Ariana Resources: A piece of Turkey in the heart of Mayfair!

The Chesterfield Hotel in Mayfair was the setting for Ariana Resources (LON:AAU) latest investor presentation last Wednesday evening.

Hosted by Proactive Investors, Ariana shared the billing with Western Potash (TSX.V:WPX) who have a “solution” mining project in Regina Canada and Resource Generation (ASX:RES), who are developing a coal mine in South Africa.

Having attended a few of these Proactive events, one knows their success is always dependent on the calibre of company/management presenting and the mood of the room on the night!

This time round the event was very well supported with a lively mix of finance professionals and private investors. To compliment the event, Proactive's Wendy Durham even produced a new in-depth research note on Ariana which is well worth a read (click here to view).

Ariana's MD, Kerim Sener presented the company’s investment case to a receptive audience, though it was clear from the post event conversations that most had not previously heard about the company.

That being the case, with just 30 minutes of stage time, the big challenge was to concisely introduce the company whilst doing justice to all aspects the investment case.

Not as easy as it may seem. Ariana has some very significant irons in the fire; not least of which being the pending Proccea JV on the Red Rabbit project (click here for latest update), so there was always a danger that, depending on how the delivery went, the proverbial cake could have been obscured by a rather oversized cherry!

But with the support of a well-crafted presentation (click here to view ) Kerim managed to talk people through the Ariana story, doing justice to all aspects and giving additional detail as and when required.

So what did we learn?

With the presentation geared towards the uninitiated, the natural starting point was the country itself; Turkey being an economic powerhouse in the region with a thriving gold  market, mining friendly legislation, situated on the highly prospective Tethyan Metallogenic Belt...and so on.

All good stuff (click here to view our value proposition on Ariana) and it also served as a good refresher for existing investors. We also noted that good progress is being made with the EGU JV and Ariana’s own ongoing exploration work is all very much on track.

But what about the Proccea JV?

Kerim elaborated on certain details here making a point of commenting on how pleased they were with the results of the project scoping study (estimating a project cash cost of between US$350 and $400 per ounce), the good cooperation with Proccea and the rate of progress.

But one of the more intriguing nuggets we gleaned was that under the terms of the JV agreement, as Ariana continues to prove up more ground within in the Red Rabbit project area, the Company has the right, but not the obligation, to sell the resource into the JV for 3x the exploration cost.

This was a really interesting detail as it gives some background to the principles by which the two parties have agreed to divide the spoils.

In order to prolong the life of the mine, Ariana needs to continue exploration work to expand the resource within the Red Rabbit project area.

But with ongoing exploration work at Ariana’s cost, a formula was needed to provide the Company with an appropriate financial incentive to prove up more ounces for the benefit of the JV.

With this solution, when selling resources into the JV, Ariana will recover all of its exploration costs, plus a reasonable premium on top. And since there is no obligation, only the right, to sell additional resource into the JV, the company would also be free to consider any outside interests, thereby maximising its potential returns. Very reasonable!

With the presentation over the networking began. Ariana had pulled in a full team for the evening, including all the main board directors, as well as their broker from Alexander David Securities. They were certainly in demand as between them they worked the room, collecting and handing out business cards and talking Turkey!

The next event will be the Minesite presentation on 16th March (for details click here)


To subscribe to Ariana Resources company updates, click here

Previous Miningmaven articles on Ariana Resources

3 January 2010 Ariana Resources: Buy me a Gold Mine in Turkey!

30 January 2010 Ariana Resources: Going for Gold in "Turnkey" Turkey

10 February 2010 Ariana Resources: Lets get this show on the road!

18 February 2010 Ariana Resources: Limbering up for the Main Event!!

To view the latest 2010 presentation from Ariana , click here


This summary represents the views and opinions of Miningmaven, has been prepared for information and educational purposes only and should not be considered as investment advice or a recommendation. All opinions expressed in this weblog are those of the author and should not be construed as being made on behalf of any featured Company.

Readers are advised to do their own extensive research before buying shares which, as with all small cap exploration stocks, should be viewed as high risk. Investors should also seek the advice of their investment adviser or stockbroker, as they deem appropriate.

All rights reserved. Users may print extracts of content from this blog for their own personal and non-commercial use only. Republication or redistribution of Miningmaven content, is expressly prohibited without the prior written consent of miningmaven. However, linking directly to the Miningmaven blog is permitted and encouraged.

The author owns shares in Ariana Resources Plc.

Copyright © miningmaven 2009

Red Rock Resources – A Value Investor’s View

As readers will know, Mining Maven’s approach is always from a value investors perspective. Identifying and following opportunities where value is not fully reflected in the current share price.

We usually start with the balance sheet, where very often we find value cosseted in complex project portfolios. But the real opportunities rest in identifying current, not historic value; and this often also requires thorough analysis and careful investor assessment of the Company's up to date plans and prospects.

So, we were rather pleased to note the latest Edison research update on Red Rock Resources (AIM: RRR), which also demonstrates the value which, as yet, the market does not reflect.

