RRL - Regis Resources

[rub92me]

Suspension, so probably another capital raising. They won't be able to finance the gold project on their own, so will probably need to JV it out again...

 

[jman2007]

Went to the RIU Explorers Conf 2008 in Freo, Perth,

Have to say I was not at all convinced by the RRL presentation. The question on my lips is how the hell can they make Moolart Well economic at 0.8g/t? Yes I know Montagu are saying that the oxide component will be free-milling and that this could potentially as low as a $200/oz operation, but I just don't see it happening. If other companies are running at $600/oz and are targeting oxide-hosted deposits of more than double the grade, then how could RRL possibly run at a massive discount to this?....my opinion, they can't.

There is a reason Newmont left Moolart Well in the ground, because they knew the damn thing would be nigh impossible to make economic! So on top of the low grade issue, they need $148M to build the plant, are diluted more than a low-strength American beer, plus they've got only $1.5M left in the bank. I'd be giving this a very wide berth.

jman

Disclaimer: DNH. Do not take my opinion as financial advice. Always DYOR

 

[exgeo]

I'm quite surprised they managed to get the money in the current market. I guess somebody must have some confidence in the project - enough to put their money where their mouth is.

COMPLETION OF $19.6 MILLION PRIVATE PLACEMENT

Regis Chairman Dr Michael Folie said "Regis is pleased with the completion of this placement in the current market conditions. This capital raising is the first phase of the funding of the Duketon Gold Project, and the Company is moving rapidly to complete the engineering studies and commence development of the project".

Proceeds from the Offering will be used to fund the completion of the feasibility study for the Duketon Gold Project, acquisition of capital items for the development of the project, on-going exploration and for working capital.

 

[exgeo]

Currently capitalised at $22 m undiluted. Guess the 3.5m Oz of gold ought to be worth something. Oh, and the $19.6 m they raised a few months ago.

 

[GoHardHomie]

I wonder what is going on?

Massive volume has gone through the last couple of days and today its down 29% to 8.5 cents.

 

[exgeo]

I wonder what is going on?

Massive volume has gone through the last couple of days and today its down 29% to 8.5 cents.

Welcome back. How was your trip to Mars? There's been something called a "credit crunch" going on, with panic liquidation of stocks, especially juniors or anything that hedge funds are into. Long term, gold might we worth having (even if it's still in the ground at the moment - especially if it's cheap enough) if the financial system is as stuffed as I've been reading.

 

[GoHardHomie]

Welcome back. How was your trip to Mars? There's been something called a "credit crunch" going on, with panic liquidation of stocks, especially juniors or anything that hedge funds are into. Long term, gold might we worth having (even if it's still in the ground at the moment - especially if it's cheap enough) if the financial system is as stuffed as I've been reading.

Thanks for your particularly helpful reply.
I take it all juniors fell 29% yesterday? My internet feed here in Mars is a bit iffy with all the solar flare activity recently.

So getting back to my question - does anyone know of any RRL specific information that would explain its recent belting on huge volume?

 

[exgeo]

Juniors are being hammered, even good ones. For example, yesterday Kentor gold had sellers as low as 6 cents, and only one bidder at 1 cent for a while (that was me, that's why I noticed).

I note that D Walker one of the directors has spent $106,383 buying 774,645 shares since 25/8/2008 giving an average purchase price of 13.7c per share. Several dull but important activities have been completed towards furthering the feasibility study, such as the geotechnical report to allow pit design, minesite sterilisation drilling, initial process-water exploration drilling. Mine reserve calculations are ongoing, as is metallurgical testwork related to blending different ore types (all this from the June 2008 qtly). In earlier metallurgical testwork, the calculated head grade was 20-30% higher than the grade estimated by drilling, due to the presence of coarse gold which is difficult to estimate by drilling (need a bulk sample to really get a handle on it).

 

[exgeo]

Here's a letter I sent to Mr Clark, one of the substantial shareholders who are looking to call an EGM to replace the current board with themselves. Anyone else care to comment? I haven't received any response yet (this was post was made 24 hours after my email was sent, and after the deadline set by the Clark group for a response from the RRL board.

Dear Mr Clark,

I am also a shareholder in RRL. Contrary to your assertion that there is widespread dissatisfaction with the current board, I am pretty happy with the way things have been going (but perhaps there's some information you have of which I'm not aware).

I was impressed at the recent capital raising being got away in such difficult market conditions and am happy that things are being progressed toward mining, as shown by the completion of sterilisation and water drilling, and the trial-mining campaign. If there is something else I should know, I'd be interested to know it before casting my vote at the meeting. I imagine other shareholders would too.

Best Regards,

James Pearson

 

[wanomad1970]

Gday..I'll put my 20cents in here for what its worth.

Personally I feel that the current board has just about had its day in the sun.

Ive followed this project for a number of years now and honestly cant beleive how long its taken to get to this stage.

I'm not saying that the current board wont be able to get it into production I just dont think the shareholders are going to get the best value for their money.

Mark Clark and his other proposals for the board Nick Giorgetta and Morgan Hart have had a minimum of at least 6 projects with over 40 different deposits.
Nick is practically a pioneer in development of the CIP process and I doubt you would find a smarter Metalurgist with such an in depth knowledge of mining, metalurgy and finance anywhere.

Their contacts within the fianance sector and also amongst all service providers in the industy will give them an opportunity to develop this project quicker and cheaper than anyone else around.

My shares will count for a vote I just dont think the current board will like it.

