22-07-2014, 09:31 PM
There has been a radio interview with Newmont about the Archey's frogs on the Coromandel, after the Greens ran the story I referred to earlier. Here is the interview in full.
Over three nights and days, 44 Archey's frogs were found in or near five 10m x 10m drilling sites, each 10km Southwest of Whangamata, in December 2012. Archey's frog grows no bigger than a thumbnail, and there are thought to be only up to 20,000 of them left. Newmont chose different drilling sites at four of the positions, to give the frogs a wide berth.
The rough location given in an earlier article (10km southwest of Whangamata) makes it look like it could have been work done in the WKP permit area, or possibly the Neavesville area. Maybe the frogs are more widely dispersed than the official sites suggest, they are hard to find without a concerted effort. Good to hear that Newmont would be happy enough to spend some funds on researching these very rare frogs. That sounds like a commonsense approach.
The poor investment record of GEL or AXG was skirted around carefully in the interview. We should have bought Newmont shares.
Last edited by elZorro; 22-07-2014 at 09:53 PM.
23-07-2014, 06:20 AM
I'll fill you in on this one if you'd like elZ.
Originally Posted by elZorro
If we had bought gold bars at the all-time high price a few years ago and sold it today, it would have been a far superior investment to investing in GEL shares like we had.
That pretty much sums it up.
NZ - NTL
GRNZ - Cool Gypsy, Flirt Academy, King's Legacy
RIP - Caesar Legend
You'd better DYOR.
23-07-2014, 08:24 AM
Simon Henderson is certainly enthusiastic, he might also be a bit wiser from the experience he's had. Chris Castle has a similar background, and in business it's often those who try again after having a go at something, who succeed spectacularly. I'm not sure I'd put money on it.
Originally Posted by moosie_900
The remaining unpaid part-time staffers of AXG, Peter Liddle in Auckland and Thomas Rabone in Wellington, will be residing over a tower of boxfiles and records, plus a heap of substantial old bills to pay. I'm really unsure what will happen out of that.
Last edited by elZorro; 23-07-2014 at 08:28 AM.
29-07-2014, 08:23 PM
The AGM is being held in Vancouver, might be done by now. The idea was to limit directors to four (Simon Henderson, Justin Cochrane, Adrian Fleming, Thomas Rabone) and to set auditors' fees. Plus any other business. Short meeting?
Last edited by elZorro; 29-07-2014 at 08:28 PM.
06-08-2014, 05:46 AM
No news available for AXG, but one of the major shareholders, Geoff Loudon, is managing to make a dollar or two with his alluvial operation at Earnscleugh, Otago NZ. It's on a reasonable scale.
Back in 2011-2012 Geoff Loudon reported that the project has over 40 staff, and spends about $10mill p.a. locally. Looks like the income could be around $15mill p.a. if all goes right, at the curent gold price. The recent refloating of the GRU and electrification would have cost a bit.
6/8/2014 — Gold (NZResources)
Earnscleugh mine looks to better prices
By Ross Louthean
The privately operated gold mining dredge on the Earnscleugh flats near Alexandra in Otago is continuing to be a marginal operation.
Owner, Christchurch-based L&M Group, has undertaken some operating efficiencies and also electrified a major part of the floating dredge operations after it had sunk into the dredge pond several months ago.
The chairman of L&M Group, Geoff Loudon, in Kalgoorlie for Diggers & Dealers Forum, told NZResources.com that the change off dependency on diesel power has produced significant savings.
Production has built up at Earnscleugh and in a good month the dredge recovers more than 1,000 ounces of gold, and in the past low months on treating lower grades, the recovery was as low as 650 oz.
Loudon said the operation had a good team and not only was the flat gold price a bugbear, so was the strength of the Kiwi dollar to the American Greenback.
Last edited by elZorro; 06-08-2014 at 08:47 AM.
19-08-2014, 11:39 PM
The high NZ dollar and steady gold price has mothballed and probably closed the Earnscleugh project. That's bad news, shows how hard it is to extract these alluvial deposits at low grade.
20/8/2014 — Gold
Earnscleugh dredge mothball hits local economy
By Simon Hartley
A depressed gold price and the high New Zealand dollar has forced the privately-owned Earnscleugh alluvial gold project near Alexandra to close - stripping 35 jobs and millions of dollars from the local economy.
The loss of the more than five-year-old project - considered to be the largest alluvial gold operation in the country - will hit the local economy hard, being one of the area's largest employers.
Sole director Geoff Loudon of Mintago Investments Ltd, part of the wider L&M Group, said the operation had succumbed to the prevailing low gold price, but more so, to the high New Zealand dollar.
“There's still more gold there, but it's been marginalised by the combination of [the gold] price, and New Zealand dollar,” he said.
The depressed gold price and rising production costs had similarly prompted hard rock miner OceanaGold Corporation to lay off about 270 staff and contractors, at both its West Coast (Reefton) and East Otago (Macraes) gold mines in recent months.
The Earnscleugh start-up phase of the project has been estimated at $3 million, with the company claiming about $10 M was spent in the area annually while, by 2012, the project was averaging about 750 ounces a month from Earnscleugh flats.
