ZDX - Zedex Minerals
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ZDX - Trading Summary - 28 February 2007
Today: 3 trades; vol: 200 000; High: 0.18 & Low: 0.18
This week: 14 trades; vol: 1 160 000; High: 0.19 & Low: 0.18
This month: 65 trades; vol: 4 975 000; High: 0.19 & Low: 0.17
Rolling year: 513 trades; vol: 34 678 245; High: 0.285 & Low: 0.13
Today: 3 trades; vol: 200 000; High: 0.18 & Low: 0.18
This week: 14 trades; vol: 1 160 000; High: 0.19 & Low: 0.18
This month: 65 trades; vol: 4 975 000; High: 0.19 & Low: 0.17
Rolling year: 513 trades; vol: 34 678 245; High: 0.285 & Low: 0.13
Zedex (ZDX) has 27M shares of Olympus Minerals (OYM is listed in Toronto)
Visit the link below for an overview of Olympus Minerals projects
http://www.zedex.com.au/olympus.htm
Visit the link below for an overview of Olympus Minerals projects
http://www.zedex.com.au/olympus.htm
ZDX(listed Sydney) now holds about 31 million shares of OYM(listed Toronto, last price 0.86 CAD = 0.94 AUD)
What is the value of this ZDX holding ?
31,000,000 x 0.94 AUD = 29,140,000 AUD
And the value per ZDX share ?
29,140,000 AUD : 149,000,000 ZDX shares = 0.19 AUD
Today's ZDX closing price = 0.31 AUD
Bottom line: ZDX is undervalued
0.31 cents at present > 0.19 cents of it holding in OYM
Could you please tell me why ZDX is undervalued? Thank you very much.
Thank you, ta2693
The value of ZDX holding in OYM was estimated
On top of that, one has to add the value of all ZDX mineral projects in the Asia Pacific region. In addition Zedex holds an entitlement to a 2% gross production royalty in respect of a share of gold production at the Bong Mieu(OYM) gold project in Vietnam
For more detailed information on the mineral projects please visit:
http://www.zedex.com.au/projects_summary.htm
To say the least of it, ZDX is undervalued
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Should hopefully be getting some drilling results soon for this puppy for their Bau Gold Project in Malaysia.
The company secretary told me that he would expect results to be coming out mid-late Jun. Couldn't help thinking that was rather soon seeing that they commenced drilling like mid-May but hey.... a quick game is a good game and I'm just a baby that smokes way too many cigarettes.
The Bau Gold project looks pretty interesting currently comprising two deposits with mining licenses which have JORC estimates/upgrades due with 3other areas been prioritised for drilling which have quite encouraging surface channelling results.
i.e
Zone A:
Peak values include 2.20m@123g/t Au and 58.90g/t Ag, 1.60m @ 12.00 g/t and 104.00 g/t Ag.
Have attached announcement which gives a brief outline of the project and info. of other two zones currenlty being drilled. They reckon that each zone has the potential to hold multi-million Oz deposits.
Market Cap is currently @ $50m.
ZDX holding in Olympus (TSX) ~ $30m AU
I currently hold ZDXO.
Cheers
The company secretary told me that he would expect results to be coming out mid-late Jun. Couldn't help thinking that was rather soon seeing that they commenced drilling like mid-May but hey.... a quick game is a good game and I'm just a baby that smokes way too many cigarettes.
The Bau Gold project looks pretty interesting currently comprising two deposits with mining licenses which have JORC estimates/upgrades due with 3other areas been prioritised for drilling which have quite encouraging surface channelling results.
i.e
Zone A:
Peak values include 2.20m@123g/t Au and 58.90g/t Ag, 1.60m @ 12.00 g/t and 104.00 g/t Ag.
Have attached announcement which gives a brief outline of the project and info. of other two zones currenlty being drilled. They reckon that each zone has the potential to hold multi-million Oz deposits.
Market Cap is currently @ $50m.
ZDX holding in Olympus (TSX) ~ $30m AU
I currently hold ZDXO.
Cheers
Porper
Ralph Nelson Elliott
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$2000 worth of options traded on ZDX, not much more in the heads.
If you own or are thinking of buying in just bare in mind you are quite possibly getting into something you will never be able to offload.
High risk, high reward.
A total gamble.
This recent report on Zedex Minerals and Olympus Pacific Minerals is a must read
http://www.321gold.com/editorials/moriarty/moriarty071607.html
http://www.321gold.com/editorials/moriarty/moriarty071607.html
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Here's a little research:
ZDX
Shares: 191,664,117
Market Cap. at current SP (17c): $33m
Total Options: 95,111,493
Fully Diluted Market Cap: $49m
Cash: $391,000K (scary I know, but most recent report shows $1.8m realised in Jan 2008 from exercised options - however, can't seem to find it in cashflow report)
Other Investments (source of cash):
31,396,849 shares (13.5%) in Olympus Pacific Minerals (OYM) listed on TSX
so at current SP 0.33c = $10m CA
so using a X rate of $1.05 I get $10.5m
So for Zedex projects you are paying $33m - $10.5m = $22.5m.
