SBS - Sub-Sahara Resources

[jman2007]

What the hell is happening with SBS atm?...down another 8.5% so far today and pushing hard to test out an all-time low around the 4c mark... Although I am personally not a big fan of this stock, this is now entering back into the "ridiculous category" in terms of MC to ounces ratio.

The resignation of the MD Mr Riekie looks to have been a bit of a body blow, and absolutely no explanation or reason given by the company!...almost as though it was just another item on the daily agenda conveniently ticked off.... hmmmm a little bit sus me thinks

jman

 

[So_Cynical]

Finished the day down more than 11%

Hard to believe with the current SP woes, that these guys have over a million ounces,
with some mineralization at surface...its a dream deposit in so many ways.

Still lots of stocks (with much bigger caps) getting hit today and over the last few weeks...on no news.

 

[jman2007]

I'm trying to make heads or tails out of SBS and why it seems so cheap on an oz au basis. Must be something to do with the Koka deposit. Has great grades, but perhaps capex/opex may make it untenable? Deposit looks to be at 50 - 200m so depth not really an issue. How's access I wonder. Looks pretty barren out there. Or, is it the country risk?

So, 1m oz au in Koka, have 69% interest but could be diluted by up to 45% by the look of it, which will leave them with roughly 300K oz as a guide, with potential for a few more ounces.

kennas,

Looks like October 08 has been targeted by SBS as the completion date for the Koka PFS. Pretty tight deadline if you ask me. At least it's some good news for shareholders to see SBS advancing on this front.

All things considered, SBS have actually done quite well in delineating 1 million oz > 6g/t, with favourable metallurgical characteristics. Probably still scope for extensing @ depth and for another few hundred m's along strike.
In the best case scenario, if the PFS returns a favourable outcome, and SBS advance into a full BFS, and manage to secure finance , we would still be at least 2-2.5 years away from production. And that's a best-case scenario.

What concerns me slightly is the surface topography over the resource, as a lot of the drilling looks to have been into the side of a hill, and the actual vertical depth of the a good portion of the mineralisation. eg ZARD108 intersected mineralisation from approx 140-170m down-hole, which when you factor in the surface topography would be a vertical depth of at least 180-210m. This is obviously more of an engineering challenge, I really don't know if it's possible to come up with an economic pit shell to mine the shallower ore, and then stope down to grab the higher grades. I'm sure it's been done successfully somewhere else though...

It looks like a dedicated hydrological search is underway, and that there may be an aquifer out to the west they can tap into.

I'm a little bit ambivalent about some of the Tanzania JV projects with Barrack, Barrick's exact motives here would be interesting to know. I am unsure if there is an expiry date on any of the JV's, raising the possibility that Barrick could just sit on the ground for a very, very long time relegating SBS to a somewhat of a backburner position.

Anyway, my

jman

 

[JTLP]

Blow the dust off this old turkey and let everybody know that:

SBS is in a trading halt pending a proposed merger

DNH but sounds interesting...

EDIT***

Found it...looks like it's going to merge with CHN - Chalice

 

[So_Cynical]

Just noticed the ann...how do u know its CHN - Chalice ?

care to share?

Ok so CHN is in a halt too

http://www.chalicegold.com/

Company Summary
Market Cap: 8,736,000
Issued Shares: 72,800,000
Cash: 10 mill (approx)

 

[gagoskt]

what was the point to sell the tanzanian Assets ?

i dont think it is a good idea this merge, they should wait till the market calm down.

cheers

 

[So_Cynical]

what was the point to sell the tanzanian Assets ?

i dont think it is a good idea this merge, they should wait till the market calm down.

cheers

SBS was just never gona be in a financial position to go forward with
Zara...its difficult to raise money with a share price under 2 cents.

Sub-Sahara Shareholders will receive 1 Chalice Share for every 10.73
Sub-Sahara shares held, and end up with approx 39% of the merged Chalice.

I would expect a capital raising soon after the merge.

 

[So_Cynical]

SBS - Sub Sahara Resources is now no more...merger with CHN - Chalice Gold Mines
complete...link to Chalice thread below.

https://www.aussiestockforums.com/forums/showthread.php?t=4163