Australian (ASX) Stock Market Forum

RDS - Redstone Resources

Hasn't been much activity on this board for a while, anyone still holding this stock? opinions? They recently released encouraging drilling results..yet no move in share price..
 
MC - $12m
SP - 9c
Shares - 132m
Options - Nil quoted
Cash - $325k

Tollu Copper Nickel Project (Redstone 100%)

Tollu Central Zone
During the Quarter, an initial Exploration Target was estimated for the Central Zone (Subzone 1) It is estimated to be between 5.8 and 6.2 million tonnes of copper mineralisation at an expected grade of between 2.6% - 2.8% Cu, for between 150,000 and 170,000 tonnes of contained copper.
The Exploration target was estimated as follows:
- Drill hole TC-80 has intercepted the same mineralised body drilled by drill holes TC-32 (at 87 metres depth), TC-15 (155m), TC-20 (161m), and TC-21 (215 m).
- All five of these drill holes have demonstrated mineralisation grades between 2.4% and 3.1% Cu. Their thicknesses of mineralisation are 6.1m, 15.6m, 10.4m, 3.5m, and 11.25m.
- The average grade of mineralisation within this body so far is 2.68%, the average thickness is 9.37 metres and the average specific gravity of the mineralised body is estimated to be 2.86.
- The mineralisation drilled in Subzone 1 is part of the main mineralised body of the Central Zone, which has mineralisation confirmed along 600 metres at surface.
- The Exploration Target for the Central Zone (Subzone 1) is estimated to be between 5.8 and 6.2 million tonnes of copper mineralisation at an expected grade of between 2.6% and 2.8% Cu for between 150,000 and 170,000 tonnes of contained copper.
- The Exploration Target at the Central Zone (Subzone 1) has been estimated using the information set out above.
-The Exploration Target at the Central Zone (Subzone 1) (based on the confirmed depth of mineralisation of 379m) is expected to increase with further drilling, given the body remains open at depth.

Tollu Eastern Zone
The Eastern Zone is a single sub-vertical hydrothermal body exposed at surface over a distance of 2500 metres. This body includes the thickest mineralisation so far detected at Tollu (see ASX announcement of 22 September 2011). There is considerable potential to identify further copper mineralisation in this Zone as less than 5% of this body has been drilled.


Tollu Project Copper Potential
The potential resources of hydrothermal copper within the whole of the Tollu Project area are much larger than the Central Zone (Subzone 1) Exploration Target, given:
1. copper mineralisation discovered at surface of Subzones 2 to 8 of the Central Zone has not been evaluated at depth;
2. the Eastern Zone also has copper mineralisation exposed at surface for at least 1,200 metres. Initial drilling of the Eastern Zone has discovered significant copper mineralisation. It is expected that further drilling will allow an exploration target to be announced for the Eastern Zone;
3. the Western Zone, which has copper mineralisation exposed at surface for 1,000 metres, has not yet been drill tested; and
4. all targets listed above are hydrothermal and do not include the primary magmatic Ni- Cu mineralisation interpreted at depth.

Tollu Project Nickel Potential
The Tollu Project also has considerable potential for the discovery of Nickel. Redstone’s geological model for the mineralisation at Tollu predicts a Voisey’s Bay style magmatic Cu-Ni- (Co) source. Several key indicators consistent with this model, namely the presence of gabbro stock and cobalt mineralisation, have been discovered at drill hole TC-74/TD-3.
Drill hole TD-3 was drilled as a diamond drill hole extension to RC drill hole TC-74. TD-3 was a deep reconnaissance hole, the goal of which was to intersect the potential gabbro host for a primary Cu-Ni-(Co) mineral deposit, which is thought to be the source of the hydrothermal copper sulphide mineralisation at Tollu.
TD-3 intersected gabbro from a depth of approximately 400m. During the Quarter the gabbro core was analysed (using a portable Niton XRF spectrometer), revealing a 150m intersection of iron-cobalt sulphide mineralisation from 400m to the end of hole (with grades up to 0.56% Co). Cobalt grades are increasing with depth over the width of the intersection.
This is very significant for a number of reasons:
- The presence of cobalt is a strong indicator of Voisey’s Bay style Ni-Cu-(Co) magmatic mineralisation, in accordance with Redstone’s model of the Tollu mineralisation; and
- Cobalt is much less mobile in a silica-rich hydrothermal setting than copper and grades of cobalt mineralisation are expected to increase closer to the primary source of mineralisation.