ZDX also has an entitlement to a 2% gross production royalty in respect of Olympus' share of gold production at the Bong Mieu gold project in Vietnam
MANAGEMENT
The boys from Summit Resources - successful Uranium story.
ZDX PROJECTS
Bau Gold Project, Malaysia 50.05% (ZDX Operator)
Recently updated JORC using proir drilling data to 801,000 Oz comprising
Jugan deposit: 7.724MT @ 1.68 g/t = 417,000 Oz Au
Pejiru Deposit: 4.81MT @ 2.22 g/t = 338,000 Oz Au
and
Pejiru Deposit: 846,000 MT @ 1.69 g/t = 46,000 Oz Gold
NOW, I know grades aren't nothing to excited about BUT grade and size should hopefully be upgraded with further drilling according to Directors and there is another JORC update for Jugan due in May with also a new JORC estimate for the Seringgok deposit. Now BAU gold project covers a large area of 828km^2 with a number of areas (9 in total) that have been mined back when it was running intermittently in 1854. In particular, 4 areas have been identified by directors that they say potentially hold multi-million dollar resources. Drilling results to date have been positive with results from Say Seng and Bekajeng with reasonable grades and depths. Furthermore, the project is very proximate to the BAU township and reasonably proximate to Kuching City (40km). So IMHO I think potential upside for this project is considerably large given the sheer size of the project and current stock price and calcs made above.
Tien Thuan Polymetallic Project, Vietnam - 75% ZDX
Exploration in progress with mapping, soil and geochemical surveys etc in order to delinate targets for 5,000m drilling planned for 3rd Quarter 2008
Enmore Gold Project, NSW - ZDX (100% + 80% in two other licenses)
Grass roots stuff. Soil sampling etc. Not a lot of info yet.
I'll let y'all do your own research in Olympus Minerals http://www.olympuspacific.com/
You'll see that there is some pretty massive upside potential with this one too but way more developed than ZDX( i.e a pre-feasibility on the way for the above mentioned Bong Mieu Project).
Peace
G
ZDX
Shares: 191,664,117
Market Cap. at current SP (17c): $33m
Total Options: 95,111,493
Fully Diluted Market Cap: $49m
Cash: $391,000K (scary I know, but most recent report shows $1.8m realised in Jan 2008 from exercised options - however, can't seem to find it in cashflow report)
Other Investments (source of cash):
31,396,849 shares (13.5%) in Olympus Pacific Minerals (OYM) listed on TSX
so at current SP 0.33c = $10m CA
so using a X rate of $1.05 I get $10.5m
So for Zedex projects you are paying $33m - $10.5m = $22.5m.
ZDX also has an entitlement to a 2% gross production royalty in respect of Olympus' share of gold production at the Bong Mieu gold project in Vietnam
MANAGEMENT
The boys from Summit Resources - successful Uranium story.
ZDX PROJECTS
Bau Gold Project, Malaysia 50.05% (ZDX Operator)
Recently updated JORC using proir drilling data to 801,000 Oz comprising
Jugan deposit: 7.724MT @ 1.68 g/t = 417,000 Oz Au
Pejiru Deposit: 4.81MT @ 2.22 g/t = 338,000 Oz Au
and
Pejiru Deposit: 846,000 MT @ 1.69 g/t = 46,000 Oz Gold
NOW, I know grades aren't nothing to excited about BUT grade and size should hopefully be upgraded with further drilling according to Directors and there is another JORC update for Jugan due in May with also a new JORC estimate for the Seringgok deposit. Now BAU gold project covers a large area of 828km^2 with a number of areas (9 in total) that have been mined back when it was running intermittently in 1854. In particular, 4 areas have been identified by directors that they say potentially hold multi-million dollar resources. Drilling results to date have been positive with results from Say Seng and Bekajeng with reasonable grades and depths. Furthermore, the project is very proximate to the BAU township and reasonably proximate to Kuching City (40km). So IMHO I think potential upside for this project is considerably large given the sheer size of the project and current stock price and calcs made above.
Tien Thuan Polymetallic Project, Vietnam - 75% ZDX
- Lies 50km west of port city Qoy Nhon.
- Has been subject to extensive Artisian mining but curtailed by local authorities.
