KAL - Kalgoorlie-Boulder Resources

[Rocket man]

very quiet on KAL thread today

Up 22% on no news. Was in desperate need of an upwards re-rating but I think also some news may be on the way.

Comments anyone ? tech people ?

 

[Whiskers]

Solid buying again today. 15.6M traded and up 4.

Highest turnover for abt 6 weeks.

Not sure whether all POG related or an announcement imminent.

 

[Wilson!]

Hi there

I have always been a holder of kal, latest 16c and today added to my position shares at 20c

I didnt do it until it looked like breaking 20c, which it did, as I saw 20c as a huge barrier to overcome, and once past that it should retest its old highs of 26.5c

With its projects a few months more advanced, and POG going nuits, it should break through that easily I expect, but we will see of course

Good fwew days AHEAD...

 

[shaunm]

I hadn't been following KAL much lately and was pleasantly surprised to see the price today. Of course I won't be truly happy until it hits and exceeds 25cents as that's what I bought in at months ago.

 

[Wilson!]

You should be right soon shaun, nice work hanging in there.

This should be one of the best for 08 I reckon, with uncertainty pog will continue up, and they will hopefully keep adding to their overall tonnage and bring the grades upo higher hopefully each time

 

[Wysiwyg]

Unfortunately i see some wax running down the side of that candle today.Reaction to USA & profit taking from yesterdays push.Nothing unusual i suppose.

 

[Wilson!]

Kal is holding up extremely well today, all holders must be very happy with this on such a poor asx day!

 

[Rocket man]

Kal is holding up extremely well today, all holders must be very happy with this on such a poor asx day!

Its down 6.7% I wouldnt call that holding up well

But yes considering yesterdays gains it still looks on good shape and lets hope for improvement at end of the day from buyers re-emerging

 

[bob56]

I'm surprised kal didn't get a speeding ticket from the asx.
It is hard to believe that the increase of the sp is because of the Intersuisse research since that was out in December. Any ideas why the sudden increase in sp?

 

[Spaghetti]

I did not even know about theat broker report. Good reading though.

On the website if anyone is interested for a read, especially after friday fallout s/p is back close to the recommened speculative buy price.

http://www.kalgoorlieboulderres.com.au/cms/kbrl/documents/KBRL_Intersuisse_12_07.pdf

 

[Plugger]

Such a shame this is getting cut down while everything else is being butchered.
One can only wait for blue sky.

 

[Spaghetti]

If stocks with imaginary gold continue to outperform stocks that actually have gold I will SCREAM. lol Hope people do not hold those type of stocks long term because they should realise that once they do actually prove they have gold the stock becomes worthless!

Though would prefer to see KAL get over the 1.5Moz mark, not much of an ask seeing they have 1.4Moz already with further exploration results to come. May take a while perhaps for a full recovery as specs will be off the shopping list of many and perhaps gold fever will have to take a bigger hold fo the investment community before these little gems take off.

Current market cap per ounce $15. Doesn't take more than 3 brain cells to see in a rising gold price environment that sort of valuation will not last too long. I hope KAL does well, my holdings are as volatile as the market has been lately, probably may wait some before a top up unless I see a build in momentum.
Good luck holders.

 

[alphman]

It's been a while since I posted on this thread...

Thought I'd share a couple of recent write ups in the Mining Chronicle that is available on their website...enjoy.

http://www.kbrl.com.au/cms/kbrl/documents/mining_chronicle_1.pdf

http://www.kbrl.com.au/cms/kbrl/documents/mining_chronicle_2.pdf

 

[AussiePaul72]

