PRX - Prodigy Gold

[mr. jeff]

ABU have been down today, but after friday's surge no surprise.
Today's announcement very good, further good drilling results
"12th September, 2011
Discovery at Cypress Prospect with
26 metres averaging 5.53g/t Gold including
7 metres averaging 20.13g/t Gold
ABM Resources NL (“ABM” or “The Company”) is pleased to announce further drill results from the
Company’s flagship Twin Bonanza Gold Camp Project.
• New Discovery at the Cypress Prospect with CYRC100004
intersecting contact shear / vein related mineralisation returning:
• 26 metres averaging 5.53g/t gold (0.5g/t cut-off) including:
 7 metres averaging 20.13g/t gold.
• Discovery open along strike in both directions and up and down
dip.
• Discovery located on western contact of porphyry with a similar
style and a potential link to the Caribbean Zone located 0.8km to
the south.
• Other Cypress results include CYRC100002 intersecting Buccaneer
porphyry style mineralisation located 1km northwest of
CYRC100004 with:
• 40 metres averaging 0.83g/t gold (0.5g/t cut-off) including:
 2 metres averaging 10.68g/t (1.0g/t cut-off) gold."

Their potential grows. The market reaction to last weeks announcement was the same - good news followed by a sell down, hopefully that does not last too long.
They certainly have some decent ground there to be exploring.

 

[Starcraftmazter]

It was actually up to around 4.7% I believe today in the morning on those drill results; I couldn't resist the temptation to sell given how the market was going today.

I think there's a hell of a lot of potential in this for a bounce once it eventually comes.

 

[mr. jeff]

This stock has been very successful of late.
Sounds like ramping, but have a look at the history of their drilling and trenching.
Further results today saw 20% gain this morning.

"ASX ANNOUNCEMENT / MEDIA RELEASE ASX:ABU
13th October, 2011
Old Pirate Phase One Bulk Longitudinal Trenching Results:
First Three Veins Combine for Strike Length of
166 metres averaging 19.17g/t Gold
ABM Resources NL (“ABM” or “The Company”) is pleased to announce results from Phase 1 of the Old
Pirate Bulk Sampling and Trenching Program, which is part of the Company’s Twin Bonanza Gold
Camp Project.
• Overall weighted average from 207 samples with a combined strike length of
3 veins = 166 metres averaging 19.17g/t gold.
• Peak assay of 697g/t gold with 61 samples grading greater than 10g/t gold
(average 54.8g/t gold) and 6 samples grading greater than 100g/t gold
(average 259g/t gold).
• Individual vein-trench results are:
o 95 metres averaging 27.96g/t gold (open along strike) including:
 12 metres averaging 115.10g/t gold
 6 metres averaging 37.09 g/t gold
 22 metres averaging 29.95g/t gold.
o 46 metres averaging 10.59g/t gold (open along strike) including:
 32 metres averaging 13.74g/t gold.
o 25 metres averaging 8.50g/t gold including:
 6 metres averaging 19.68g/t gold.
• Individual veins exposed range from 10cm to 5 metres in width.
• Phase 2 trenching (440 samples) from other veins are in transit to the
laboratory and a further 700 samples to be collected as part of Phase 3."

Very nice.
ABM have gone from strength to strength and although an explorer they have a large parcel of EL's which are proving to be valuable.

19% holding by Tanami Exploration, subsidiary of TAM. other holders JP morgan front at 7%.

 

[Chasero]

This stock has been very successful of late.
Sounds like ramping, but have a look at the history of their drilling and trenching.
Further results today saw 20% gain this morning.
.

No one interested in this stock?

Looks very promising And breakout today no? 0.064 resistance broken

 

[mr. jeff]

When looking at the weekly chart it appears that the 7c mark will now provide some support. There are continued great drilling results coming from ABU and more expected. This news flow that they release regularly seems to nicely support the run...



Weekly chart ABU

 

[Avneel]

This stock has taken a beating in the last week. Aside from some weakness in the price of gold, any ideas what else might be affecting it??

What's the consensus on this bull run continuing for ABU??

 

[mr. jeff]

3 things

1 - they are an explorer
2- they are in gold which has been smashed
3- they attract a lot of speculators

weightings are:

1- 25%
2- 45%
3- 30%

this is an official release from my opinion resource

 

[mr. jeff]

For those interested, I was pondering the action from this corner and found that the 5c level is significant resistance - approximately there now, with sp at 5.3c .




You can see that the volume dries up at that level and then the stocks bounces back into the range. Not very exciting but so far today there has been quite low volume and may present a good buying opportunity - unless you are already in (probably with losses). Currently holding losses after not sticking to trading rules. BAD!

I have noted that my post further down was completely wrong, so don't want to be too bullish - ABU has not moved higher for a long time and this begs the question of why. Don't really know / does it matter? Not really.
Better explorers out there at the moment, but if that 5c level holds there may be potential for a low risk entry.

