KWR - Kingwest Resources

[finicky]

Bid in for 20,000 more KWR @ 16c
Disclaimer: I wait for years to see if my specs pay off

Kingwest Resources reports some of its best results to date at the Menzies gold project

Kingwest Resources Ltd’s (ASX:KWR) Ed Turner tells Proactive's Andrew Scott that drilling within the Lady Shenton, Lady Harriet and Yunndaga systems at the...

www.proactiveinvestors.com.au

 

[finicky]

Gee, just saw on my email that I picked up those 20,000 @ .16 that I had a sitting bid for.
Something happened today - how disorientating.
The best place to look for Gold is under the head frame of a shaft mine in an abandoned 100 year old gold field.?

 

[frugal.rock]

The best place to look for Gold is under the head frame of a shaft mine in an abandoned 100 year old gold field.

The head frame you speak of is known as the "poppet head".
The old ones were timber then along came iron & steel.
Here's a simple oldy.

 

[finicky]

Sold! To the fool in a hat on the couch*
Another 20,000 shares @ 0.16
Now holding 100,000 and I await a suspected rights entitlement
* actually a bed, or even more precisely, a mattress

I was just reading back over some old KWR presentations and saw that they have $3.3m that they have still to pay Horizon Minerals (HRZ) for the vending of the Menzies Gold Project tenements. The payment for the MGP was staged and the second tranche was to be paid not later than 18 months after settlement. Settlement was around July 2019. So by my rough reckoning, second tranche would be by Jan 2021. At least, I can find no announcement that this has been paid. It amounts to $1.65m in cash and $1.65m in KWR shares.

Also a rationale as to what might be weighing down the share price at 0.16. There have been at least three recent significant capital raisings (including placements to sophs and insts) that might be motivating profit protection or just moving on from the declining or stagnant S.P. around 0.16. Something Tony Locantro said, that has stuck, is that it is common for big money to participate in placements without any intention of sticking around ??

• $4m raised Sept Qtr calendar 2019 @ 0.15
• RE and Plcmt in Sept 2020 @ 0.135
• Plcmt in Feb 2020 @ 0.165

 

[Trav.]

@finicky I was reading through this thread and was a bit confused on your logic to enter in your initial purchase then with your subsequent purchases to average down ? Please don't take this the wrong way as I am not perfect (far from it) but as I said I am interested in your thought process on this one.

1. Do you trade on a combination of FA and TA?

I could not see your entry point clearly on the chart posted - There is a close above top Bollinger Band around the 13/10 that could have provided a lower entry point ~ 17.5 to 18.5c

Entered with 20,000 @ 21.5 on Monday, but not because of any fragile commentary here.

Overhang of rights and placement issue @ 13.5c could weigh down further but dramatic long tail daily hammer candle today. I will add if it gets down to near placement price.

2. As quoted above you mentioned that 13.5c would be the key level to add, but you added at 20c, 16c, 16c, 16c -

3.

Disclaimer: I wait for years to see if my specs pay off

Fair enough mate, but with around $18k invested so far, this ties up some funds so how long are you really willing to wait? If years then you have more patience than me.

As said above please don't take this as a attack on you as I can show you my trades on CLA and you will shake your head in disbelief on the stupidity in my actions. If not comfortable to share please disregard the above.

Good luck in the trade.

Trav

 

[frugal.rock]

Should say I jumped ship... and sold not long after re entry.
Gold and XGD just weren't coming to the party.

I can show you my trades on CLA and you will shake your head in disbelief on the stupidity in my actions.

I could show you my trades on NSX and CGB and the head skaking at MY stupidity would cause a time rift and land you in Mumbai !
Eh,? who's the dumbest one now, eh, eh!?
lol

 

[Trav.]

@frugal.rock yes mate I think that we all have some skeletons in the closet.

This forum is a good way to post our thoughts and actions, sometimes as a live diary or sounding board but I believe that we will never stop learning. Hopefully some friendly questions might challenge our thought processes.

 

[finicky]

Some probing questions there @Trav ?? reminded me of why I left 'Intelligent Investor' after a brief encounter. I took their tests, or more correctly, began their tests to assess my investing I.Q and was doing quite poorly so decided they must be wrong, lol

Good luck in the trade.

That's part of it, I don't feel that I am a trader and identify more with the term 'investor', even for a speccie like KWR. Of course I do trade though, for the usual reasons like derisking or because I need a cash position or I lose faith in management. Some of my best stocks I held through thick and thin, like: CDA, IMD. Even CHN I imagine a trader would likely be out of by now.

When I get excited by a stock I tend to enter prematurely out of fomo, like the first KWR 0.21 entry, then I take a more sober chart based approach to accumulate. As long as I retain confidence in management I have no problem averaging down, in fact I welcome the opportunity. If the chart looks wonky as KWR does, I will still accumulate if have a positive vibe about the 'fundamentals'.
I certainly take an interest in fundamentals and take on information, commentary and views of others a lot but don't stress myself anymore and just pretty much accept my limitations. I'm repelled by rules based, mechanical, systematic, highly technical styles of trading as I have no aptitude and feel no interest.

I might be getting more risk appetite out of boredom or being lulled by how well the market's been going. Plus over confidence due to Chalice Mining windfall and the conviction that we continue to be in a secular bull market in gold.

 

[Trav.]

@finicky thanks for your response mate. We all have different styles and I am still finding my way so I am always interested in the way other forum members view the markets or stocks

I wish you well with your investment and hopefully the tide turns with that bloody gold price that is taunting me.

 

[Trav.]

