tag:blogger.com,1999:blog-43869006397847536392024-03-05T11:30:18.352-08:00miningmaven.comWe Have Moved!! Our new Site @ http://www.miningmaven.comMiningMavenhttp://www.blogger.com/profile/17207841279463670586noreply@blogger.comBlogger39125tag:blogger.com,1999:blog-4386900639784753639.post-45897177309032960012010-04-29T04:53:00.000-07:002010-04-29T04:53:12.319-07:00Goldstone Resources: So how much is a JORC worth?<div style="text-align: justify;">
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<strong><a href="http://bit.ly/9AZIO4">Goldstone Resources</a> announced its maiden JORC at Homase last week (click <a href="http://bit.ly/blUG0S">here</a> to view) and Mining Maven gave Exploration Director Hendrik Schloemann the opportunity to expand on the news with a brief Q&A session for investors (click <a href="http://miningmaven.blogspot.com/2010/04/goldstone-resources-q-with-exploration.html">here </a>to view).</strong></div>
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The exploration update confirmed a JORC compliant resource totalling 282,608 ounces, though judging from the initial market response this may have been less than some had hoped for. Perhaps, as often happens with speculation in the run up to significant news, the market may have got ahead of itself, and that old adage, “buy on rumour, sell on fact” came in to play. The share price has since recovered which would suggest this was indeed merely a knee jerk reaction. </div>
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However, we were rather impressed by the JORC figures. Why were we impressed?</div>
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Once again it’s down to the relative value of those ounces, and the fact that a big slug of the resource - 81% - came up in the measured and indicated category – so those ounces in the ground have a significantly greater value than inferred ounces. </div>
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For some reason the market currently seems fixated on quantity rather than quality, and this valuation anomaly is certainly not unique to Goldstone Resources. So coming from a value perspective - as we do – what value would we attribute to Homase? </div>
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Edison’s recent Gold Report, which provides global average values for Inferred, Indicated and Measured resources and extrapolating their values for the three JORC categories, ($340 per measured ounce, $159 per indicated ounce and $34 per inferred ounce) it would provide the following figures:</div>
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Measured – 157,298 ounces @$340 = $53,481,320 </div>
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Indicated – 72,531 ounces @$159 = $11,532,429</div>
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Inferred - 52,779 ounces @ $34 = $1,794,486</div>
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Total - $66,808,235</div>
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This is rather crude metric and is used merely to attribute some sort of value on the JORC ounces at Homase. It should also be noted that Goldstone Resources is currently still earning in to the project and subject to successful fulfilment of all the stages in the JV agreement (click here to view) they will eventually achieve an 85% interest.</div>
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That said, based on:</div>
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- the hugely significant JORC;</div>
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- the ability to increase the JORC resource;</div>
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- the prospectivity of the region; </div>
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- the fact that Homase was previously mined by Anglogold Ashanti and;</div>
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- that Goldstone has itself confirmed negotiations with a strategic partner are underway;</div>
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we look optimistically on the company’s ability to take this project forward expeditiously, raising working capital when needed.</div>
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Having mentioned a number of (non-JORC) factors above it is worth expanding a little here. </div>
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<strong>Resource Expansion:</strong></div>
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The company have confirmed in their announcement last week and in Mining Maven’s follow up Q&A session, that the resource holds the potential for further expansion down at depth and along strike. The resource as identified appears to be only a proportion of what Homase could actually hold and that is always a specific point of interest for investors.</div>
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In a world where million plus ounce resources are becoming increasingly attractive to mid tier and major gold producers desperate for new gold finds, Goldstone have found themselves holding some very prospective ground and it comes as no surprise that third parties have expressed an interest (see below re Strategic Partners).</div>
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<strong>Region Prospectivity:</strong></div>
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The Ghanaian projects, of which Homase is the most advanced, is some of the most highly prospective territory in the world. Homase is situated, for example, on the same structure that includes Anglogold’s Obuasi mine which has (including that produced to date) some 42 million ounces of gold. Also nearby are half a dozen million plus ounce projects which can be viewed by visiting the <a href="http://bit.ly/8Y6xQC">Homase</a> page on the company website. </div>
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<strong>Historic Mining:</strong></div>
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Anglogold Ashanti owned and operated a mine at Homase in 2002/2003, the ore generated was used to provide supplementary feed ore for their Obuasi operation at a reported operating cost per ounce of $220 – 280. This production was undertaken at a time when gold was priced at $320 – 380 per ounce. </div>
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Obviously in a time of extremely low gold prices, operation of the mine was marginal with regard to profitability but even factoring in increased operational costs we would expect Homase to be substantially more profitable in today’s $1100 plus ounce gold environment.</div>
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<strong>Strategic Partners:</strong></div>
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In their 9th April STATEMENT RE. SHARE PRICE MOVEMENT (click <a href="http://bit.ly/admwc3">here</a> to view), the company confirmed “In addition, as announced on 22 February 2010 the Company is in discussions with an industry participant regarding a potential strategic alliance which could include an equity subscription into Goldstone”. </div>
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They have a number of prospective licences, one of which has now yielded a maiden JORC resource. Going forward, short-term exploration costs appear to be controlled and central overheads moderate, putting them in a strong position with regard to strategic partnership negotiations and any future fund raising as required.</div>
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<strong>One other thing....</strong></div>
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It is important to remember that the above relates to just the one project in Ghana (Homase) and the company has another Ghanaian gold project (Manso Amenfi), a Senegalese gold project (Sangola) and applications pending for additional permits in Gabon. So what upside should we add for those elements?</div>
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<strong>In reality......</strong></div>
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Now of course, it would be a bit optimistic to expect an AIM listed explorer to simply leap up to much higher valuations immediately, but the potential and value is now clearly defined. And, recognising all the above factors, from a value investor’s perspective, we feel that 5p a share or a £6.5 million market cap should offer considerable upside potential. </div>
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We will be following Goldstone Resources very closely over the coming months and expect to report on developments as the story develops. In the interim we trust the Q&A session with Dr Hendrik Schloemann and this brief assessment have proved useful. If you have any comments or feedback please email us at <a href="mailto:info@miningmaven.com">info@miningmaven.com</a></div>
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<span style="font-size: x-small;">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 are those of the author and unless otherwise stated, should not be construed as being made on behalf of any featured Company. From time to time Mining Maven principals may or may not take an equity position in the said companies. 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 Mining Maven content, is expressly prohibited without the prior written consent of Mining Maven. However, linking directly to the Mining Maven blog is permitted and encouraged.</span></div>
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<span style="font-size: x-small;">Copyright © miningmaven 2010</span></div>MiningMavenhttp://www.blogger.com/profile/17207841279463670586noreply@blogger.comtag:blogger.com,1999:blog-4386900639784753639.post-39172726759132441872010-04-27T07:12:00.000-07:002010-04-28T03:44:09.181-07:00Red Rock Resources: Migori Economics!<div class="separator" style="clear: both; text-align: center;">
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<strong>Red Rock updated the market yesteday with new sample results from the Migori gold project in Kenya (click </strong><a href="http://bit.ly/cQ38Xf"><strong>here</strong></a><strong> to view). </strong><br />
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It seems that good progress in being made on the ground; quoting one line from the announcement, which should encourage investors:</div>
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<span style="font-size: large;"><em>"The results confirm the economic potential of the tailings, and the existence of further exploration targets suitable for early follow-up in the eastern license and at Nyarongi"</em></span><br />
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We asked Chairman Andrew Bell if he could expand on the news for the benefit of investors. Here's what he had to say:<br />
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<strong>MM:. Can you give our readers a brief overview of the significance of this update from Migori?</strong></div>
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<span style="color: #660000;"><strong>AB: In 1982 a Kenya-based company conducted sampling and metallurgical testwork at the old Macalder tailings. Some work was said to be carried out in Kenya, some in Australia, and some at Imperial College. In 1985 Mackay and Schellman quoted these results in some work they produced, but had not been able to source the original data. That was three years later, and they couldn’t track down the details. So in 2010 it is impossible. </strong></span><br />
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<span style="color: #660000;"><strong>We ran some numbers on the conclusions as to volume, grades, and recoverability, using today’s metal prices, and hypothesized just under $200,000,000 of recoverable metal. </strong></span><br />
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<span style="color: #660000;"><strong>But this was as we recognized quite unreliable. There was no alternative to going back and redrilling, resampling, doing cross and long sections, doing metallurgy, and coming up with figures that could be relied on and a process path that would enable us to implement the recovery of the metals. This is what we have done. </strong></span><br />
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<span style="color: #660000;"><strong>So far the figures for base metals agree quite well with the old figures. The copper grades reported by previous work in the calcine dumps looked unrealistically high, and our figures are lower, but still good. The sulphide copper figures agree well, our cobalt readings are a bit lower grade, especially in the sulphides. Also our zinc is a bit lower, which is an artifact of the upper detection limit of 1% in our ICP test: this factor means our calcine tailings copper grade is slightly low too. Overall there is good agreement, which increases slightly our confidence in the rest of the work done at that time.</strong></span><br />
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<span style="color: #660000;"><strong>The other results, which are encouraging, show that we are already identifying areas outside those already explored where we think we can identify and prove up mineralization to add to the resource base. </strong></span><br />
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<strong>MM: Can you also comment on the significance of the results for the Hand-grab samples collected at new BIF-related targets in the Eastern license?</strong><br />
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<span style="color: #660000;"><strong>AB:The results as we say are positive, and the Eastern license has been underexplored and the old mines there only mined to a certain depth because of the higher water table. The potential around the very old mines, in a couple of places, is clearly very good. The BIF model and our excitement at finding our hypotheses confirmed is something we shall enlarge on in our next announcement which is coming shortly.</strong></span><br />
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<strong>MM:Investors would hope that at some stage that the company may be able to generate revenues from the extraction and sale of the base metal content identified. Would you say the results indicate there may be content of economic significance in this respect and if so, what would the extraction and sale procedure involve and what timescales would you envisage? </strong><br />
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<span style="color: #660000;"><strong>AB:We are impatient and are looking actively into installing simple gold production plant and into tailings treatment. How soon? As fast as we can possible do it: this is our priority. We have to await metallurgical testwork on the tails, and are sampling the gossan and some surface areas. I anticipate that we shall extract gold and silver as well as the other metals from the tailings, but the optimal process route is actually what our metallurgists will be working out. </strong></span><br />
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<strong>MM:We note that the results for the gold and silver content from the tailings are still awaited, will you be reporting them them separately to the market and if so when do you expect this would be?</strong><br />
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<span style="color: #660000;"><strong>AB:This is a different set of tests. It should not be long. We expect them to be good so of course we want to announce the moment we can.</strong></span><br />
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<strong>MM: How do today's results add to your confidence in the overall economic viability of the Migori project going forward?</strong><br />
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<span style="color: #660000;"><strong>AB:I would be a little surprised and disappointed if we could not make an economic project out of treating the tailings, and do so within a short space. That creates the prospect of cash flow, and cash flow will help exploration and development proceed faster. I would hope that the tailings treatment, and, separately, a small gravity plant to treat surface gold, would themselves make a very viable project. But their development would not detract from, but assist, the continuing effort to build up a major resource by exploration along the length of the belt. </strong></span></div>
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<span style="font-size: x-small;">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 are those of the author and unless otherwise stated, should not be construed as being made on behalf of any featured Company. From time to time Mining Maven principals may or may not take an equity position in the said companies. 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 Mining Maven content, is expressly prohibited without the prior written consent of Mining Maven. However, linking directly to the Mining Maven blog is permitted and encouraged.</span><br />
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<span style="font-size: x-small;"><span href="http://purl.org/dc/dcmitype/InteractiveResource" property="dc:title" rel="dc:type" xmlns:dc="http://purl.org/dc/elements/1.1/">mining maven content</span> by </span><a href="http://www.miningmaven.com/" property="cc:attributionName" rel="cc:attributionURL" xmlns:cc="http://creativecommons.org/ns#"><span style="font-size: x-small;">mining maven</span></a><span style="font-size: x-small;"> is licensed under a </span><a href="http://creativecommons.org/licenses/by-nc-nd/2.0/uk/" rel="license"><span style="font-size: x-small;">Creative Commons Attribution-Non-Commercial-No Derivative Works 2.0 UK: England & Wales License</span></a><span style="font-size: x-small;">. Permissions beyond the scope of this license may be available at </span><a href="http://www.miningmaven.com/" rel="cc:morePermissions" xmlns:cc="http://creativecommons.org/ns#"><span style="font-size: x-small;">http://www.miningmaven.com</span></a><span style="font-size: x-small;">. Copyright © miningmaven 2010</span></div>MiningMavenhttp://www.blogger.com/profile/17207841279463670586noreply@blogger.comtag:blogger.com,1999:blog-4386900639784753639.post-90896881835023193912010-04-22T23:31:00.000-07:002010-04-23T11:00:29.461-07:00Goldstone Resources: Q&A with Exploration Director, Dr Hendrik Schloemann<div align="justify" class="separator" style="clear: both; text-align: center;">