In this case, the Edison Investment Research Report (click here to view) indicates that the Company's market cap could be undervalued by up to a bewildering 89%!

The report analyses Red Rock Resources in depth and provides various valuation scenarios, which we recommend readers review for themselves in detail. But their top end scenario indicates a share price in excess of 16 pence reflecting net assets (on the assumptions given) of £93million. Given the current market cap of aorund £9.6m, thats some uplift!

Of course, we don’t anticipate the share price will miraculously leap to 16 pence overnight, however, the pathway to that level has been mapped out within the Edison report and it is clear that as Red Rock continues to crystallise value from various elements of its portfolio, the value of the company could move up accordingly, giving reason for the share price to follow.

Currently valued at 1.625p per share, Red Rock is significantly short of even Edison’s Worst Case, scenario, so if you are after value, Red Rock certainly deserves consideration. Investors may recall that the FT were wise to the undervaluation back in December 09 (click here to read the article).

We don’t have a crystal ball, and to our knowledge neither does Executive Chairman Andrew Bell,; but in the recent Mining Maven TV interview (click here to view), he states Management's target is for the share price to achieve double figures. An aspiration one would expect from company management. Based on with the latest Edison report, perhaps that aspirations could soon be realised.

Other Miningmaven articles & features on Red Rock Resources:

8 February 2010 - Red Rock Resources: Andrew Bell going for gold in Kenya!

3 February 2010 - Red Rock Resources: New funding options??

19 January 2010- Red Rock Resources (UPDATE) - What have Red Rock Resources ever done for us??

15 January 2010 - Red Rock Resources: Growing those Gold Ounces....

This summary represents the views and opinions of Miningmaven, has been prepared for information and educational purposes only and should not be considered as investment advice or a recommendation. All opinions expressed in this weblog are those of the author and should not be construed as being made on behalf of any featured Company.

Readers are advised to do their own extensive research before buying shares which, as with all small cap exploration stocks, should be viewed as high risk. Investors should also seek the advice of their investment adviser or stockbroker, as they deem appropriate.

All rights reserved. Users may print extracts of content from this blog for their own personal and non-commercial use only. Republication or redistribution of Miningmaven content, is expressly prohibited without the prior written consent of miningmaven. However, linking directly to the Miningmaven blog is permitted and encouraged.

Copyright © miningmaven 2009

www.cash4idiots.com

Well it looks like cynicism is now well and truly permeating through the "cash in your gold" business, which sprung up fast on the heels of the global financial meltdown in 2008.

Complaints and reports of predatory practices are rife and it certainly didn’t take long for the shine to fade. So its no surprise that in January the OFT announced that it would be carrying out an investigation (to read click here ) into the business.

Whilst we await the outcome with interest, the findings are unlikely to surprise anyone.

Of course gold has always performed well as a safety net and a store of value when all around us is falling apart. But since 2008, the gold spot price has remained robust and is now close to its record high; so in order to make a margin in this business you need to be able to buy cheaply - enter Joe Public!

And the cash in your gold merchants now stand accused of praying on public desperation and taking advantage of their lack of knowledge of the true worth of their gold possessions.

But as the economy slowly returns to some degree of normalcy, it looks like the public's need to sell their gold to raise quick cash may also be on the wane. If so, then we could soon start to hear more of about  public purchases of gold for savings and investment purposes - which is a growing trend, but one, it would seem, in which the media are not particularly interested - yet. 

Here is an clip from a recent Miningmaven interview with Andrew Bell, chairman of Red Rock Resources who are exploring for gold in Kenya. Worth listening to what he has to say about where the price of gold is heading.

To see our recent Value Proposition on Red Rock Resources, click here

Cartoon in the header by:
http://www.dotgif-comic.com/

 

This summary represents the views and opinions of Miningmaven, has been prepared for information and educational purposes only and should not be considered as investment advice or a recommendation. All opinions expressed in this weblog are those of the author and should not be construed as being made on behalf of any featured Company.

Readers are advised to do their own extensive research before buying shares which, as with all small cap exploration stocks, should be viewed as high risk. Investors should also seek the advice of their investment adviser or stockbroker, as they deem appropriate.

All rights reserved. Users may print extracts of content from this blog for their own personal and non-commercial use only. Republication or redistribution of Miningmaven content, is expressly prohibited without the prior written consent of miningmaven. However, linking directly to the Miningmaven blog is permitted and encouraged.

Copyright © miningmaven 2009

Ariana Resources: Limbering up for the Main Event!!

After our last chat with Managing Director Kerim Sener at the beginning of the month, he certainly seemed confident that things were progressing well on all fronts.

So most Ariana shareholders were no doubt expecting the next news coming out from the Company would be the JV sign off by the end of Q1 – still 6 weeks away.

In the mean time the market had been drifting, with the share price re-testing last summer's lows. All this in spite off the Company’s promotional efforts and ongoing programme of investor presentations. (The next presentation is the Proactive Investors forum on 24th February. Click here for details).

So there’s nothing like a nice surprise update to catch the market off guard and remind investors exactly why they are holding Ariana.

