The website was updated today, with a new permit application added that I've missed picking up on. This is (appl) EP 55162, called Okato. It's in Colac Bay, Southland. Right beside an existing smaller permit, Wakapatu (the one that looks like a begging dog). They are just looking for gold, and it'll be a placer operation. 100% owner would be Goldmines NZ, GEL the operator. GEL owns Goldmines NZ 100%.
791.58Ha. Colac Bay is mentioned in the 2012 Newsletter that I also missed.
There are some great comments and photos here. None of the cross-pit conveyor, but the GRU running full bore looks fairly impressive.
Round Hill, the area is known for very fine gold. Floats in water. Sounds familiar. This story is about the Golden Bush permit, no. MP 52925 in the middle of GEL's permit application.
There is still only one big story for GEL at the moment, it is WKP. The new technical report and the website mention the generation of a "Project First Resource Estimate" for the Eastern Graben-Central area of WKP. This will happen sometime in 2013, with various interpretations of the timing being possible. Is there nearly enough data there now, or do they need to do the rest of the 2012 drilling program first?
Remember that Newmont would probably require an underground resource of sensible grade with a total in the region of 3Moz to 5Moz. There is already a vast but broken area of low grade near surface, which looks more like an opencast proposition, elsewhere on the permit.
Here is what can happen to a share when a resource estimate comes out at 3Moz, in this case the grade was only about 1g/tonne. Alkane Resources in Aussie (ALK). About an 8 bagger within a few months.
You are too kind ynot..it's a bit of an up and down share, is GEL. Mostly down so far. None of us are here for the dividends, it has to be interesting as a capital gain stock.
That example of Alkane Resource's shareprice is not so unusual, and follows a pattern that Brent Cook mentions. When a junior explorer finds a mine prospect, the share often peaks and then drops back for a bit as investors see the reality of the costs involved in a mine.
Alkane had to reply to the ASK at least twice about the unusual volume and price for their shares leading up to the peak. They also raised $21mill during the run-up. Their recent books and the records show that they have yet to provide any income streams - three years on they are still exploring and spending investor funds.
Getting back to Glass Earth, this company has an income stream that will be at least $15mill a year soon. It has staff and overheads, but should be able to make a profit. Maybe quite a big profit, if it finds the right placer permits. And then they have serious hard-rock permits like WKP, Muirs and Neavesville, with Ophir and Garibaldi in the South Island.
I think they've done well to get themselves into this position, although they could do better at explaining it to the market. Maybe next week, they'll have had time to prepare something. It's been a month since any news was offered up.
I hear ya EZ. To be honest i reckon the only thing holding them back now is the fact i'm shareholder.
My record is not that hot.
Mine's not that good either (no pun intended). But shares are only a part of my investments.
GEL has been a bit up and down all right. On the Canadian market, many have come to put a strong link for that to Brent Cook's paid newsletter. The comments inside it are fiercely guarded on the internet. Brent has recently put a sell notice on GEL and CTG, and in GEL's case he held the share for 18 months, and helped out with some PR work over here.
Some on Stockhouse argue that Mr Cook is in a prime position to profit from picking up (and then dropping) small-cap shares in advance of the newsletter, and perhaps buying after the havoc that resulted from a sell recommendation. He has some kind of a policy in place about that, but it is far from clear.
Oceansun on Stockhouse, the CTG thread:
I for one very much welcome and enjoy Sams posts on this and the GEL board. I don't think you can discuss CTG or GEL stocks at this point without including in the discussion the huge impact Brent Cook and his readers have had on both stocks. If you own shares in any of the stocks in his portfolio you darn well better be prepared for the day the share price is cut in half or worse as a direct result of comments made in the letter. So yes, Brent Cook has to be a large part of the conversation when discussing these stocks. In the cases of CTG and GEL shareholders can actually rest a little easier knowing that the Cook factor has now been removed from the situation (at least for now) .
Read more at http://www.stockhouse.com/bullboards...zlCW7ZOMqrJ.99
A poster kbCook (who I'd expect is Brent Cook), put up a rare post on Stockhouse on 14th February explaining what he'd said in the subscriber newsletter about GEL and another share (CTG).
