KAL - Kalgoorlie-Boulder Resources

[Wysiwyg]

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.

I think the pesso`s might win in the next s.p. move.It may be general concensus or a redirection toward blue chippers .Hard to say really.
The scoping study this business is carrying out presently will tell us more than what we know about the KAL Norseman project.If the company optimism due to resource grade, gold price outlook and cost effectiveness is there with the scoping study then i will remain interested.Good luck to non-holders.

p.s. Sentiment rules apply.

 

[Whiskers]

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.



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.

Agree with all of that.

From speaking to the exploration manager as I mentioned way earlier in the thread, he was a bit coy at giving away too much detail, but I got the impression that they are very excited about some new tenements applied for as well as the prospect of increasing resource grade and volume with each subsequent drilling program by better definition of higher grade seams.

They also have some promising grass roots projects such as Break of Day, Telegraph and Everlasting with seams about 3m @ 20 odd g/t. Similarly good grades at Broad Arrow which they will sell at the right price and Dunnsville which I was told is definately not for sale where there is a 4 km long gold anomaly with a 3 km x 1 km zone targeted for further exploration.

Then there are the nickel prospects such as Clinker Hill with interesting initial Cu and PGE anomalies thrown in. This area I believe has got a lot of exploration effort recently to determine the full extent of mineralisation before launching a drilling program.

I also get the impression that this new management team is being deliberately pretty conservative in what they say compared to some others that ramp up the hopes of people and fail to deliver. That is the main reason for my confidence.

 

[alphman]

Seeing a bit more interest in KAL this morning which is very refreshing for a change. Buy depth outnumbering sell side 3:1.

 

[Spaghetti]

Agree/Disagree with some arguments here.

The grade may have been low once in comparison but currently would be higher than majority gold actually mined in Australia.

When it was sold of course much lower price of gold plus there has been significant upgrade to the resource since. Very common to see resources sold off during these times due to low POG.

It compares favourably to other explorers deposits so based on choices we have in the market atm pretty good. Size of deposits highlighted, again compares favourably to what we have on explorers books atm

Key word is perhaps choices, doesn't seem much to choose from that would meet previous criteria of posters and is possibly why the gold explorers/juniors are struggling.

It is a guess how high the pog will have to go to ignite Australian gold stocks but when it happens no reason KAL should not do very well given it's current m/c.

 

[Spaghetti]

Presentation out today, already know they have plans for carbon in leach processing.

feasibility to ascertain

100 to 120,000 oz per annum for 6-7 years.

2mt p.a stand alone plant

Further exploration to extend mine life

Not bad so far, another few years mine life would be sweet. Maybe they find this gold at Dunnville.

 

[jonojpsg]

No-one commenting on the scoping study results?

HIGHLIGHTS
● 1.8Mtpa open cut gold operation over 7 years
● Average NPV of A$ 80 million (before tax @ 10%)
● IRR (Internal Rate of Return) of 40%
● Net project cash flow after capital of A$143 million
● Operating costs of A$660/oz
● Capital costs of A$75 million
● Capital payback over first 32 months of operation.
● Company commits to pre-feasibility phase of development
SUMMARY
Kalgoorlie Boulder Resources Limited (KBRL) is pleased to announce positive results from the Scoping Study on its 100% owned Norseman Gold Project in Western Australia.
The results confirm robust economic returns from a 1.8 million tonnes per annum open cut gold mining operation, located 30km south of the prolific gold producing centre of Norseman. Production is capable of commencing in 2010, producing an average of approximately 100,000 ounces of gold per annum for seven years.
The Project is forecast to generate a net project cash flow of A$143 million over a 7 year period after allowing for an initial capital cost of A$75 million. The company expects a capital payback period of 32 months, before taxation considerations.

Seems like a reasonable outcome for a company with an MC of $13m - anyone else care to comment.

I have a few queries - high costs per ounce ? needs a high gold price to be maintained - is this likely over the next two-three years ?

 

[exgeo]

The one thing that leaped out at me was the high gold price needed to make the thing viable. Operating costs of over AUD$ 600/Oz is pretty high. That's why I sold out at 11.5 and plan to re-buy lower down.

 

[Whiskers]

The one thing that leaped out at me was the high gold price needed to make the thing viable. Operating costs of over AUD$ 600/Oz is pretty high. That's why I sold out at 11.5 and plan to re-buy lower down.

Yeah, it's a bit high, but early days yet. I think they have good potential to improve grades as well as resource including at Clinker Hill.

I'm looking to accumulate again on soft days.

From the latest ann:

KBRL Chairman Michael Atkins said “The results of the Geophysical survey, confirms
our long held belief that the geological environment is positive for Nickel Sulphide
mineralisation at the Clinker Hill project.”