- Rock chip sampling received ranging up to 30.50 g/t Au, 100 g/t Ag, 1.33% Cu, 11.10% Pb, 7.23% Zn, 0.14% Mo
- 12km long structural corridor identified with quartz veins up to 20m with and 2km long
Exploration in progress with mapping, soil and geochemical surveys etc in order to delinate targets for 5,000m drilling planned for 3rd Quarter 2008
Enmore Gold Project, NSW - ZDX (100% + 80% in two other licenses)
Grass roots stuff. Soil sampling etc. Not a lot of info yet.
I'll let y'all do your own research in Olympus Minerals http://www.olympuspacific.com/
You'll see that there is some pretty massive upside potential with this one too but way more developed than ZDX( i.e a pre-feasibility on the way for the above mentioned Bong Mieu Project).
Peace
G
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Sorry, should read as multi-million Oz resources
Might post some research later on about Olympus.
Cheers
G
June 03, 2008
Olympus Pacific Has Several Options Ahead, But A Merger With Zedex Would Crown Everything
By Charles Wyatt
Source => www.minesite.com
David Seton the Kiwi boss of Canadian listed Olympus Pacific Minerals is very happy to be operating in Vietnam. And who would not be? It may still be a one-party communist state, but it is one of south-east Asia's fastest-growing economies and has set its sights on becoming a developed nation by 2020. It is difficult to know when a country qualifies as developed and Vietnam has a remarkable history, but things are definitely moving in the right direction, pushed by a young middle class generation which has grown up since war devastated the country. When north and south Vietnam became unified in 1976 this followed more than three decades of war against Japan, France and the US. It is amusing to note that after an experience like that the Vietnamese categorise the US as the most ineffective troops they fought.
Vietnam joined the World Trade Organisation in December 2007, but there is still a vast big gap in wealth between town and country as in China. No longer wedded to orthodox Communist philosophy it has been reinventing itself as a market economy. Geography, once a curse, is now a distinct blessing, given its location in the dynamic south east Asia region. Vietnam’s leaders appear to have taken the decision to turn the country into an investor friendly environment. Restrictions on foreign investment will be eased further as the government attempts to encourage foreign investment in listed firms. The fact that there is now a unified legal system in place for both foreign and domestic companies, goes a long way toward achieving government ambitions. This quick resume may help to explain David’s enthusiasm for the country and sweep away any lingering fears by investors. His only criticism seems to focus on the bureaucracy which is free of corruption, but still rather ponderous.
Olympus Pacific has two projects in Vietnam about 60 kms apart – Bong Mieu and Phuoc Son. Bong Mieu is already in production in a modest way with a pilot plant which should produce over 20,000 ounces of gold in the current 12 months after a disappointing start to the year due to weather. When Minews spoke to David he had just visited the mine and could confirm that underground mining had commenced and that the grade was between two and three times as high as the ore from the original open pit which was around 3 g/t. Bong Mieu was mined by the French from 1890 to 1941 when the Japanese entered the country. It covers an area of 30 sq kms and contains three deposits, Bong Mieu Central which is the open pit, Bong Mieu East, a potentially open-pittable deposit and Bong Mieu underground mine which has been redeveloped and refurbished by Olympus Pacific. The ore from this mine is currently being stockpiled and when output reaches an agreed level it will take over as feed to the pilot plant.
This plant, according to James Hamilton, treats the sulphide ore from underground more efficiently than the oxide ore from the open pit so throughput will be expanded steadily. David Seton reckons that it should be possible to increase production by around 10,000 ozs year on year without a major capital spend. Mention of money brings us to the interesting fact that Olympus Pacific has around C$20 million in the kitty and is only capitalised at C$50 million. This has to reflect North American sentiment about Vietnam in these difficult times rather then a realistic assessment of a company with one mine in production and another on the way. If Bong Mieu produces 20,000 ozs of gold in the current 12 months the gross revenue will be US$18 million so investors must ask themselves if such a project is worth only US$30 million, bearing in mind that the two mines have a combined resource of 1.48 million ozs gold and the Phuoc Son project could also be in production by 2010.
A positive feasibility study was carried out on Phuoc Son last year. It is a high grade property covering an area of 70 sq kms within which more than 30 gold prospects have been identified, many associated with artisan mining. Early this year Olympus Pacific announced an upgrade in the resource which doubled it to 637,000 ozs gold. Only 211,280 of these resource ounces, however, were in the measured and indicated categories and only 66,090 ozs were actually measured, but the average grade was 10.95 g/t. The reason is clear enough, the ore is in veins which are poddy which means that the high grade is not consistent and the resource is difficult to measure. Having said that, the high grade is certainly high grade as exemplified in a recent hole outside the evaluated area where there was an intersection of 0.6 metre at 28.8 g/t gold. Unfortunately bankers like to see reserves sufficient for a mine life of at least 5-7 years as Norseman Gold has found in Australia with a similar project. David Seton may therefore have a job on his hands when he tries to raise development capital as the bankers will try to hedge the project to bits.