So what is today’s announcement all about? Well to state the obvious, it demonstrates that solid progress towards the JV continues to be made, and more detail and visibility has been provided regarding all the processes the company is undertaking in this respect.

Worth particular mention are the results of the scoping study, which was based on sn envisaged production rate of 150,000 tonnes of ore per annum over a mine life targeted to be greater than 5 years. The study estimated a project cash cost of between US$350 and US$400 per ounce. Although this is only conceptual, it’s a great starting point, and you don’t need to be a mathematician to work out that the difference between the current gold price and the project cash costs per ounce would leave a healthy amount of meat on bone for the JV Company. Anyone care to start speculating on annual production targets?

Of course, prospective JV partners Proccea have done all this before. Through their mining services division CH Consultants, they have designed and built gold production plants in Turkey on behalf of Eldorado Gold, Koza Gold, Anatolia Minerals and Eti Gumus; in addition to various other international commissions.

So what can we take from today’s update? Well it not only provides us with some of the finer details of the work management is undertaking in finalising of the JV agreement; it also demonstrated that they look committed to providing the market and shareholders with as much visibility as possible.

As any investor will tell you, there is no substitute for visibility; the more we are told, the clearer a picture we can start to build. Healthy newsflow also breeds confidence and is the lifeblood of positive investor sentiment.

With the level of visibility demonstrated and improving investor sentiment - from here onwards we expect the share price may well start taking care of itself.

To subscribe to Ariana Resources company updates, click here

Previous Miningmaven articles on Ariana Resources

3 January 2010 Ariana Resources: Buy me a Gold Mine in Turkey!

30 January 2010 Ariana Resources: Going for Gold in "Turnkey" Turkey

10 February 2010 Ariana Resources: Lets get this show on the road!

To view the latest 2010 presentation from Ariana , click here

This summary represents the views and opinions of Miningmaven, has been prepared for information and educational purposes only and should not be considered as investment advice or a recommendation. All opinions expressed in this weblog are those of the author and should not be construed as being made on behalf of any featured Company.

Readers are advised to do their own extensive research before buying shares which, as with all small cap exploration stocks, should be viewed as high risk. Investors should also seek the advice of their investment adviser or stockbroker, as they deem appropriate.

All rights reserved. Users may print extracts of content from this blog for their own personal and non-commercial use only. Republication or redistribution of Miningmaven content, is expressly prohibited without the prior written consent of miningmaven. However, linking directly to the Miningmaven blog is permitted and encouraged.

Copyright © miningmaven 2009

Range Resources: Q&A Session with Pete Landau & Anthony Eastman

Miningmaven.com is pleased to have been able to facilitate this Q&A session with Range Resources plc.

The event was facilitated via a Facebook group event which enabled investors to ask important questions and receive answers directly from the Company's senior management.

Thank you to Mike Adams, Irene Stark, Jeremy Foote, Lloyd Short, Jason Stinton, Bailey Bailey, Paul Stokes and all other contributors, for their questions, thoughts and comments.

We have tried to reflect all queries within the questions asked. To do this some paraphrasing has been necessary in order to produce a broad session with reasonable coverage in all areas.

We would also like to thank Range Resources plc for participating in this new interview initiative. You can subscribe to  Range Resources email alert system by clicking here .

We expect this will be the first of many such events, so in order to stay informed and ensure you are invited to participate in all future events, you can join the Miningaven Facebook group by clicking here .

Range Resources is an oil and gas exploration company, listed on the Australian Stock Exchange (ASX: RRS) and the London Alternative Investment Market (AIM: RRL). The company has active exploration programmes in Puntland (Somalia), Texas (USA) and Georgia.

Range Resources responses below have been provided by Range Directors, Pete Landau and Anthony Eastman, with input from Texan consultants – Texas Energy Advisors and the Company’s Georgian partner, Strait Oil and Gas.

Texas:

Mining Maven (MM): You have achieved something quite remarkable with Texas turning a relatively small investment into a material revenue producing asset in just a few months. Could you explain briefly how you were able to secure this stake and how this commercial discovery will be managed?

Range Resources plc (RR): The project was offered to Range when one of the original participants elected not to join in the drilling of the Smith #1 well due to financial fall out from the GFC. Testing, further completion, and production of the well will be managed by the operator, with Range’s management team, Texas Energy Advisors, part of the Joint Operation Committee. Production will commence imminently (weather pending) following the successful completion of the flowline connection to the sales line and revenue will be recognized at the end of each month and payment for production typically lagging by 45 days and distributed by the operator. Following tie up, the next stages will include production rates and independent reserve reports, anticipated to be in the coming weeks. The second well in the field is expected to spud in April of this year.

MM: You announced on the 21st December that the well partners had purchased an additional 560 acres in the North Chapman area to bring the total leased area to 1,680 acres. Could you explain how this was secured, the funding for the purchase and how this additional land will be utilised?

RR: The additional acreage was acquired through standard oil and gas leases from landowners in the area. Range’s contribution was made through existing cash. The acreage both protects the consortium (including Range) from competitors in the region and immediately adds additional development drilling locations. Based on 80-acre spacing, the new leases could result in the drilling of seven additional wells.