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<strong>We have been monitoring <a href="http://bit.ly/9AZIO4">Goldstone Resources</a> (AIM:GRL) very closely in recent weeks. After emerging from a difficult few years the company has recently morphed into a pure gold exploration company with some territory in the most highly prospective areas of the world.</strong></div>
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By highly prospective we are talking about <a href="http://bit.ly/bZu9r7">Goldstone’s two projects in Ghana and a project in Senegal.</a> In all three cases the projects are in known gold exploration and mining zones and, notably, all three are located close to a number of multi-million ounce gold projects.</div>
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More importantly, in the case of the <a href="http://bit.ly/8Y6xQC">Homase</a> licence in Ghana, the company also has a project previously drilled extensively a few years ago, the data for which the company was able to acquire with the project. This has enabled Goldstone to develop a <a href="http://bit.ly/bt2gAl">JORC</a> compliant resource which it announced to the market yesterday (click <a href="http://bit.ly/blUG0S">here</a> to view).</div>
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We contacted the Exploration Director, <a href="http://bit.ly/dh5MT2">Dr Hendrik Schloemann</a> with a few questions and give him the opportunity to expand on todays news for the benefit of investors. </div>
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Here's what he had to say:<br />
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MM: Can you expand a little on the significance of today's JORC announcement? <br />
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<span style="color: #660000;">HS:We have been pleasantly surprised by the fact that 81% of the resource is in the indicated and measured categories. The higher valuation and measure of confidence ascribed to such a resource as opposed to a majority inferred resource is not something we expected at this early stage. What’s interesting is that it appears that the market does not understand the different values ascribed to the categories and the measure of confidence one can assume for a measured resource as opposed to an inferred resource. </span><br />
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MM: What do these results contribute to your understanding of the resource? <br />
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<span style="color: #660000;">HS:The fact that 81% of the resource was classified in the indicated and measured categories and that the ore is within 200 meters of the surface indicates that an enlarged resource can potentially be exploited by open pit mining methods. Before we however start to think of scoping studies we would have to upgrade the resource to at least 600,000 ounces or more. Given the obvious exploration targets below the present resource and along strike, this is a realistic aim. Under the pit high grade ore shoots were identified and, following the geological Obuasi model where present day mining activities have reached a depth of close to 2000m, these shoots are likely to extend to larger depths. The continuation of the mineralisation along strike is indicated by a gold in soil anomaly. Both targets will be the focus of future exploration. </span><br />
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MM: What does the planned Homase exploration programme entail and what is the broad timetable for completion? <br />
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<span style="color: #660000;">HS:The first exploration step will an airborne geophysical survey (subject to board approval) which is suitable to survey zones of higher conductivity in the rocks below far below the surface. One has to understand that the mineralised rocks at Homase are more conductive then than other rocks in the area. Therefore the survey will allow us to see to what extent and where the high grade ore shoots continue to depth. Drilling will be targeted at higher conductivity zones which connect to known high grade ore shoots close to surface and will comence this year.</span><br />
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MM. Is Homase the priority for Goldstone Resources and to what extent are you planning to conduct exploration at Manso Amenfi (Ghana) and Sangola (Senegal)? <br />
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<span style="color: #660000;">HS:Homase currently is our flag ship project and we’d concentrate a lot of attention to it but at the same time we believe that Manso Amenfi and Sangola are extremely exciting prospects that beg to be worked on. Both these projects would require, comparatively speaking, less funds for exploration but could yield early indications of prospectivity</span>.<br />
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<strong>To download the latest analyst research note on Goldstone Resources, click</strong><a href="http://bit.ly/bJw4MD"><strong> here</strong></a><br />
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<span style="font-size: x-small;">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 are those of the author and unless otheriwise stated, should not be construed as being made on behalf of any featured Company. From time to time Mining Maven principals may or may not take an equity position in the said companies. </span></div>
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<span style="font-size: x-small;">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. </span></div>
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<span style="font-size: x-small;">Copyright © miningmaven 2010</span></div>MiningMavenhttp://www.blogger.com/profile/17207841279463670586noreply@blogger.comtag:blogger.com,1999:blog-4386900639784753639.post-38396473647757081692010-04-09T00:36:00.000-07:002010-04-09T00:48:23.377-07:00Range Resources PLC: Q&A follow up<a href="http://bit.ly/ag2hQt" imageanchor="1" style="clear: right; cssfloat: right; float: right; margin-bottom: 1em; margin-left: 1em;"><strong><img border="0" src="http://bit.ly/ag2hQt" wt="true" /></strong></a><br />
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<strong>Mining Maven notes the latest update from Range Resources (click <a href="http://www.londonstockexchange.com/exchange/prices-and-news/news/market-news/market-news-detail.html?announcementId=10442142">here</a> to view). Oil and Gas exploration is not, as they say, for widows and orphans; but as the story unfolds we continue to see a strong business model developing.</strong></div>
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We recently conducted an open Q&A session with Range Resources (AIM:RRL, ASX:RRS) where readers were invited to put their questions to the Company. (click <a href="http://miningmaven.blogspot.com/2010/02/range-resources-q-session-with-pete.html">here</a> to view). The session generated a high level of interest and helped provide investors with some useful information regarding the company’s activities. </div>
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With so much expected to be happening at Range Resources, investors are no doubt keen to seek a more in-depth understanding on the progress being made. In this respect, there have recently been a number of material developments. </div>
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The Texan discovery is now generating sales through the company’s 25% stake in the project, thus the progression to oil and gas producer status continues. The successfully completed rights issue, combined with existing funds will enable the company to progress its Georgian oil and gas projects and its flagship Puntland interests, which is targeting multi billion barrel targets in Puntland, Northern Somalia.</div>
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Lots to talk about, and to assist investor discussions, we felt it would be a good time to fire across a few quick questions to Pete Landau, Executive Director of Range Resources. It appears we timed our enquiries well, coinciding as they do with yesterdays update.</div>
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So here are the questions Mining Maven sent to Range Resources, together with their answers. Thanks to Pete Landau for participating once again! </div>
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Note: You will come across some technical terminology in this and other related articles. If you would like to research technical terms further, a good starting point is <a href="http://oilgasglossary.com/">http://oilgasglossary.com/</a> </div>
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<strong><span style="font-size: large;">Texas:</span></strong></div>
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<strong>MM:</strong> With regard to the existing Smith1 well can you explain why you are proposing to fracture stimulate and comingle the two zones and what this process entails? Will fracturing and comingling help improve the flow rates? Do you have any ultimate flow rate targets, in this regard, from Smith1 well? </div>
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<strong><em><span style="color: #20124d;">PL: Yes - ultimate target is between 9-11mmcf per day and 650 - 950 bbls per day - fracing and opening up zones are pretty standard procedures.</span></em></strong></div>
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<strong>MM:</strong> You are planning to drill additional wells within the licence area. How likely is it that additional wells be situated in areas with gas and oil? </div>
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<strong><em><span style="color: #20124d;">PL: The second well will be an appraisal well located approximately 700m from the Smith #1. The well is expected to add reserves and production while helping to delineate the overall size of the reservoir.</span></em></strong> </div>
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<strong><span style="font-size: large;">Georgia:</span></strong> </div>
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<strong>MM:</strong> Could you briefly explain how drill targets are identified from the seismic data? Is this a desktop exercise or is this combined with on-site work in the field? </div>
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<strong><em><span style="color: #20124d;">PL: A combination of everything we have data wise to date - historical work (wells, geochem etc) and now the processed and interpreted seismic (when available Q2) - no more "on-site" work is required.</span></em></strong> </div>
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<strong>MM:</strong> How attractive is Georgia as a location for investment and, if this was an option you chose, how would you go about identifying suitable farm-in partners? Would this be primarily through existing connections or would you consider other means such as opening a data-room for third parties to consider?</div>
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<strong><em><span style="color: #20124d;">PL: Already at least 5 other oil and gas companies operating in Georgia (producing). If the oil potential is demonstrated through the seismic process - farm in partners will be available mostly on the basis on how good the oil potential is (as opposed to Georgia as an attractive investment location). PSA terms are very reasonable and the country holds multi billion dollar pipeline infrastructure already.</span></em></strong> </div>
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<strong><span style="font-size: large;">Puntland:</span></strong> </div>
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<strong>MM:</strong> We note that the first Puntland well is due to be drilled in Summer 2010. We understand there are various preparatory stages leading up to spudding a well. Could you briefly summarise the key stages? Will you be able to provide updates to market during the preparatory process and also after spudding, on a similar basis to that provided by the company for Smith1 drilling? </div>
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<strong><em><span style="color: #20124d;">PL: Stages will include: </span></em></strong></div>
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<strong><em><span style="color: #20124d;">- confirmation of drilling contractor and tying up of associated logistical support; </span></em></strong></div>
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<strong><em><span style="color: #20124d;">- rig mobilisation;</span></em></strong></div>
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<strong><em><span style="color: #20124d;">- delivery of equipment into Puntland;</span></em></strong></div>
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<strong><em><span style="color: #20124d;">- site / camp establishment;</span></em></strong></div>
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<strong><em><span style="color: #20124d;">- spudding of well etc .</span></em></strong></div>
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<strong><em><span style="color: #20124d;">We will try and provide as comprehensive updates as possible, but with Africa Oil as operator we will have to take our lead from them.</span> </em></strong></div>
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<strong>MM</strong>: Could you briefly explain the process you are following to secure partners for the Puntland offshore programme?</div>
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<strong><em><span style="color: #20124d;">PL: First and foremost get agreement from the government on offshore psa terms and conditions. Once in place can then move to a list of potential partners (many already briefed and have expressed interest) with terms sheet and programme regarding stage 1 seismic program on targeted areas</span></em></strong> </div>
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We would be most interested to receive feedback from readers, including any aspects you feel it would be good to cover in future articles etc. Please send these to <a href="mailto:info@miningmaven.com">info@miningmaven.com</a></div>
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<span style="font-size: x-small;">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.</span></div>
<div style="text-align: justify;">
<span style="font-size: x-small;">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.</span></div>
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<span style="font-size: x-small;">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.</span></div>
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<span style="font-size: x-small;">The author holds shares in Range Resources </span></div>
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<span style="font-size: x-small;">Copyright © miningmaven 2009</span></div>
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</div>MiningMavenhttp://www.blogger.com/profile/17207841279463670586noreply@blogger.comtag:blogger.com,1999:blog-4386900639784753639.post-63269651725969294052010-04-07T06:35:00.000-07:002010-04-07T11:06:47.761-07:00Regency Mines: Chairman's comments on Lake Johnstone update<a href="http://bit.ly/bxxeV9" imageanchor="1" style="clear: right; cssfloat: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" height="57" nt="true" src="http://bit.ly/bxxeV9" width="320" /></a><br />
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<strong><a href="http://bit.ly/a3JnDt">Regency Mines</a> (AIM:RGM) announced to the market an exploration update on its Lake Johnstone Greenstone Belt project (click </strong><a href="http://bit.ly/aUpoWn"><strong>here</strong></a><strong> to view). </strong><strong>We took this opportunity to ask Chairman Andrew Bell to expand on this for investors. Here's what he had to say:</strong></div>
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<strong>MM:</strong> Could you expand a little on the significance of today's update on the exploration program at the Lake Johnstone Greenstone Belt. </div>
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<span style="color: #20124d;"><strong>AB:<em> As can be seen from the aerial photographs showing the planned drill locations, these are working farms. There is cover over the whole area, with no rock exposure. It is therefore very different from a lot of the places we are used to exploring. Here, geophysics is the first tool, followed by geochemistry.</em> </strong></span></div>
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<span style="color: #20124d;"><em><strong>But that only gets you so far. Then you have to drill, and only then do you discover whether there is anything there or whether your geophysics has given you false positives – anomalies that are meaningless from our point of view, because they could come for example, in the case of our drilling, from salinity or siltstones. </strong></em></span></div>
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<span style="color: #20124d;"><em><strong>So you don’t initially do a full drill programme, but drill short holes to find out how much cover there is over the rocks, and what rocks they are, as well as, naturally, what they contain. </strong></em></span></div>
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<span style="color: #20124d;"><em><strong>In this case we wanted to test the hypothesis in the south at target 1 that we had the jerdacuttup fault system, trending east-west, on which the Tropicana gold lies, and so the boundary between the yilgarn granites and the Albany-Fraser metamorphics to the south. In the north at targets 3 and (as an afterthought) 2 we wanted to test the hypothesis that the anomaly was in greenstone and potentially associated with nickel mineralisation. </strong></em></span></div>