The trump card that Olympus Pacific holds is its plant at Bong Mieu which can be upgraded with cash flow and funds in hand so the bankers do not hold the whip hand. One of the reasons for David Seton’s current visit to the mines is to gather information sufficient to debate whether it would make economic sense to truck the ore to Bong Mieu and we may hear more on this before long. In the meantime there is another fact which should never be ignored when discussing the company. Zedex Minerals, an Australian listed company run by the Seton family, considered making a bid for Olympus Pacific last year but was frustrated by the negative reaction from shareholder Dragon Capital.
Now Dragon’s attitude seems to have changed as it can see the sense of a combination which would be a power in gold mining in south east Asia as Zedex owns a controlling interest in the Bau gold project in Malaysia and a
majority interest in the Tien Thuan gold project in Vietnam. It is also a 13.51 per cent shareholder in Olympus Pacific and has a 2 per cent gross production royalty in respect of Olympus' share of gold production at Bong Mieu. Agreed it also has some assets in New South Wales, but that is no reason why this company should be worth nearly twice the market capitalisation of Olympus Pacific.
The situation becomes even more odd when the 60 per cent interest being earned by Olympus Pacific in the Capcapo gold property in the Northern Philippines is added. This property lies in the northern part of the Baguio Mankayan gold district which has recorded gold production and existing resources in excess of 60 million ozs so it can hardly be regarded as worthless. The crucial difference between the ratings of the two companies must therefore lie in the fact that Olympus Pacific is listed in Toronto and Zedex in Australia. Aussie investors understand the huge growth of south east Asia and the potential of countries like Vietnam, Philippines and Malaysia as it is from them and China that it is earning its current fortune. Merge the two companies and keep the ASX listing and shareholders in Olympus Pacific would be in for a very early Christmas in which investors from London might participate.
Olympus Pacific Has Several Options Ahead, But A Merger With Zedex Would Crown Everything
By Charles Wyatt
Source => www.minesite.com
David Seton the Kiwi boss of Canadian listed Olympus Pacific Minerals is very happy to be operating in Vietnam. And who would not be? It may still be a one-party communist state, but it is one of south-east Asia's fastest-growing economies and has set its sights on becoming a developed nation by 2020. It is difficult to know when a country qualifies as developed and Vietnam has a remarkable history, but things are definitely moving in the right direction, pushed by a young middle class generation which has grown up since war devastated the country. When north and south Vietnam became unified in 1976 this followed more than three decades of war against Japan, France and the US. It is amusing to note that after an experience like that the Vietnamese categorise the US as the most ineffective troops they fought.
Vietnam joined the World Trade Organisation in December 2007, but there is still a vast big gap in wealth between town and country as in China. No longer wedded to orthodox Communist philosophy it has been reinventing itself as a market economy. Geography, once a curse, is now a distinct blessing, given its location in the dynamic south east Asia region. Vietnam’s leaders appear to have taken the decision to turn the country into an investor friendly environment. Restrictions on foreign investment will be eased further as the government attempts to encourage foreign investment in listed firms. The fact that there is now a unified legal system in place for both foreign and domestic companies, goes a long way toward achieving government ambitions. This quick resume may help to explain David’s enthusiasm for the country and sweep away any lingering fears by investors. His only criticism seems to focus on the bureaucracy which is free of corruption, but still rather ponderous.
Olympus Pacific has two projects in Vietnam about 60 kms apart – Bong Mieu and Phuoc Son. Bong Mieu is already in production in a modest way with a pilot plant which should produce over 20,000 ounces of gold in the current 12 months after a disappointing start to the year due to weather. When Minews spoke to David he had just visited the mine and could confirm that underground mining had commenced and that the grade was between two and three times as high as the ore from the original open pit which was around 3 g/t. Bong Mieu was mined by the French from 1890 to 1941 when the Japanese entered the country. It covers an area of 30 sq kms and contains three deposits, Bong Mieu Central which is the open pit, Bong Mieu East, a potentially open-pittable deposit and Bong Mieu underground mine which has been redeveloped and refurbished by Olympus Pacific. The ore from this mine is currently being stockpiled and when output reaches an agreed level it will take over as feed to the pilot plant.
