RAU - Republic Gold

[sydneysider]

im not a holder, but from a very breif look at the ann it seems that all they have done is used a different method to analyse the rocks.

Seems a bit dodgy to me. IE - why did they need to use this method in the first place? what was wrong with the original way?

just seems as though they are trying to push the price. but i have very limited geo knowledge so dont take any notice of what i say.

Dear Prawn,

Typically you use a very aggressive solution to dissolve your target metal and then assay the solution. Unfortunately much of the tin and tungsten failed to dissolve into solution thus giving a low reading. XRF is a more precise way of assaying for tungsten. Hazelwood Resources are using this technique in their tunsten assaying as well. The lab advised RAU to re-assay and the results increased by about 1000% for both tin and tungsten. IMHO RAU may be sitting on a very large and very rich tungsten target /deposit at Whumbal West. Good luck to all longs.

 

[prawn_86]

ok thanks for that, like i said i dont know much geo stuff, but am trying to learn

thanks again.

 

[sydneysider]

More news out. Up %23 percent today. Am I the only one holding this dog?

http://www.asx.com.au/asxpdf/20070910/pdf/314g8zclbprllx.pdf.


Anyone care to add their two cents to the news?

These re-assays from Whumbal are IMHO indicating that something very major may be happening at Whumbal West. The mineralized target zone is very large and may about three times larger than the surface signiture of VML's tungsten deposit next door (i am relying on my memory here and will recheck this fun fact). In fact RAU are saying that Whumbal may be much larger still because a number of soil assaying lines ended in mineralization extending both North/South and East/West. They are now saying that the soil samples that were originally assayed for tungsten are now about ten times richer than previously reported.

The chart below is indicative of what may follow in a more balanced market

 

[Whiskers]

I reckon you're pretty right sydneysider

I only got options. I had a sale price locked in just above todays high, but with more infill and extensional assays coming in a month or so, and drilling starting pretty soon, I think I'll hold onto them for a bit until I get a better picture of how big of a resource they are talking about.

 

[AussiePaul72]

Dear Prawn,

Typically you use a very aggressive solution to dissolve your target metal and then assay the solution. Unfortunately much of the tin and tungsten failed to dissolve into solution thus giving a low reading. XRF is a more precise way of assaying for tungsten. Hazelwood Resources are using this technique in their tunsten assaying as well. The lab advised RAU to re-assay and the results increased by about 1000% for both tin and tungsten. IMHO RAU may be sitting on a very large and very rich tungsten target /deposit at Whumbal West. Good luck to all longs.

Hey Sydneysider, thanks for your posts ......very informative. I am a holder of RAU and in my opinion i agree with your comments that the news today made an already promising Tungsten / Tin resource now seem more like a potentially very large rich resource (Tungsten results upgraded by over 1000% and Tin upgrade by 500-1000%) where there is still much potential for further upgrade once the physical size of the resource is fully explored. In today's announcement, the company mentioned that infill & line extension samples for Whumbal West were submitted mid August and they expect results to be available in 4-6 weeks (mid to late Sept).
As a holder i am very pleased with the way things are moving forward and obviously the market accepted todays news extremely positively by sending the SP up 20% on a day where the overall market slipped over 1%.

 

[sydneysider]

Hey Sydneysider, thanks for your posts ......very informative. I am a holder of RAU and in my opinion i agree with your comments that the news today made an already promising Tungsten / Tin resource now seem more like a potentially very large rich resource (Tungsten results upgraded by over 1000% and Tin upgrade by 500-1000%) where there is still much potential for further upgrade once the physical size of the resource is fully explored. In today's announcement, the company mentioned that infill & line extension samples for Whumbal West were submitted mid August and they expect results to be available in 4-6 weeks (mid to late Sept).
As a holder i am very pleased with the way things are moving forward and obviously the market accepted todays news extremely positively by sending the SP up 20% on a day where the overall market slipped over 1%.

