TAM - Tanami Gold

[Murphy]

I bought in at .015, participated in the rights issue for .005.

Exited my original parcel at .018. I have subsequently taken profit twice on my rights issues, selling 20% of them at 0.018, then 30% at 0.032.

My remainder are entirely 'free'. Currently sitting on about 750% gain. Not bad!

I've only really been trading since June 08, and I really wish I could remember what prompted me to buy TAM (and SDL at .077), oh well...my record keeping has improved now!

Murphy

 

[dougit]

It will be interesting to see if the $40 plus gain in gold prive Fri night will get this stock moving again after fridays falls

 

[justiceotp]

Yes you would expect that if gold can maintain its currently level or continue to gain before Tuesday we should see some nice gains. All gold producers and explorers should benefit from the rise in gold price and reduced costs of oil/energy.

 

[paulchow2k]

I've traded it a number of times. I got out on Thursday afternoon around 4c mark. No longer looks good for me and my risk to re-enter is too high.

paul

Yes you would expect that if gold can maintain its currently level or continue to gain before Tuesday we should see some nice gains. All gold producers and explorers should benefit from the rise in gold price and reduced costs of oil/energy.

 

[drillinto]

Open Briefing - MD discusses outlook

http://www.tanami.com.au/2009-02-06_Open Briefing-MD Discusses Quarterly Report&Outlook.pdf

 

[Baggy]

Quarterly Report out and it seems to be that Tanami is still on track, albeit a little slowly. Still hold the stock and waiting for better things to come maybe next Quarter.

 

[BraceFace]

Wow, big movement today on excellent drilling results.
Good things do come to those that wait.
Check out the annoucement to the ASX today.

 

[Sean K]

Wow, big movement today on excellent drilling results.
Good things do come to those that wait.
Check out the annoucement to the ASX today.

Why were the results 'excellent'?

Visiable gold in a hole?

There's some very high grade historic hits overy very narrow widths that look uneconomical.

Please share.

 

[BraceFace]

Here's the announcement word for word. Draw your own conclusions.

In a milestone for the Company, underground diamond drilling has commenced for the first time
at the Coyote Gold Mine. The drilling is part of a 9,000 metre underground exploration program
aimed at extending existing resources, converting additional resources to reserves and testing
new targets.


The initial hole [CYUG0016] which is being drilled from the 219 level [approximately 175 metres
below the surface], has intersected visible gold in quartz veining at 17-19 metres down-hole
[Gonzales Lode], visible gold in quartz veining at 58 metres [Grunters Lode] and visible gold in
quartz veining at 96 metres [the interpreted upper zone of the Bommie Lode]. The hole will
continue and test the remainder of the target zone.


The Bommie Lode which was first discovered in August 2008 is situated approximately 80 metres
below the base of the Gonzales Lode. The only two previous drill holes into this lode returned very
high grade down-hole intercepts of 3.6m at 121.2g/t Au from 286m [including 0.4m at 1,117g/t
Au] and 8.4m at 7.6g/t Au from 283m. The lode comprises multiple parallel [‘stacked’] veins over
a true width of approximately 25 metres. This is considerably wider than the Gonzales Lode
currently being mined.


The new Bommie intercept, located 25 metres up-dip of the previous high grade intercept [0.4m at
1,117g/t Au] - see Figure 1, shows multiple occurrences of visible gold in the veining including a
nugget with approximate dimensions of 3mm x 1mm. The drill core is presently undergoing
detailed logging to be followed by sampling and assaying. The Bommie Lode remains open in all
directions.


The current underground diamond core program is part of a larger exploration program planned
to test a number of high priority targets at Coyote and on the Company’s Western Australian
Tanami tenements. The targets are all located within a 50 kilometre radius of the Coyote
treatment plant and if successful, may form the basis of future plant upgrades.
Given the drill results to-date including the latest intercepts, excellent potential exists for
additional resources at depth and along strike in this highly prospective corridor.

 

[Sean K]

Here's the announcement word for word. Draw your own conclusions.

We've all read it now, give us your ideas.

You stated 'excellent drilling results'.

On visible gold?



In what?

Come on BF, we're a caring sharing community here.

 

[BraceFace]

We've all read it now, give us your ideas.

You stated 'excellent drilling results'.

On visible gold?



In what?

Come on BF, we're a caring sharing community here.

Look mate, I'm no mining expert here, but surely visible gold in a core from this company's tenements is better than a result that shows nothing at all. That's just commonsense. They hit gold. And now the share price is up. So I guess it's not just Tanami that think that's an "excellent" outcome.
Whether or not that turns into something bigger - well your guess is as good as mine.

