Heritage Gold...HGD

[STRAT]

Scrappy

There will always be "opposition to mining" of any sort, however I suspect management have chosen there mining and processing plant options with all this in mind and gone for the path of least resistance. :D

I see the application for a mining permit as a big step forward for the company and look for great results from the Mystery vein.

This is the sort of news that we have been waiting for and am sure there is more to come ;)

OilerHuge news I would have thought Oiler. :eek:
And looking nicely priced for an entry. Whats another 6 months after this many years of inactivity eh?

Still watching ;)

[whatsup]

So why is Trent planning to pull out of HGD next year?

[STRAT]

So why is Trent planning to pull out of HGD next year?A very important question Whatsup.

Better offer?
tired of getting cobwebs on his suit?

I would like to know too. Its always a worry when a CEO jumps ship at what seems like a time when a company maker is playing out.

[BAPP]

Few gone thru this morning........would be interesting to know more of what is planned.. if the application is granted..... any thoughts BAP ?

disc..... purchased more today.

cheers Croesus.

Hi Croesus,

IMO the application for a mining permit at Talisman is a very important step forward. I would suggest that any potential JV partners will want to ensure there is no restrictions placed on mining this area before they commit (provide cash) to such a project.

I believe there are currently interested parties and therefore this is a crucial step for HGD to gain some credence. Obviously the granting of a permit licence would be one step better.

I would be very surprised if there were any issues with the permit application. Trent will have done his 'homework' and this is an existing mine and mining area.

IMO it will take about 6-12 months to get a mine like Talisman operational again.. that's an educated quess!:) and the permit could take up to 6 months according to the announcement. I would suggest the timeframe could be a lot shorter given the history of the mine, however there is still some time to wait.

The price of gold may well play its part in the speed of an outcome.:)

Can hardly wait 'til they start 'pulling out' high ore from the Mystery vein.;)

Cheers
BP:)

Disc: Holding.

[BAPP]

Link to Herald article

http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=10543780

Cheers
BP:)

[skeet]

He said there had been some overseas interest in the Talisman project...

No idea where from or who it may be??

[Oiler]

No idea where from or who it may be??

I suspect "from or who it may be" is confidential at this point but I do believe there is definite interest from potential partners. The next couple of months should tell all. ;)

Oiler

[Jess9]

Gold near $800 again. Great to see it gaining support when other metals have failed. As noted by others here, gold over $1,000 would see a very fast payback from the Talisman...and with a mining permit now in process... what an opportunity for the right JV party, this must be looking better and better.

I wonder if any deal will include management of the mine? Depending on the party's expertise - this would make a lot of sense with Trent leaving.

[Jess9]

$825.60 today : )

[croesus]

Would be interested to know who is interested as a possible J.V partner on the premise the permit gains approval.

IMHO that would firm the shareprice up...

cheers C.

[JBmurc]

$825.60 today : )

or more importantly $1500+ NZD might have to buy some more at these low prices with oil down miners per oz costs will also be looking very profitable

[Jess9]

Agree, could be a very nice hedge if the NZD continues down.

[etrader]

http://news.smh.com.au/business/heritage-revenue-doubles-in-half-year-20081126-6ilb.html

A rare article in SMH, at least it's something.

[BAPP]

http://news.smh.com.au/business/heritage-revenue-doubles-in-half-year-20081126-6ilb.html

A rare article in SMH, at least it's something.

Yes.. and all the top 20 shareholders are still holding.

Cheers
BP:)

[croesus]

Hi Bap.

If its no hassle could you cut and paste the current top 20 on to Sharetrader.
Thanks in advance.

Cheers Croesus.
Had been hoping a potential suitor may have been buying a few.

[doon]

Hi Bap.

If its no hassle could you cut and paste the current top 20 on to Sharetrader.
Thanks in advance.

Cheers Croesus.
Had been hoping a potential suitor may have been buying a few.

Why don't you have a look at the web site?? :)
http://www.heritagegold.co.nz/irShareholding.html

[croesus]

Because I have noted in the past they do not keep changes up to date... I get a print out from the Stock exchange via my sharebroker..

[doon]

Because I have noted in the past they do not keep changes up to date... I get a print out from the Stock exchange via my sharebroker..