There are also more assays coming on a number of other anomalies that are located generally in the Whumbal West area and include moly, tungsten, tin and antimony. These assays have been due foe well over two weeks. Lots of drilling underway as well, especially at Mt Carbine at this moment.

The stock is holding up very well at 3.8 with few sellers at this level.

 

[gordon2007]

Sydney....Care to take a guess as to what the the share price could do if all things fell into place nice and neatly? A short, medium, and long term price?

 

[sydneysider]

Sydney....Care to take a guess as to what the the share price could do if all things fell into place nice and neatly? A short, medium, and long term price?

There are short term factors to consider (leaving aside the the developing Whumbal project and potential of the surrounds) and that is Mt Carbine. The tungsten in the general area was mined from quartz systems BUT last year VML at Watershed which is a few miles North of Mt Carbine and a few miles East of Whumbal discovered significant quantities of tungsten in the granite which really opens up the potential in the whole area. VML postulates a very substantial deep underground source for the tungsten.

We know that RAU are now drilling on a multi million tonne tailings pile at Mt Carbine and I assume that they are looking for both tungsten in both the discarded quartz and in the granite (that based on my research was completely discarded). RAU say that the tailings fluoresce with scheelite when exposed to UV light.

Another very speculative angle at Whumbal, now that the soil sampling grades there have gone thru the roof is that they might have located a major granitic / quartz "feeder" system here.

Some folk have said that the grades at Mt Carbine are too low BUT North American Tungsten (Canadian trade symbol NTC) is now mining the Cantung Mine up in the NW Territories. Where the grade is 1.17% of WO3 and they recover 77.5% to collect .9% of WO3. Indicated resources are 33 million tons. This is the identical historical recovery rate at Mt Carbine. The US geological survey pegs Mt Carbine at a potential 100 million tonnes of ore. Annualized gross profit at Cantung is A$20 million on a monthly production rate of 26,550 MTU's per month according to their SEDAR files (i have projected the most recent quarter to a year at an MTU of US$240).

NTC is currently worth A$188.6 million undiluted at C$1.55 per share. IMHO we have potential of about 300-600% increase on RAU shares on good results at Whumbal and development of production at Mt carbine announced. There is lots of upside here and explains the Chinese interest in the stock and the very tight trading in the options (where you do not need to report any position to the ASX until u exercise).

 

[AussiePaul72]

There are short term factors to consider (leaving aside the the developing Whumbal project and potential of the surrounds) and that is Mt Carbine. The tungsten in the general area was mined from quartz systems BUT last year VML at Watershed which is a few miles North of Mt Carbine and a few miles East of Whumbal discovered significant quantities of tungsten in the granite which really opens up the potential in the whole area. VML postulates a very substantial deep underground source for the tungsten.

We know that RAU are now drilling on a multi million tonne tailings pile at Mt Carbine and I assume that they are looking for both tungsten in both the discarded quartz and in the granite (that based on my research was completely discarded). RAU say that the tailings fluoresce with scheelite when exposed to UV light.

Another very speculative angle at Whumbal, now that the soil sampling grades there have gone thru the roof is that they might have located a major granitic / quartz "feeder" system here.

Some folk have said that the grades at Mt Carbine are too low BUT North American Tungsten (Canadian trade symbol NTC) is now mining the Cantung Mine up in the NW Territories. Where the grade is 1.17% of WO3 and they recover 77.5% to collect .9% of WO3. Indicated resources are 33 million tons. This is the identical historical recovery rate at Mt Carbine. The US geological survey pegs Mt Carbine at a potential 100 million tonnes of ore. Annualized gross profit at Cantung is A$20 million on a monthly production rate of 26,550 MTU's per month according to their SEDAR files (i have projected the most recent quarter to a year at an MTU of US$240).

NTC is currently worth A$188.6 million undiluted at C$1.55 per share. IMHO we have potential of about 300-600% increase on RAU shares on good results at Whumbal and development of production at Mt carbine announced. There is lots of upside here and explains the Chinese interest in the stock and the very tight trading in the options (where you do not need to report any position to the ASX until u exercise).