This plant, according to James Hamilton, treats the sulphide ore from underground more efficiently than the oxide ore from the open pit so throughput will be expanded steadily. David Seton reckons that it should be possible to increase production by around 10,000 ozs year on year without a major capital spend. Mention of money brings us to the interesting fact that Olympus Pacific has around C$20 million in the kitty and is only capitalised at C$50 million. This has to reflect North American sentiment about Vietnam in these difficult times rather then a realistic assessment of a company with one mine in production and another on the way. If Bong Mieu produces 20,000 ozs of gold in the current 12 months the gross revenue will be US$18 million so investors must ask themselves if such a project is worth only US$30 million, bearing in mind that the two mines have a combined resource of 1.48 million ozs gold and the Phuoc Son project could also be in production by 2010.
A positive feasibility study was carried out on Phuoc Son last year. It is a high grade property covering an area of 70 sq kms within which more than 30 gold prospects have been identified, many associated with artisan mining. Early this year Olympus Pacific announced an upgrade in the resource which doubled it to 637,000 ozs gold. Only 211,280 of these resource ounces, however, were in the measured and indicated categories and only 66,090 ozs were actually measured, but the average grade was 10.95 g/t. The reason is clear enough, the ore is in veins which are poddy which means that the high grade is not consistent and the resource is difficult to measure. Having said that, the high grade is certainly high grade as exemplified in a recent hole outside the evaluated area where there was an intersection of 0.6 metre at 28.8 g/t gold. Unfortunately bankers like to see reserves sufficient for a mine life of at least 5-7 years as Norseman Gold has found in Australia with a similar project. David Seton may therefore have a job on his hands when he tries to raise development capital as the bankers will try to hedge the project to bits.
The trump card that Olympus Pacific holds is its plant at Bong Mieu which can be upgraded with cash flow and funds in hand so the bankers do not hold the whip hand. One of the reasons for David Seton’s current visit to the mines is to gather information sufficient to debate whether it would make economic sense to truck the ore to Bong Mieu and we may hear more on this before long. In the meantime there is another fact which should never be ignored when discussing the company. Zedex Minerals, an Australian listed company run by the Seton family, considered making a bid for Olympus Pacific last year but was frustrated by the negative reaction from shareholder Dragon Capital.
Now Dragon’s attitude seems to have changed as it can see the sense of a combination which would be a power in gold mining in south east Asia as Zedex owns a controlling interest in the Bau gold project in Malaysia and a
majority interest in the Tien Thuan gold project in Vietnam. It is also a 13.51 per cent shareholder in Olympus Pacific and has a 2 per cent gross production royalty in respect of Olympus' share of gold production at Bong Mieu. Agreed it also has some assets in New South Wales, but that is no reason why this company should be worth nearly twice the market capitalisation of Olympus Pacific.
The situation becomes even more odd when the 60 per cent interest being earned by Olympus Pacific in the Capcapo gold property in the Northern Philippines is added. This property lies in the northern part of the Baguio Mankayan gold district which has recorded gold production and existing resources in excess of 60 million ozs so it can hardly be regarded as worthless. The crucial difference between the ratings of the two companies must therefore lie in the fact that Olympus Pacific is listed in Toronto and Zedex in Australia. Aussie investors understand the huge growth of south east Asia and the potential of countries like Vietnam, Philippines and Malaysia as it is from them and China that it is earning its current fortune. Merge the two companies and keep the ASX listing and shareholders in Olympus Pacific would be in for a very early Christmas in which investors from London might participate.
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I'm pretty sure this isn't correct. OYM (TSX) has about 232M shares on issue at 23c (about $50m) where ZDX has a market cap of about $30m ($50m market cap fully diluted). Please correct me if I'm wrong.
Another announcement today with JORC upgrade to a total of 1.2M Oz for their Bau Gold Project. Directors also reckon they can further upgrade resource and grade with more drilling and processing of old data. Also further samples due out late June to delinate further drilling.
Peace
G
Zedex seems to have good assets yet it seems to be taking along time for the market to realize it.
See below for latest release to ASX:
Zedex Minerals Limited (Zedex) is pleased to circulate the attached news release from Olympus Pacific Minerals Inc (Olympus), a company producing gold in Vietnam and in which Zedex has an approximate 31% shareholding. This upgrade of Gold Resources at Bong Mieu East, has increased total Olympus Resources in Vietnam to 1.61 million ounces. In addition, a ecalculation of its Phuoc Son Resource is scheduled for mid-year.
In combination with it’s own project at Bau (Zedex interest 50.05%) in Sarawak, Malaysia which has a JORC status gold resource of 1.612 million ounces (refer to release dated 27 November 2008), Zedex now has an interest in properties with a total resource in excess of 3 million ounces of gold. Zedex continues to hold a 2% gross production royalty over the sales from the Bong Mieu Mine.