 

[Sean K]

Look mate, I'm no mining expert here, but surely visible gold in a core from this company's tenements is better than a result that shows nothing at all. That's just commonsense. They hit gold. And now the share price is up. So I guess it's not just Tanami that think that's an "excellent" outcome.
Whether or not that turns into something bigger - well your guess is as good as mine.

'Visable gold' could mean one speck in a 1m interval. A speck.

PRW recently went into a trading halt over results where they had intersected visible copper over 15m from 380m. It ended up being a spec of copper at 380m. Nada.

Yes, better than nothing at all.

Probably an excellent result to all those over on Hot Cocker, imo.

Could be the one in a million that actually turn into a resource.

Always tradeable, but sprouting fundamentals here requires fundamentals, and there are little.

 

[swm79]

hahahahahaha.... should i sell the house and take out a loan on these "excellent drilling results"?????????????

 

[BraceFace]

'Visable gold' could mean one speck in a 1m interval. A speck.

Always tradeable, but sprouting fundamentals here requires fundamentals, and there are little.

Thank you for taking the time to put me in my place.
I have been a member of this forum for longer than most but I usually observe from the sidelines rather than make comments.
You just reminded me why.
Condescending comments which are based purely on your opinion only and also not on fundamentals, aren't really very productive either and will only put off people from contributing. :shake:

 

[swm79]

BF the problem is, i think, people here want to see hard facts, not rumours.... especially in the mining sector... fortunes have been lost on such things.

i'm sure there was no offence intended

 

[Sean K]

Thank you for taking the time to put me in my place.
I have been a member of this forum for longer than most but I usually observe from the sidelines rather than make comments.
You just reminded me why.
Condescending comments which are based purely on your opinion only and also not on fundamentals, aren't really very productive either and will only put off people from contributing. :shake:

I am sorry you take it that way.

All I was asking for was analysis.

Of any kind.

Just some comments on what the company has issued.

FA, TA, EW, Gann ... anything.

But, nada.



I hope you can contribute in the future, you have been a member for a long time....

 

[goin4gold]

maybe a nada stock maybe not ....but the sniff of a good announcement which this company has posted.. makes for brillant trading...enjoy it while it lasts.

 

[cuttlefish]

'Visable gold' could mean one speck in a 1m interval. A speck.

PRW recently went into a trading halt over results where they had intersected visible copper over 15m from 380m. It ended up being a spec of copper at 380m. Nada.

Yes, better than nothing at all.

Probably an excellent result to all those over on Hot Cocker, imo.

Could be the one in a million that actually turn into a resource.

Always tradeable, but sprouting fundamentals here requires fundamentals, and there are little.

This post seemed a bit harsh to me too Kennas. The announcement does at least give the dimensions of one of the nuggets and given the location of the lode vs their current mining location a high grade gold intersect here does have direct significance for the company.

Also to compare TAM to PRW is a bit misleading in my view. TAM has a JORC resource, they have a 250 ktpa plant, they have an operating underground mining operation, and they are currently producing gold - this is miles apart from an explorer like PRW (which is really a joke of a company basically).

My view on this is that the results may be quite promising and it does demonstrate the potential for TAM to expand its underground resource and operations and possibly improve grades. (but see my comments about cashflow and market cap further on in this post before getting excited).

TAM needs to get grades up to justify its current market cap imo (and to make a decent profit and cashflow) and they also need to demonstrate they really do have a decent quantity and grade of underground resources to sustain a long term operation.

Its also worth having a close look at last quarters cashflow statement - they really didn't have much of a cash buffer (about $1.1 million cash + another couple of million or so of gold on hand). Their operating costs are high because of their remote location and the lowish underground grades plus quite a bit in the way of development costs as they get the mining operation going. They still had negative operating cashflows last quarter so I would not be surprised at all to see them needing to raise capital some time in the near future (and a nice drill result to get the share price up certainly helps with this and the drill was put in pretty close - 25m away - from the previous high grade drill intersect on this lode from last year).

At 6c their market cap is over $200 million - that seems high and at that capitalisation a lot of good news is already priced in and cashflow risks seem to be being ignored.

The company has a long history of stop/start with this operation and have had to continue to raise capital to keep things going - but that does not mean they can't come good - there is potentially a very big gold system at coyote but there is quite a lot of risk in buying at the moment in my opinion.

I don't hold TAM at the moment - I have held it in the past and have traded it on occasion.

 

[Donga]

Thanks Cuttlefish - good summary, had picked up that they had relatively low grades and expensive operations. Been doing well on a number of miners and wondering where to take some profits. I'm not great at selling, believe this resurgence has legs though to mid 2010, and this will be a good place to start. Still see plenty of potential with my other goldies - PRU, EKM, KGL maybe RNG.

 

[cbkitsb]

TAM has taken a hammering lately following its annoucement of the acquistion from Newmont. Any ideas why the market is so tough on them?