In this case: SHAREHOLDING STATISTICS AS AT 21 NOVEMBER 2008
Would imagine this should be up to date as at 21st November, or else they are posting misleading information!
Have you found they have posted misleading information in the past, or not posted up to date information?

[BAPP]

I'm pretty sure the shareholder list on the website is 'up to date' as at 21st November. http://www.heritagegold.co.nz/irShareholding.html

They have kept this list regularly updated over the past year or so, but I do remember in the past when it was very un-reliable.

Croesus, here is a copy of the list for your info.

Cheers
BP:)

SO CO LIMITED - 20,000,000 (6.95%)
FORTIS CLEARING NOMINEES PTY LIMITED - 12,268,206 (4.26%)
PETER ROBERT ATKINSON - 10,901,950 (3.79%)
BESTFIELD COMPANY - 9,700,000 (3.37%)
HFT NOMINEES LTD -7,230,085 (2.51%)
INTERNATIONAL PACIFIC CAPITAL LIMITED - 6,388,685 (2.22%)
HAMISH EDWARD ELLIOT BROWN -6,000,000 (2.09%)
BRETT ANTHONY PHILLIPS -5,500,000 (1.91%)
BASIL COURTNEY MCGIRR - 5,378,905 (1.87%)
PROPHECY MINING LIMITED - 5,300,000 (1.84%)
EASTERN PORPHRY PTY LTD - 4,500,000 (1.56%)
ELINORA INVESTMENTS PTY LTD - 4,500,000 (1.56%)
PETER WILLIAM HALL - 4,000,000 (1.39%)
TROYWARD PTY LTD - 3,000,000 (1.04%)
RELATIVITY PTY LTD - 2,849,904 (0.99%)
PACIFIC GOLD RESOURCES LIMITED - 2,790,000 (0.97%)
FEOH PTY LTD - 2,700,000 (0.94%)
JAMES LEE MCGIRR - 2,682,458 (0.93%)
RELATIVITY PTY LTD - 2,676,904 (0.93%)
I E PROPERTIES PTY LTD - 2,519,999 (0.88%)

TOTAL FOR TOP 20 120,887,096 (42.02%)
TOTAL SHARES 287,703,320 (100%)

[croesus]

Doom. I am sure 21st is fine... must admit did not look tonite.. but yes in the past they have been slow to update... never said anything about misleading information.. where did you get that silly idea from ?

[croesus]

Thanks for the update BAP...
cheers Croesus.

[ScrappyO]

Dont think we will see a listing for BHCL for a while....Cobalt price heading down big time.

http://cobalt.bhpbilliton.com/

[Jess9]

Agree. But gold is looking very shiny : )

[mistymountain]

Despite all the postive postings on this thread the share price trend is fairly obvious.

My prediction that this company will be bankrupt within two years.

Not even BAP will save this one.

Would have been better to pan for one's own gold.

[Greenfield]

Despite all the postive postings on this thread the share price trend is fairly obvious.

My prediction that this company will be bankrupt within two years.

Not even BAP will save this one.

Would have been better to pan for one's own gold.


You could say that about most companys and be right.

and in two yrs who will remember your prediction.

[Jess9]

I haven't yet written this one off. 1m plus oz is very possibly and all in good safe ole NZ. My concern is to have a fighting chance off delivering this, HGD needs a good captain at the helm to keep the pace. What is the board planning post Trent's departure?

[BAPP]

Best wishes to all the HGD faithful and contributors.

I hope you all have a great Christmas and New Year....

and lets hope for a turnaround in our fortunes in 2009.;)

Cheers
BP:)

[Jess9]

Maybe news in the pipeline?? (fingers x'd) markets showing some buyer/depth building AND on xmas eve with everyone on holiday and a short trading day (4pm final close today I think).

Merry Christmas to you as well BAP, and all thread contributers. Have a great, and indeed well earned holiday!!

[Jess9]

ASX too!! Close today, bulls or bears????

[Jess9]

and up she goess!!! 30%.

[Jess9]

http://www.globeinvestor.com/servlet/story/GAM.20081224.RMAINTICKERBARRICK24/GIStory/

ex www.kitco.com: The large players who have strong balance sheets are very well positioned now to cherry pick and add very cheap resource via acquisitions, to develop when gold (likely IMO) heads into new (2009/10) highs.