See below for latest release to ASX:
Zedex Minerals Limited (Zedex) is pleased to circulate the attached news release from Olympus Pacific Minerals Inc (Olympus), a company producing gold in Vietnam and in which Zedex has an approximate 31% shareholding. This upgrade of Gold Resources at Bong Mieu East, has increased total Olympus Resources in Vietnam to 1.61 million ounces. In addition, a ecalculation of its Phuoc Son Resource is scheduled for mid-year.
In combination with it’s own project at Bau (Zedex interest 50.05%) in Sarawak, Malaysia which has a JORC status gold resource of 1.612 million ounces (refer to release dated 27 November 2008), Zedex now has an interest in properties with a total resource in excess of 3 million ounces of gold. Zedex continues to hold a 2% gross production royalty over the sales from the Bong Mieu Mine.
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Hi you guys watching or holding ZDX. There may be some action before too long. Wouldnt be surprised if the long awaited tie up might happen. Or even Dragon investment group in Vietnam who hold a lot of both companies,
ZDX AND Olympus,might decide to step in and take out both Companies.
Annual Accounts due to be published sometime this month.
I own some.
ZDX AND Olympus,
might decide to step in and take out both Companies.Annual Accounts due to be published sometime this month.
I own some.
Hi you guys watching or holding ZDX. There may be some action before too long. Wouldnt be surprised if the long awaited tie up might happen. Or even Dragon investment group in Vietnam who hold a lot of both companies,
ZDX AND Olympus,
Annual Accounts due to be published sometime this month.
I own some.
Simon,
Do you have any solid facts to any of your statements above? Is there any reason we could see some action soon? Or are you just hoping?
I'm seeing alot of mights or coulds in there but no real info.
You are obviously new here but these sort of posts are not acceptable on this site and you will need to provide a bit more info in the future or your post will be removed.
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Does anyone on here follow Zedex Minerals , please ?
I am new on here and am trying to establish where any Zedex chat is located. ?
I am new on here and am trying to establish where any Zedex chat is located. ?
November 12, 2009
Olympus Pacific Merges With Zedex To Create A Significant New Gold Producer In South East Asia
By Charles Wyatt
www.minesite.com/cnd.html
Rumours of an impending marriage between Canadian-listed Olympus Pacific Minerals and ASX-listed Zedex Minerals have surfaced from time to time over the past year or more, but this time round the two companies are actually going to make it to the altar. All the major players are in favour, and there is no fire breathing reptile blocking the path and keeping them apart. Getting together makes a lot of sense and, in the end, logic will out. For a start John Seton, brother of the executive chairman of Olympus Pacific, David Seton, is chairman of Zedex, as well as also being on the board of Olympus. Second, Zedex already has a significant shareholding in Olympus Pacific. Third, the Seton family have a swag of shares in both companies and want to have it under one roof for obvious reasons. Fourth, the business combination of the two companies, which operate in the same area of the world, adds up to a very strong junior gold production company.
Cutting to the chase, by the end of 2010 Olympus Pacific will no longer be just a producer with 1.5 million ounces of resources focused solely on Vietnam. By then it will have annualised production running at 80,000 ounces per year, backed up by resources amounting to over three million ounces and rising. What is very important, as David Seton points out, is that the enlarged Olympus will have diversification across four projects in Vietnam and Malaysia, and a pathway through to a production rate of 300,000 ounces by 2014. Some North American investors may still jib at Vietnam, after all US troops did get a bit of a hammering out there, and it still has a communist government, but Vietnam’s economy is now shaping up as one of the power houses of the Far East, and its bureaucracy, though slow, is uncorrupt. Malaysia, of course, is a country favoured by Western investors as its government is closely modelled after the Westminster parliamentary system, as a legacy of British colonial rule which finished with independence in 1957.
The deal between the two companies, though outwardly complicated because Zedex is incorporated in New Zealand, simply involves a paper swap so that every shareholder in Zedex gets one new Olympus share for every 2.4 Zedex shares held. It is capital efficient, too, as Zedex’s shares in Olympus are being distributed to its shareholders too, so dilution is limited. The result is that the Zedex shareholders will end up with 39.4 per cent of the enlarged company, compared with the indirect 26.3 per cent they now hold through the Zedex stake in Olympus. The Seton brothers stepped aside from the actual negotiation over terms. One of those put into bat on their behalf was Alan Eggers who is an independent director of Zedex, and who will be speaking at our Christmas Forum about his new uranium company, Manhattan Resources. When everything is wrapped up by early next year, the shares of the new Olympus will be quoted on Toronto as well as the ASX, and demand and liquidity should improve as a result.