 

[Chasero]

For those interested, I was pondering the action from this corner and found that the 5c level is significant resistance - approximately there now, with sp at 5.3c .


View attachment 46090

You can see that the volume dries up at that level and then the stocks bounces back into the range. Not very exciting but so far today there has been quite low volume and may present a good buying opportunity - unless you are already in (probably with losses). Currently holding losses after not sticking to trading rules. BAD!

I have noted that my post further down was completely wrong, so don't want to be too bullish - ABU has not moved higher for a long time and this begs the question of why. Don't really know / does it matter? Not really.
Better explorers out there at the moment, but if that 5c level holds there may be potential for a low risk entry.

Been following ABU since jan.. always felt I 'missed the boat'.

Got in today @ 0.053.. there was around 1 mill of shares at 0.052 and 0.051... I ate all the shares @ 0.053 lols. Not much selling happen around 5c true

 

[Chasero]

Hyperion Drill Results Show Wide Mineralised Zones

The results don't seem too bad.

Either someone's keeping the price low or no one's interested in ABU?

Will see what happens this week

 

[mr. jeff]

Hyperion Drill Results Show Wide Mineralised Zones

The results don't seem too bad.

Either someone's keeping the price low or no one's interested in ABU?

Will see what happens this week

I think they have a JORC update coming soon too, which if I am right may spur a run up. They have had some very wide, shallow intercepts in the last year so this may surprise to the upside.

 

[ACEz]

WOW there has been some weird trades on this in the last few minutes, a heap valued at like 7-50 dollars.

This morning looked like a bit of an accumulation session though. Support seems to be holding well

 

[mr. jeff]

WOW there has been some weird trades on this in the last few minutes, a heap valued at like 7-50 dollars.

This morning looked like a bit of an accumulation session though. Support seems to be holding well

Doesn't look good in my eyes, not holding 5c and selling down again today but on reasonable volume. Don't know why other than suggesting that whoever has held a stake is offloading and moving on, perhaps due to an opinion on POG or perhaps due to the stocks conditions.

Forgetting the speculation, this offers a fundamentalist an opportunity to buy but I wouldn't touch it until it showed strong signs of recovering first.

With all the intercepts, you would wonder why it was not more like 14 cents so obviously something here smells and I don't know what it is.

I hold a small portion for some unknown reason.

 

[mr. jeff]

Great news and really offering some potential.



Great JORC announcement and really good grades.
Market cap currently at $162 M. I remember remarking that Ampella and PVM were around the 240M MC with comparable resources, quite surprising given the safety of being in Australia.

Will watch to see if it begins ascending again. (up 8% today, hope it terminates that down move). That high grade top strip will really pay back development quickly.

Now for production.

 

[springhill]

MC now of $133m

Since your last post Mr Jeff, these have been the last announcements.

Old Pirate Stage 1 Scoping Study Results
• 261,000 ounces gold recovered in Stage 1 open pit via gravity gold extraction methods. Stage 1 does not include cyanide leach, underground scenarios or integration of other gold bearing veins identified but not in the resource estimation.
• $27.1M capital expenditure (gravity plant, camp and associated infrastructure) paid back in the first 5 months of production.
• $257M Net Present Value (NPV) applying 0% discount rate (equivalent to cash flow over 2 years mine life).
• $228M NPV applying 9.8% discount rate.
• $511 per ounce of gold total operating cost inclusive of mining, processing, royalties and administration (cash cost ~$383 per ounce).

High Grade Gold Drill Results Extend Buccaneer
• High grade intercepts on the south east extensions of Buccaneer in BCRC100090 ending in mineralisation with:
• 31 metres averaging 3.68g/t gold (0.5g/t cut-off) including:
• 14 metres averaging 7.56g/t gold (1.1g/t cut-off).
• Recent review of 2011 drill core from Buccaneer reveals considerably more visible free gold in veins than previously observed prompting further review of higher grade zones.

Longitudinal Surface Sampling Uncovers New HighGrade Vein at Old Pirate with
185m strike length averaging 30.96g/t gold
• New "East Side" high grade vein discovered at surface; outside current resource.
• New "East Side" vein will likely be encompassed in a widened pit design also enabling more of the existing Old Pirate resource to be included in the pit.
• Systematic surface sampling results of the East Side vein received to date:
• 185 metres strike length averaging 30.96g/t gold including higher grade section of:
• 32 metres strike length averaging 101.0g/t gold.
• Peak assay value of 1150g/t gold (0.115% gold) and 26 other samples >100g/t gold.
• Abundant coarse visible gold sighted at surface.
• Reported vein section ranges from 0.15 metres to 1.8 metres width with an average width of 0.42 metres.
• East Side vein extends over a further 340m+ cumulative strike length pending assay:
• To the south, vein widens up to 3 metres width with ~90 metres of strike length and projected to link with the high grade Old Pirate South vein.
• To the north, vein splits into multiple veins with approximately 250 metres of cumulative strike length projected.
• A further 2000 samples+ of exposed vein and 40 RC holes for 6500m of drilling have been completed across the wider Old Pirate area and are pending assay.