HGD: Very interesting trades today. A very cautious looking bull was the winner. Not shy either, volume wise.

[Tok3n]

Are you guys taking the piss? :)

$7800 value of that trade.

[Jess9]

On the day and for both exchanges a total of 1,500,000 traded at VWAP 1.6 NZ. Also outstanding buy orders for another 1,300,000 appeared. Thats a notably change from recent activity in my book. Why? Could be a random shot gun entry. Could also be a turn and the start of something more. We know there is drill work and JV discussions in progress and a pre-feasibility study that shows very good returns are there. If anything concrete is about to occur it should pop out soon, or else the price will settle back down..ho hum. Lets see if there is any follow through in the next week or two, price and volume wise. Mr market knows best. Of interest a 10 bagger would now be returned at 16c.

[Jess9]

HGD should re-rate when it moves from explorer only to miner/explorer. The Talisman application this month could be the start of this change, if granted shortly AND followed through (application of pre-feas study plan). Alot of what ifs again...

[corran]

... Of interest a 10 bagger would now be returned at 16c.

yeah, at the current price I am tempted to take a punt on HGD. In the past there have been some pretty big leaps in the share price on positive news (even if the news hasn't actually amounted to anything yet).

What I see as negatives are:
- that they've been around for 20 years and are still an explorer trying to define a resource.

- that the MD has resigned after only a year in the job. I would have thought his 8,000,000 options would have been a good incentive to stick around for a bit longer.

- their cash position isn't great (I guess they must have under a million left now?)

- they're reliant on establishing joint ventures to get Talisman and some of the other tenements going which I imagine will be very difficult to secure given the market conditions.

- The Cobalt and Uranium interests seems like a bit of a have to me.


However I am bullish on the price of gold and if some very positive news on Talisman was to be announced I could see the share price being some multiples higher than what it is now.

But there are still a lot of 'if's....'. I've been burnt slightly by HGD before so am wary but still curious...

[Jess9]

Spot on Corran.

[Jess9]

On the positive side, my understanding is that Talisman is very likely to contain 1m+ oz of gold plus silver. This just on one of the exploration permits. Next the mining permit/plan for Talisman/rahu has been lodged so the development is now much, much closer. To me this is a big change in coy mindset as it evidences a level of commitment to move into production (from exploration only). Further upside later, is the massive aeromag anomaly identified earlier this year (stated to be of a comparable size of the Martha footprint). Importantly this sits within a permit adjoining Newmont's Martha pit. Then the gold price is looking set for another run in 09. Remember it is up considerable from recent years lows of about 250/oz USD.

On the negative, it is not yet clear who will lead Talisman development when Trent leaves. IMO the coy need to discuss this when they can ASAP. Next it is not clear how far along any JV agreements are. While the coy has indicated it will start on there own, JV is the preference. To date and as you note, cash is dwindling. Markets also have been through a maelstrom of epic proportions (as we all know).

Weigh it all up and accept that HGD has to date been further discounted to 1.6c NZ (from about 5 - when it looked cheap!) and it could be a great 09 investment. 1.6c to 16 would be a very nice return. Mind you, HGD at 0.8 is still a 50% capital loss if all does not eventuate! DYOR.

[Jess9]

http://www.nasdaq.com/aspxcontent/NewsStory.aspx?cpath=20081226/ACQRTT200812261541RTTRADERUSEQUITY_0223.htm&&mypage=newsheadlines&title=Gold%20Surges%20Amid%20Geopolitical%20Tensio ns%20Friday

[BAPP]

Hi Jess9,

I would expect to hear an announcement regarding the mining permit reasonably early in the New Year, however I wonder whether any announcement regarding JV's would be dependent on how the markets begin the year. (?)

There are several option packages which expire in 2009, so improving the share price prior to the expiry dates will be critical for further funding.

Management does not have a good track record with warrants and options, but the future existence of HGD may well depend on option holders this time around.

Cheers
BP:)

[Jess9]

Hi BAP. I also wonder if there will be a new drill completion announcement early Jan. I thought that there was a drill rig working above the Talisman in November?? If so it would be nice were it to finally hit some high grades/veins. That would make for a nice start to the new year!