Readers of Minesite already have a fair knowledge of Olympus, but a description of Zedex is probably in order. It has a 50.05 per cent interest in the Bau joint venture in Sarawak in eastern Malaysia, which it also operates. Its partner is a local Malaysian mining company with the exotic name of Gladioli Enterprises. The joint venture tenements cover 828 square kilometres of the most highly prospective ground of the Bau goldfields. These goldfields have operated since 1864 and are recorded as having produced 1.5 million ounces of gold. Regional analogies and exploration results to date indicate the potential for significantly greater undiscovered targets.
All of which means that Avocet Mining may still be smarting, as Zedex acquired its interest there from virtually under its nose. Cameco is said to have invested around C$20 million there too, and across the border into Kalimantan in the mid 1990s, but it must have lost interest after the Bre-X scandal. Anyway, the current JORC status resource at Bau amounts to 1.612 million ounces of gold, plus identified geological targets in deposit extensions and adjacent zones amounting to a further 3.3 to 4.5 million ounces. Feasibility work will start at the Bau project next year.
Zedex also has a 75 per cent interest in the Tien Thuan (Tiger Mountain) gold project in Vietnam, 50 kilometres west of the port of Quy Nhon. The area was extensively mapped and sampled by the Geological Survey of Vietnam in the 1990s, and that work is being validated and extended through detailed geological, geochemical and geophysical surveys. The real excitement, however, will come when drilling takes place at depth below the outcropping shoots. This project consolidates the position of Olympus Pacific as a first mover in the country, as it commissioned the first two gold mines – Bong Mieu and Phuoc Son – built there since the 1940s. Bong Mieu was first into production and its throughput is now being supplemented by high grade ore transported from Phuoc Son. The combination should ensure production of 40,000 ounces gold in 2010, but by that time a new and more sophisticated plant will have been constructed at Phuoc Son which should double production by 2011.
The path to combined production in Vietnam and Malaysia of 300,000 ounces per year in 2014 is an interesting one. In 2012, the first phase of Bau should come on stream at a rate of 30,000 ounces per year. Combined with improvements at Bong Mieu, that should take the total to 145,000 ounces. The following year production from Bau is expected to double and the contributions from both Bong Mieu and Phuoc Son will also improve, to give a target of 245,000 ounces. But the big push will come in 2014 when Bau and Phuoc Son are level pegging at 100,000 ounces, and Bong Mieu tops them with 105,000 ounces.
A lot of water has to pass under the bridge before this is achieved, but it is worth noting that nothing is expected from Tien Thuan by then, and the ongoing acquisition of a 60 per cent interest in the Capcapo gold property in northern Philippines, which is being negotiated, gets barely a mention. Look at a map, however, and it is easy to see that the projects in three countries are very close in reality, forming a triangle enclosing the South China Sea. The only project the enlarged company will hold outside this triangle is the Enmore goldfield in New South Wales, where seven historic mine prospects have been partially investigated.
So Tien Thuan and Enmore add weight to the portfolio of the new Olympus. Other acquisitions can be expected, though these will not be allowed to deter management from the central thrust of production. Nor should it be overlooked that Zedex has a two per cent gross over-riding royalty on production from Bong Mieu, and this will no longer apply in the new set-up. As far as investors are concerned, though, they can now be sure, even though the last “t” will only be crossed in January with the ASX listing, that they can trade in what is effectively the new Olympus on the Toronto Exchange (OYM), and know they are involved with a significant gold producer in South East Asia. And where better to be with the geopolitical axis of the world moving steadily in that direction?
Olympus Pacific Merges With Zedex To Create A Significant New Gold Producer In South East Asia
By Charles Wyatt
www.minesite.com/cnd.html
Rumours of an impending marriage between Canadian-listed Olympus Pacific Minerals and ASX-listed Zedex Minerals have surfaced from time to time over the past year or more, but this time round the two companies are actually going to make it to the altar. All the major players are in favour, and there is no fire breathing reptile blocking the path and keeping them apart. Getting together makes a lot of sense and, in the end, logic will out. For a start John Seton, brother of the executive chairman of Olympus Pacific, David Seton, is chairman of Zedex, as well as also being on the board of Olympus. Second, Zedex already has a significant shareholding in Olympus Pacific. Third, the Seton family have a swag of shares in both companies and want to have it under one roof for obvious reasons. Fourth, the business combination of the two companies, which operate in the same area of the world, adds up to a very strong junior gold production company.
Cutting to the chase, by the end of 2010 Olympus Pacific will no longer be just a producer with 1.5 million ounces of resources focused solely on Vietnam. By then it will have annualised production running at 80,000 ounces per year, backed up by resources amounting to over three million ounces and rising. What is very important, as David Seton points out, is that the enlarged Olympus will have diversification across four projects in Vietnam and Malaysia, and a pathway through to a production rate of 300,000 ounces by 2014. Some North American investors may still jib at Vietnam, after all US troops did get a bit of a hammering out there, and it still has a communist government, but Vietnam’s economy is now shaping up as one of the power houses of the Far East, and its bureaucracy, though slow, is uncorrupt. Malaysia, of course, is a country favoured by Western investors as its government is closely modelled after the Westminster parliamentary system, as a legacy of British colonial rule which finished with independence in 1957.