New Prospect with Coarse Visible Gold at Surface Discovered 800m South of Old Pirate
New Prospect named “The Golden Hind" Prospect.
• The Golden Hind Prospect is located 800m south of the Old Pirate resource area.
• Approximately 400m strike length of outcropping vein between 30cm and 3 metres in width extending under cover along strike.
• Coarse visible gold observed in hand-specimen with assays pending.
• Never before drill-tested zone.

Phase 2: Longitudinal Surface Sampling links East Side Vein to Old Pirate South for a total of
343m strike length averaging 28.9g/t gold


• "East Side" high grade vein is extensional to existing resource and now confirmed to link with Old Pirate South resource area.
• Systematic surface sampling results of the East Side vein received for 2012 Phase 2:
• 63 metres strike length averaging 15.42g/t gold linking the East Side vein with the Old Pirate South resource area for a total vein sampling of:
• 343 metres strike length averaging 28.9g/t gold.
• Vein section is up to 3 metres wide with an average width of 1.9 metres with the widest sections carrying the highest grades of up to 273g/t gold.
• Two new extensional mineralised quartz veins also identified with an average width of 0.66 metres discovered between the East Side Vein and the main Old Pirate area with cumulative strike length sampling of:
• 110 metres strike length averaging 15.83g/t gold including a higher grade section of:
• 30 metres strike length averaging 55.70g/t gold.
• Surface sampling at the Golden Hind Vein completed and pending assay with:
• 400 metres projected target zone with multiple veins.
• 40 metre central section with continuous coarse visible gold sighted.

Phase 3: Longitudinal Surface Vein Sampling Extends the Western Limb of Old Pirate Beyond Existing Resource with:
126m strike length vein averaging 42.37g/t gold
• Western Limb vein with an average width of 0.19 metres extends north beyond theexisting resource with surface sampling returning:• 126 metres strike length averaging 42.37g/t gold.
• A peak value of 502g/t gold was returned from a surface sample.
• A recently discovered outcrop 600 metres further north is directly along strike and may provide further extensions (pending sampling).





That is an absurd number of shares on issue, these guys really need a share consolidation.

 

[springhill]

High Grade Gold Drill Results Extend Cypress Zone at Buccaneer
6 metres averaging 20.37g/t gold within 294 metres averaging 0.73g/t gold

ABU announce further results of this season’s extensional drilling at the Company's 2.67 million ounce gold Buccaneer Porphyry Deposit.

Highlights from Buccaneer
• High grade intercepts at the Cypress Zone at the Buccaneer Porphyry Gold Deposit in hole BCRC100101 with:
• 6 metres averaging 20.37g/t gold (1.1g/t cut-off) within:
• 294 metres averaging 0.73g/t gold (0.2g/t cut-off).

• Other results include extensions of the Eastern Contact Zone at Buccaneer with:
• 157 metres averaging 0.45g/t gold (0.2g/t gold) including two zones of:
 39 metres averaging 0.90g/t gold (0.5g/t cut-off) and
 22 metres averaging 0.97g/t gold (0.5g/t cut-off).

 

[mr. jeff]

ABU drifting and seemingly not going anywhere exciting at this stage.
Porphyry type ounces not favourable and my suggestion as to lacklustre sp. even when announcing high grade.

Has there been any PFS done or are they another explorer only?

 

[springhill]

Further Old Pirate High Grade Drill Results

Highlights from Drilling
• Old Pirate South zone extended 90m down plunge in hole OPRC100036 with:
• 8 metres averaging 24.14g/t gold.

• Western Limb Vein extensions at depth in OPRC100058 with:
• 5 metres averaging 52.27g/t gold.

• Other Results from various drill holes include:
• 8 metres averaging 3.22g/t gold;
• 1 metre grading 18.70g/t gold;
• 4 metres averaging 4.03g/t gold;
• 3 metres averaging 4.33g/t gold;
• 2 metres averaging 6.42g/t gold;
• 1 metre grading 10.2g/t gold.