Whilst I was looking at this stock and having lived in Kalgoorlie for around 10 years I found the following pretty funny

Sealed roads is a bonus especially since the Goongarrie project is located adjacent the Goldfields Highway

Menzies whilst not being a major tourist destination it is not in the boondocks and yes it does have water and grid power

....unbelievable that people put this sort of garbage out, maybe catering for people overseas that still think that Australia has

kangaroos hopping down the main streets in our city's

 

[barney]

unbelievable that people put this sort of garbage out, maybe catering for people overseas that still think that Australia has kangaroos hopping down the main streets in our city's

Lol .... I think its all good Trav ...... Personally I am very un-travelled and don't know anything about the area, even being an Aussie!!

So I guess they are stating the obvious to the locals, but the non-locals (me included) still need educating.

PS ... You mean you don't have Kangaroos hopping down the main street .. What the !!???

PPS Have a good Xmas?

 

[sptrawler]

Yes @Trav. maybe they should have mentioned Menzies population. ? It could be worse, it could be 80klm north of Wiluna.?

The best story out of Menzies, is the Town hall clock. By the way i put a unit in Menzies power station, before it was on the grid in the mid 1980's.

Merry xmas @Trav.

 

[Trav.]

@barney yes I am sure they have to cater for all types but it did amuse me

@sptrawler you are right mate, there are worse places out that way.

Just to bring this back on track for the team, below is a chart showing some potential for a kick up for the 3rd wave in the next couple of weeks.

Also in oversold territory to back up the theory.

Good luck to holders and Merry Xmas to all ? ? ?

 

[frugal.rock]

Sealed roads is a bonus

I would say, sealed roads and unsealed roads can make the difference of a business failing or thriving out there, and that's just when staying on the track....
Unsealed roads and untimely rain have brought many ventures undone !
Inexeperience and lack of preparation have dropped many out there.

In a lighter note, Merry Christmas Al.
Cheers.

 

[barney]

In a lighter note, Merry Christmas Al. Cheers.

Indeed Rock, and Merry Christmas to all and sundry including your good self. You have been a stalwart of fresh ideas and input at ASF since you joined and JowBlow would no doubt appreciate that!☺

PS Who is Al ?? Do I know this guy Al ?? ..... JK? have a great day with the family tomorrow.

 

[frugal.rock]

Stellar gold grades in Goongarrie Project discovery

HIGHLIGHTS

First assays received from inaugural Aircore drilling program at the highly prospective Goongarrie Gold Project (GGP) include:

• 6m @ 17.2 g/t Au from 94m within 38m @ 3.1 g/t Au from 62m in KGA038 to end of hole (blade refusal)

• 4m @ 2.5 g/t Au from 74m within 8m @ 1.3 g/t Au from 74m in KGA 039 (adjacent hole, 60m east of KGA038)

• These results come from the first 28 angle holes drilled to test to the top of fresh rock with assays pending for another 80 such holes drilled to date

• The holes highlighted are immediately along strike from Ardea’s 2020 Aphrodite North Discovery

• Several of the most exciting GGP targets (A1- A4) under lakes still to be drilled in 1H, 2021 by track mounted Aircore rig

 

[finicky]

Non exec director Jonathon Downes buying a few on market. Not a lot I guess and might just be trying to goose the market but he does already own a few million, not counting options and he is a director of other companies he could have put into.

Chart: price is up 10% on low volume at posting. I am mostly expectant that the chart will congest around .20 for a while then break through and move up to .25
Showing relative strength for a goldie in this trying time.

 

[finicky]

Got a bid now starting to get filled for another 50,000 @ 0.175
As covered by @frugal.rock but worth highlighting I think, that best result from first pass drilling of virgin Goongarrie ground is worth upping the ante to me. More results pending. Ed Turner says their best targets are still to be drilled beneath the salt lake but they need a special track mounted rig. Goongarrie could get more exciting than the main game further north, the Menzies Gold Project.

Share price is down hugging the 50 dma

 

[finicky]

Still seems like sales season to me for the goldies - maybe I do have a faint streak of contrarianisim after all. My eyes swivelling in all directions: RRL, HRZ, DCN - but I settled on good old KWR for 20,000 more @ 0.165
I see the 0.16 bid being worked through now, typical.
Previous chart reading a miscall obviously, I'm going to put that down to a change of sentiment brought on by the plunging gold price rather than obtuseness on my part.

 

[finicky]

I keep averaging down and the price keeps dropping. Sitting bid hit right out the gate this morning for30,000 @ 0.15, price now 0.14. Put another bid in for 20,000 @ 0.135

Good update on Monday. More open pittable shallow gold announced at indicated resource level. Using the cash income results that HRZ got from their trial mining at their Boorara project, KWR could hypothetically make substantially more cash than their market capitalisation from contract mining and toll milling of say 2/3rds of the current indicated resource. The grade looks higher than that mined at Boorara. I might try to find some numbers if energetic enough. There's a number of mills accessible from the Menzies gold project location. The project straddles a major sealed road, has mining leases covering the deposits, with water and power sorted.

I sent an email query to CEO Ed Turner this a.m, indicating I was sheeting myself that I might have been buying prematurely considering that 20,000,000 shares are to be unleashed from escrow on Mar 18 but he kindly replied immediately to effect that the 20,000,000 shares all belong to Horizon Minerals. The parcel was part of the acquisition cost from 18 months ago for the Menzies and Goongarrie Projects.Turner well knows the disposition of the M.D of Horizon, Jon Price, since Mr Price is also a director of KWR and Mr Turner said he does not believe that there is any intention by HRZ to sell at this time and HRZ is a supportive major shareholder. The other concern I suppose is the possibility of an imminent capital raising, which I didn't ask him about obviously. I think there is also still some money due to HRZ as part of the said acquisition transaction.

Yesterday's announcement