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<span style="color: #20124d;"><em><strong>At target 1 we encountered the geological boundary as hoped and in ten holes encountered sulphides associated with the Albany-Fraser migmatites, schists and shales. </strong></em></span></div>
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<span style="color: #20124d;"><em><strong>At target 3 we encountered 1 km of greenstones under 30m of cover with some sulphides. The recent airborne geophysics that had hypothesised the extension of the greenstone belt under cover southward to this area seems validated. </strong></em></span></div>
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<span style="color: #351c75;"><em><span style="color: #20124d;"><strong>So now we see what the samples tell us, and then we drill, we expect, more and deeper. Will there be something exceptional from these first phase 1 samples? Odds against. Will there be something worth pursuing? Reasonable odds. So far it looks promising and our geophysics and geology team can feel quite satisfied.</strong></span> </em></span></div>
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<strong>MM</strong>: You noted that the exploration programme successfully completed its objectives, encountering the geologies sought. Could you explain, in simple terms, what geologies were targeted, how these were encountered and how this helps demonstrate the potential mineralisation in the areas targeted?</div>
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<span style="color: #20124d;"><strong>AB:</strong> <strong><em>As stated above, Target 1 was an EM anomaly on a NE-SW strike, which is across elevation and the N-S strike of the greenstone belt. Tropicana 570k to the NE along the Yilgarn Craton margin has SE dipping mineralisation along a gneissic/schist contact. schists can provide this kind of moderately conductive and broad EM target, so as long as we were not picking up a paleaochannel or a siltstone stratigraphy, we were in with a chance. Anglogold to our east has a continuation of our anomaly. </em></strong></span></div>
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<span style="color: #20124d;"><em><strong>The drill lines were designed to drill across any SE dipping structure. Target 3 was on a non-conductive magnetic ultramafic anomaly 7 km long. This all needs to be drilled to crystalline basement, but initial drilling was to test regolith for near surface disseminated cobalt/nickel</strong></em> <em><strong>mineralisation and to test margins for gold/copper. </strong></em></span></div>
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<span style="color: #20124d;"><em><strong>Our geologist commented after conclusion of the drilling: “ if the assay results come back with strong mineralisation a new frontier will be opened up……………...</strong></em></span></div>
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<span style="color: #20124d;"><em><strong>If mineralisation is weak, the geology remains robust and points to a new frontier with a mineralising system carrying sulphides otherwise not expected and that would put the discovery into the realms of jv consideration with a major”. Either way, i call this progress.</strong></em> </span></div>
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<strong>MM</strong>: How much has this work increased your confidence that the license area may host a gold deposit, particularly since referencing the similarities to the nearby <a href="http://bit.ly/asiJ6N">Tropicana JV project</a>, which appears to share a similar structural system? </div>
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<span style="color: #20124d;"><strong>AB:</strong> </span><a href="http://www.anglogold.com/default.htm"><span style="color: #660000;"><strong><em>Anglogold</em></strong></span></a><strong><em><span style="color: #20124d;">, who own</span><span style="color: #660000;"> </span></em></strong><a href="http://bit.ly/asiJ6N"><span style="color: #660000;"><strong><em>Tropicana</em></strong></span></a><span style="color: #20124d;"><strong><em>, have pegged most of the geological boundary along the fault. The new understanding that comes from the Tropicana discovery has led to much excitement and a new exploration paradigm. All the ground is pegged, either by Anglogold, or by Teck, or by the Newmont JV. Except for what we have. We had it for the North-South greenstone belt not for the Tropicana-style potential, but in fact the boundaries of cratons are often fertile exploration ground. This is at the south of the yilgarn; for example, at the north boundary of the yilgarn there is another new exploration model, following </em></strong></span><a href="http://bit.ly/9PKKSy"><span style="color: #20124d;"><strong><em><span style="color: #660000;">Sandfire’s</span> </em></strong></span></a><span style="color: #20124d;"><strong><em>copper discovery at </em></strong></span><a href="http://bit.ly/a3M7xW"><span style="color: #660000;"><strong><em>Degrussa</em></strong></span></a><span style="color: #20124d;"><strong><em><span style="color: #660000;">.</span> </em></strong></span></div>
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<strong><em><span style="color: #20124d;">We like also that our position is just west of the western junction of the two major East-West faults that bound the Albany-Fraser metamorphic zone – which mirrors the position of the Tropicana discovery, to the East of the eastern junction of these faults. Perhaps this is a coincidence, of course. But establishing that we have exactly the right rocks, and exactly the right geological boundary, running through our license is a great positive.</span> </em></strong></div>
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<strong>MM:</strong> Could you also expand a little on the significance of references to the proximity to <a href="http://bit.ly/cSMzAA">Ravensthorpe</a> site. </div>
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<span style="color: #20124d;"><strong>AB:</strong> <strong><em>The area is one known to host significant nickel deposits, of more than one type.</em></strong> </span></div>
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<strong>MM:</strong> Could you outline the next steps in the exploration program at Lake Johnstone. </div>
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<span style="color: #660000;"><span style="color: #20124d;"><strong>AB:</strong> <strong><em>We will continue, we expect, with phase 2 drilling. If something exceptional appears, it may speed things up. We will also be looking to explore our very prospective area at Kambalda, an important nickel mining centre where we picked up an old mining license next to a producing mine</em></strong></span><strong><em>.</em></strong></span></div>
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<strong>MM:</strong> The price of nickel appears to be gaining strength. Do you see this as a continuing trend and if so how could this impact the economics of Regency's nickel projects going forward? </div>
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<span style="color: #20124d;"><strong>AB:</strong> <strong><em>Nickel is one of the most sensitive metals. It seems to over-correct in both directions. A year ago people were negative about platinum: the auto industry was on its knees, recovery would be slow, etc. Now people could hardly be more bullish, short and long-term. </em></strong></span></div>
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<span style="color: #20124d;"><strong><em>Similarly a few months ago with nickel. No recovery in 2010; maybe a small recovery in 2011. How wrong they were. Chinese stainless steel demand is rising. Two thirds of nickel goes to stainless steel, which i call the middle class metal, because you use it in fridges and aircons and motorbikes and cars: everything an urban dweller uses. China will continue to see up to 25m new people joining the urban economy each year, and people continuing to save and buy consumer products in a highly aspirational society. Nor should the other highly populous developing societies of Asia and South America be ignored: they are following the same path. </em></strong></span></div>
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<span style="color: #20124d;"><strong><em>Nickel will be a continuing bull market: I am convinced of it. The basic supply and demand situation is favourable, and we like this metal particularly and fashion will find us. When it comes to laterites and Mambare, we want to steal a march over other people by focussing on technology, so that we can be a leader. But shareholders already know what we are doing there. We will speak more of this soon, but we wanted shareholders to focus for a moment on what else we have. soon we will be encouraging them to focus on our nickel at Kambalda too.</em></strong></span></div>
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<strong>MM:</strong> Finally how do you view the development potential of Lake Johnstone when compared with the company's lateritic nickel project at Mambare?</div>
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<span style="color: #20124d;"><strong>AB</strong>: <strong><em>The problem with sulphides is a different one: finding them! With laterites, like Mambare, we know they are there, and the problem is delineating, measuring, selecting the best zones, looking at the cobalt levels for potential credits, and finding suitable metallurgy. If we find nickel at Lake Johnstone, or quite possibly gold, it will be time to think of development potential. </em></strong></span></div>
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<span style="color: #20124d;"><strong><em>Perhaps the issue will be overtaken by a gold discovery, and we will all be talking about the development potential of that. </em></strong></span></div>
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<span style="color: #20124d;"><strong><em>Meanwhile, yes, the potential of Mambare is so large that it cannot easily be compared with anything else. We have to do more drilling to extend resource, and find the really high-grade pockets, and we have to advance on the corporate front. </em></strong></span></div>
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<strong><span style="font-size: large;">Project Area and Structural Map graphics</span></strong></div>
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgI-q3fKP2YdQH07W5dq7rIPsLbRkQ8mZ3nAFiu1UmYVrH-gdzW6lQQWF_84i_LODE8zhIoGkuaQMrIq-b_ewEs3yL40hPEQb2o0MbJwDfDmUSZDsCfNn-xeJlw7tAGal5jEswGheVqPcI/s1600/rgm+lake+johnstone+1.jpg" imageanchor="1" style="clear: left; cssfloat: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" height="320" nt="true" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgI-q3fKP2YdQH07W5dq7rIPsLbRkQ8mZ3nAFiu1UmYVrH-gdzW6lQQWF_84i_LODE8zhIoGkuaQMrIq-b_ewEs3yL40hPEQb2o0MbJwDfDmUSZDsCfNn-xeJlw7tAGal5jEswGheVqPcI/s320/rgm+lake+johnstone+1.jpg" width="283" /></a> <a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhM2jW83GWouIfXwwII_YjzLQ4YQ9msSRARrD_wGSmQo_EG6YjBX927j9MsrtKi1_IZVaZRWSz-UbyKBCc9nVgIdIw8EEa-_BgBhfo6PO1m-bxaNz_YeNBd77mbjyeoO0Ue588bweIjFYM/s1600/rgm+lake+johnstone+2.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="320" nt="true" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhM2jW83GWouIfXwwII_YjzLQ4YQ9msSRARrD_wGSmQo_EG6YjBX927j9MsrtKi1_IZVaZRWSz-UbyKBCc9nVgIdIw8EEa-_BgBhfo6PO1m-bxaNz_YeNBd77mbjyeoO0Ue588bweIjFYM/s320/rgm+lake+johnstone+2.jpg" width="291" /></a> </div>
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<a href="http://www.rns-pdf.londonstockexchange.com/rns/7438J_1-2010-4-6.pdf">http://www.rns-pdf.londonstockexchange.com/rns/7438J_1-2010-4-6.pdf</a></div>
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<br />
<a href="http://www.rns-pdf.londonstockexchange.com/rns/7438J_2-2010-4-6.pdf">http://www.rns-pdf.londonstockexchange.com/rns/7438J_2-2010-4-6.pdf</a><br />
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<strong><span style="font-size: large;">Maps of Magnetic Image</span></strong><br />
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Target 1<br />
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<a href="http://www.rns-pdf.londonstockexchange.com/rns/7438J_3-2010-4-6.pdf">http://www.rns-pdf.londonstockexchange.com/rns/7438J_3-2010-4-6.pdf</a><br />
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Target 2<br />
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<a href="http://www.rns-pdf.londonstockexchange.com/rns/7438J_4-2010-4-6.pdf">http://www.rns-pdf.londonstockexchange.com/rns/7438J_4-2010-4-6.pdf</a><br />
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Target 3<br />
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<a href="http://www.rns-pdf.londonstockexchange.com/rns/7438J_5-2010-4-6.pdf">http://www.rns-pdf.londonstockexchange.com/rns/7438J_5-2010-4-6.pdf</a><br />
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<span style="font-size: x-small;">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.</span></div>
</div>
<div style="text-align: justify;">
<span style="font-size: x-small;">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.</span></div>
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<span style="font-size: x-small;">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.</span></div>
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<span style="font-size: x-small;">Copyright © miningmaven 2010</span></div>MiningMavenhttp://www.blogger.com/profile/17207841279463670586noreply@blogger.comtag:blogger.com,1999:blog-4386900639784753639.post-38081240816574932752010-03-31T14:45:00.000-07:002010-03-31T16:47:16.341-07:00Red Rock Resources: Half Year Results<div style="text-align: justify;">
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<strong>Red Rock Resources has released its eagerly anticipated interim statement and accounts for the period ending 31st December 2009 (click <a href="http://bit.ly/cwo3uy">here </a>to view).</strong></div>
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We expected them to be good, so what were we looking for? Specifically, enhanced valuations in the investment portfolio and a positive forward-looking statement from the Chairman – Andrew Bell did not disappoint on either count! In fact he even produced a nice cherry for the cake, with the expectation of a maiden dividend, subject to all going to plan between now and the Company's year end, in June 2010. </div>
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Shareholders will know that Red Rock Resources is growing its business by developing raw ground into potentially valuable exploration assets, generally farmed out into new listed vehicles in which the company then retains a material stake. These holdings are in quoted companies and therefore have a readily quantifiable market value. </div>
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As value investors, we will always keep a keen eye on the value of such holdings and at this stage in the game, that is what’s driving value. </div>
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But as impressive as the accounts were, they only reflect valuations on investments at the half year stage, as of 31st December 2009. Yes, that’s just three months ago, but at the pace this business is growing, three months might as well be three years. So what about those (rather significant) events that occurred after the balance sheet date? </div>
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In his statement Andrew Bell makes reference to post balance sheet events and the marked improvement in valuations. So we decided to take a closer look at the status of “available for sale financial asset’s” at the start and end of the period, and then lined them up against the current state of play. Here’s how it looks:</div>
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiMpq1DJD-_dDGXJ8gcH8XDJuIzVJFe4i39bbHEiHt8T3TAw6_NZpivuvYfyCKwIf6-YNnVGZ-HtD5-Co7h6g919e9pR8R9PYHUbCr6mBJWwGY3vdyu81K1Asap8Dyy7vhKfUrOMiu8pr8/s1600/RRR+chart.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="384" nt="true" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiMpq1DJD-_dDGXJ8gcH8XDJuIzVJFe4i39bbHEiHt8T3TAw6_NZpivuvYfyCKwIf6-YNnVGZ-HtD5-Co7h6g919e9pR8R9PYHUbCr6mBJWwGY3vdyu81K1Asap8Dyy7vhKfUrOMiu8pr8/s640/RRR+chart.jpg" width="640" /></a></div>
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Red Rock’s main tradable holding consists of some 93 million shares in Jupiter Mines (ASX:JMS). </div>
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With its recently announced transformational deal to acquire 49.9% of the Tshipi Kalahari Manganese project, Jupiter has impressed the markets. As noted, in the interim report, the share price has risen from 19.5 cents at the end of December 2009 to 28.5 cents as of today – a rise of some 46%, worth an additional £5.1 million on Red Rock’s Net Assets Value </div>
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Can this rate of growth continue? The company would not rule out further rises, as Jupiter bulks up to become a major player in the steel feed business. Quoting from the Chairman’s statement:</div>
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<em><strong>“We support the transaction, which has the potential to make Jupiter one of the world's dominant manganese producers and though it is the first substantial transaction by Jupiter, we believe and hope that it will not be the last."</strong></em></blockquote>
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So back to valuations and although we can’t be absolutely precise here, (as we don’t have access to the detailed balance sheet analysis), at today’s quoted prices we can extrapolate an approximate value for ‘available for sale financial assets’ totalling some £17.4 million, worth around 3p per Red Rock share. So the value of the tradeable assets underpin the current share price and then some.<br />
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Any uplift in the Jupiter share price would feed through to Red Rock’s NAV at the rate of AU$930k per point, Resource Star at a more modest AU$136k and Cue Resources at CA$98.9k.</div>