MM: Are you looking currently looking for, or examining, additional farm in prospects onshore in Texas?

RR: Not at this stage, Range is comfortable with its portfolio of assets and will only consider new opportunities (anywhere – not just Texas) it they arise through unique circumstances where the Company is starting from a position of intimate technical knowledge of the play. Importantly, there will be another well drilled in the North Chapman field around April 2010 which will benefit from the technical base already established with the Smith #1 well.

Georgia:

MM: Please explain the Georgia programme you are undertaking and when you expect the key milestones to be achieved?

RR: Range and Strait are well advanced in completing Phase II (of III) of the PSA programme (see announcement 17 February 2010).

Key milestones under Phase II:

- A 350km Seismic Acquisition / Processing / Interpretation Program that is designed to lead to the identification of a number of drilling targets.

The seismic acquisition commenced in November 2009 and is due to complete end of March 2010.

- Processing and interpretation of the seismic data will be completed May / June 2010 which should lead to the generation of a number of drill targets.

- Drilling to start - assuming suitable targets identified - in Q4 2010. Whether Range/Strait drills or farms out will depend on a number of circumstances (status of Puntland and Texas projects, interest in Georgia from potential farm-in partners, quality of prospects generated etc.)

There are local groups that are suitably staffed / equipped to drill exploratory wells and bring them into production if commercial discoveries are made.

MM: What evidence do you have that there are, potentially, material quantities of oil and gas within the prospect areas?

RR: These Blocks were well researched during the Soviet period of Georgia's history - 204 wells were drilled for assessing general geology and Oil & Gas. Certain levels of production were achieved. Major development did not occur due to far more significant multi billion barrel discoveries in areas a lot more stable than Georgia at the time. The Georgian wells were abandoned / sealed during the civil war pre the Rose Revolution. The information was reviewed / checked by an Independent Technical Evaluator as part of the Company’s technical due diligence and their findings indicated 383 million barrels of estimated recoverable Oil in Place. An assessment as to the potential Gas in place is currently in progress focussing on the area where previous production occurred.

MM: On the positive assumption that your exploration efforts are productive, please explain the revenue sharing agreement you have negotiated for the Georgia assets?

RR: The Product Sharing Agreement:

- 50% goes to the Cost Recovery Programme in favour of the Company;

- 25 % is returned to the Georgian Government; and

- 25% is 'Profit Oil ' for the Company.

- When Cost Recovery has been achieved the' Profit Oil ' is divided as follows:

- 65% is returned to the Georgian Government; and

- 35% is for the Company.

There are no significant tax issues:

- we have VAT exemption;

- The Company - when in profit - excluding 'Cost Recovery '- will be liable to Corporation tax at 12%

- The Operating Company is non -profit but pays local employment tax on Georgian employees and 4% for foreign ' Contractors / Consultants '- When in commercial Oil production:

MM: Range has more skin in the game with Georgia than Texas or Puntland, by virtue of the participation percentages. Please explain how Georgia will be managed and funded, assuming successful exploration?

RR: Too early to tell, key factors in how to commercially exploit Georgia include:

- Status of Puntland and Texas projects;

- Level of interest (corporately and partnering oil & gas companies) in farming into Georgia (currently at the moment at least 5 other companies operating in Georgia).

- Quality of drilling prospects derived from the seismic programme.

As referred to above, local logisitics and technical management already exists in Georgia.

Puntland:

MM: Is Puntland the major focus of the company going forward and why?

RR: Puntland has been the cornerstone for the Company since it secured the exclusive onshore and offshore exploration rights to Puntland in August 2005. Following the Puntland elections in January 2009, which resulted in a change of President and Government, there was a requirement for a review of the existing PSA’s.

The review was led by Range’s JV partner Africa Oil Corp. and was successfully concluded in December 2009.

There is no doubt that Puntland is still the major focus of the Company, given the potential for a unique world class discovery to be made. Georgia and Texas were introduced as a result of a number of factors (GFC, delays in Puntland etc.) but there is no doubt Puntland is still the driver behind Range.

From Range’s perspective, political risk is very manageable (as demonstrated by the recent change in Government and PSA affirmations) but there will always be greater country / terrorist risk by virtue of the current volatile environment throughout pockets of Somalia.

MM: Please explain why Puntland is geologically an exciting area of operations.

RR: The Nogal and Darin basins are believed to be part of a failed rift system and are considered extensions to the prolific Yemen rift system found to the North across the Gulf of Aden. These two areas were joined approximately 18 million years ago prior to the rifting of the Indian plate away from the African plate. The Cretaceous and Jurassic sedimentary basins in Yemen host estimated reserves of over 6 billion barrels of oil with current production over 400,000 barrels per day.