The SQUID EM survey totalled 34.5 line kilometres and covered 6 square kilometres of
the highly prospective basal contact zone of the Clinker Hill Project.

The survey was undertaken to follow up three main geochemical soil anomalies. The
most significant anomaly is a 700ppm Nickel anomaly that covers an area of
approximately 900 metres x 100 metres in a possible favourable embayment in the
basal contact. There is also a 400ppm nickel anomaly that extends 5 km along the
basal contact and an isolated 300ppm anomaly to the south west. These anomalies
are coincident with elevated Cu, PGEs and Co values.

The survey has identified seven extremely promising EM conductors along the basal
contact (see map).

Four (4) of the discrete conductors are located in a mapped embayment in the basal
conduct. This area coincides with multi-element Ni, PGE, Cu and Co soil anomalies.
Rock chip samples of a gossan in this area assayed 26.4% Cu, 1.4% Ni, 5.6g/t PGE,
58g/t Silver (Ag) and 2.4g/t Gold (Au). The mapped embayment may be a structural
zone that permits the further concentration of nickel sulphide minerals.

 

[radar23]

I take it everyone got out of these shares then! new low after new low. Now who was it that said you should not carry more than a 10% stop loss. I think I was dreaming when I thought this KAL lot would go anywhere!

 

[Whiskers]

Well, I'm all stocked up here again. It's unclear what the value for all the property and share shuffling going on will be, but from a TA point of view I figure KAL has reached the end of it's corrective phase and is just about ready, or if my analysis is correct, is in the progress of the first step of a new bull leg.

From what I can glean from the rather complicated plan from the recent announcement (extract below) I shouldn't go far wrong with an average price below .046.

Also, I see the POG only trending higher and there must be some more drill results to come soon from from Dunnsville and Lake Kirk.

15 August 2008

ACQUISITION OF NEW PROJECTS, PROPOSED CAPITAL
RAISING AND NEW CORNERSTONE SHAREHOLDER GROUP

Kalgoorlie Boulder Resources Ltd (ASX:KAL) is pleased to announce that the
Company has entered into an Agreement to acquire Matsa Resources Pty Ltd,
(Matsa) a private company associated with Mr Paul Poli and Mr Andy Viner and
furthermore for Mr Poli and Mr Viner to acquire the majority of shares of the
Company’s major shareholder RASL AU, LLC.

The acquisition of Matsa, the proposed capital raising and the sale of RASL’s
shareholding will be subject to due diligence by Mr Poli and Mr Viner (expected
to be completed within 14 days) various shareholder approvals and other
corporate regulatory requirements.

Acquisition of Matsa Resources Pty Ltd

Matsa has interests in projects in Western Australia and South East Asia,
including an established operational base in Bangkok. Exploration opportunities
have been established in Thailand, Laos, Cambodia and Indonesia and a
development project in Thailand is currently under negotiation.

Kalgoorlie Boulder will issue 80 million shares and 20 million options at an
exercise price of 7 cents per option, expiring 01/07/2011 to acquire Matsa.

Messrs Poli and Viner will join the Board of Kalgoorlie Boulder and the
Company’s Executive management team at completion. Mr Poli is a Perth
businessman with wide business and investment interests in Australia and SE
Asia. Mr Viner is an experienced Perth based geologist and Company Director.

The Company has been undertaking a strategic review of its operations over
the past few months and believes that the acquisition of Matsa and subsequent
capital raising will allow the Company to:

1. Continue to develop its Kalgoorlie and Norseman projects; and
2. Expand into new projects and regions that the Company believes will
create long term shareholder value.

Proposed Capital Raising

The Agreement provides for a capital raising that will be significantly
underwritten by Messrs Poli and Viner and that will give the expanded Company
the capital required to enhance the value of its existing projects and to realise
the potential of new projects.

Messrs Poli and Viner (Underwriters) will underwrite a proposed 1 for 3
renounceable rights issue to the extent of $3 million. The rights issue will have
an issue price at 80% of the 5 day VWAP at the date of the underwriting
agreement. An underwriting fee of 20 million options exercisable at 7 cents per
option before 01/07/2011 is payable to the Underwriters.

 

[oldblue]

I hope you're right, Whiskers.
I went to sleep on this one and got left with more than I should have.
Such small volumes/values traded these days that I'm not as confident as you that better SP's are around the corner.

 

[exgeo]

I'm a shareholder in 5 or 6 speccy gold explorers including this one. All of them have been under heavy selling pressure, but with the exception of Norton (screaming buy I'd say, EPS of 2.8c and share price of 15c!) they have stopped going down and selling appears to be abating. Norton is a special case as I think the collapsing value of RAB capital is forcing them to sell down at any price.

 

[oldblue]

Hi exgeo.
Yes, Norton looks interesting. Not the correct thread but could you fill us in about the RAB Capital business? I can't find any reference to this.