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So as value investors we are really quite comfortable with the investment case as it stands, and lets not forget that at current prices, you also get a stake in the 1.2m ounce gold resource at Migori for free! </div>
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<span style="font-size: x-small;">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. </span></div>
<div style="text-align: justify;">
<span style="font-size: x-small;">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.</span></div>
<span style="font-size: x-small;"></span><br />
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<span style="font-size: x-small;">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.</span><br />
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<span style="font-size: x-small;">Copyright © miningmaven 2010</span></div>MiningMavenhttp://www.blogger.com/profile/17207841279463670586noreply@blogger.comtag:blogger.com,1999:blog-4386900639784753639.post-88746935010373540872010-03-25T07:49:00.000-07:002010-03-25T10:33:59.198-07:00Ariana Resources: New Exploration Targets<div class="separator" style="clear: both; text-align: center;">
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<strong>This morning, Ariana announced geophysical test results from their Kisiltepe project in Turkey (click </strong><a href="http://bit.ly/9e95Uz"><strong>here</strong></a><strong> to view). We took the opportunity to put a few quick questions to MD Kerim Sener. Here's what he had to say:</strong> </div>
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<strong>MM</strong>: Can you expand a little on the significance of today's news?</div>
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<span style="color: #660000;"><strong>KS</strong>:This news represents an expansion of our geoscientific knowledge at the Kiziltepe prospect. In particular it has confirmed that there is potential for the discovery of new vein systems in a region of the prospect that was hitherto underexplored. This particular area had no veins outcropping but hosted a region of extensive quartz float, that could not be explained by surface erosion and transport. There was no other indication in this area for buried vein systems, partly due to extensive ignimbrite cover in the northwest and thin alluvial cover in the southeast, concealing any existing veins. The only way to test the geophysical results is by drilling, which is starting with immediate effect. </span></div>
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<strong>MM</strong>:What do these results contribute to your understanding of the resource and what do they mean in the context of the proposed JV. </div>
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<span style="color: #660000;"><strong>KS</strong>:The results have confirmed that the Kiziltepe prospect potentially comprises a much more extensive vein network than considered at the time of its acquisition. Obviously drilling must be completed before we know the extent of any potential resource increase through the identification of new vein systems. With regards the JV it was important to complete this geophysical survey before the feasibility-level planning for the siting of mine infrastructure such as the processing plant, tailings dam and waste rock dump. We certainly wouldn't want to site the plant over a potential buried vein!</span> </div>
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<strong>MM</strong>.Have the results added to the potential scale of the exploration area?</div>
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<span style="color: #660000;"><strong>KS</strong>:Absolutely, we have to wait on our drilling results but the potential is now there for the further exploration of other anomalous zones in the region in addition to those visible in outcrop.</span></div>
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<strong>MM</strong>:What does this drill programme entail and what is the broad timetable for completion?</div>
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<span style="color: #660000;"><strong>KS</strong>:We intend to drill a fenceline of short holes in the area of coincident anomalous rock chip geochemistry (up to 21.1 g/t Au) and high resistivity. This fenceline is designed to identify in-situ quartz veins and/or their related alteration, to confirm the presence of a vein system at depth. At a later stage, and assuming the results of this first phase are positive, we would need to follow up with deeper exploratory holes. Another area which will be drill tested now is the point at which the Arzu and Derya structures disappear through ignimbrite cover rocks. This area shows coincident resistivity and intermittent chargeability anomalies in geophysics and other geological evidence suggests the presence of a buried vein system.</span></div>
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<strong>MM</strong>.How does this additional information add to your confidence in the viability for Kiziltepe to be a source for production, going forward?</div>
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<span style="color: #660000;"><strong>KS</strong>:Within the margins of error acceptable in a scoping study we are already confident in the viability of the resource. The scoping study was undertaken independently of Ariana by a reputable international firm with prior experience in mining projects in Turkey and it yielded positive results. The new geophysics adds an element of further belief that the Kiziltepe resource will only continue to grow with further drill testing. </span></div>
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To subscribe to Ariana Resources company updates, click <a href="http://bit.ly/9SeJxD">here</a></div>
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To view the latest 2010 presentation from Ariana , click <a href="http://bit.ly/bKW2Mz">here</a><br />
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To view Kerim Sener's Mining Journal feature on mining in Turkey, click <a href="http://bit.ly/cK8XBW">here</a><br />
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<strong>Previous Miningmaven articles on Ariana Resources</strong><br />
<br />
27th February <a href="http://miningmaven.blogspot.com/2010/02/ariana-resources-piece-of-turkey-in.html">A Piece of Turkey in the heart of Mayfair!</a><br />
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3 January 2010 <a href="http://miningmaven.blogspot.com/2010/01/ariana-resources-psst-fancy-gold-mine.html">Ariana Resources: Buy me a Gold Mine in Turkey!</a> <br />
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30 January 2010 <a href="http://miningmaven.blogspot.com/2010/01/ariana-resources-going-for-gold-in.html">Ariana Resources: Going for Gold in "Turnkey" Turkey </a><br />
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10 February 2010 <a href="http://miningmaven.blogspot.com/2010/02/ariana-resources-lets-get-this-show-on.html">Ariana Resources: Lets get this show on the road!</a> <br />
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18 February 2010 <a href="http://miningmaven.blogspot.com/2010/02/ariana-resources-limbering-up-for-main.html">Ariana Resources: Limbering up for the Main Event!!</a> <br />
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<span style="font-size: x-small;">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.</span><br />
<span style="font-size: x-small;">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.</span><br />
<span style="font-size: x-small;"><br /></span><br />
<span style="font-size: x-small;">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.</span><br />
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<span style="font-size: x-small;">Copyright © miningmaven 2010</span>MiningMavenhttp://www.blogger.com/profile/17207841279463670586noreply@blogger.comtag:blogger.com,1999:blog-4386900639784753639.post-42558102558069644942010-03-23T04:57:00.000-07:002010-03-23T05:42:48.671-07:00Webcast: "The Global Infrastructure Opportunity"<div style="border-bottom: medium none; border-left: medium none; border-right: medium none; border-top: medium none; text-align: justify;">
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<span style="color: #660000; font-size: large;"><strong>Thursday 25th March 4.00pm UK time</strong></span></div>
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<strong><a href="http://bit.ly/aFsKI2">US Global Investors</a>, the progressive investment firm headed up by acclaimed fund manager <a href="http://bit.ly/cFZdS5">Frank E Holmes</a>, is holding a free to access web event on <em>Thursday 25th March</em> dubbed "The Global Infrastructure Opportunity". </strong><br />
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If you are serious about investing in the resource sector, you wont want to miss this event. Research can be time consuming, but this accesible webcast will fast track you to some of the smartest minds in the sector. We therefore urge all our readers to take advantage of this opportunity. It starts at 12.pm Eastern Time (4pm UK time), but you will need to sign up in advance (to go to the sign up page click <a href="http://bit.ly/awpwiO">here</a>) </div>
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<em><span style="color: #660000; font-size: large;">"There are 6.7 billion people living on the planet today, and the population is growing. Growth in emerging markets and the shift of population to urban centres is creating greater demand for resources, services and infrastructure.The estimated needs for infrastructure spending are staggering—trillions of dollars across the world to develop water, energy, transportation and telecommunication infrastructure.</span></em></div>
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<em><span style="color: #660000; font-size: large;">How can you take advantage of these infrastructure investment opportunities?</span></em></div>
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<em><span style="color: #660000; font-size: large;">U.S. Global Investors invites you to participate in this engaging free webcast discussion with members of the portfolio management team for our infrastructure fund, the Global MegaTrends Fund. Also joining the webcast will be special guests from Macquarie North America, a firm that specializes in infrastructure advisory services."</span></em></div>
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<span style="font-size: x-small;">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.</span></div>
<div style="text-align: justify;">
<span style="font-size: x-small;">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.</span></div>
<br />
<div style="text-align: justify;">
<span style="font-size: x-small;">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.</span></div>
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<span style="font-size: x-small;">Copyright © miningmaven 2010</span></div>MiningMavenhttp://www.blogger.com/profile/17207841279463670586noreply@blogger.comtag:blogger.com,1999:blog-4386900639784753639.post-39563123459182521992010-03-19T03:25:00.000-07:002010-03-19T08:58:33.212-07:00Jupiter Mines: CNBC speculative buy - the cheapest way in!!<div style="text-align: justify;">
<a href="http://bit.ly/bjU0gV">Jupiter Mines</a> was tipped today as a speculative buy on CNBC today. <a href="http://bit.ly/d4p6Hs">Red Rock Resources</a> holds 93 million shares in Jupiter Mines, worth AU$28m (£16.8m). Red Rock's entire market cap is currently £12.7m. As our American friends would say - do the math! </div>
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<span style="font-size: x-small;">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.</span><br />
<span style="font-size: x-small;">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.</span><br />
<span style="font-size: x-small;"><br /></span><br />
<span style="font-size: x-small;">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.</span><br />
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<span style="font-size: x-small;">Copyright © miningmaven 2009</span>MiningMavenhttp://www.blogger.com/profile/17207841279463670586noreply@blogger.comtag:blogger.com,1999:blog-4386900639784753639.post-17174138770812934472010-03-15T04:23:00.000-07:002010-03-21T04:12:08.571-07:00Red Rock Resources: Migori Update<a href="http://bit.ly/9AtDIU" imageanchor="1" style="clear: right; cssfloat: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" height="58" src="http://bit.ly/9AtDIU" vt="true" width="320" /></a><br />
<strong>We took the opportunity to put a few quick questions to Andrew Bell regarding todays update (click <a href="http://bit.ly/clZP15">here</a> to view). Here is what he had to say.</strong><br />
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<span style="font-size: large;">Drilling Campaign Update:</span></div>
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MM.Can you give our readers a brief overview of today’s <a href="http://bit.ly/clZP15">update on Migori</a>? </div>
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<span style="color: blue;">AB. The update is about unfinished business from the old drilling, and some work in progress. This just says steady as she goes, and the tailings info is coming.</span></div>
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MM. Were the Kansai Drilling (2007) assay results in line with your expectations and what will this information contribute to your understanding of the resource?</div>
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<span style="color: blue;">AB.We need the re-analysis of the old work to begin incorporating this data in a go-forward plan. An experienced ex-Newmont gold geo who knows the project will be available after Easter – we can easily spend money going off at half cock but the more time on analysis, the better, and the more expert the analysts, the better. These holes and other post-2004 holes are not incorporated in the resource yet. So there is built-in upside</span>.</div>
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MM. You have noted that the data is being reviewed and analysed with the intention of generating a revised NI43-101 compliant resource estimate. How is this going to proceed now.</div>
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<span style="color: blue;">AB.We need to keep tight control of this project. The original 43-101 writer has died – we want the new gold geo to assist the new person at the same firm. But we are starting talking. The key is to reassemble carefully all the backing information so we can build on what we have.</span></div>
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MM. Your regional prospecting seems to have identified some interesting targets. Could you elaborate on the prospective value of the new targets? </div>
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<span style="color: blue;">AB.There is huge potential especially in the east. We find so much old info on this and we have over 60km here so we need good people to control the follow up. We cannot charge full speed at every prospect, but we think we have isolated 2 priorities. If we can just show BIF ‘potential’ that is enough for now.</span></div>
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MM.Would you say the latest results add to your confidence in the case for production at Migori ? </div>
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<span style="color: blue;">AB.Yes. We need to get a handle on the open pittable resource and on the trade-off between more work on the existing areas and work on prospective new resource areas. We need to make sure we conduct exploration in such a way that we never ‘disappoint’ with a set of bad results. Our new geo joining us who has written on the area before is quite confident.</span> </div>
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To view Migori simplified geology map click <a href="http://bit.ly/bia40T">here</a><br />
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To see latest Value Proposition click <a href="http://miningmaven.blogspot.com/2010/01/red-rock-resources-update-so-what-have.html">here</a><br />
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Go to <a href="http://miningmaven.blogspot.com/p/videos.html">Videos</a> to see the recent interview with Andrew Bell</div>
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<span style="font-size: x-small;">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 blog are those of the author and should not be construed as being made on behalf of any featured Company.</span></div>
<div style="text-align: justify;">
<span style="font-size: x-small;">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.</span></div>
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<span style="font-size: x-small;">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.</span></div>
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<span style="font-size: x-small;">The Author holds shares in Red Rock Resources PLC</span></div>
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<span style="font-size: x-small;">Copyright © miningmaven 2010</span></div>MiningMavenhttp://www.blogger.com/profile/17207841279463670586noreply@blogger.comtag:blogger.com,1999:blog-4386900639784753639.post-60516743596541335192010-03-13T09:24:00.000-08:002010-04-20T14:30:16.413-07:00May We Recommend??<div class="separator" style="clear: both; text-align: center;">
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<strong>In the wake of the Global Financial Crisis, a plethora of books have hit the market. In time, some may well turn out to be seminal pieces, though most would argue that it is still too soon to tell. </strong></div>
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One book which has certainly recieved much critical acclaim is <a href="http://astore.amazon.co.uk/miningmaven-21/detail/0691142165">This Time is Different: Eight Centuries of Financial Folly</a> by Carmen M. Reinhart & Kenneth Rogoff. We have now included it in <a href="http://astore.amazon.co.uk/miningmaven-21/detail/0691142165">The Miningmaven Book Store</a> at Amazon, and they are running a special price promotion on it, so well worth a look!</div>