Blackstone Range Farmin/Joint Venture
(Redstone Earning 90%: Resource Mining Corporation Ltd (ASX: RMI) 10%)
The Blackstone Range Project is located approximately 25km east of the BHP Babel and Nebo Ni-Cu-PGE discoveries. The project area is prospective for Cu-Ni-PGE + Au. The Project contains a number of prospects including:
• Halleys.
• Last Frontier.
• Saturn.
An auger drilling programme was completed during the Quarter to provide better quality soil geochemistry data. Geological mapping of mafics was conducted to assess the significance of surface nickel and copper sulphide mineralisation (pentlandite and chalcopyrite) discovered in rock samples during exploration in the previous Quarter at the Saturn prospect.

Aneba and Autazes Potash Projects
During the Quarter, the Company entered into an agreement for the sale of its potash projects in Brazil. Under the terms of the agreement, Redstone agreed to sell a 100% interest in the Projects for $390,000. The purchaser also agreed to subscribe for 2 million fully paid ordinary shares in Redstone at $0.18 per share to raise $360,000.

Apui Phosphate Project
Negotiations are progressing with a number of parties interested in farming into and/or acquiring an interest in this project.


Corporate
The Company is actively pursuing further capital raising and funding opportunities.
The Board is in ongoing negotiations with several interested investor entities and a capital injection is planned for the forthcoming quarter.
 

Attachments

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On 25 June 2014, the Supreme Court of Western Australia dismissed the Ailakis brothers’ appeal. In the summary of the decision (see WASCA\CACV\2014WASCA0127.DOC) Chief Justice Martin stated “ Happily neither the substantive law nor the law governing the practice and procedure of the courts are so out of step with basic commercial morality as to sustain their proposition. For the reasons which follow, their appeal should be dismissed”.
Subsequently on 11 August 2014, the Ailakis brothers declared themselves bankrupt owing approximately $1.45 million out of which $1.3 million are owed to Mr J C Olivero as per the courts’ decision.
During the District Court and Supreme Court proceedings it was clearly established that the Ailakis brothers controlled at least two trust that presently hold around 15 million shares in Redstone Resources and this fact was never disclosed to the ASX or shareholders by Anthony Ailakis . It was also established and confirmed by Mr Steve Penglis, lawyer for the Ailakis brothers, that it was a private matter of Anthony and Rodney Ailakis. However in excess of $300,000 were reimbursed to Anthony Ailakis by Redstone Resources for their legal expenses. This fact was conveyed to the Chairman Mr Richard Homsany on more than one occasion. It was also requested of him to seek the repayment of this sum. It appears that the board of directors of Redstone Resources have not taken any action to recover the funds.
The action and inaction of the board of directors and company secretary have to be questioned.
I am conducting further investigations and I will be posting more details very soon.
Looking forward to the AGM.
 
Something up with Redstone Resources? The share price moved from 1.3c to a high of 2.4c this morning on above average volume before it went into PRE NR at 1.9c. Announcement came out at 12:51pm sending it into a trading halt.
The securities of Redstone Resources Limited (the “Company”) will be placed in Trading Halt Session State at the request of the Company, pending the release of an announcement by the Company. Unless ASX decides otherwise, the securities will remain in Trading Halt Session State until the earlier of the commencement of normal trading on Monday 27 November 2017 or when the announcement is released to the market.

It's been a long time between drinks for RDS. I wonder what's going on? Clearly somebody knew something this morning before the announcement was released with 10 million shares changing hands.
 
Well, the news is out.

screenshot-www.aspectfinancial.com.au-2017-11-27-10-57-57.png

Their response to the speeding ticket issued by the ASX last week was interesting:

screenshot-www.aspectfinancial.com.au-2017-11-27-10-59-38.png


So how was it that information concerning the assay results were apparently known to the market before it was announced? Hmmmmmmm...
 