[JBmurc]

yeah, at the current price I am tempted to take a punt on HGD. In the past there have been some pretty big leaps in the share price on positive news (even if the news hasn't actually amounted to anything yet).

What I see as negatives are:
- that they've been around for 20 years and are still an explorer trying to define a resource.

- that the MD has resigned after only a year in the job. I would have thought his 8,000,000 options would have been a good incentive to stick around for a bit longer.

- their cash position isn't great (I guess they must have under a million left now?)

- they're reliant on establishing joint ventures to get Talisman and some of the other tenements going which I imagine will be very difficult to secure given the market conditions.

- The Cobalt and Uranium interests seems like a bit of a have to me.


However I am bullish on the price of gold and if some very positive news on Talisman was to be announced I could see the share price being some multiples higher than what it is now.

But there are still a lot of 'if's....'. I've been burnt slightly by HGD before so am wary but still curious...


Pretty sure I seen over 1mill left in the bank Cash & receivables at 1.6mill in the lastest Qtr report

[tobo]

From Sept08 report :
Net operating cashflows for quarter was $820,000
(was $1.7m for 6 mnths to date)
Cash at end of quarter was then $1.6m
Estimated cash outflows for next quarter 400,000

So they were intending to reduce cash burn rate from 800k to 400k for the last quarter of the year.
This would leave a cash balance about now of $1.2m, which could be 4 to 9 months worth of cash burn.
That's 4 to 9 months before some significant news is required to rerate the sp (to enable cash raising).

ToBo

[BAPP]

From memory I think Mr Grigor holds 3 million unlisted options which expire mid April and then there are 35+million options which expire in November '09.

These options 'could' provide upwards of $3.6 million of further funding, about the time HGD will be getting desperate for cash.

I'm sure the focus will be on moving the Talisman to production, but a JV partner will be required for cashflow, expertise and processing the ore.

I would suspect the announcements will be 'timed' to assure uptake of the options.

Cheers
BP:)

As always this is only my opinion. DYOR
Disc: holding and will look to accumulate over the next quarter.

[BAPP]

This article maybe of interest to anyone thinking about investing in gold or gold producers and explorers over the next year.

http://www.theaureport.com/pub/na/1991

Cheers
BP:)

[Jess9]

Wide spread on NZX. ASX may be cheaper entry today.

[Tanger]

Depth building this morning. A lot more buyers interested on both NZX and ASX. It does beg the question "what do they know that we don't, yet??". If there was to be an announcement in the next few days, would there be an investigation? Probably not as not on the radar of a wide range of people.

[JBmurc]

Massive 100%+ very low volume rise today ,looks like mid 2c going by depth must have been a open no-limit buy today ,hopefully there's some real good news coming are way

[Jess9]

Background info...gold up again and not yet into 2009!

[Jess9]

All goldies up today. Very good start for HGD as it went higher than most. As you note JBMurch. Much greater volume still needed to confirm any such increase...lets see where this goes over the next week or so. Hopefully the real turn (after a few false starts to date) is here. Be great to see 9-10c again : )

[Jess9]

2009 oppies may be in favor again soon if price gets somewhat higher. Good leverage possible, depending on option entry price vs head price at purchase. Risk is that they expire in November 2009, unused.

[Jess9]

ASX sell depth looking rather thin at the moment.

[BAPP]

ASX sell depth looking rather thin at the moment.

Hi Jess9,

Yes and just the opposite on the NZ market.

I wonder if the lower cost of oil will 'work' in favour of HGD in any JV discussions?

The forecast costs of operation at Talisman are quite low per ounce and the drop in fuel costs could help with transporting ore for treatment.

Any thoughts?

Cheers
BP:)

[Jess9]

Lower oil could certainly help. The big one is really the resource story. IF 1m+ oz of gold and several million oz silver can be "quickly" (< 6 months) proved up (over and above Talisman's 205K JORC gold and 800K silver on the books now) AND HGD very shortly (< 3 months) receive a 20 year mine permit, outright t/o may even be worth watching out for again in 2009. NZ operations are nice and safe, no nataionalisation or riots. Virtually no political risk, and a new government likely to be pro mining all located in an existing "mining town" with all associated infractstucture. HGD could provide an existing producer quick and large resource/acerage addition. Hopefully not too cheap however for the benefit of current share/option holders ; ) Were Golden valley to be the next Martha...t/o is a no brainer. The big question is whether HGD is on any such producers' radar. Again, a LOT of what ifs (so readers DYOR!!); but some exciting possibilities emerging again, and very quickly on the coat tails of a buoyant gold price AND investor money flowing back into a heavily oversold gold shares.