Only last December, the project owners had confirmed they were considering seeking an extension to continue mining past the consented April 2016 deadline.
Dredging for the alluvial gold started in July 2009 on the 150 hectare site, and had built into a 24-hour operation at Earnscleugh; targeting more than 110,000 ounces of gold during the seven-year project.
Geoff Loudon said the high kiwi dollar meant the $NZ gold price per ounce was reduced from $NZ2,000 to $NZ1,500 per oz.
“This [high dollar] has continuously been challenging the viability of the mine,'' he said.
While gold mining will cease within a month, there is a further six months of remedial work to restore and return the area to pasture grassland, he said.
L&M owns more than 400 ha of land in the immediate area, but no decision had yet been made on selling it, or whether the dredge will be sold or dismantled, L&M Group chief financial officer Shirley Herridge said.
It was “incredibly unlikely” the project could resume if the gold price strengthened, because the costs to re-start were prohibitive, she said.
L&M, which began as Lime & Marble in 1930s, is estimated in the past three decades to invested more than $50 M in exploration around Otago, Southland and the West Coast.
Loudon said since the operation started, the New Zealand and US dollar exchange rate had increased from US65c to US85c and there was no certainty where it would be long term.
Gold hit a record $US1,921/oz ($NZ2,262/oz) in September 20011, which encouraged many small mining operations to resume or kick-start production. However, during the past six months the gold price had been drifting around $US1,300/oz, or less; trading at $US1,299/oz on Monday.
At less than $US1,200/oz where it slumped last December, even the major high volume mines around the world come close to being commercially impaired.
The tenement at Earnscleugh flats had never been mined before, but was near the historic Earnscleugh tailings reserve, where gold was mined through the 19th and 20th centuries. The project had planned to move 32 M cubic metres of overburden soil, and wash about 14 M cu m of gravel.
“We'll rehabilitate the mine site for future agricultural use, leaving the land in a better state than when it was acquired,” Loudon said of the restoration; part of 132 resource consent conditions imposed by local councils.
“Continuous rehabilitation has been ongoing since 2012, creating quality pasture from previously unproductive land,' Loudon said.
He said the land restoration mirrored L&M Group's rehabilitation programmes at earlier projects at Glenore, Nokomai, Arahura, Rimu and others, which began in the 1990s.
Loudon wanted to thank everyone associated with the project during the past five years, including councils, local community, contractors and staff.
“Their hard work and enthusiasm under difficult circumstances has been appreciated''.
In January last year the company's 30m long by 12m wide, 400 tonne gravel dredge sank and took about 10-weeks to refloat, and had its diesel plant switched to electrical at the time.
Loudon said that this change had driven costs down from about $350,000 to $225,000 per month.
The Earnscleugh project operates under the wider L&M Group which in recent decades had been exploring for oil, coal and gas around Otago and Southland.
Mintago's majority shareholder is L&M Earnscleugh Ltd. A year ago Loudon made a successful almost $13 M takeover bid for dual listed L&M Energy, and delisted it from the NZ and Australian bourses.
*Simon Hartley is senior business reporter and assistant chief reporter for the Otago Daily Times.
21-08-2014, 06:08 AM
Since some/all remaining profit has to be spent on reinstating the ground (upgrading it to good pasture), the importance of this event for AXG is that a previous source of funding from an enthusiastic shareholder, could be at an end.
Originally Posted by moosie_900
01-09-2014, 06:06 AM
I'm not seeing any gold at the end of this rainbow of information.
WELLINGTON, NEW ZEALAND--(Marketwired - Aug. 29, 2014) - ANTIPODES GOLD (TSX VENTURE:AXG)(NZAX:AXG) ("the Company") announced today that, further to the News Release of 8 May ("Antipodes Gold announces private placement to advance WKP gold project"), it continues to seek working capital for development of the WKP project, and the Company is now also assessing all alternative options.
To arrange interim funding during this process, the Company has drawn down a loan of NZ$40,000 (approximately C$36,570) from Mr Chris Castle, under an agreement dated 29 April 2014, which is to be repaid to the lender, without interest, on or before 31 December 2014. This loan is secured. The Company announces that it will issue 200,000 common shares to Mr Castle under this arrangement, subject to TSXV approval.
In addition, as advised earlier, the Company incurred loans in March/April 2014 of C$40,000 from Directors and Officers, repayable by 30 September 2014, or convertible to common shares at the lenders' election.
At the Company's Annual General Meeting, held of July 28, 2014, all resolutions proposed were approved.
For more information and to subscribe to further news updates, please visit antipodesgold.com.
NZ - NTL
GRNZ - Cool Gypsy, Flirt Academy, King's Legacy
RIP - Caesar Legend
You'd better DYOR.
02-09-2014, 06:47 AM
Thanks for that, Yankiwi. It's a shocker. Here's how you can now buy shares in AXG for NZ 2c. Stump up with some much needed capital to keep the show going. You know, I effectively paid a lot more than that in the last capital raising, and it was so successful for them that they didn't really want my meagre cash. Relatively speaking. But now, $40,000 is a big deal. Welcome to the real world.