Several of the targets traps were subsequently drilled, however, only drill data from the Nogal-1 and Kalis-1 holes are available for interpretation. Drilling reports for these two wells indicated that the oil shows were reported in some of the shallower sandstones but the important host, the Jurassic sandstone was not reached. In 1990, the Kalis-1 well was drilled to 5100 feet, far short of the original target depth of 14,850 feet. The Nogal --1 well was also drilled in 1990 and reached a total depth of 10,736 feet.

Following Africa Oil's successful acquisition of 775 kilometres of 2D seismic in the Dharoor Block, prospects for 2010 drilling are being finalized. Preliminary interpretations indicate the presence of robust prospects which have the potential to contain large reserve volumes.

MM: Please describe the expected Puntland programme and when the key milestones should be reached for investors.

RR: Africa Oil has commenced operations with an intention to spud the first exploration well by July/August 2010, followed by a second well in approximately November 2010. Leading into the spudding of the first well, you will have rig mobilisation and site establishment – April through June 2010.

Offshore negotiations are ongoing with a possible agreement timeline of Q2 2010.

MM: Please outline the costs Range will face with regard to the Puntland programme in the coming year and how will the company fund their contribution?

RR: Upon completion of the rights issue, Range will have covered its costs associated with the first well. Second well, Range may be fully covered (possibility of AOC moving Nugaal carry into Dharoor depending on well programme, Texas cashflow, corporate play with Georgia etc.), however too early to tell.

Range is still free carried for the next US$17m to be spent on Nugaal. Range contributes their 20% interest in Dharoor.

MM: How committed are Africa Oil with regard to their Puntland interest and how are they likely to take this forward?

RR: Cannot emphasise enough Africa Oil’s commitment to Puntland, spent circa US$40m to date and assembled one of the best drilling / technical teams available for Puntland. Managing risk (by looking for farm-out opportunities) and questioning management commitment are two very different issues. Range will not comment on Africa Oil’s behalf other than stating Range is 100% supportive of their commitment, efforts and ability in Puntland.

MM: Please outline progress with regard to Puntland Offshore and specifically the likely process and timescale to securing a possible farm-in partner?

RR: Following the successful completion of negotiations regarding the onshore licences and previous technical presentations to the Government on the proposed offshore areas of interest, Range will look to continue negotiations regarding the formalisation of a new PSA with respect to the exploration and development of offshore Puntland in Q2 2010. Range has had a number of discussions with interested parties; however the current focus is a PSA terms sheet with the Government followed by joint venture talks..

General:

MM: Could you provide more regular updates to your shareholders concerning operation progress / timelines for significant news releases?

RR: Range updates shareholders with all material events on a regular basis, as and when these material events occur. To combat rampant speculation the Company would almost have to provide daily updates. Importantly, any material information is immediately released to the market in accordance with ASX Listing Rules.

MM: Can you provide some transparency on the holdings in Range Resources by directors and connected persons?

RR: Under ASX and Corporations Act requirements, all directors’ holdings and any movements are disclosed. Any on-market buying is very difficult due to the operation of insider trading rules and Directors being in possession of price sensitive information. All directors have in the past taken, and will take up, their entitlements in full under the rights issue

MM: Range Resources has suffered from a number of historical and well publicised difficulties, not least the extensive dilution to existing shareholders. How do you intend to win back the confidence of current and prospective Range Resources Investors?

RR: A year ago Range’s only asset that it held was its interests in Puntland. Following unavoidable delays and a change in Government in early 2009 (as mentioned above), the Company sought opportunities to diversify its asset base and mitigate the risk associated of being only a ‘one asset’ Company in a volatile region, hence the successful completion of the Georgian and Texan deals.

Range believes that the current portfolio of assets has established Range as a well diversified junior oil & gas Company, providing shareholders with exposure to low risk short-term cashflow through Texas, all the way to enormous upside through its Puntland interests.

It is now up to the Company to deliver value from the current portfolio of assets, with 2010 being a very exciting year for the Company. Forecast activity for the year includes:

- First production on Texas and subsequent further development during the year;

- Completion of 350km seismic program in Georgia that will potentially lead to the identification of drilling targets, with the possibility of drilling late 2010.

- First well spudded onshore Puntland in over 16+ years, followed by second well late 2010.

In short, confidence will only be obtained through delivery of commercial success from the activities summarised above. Also note that commercial success based upon known prospectivity should equate to a market capitalisation many times greater than the current market capitalisation of the Company.

MM: Please summarise Range's Resources short term opportunities and describe the medium to long term future (2-5 years)?

RR: Whether it’s short, medium or long term focus, there is only one driving factor, maximise shareholder value / returns. How this is ultimately achieved depends on the circumstances on any given day. One thing which is certain, the Board or its individual Directors are not driven by ego or empire building and have all had a serious level of exposure in listed resources plays (globally) to assess maximising returns and mitigating risk. The focus will still remain with oil & gas.

END

This summary represents the views and opinions of Miningmaven, has been prepared for information and educational purposes only and should not be considered as investment advice or a recommendation. All opinions expressed in this weblog are those of the author and should not be construed as being made on behalf of any featured Company.

Readers are advised to do their own extensive research before buying shares which, as with all small cap exploration stocks, should be viewed as high risk. Investors should also seek the advice of their investment adviser or stockbroker, as they deem appropriate.