[BAPP]

[QUOTE=Jess9;238258]Lower oil could certainly help. The big one is really the resource story. IF 1m+ oz of gold and several million oz silver can be "quickly" (< 6 months) proved up (over and above Talisman's 205K JORC gold and 800K silver on the books now) AND HGD very shortly (< 3 months) receive a 20 year mine permit, outright t/o may even be worth watching out for again in 2009.

Hi Jess9,

Agreed, however I would also point out that it will be potential profits that will likely create the interest for any JV partner.

You can mine/produce as many tonnes of ore or ounces of gold and silver as you like, but it is the difference between the costs incurred and the selling price which ultimately matters.

I'm sure management will be highlighting the JORC resource levels and further potential resource... and there must also be advantages (cost -wise)with the Talisman already being a partially established mine.

Basically mining can start immediately once management can find a solution to treating the ore. Also there are vein systems running through the Talisman and systems like the Mystery vein have 'barely' been test drilled.

Cheers
BP:)

As always DYOR.

[Jess9]

Up nicely today. ATM, cheapest entry via ASX. Bids are gappy on both exchanges, showing some uncertainty in the market, but heading upwards none the less!

[croesus]

Pleased I got more at 1.6c a month or so back........ but we need a few more runs on the board re drilling results etc...... anyway best wishes for the New Year to all Sharetrader followers.

cheers Croesus.

[croesus]

P.S Interesting interview on Bloomberg re Jim Rogers.. and his take on the year ahead..

[Jess9]

TA wise, great to see a strong punch through the 2008 down trend, other supporting indicators also positive. Through 4c next (on volume) should signal this one is set to really run.

[Jess9]

P.S Interesting interview on Bloomberg re Jim Rogers.. and his take on the year ahead..

If the USD continues to fall, by default gold (quoted in USD) will rise dramatically. Interesting to see if it picks up even greater support as a more use it (gold) as a either a change over (from USD) currency or more broadly as a store of foreign currency (as it was in the past). THE advantage is, they cant print no more!

[Jess9]

Hi Jess9,

Yes and just the opposite on the NZ market.

I wonder if the lower cost of oil will 'work' in favour of HGD in any JV discussions?

The forecast costs of operation at Talisman are quite low per ounce and the drop in fuel costs could help with transporting ore for treatment.

Any thoughts?

Cheers
BP:)


Your angle being to get cashflow from gold sales up and running straight after the granting of the mine permit? Processing their existing stock piles of historic ore ("stope"?) maybe the hammer to crack a tough nut. It could immediately finance HGD into staged opening of the mine and the additional reserve certification (i.e. booking up the mystery vein) needed for BFS and into full scale production later in 2009. Were NZ producers to say no, I wonder how feasible, short term it would be to ship ore straight to an AUS operation for refinement and sales? Many more coys over there AND some such agreement could even lead to a closer strategic relationship re mining expertise/management.

[JBmurc]

I really can't see why NEM won't allow HGD to process their ore for a higher cost both parties would win HGD cost to get out of ground sound very cheap NEM could take easy take a nice margin.
In talking with Peter he did state how relationships between the two isn't great like it was in the past under a different NEM NZ manager
I guess the most likely scenario will be HGD doing the hard work proving up a resource an NEM coming along an buying up the lot for a song still if they pay over 10c I'd be happy

[Jess9]

Double that, and an acquirer would still be getting great value.

[etrader]

interesting movement in the last 3 trading days of the year, with no news and an increase of near on 100% in SP one wonders is there a little something in the wings most of us don't know or just pure spec on the stock, even the asx which is normally quieter and trades for less had a movement pre Christmas.