There is also a report on SEDAR, for up until the end of June 2014. This states that the company is not a going concern, had $4,000 in the bank at that stage, but owed a lot more. It also 'lost' another $120,000 in the last 6 months.
They also noted that even the accruing tax losses are not recoverable for certain in future, as they have to trade through, to hold them. This outfit needs a white knight with a tax problem, pronto.
Non Going Concern
These financial statements have been prepared on a non-going concern basis.
For the six months ended June 30, 2014, the Group had a net loss of $120,000
(six months ended June 30, 2013: $12,105,000), working capital deficit of
$1,768,000 (June 30, 2013: working capital deficit of $1,641,000) with an
accumulated deficit at June 30, 2014 of $38,852,000 (June 30, 2013: $35,952,000).
(Tabular amounts in thousands of Canadian dollars)
For the six months ended June 30, 2014
Page 8 of 27
The Group has been unable to obtain sufficient financing resources to allow
the Group to continue in operational existence for the foreseeable future.
Accordingly, the financial statements have been prepared on an alternative
basis. The Group has continued to apply the requirements of IFRS and NZ
GAAP taking into account that the Group is not expected to continue as a
going concern in the foreseeable future and the net assets are valued at their
realisable value where applicable. In addition the assets have been presented
in order of liquidity in the Statement of financial position.
The recoverability of the carrying value of mineral properties and the
Company's and Group’s continued existence as a Going Concern is
dependent upon the ability of the Company and Group to raise additional
financing, the preservation of its interest in the mineral properties, the
discovery of commercially recoverable reserves, the achievement of profitable
operations, and/or the Company's and Group’s ability to dispose of its
interests on an advantageous basis and, controlling expenditure. The business
of exploring for and mining of minerals involves a high degree of risk and
there can be no assurance that current exploration programs will result in
profitable mining operations...
Last edited by elZorro; 02-09-2014 at 08:05 PM.
26-09-2014, 06:02 AM
The interests of Geoff Loudon (New Dawn) have offered a short-term overdraft facility to NZEC of up to $5mill. It's in place until March next year. This is presumably a safer bet than Earnscleugh or AXG.
26/9/2014 — Oil and Gas
New Dawn loan for NZEC’s Taranaki exploration
The Canadian petroleum company New Zealand Energy Corporation (NZEC) has gained a $NZ5 million loan which it says is the first step of a capital rebuilding process.
The company (TSX-V: NZ; OTCQX: NZERF) said it secured the loan from New Dawn Energy Ltd, a company linked with project partner Christchurch-based L&M Energy Ltd and its principal Geoff Loudon.
NZEC said this week that the working capital facility, for up to $5 M, is from New Dawn which it described as parent of L&M Energy, which is NZEC’s 50% partner in the Tariki, Waihapa and Ngaere (TWN) licenses it acquired last October.
L&M is also NZEC’s 35% partner in the Alton exploration permit, also in the Taranaki Basin.
“New Dawn’s willingness to advance funds is a strong vote of confidence in both the quality of the TWN Assets, and the ability of NZEC’s team as operator of the assets," said NZEC chief executive officer John Proust.
“The additional working capital will allow NZEC to undertake the activities required to further exploit the TWN Licences, with the objective of increasing oil production.”
For the past year, NZEC said it has been focused on increasing production and cash flow in the Taranaki Basin since closing the purchase of the TWN petroleum mining licenses from Origin Energy Ltd (ASX:ORG) last October.
A tightness on capital last year, not helped by high operating costs at the time, resulted in L&M Energy coming in as a 50% partner on the TWN leases and the Waihapa production facilities.
NZEC said this week it has focused on workovers and uphole completions on the new licenses, a significantly cheaper task than drilling new wells, that if successful, could easily tie into its Waihapa production station using existing infrastructure.
With the new capital, NZEC has the opportunity to expand on its strategy. It has already found four other production opportunities in existing wells on its TWN licenses, along with several new 3D drill targets in four different oil formations.
The Canadian company said it was also reviewing an opportunity at the Waihapa station that could allow liquefied petroleum gas to be extracted, bringing in additional revenue.
“NZEC has made progress in 2014 to right-size the business, reduce operating costs, and focus on its most promising assets in both the Taranaki and East Coast basins," said Proust.
"With this inflow of capital, NZEC’s technical and operations teams can apply the insight gained from nearly a year of operating the TWN assets to advance additional production and cash flow opportunities.”
So far, the company has advanced a total of 12 wells to production, including eight on its newly acquired TWN licenses. All of the TWN wells produce light ~41o API oil that is delivered by pipeline to the Waihapa production station and then piped to the Shell-operated Omata tank farm in New Plymouth, where it is sold at Brent pricing less standard Shell costs.
The loan facility, to the extent drawn down, will bear interest at 12% per annum with a maturity date of March 31, 2015. Interest is payable monthly, NZEC said, or may be capitalised with New Dawn's consent.
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