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Here's how the sleeve reads:</div>
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Throughout history, rich and poor countries alike have been lending, borrowing, crashing--and recovering--their way through an extraordinary range of financial crises. Each time, the experts have chimed, "this time is different"--claiming that the old rules of valuation no longer apply and that the new situation bears little similarity to past disasters. This book proves that premise wrong. Covering sixty-six countries across five continents, This Time Is Different presents a comprehensive look at the varieties of financial crises, and guides us through eight astonishing centuries of government defaults, banking panics, and inflationary spikes--from medieval currency debasements to today's subprime catastrophe. </div>
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Carmen Reinhart and Kenneth Rogoff, leading economists whose work has been influential in the policy debate concerning the current financial crisis, provocatively argue that financial combustions are universal rites of passage for emerging and established market nations. The authors draw important lessons from history to show us how much--or how little--we have learned. </div>
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Using clear, sharp analysis and comprehensive data, Reinhart and Rogoff document that financial fallouts occur in clusters and strike with surprisingly consistent frequency, duration, and ferocity. They examine the patterns of currency crashes, high and hyperinflation, and government defaults on international and domestic debts--as well as the cycles in housing and equity prices, capital flows, unemployment, and government revenues around these crises. While countries do weather their financial storms, Reinhart and Rogoff prove that short memories make it all too easy for crises to recur.</div>
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An important book that will affect policy discussions for a long time to come, This Time Is Different exposes centuries of financial missteps.</div>
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<a href="http://astore.amazon.co.uk/miningmaven-21/detail/0691142165" imageanchor="1" style="clear: right; cssfloat: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" src="http://ecx.images-amazon.com/images/I/41ulfUQxZNL._SL210_.jpg" vt="true" /></a></div>
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Having read <a href="http://astore.amazon.co.uk/miningmaven-21/detail/0340839961">Liars Poker</a> by Michael Lewis, (which <em>Punch</em> regards as one of the best business books of all time!) we note he also has a new title out shortly, <a href="http://astore.amazon.co.uk/miningmaven-21/detail/1846142571">The Big Short: Inside the Doomsday Machine </a>which by all acounts is set to be another classic.</div>
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Heres what they have to say.</div>
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"The Big Short" tells a story of spectacular, epic folly. It has taken the world's greatest financial meltdown to bring Michael Lewis back to the subject that made him famous. His international bestseller "Liar's Poker" exposed the greed and carnage of the City and Wall Street in the 1980s; he wrote it as a cautionary tale, but people seem to have read it as a how-to guide. Now, he wants to settle accounts. In this visceral tour to the heart of the financial system, Michael Lewis takes us around the globe and back decades to trace the origins of the current crisis. He meets the people who saw it coming, the people who were asleep at the wheel and the people who were actively driving us all of cliff. How could we have all been so deluded for quite so long? Where did it all start? Was it systemic? Was it avoidable? And who the hell can we blame? Michael Lewis has the answers. No one is better qualified to get to the heart of this labyrinthine story. And no one can make it such an enjoyable ride along the way.</div>
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Finally we thought it might be a good time to re-visit our review of Michael Coulson's <a href="http://astore.amazon.co.uk/miningmaven-21/detail/1905641559">An Insider's Guide to the Mining Sector: How to Make Money from Gold and Mining Shares</a>, which was originally posted in January this year. So if you are new to Miningmaven, or the sector here it is again: </div>
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Whilst engaged as a trainee Chartered Accountant a partner in my firm told me ‘there is no substitute for quality education and training’. How true.</div>
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But then why is it many investors buy and sell shares in Mining and Exploration Companies without really understanding the ins and outs of the commodities involved, the intricacies of exploration or the downright practical difficulty of developing a mine after that blockbuster exploration discovery.</div>
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In truth the reason is quite simple; that’s what investors generally do. For those that buy banking shares how many understand interest rate swaps, complex derivatives and collateralised loans? For those investing in pharmaceutical shares how many fully comprehend the stage I, II and III clinical trials? And for technology shares, how many investors can truly grapple with the complexities of the technology in which their companies are engaged??</div>
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So it stands to reason that a better understanding of the sector could or should place the average investor at something of an advantage to the wider market. And by wider market I include not only the private investor, but many professional investors, brokers and other market participants as well.</div>
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The <a href="http://miningmaven.blogspot.com/">Miningmaven blog</a> is focused on the Private Investor and our mission is to make the sector more accessible to the average investor by providing common sense commentary and sources for additional research. So where would be a good place to start for all PI’s looking to bolster their knowledge of the Mining and Exploration sector? </div>
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We think we may have found the answer in this very easy to read book written by Michael Coulson .</div>
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<strong>Author:</strong></div>
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Michael Coulson has been working with the Mining Sector for over three decades, working within banks and brokers and from 1975 to 1991, producing an annual gold review. His work in recent years has revolved around the provision of independent research for smaller broking outlets who themselves lack the particular in-house expertise.</div>
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<strong>Review:</strong></div>
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This is our first Miningmaven book review so we have decided to look for three essential features in all the titles we identify, namely:</div>
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-Breadth of coverage;<br />
- Ease of reading;<br />
- Tools that investors can use in the markets.<br />
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Coulson’s book scores well in all three areas. Whilst accessible to all, it is clearly written with the novice in mind. He starts with a non-technical industry overview looking at Mining Countries, Major Industrial Metals (e.g Copper, Zinc, Lead, Nickel etc); Precious Metals; Minor Metals (e.g. Cobalt, Tungsten, Magnesium etc) and Non-Metals (i.e. coal and uranium). He explains each metals industrial usage and place in the market and a special section is given over to an analysis of Gold, which with many investors seems to be a key point of focus.</div>
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On top of the commodities and the geopolitical risk of the countries where the exploration and mining is conducted, there is the subject of markets, and Coulson deftly addresses this in a decent review of London, Jo’burg, Sydney, Toronto and New York. No mean feat in just twenty pages!!<br />
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He then moves on to a review of mining shares, covering smaller stocks through to the larger organisations. How to build a portfolio; awareness of stock market cycles; understanding company announcements and how to value mining shares.<br />
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Now that’s all well and good but many investors are aware of a few horror stories and rags-to-riches tales. Here too Coulson doesn’t disappoint where his look at the <a href="http://en.wikipedia.org/wiki/Bre-X">Bre-X scandal</a> and the <a href="http://en.wikipedia.org/wiki/Poseidon_bubble">Poseidon Nickel bubble</a> make compelling reading.<br />
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Wrapping up the book with additional sources of information and a ‘take-away’ ten key points, Coulson delivers a thoroughly engaging and insightful read. Essential for those who are serious about making money from investing in the sector - not to mention the need to avoid a personal financial disaster by making the wrong decisions.<br />
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I keep my copy next to my computer and usually refer to it more than once a day. For around the cost of a one-way trade, it could prove to be one of your better investments for 2010.<br />
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Needless to say you can purchase this title and many more at <a href="http://astore.amazon.co.uk/miningmaven-21">The Mining Maven book store</a>.</div>
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<span style="font-size: x-small;">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 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.</span></div>
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<span style="font-size: x-small;">Copyright © miningmaven 2010</span></div>MiningMavenhttp://www.blogger.com/profile/17207841279463670586noreply@blogger.comtag:blogger.com,1999:blog-4386900639784753639.post-2775156086574185502010-03-07T13:20:00.000-08:002010-03-14T15:25:16.453-07:00Red Rock Resources: Driven by Jupiter!<br />
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<strong>After quite an eventful week in terms of price action, we saw </strong><a href="http://rrrplc.com/"><strong>Red Rock Resources</strong></a><strong> close on Friday at 1.9 –2.15 with heavy trading volumes (13.3m) throughout the day.</strong> </div>
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This was driven in the main by a strong performance by <a href="http://www.jupitermines.com/">Jupter Mines</a> overnight in Australia. It certainly seems that the Tshipi Kalahari manganese story has struck the right cord with the market. </div>
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No need to remind readers that Red Rock hold 93 million shares in Jupiter mines, which puts Red Rock on a mere AU$931k (or £558k in our own devalued currency) per point.</div>
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So last weeks rise in the value of Jupiter Mines shares of 6.5c has added around £3.6m to the value of Red Rock's holding.</div>
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It remains to be seen how far Jupiter will run, or indeed if the current price can be sustained. But as stated in our previous post, this means the company can now look to sell down some of its £16.5m holding (at current price) with impunity. </div>
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This is just one of the scenarios Andrew Bell pointed to in his video interview with us last month (to view click <a href="http://bit.ly/aa83qq">here</a>). He also suggested that he would not wish to sell down the entire stake in Jupiter, preferring to leave more than a little skin in the <a href="http://bit.ly/bf0GH2">Pallinghurst</a> game. </div>
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But where Andrew did hang his hat was in his prediction that the moment even a small proportion of the Jupiter holding is sold, it will unlock the current discount to NAV and people will start to see Red Rock in a different light (23 minutes into the video)!</div>
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Last week also saw the resumption in trading in Resource Star and if Jupiter’s performance was stellar, Resource Star’s could not have been in starker contrast. 18 months of suspension had clearly taken its toll on some investors as the share price fell around 35% before recovering slightly and stabilising on Friday. The value of Red Rocks 13.4m share holding fell by around £450k accordingly. However we expect events to be news driven here in the short term and as Andrew Bell suggests in the interview, there are deals in the pipleine, so we will have to wait and see how the market responds!</div>
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As mentioned in our previous update, we are looking to rework our value proposition on Red Rock to take into account all events to date. However it is clear that much of the action is still unfolding, so its a bit of a moving target right now.</div>
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We therefore felt we would do this more justice by first waiting for the company’s half yearly report, which is expected to be released by the end of the month.</div>
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Aside from the financials where we expect the balance sheet to show a significant uplift in valuation of assets, we will also be looking to see what the Chairman's statement will reveal.</div>
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<span style="font-size: x-small;">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.</span> </div>
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<span style="font-size: x-small;">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.</span></div>
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<span style="font-size: x-small;">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.</span></div>
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<span style="font-size: x-small;">The author owns shares in Red Rock Resources plc.</span></div>
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<span style="font-size: x-small;">Copyright © miningmaven 2010</span></div>MiningMavenhttp://www.blogger.com/profile/17207841279463670586noreply@blogger.comtag:blogger.com,1999:blog-4386900639784753639.post-40510938688493735952010-03-02T08:55:00.000-08:002010-03-21T04:13:35.808-07:00Red Rock Resources: Our Finest Hour!<div align="right" class="separator" style="border-bottom: medium none; border-left: medium none; border-right: medium none; border-top: medium none; clear: both; text-align: center;">
<a href="http://www.rrrplc.com/images/index_r1_c2.gif" imageanchor="1" style="clear: right; cssfloat: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" height="47" kt="true" src="http://www.rrrplc.com/images/index_r1_c2.gif" width="200" /></a><a href="http://www.jupitermines.com/images/header.gif" imageanchor="1" style="clear: right; cssfloat: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" height="22" kt="true" src="http://www.jupitermines.com/images/header.gif" width="200" /></a></div>
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<strong>For the Company's m</strong><strong>anagement and shareholders, Monday the 1st of March 2010 will be remembered as the day a new chapter opened in its development cycle. To borrow from one of Winston Churchill's most famous war time speeches, this marks "the end of the beginning" for <a href="http://www.rrrplc.com/">Red Rock Resources</a>.</strong></div>
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The big news (click <a href="http://bit.ly/d5UUEa">here</a> to see) came from <a href="http://www.jupitermines.com/">Jupiter Mines</a>, (<a href="http://www.google.co.uk/finance?q=ASX%3AJMS">ASX:JMS</a>) the Australian miner in which Red Rock are currently 25% shareholder, announcing their intention to acquire a 49.9% stake in the Tshipi Kalahari Manganese project in South Africa, from <a href="http://bit.ly/bf0GH2">Pallinghurst Resources</a> (JSE: PGL) and their high profile co-investors.</div>
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This deal represents an effective corporate restructuring for Pallinghurst, who, together with their investment partners will end up with around 85% of Jupiters equity. The share-based transaction will be worth approximately A$245m, which will transform Jupiters with exciting opportunities in iron ore and manganese in both Australia and South Africa.</div>
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To view the deal presentation click <a href="http://bit.ly/9ExUvY">here</a></div>
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After the transaction, Red Rocks stake in Jupiter will be reduced to around 6% of the enlarged entity. However this will also leave Red Rock holding the largest independent stake outside of Pallinghurst and their co-investors. </div>
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So why does this deal mark such a seminal event for Red Rock?</div>
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Up till now, the successes of the Company's agressive growth strategy have been largely overshadowed by the ongoing need for funding by way of equity placements. But all that changed on Monday.</div>
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This deal now opens up an early exit route for Red Rock as its joint venture in Jupiter with Pallinghurst is now completed; thus allowing the company to sell down some of its £15m stake (which, by the way is greater than its entire market cap - currently worth over 2.5p per Red Rock share), without impacting on Jupiters market value. </div>