I along with other faithful investors and those that have been lucky to go underground and visit pin their hopes on 09 that the reason we researched and purchased this penny dreadful will reap the rewards, even if the stock got to .10C I would be happy as that was the peak in 07 post U info which has no passed.

interesting to see sellers not so willing to dump and the buy price and have quite a jump in sell order up to .07c.

Good luck to those investors who hang in there in 09, and lets hope the long lost farm in or J.V or agreement with processing plus the mining licence can happen.

[BAPP]

Your angle being to get cashflow from gold sales up and running straight after the granting of the mine permit? Processing their existing stock piles of historic ore ("stope"?) maybe the hammer to crack a tough nut. It could immediately finance HGD into staged opening of the mine and the additional reserve certification (i.e. booking up the mystery vein) needed for BFS and into full scale production later in 2009. Were NZ producers to say no, I wonder how feasible, short term it would be to ship ore straight to an AUS operation for refinement and sales? Many more coys over there AND some such agreement could even lead to a closer strategic relationship re mining expertise/management.

Hi Jess9,

You hit on it IMO,

Trent has told us outright that there is almost no possibility of Newmont or Oceania treating/refining ore for HGD.

(Newmont seems to be taking the stance that they're the 'big boys' on the block and if they hold out long enough HGD will collapse, so they can 'pick up' the HGD permits areas for next to nothing from the government. However HGD has been around a long time now and Peter and co. have seen the company through some pretty tough economic times before. )

I believe the Talisman could be upgraded for low volume production within 6 months and to a level of 50k oz/annum within a year, however at this stage the ore would only be stock piled until a treatment facility was established.

HGD does not have the funds(or time) to do this alone, so a JV partner is crucial for the next steps.

I would suggest that transporting the ore overseas for treatment would be far to expensive, however with the price of gold improving and fuel prices deceasing this may have changed and be a 'short term' option.(?)

The low cost of production, exchange rates and lower fuel costs, may help to offset the transport cost in the short term while a full upgrade of the Talisman is set in place and a processing and treatment plant is built.

My understanding is that it would take around $15-20 million (not alot IMO) to build a treatment plant and there is a designated site very handy to the Talisman mine. I would assume this would also be incorporated into the mining permit?

Anyway this is all speculation... and as Croesus rightly indicates we need those announcements to start flowing through.

if there was a mining permit approved, a BFS undertaken and a JV partner announced we would see some very interesting times ahead IMO.

Fingers crossed.

Cheers
BP:)

[Jess9]

http://www.heritagegold.co.nz/reportArchive/ASX%20Talisman%20Resources%20311008.pdf

Hi BAP. I see that HGD's JORC resource shows 360oz of gold in stockpile with 1,740oz of silver, in good grades. Were this sold, it could gross about $550,000 NZD. The estimated weight of all this is 590 tonnes. About 30 container loads? To heavy to ship at a good profit? If so, I wonder whether this could be partially concentrated onsite when (knock on wood) the mine permit is granted. Were more stope around and of a good grade, it could be enough to kick start self funded MINING. Be lovely to see HGD become a producer in 2009, finally : )

[Jess9]

The above is on gold at 875/oz USD and Silver $10/oz and a Kiwi/USD of .59. Any increase would be additional "funding" dollar to HGD. Anyway, Trent seems very capable. Lets see what he can accomplish in the next 12 weeks.

[Jess9]

Looking over at the last quarterly..the completed Talisman Scoping Study has targeted geological potential of between 827,000 oz and 3,300,000 oz of gold and 797,000 to 9,800,000 oz of silver. IT ALSO CLEARLY STATES THIS IS NOT JORC (at least not yet ; ).

Hopefully the share price increase/interest over the last few week or so is the market waking up to the potential $$ value of such a size resource applying rising 2009 gold and silver prices. Come on Newmont, these targets AND Waihi North, just gotta be of interest... at the right price of course - 20c plus ; ) A nice dream, for now at least!!

[Jess9]

Re the dream thing, flex the above resource scenario's through a spreadsheet (at say 5-10% gross value to adjust for the Scoping Study's target/and in ground status) and the numbers are many many multiples greater than where HGD is currently valued and thats using todays rates!

[BAPP]

Looking over at the last quarterly..the completed Talisman Scoping Study has targeted geological potential of between 827,000 oz and 3,300,000 oz of gold and 797,000 to 9,800,000 oz of silver. IT ALSO CLEARLY STATES THIS IS NOT JORC (at least not yet ; ).

