Australian (ASX) Stock Market Forum

VAU - Vault Minerals

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noirua said:
More good news for Red5 and once again the share price drifts backwards.
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RED has been seeing some good gains in the last few days and is looking pretty bullish at the moment.

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Another recovery gold stock in play after the disasters in the past. Looks to be getting it back together with new mines and tenement drilling. Should push on slowly this year as RED attempts to get back to the last distant placing price of 10c - banking on it managing that quite shortly.
 
greggles said:
RED has been seeing some good gains in the last few days and is looking pretty bullish at the moment.
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The share price gains continue for RED. Up another 4.88% to 8.6c today.

On 19 June the company upgraded its Mineral Resource estimate for the key Oval mining area, part of the Centenary underground workings at the Darlot Gold Mine in WA. The updated Indicated and Inferred Mineral Resource for the Oval deposit comprises 391,200 tonnes grading 9.32g/t Au for 117,200 ounces of contained gold, representing a 79% increase in contained gold, over the previous Resource estimate delivered in December 2017.

The previous day RED announced that it is selling its royalty entitlement from the Galaxy Resources owned Mt Cattlin mine in Western Australia to Canadian royalty company, Lithium Royalty Corporation, for $11 million. At the end of March they had almost $17 million in cash so this will take them to around $28 million in cash and will put them in a position to self fund any short to medium term growth without having to raise capital.

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RED are still struggling to get it all together. Their first gold mine in Philippines was a disaster and they needed to borrow a great deal of cash to divert a river and rebuild the leaking dumps. Took a long time to get their mining license back - all a bit of a disaster.

Anyway, the shares were once around $2 and they sank to just 4c. Back around 8c the shares look quite promising for the forever patient.
 
I consider the investment as neutral due to borrowings, in the short term. If you want to hold up to 3 years or more they are a bullish investment for the patient investor. For a trader it is best to watch the trends and gold price and realise you may have to take losses if trading in the shares goes to sleep.
 
noirua said:
I consider the investment as neutral due to borrowings, in the short term. If you want to hold up to 3 years or more they are a bullish investment for the patient investor. For a trader it is best to watch the trends and gold price and realise you may have to take losses if trading in the shares goes to sleep.
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RED5 was once the darling of the Aussie gold sector and trading around $2.00. Disaster in the Philippines with their one and only mine led to chunks of cash being borrowed on delays, mine suspension due to collapses and a river diverted and then still not getting mining underway. Good grief!

Now picked up two promising, well quite promising, areas in Australia but mining in the Philippines is suspended once again. The placing last year was at 10c and successful but RED5 is not yet getting enough traction. At around 6.3c this is a frustrating gold share that should be doing better.
http://red5limited.com

Attempting to takeover bullseye Mining Limited with an extended offer until 2nd October.

 
Red 5 has had a good run over the past few months.
Early results from 30,000m drill program strengthen bulk mining potential at King of the Hills tenement in WA.

The results strengthen
the emerging bulk mining potential at KOTH, confirming the Company’s
exploration model for the granodiorite contact zone which is based on a large network of narrow
high-grade veins as well as broader zones of stockwork mineralisation which collectively can be bulked out into broad mineralised zones.

About time this stock started to get ahead after 8+ years of nightmares.
 
Latest drilling results at King of the Hills is moving to becoming a future mine. Gold widths are very good at over 100 metres though grades could be better. Some similar results from gold mines in Egypt, Centamin Limited for instance, had similar grades but proved to be a good mining venture.
 
Encouraging assay results bode well for bulk mining potential at Red 5’s King of the Hills mine
30 January 2019
https://smallcaps.com.au/encouragin...ining-potential-red-5-king-of-the-hills-mine/

The 30,000m drill program, undertaken along the Eastern Margin Contact Zone of the mine, returned wide zones of gold mineralisation, including an exceptional intercept of 312m grading 2.01 grams per tonne gold.
Other significant new composite intercepts within the current 1.88-million-ounce resource envelope were 313.7m at 1.24g/t gold, including 15.4m at 13.3g/t gold from 268m; and 222m at 1.28g/t gold, including 9.2m at 7.43g/t gold from 50.1m.
 
Red 5’s updated resource estimate at King of the Hills gold project underpins bulk mining options
4 December 2018
https://smallcaps.com.au/red-5-upda...ing-of-the-hills-gold-project-mining-options/

The indicated and inferred resource is an update on historical records and comprises 28.7 million tonnes grading 2.0 grams per tonne gold for an estimated 1.88 million ounces of contained gold at a 1.0g/t gold cut-off grade, which could be reduced if a large open pit is determined to be economic.

Red 5 said the zone is believed to bulk out to significant widths, creating the potential for open pit or large-scale bulk underground stoping methods.
 
Red5 are still struggling to get back to the glory days around $2.00. Low point was 4c and now at a heady 14c in line with several forecasts. Should continue to recover with new mines in play. Slow going and confident ones amongst us are looking for 20c - 25c by year end.

Left behind by the likes of Ramelius RMS that also hit 4c but rebounded to over 80c. Tough target for Red5.
 
RED is another company whose share price has capitalised on the recent rally in the gold price.

After breaking through resistance at 14c early this month RED has continued to climb to be currently trading at 20c today.

As far as I am aware RED is basically unhedged and with an AISC for the current quarter of around A$1,300 – A$1,450 per ounce the recent rally in the gold price is making their gold mining operations even more profitable.

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Any idea on the spike? Only news is Regal selling down. Perhaps it's just the gold price in AUD terms? Maybe some more good results from Darlot or Koth. Pretty high market cap for an 'explorer'.
 
kennas said:
Any idea on the spike? Only news is Regal selling down. Perhaps it's just the gold price in AUD terms? Maybe some more good results from Darlot or Koth. Pretty high market cap for an 'explorer'.
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With no news out recently except for yesterday's Change in substantial holding notice it's definitely the AUD gold price.

RED are expected to produce 27,000 - 31,000 ounces at an AISC of A$1,300 - A$1,450 per ounce in the current quarter, so as the AUD gold price continues to rally the profitability of their gold mining operations continue to improve.

Also, the Mineral Resource estimate for the King of their Hills Gold Project was recently increased to 3.11 million ounces of contained gold with 76% of the ounces now classified as 'Indicated'. See announcement dated 20 May.
 
noirua said:
Red5 are still struggling to get back to the glory days around $2.00. Low point was 4c and now at a heady 14c in line with several forecasts. Should continue to recover with new mines in play. Slow going and confident ones amongst us are looking for 20c - 25c by year end.

Left behind by the likes of Ramelius RMS that also hit 4c but rebounded to over 80c. Tough target for Red5.
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Already testing the 25c level and up 520% from the low point a few years back.
 
Red5 is now gaining further traction and closed Friday at 29c. I looked for 20c - 25c by year end and now it looks as if that target should be raised further to 40c - 50c. This is a speculative high risk sector so only invest with that firmly in mind. I have lost a lot of shirts though my wardrobe is still full.
 
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