Low volume on the NZX as always, but B:S spread opened to 30% during today, from 36 bid to 48 Sell.
Seller came down to 42 by days end, merely a 16% spread.
Interesting times if you are bull on gold.
V.
Low volume on the NZX as always, but B:S spread opened to 30% during today, from 36 bid to 48 Sell.
Seller came down to 42 by days end, merely a 16% spread.
Interesting times if you are bull on gold.
V.
Vtrader, like you I wonder where the gold price will go next. In the meantime I had a bit of a look over Newmont's articles for some figures on their expenditures. For example, they spend $10m on exploration each year around Waihi, and will spend about $700m on Correnso over 7 years or so, if it is approved. The return should be about $1500mill from 650,000 oz.
Then I created this bar chart (OK, I had some help from a yr13 IT professional) to show what WKP would look like if it had 5Moz of gold taken out at current prices.
Two things I noticed:
-It's a lot of money
-Would Newmont really allow Glass Earth Gold to have 35% of it, or would they make a move at some stage?
Vtrader, like you I wonder where the gold price will go next. In the meantime I had a bit of a look over Newmont's articles for some figures on their expenditures. For example, they spend $10m on exploration each year around Waihi, and will spend about $700m on Correnso over 7 years or so, if it is approved. The return should be about $1500mill from 650,000 oz.
Then I created this bar chart (OK, I had some help from a yr13 IT professional) to show what WKP would look like if it had 5Moz of gold taken out at current prices.
Two things I noticed:
-It's a lot of money
-Would Newmont really allow Glass Earth Gold to have 35% of it, or would they make a move at some stage?
Z,
A chart!
After all your FA and you play TA also.
Black white or grey, opposites attract.
TA suggests that GEL.v could have just started up from an EWT minor 2.
A low volume chart, prone to error.
Something to lighten my day.
V.
An interesting (if wildly mathematically inaccurate) article in the Waikato Times this morning about Newmont Waihi, and this is part of the PR towards the Correnso Mining application due soon. Here's an article about that, will wait for the stuff.co.nz item to appear on the web.
The reporter, Matt Bowen, has obviously not sent the proof to Newmont, or had anyone look at it carefully. Would any employer of long standing employ 300 workers for a turnover of $2 million a year? Matt - Newmont sells about $200mill of gold a year, over $600,000 worth per worker. This is typical of the Times, you just can't trust their figures, so how much of the rest of it is accurate?
Interesting that a footnote says Newmont is looking in the near region for mining sites that are capable of being underground mined, with a low surface footprint. That fits WKP, as long as it gets above 5Moz total in partnership, or 3Moz if Newmont owns it outright.
Correnso is quite a lot less in scope (about 650,000 oz), and that's still worth going after.
Detail on the mill repairs (March):
Mill Overhaul
Newmont Waihi Gold’s mill has produced very little gold and silver this year but the
workers out there at Baxters Road are busier than they have ever been.
The processing plant is having a major overhaul. Just some of the works include:
• stripping and overhauling the SAG and ball mill motors
• emptying, cleaning repairing and repainting the leach tanks
• removing and lining the elution column and replacing the carbon transfer vessel
• cleaning and overhauling the tailings lines and pumps
• Finite Element Study on the SAG Mill to enable us to more fully understand its future
maintenance needs
• Replacement and corrosion removal of structural members in the various buildings
• Relining SAG and Ball Mills
Much of this work involves the use of large cranes, sandblasters, painting, fabrication
and welding and extra truck traffic delivering and removing equipment. There are
approximately 60 contractors as well as suppliers working with our staff to carry out
specialist tasks including Mount Maunganui Engineering, General Engineering, Porter
Engineering, ISS, Hutchins Engineering, Bay Sandblasting, Valley Sandblasting, Coastal
Sandblasting, Pollock Cranes. AWF, TRL, Kawerau Engineering, Applied Conveyors, SGS,
Baxter Electrical, Contract Resources
Most of these extra contractors are from the local area and are familiar with our operations.
As we announced midway through last year, this maintenance shutdown is an opportunity
that has arisen due to there being a gap in the supply of ore to the mill in early 2012. The
open pit is excavating limited amounts of ore to feed the mill while development continues
in the layback to the east wall of the Martha open pit. The Favona underground operation
is also providing very little ore as it has been winding down towards completion. The Trio
underground operation is scheduled to begin supplying ore later this year.
When the mill is up and running again the machinery will be optimised and updated to see
us well into the future.
It's a holiday in Canada, Victoria Day, 21st May. Some financial and exploration data due out from GEL HQ soon. Here's the background to many goldies at the moment: HUI has been dropping, but staged a pin reversal in the last few days. Newmont and Barrick Gold follow the HUI strongly, as expected.
Just had a scan of permits at NZPAM (as you do) and Glass Earth has surrendered the Hindon permit in Otago recently. So from that, I'd guess the drilling at Hindon and Game Hen wasn't exciting compared to other ground they have. It wasn't entered into my hi-tech valuation chart except as an option, so just as well. But at least we know that area won't do the job. That's exploration so they say, drill the best bets, but you won't always find anything much.
Nothing else has been dropped from the permit list, and Garibaldi is a recent new find to be drilled.
This autumn Mining newsletter has some stories on Talisman, Newmont, Alton Drilling and Glass Earth. Both of the GEL online presentations and the article fail to mention Game Hen or Hindon, but do mention Garibaldi, WKP, Muirs.
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Originally Posted by Vtrader
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