Hopefully the share price increase/interest over the last few week or so is the market waking up to the potential $$ value of such a size resource applying rising 2009 gold and silver prices. Come on Newmont, these targets AND Waihi North, just gotta be of interest... at the right price of course - 20c plus ; ) A nice dream, for now at least!!

Hi Jess9,

Any conventional thinking would assume that Newmont would show some interest in the HGD permits and resource.... but that doesn't seem to be the case at present.

IMO the share price even assuming the the above targets were reduced to a 1/3 of the estimates stated should realise a value closer to 50 cents if a local producer was to use their existing facilities to treat the ore over the next 10 years. (hmm!) seems simple to a layman.

Of course this is 'pie in the sky stuff' when the price is lingering at 2-3 cents.

Will be interesting to see who can hold out the longest or maybe the question should be... will Newmont miss an opportunity?

Cheers
BP:)

[Jess9]

Were another offer put on the table shortly, as you say BAP, Newmont may have to suddenly have to change their wait and see strategy if they don't want to loose acquiring gold and silver potential of up to 3.3m au and 10m oz ag oz basically next door! It may also cost them alot more : )

After the carnage of 2008, it would be a tonic to have a nice run-up, were another party suddenly interested. All of this is pure spec at this stage of course!! But acquiring cheaply produced resource is a likely a plan for alot of producers in 2009. HGD will also shortly have a mining permit in place to extract/process Talisman/Rahu gold and silver. Of note the mine could be brought into production almost at once to take any advantage of current gold prices - were they to spike later this year... If Newmont plays it too cool it may have a major competitor locking up permits around its Martha mine soon. But as you say BAP, 2-3c now says it all for now, to date at least ; )

[BAPP]

Were another offer put on the table shortly, as you say BAP, Newmont may have to suddenly have to change their wait and see strategy if they don't want to loose acquiring gold and silver potential of up to 3.3m au and 10m oz ag oz basically next door! It may also cost them alot more : )

After the carnage of 2008, it would be a tonic to have a nice run-up, were another party suddenly interested. All of this is pure spec at this stage of course!! But acquiring cheaply produced resource is a likely a plan for alot of producers in 2009. HGD will also shortly have all its permit in place to mine Talisman/Rahu, meaning the mine could be brought into production almost at once to take any advantage of current gold prices - were they to spike later this year... If Newmont plays it too cool it may have a major competitor locking up permits around its Martha mine soon. But as you say BAP, 2-3c now says it all for now, to date at least ; )

Hi Jess9,

The question I'd ask here is whether having Newmont as a neighbouring competitor would create a deterrent for other producers to joint venture with HGD... or would it encourage other producers knowing that a mining operation can be successfully run 'down under'?

Many forecasters/analysts are suggesting that in 2009 mid to top tier producers will be looking to acquire juniors who have established resources and are able to start producing in the near future.

IMO this must put HGD on the radar.

The figures seem to stack up nicely so now we need someone who can front up with some mining gear and a treatment facility.:)

Cheers
BP:)

As always DYOR.

[croesus]

My opinion is.
Newmont are playing hardball in the hope HGD will go tits up, they understand how hard it will be for HGD to raise more funds.

We need a new shareholder who is prepared to inject/loan HGD funds.

Maybe the current S/P spike is foretelling this.

Croesus

[etrader]

Good to see a slight and steady increase daily, just hope it's gradual and based on a reason than just speculators trying for daily gains and what goes up fast must come down, until we get solid evidence of HGD direction, the much talked about possiblity of things moving forward which we've talked in depth turning to solid info then it will be interesting to see where the SP goes from there, mean time it's nice to see these increases of 100% from the last three trading days of 08 till now, even the asx had a 56% increase today, be it very small volume it's a start.

Good luck to those investors who've sunk their hard earned $ into this

[shasta]

My opinion is.
Newmont are playing hardball in the hope HGD will go tits up, they understand how hard it will be for HGD to raise more funds.

We need a new shareholder who is prepared to inject/loan HGD funds.

Maybe the current S/P spike is foretelling this.

Croesus

Are you so sure Newmont are even interested in HGD?