Well KAL has puzzled me a bit lately. IMO it is still very undervalued with a current resource of 1.4 M ounces gold and a market cap currently under $20 million.
After reading the quarterly, there is lots of news to come in the near future including:
Norseman Gold Project
- KAL expects to release a further resource upgrade at Mt Henry by mid Feb.
- VTEM survey currently being used across entire Norseman tenement holding (124 sq.km) to potentially identify further drilling targets and potentially further increase the current 1.4 M ounce resource. Survey was due to be completed by end of Jan and results are expected to be reported by end of Feb
- initial scoping study on Mt Henry & Selene resources is expected to be completed during Feb/Mar
- company expects to begin a pre-feasibility study immediately following a positive scoping study outcome
Clinker Hill Nickel Project
- identification of Nickel, Cobalt, Copper, Platinum & Palladium anomalies
- after latest program identified a new area of anomalism, strike length has increased from 5 to 7 km
- SQUID survey now commissioned to determine areas of massive or semi-massive nickel sulphide mineralisation
- SQUID survey expected to commence in Feb for processing and interpretation in Mar
Lake Johnston Nickel Project
- company has commissioned a VTEM survey over this project which has similar mineralising structures to that of the nearby Emily Ann and Maggie Hays nickel mines
- survey started in 4th week of Jan and is expected to be completed and processed by end of Feb

So it would seem that KAL has lots of upside and while currently sellers are outnumbering buyers (anybody know why????), this may turn around very quickly with news during this quarter starting within the next few weeks! Good luck to all

 

[Whiskers]

So it would seem that KAL has lots of upside and while currently sellers are outnumbering buyers (anybody know why????), this may turn around very quickly with news during this quarter starting within the next few weeks! Good luck to all

I agree there Aussie Paul.

It looked to me like a lot of smaller trades in the end... maybe some panic selling and probably a number of smaller amounts just to meet margin calls too.

I reckon most of the blue chips are bought up again. So long as the market stays relatively steady I think buyers will start moving in on the small cap's soon.

 

[Whiskers]

A couple of break-out attempts have failed so far but I think we are getting to the pointy end of the wedge now.

I think we should have a positive market behind us this time and with various news items due over the next few weeks including a resource upgrade, if it don't go this time it probably ain't gonna... but I think it will.

But then I had GCR in a very similar pattern a few weeks ago, thinking surely some news soon and that it had to break up, but no news and the market turned sour and it broke down.

 

[cuttlefish]

I don't understand why this stock attracts so much interest. The grades are around 1.7g/t and the resource is spread across 2 deposits (plus a bit in two others) and isn't exactly super shallow either from memory. There would be unworked tailings dumps about the place that would have similar grades to this surely.

 

[derty]

I was thinking the same thing cuttlefish. There are a lot of hoops for these guys to jump through before it comes close to being a mine.

The 1.4M ounces is currently as inferred and indicated resources at a grade of 1.7g/t. A resource is calculated purely on geological and grade continuity. Factors such as gold price, processing costs, mining method/dilution, strip ratio and mining costs e.t.c. are not incorporated until reserves are calculated.

Selene's shallow dip allows good tonnes per vertical metre and will have a much lower strip ratio than Mt Henry. However, other than a few isolated thin high grade intersections the grade of both deposits is low. With the steep dip and low grade of Mt Henry it is unlikely a huge % of the resource will convert to reserve ounces.

The Norseman field is especially high grade when compared to the rest of the Norseman-Wiluna greenstone belt. However the gold mineralisation that occurs in the banded iron within the Noganyer Formation has always been low grade. The Norseman mill is an old, high cost, low tonnage, high grade mill as it is designed to treat typical Norseman ore and companies have been unwilling to commit to serious upgrades due to the perpetual 2-4 year mine life. It is very unlikely that KAL gold will be able to be treated in the Norseman mill. The next closest mill will be that of Avoca's at Higginsville, ~90km north, and it would be highly doubtful if AVO would have the spare mill capacity to treat the tonnages required to get the economies of scale required by the KAL grades.

Low grade gold ore doesn't truck very far either. The way I see it their only option is to build their own mill south of Norseman.

KAL also haven't addressed the amount of refractory gold either as as the gold in the BIF is associated with sulphides there is a chance that there may be a significant amount of refractory gold present.