All rights reserved. Users may print extracts of content from this blog for their own personal and non-commercial use only. Republication or redistribution of Miningmaven content, is expressly prohibited without the prior written consent of miningmaven. However, linking directly to the Miningmaven blog is permitted and encouraged.

Copyright © miningmaven 2009

Horizonte Minerals: Nickel and Gold Explorer – it’s all there if you look close enough!

The technical verbiage in exploration updates can often overwhelm, sometimes leaving us with more questions than answers. But fortunately Jeremy Martin, Chief Executive of Horizonte Minerals prefers a less complicated style of writing, so it was with relative ease and interest we note the company’s latest news release.

However as keen followers of resource stocks will note, explorers can be a cautious lot; preferring not to get investors overexcited at an early stage and leaving themselves hostage to fortune. That’s why one always has read such updates extremely carefully, paying great attention to all the detail.

If you just gave the announcement a cursory glance then you could easily have missed some key points. So here are some thoughts.

Firstly, we recognise that investors are yearning for crystallisation of value, and with the Lontra Nickel project due a JORC resource calculation by mid 2010, this looks like it could now be on the way!

Work here has been delayed by rains which is disappointing, but short of acquiring an industrial strength umbrella the size of Hamburg, there’s not much else the company could have done. We also note that, to complement drilling plans, the company have now engaged well respected lateritic Nickel expert, Roger Billington, which we see as a good endorsement for the project and will complement the successful metallurgical test work already undertaken to date.

In short, the company clearly views Lontra as a serious enough project and management are now demonstrating how they intend to work towards transforming it into a valuable asset.

This stage in Lontra’s development is a somewhat reminiscent of African Eagle’s progress with their Dutwa nickel project. With the scale of the resource potential and meticulous approach the company is taking, they may well achieve similar results with Lontra – at which point talk of value creation would be on a whole new scale.

Ah, but secondly there is Tangara, which many investors see as a bit of a dead duck.

This is something we find rather anomalous. Before Tangara was farmed out to Troy Resources there had been a successful period of exploration by carried out Horizonte. Troy started off by focusing on new areas of the licence and before one starts to bemoan their results todate, one also needs to consider the value of the original exploration work carried out by Horizonte.

And why do Troy Resources keep pursuing this apparent dead duck? Because, as outlined in today’s announcement, they are now actively developing new targets within the main project area. In today’s environment companies don’t sink funds into drilling programs without a good reason. So with Troy bearing all exploration cost and a free carry for Horizonte, we can afford to have an optimistic expectation of better fortunes ahead or, in the words of Wilkins Micawber, ”something will turn up!”.

And then thirdly there’s the Anglogold Alliance. This is where we sat up and really started to take notice. There is nothing to get the heart racing like seeing the phrase “significant anomaly” jump out of your screen. Significant anomalies are great, but then we read “we are confident that as this develops there is the potential for discovering numerous targets with scalability for a major gold discovery”....

...and then we read this “New concessions have been applied for covering this target and follow up work is underway to advance the anomaly to define drill targets.”

So there you have it, and the reason why the term “significant anomaly” news was gently lowered into the announcement earlier on.

Could they have found something material already? Could be. But as previously mentioned, exploration companies are prone to circumspection and whilst Jeremy might like to make more of the such an important significant development, there is always the hostage to fortune issue; not to mention the need to satisfy the nominated advisors who scrutinise all market news releases. They will no doubt have ensured he erred on the right side of caution in this case.

We will be keeping a very close eye on developments here in particular. Its early days yet, but we believe this has all the hallmarks of a major new find in the making.

So in summary:

- Slight delay to Lontra Jorc due to rains but confirmation of technical expert appointment and clarity on revised programme;

- Tangara evidently still alive (even though some would argue to the contrary);

- The Anglogold alliance is working and dare we say it may have found something interesting – watch this space;

- LGA work progresses successfully.

A great mix. Solid underlying value from the Nickel projects and blue sky potential from Gold. Keep your eyes on that Anglogold alliance in particular!

This summary represents the views and opinions of Miningmaven, has been prepared for information and educational purposes only and should not be considered as investment advice or a recommendation. All opinions expressed in this weblog are those of the author and should not be construed as being made on behalf of any featured Company.

Readers are advised to do their own extensive research before buying shares which, as with all small cap exploration stocks, should be viewed as high risk. Investors should also seek the advice of their investment adviser or stockbroker, as they deem appropriate.

All rights reserved. Users may print extracts of content from this blog for their own personal and non-commercial use only. Republication or redistribution of Miningmaven content, is expressly prohibited without the prior written consent of miningmaven. However, linking directly to the Miningmaven blog is permitted and encouraged.

Copyright © miningmaven 2009

Ariana Resources: Lets get this show on the road!

You certainly wouldn’t know it by looking at the share price, but Ariana Resources is gearing up for the next leg of its publicity road show!