The EI Newsletter comes out on Sundays apparently, so 10th February, and the first trading day would have been 11th February. You can see the effect on the shares. It was much worse for CTG percentage-wise, because GEL had just announced another PP, and the shareprice had already dropped down to its lower level.
I thought it might be interesting to go back and see what happened when Brent Cook first reported both CTG and GEL as buys for his own investments. Both shares are fairly small Mcaps, under about $40mill generally. You can see from the charts that in both cases there was an uncanny boost in the share price at the time. I didn't have a clue what caused it for GEL back then. For CTG it was on March 11 2011, and for GEL it was around July 2011. The pattern from then on was the same: a great price increase on the share, a peak and a drop, followed by some bursts as good press results came out, and then a drift back below the start point, followed by a sell result. Some of Brent's other picks had great results in the interim, some gains over 300% p.a, giving him a good average for the year.
I bet there is one thing in common with his junior picks: a price ramp on the first buy mention.
Two of the shares that Brent has been mentioning in interviews lately are Goldquest (GQC) and Almaden Minerals (AMM). The chart below shows what happened with these two. Brent mentioned he was buying GQC on May 23 2012. Within a few days the price was helped along further with a press release that they'd drilled a fairly good intercept. It became well over a 25-bagger before dropping back. It had started out as a fairly smallcap company at the buy date, so Brent's picking had a bigger effect.
On Almaden, the point at which Brent went public was harder to see (sometime August 2012?), and the best result was not even a doubling of the price. But this share had a bigger starting capital, not so illiquid.
In the case of Goldquest, anyone following Brent's picks here would have had a life-changing experience if they sold near the peak. That's great news for the subscribers. The only issue someone like myself has (who happens to be interested in one of the smaller shares Brent got involved in) is whether he is happy enough to win some, lose some, or is he trying to make a dollar on every single share? Would we then have to second-guess that GEL would have made a good shorting option a few weeks back, and even that its current buy price is a bit of a bargain?
Edit: Brent Cook said he was buying or holding Almaden on 2 Nov 2010, 7 March 2011, 15 Sept 2011, 7 March 2012, 2nd May 2012, 27 Sept 2012, 6 March 2013, according to a site which follows picks by the best commentators.
Another site had this to say:
Another item of interest for market participants: The Drill Play is Back! Remember the good old times of the mid-2000′s and then again during QE1 and QE2 when stocks would move up dramatically on drill assay results and trenching figures? Well, those times are starting to come back except this time around a Company has to have better than average management, iron-clad results and having a tout by Brent Cook helps.Some of the recent examples include:
GoldQuest Mining (TSXV: GQC) – in May the shares were trading below 5 cents and last month they hit $2.03. They have announced 6 closely space drill holes and closed on $21.57M in equity financings.
Reservoir Minerals (TSXV: RMC) – in July the shares were hovering around the mid-50 cent level and just yesterday they traded to a high of $3.48. They have announced 2 drill holes and have a very generous JV with Freeport.
Brent has RMC on his list too. GQC may have been dropped recently, on 6 March 2013 he said it failed to meet their criteria but it was still rated a hold by the site repeating the finding.
I hope I haven't wasted my time on this research. It looks to me like Brent Cook is capable of picking some useful companies, and when he does, there is always a following with him, into the share. In GEL's case they did have some good drills that came out afterwards, but they weren't huge. Ongoing capital raisings through PPs have clipped back the share, despite any of the enthusiasm Brent and others brought to it.
It is now up to Glass Earth management to prove to shareholders that the placer investment will solve any cash requirements for G&A, staff and modest exploration costs. If they can get the cashflow issue sorted, like any business, then they can have a go at all the more exciting stuff. Shareholders have been tapped on the shoulder enough, already.
Looks like my research on Almaden Minerals (AMM) was a bit out, I missed the spectacular increase when they first found the big scale Ixtaca deposit, mentioned in July-August 2010.
This interview shows that Brent was quickly onto it, and bought the share near that time (2.5 years before January 2013). Again, a big increase in the share price followed, although it has drifted down a bit since. It might still be a great buy at the moment.
They have sold off six other prospects to concentrate on this one, and another copper/gold prospect. Three drills working at Ixtaca, March 2013.
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Originally Posted by ynot
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