on the western range at Mt Webber.

 

[lazyfish]

They included the northern zone and some lenses below the main zone which wasn't visible on cross section, otherwise you would be spot on

All GIR need is access to infrastructure. They have more than enough in the ground IMHO. (Portman had a market cap of 2B and a resource less than 100mt when bought out by Cliffs, if I remember right).