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So with a new route to significant non-dilutive funding available, we expect that long awaited re-rating may shortly be on its way. </div>
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Here is an interview Pallinghurst Chairman Brian Gilbertson gave to Bloomberg TV Asia yesterday. One has to admire his patience, given the Anchor's obvious lack of knowledge of both the company's activities and the sector in general. Why she would feel the need to question him on the Rio Tinto Chinese spy allogations is beyond credulity! Mr Gilbertson is obviously a gentleman!</div>
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Monday also saw the company's Uranium development vehicle Resource Star finally resume trading after 18 months off the market. Resumption of trading has seen the share price fall by around 25% from the 20c level. Taken in isolation this would be disappointing, but we view the relisting as more of a technical event and expect corporate developments and deals, (as referred to in Andrew Bells previous interview with miningmaven tv <a href="http://miningmaven.blogspot.com/2010/02/red-rock-resources-andrew-bell-going.html">here</a>) to be the drivers for value, in short order. </div>
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It is little over 6 weeks since we updated our value proposition on Red Rock (click <a href="http://miningmaven.blogspot.com/2010/01/red-rock-resources-update-so-what-have.html">here</a> to see) yet Mondays developments have left it in need of a thorough makeover.</div>
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Over the next day or so, we will be putting together an updated value proposition which will take into consideration all the events that have happened in the interim, and we will be looking at where things could go from here. Exciting times ahead! </div>
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<span style="font-size: x-small;">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.</span></div>
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<span style="font-size: x-small;">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.</span></div>
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<span style="font-size: x-small;">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.</span></div>
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<span style="font-size: x-small;">The author owns shares in Red Rock plc.</span><br />
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<span style="font-size: x-small;">Copyright © miningmaven 2009</span></div>MiningMavenhttp://www.blogger.com/profile/17207841279463670586noreply@blogger.comtag:blogger.com,1999:blog-4386900639784753639.post-70786636933350481442010-02-27T11:43:00.000-08:002010-03-25T07:52:35.405-07:00Ariana Resources: A piece of Turkey in the heart of Mayfair!<div class="separator" style="clear: both; text-align: center;">
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<strong>The Chesterfield Hotel in Mayfair was the setting for </strong><a href="http://bit.ly/bvA6Ao"><strong>Ariana Resources</strong></a><strong> (</strong><a href="http://www.google.co.uk/finance?client=ob&q=LON:AAU"><strong>LON:AAU</strong></a><strong>) latest investor presentation last Wednesday evening.</strong></div>
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Hosted by <a href="http://bit.ly/9WptI9">Proactive Investors</a>, Ariana shared the billing with Western Potash (<a href="http://www.google.co.uk/finance?q=WPX">TSX.V:WPX</a>) who have a “solution” mining project in Regina Canada and Resource Generation (<a href="http://www.google.co.uk/finance?q=ASX%3ARES">ASX:RES</a>), who are developing a coal mine in South Africa. </div>
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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! <br />
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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 <a href="http://bit.ly/bS6iwQ">here</a> to view). </div>
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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. </div>
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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. </div>
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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 <a href="http://bit.ly/ctBtXh">here</a> 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!</div>
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But with the support of a well-crafted presentation (click <a href="http://bit.ly/bKW2Mz">here</a> to view ) Kerim managed to talk people through the Ariana story, doing justice to all aspects and giving additional detail as and when required. <br />
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So what did we learn? <br />
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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. <br />
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All good stuff (click <a href="http://miningmaven.blogspot.com/2010/01/ariana-resources-psst-fancy-gold-mine.html">here</a> 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.<br />
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But what about the Proccea JV? <br />
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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. <br />
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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.<br />
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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. <br />
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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. <br />
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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.<br />
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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!<br />
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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 <a href="http://bit.ly/bxtCpB">Alexander David Securities</a>. They were certainly in demand as between them they worked the room, collecting and handing out business cards and talking Turkey! <br />
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The next event will be the <a href="http://bit.ly/cnMb3c">Minesite </a>presentation on 16th March (for details click <a href="http://bit.ly/am42Ou">here</a>)<br />
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To subscribe to Ariana Resources company updates, click <a href="http://bit.ly/9SeJxD">here</a><br />
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Previous Miningmaven articles on Ariana Resources<br />
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3 January 2010 <a href="http://miningmaven.blogspot.com/2010/01/ariana-resources-psst-fancy-gold-mine.html">Ariana Resources: Buy me a Gold Mine in Turkey!</a> <br />
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30 January 2010 <a href="http://miningmaven.blogspot.com/2010/01/ariana-resources-going-for-gold-in.html">Ariana Resources: Going for Gold in "Turnkey" Turkey </a><br />
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10 February 2010 <a href="http://miningmaven.blogspot.com/2010/02/ariana-resources-lets-get-this-show-on.html">Ariana Resources: Lets get this show on the road!</a> <br />
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18 February 2010 <a href="http://miningmaven.blogspot.com/2010/02/ariana-resources-limbering-up-for-main.html">Ariana Resources: Limbering up for the Main Event!!</a> <br />
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To view the latest 2010 presentation from Ariana , click <a href="http://bit.ly/bKW2Mz">here</a><br />
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<span style="font-size: x-small;">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.</span></div>
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<span style="font-size: x-small;">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.</span></div>
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<span style="font-size: x-small;">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.</span><br />
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<span style="font-size: x-small;">The author owns shares in Ariana Resources Plc.</span><br />
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<span style="font-size: x-small;">Copyright © miningmaven 2009</span></div>MiningMavenhttp://www.blogger.com/profile/17207841279463670586noreply@blogger.comtag:blogger.com,1999:blog-4386900639784753639.post-41690438958512403042010-02-22T05:33:00.000-08:002010-03-21T05:14:47.628-07:00Red Rock Resources – A Value Investor’s View<div class="separator" style="clear: both; text-align: center;">
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<strong>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.</strong></div>
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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.</div>
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So, we were rather pleased to note the latest Edison research update on <a href="http://bit.ly/chogDr">Red Rock Resources</a> (AIM: RRR), which also demonstrates the value which, as yet, the market does not reflect.</div>
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In this case, the <a href="http://bit.ly/9Q3hXo">Edison Investment Research</a> Report (click <a href="http://bit.ly/95IaMp">here</a> to view) indicates that the Company's market cap could be undervalued by up to a bewildering 89%!</div>
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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!</div>
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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.</div>
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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 <a href="http://bit.ly/cKF9fg">here</a> to read the article). </div>
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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 <a href="http://miningmaven.blogspot.com/2010/02/red-rock-resources-andrew-bell-going.html">here</a> 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.</div>
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Other Miningmaven articles & features on Red Rock Resources:</div>
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8 February 2010 - <a href="http://miningmaven.blogspot.com/2010/02/red-rock-resources-andrew-bell-going.html">Red Rock Resources: Andrew Bell going for gold in Kenya!</a> </div>
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3 February 2010 - <a href="http://miningmaven.blogspot.com/2010/02/re-new-funding-option.html">Red Rock Resources: New funding options??</a></div>
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19 January 2010- <a href="http://miningmaven.blogspot.com/2010/01/red-rock-resources-update-so-what-have.html">Red Rock Resources (UPDATE) - What have Red Rock Resources ever done for us??</a></div>
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15 January 2010 - <a href="http://miningmaven.blogspot.com/2010/01/red-rock-resources-growing-those-gold.html">Red Rock Resources: Growing those Gold Ounces....</a> <span style="font-size: x-small;"></span></div>
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<span style="font-size: x-small;">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.</span></div>
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<span style="font-size: x-small;">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.</span></div>
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<span style="font-size: x-small;">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.</span></div>
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<span style="font-size: x-small;">Copyright © miningmaven 2009</span></div>
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</div>MiningMavenhttp://www.blogger.com/profile/17207841279463670586noreply@blogger.comtag:blogger.com,1999:blog-4386900639784753639.post-76597516892580329582010-02-21T07:29:00.000-08:002010-02-21T14:42:49.125-08:00www.cash4idiots.com<div align="right" class="separator" style="clear: both; text-align: center;">
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<strong>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.</strong></div>
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<strong>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 <a href="http://bit.ly/9r253q">investigation</a> (to read click <a href="http://bit.ly/9r253q">here</a> ) into the business.</strong></div>
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Whilst we await the outcome with interest, the findings are unlikely to surprise anyone.</div>
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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! <br />
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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. </div>
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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. </div>
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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. <br />
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To see our recent Value Proposition on Red Rock Resources, <a href="http://miningmaven.blogspot.com/2010/01/red-rock-resources-update-so-what-have.html">click here</a><br />
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<strong>Cartoon in the header by: </strong><br />
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<span style="font-size: x-small;">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.</span></div>
<div style="text-align: justify;">
<span style="font-size: x-small;">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.</span></div>
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<span style="font-size: x-small;">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.</span></div>
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<span style="font-size: x-small;">Copyright © miningmaven 2009</span></div>MiningMavenhttp://www.blogger.com/profile/17207841279463670586noreply@blogger.comtag:blogger.com,1999:blog-4386900639784753639.post-52291635694183583762010-02-18T10:47:00.000-08:002010-03-21T05:15:24.903-07:00Ariana Resources: Limbering up for the Main Event!!<div class="separator" style="clear: both; text-align: center;">
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<strong>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.</strong></div>
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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.</div>
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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. <a href="http://bit.ly/95WeJB">Click here for details</a>).</div>
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So there’s nothing like a nice surprise update to catch the market off guard and remind investors exactly why they are holding Ariana. </div>
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So what is <a href="http://www.arianaresources.com/i/pdf/NR3_RedRabbitupdate_18February2010.pdf">today’s announcement</a> 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. </div>
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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? </div>
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Of course, prospective JV partners Proccea have done all this before. Through their mining services division <a href="http://bit.ly/chqvPc">CH Consultants</a>, they have designed and built gold production plants in Turkey on behalf of <a href="http://www.eldoradogold.com/s/Home.asp">Eldorado Gold</a>, <a href="http://www.kozaaltin.com.tr/">Koza Gold</a>, <a href="http://www.anatoliaminerals.com/">Anatolia Minerals</a> and Eti Gumus; in addition to various other international commissions. </div>
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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.</div>
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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.<br />
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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. </div>
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To subscribe to Ariana Resources company updates, click <a href="http://bit.ly/9SeJxD">here</a></div>
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Previous Miningmaven articles on Ariana Resources</div>
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3 January 2010 <a href="http://miningmaven.blogspot.com/2010/01/ariana-resources-psst-fancy-gold-mine.html">Ariana Resources: Buy me a Gold Mine in Turkey!</a> </div>
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30 January 2010 <a href="http://miningmaven.blogspot.com/2010/01/ariana-resources-going-for-gold-in.html">Ariana Resources: Going for Gold in "Turnkey" Turkey</a> </div>
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10 February 2010 <a href="http://miningmaven.blogspot.com/2010/02/ariana-resources-lets-get-this-show-on.html">Ariana Resources: Lets get this show on the road!</a> </div>
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To view the latest 2010 presentation from Ariana , <a href="http://bit.ly/bKW2Mz">click here</a></div>
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<span style="font-size: x-small;">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.</span></div>
<div style="text-align: justify;">
<span style="font-size: x-small;">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.</span></div>
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<span style="font-size: x-small;">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.</span></div>
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<span style="font-size: x-small;">Copyright © miningmaven 2009</span></div>MiningMavenhttp://www.blogger.com/profile/17207841279463670586noreply@blogger.comtag:blogger.com,1999:blog-4386900639784753639.post-87660796403369492312010-02-17T00:57:00.000-08:002010-03-21T05:16:07.066-07:00Range Resources: Q&A Session with Pete Landau & Anthony Eastman<div style="text-align: justify;">