We recently had a chance to speak to Managing Director Kerim Sener and he was extremely upbeat about his forthcoming trip to Turkey which includes development meetings with prospective joint venture partner Proccea. This JV will see Proccea investing $8 million in return for a 50% stake in Ariana's gold development project, dubbed "Red Rabbit",  in order to to fast track it into full production. 

Whilst understandably, he wouldn’t be pressed on a likely date for signing the JV  (I quote “ we said we expect to complete in Q1 and its all going very well” ),  Kerim will be returning to the UK for a Proactive Investor one2one presentation on 24th February and he is most keen to see a good turn out, so he can meet shareholders new and old, and bring everyone up to speed with the Ariana story.

He also suggested that healthy news flow can be expected going forward, both market news and also through regular shareholder updates. This will be of particular interest to those who like to keep an ear close to the ground and track progress. To this end, the company has also started using the Twitter site. We love Twitter - it has had a big impact on Miningmaven, bringing in new followers from around the globe. Many North American juniors use it, but we think Ariana is the first AIM junior to join. To follow Ariana on Twitter, click here 

Keeping shareholders close and staying in touch looks like becoming a priority for the company going forward. However, whilst most shareholders use nominee accounts these days, it is not always easy or even possible for companies to find out who their shareholders actually are.

Bearing in mind the expected developments and news flow, this is somewhat frustrating for Ariana. They want to communicate directly with shareholders and understandably so. In this respect the Company have expressed a desire to forge strong relationships with all their shareholders and would like see more people joining their mailing list on the website. They invite you to sign up for news updates through this priority link here.  

We are also looking forward to the presentation on the 24th and very keen to hear news on the JV. If you haven’t already had your invitation for the presentation, you can register here.

Roll on the 24th of February!!

This summary represents the views and opinions of Miningmaven, has been prepared for information and educational purposes only and should not be considered as investment advice or a recommendation. All opinions expressed in this weblog are those of the author and should not be construed as being made on behalf of any featured Company.

Readers are advised to do their own extensive research before buying shares which, as with all small cap exploration stocks, should be viewed as high risk. Investors should also seek the advice of their investment adviser or stockbroker, as they deem appropriate.

All rights reserved. Users may print extracts of content from this blog for their own personal and non-commercial use only. Republication or redistribution of Miningmaven content, is expressly prohibited without the prior written consent of miningmaven. However, linking directly to the Miningmaven blog is permitted and encouraged.

Copyright © miningmaven 2009

Red Rock Resources: Andrew Bell going for gold in Kenya!

SCREEN TOO SMALL? ENLARGED VERSION here

Red Rock Resources: Andrew Bell going for gold! from Mining Maven on Vimeo.

To view the latest Miningmaven Value proposition quoted in this interview click here
To view the latest commentary on Red Rock news click here

This summary represents the views and opinions of Miningmaven, has been prepared for information and educational purposes only and should not be considered as investment advice or a recommendation. All opinions expressed in this weblog are those of the author and should not be construed as being made on behalf of any featured Company.

Readers are advised to do their own extensive research before buying shares which, as with all small cap exploration stocks, should be viewed as high risk. Investors should also seek the advice of their investment adviser or stockbroker, as they deem appropriate.

All rights reserved. Users may print extracts of content from this blog for their own personal and non-commercial use only. Republication or redistribution of Miningmaven content, is expressly prohibited without the prior written consent of miningmaven. However, linking directly to the Miningmaven blog is permitted and encouraged.

Copyright © miningmaven 2010

What’s eating Jon Nadler?

Those who follow gold closely will be equally familiar with Jon Nadler, the gold commentator with a profoundly negative stance - who also just happens to be the senior analyst for Kitco the Canadian internet gold site and bullion dealer. Yes folks, the voice of Kitco, who issues daily commentary on their behalf, is so consistently negative that he has earned the title “The Tokyo Rose” of Gold analysts!

For those who follow the sector, this will come as no surprise. But for newcomers, just imagine the football (thats what we call "soccer") editor of The Sun continually criticising the game and telling people to stop watching live matches because at these prices, there are far better things to spend your money on .

Bizarre as that may sound, it is parallel to the commentary Nadler is putting out on the gold market; and coming from someone in his position, it all seems rather surreal.

If you are a commentator in the gold business and your paymasters are bullion dealers, how could your views be considered independent? And some may assume you could even be conflicted in your interests....

Not that this bothers Nadler!! Kitco give his commentary pole position on their site and in return he very eloquently talks down the gold market on a daily basis.

I was reminded of Jon Nadler's surreal role whilst listening to this interview today on King World News with John Embry from Sprott Asset Management. A highly successful investment strategist, he has a fundamentalist approach to Gold and the gold market, having lived through the 70’s gold bull run, he certainly knows how many beans make five.

He doesn’t buy Nadler's stance for one minute. Quoting Eric King, paraphrasing Jon Embry:

“as long as Nadler keeps getting press, it is reasonable to assume we are a long way from the end of this bull market in gold”

As the interview reminds us, people often forget or put to one side, the possibility that those in a position of influence are also in a position to “talk their own book”. So if Nadler is indeed talking his own book, then that would suggest Kitco are angling for sellers rather than buyers, which would then indicate their long term efforts are focussed on sustaining the supply side, rather than the demand side of their business - and if that is the case, then suddenly Nadlers position starts to make sense.  