Thanks for your research & very informative post Sydneysider. I'm a holder of RAU and was initially attracted by the Whumbal project and future potential of it and its surrounds. I was one that wasn't that excited about the Mt Carbine work but you've put a new perspective on it and used a working example of how it is very economical elsewhere in the world.
May i ask you to expand on what you know about the Chinese interest in the stock?

 

[sydneysider]

Thanks for your research & very informative post Sydneysider. I'm a holder of RAU and was initially attracted by the Whumbal project and future potential of it and its surrounds. I was one that wasn't that excited about the Mt Carbine work but you've put a new perspective on it and used a working example of how it is very economical elsewhere in the world.
May i ask you to expand on what you know about the Chinese interest in the stock?

Recently a Chinese investor from Hong Kong and a group from Malaysia agreed to take 60 million shares @ 85% of the ruling price in the week prior to a Shareholders Meeting set down for the first week in October. We assume that these folk are associated with Refinery interests (but i may be wrong). At the time this news was announced RAU was 2.8 now it just hit 3.8. Assays have been pending from a number of anomalies around Whumbal for tungsten, tin, moly and antimony and other metals. Worth watching carefully.

 

[gordon2007]

Well it will certainly be interesting to see if it gets any play time. Someone's just bought nearly a million shares in one purchase. By the lack of posts in this thread I just don't think it's a very noticed entity though.

 

[explod]

Well it will certainly be interesting to see if it gets any play time. Someone's just bought nearly a million shares in one purchase. By the lack of posts in this thread I just don't think it's a very noticed entity though.

I recieved my first shares a few years ago as a spin off from another company which went broke. A lot of that was due to management ramping and playing investors for suckers. I am holding my few and watching, by all reports its looks like it may be OK, but caution is a good thing.

 

[porkpie324]

Me too got RAU through another company, but can't remember who, but had an unmarketable holding so bought some more. But with all chatter here I have kept them hoping for a windfall. porkpie

 

[gordon2007]

WOW...what was that all about. Some very odd price behaviours the last 10 minutes today. Few million shares in the last minutes of a friday. Sure does make one wonder.

 

[Whiskers]

WOW...what was that all about. Some very odd price behaviours the last 10 minutes today. Few million shares in the last minutes of a friday. Sure does make one wonder.

Yeah caught my attention too. About double normal daily turnover, 500,000 opts too in the last 10min and all finished on days high. Must be more news immiment!

 

[AussiePaul72]

Yeah caught my attention too. About double normal daily turnover, 500,000 opts too in the last 10min and all finished on days high. Must be more news immiment!

Wow .... what a surge by RAU!
To quote some figures, approx 9.8 of the 11 million shares traded today (or over 88%) occurred in the last half hour of trading. More than a coincidence in my opinion!
The SP opened at 3.7c and with the big run of trading toward the close rose to 4.0c, an 8.1% surge for the day.
Anyone heard any news? Seems like something big caught the attention of those in the know .... maybe all will be revealed Monday??

 

[gordon2007]

I know you can't really count on pre market sales depth, but if any of this morning holds true, could be in for a another surge like last friday's. If RAU has a really good day again, could it then be mentioned in "potential break out alerts"? I suck with charts and backing anything up, so either way it wouldn't be me posting it.

 

[gordon2007]

Something has got to be up. It's going crazy in volume and price yet no announcements or anything. I'm just wondering if it has been mentioned on another board or something. 6 million shares and up 7.5% already today.

 

[AussiePaul72]

I know you can't really count on pre market sales depth, but if any of this morning holds true, could be in for a another surge like last friday's. If RAU has a really good day again, could it then be mentioned in "potential break out alerts"? I suck with charts and backing anything up, so either way it wouldn't be me posting it.

G'day Gordon ....... won't be me posting either......lol ........but i'm on RAU and happy to be along for the ride ......wonder if news will be out today sometime?

 

[gordon2007]

I should use this chance to properly understand charts and learn to post them. Excuses Excuses Excuses...I'm a bit pre-occupied at work to give it %100 attention.