 

[jman2007]

Went to the RIU Explorers Conf 2008 in Freo, Perth,

Have to say I was not at all convinced by the RRL presentation. The question on my lips is how the hell can they make Moolart Well economic at 0.8g/t? So on top of the low grade issue, they need $148M to build the plant.

Well it's taken a while, but it now looks like I may end up eating my own crusty leather hat. Nothing like a good corporate stoush to get the blood pumping. After I relegated this stock to the list of "also-rans", those punters who picked up a swag at 8c will be grinning from ear-to-ear... and rightly so!

Anyone aware of some updated figures for the plant construction?... my estimate of $150M is now more than a year old.

Perhaps now the Board will inject a bit of urgency into the project - I have to say to date, the whole thing has moved with glacial slowness.

jman

 

[Buckfont]

Thank heavens for the change of leadership in this company. Huge upside when the project at Duketon is about to come on line midyear. Nick Giorgetta is one highly regarded boffin in the business and a sp. of 0.10c Y/low to 0.69c close today and a climbing gold price bodes well. Have held since 06/07. Anyone else of the same mind? Footnote: what did the pirate say to the doubters? RRRRRRL be right me heartys.

`Inside info is just the stuff you already know in your heart.`

 

[Buckfont]

I find it puzzling that no one has posted on this thread since my last on 5th January. Up today 3.54% and 14% in 5 days.

With the gold price taking a back step I`m surprised at the surge and the lack of interest from posters here. I`ve always believed in this little ripper. A bit of feedback would be appreciated as to the thoughts of others who hold. Have had for years and has done me well.

 

[mr. jeff]

Buckfont if you love this stock, fill a fellow in, what is its resource base, cost of production and possible reasons why it is moving? then I'm interested. I have read about them reasonably regularly in the AFR.

Here is a chart highlighting the almost picture book run.

I can't believe everyone can't believe why no one is posting about one of 1000 stocks on the ASX! I'm glad people don't post if they have nothing to add, that would be far worse.

squirrel! sorry. in RRL's case, a great year, I do agree, and will look at a re-entry, based on POG being a little weak atm, and the good move on low volume. Promising.

Probably related to this (ongoing) ann;

Garden Well Gold Deposit – Diamond Drilling Confirms Gold at Depth
Highlights
• Diamond drilling continuing at Garden Well with 10 holes completed to test below the current depth extent of RC drilling. Results for 6 holes have been received and 4 are pending.
• Diamond drilling to date has returned results showing wide zones of mineralisation with good gold grades in the fresh rock zone including:
o 22.5 metres @ 4.23g/t gold from 290.1 to 312.6 metres
o 19.7 metres @ 2.91g/t gold from 232 to 251.7 metres
o 13.2 metres @ 2.51g/t gold from 239.8 to 253 metres
o 15.7 metres @ 2.16g/t gold from 244 to 259.7 metres

also this for the year seems to have been very well conducted;

Development
Development of the project was completed during the quarter, with the following key milestones
achieved:
• Commencement of power supply to the mine site on 28 July 2010;
• Commissioning of the crushing circuit on 5 August 2010;
• Commissioning of the gold stripping plant on 30 August 2010; and
• First gold pour on 31 August 2010.
The final capital cost of the development of the processing plant was $67 million compared with
the budget of $73 million.

Will investigate further and see whats new.

 

[mr. jeff]

I cut off the dates but they are daily candles in month partitions. Apologies.

Looks like RRL may have a run on if it can clear this level. If POG stays strong (likely at this stage) then it may remain a popular smaller to medium goldie. RRL have just announced development of Garden Well and are looking at around 180-200Oz per year. Quite promising, and looking like a favourite among the smaller players.

Good luck.

 

[Dinipants]

Surprised there's not much talk on this thread. We have a strongly trending stock that's almost doubled in sp since the last comment.

Moolart producing (with low production costs [~$500/oz])and Garden Well set to start production (200,00-250,000oz pa), recently announced upgrades to gold resources/reserves (on 25/11/2011), strong management and potential for exploration. And if gold continues upward, as seems to be expected, then that's obviously gonna be a boost.

 

[Boggo]

Surprised there's not much talk on this thread. We have a strongly trending stock that's almost doubled in sp since the last comment.

I suppose the lesson there Dinipants is to tread carefully with the stocks on here that have all the chatter and supporters unless you have the ability to know how to "hit and run".
They are usually the stocks that have had a run up, have turned down and now have have a heap of 'investors' that are in more strife than the first settlers.

There are a couple of dozen stocks such as RRL doing nicely and quite a few more over the last few months that are around the same area that RRL was at in August 2010 but you never hear about them.

 

[Dinipants]

I suppose the lesson there Dinipants is to tread carefully with the stocks on here that have all the chatter and supporters unless you have the ability to know how to "hit and run".
They are usually the stocks that have had a run up, have turned down and now have have a heap of 'investors' that are in more strife than the first settlers.

Yeah that's true, alot of good performers get ignored and alot of the discussion on ASF are on more speculative stocks. Just like MAD is doing now. Oh well, hopefully I've helped at least one person.

Thanks for the reply! I'm newish to trading so every lesson/opinion is much appreciated .

 

[Dinipants]

Oh and I forgot to mention resistance at $4.00, but that's no big mystery

 

[Boggo]

Oh and I forgot to mention resistance at $4.00, but that's no big mystery

Yes, took a while to get past $3 as well, just the standard hesitate at round numbers I suppose.

Sometimes those levels are expected, eg. RSG at 140, 1.80 and 2.00. Sometimes external retracements play a role but that is a another topic entirely.