I have not chased up the acquisition terms, though you also need to ask why the previous owners handed over deposits containing 1 million resource ounces of gold. If I were a company and I had 1M oz Au that was viable I would be raising some capital and keeping that sucker.

my worth. I do not hold KAL

 

[trtkjd1]

Yep got to agree Grade is king just look at the gold mines suffering in this bull market and predomantly the low grade mines that are having trouble. I worked in a lot of open cut gold mines in the 80's and most of the mines I worked on averaged aprox 3-4 grams per ton. Some made good $ a couple of others went under with treatment and grade issues. By the way this is open cut I'm talking about. In the current cost blowout and operating environment I would suggest anything under 2.4 grams could be risky. Just look at Monarch the first pit they went into to mine the grade turned to s--t and they have been struggling since. VRE has very low grade And are struggling for survival. I know these next two are underground mines but PSV and BDG both got themselves into trouble with low grade and orebodies that were smaller than expected. However I do think BDG still has some good longer term prospects as the field was historically very large and of good grades. Despite having said all this low grade can still be profitable, you just need massive orebodies and minimal treatment issues.

 

[cuttlefish]

I was thinking the same thing cuttlefish. There are a lot of hoops for these guys to jump through before it comes close to being a mine.

The 1.4M ounces is currently as inferred and indicated resources at a grade of 1.7g/t. A resource is calculated purely on geological and grade continuity. Factors such as gold price, processing costs, mining method/dilution, strip ratio and mining costs e.t.c. are not incorporated until reserves are calculated.

Selene's shallow dip allows good tonnes per vertical metre and will have a much lower strip ratio than Mt Henry. However, other than a few isolated thin high grade intersections the grade of both deposits is low. With the steep dip and low grade of Mt Henry it is unlikely a huge % of the resource will convert to reserve ounces.

The Norseman field is especially high grade when compared to the rest of the Norseman-Wiluna greenstone belt. However the gold mineralisation that occurs in the banded iron within the Noganyer Formation has always been low grade. The Norseman mill is an old, high cost, low tonnage, high grade mill as it is designed to treat typical Norseman ore and companies have been unwilling to commit to serious upgrades due to the perpetual 2-4 year mine life. It is very unlikely that KAL gold will be able to be treated in the Norseman mill. The next closest mill will be that of Avoca's at Higginsville, ~90km north, and it would be highly doubtful if AVO would have the spare mill capacity to treat the tonnages required to get the economies of scale required by the KAL grades.

Low grade gold ore doesn't truck very far either. The way I see it their only option is to build their own mill south of Norseman.

KAL also haven't addressed the amount of refractory gold either as as the gold in the BIF is associated with sulphides there is a chance that there may be a significant amount of refractory gold present.

I have not chased up the acquisition terms, though you also need to ask why the previous owners handed over deposits containing 1 million resource ounces of gold. If I were a company and I had 1M oz Au that was viable I would be raising some capital and keeping that sucker.

my worth. I do not hold KAL

thats a very thorough analysis of the situation surrounding this prospect. Even with rising gold prices it will be a fair way down the track before a deposit like this is attractive and hugely economical imo, and above is a well detailed explanation as to why.

just look at Monarch the first pit they went into to mine the grade turned to s--t and they have been struggling since. VRE has very low grade And are strugling for survival. i know these next two are underground mines but PSV and BDG both got themselves into trouble with low grade and orbodies that were smaller than expected . however i do think Bdg still has some good longer term prospects as the field was historicaly very large and of good grades. Despite having said all this low grade can still be profitable you just need massive orbodies and minimial treatment issues

yeah these are all good examples as to why its important that the homework is done thoroughly before mining commencement, there's no shortcuts and grade is very important. It also highlights the importance of taking a qualitative view as well as doing quantitative analysis when assessing exploration stocks - clearly the shape, size, depth of the orebody(s) as well as the quality of management and the risk management in any approach to development are significant factors.