Perhaps this is a cynical view, but in reality could Nadler's game perhaps be nothing  more than an upstream version of those "cash in your gold” TV campaigns? Who knows!

The interview is well worth a listen (click here to listen) ahead of what promises to be an interesting week for the precious metals.

You may also want to hear Ted Butler's take on last week's trading activity and his opnion that we may be at or near a bottom in the Silver & Gold markets– now where have I heard that before? Certainly not from Mr Nadler!!

This summary represents the views and opinions of Miningmaven, has been prepared for information and educational purposes only and should not be considered as investment advice or a recommendation. All opinions expressed in this weblog are those of the author and should not be construed as being made on behalf of any featured Company.

Readers are advised to do their own extensive research before buying shares which, as with all small cap exploration stocks, should be viewed as high risk. Investors should also seek the advice of their investment adviser or stockbroker, as they deem appropriate.

All rights reserved. Users may print extracts of content from this blog for their own personal and non-commercial use only. Republication or redistribution of Miningmaven content, is expressly prohibited without the prior written consent of miningmaven. However, linking directly to the Miningmaven blog is permitted and encouraged.

Copyright © miningmaven 2010

Red Rock Resources: New funding options??

As Red Rock shareholders will realise, the company's holding in Jupiter Mines has the near term potential to dwarf its current market cap (mention in the FT article here) . But as any reader of John Steinbeck’s ‘The Pearl’ will attest, having something of significant value doesn’t necessarily mean you can readily realise its true worth. And if you are limited in terms of who you can talk  to, then the process becomes even more constrained. You need the flexibility as well as the knowledge.

We therefore note with interest the latest developments from Red Rock Resources who, this morning, announced the end of their Joint Venture Agreement with Pallinghurst. This Joint Venture saw the companies working together to vend assets in exchange for stock in an enlarged Jupiter Mines.

In 2009, Red Rock vended various assets into Jupiter and in return, became Jupiter’s largest shareholder with a holding of 93million shares, around 25% of Jupiter's overall share capital. That shareholding, as we highlighted in our recent Value Proposition, is currently worth around £11million or nearly 2p per Red Rock share (not bad considering the entire company trades at 1.55p mid, and that includes all the other assets thrown in for nothing).

So the announcement today effectively marks, the successful conclusion to the venture with Pallinghurst and the end of the pre-emptive rights they had over Red Rock’s stake in Jupiter Mines. This is significant, because until this point, Pallinghurst were effective gatekeepers of Red Rock's stake, thus limiting potential market interest.

So from now on Red Rock has the flexibility to talk openly with others who may be keen on acquiring a strategic stake in Jupiter Mines. 

Bearing in mind that most of Jupiter's stock is tightly held by Pallinghurst, their partners POSCO and others including more recent arrivals on the share register, Hancock Prospecting. So anyone after a decent sized stake will find their options severely limited.

On another level, an intriguing consequence of this development will see Red Rock's voting power and therefore influence in Jupiter increase. This may well come in handy should Pallinghurst wish to divest one or more of their assets in whole or part into Jupiter. (Brian Gilbertson speculated on this potential in their last investor presentation - well worth a listen). In this event Pallinghurst would not be able to vote, but of course with Red Rock now free from their concert party  arrangements with Pallinghurst, their shareholding represents a significant control block.

So with what looks like a new window for funding about to open, what would be the reaction if Red Rock were to sell just 10 of their 90 million shares at the current price of 20c, raising £1 million? This would certainly be sufficient to cover development plans for Migori Gold, Zambian Manganese and just about anything else in the pipeline for some time to come.

Of course the immediate ability of Red Rock to release value from the Jupiter holding is exciting stuff. But what if that’s just a side show?

The conclusion of the Joint Venture with Pallinghurst suggests to us that plans are afoot for another step change in activities at Jupiter Mines and we will be watching Jupiter news feeds with keen interest. It seems clear that Pallinghurst have plans to turn Jupiter into a major steel feed business. And at its market cap of just A$80million it is still a minnow. That may all be about to change and positive news on this front could improve the Jupiter share price and, with a growing market cap, the ease through which existing holder can realise a return on their investment when required.

This summary represents the views and opinions of Miningmaven, has been prepared for information and educational purposes only and should not be considered as investment advice or a recommendation. All opinions expressed in this weblog are those of the author and should not be construed as being made on behalf of any featured Company.

Readers are advised to do their own extensive research before buying shares which, as with all small cap exploration stocks, should be viewed as high risk. Investors should also seek the advice of their investment adviser or stockbroker, as they deem appropriate.

All rights reserved. Users may print extracts of content from this blog for their own personal and non-commercial use only. Republication or redistribution of Miningmaven content, is expressly prohibited without the prior written consent of miningmaven. However, linking directly to the Miningmaven blog is permitted and encouraged.

Copyright © miningmaven 2009