Mr Jeff, all I can find is a Scoping Study for Old Pirate
Entech Pty Ltd Mining Consultants compiled a scoping study based only on open pit Indicated and Inferred resource estimates to a depth of 100 metres. The Stage 1 Old Pirate open pit is modelled to contain 832,000t averaging 11.5g/t gold and is based on both Inferred and Indicated Resource Estimations. The presence of high grade coarse free gold at Old Pirate suggests the construction of a simple Gravity Processing Plant with savings on capital expenditure and processing compared to conventional cyanide leach processing.
On-site Gravity Processing Plant. Assumes a 350,000 to 450,000 tonnes per annum gravity gold recovery plant is installed at Old Pirate and assumes a $1600 per ounce realised gold price:
• 261,000 ounces gold recovered (85% recovery) in Stage 1 open pit via gravity gold extraction methods. Stage 1 does not include cyanide leach, underground scenarios or integration of other gold bearing veins identified but not in the resource estimation.
• $27.1M capital expenditure (gravity plant, camp and associated infrastructure) paid back in the first 5 months of production.
• $257M Net Present Value (NPV) applying 0% discount rate (equivalent to cash flow over 2 years mine life).
• $228M NPV applying 9.8% discount rate.
• $511 per ounce of gold total operating cost inclusive of mining, processing, royalties and administration (cash cost ~$383 per ounce).

Priorities going forward include:
2012 Priority Discovery Stage Projects:
Twin Bonanza Gold Camp :
• Continue extensional surface sampling program at Old Pirate and extensional targets such as The Golden Hind Prospect.
• Continue extensional and infill drilling at Old Pirate.
• Continue extensional drilling at the Buccaneer Porphyry Gold Deposit.
• Drill test other prospect areas including the Corsair Prospect, the Landlubber Prospect, the Bandit Prospect and the Golden Hind Prospect.
• Conduct further detailed gravity gold recovery metallurgical tests on the Old Pirate deposit.
• Conduct metallurgical testing on the Buccaneer Porphyry Gold Deposit.
• Continue extensional surface soil geochemistry programs.
2012 Other Planned Activities:
• Complete regional airborne electromagnetic survey at the eastern Barrow Creek, Reynolds Range (Stafford Gold Zone) and Bonita regional project areas.
Kroda Gold Project / Tulsa Project:
• Analysis of historic data and geophysics for further drill testing.
Regional Projects:
• Apply regional geochemistry and mapping programs across several project areas.

 

[springhill]

High Grade Gold in First Results from the Golden Hind Discovery

ABM Resources announce the first systematic surface sampling results for gold at The Golden Hind Prospect located 800 metres south of the Company’s Old Pirate High Grade Gold deposit. Golden Hind is part of the Company's Twin Bonanza Gold Camp Project in the Northern Territory of Australia.

Highlights from the Golden Hind Prospect:
• Multiple sub-parallel veins up to 2 metres wide.
• 200 metre mineralised strike length with samples averaging 29.57g/t in longitudinal surface sampling with a high grade section of:
-60 metres strike length with samples averaging 103.23g/t gold.
• Peak assay result of 784g/t gold.
• Further surface sampling results pending.
• Drilling to commence at the Golden Hind Prospect shortly.

 

[mr. jeff]

High Grade Gold in First Results from the Golden Hind Discovery...

To strenthen these claims;

2nd October, 2012
Golden Hind Prospect Returns Spectacular Drill Intersections:
15 metres averaging 118.5g/t gold within
42 metres averaging 44g/t gold
ABM Resources NL (“ABM” or “The Company”) is pleased to announce the second round of drill results
from the Golden Hind Prospect. Golden Hind is located 800 metres south of the Old Pirate Gold Deposit
on the Company's Twin Bonanza Gold Camp Project in the Northern Territory of Australia.
Golden Hind Drill Result Highlights:

• Drill Hole GHRC100014 intersected:
• 42 metres averaging 44.02g/t gold (0.5g/t cut-off) from surface including:
• 15 metres averaging 118.5g/t gold (1.0g/t cut-off) with the main high grade vein
included in this section returning 3 metres averaging 546g/t gold.
• Panning recovers approximately 12g of gold from 15kg of material suggesting
coarse gold grade is under-called at the laboratory.

• Drill Hole GHRC100024 intersected:
• 20 metres averaging 10.59g/t gold (0.5g/t cut-off) from 13 metres depth including:
• 11 metres averaging 18.4g/t gold (1.0g/t cut-off)

• Drill Hole GHRC100021 intersected:
• 21 metres averaging 9.52g/t gold (0.5g/t cut-off) from 11 metres depth including:
• 15 metres averaging 13.2g/t gold (1.0g/t cut-off)

• Diamond Core drilling underway.

Amazing results and the news flow should continue. Their ground is proving up well and with such extensive tenement areas, they are sitting on a growing, promising resource. What are their plans though?

For now ABU has cleared the 6c level and seems to be moving strongly up. 6c over the past few years has been an important level and I have repeatedly bought the break of this level to sell at rejection, 3 times. Eventually it will have to move on from this action and with POG strength and Golden Hind now well on radar, it is possible. It is also possible that I am quite foolish.