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<a href="http://www.miningmaven.com/"><strong>Miningmaven.com</strong></a><strong> is pleased to have been able to facilitate this Q&A session with </strong><a href="http://www.rangeresources.com.au/"><strong>Range Resources plc</strong></a><strong>.</strong></div>
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<strong>The event was facilitated via a </strong><a href="http://www.facebook.com/home.php?#!/event.php?eid=295354635838"><strong>Facebook group event</strong></a><strong> which enabled investors to ask important questions and receive answers directly from the Company's senior management.</strong></div>
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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.</div>
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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.</div>
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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 <a href="http://www.rangeresources.com.au/Alerts-Subscription.newsletter.0.html">here</a> . </div>
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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 <a href="http://www.facebook.com/pages/MiningMaven/233281442746?ref=mf">Miningaven Facebook group by clicking here</a> .</div>
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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. </div>
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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.</div>
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<strong><span style="font-size: large;">Texas:</span></strong></div>
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<strong>Mining Maven (MM):</strong> 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? </div>
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<span style="color: #783f04;"><strong>Range Resources plc (RR</strong>): 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.</span></div>
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<strong>MM:</strong> 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?</div>
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<span style="color: #783f04;"><strong>RR:</strong> 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.</span></div>
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<strong>MM:</strong> Are you looking currently looking for, or examining, additional farm in prospects onshore in Texas? </div>
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<span style="color: #783f04;"><strong>RR:</strong> 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.</span></div>
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<strong><span style="font-size: large;"><a href="http://www.rangeresources.com.au/Georgia.23.0.html">Georgia</a>:</span></strong></div>
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<strong>MM:</strong> Please explain the Georgia programme you are undertaking and when you expect the key milestones to be achieved?</div>
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<span style="color: #783f04;"><strong>RR:</strong> Range and Strait are well advanced in completing Phase II (of III) of the PSA programme (see announcement 17 February 2010).</span><br />
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<span style="color: #783f04;">Key milestones under Phase II:</span><br />
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<span style="color: #783f04;">- A 350km Seismic Acquisition / Processing / Interpretation Program that is designed to lead to the identification of a number of drilling targets.</span><br />
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<span style="color: #783f04;">The seismic acquisition commenced in November 2009 and is due to complete end of March 2010.</span><br />
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<span style="color: #783f04;">- 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.</span><br />
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<span style="color: #783f04;">- 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.)</span><br />
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<span style="color: #783f04;">There are local groups that are suitably staffed / equipped to drill exploratory wells and bring them into production if commercial discoveries are made.</span><br />
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<strong>MM:</strong> What evidence do you have that there are, potentially, material quantities of oil and gas within the prospect areas?</div>
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<span style="color: #783f04;"><strong>RR:</strong> 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.</span></div>
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<strong>MM:</strong> On the positive assumption that your exploration efforts are productive, please explain the revenue sharing agreement you have negotiated for the Georgia assets?</div>
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<span style="color: #783f04;"><strong>RR:</strong> The Product Sharing Agreement:</span><br />
<span style="color: #783f04;"><br /><span style="color: #783f04;">- 50% goes to the Cost Recovery Programme in favour of the Company;</span><br /><br /><span style="color: #783f04;">- 25 % is returned to the Georgian Government; and</span><br /><br /><span style="color: #783f04;">- 25% is 'Profit Oil ' for the Company.</span><br /><br /><span style="color: #783f04;">- When Cost Recovery has been achieved the' Profit Oil ' is divided as follows: </span><br /><br /><span style="color: #783f04;">- 65% is returned to the Georgian Government; and</span><br /><br /><span style="color: #783f04;">- 35% is for the Company.</span><br /><br /><span style="color: #783f04;">There are no significant tax issues: </span><br /><br /><span style="color: #783f04;">- we have VAT exemption;</span><br /><br /><span style="color: #783f04;">- The Company - when in profit - excluding 'Cost Recovery '- will be liable to Corporation tax at 12%</span><br /><br /><span style="color: #783f04;">- The Operating Company is non -profit but pays local employment tax on Georgian employees and 4% for foreign ' Contractors / Consultants '</span></span><span style="color: #783f04;">- When in commercial Oil production: </span></div>
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<strong>MM:</strong> 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? </div>
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<span style="color: #783f04;"><strong>RR: </strong>Too early to tell, key factors in how to commercially exploit Georgia include:</span><br />
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-<span style="color: #783f04;"> Status of Puntland and Texas projects;</span><br />
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<span style="color: #783f04;">- 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).</span><br />
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<span style="color: #783f04;">- Quality of drilling prospects derived from the seismic programme.</span><br />
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<span style="color: #783f04;">As referred to above, local logisitics and technical management already exists in Georgia. </span><br />
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<strong><span style="font-size: large;"><a href="http://www.rangeresources.com.au/Puntland.24.0.html">Puntland</a>:</span></strong></div>
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<strong>MM:</strong> Is Puntland the major focus of the company going forward and why? </div>
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<span style="color: #783f04;"><strong>RR:</strong> 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.</span><br />
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<span style="color: #783f04;">The review was led by Range’s JV partner Africa Oil Corp. and was successfully concluded in December 2009. </span><br />
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<span style="color: #783f04;">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. </span><br />
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<span style="color: #783f04;">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.</span></div>
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<strong>MM:</strong> Please explain why Puntland is geologically an exciting area of operations.</div>
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<span style="color: #783f04;"><strong>RR:</strong> 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. </span><br />
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<span style="color: #783f04;">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.</span><br />
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<span style="color: #783f04;">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.</span><br />
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<strong>MM:</strong> Please describe the expected Puntland programme and when the key milestones should be reached for investors.<br />
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<span style="color: #783f04;"><strong>RR:</strong> 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.</span></div>
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<span style="color: #783f04;">Offshore negotiations are ongoing with a possible agreement timeline of Q2 2010.</span> <br />
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<strong>MM:</strong> 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? <br />
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<span style="color: #783f04;"><strong>RR:</strong> 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.</span><br />
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<span style="color: #783f04;">Range is still free carried for the next US$17m to be spent on Nugaal. Range contributes their 20% interest in Dharoor. </span><br />
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<strong>MM:</strong> How committed are Africa Oil with regard to their Puntland interest and how are they likely to take this forward?</div>
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<span style="color: #783f04;"><strong>RR:</strong> 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.</span> </div>
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<strong>MM:</strong> Please outline progress with regard to Puntland Offshore and specifically the likely process and timescale to securing a possible farm-in partner?</div>
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<span style="color: #783f04;"><strong>RR:</strong> 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..</span></div>
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<strong><span style="font-size: large;">General:</span></strong></div>
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<strong>MM:</strong> Could you provide more regular updates to your shareholders concerning operation progress / timelines for significant news releases?</div>
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<span style="color: #783f04;"><strong>RR:</strong> 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.</span></div>
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<strong>MM:</strong> Can you provide some transparency on the holdings in Range Resources by directors and connected persons?</div>
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<span style="color: #783f04;"><strong>RR: </strong>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</span></div>
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<strong>MM:</strong> 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? </div>
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<span style="color: #783f04;"><strong>RR:</strong> 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.</span> <br />
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<span style="color: #783f04;">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. </span><br />
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<span style="color: #783f04;">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: </span><br />
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<span style="color: #783f04;">- First production on Texas and subsequent further development during the year;</span><br />
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<span style="color: #783f04;">- Completion of 350km seismic program in Georgia that will potentially lead to the identification of drilling targets, with the possibility of drilling late 2010.</span><br />
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<span style="color: #783f04;">- First well spudded onshore Puntland in over 16+ years, followed by second well late 2010.</span><br />
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<span style="color: #783f04;">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.</span><br />
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<strong>MM:</strong> Please summarise Range's Resources short term opportunities and describe the medium to long term future (2-5 years)?</div>
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<span style="color: #783f04;"><strong>RR:</strong> 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.</span></div>
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<span style="font-size: x-small;">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.</span></div>
<div style="text-align: justify;">
<span style="font-size: x-small;">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.</span></div>
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<span style="font-size: x-small;">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.</span></div>
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<span style="font-size: x-small;">Copyright © miningmaven 2009</span></div>MiningMavenhttp://www.blogger.com/profile/17207841279463670586noreply@blogger.comtag:blogger.com,1999:blog-4386900639784753639.post-9971344859330247972010-02-11T07:48:00.000-08:002010-03-21T05:16:46.031-07:00Horizonte Minerals: Nickel and Gold Explorer – it’s all there if you look close enough!<div style="text-align: justify;">
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgohFVs0HG_Mm5PbucUIRN-YqVs6KS7GAl7IOmPE1EKT8fODS5OHEMi-RVlVSpIElxXcPLD_gtfXyr7yA_T2QOKeLwrcSqr1MD5Zm21z1HZjRlQHBKUAYKMdrYILyA74pqY_DOW1e-1GZo/s1600-h/doh.jpg" imageanchor="1" style="clear: right; cssfloat: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" ct="true" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgohFVs0HG_Mm5PbucUIRN-YqVs6KS7GAl7IOmPE1EKT8fODS5OHEMi-RVlVSpIElxXcPLD_gtfXyr7yA_T2QOKeLwrcSqr1MD5Zm21z1HZjRlQHBKUAYKMdrYILyA74pqY_DOW1e-1GZo/s320/doh.jpg" /></a></div>
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<strong>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 </strong><a href="http://bit.ly/cgvWUP"><strong>news release</strong></a><strong>. </strong></div>
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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. </div>
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If you just gave the announcement a cursory glance then you could easily have missed some key points. So here are some thoughts. </div>
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Firstly, we recognise that investors are yearning for crystallisation of value, and with the <a href="http://www.horizonteminerals.com/interna.php?codTexto=26">Lontra Nickel</a> project due a JORC resource calculation by mid 2010, this looks like it could now be on the way!</div>
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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. </div>
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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. </div>
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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. </div>
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Ah, but secondly there is <a href="http://bit.ly/9zNtzz">Tangara</a>, which many investors see as a bit of a dead duck.</div>
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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. </div>
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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!”. </div>
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And then thirdly there’s the <a href="http://bit.ly/cLDTDR">Anglogold Alliance</a>. 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”.... </div>
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...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.”</div>
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So there you have it, and the reason why the term “significant anomaly” news was gently lowered into the announcement earlier on. </div>
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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. </div>
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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. </div>
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So in summary:</div>
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- Slight delay to Lontra Jorc due to rains but confirmation of technical expert appointment and clarity on revised programme;</div>
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- Tangara evidently still alive (even though some would argue to the contrary);</div>
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- The Anglogold alliance is working and dare we say it may have found something interesting – watch this space;</div>
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- LGA work progresses successfully.</div>
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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!</div>