The deal between the two companies, though outwardly complicated because Zedex is incorporated in New Zealand, simply involves a paper swap so that every shareholder in Zedex gets one new Olympus share for every 2.4 Zedex shares held. It is capital efficient, too, as Zedex’s shares in Olympus are being distributed to its shareholders too, so dilution is limited. The result is that the Zedex shareholders will end up with 39.4 per cent of the enlarged company, compared with the indirect 26.3 per cent they now hold through the Zedex stake in Olympus. The Seton brothers stepped aside from the actual negotiation over terms. One of those put into bat on their behalf was Alan Eggers who is an independent director of Zedex, and who will be speaking at our Christmas Forum about his new uranium company, Manhattan Resources. When everything is wrapped up by early next year, the shares of the new Olympus will be quoted on Toronto as well as the ASX, and demand and liquidity should improve as a result.
Readers of Minesite already have a fair knowledge of Olympus, but a description of Zedex is probably in order. It has a 50.05 per cent interest in the Bau joint venture in Sarawak in eastern Malaysia, which it also operates. Its partner is a local Malaysian mining company with the exotic name of Gladioli Enterprises. The joint venture tenements cover 828 square kilometres of the most highly prospective ground of the Bau goldfields. These goldfields have operated since 1864 and are recorded as having produced 1.5 million ounces of gold. Regional analogies and exploration results to date indicate the potential for significantly greater undiscovered targets.
All of which means that Avocet Mining may still be smarting, as Zedex acquired its interest there from virtually under its nose. Cameco is said to have invested around C$20 million there too, and across the border into Kalimantan in the mid 1990s, but it must have lost interest after the Bre-X scandal. Anyway, the current JORC status resource at Bau amounts to 1.612 million ounces of gold, plus identified geological targets in deposit extensions and adjacent zones amounting to a further 3.3 to 4.5 million ounces. Feasibility work will start at the Bau project next year.
Zedex also has a 75 per cent interest in the Tien Thuan (Tiger Mountain) gold project in Vietnam, 50 kilometres west of the port of Quy Nhon. The area was extensively mapped and sampled by the Geological Survey of Vietnam in the 1990s, and that work is being validated and extended through detailed geological, geochemical and geophysical surveys. The real excitement, however, will come when drilling takes place at depth below the outcropping shoots. This project consolidates the position of Olympus Pacific as a first mover in the country, as it commissioned the first two gold mines – Bong Mieu and Phuoc Son – built there since the 1940s. Bong Mieu was first into production and its throughput is now being supplemented by high grade ore transported from Phuoc Son. The combination should ensure production of 40,000 ounces gold in 2010, but by that time a new and more sophisticated plant will have been constructed at Phuoc Son which should double production by 2011.
The path to combined production in Vietnam and Malaysia of 300,000 ounces per year in 2014 is an interesting one. In 2012, the first phase of Bau should come on stream at a rate of 30,000 ounces per year. Combined with improvements at Bong Mieu, that should take the total to 145,000 ounces. The following year production from Bau is expected to double and the contributions from both Bong Mieu and Phuoc Son will also improve, to give a target of 245,000 ounces. But the big push will come in 2014 when Bau and Phuoc Son are level pegging at 100,000 ounces, and Bong Mieu tops them with 105,000 ounces.
A lot of water has to pass under the bridge before this is achieved, but it is worth noting that nothing is expected from Tien Thuan by then, and the ongoing acquisition of a 60 per cent interest in the Capcapo gold property in northern Philippines, which is being negotiated, gets barely a mention. Look at a map, however, and it is easy to see that the projects in three countries are very close in reality, forming a triangle enclosing the South China Sea. The only project the enlarged company will hold outside this triangle is the Enmore goldfield in New South Wales, where seven historic mine prospects have been partially investigated.
So Tien Thuan and Enmore add weight to the portfolio of the new Olympus. Other acquisitions can be expected, though these will not be allowed to deter management from the central thrust of production. Nor should it be overlooked that Zedex has a two per cent gross over-riding royalty on production from Bong Mieu, and this will no longer apply in the new set-up. As far as investors are concerned, though, they can now be sure, even though the last “t” will only be crossed in January with the ASX listing, that they can trade in what is effectively the new Olympus on the Toronto Exchange (OYM), and know they are involved with a significant gold producer in South East Asia. And where better to be with the geopolitical axis of the world moving steadily in that direction?
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