No posts for three years. RDS has been very disappointing.
The weekly chart shows an up trend off very low prices. For the last two months prices have been going sideways on low volume.

The corporate narrative is interesting (aren't they all?). RDS main project is drilling for copper in some interesting ground in WA. Recently they've decided to buy a tenement that was used as a gold tailings heap. RDS is going to get what gold is left from the tailings and use any profit to fund drilling of their copper prospects. I like mgt's initiative.

It could be just a clever ploy to include the word gold in their news to attract investors or it could be a smart move. I'll let the market decide which it will be.

rds260820.PNG


ps: I've thrown it in the Sept monthly comp. We never know what can happen.
 
Oh come on, you could have waited until Sept before buying into RDS. Breaking out before the new month starts is just inconvenient. Now that you've started buying, please continue throughout the month. The target to be reached is up near 0.06.

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No posts for three years. RDS has been very disappointing.
The weekly chart shows an up trend ...
ps: I've thrown it in the Sept monthly comp. We never know what can happen.
we know exactly what will happen; in the few days between tipping and start of month, it will rocket. An otherly-structured competition would have some way to account for this well observed phenomenon.
 
I dislike having to highlight spelling mistakes but surely you meant "chump" instead of champ.

RDS not drilling fast enough for you? Price looked like going up nicely but has since drifted lower. I estimate a few weeks for the drilling and I know the samples take a few weeks to analyse. Add in the normal COVID delay and we'll see the results sometime in the future.

I've a bag full of positions that have stalled after looking likely. I'm giving RDS a little longer. Could be worse (MSB yikes!).
 
I dislike having to highlight spelling mistakes but surely you meant "chump" instead of champ.

RDS not drilling fast enough for you? Price looked like going up nicely but has since drifted lower. I estimate a few weeks for the drilling and I know the samples take a few weeks to analyse. Add in the normal COVID delay and we'll see the results sometime in the future.

I've a bag full of positions that have stalled after looking likely. I'm giving RDS a little longer. Could be worse (MSB yikes!).
Thanks @peter2
I speak no English. So grammar , spelling and syntax are common errors for me.
But my spell capability fortunately above average. So I did mean Champ. Lol
Yes msb gave me opportunity to add - right or wrong.
Regards
 
Thanks @peter2
I speak no English. So grammar , spelling and syntax are common errors for me.
But my spell capability fortunately above average. So I did mean Champ. Lol
Yes msb gave me opportunity to add - right or wrong.
Regards
Further to my previous posting, I started digging into announcements.
Obviously, this one did not catch my eyes earlier due to superficial reading.
https://www.asx.com.au/asxpdf/20200909/pdf/44mg8pl7y9xb41.pdf
This is amazing and reminds me Kaltails back in 1996 when KCGM formed a new company just to get the gold out tailing deposit. Processing cost so little. No grinding. No crushing. No screening. It then depends on the quality of tailing and how long it can sustain.
So this drilling is pretty straight forward.
So @peter2 - you could be on the money :)
 
Actually, Looks kind of interesting at first pass.
Firstly share issuance is modest for an exploration company going since 2006 and with no deceptive consolidation if my chart's complete. That inclines me to think that management is passably honest.

According to recent Appendix 2A:
522,630,016 fpo shares. No listed options
47,015,048 unlisted options (RSDOB) ex 3.5c April 30, 2021 - let's assume that's not going to happen.

If a 5:1 share consolidation was enacted that would bring share count down to a reasonable 105 million @ 0.07 per share. Bargain if they've got anything going for them.

That an ex founding executive director of Silver Lake Resources is leading the HansTails Gold project suggest that it is not a fanciful enterprise. Conceivably a lot of tailings dumped from 1986 - 2006 would contain gold of a grade that is economical today, depending partly on refractoriness I guess. Red River Resources (RVR) is wanting to try the same thing with a dump at Hillgrove.

The chart looks prospective to me.
 
* can't edit but above should be 105 million @ 0.075 per share, not 0.070, for a 5:1 consolidation with current last price of 0.015.

I believe the only thing pushing it down hard from the spike is the 0.014 recent placement washing through.

