- Joined
- 20 February 2007
- Posts
- 197
- Reactions
- 0
I am, I'm hoping for a pullback between 415 to 405 before a nice move onward, I might even consider picking up a few more at that level if I can scrape some money together
are u guys still on this one? appears to be consolidating in the low 40's
They are listed as VREO.Cheers chops, they do look a good deal but I have never traded options and I dont have my account approved to trade them yet.
A view to Bronzewing's rebirth
Wednesday, 25 April 2007
HUNDREDS of millions of dollars have previously been spent on Bronzewing and it involved such luminaries as multi-millionaire prospector Mark Creasy, Joe Gutnick's Great Central Mines, Robert Champion de Crespigny's Normandy Mining and Newmont Mining. By Mark Mentiplay.
In 2007, gold production in the first half of the year and nickel soon after will not only mark the rebirth of the famous gold mine, but it will also be owner View Resources' first big step to becoming a significant mid-tier mining house within a few years.
Cashed up following $38.5 million in recent capital raisings ($16.5 million in debt and $22 million in equity) that will see Bronzewing funded through to production, View will sit like a processing and production spider in the middle of a web that covers up to 50 variously sized and advanced gold projects in the surrounding Yandal Greenstone Belt region.
View Resources managing director Tim Gooch told RESOURCESTOCKS the company is aiming for production from Bronzewing, 400km north of Kalgoorlie in the Eastern Goldfields, in 2007's second quarter and cranking up quickly to 120,000 ounces a year over its current four-year mine life.
Near mine and regional exploration is targeting to replace that at around 100,000oz pa.
Twenty-five kilometres southeast of Kalgoorlie, Mincor Resources has taken just eight months of the three years required to earn 70% of View Resources' Carnilya Hill nickel project, expected to be in production in the second half of this year.
As with Bronzewing, the previously producing high grade Carnilya Hill project has excellent existing infrastructure with exploration based on two declines expected to yield a JORC standard mineral resource by March, a pre-feasibility study before the end of June and production before the end of the year.
"View's strategy is to become a mid-tier mining house with a market capitalisation up from the current $63 million to $250-300 million over the next few years," Gooch said.
"A key component of that is to have at least two operating mines, producing two income streams.
"With gold and nickel both enjoying significantly high prices, and our ability to utilise the existing infrastructure at both projects to quickly restart them, the timing of bringing both these assets into production in 2007 is very fortuitous."
Bronzewing has current resources of 11.62Mt at 2 grams gold per tonne for 738,000oz and reserves of 7.8Mt at 1.9gpt for 482,000oz.
Initial production will come from Bronzewing's Central open pit, the Venus and Success pits, and then the Cockburn pit and underground, where the bulk of the resources are.
The bankable feasibility study sees free cash of $A250/oz, based on total operating costs of $A570/oz, but Gooch points out that cash costs are falling as View continually reviews and improves its operating model.
A BFS spot gold price of $A800/oz provides total free cash of about $A63 million on the current four-year mine life and current resources/reserves.
Bronzewing's current resources/reserves include 288,000t at 2.22gpt for 20,600oz at Success, 20km from Bronzewing, and 181,000t at 2.42gpt for just over 14,000oz at the nearby Venus deposit.
However, they do not include the JORC compliant 152,000oz Corboys deposit, 30km north of the Bronzewing project, on which View has signed an option agreement with Great Australian Resources.
View will spend up to $A500,000 increasing that resource by the end of 2007 when it will be able to exercise its option to purchase the tenement outright for cash, scrip and a royalty.
These recently acquired resources underpin View's strategy to develop Bronzewing by securing further resources through third party feed, acquisition and exploration.
"The driving force is supply for a very hungry [2.3Mtpa] mill. Economy of scale is a major economic factor for us, hence our commitment to pursue all possible feed options," Gooch said.
While there are no toll treatment contracts in place at this stage, "there are probably 40-50 operations in the region that could use our process, production, camp and services facilities – millions of ounces, albeit many not JORC compliant and not particularly advanced, but with ore that we can process."
One of the company's major tasks is assembling the project's 150 to 200-strong workforce.
View has already spoken to "five or six senior people" and is casting its net far and wide "for people with the right attitude". In a tight market, Gooch is confident of putting together a good team in the required time.
A major drawcard will be the 400-person Bronzewing camp, recognised as one of the best in the country and boasting a 24.9m swimming pool, indoor cricket, squash court and modern gym facilities.
On the exploration front, the company has earmarked $4 million for exploration, most of which will be spent on Bronzewing and its 1000sq.km tenements.
A structural review carried out by SRK has identified a number of near mine targets, the second stage of which is looking a little further afield at advanced targets including Corboys and Mt Joel to generate 100,000 replacement ounces a year.
"Up until now, we've been concentrating on proving up our reserves. Now we've done that and gone a long way to sorting out production and early cash flow, we've got the cash to have a real good look around," Gooch said.
Thanks for that Gar."The driving force is supply for a very hungry [2.3Mtpa] mill. Economy of scale is a major economic factor for us, hence our commitment to pursue all possible feed options," Gooch said.
While there are no toll treatment contracts in place at this stage, "there are probably 40-50 operations in the region that could use our process, production, camp and services facilities – millions of ounces, albeit many not JORC compliant and not particularly advanced, but with ore that we can process."
It is such a strategically brilliantly placed resource with infrastructure that I wonder how they were able to buy it so cheap.
On all time frames, short, mid and long, both fundamentally and technically, I don't think it could be any better.
I don't know what LH is. Was it less than what they are paying for SMM? Lol.Do you know how much PDN bought LH for?
I don't know what LH is. Was it less than what they are paying for SMM? Lol.
LOL!
LH = Langer Heinrich, PDNs mine in Namibia that recently went into production.
They bought it for some ridiculous amount like $6million back when uranium was US$10/lb and now they will make $100m+ a year from the mine.
Well, I'm holding heads since the low 30s and oppies well in the teens... and any stops set should be absolutely nowhere near where this is currently. As opposed to the fair chunk of INL holders who have had to average down to be near breakeven.Darn, I put my house on this blue sky stock, and now it's going down
Maybe I should have put my house on INL instead?
Sorry, Nizar/Chops - couldn't resist: There's more than one way to skin a cat I suppose...
Tend to agree with Chops.
I bought this when it first broke into blue skies at .35.
Actual entry was .37.
Stop at .33.
The thing iv learnt about blue sky stocks is that they do run, though perhaps not immediately, and you just have to give them time.
I remember AGM, i bought it when it first broke into blue skies 10yr highs at .40c. Entry was .425. Stop at .385, i figured the stock wouldnt close below 40c again as then it would probably trade sideways again or turn bearish. It never got near my stop. But it just stayed in the mid 40s for like after a month. And i thought, what a waste of money, youve got stocks breaking out left, right and centre, and i bought a dog. So i chopped it.
Now its $1 +
Same with MTN, nice blue sky stock, range traded for a while between $3.75 and $4.00, the impatient ones got out, luckily this time i still held.
So now, when i find a blue sky stock that has just broken out, i take a position, and as long as my initial stop isnt hit, im willing to let them ride.
Just my opinion and my way of doing things.
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?