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<span style="font-size: x-small;">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.</span></div>
<div style="text-align: justify;">
<span style="font-size: x-small;">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.</span></div>
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<span style="font-size: x-small;">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.</span></div>
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<span style="font-size: x-small;">Copyright © miningmaven 2009</span></div>MiningMavenhttp://www.blogger.com/profile/17207841279463670586noreply@blogger.comtag:blogger.com,1999:blog-4386900639784753639.post-66543477442711969392010-02-10T07:38:00.000-08:002010-03-21T05:17:08.808-07:00Ariana Resources: Lets get this show on the road!<a href="http://bit.ly/9VWMaL" imageanchor="1" style="clear: right; cssfloat: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" height="59" kt="true" src="http://bit.ly/9VWMaL" width="320" /></a><br />
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<strong>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! </strong><br />
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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 "<a href="http://cws.huginonline.com/A/138153/PR/200912/1365688_5_2.html">Red Rabbit</a>", in order to to fast track it into full production. </div>
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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 <a href="http://bit.ly/95WeJB">Proactive Investor one2one presentation on 24th February</a> 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. </div>
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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 <a href="http://bit.ly/bpvOqC">Twitter </a>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, <a href="http://bit.ly/bpvOqC">click here</a> </div>
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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.</div>
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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 <a href="http://bit.ly/aGJRw6">website</a>. They invite you to sign up for news updates through this priority link <a href="http://bit.ly/9SeJxD">here</a>. </div>
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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 <a href="http://bit.ly/95WeJB">here</a>. </div>
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Roll on the 24th of February!!</div>
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<span style="font-size: x-small;">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.</span></div>
<div style="text-align: justify;">
<span style="font-size: x-small;">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.</span></div>
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<span style="font-size: x-small;">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.</span></div>
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<span style="font-size: x-small;">Copyright © miningmaven 2009</span></div>MiningMavenhttp://www.blogger.com/profile/17207841279463670586noreply@blogger.comtag:blogger.com,1999:blog-4386900639784753639.post-40001371348001176362010-02-08T23:52:00.000-08:002010-03-21T05:17:39.962-07:00Red Rock Resources: Andrew Bell going for gold in Kenya!<div align="center">
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<strong><span style="background-color: cyan; font-size: large;">SCREEN TOO SMALL? ENLARGED VERSION </span></strong><a href="http://bit.ly/aa83qq"><strong><span style="background-color: cyan; font-size: large;">here</span></strong></a><br />
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<a href="http://vimeo.com/9297498">Red Rock Resources: Andrew Bell going for gold!</a> from <a href="http://vimeo.com/user3086295">Mining Maven</a> on <a href="http://vimeo.com/">Vimeo</a>.</div>
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To view the latest Miningmaven Value proposition quoted in this interview click <a href="http://bit.ly/9NLDa4">here</a><br />
To view the latest commentary on Red Rock news click <a href="http://bit.ly/brC1fp">here</a><br />
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<span style="font-size: x-small;">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.</span></div>
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<span style="font-size: x-small;">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.</span></div>
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<span style="font-size: x-small;">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.</span></div>
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<span style="font-size: x-small;">Copyright © miningmaven 2010</span></div>MiningMavenhttp://www.blogger.com/profile/17207841279463670586noreply@blogger.comtag:blogger.com,1999:blog-4386900639784753639.post-14027608216515044332010-02-07T06:45:00.000-08:002010-04-29T08:03:02.497-07:00What’s eating Jon Nadler?<div style="text-align: justify;">
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<strong>Those who follow gold closely will be equally familiar with </strong><a href="http://bit.ly/b0ZyAJ"><strong>Jon Nadler</strong></a><strong>, the gold commentator with a profoundly negative stance - who also just happens to be the senior analyst for </strong><a href="http://bit.ly/a0p2Pu"><strong>Kitco</strong></a><strong> the Canadian internet gold site and bullion dealer. </strong><strong>Yes folks, the voice of Kitco, who issues daily commentary on their behalf, is so consistently negative that he has earned the title “The </strong><a href="http://bit.ly/ctfA52"><strong>Tokyo Rose</strong></a><strong>” of Gold analysts!</strong></div>
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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 <a href="http://bit.ly/awdCSr">The Sun</a> 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 . </div>
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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.<br />
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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....</div>
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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.</div>
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I was reminded of Jon Nadler's surreal role whilst listening to this interview today on <a href="http://bit.ly/9NHBgM">King World News with John Embry</a> from <a href="http://bit.ly/daQSa2">Sprott Asset Management</a>. 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.</div>
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He doesn’t buy Nadler's stance for one minute. Quoting Eric King, paraphrasing Jon Embry:</div>
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<em><span style="font-size: large;">“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”</span></em></div>
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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. </div>
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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! </div>
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The interview is well worth a listen (click <a href="http://bit.ly/9NHBgM">here </a>to listen) ahead of what promises to be an interesting week for the precious metals.</div>
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You may also want to hear <a href="http://bit.ly/dmsOqx">Ted Butler's take on last week's trading activity</a> 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!!</div>
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<span style="font-size: x-small;">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.</span></div>
<div style="text-align: justify;">
<span style="font-size: x-small;">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.</span></div>
<div style="text-align: justify;">
<span style="font-size: x-small;">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.</span></div>
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<span style="font-size: x-small;">Copyright © miningmaven 2010</span></div>MiningMavenhttp://www.blogger.com/profile/17207841279463670586noreply@blogger.comtag:blogger.com,1999:blog-4386900639784753639.post-65643649339139826902010-02-03T03:04:00.000-08:002010-03-21T05:19:41.765-07:00Red Rock Resources: New funding options??<div style="text-align: justify;">
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<a href="http://www.rrrplc.com/images/index_r1_c2.gif" imageanchor="1" style="clear: right; cssfloat: right; float: right; margin-bottom: 1em; margin-left: 1em;"><strong><img border="0" kt="true" src="http://www.rrrplc.com/images/index_r1_c2.gif" /></strong></a></div>
<strong>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 </strong><a href="http://www.ft.com/cms/s/0/c3989072-e5ad-11de-b5d7-00144feab49a.html?nclick_check=1"><strong>here</strong></a><strong>)</strong> . But as any reader of John Steinbeck’s ‘<a href="http://astore.amazon.co.uk/miningmaven-21/detail/0141185120">The Pearl’</a> 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. </div>
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We therefore note with interest the latest developments from Red Rock Resources who, this morning, announced the <a href="http://www.investegate.co.uk/article.aspx?id=201002030700045693G&fe=1">end of their Joint Venture Agreement</a> with <a href="http://www.pallinghurst.com/">Pallinghurst</a>. This Joint Venture saw the companies working together to vend assets in exchange for stock in an enlarged <a href="http://www.jupitermines.com/">Jupiter Mines</a>. </div>
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In 2009, Red Rock vended <a href="http://library.rrrplc.com/RRR_web/RRR_Announcements/RRR_announcements_2009/RRR_Results_of_Jupiter_Mines_EGM_09.03.2009.pdf">various assets</a> 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 <a href="http://miningmaven.blogspot.com/2010/01/red-rock-resources-update-so-what-have.html">Value Proposition</a>, 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). </div>
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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. </div>
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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. </div>
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Bearing in mind that most of Jupiter's stock is tightly held by Pallinghurst, their partners <a href="http://www.posco.com/">POSCO</a> and others including more recent arrivals on the share register, <a href="http://d301432.u111.fasthit.net/">Hancock Prospecting</a>. So anyone after a decent sized stake will find their options severely limited.<br />
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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 <a href="http://www.brr.com.au/event/60892/investor-presentation-mr-geoffrey-wedlock-non-exec-chairman-brian-gilbertson">investor presentation</a> - 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.</div>
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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. </div>
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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? </div>
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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. </div>
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<span style="font-size: x-small;">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.</span></div>
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<span style="font-size: x-small;">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.</span></div>
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<span style="font-size: x-small;">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.</span></div>
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<span style="font-size: x-small;">Copyright © miningmaven 2009</span></div>MiningMavenhttp://www.blogger.com/profile/17207841279463670586noreply@blogger.comtag:blogger.com,1999:blog-4386900639784753639.post-25063761036796168352010-01-30T08:45:00.000-08:002010-01-30T11:18:30.924-08:00Ariana Resources: Going for Gold in "Turnkey" Turkey - 2010 Presentation<div class="separator" style="clear: both; text-align: center;">
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<strong>At the beginning of January we presented a value proposition for </strong><a href="http://bit.ly/7t9qUz"><strong>Ariana Resources</strong></a><strong>, the Turkish gold developer which has its sights on near term production through a 50/50 joint venture with </strong><a href="http://bit.ly/9sEVMI"><strong>Proccea </strong></a><strong>a major Turkish engineering and construction firm. </strong><br />
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We also noted that under the prevailing market conditions during 2009, the company elected to spend most of the year focussed on corporate and operational activities, putting on hold their promotional efforts until such time as the market would be more receptive and perhaps even even up for a punt! </div>
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So for Ariana's management, the new year kicked off with a presentation on Wednesday to the <a href="http://bit.ly/ct0p7u">Association of Mining Analysts</a>, which by all accounts was well received. The schedule of presentations and exhibitions is set to continue throughout Q1( for a list of the events planned <a href="http://bit.ly/bMUG2C">click here</a> ) which also looks likely to be a period of active news flow.</div>
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However, for shareholders, there is one piece of news which is eagerly anticipated, and thats the finalisation of the Proccea JV agreement, which will mark a transformational event for the company and will see Ariana firmly on its way to its goal of near term gold production in Turkey.</div>
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To view the latest 2010 presentation from Ariana , <a href="http://bit.ly/bKW2Mz">click here</a> </div>
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To view the Miningmaven value proposition on Ariana (03/01/10) <a href="http://bit.ly/7t9qUz">click here</a></div>
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<a href="http://www.arianaresources.com/">http://www.arianaresources.com/</a><span style="font-size: x-small;"></span> </div>
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<span style="font-size: x-small;">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.</span></div>
<div style="text-align: justify;">
<span style="font-size: x-small;">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.</span></div>
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<span style="font-size: x-small;">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.</span></div>
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<span style="font-size: x-small;">Copyright © miningmaven 2009</span></div>MiningMavenhttp://www.blogger.com/profile/17207841279463670586noreply@blogger.comtag:blogger.com,1999:blog-4386900639784753639.post-85591342033377440392010-01-28T06:16:00.000-08:002010-01-28T14:08:53.680-08:00Edison Gold Report 2010 - How to Value those Ounces in the Ground<div class="separator" style="clear: both; text-align: center;">
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<strong>As regular readers will know, when reviewing gold miners, we have often paid tribute to the </strong><a href="http://bit.ly/bNmYkt"><strong>Edison Research</strong></a><strong> gold report from October 09. This report analysed 41 companies listed on the London market and provided a weighted average metric for attributing a value to their measures, indicated and inferred ounces in the ground.</strong> <br />
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This was the first time a report of this type ( directly focussed on the value of ounces in the ground), had been seen during this market cycle and it provided investors with a very useful tool for research and reference purposes. <br />
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We are therefore delighted to see than Edison have now updated their research and expanded their coverage to include 132 gold companies (with a combines resource of 2 billion ounces) in each of the four major global mining finance centres - London, Canada, Australia and Johannesburg. <br />
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The new report is now able to compare valuations not only within, but also between the four major markets.<br />
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As far as valuations are concerned, the story hasn’t changed all that than much (that said, "indicated" ounces in London have had a bit of a filip - up from $30 to $159 per ounce!). But with the coverage now going Global, it will certainly have a much broader reach. <br />
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We think it makes for very worthwhile reading and if you appreciate the Edison valuation metric, you will no doubt find the extended cover even more relevent (you may want to link this into your favourites). The conclusions drawn should not come as any surprise either. As the report title suggests: Gold - Valuation Benchmarks are obsolete! <br />
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To see the full Edison report, click here ; <a href="http://bit.ly/cXUNul">Gold - Valuation Benchmarks are obsolete</a>!<br />
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<span style="font-size: x-small;">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.</span><br />
</div>
<div style="text-align: justify;">
<span style="font-size: x-small;">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.</span><br />
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<span style="font-size: x-small;">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.</span><br />
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<span style="font-size: x-small;">Copyright © miningmaven 2009</span><br />
</div>MiningMavenhttp://www.blogger.com/profile/17207841279463670586noreply@blogger.com