Drill results will be fascinating to see the recoverable grade. Also metallurgical results when they come. The tonnage is big and see the results of a nearby past project like this - KalTails. At low gold prices of the past you wouldn't have spent money squeezing every last gram out of a tonne - plus improved techniques now, maybe.

This is bound to be wrong but might get in the ball park?

Tonnes per cubic metre

The most conservative figure I came across is 1.6 tonnes/cubic mtr of crushed rock (non metal laden)
Multiply that by 6,300,000 cubic metres in the HanTails = 10 million tonnes tailings ore in round number.
That's about 1/6th of the tonnage recovered from KalTails.
600,000 ozs gold recovered from KalTails
That suggests 100,000ozs recoverable from HanTails if you wildly assume similar grade and recoverability.
In the same strain, assume after toll and refining margin of $500/oz = $50m pay.
Haha, halve for error = $25m cash for an $8m market cap minnow.

Screenshot_20201003-211501_Drive.jpg
 
* can't edit but above should be 105 million @ 0.075 per share, not 0.070, for a 5:1 consolidation with current last price of 0.015.

I believe the only thing pushing it down hard from the spike is the 0.014 recent placement washing through.

Drill results will be fascinating to see the recoverable grade. Also metallurgical results when they come. The tonnage is big and see the results of a nearby past project like this - KalTails. At low gold prices of the past you wouldn't have spent money squeezing every last gram out of a tonne - plus improved techniques now, maybe.

This is bound to be wrong but might get in the ball park?

Tonnes per cubic metre

The most conservative figure I came across is 1.6 tonnes/cubic mtr of crushed rock (non metal laden)
Multiply that by 6,300,000 cubic metres in the HanTails = 10 million tonnes tailings ore in round number.
That's about 1/6th of the tonnage recovered from KalTails.
600,000 ozs gold recovered from KalTails
That suggests 100,000ozs recoverable from HanTails if you wildly assume similar grade and recoverability.
In the same strain, assume after toll and refining margin of $500/oz = $50m pay.
Haha, halve for error = $25m cash for an $8m market cap minnow.

View attachment 112596
When KalTails came gold was $270 per oz. Any thing 1 gm per ton or less was reject. Today Telfer is 0.65 gm/ ton.
This is
Going to be real gold
 
Should add that I subsequently found that Hantails is a farmin and RDS will have up to 80%
They say, in so many words, that the path to production will be swift and cheap but let's note that they've just started: Drilling -> estimate tonnage, grade -> metallurgical testing for a processing pathway and to estimate recoverability -> jorc -> def feasibility. <- or something like that.
 
I've a bag full of positions that have stalled after looking likely. I'm giving RDS a little longer.
The previous jump to 0.06 was surely bot powered, (but without having seen the flow, can't confirm.)
With all this talk, terms such as; potential gold bonanza, rivers of gold, mountains of gold, massive profit, low AISC etc are all looked at by entities that make automatic bids so it is highly probable there be a massive price spike again on a good news catalyst.

If it was me talking about this one...
"Bang, bang. My baby shot me down..." Shhh, hopefully Galumay doesn't come and give :2twocents

Good luck P2 and holders, may the bots and algorithms strike with gusto.
 
Got a fill of 200,000 of these @ 0.015 for interest. That would reduce down to 40,000 @ 0.075 if hypothetically the shares were consolidated 5:1 for 105m shares quoted
 
Selection for Nov 2020 monthly comp. The spec portfolio is still holds RDS as the entry price was so good. Price spiked after entry but didn't go higher and has been drifting lower each week. Over the last few days there's been some nibbling (fishing context). What will Nov bring? My wish, +100%.

rds2810.PNG
 
Another impulse buy today - added 200,000 RDS @ 1.2c
I was just looking around for something 'cheap' to buy out of boredom. Hadn't expected the bid to be hit within 2 hours, trading was at a snail's pace and there were a lot ahead of me in the bid queue @ 1.2c, but also a build up of sellers @ 1.3c. Redstone raised $750k @ 1.4c in late July through an over subscribed private placement - where are the enthusiasts today? Got buyer's remorse now, lol. Where are those drill assays from the HanTails campaign? Hope disappointing info hasn't leaked.
I have bought a precarious chart again, like my buy of KWR on Monday.

Daily
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