They are a 5m/oz per year gold operation, i doubt HGD is anywhere big enough to be on the radar...

If HGD built up a big resource base 10m+/oz then Newmont might come knocking, otherwise they may pick off HGD if it has funding problems.

I've compiled a NEM spreadsheet & there 1/4ly earnings are quite stunning! (When gold starts to run, look out :eek:)

[Jess9]

Are you so sure Newmont are even interested in HGD?

They are a 5m/oz per year gold operation, i doubt HGD is anywhere big enough to be on the radar...



Newmont took out The Martha Mine with a remaining resource of well less than 10m oz plus.

The Talisman Scoping study indicates a potential minimum level of gold sales would gross $687M NZD at todays rates. Were the maximum target achieved this would leap to $2.8B NZD (and Silver sales are not included in this estimate!!) My understanding is that the scoping study only includes Talisman and Rahu, NOT HGD's Golden Valley and Waihi North (adjoining Newmont's Marth pit) permits. HGD's current cap is just $8m NZD...

Using 10% as an in ground value, the minimum target per share (diluted for option uptake) is approximately 35c/share with the maximum potential target achieving $1.46/share from Talisman/rahu alone. NOTE the scoping study targets are not yet JORC resource!

Newmont with all its existing production infrastucture basically on site could easily increase its output by 50K to 100K oz pa for the next 10-20 years, especially were HGD to have the mine permit granted shortly (i.e. this saves alot of time from a cold start).

But you are right in that to date at least, Newmont has turned HGD the cold shoulder ; ) However, money talks and the dollar targets are getting very significant with the completion of the scoping study late last year vs HGD's current market cap.

[croesus]

Would we expect to hear .. wether or not permit is granted before March... ??.

cheers Croesus

[Jess9]

I would guess yes (maybe this month or next) but it was noted up to six months at a maximum (That would put it, at a maximum in April?). I assume this is a possibility, if any technical issue or further consultation is necessary as it the application is processed.

[BAPP]

Newmont took out The Martha Mine with a remaining resource of well less than 10m oz plus.

But you are right in that to date at least, Newmont has turned HGD the cold shoulder ; ) However, money talks and the dollar targets are getting very significant with the completion of the scoping study late last year vs HGD's current market cap.

Hi Jess9,

Remember also that 205Koz of gold at the Talsiman is JORC compliant and you are correct that the Scoping Study only covers the Talisman and Rahu permit.

The JORC compliant levels of silver could go along way to funding a treatment plant.

Once the mining permit is approved (hopefully in the next month or two)and with access to mining equipment and a 'treatment' plant cashflow from the Talisman can be generated reasonably quickly IMO.

Interestingly Newmont already have a JV with Glass Earth covering the permit areas not already held by HGD... so Newmont must be interested in prolonging their production life in the area. (As far as I'm aware they haven't had much success to date.:))

So it seems like a JV with Newmont would be a simple and very profitable solution for all parties, as you seem to suggest.

The question then remains... why there is no agreement being sort between HGD and Newmont?

At the last AGM the directors 'inferred' that it was simply a matter of Newmont waiting to get hold of their permits cheaply, as Newmont is assuming HGD were to run out of cash and fall over. They have been waiting for 20 years!

If HGD were to 'fall over' so to speak, the government would auction the permit leases to the best bidder for a pittance in comparison to the current underground value.

Which leaves HGD no other option than to seek support from any other interested JV partners IMO.

With the JORC compliant reserves and target levels suggested at Talisman/Rahu you would suspect there will be some interest, especially once a mining permit is approved.

Cheers
BP:)

As always DYOR.

[JBmurc]

If OGC sold their phippipines assets for a decent amount they would be an easy J.V as the only other NZ producer but sadly with current dept OGC are keeping focus on keeping afloat

[lager]

Haven't been here for a long time. Look ripe for a takeover of HGD. Just hope for a good investor who can see potential and reap the rewards.

[BAPP]

Anyone interested in gold, silver maybe interested in reading the articles from the following links:

http://www.theaureport.com/pub/na/2060

http://www.investmentrarities.com/
Go to the link: The Biggest Factor in the future price of silver.

For those of us with shares in HGD, you may get some 'comfort' from Eric Sprotts comments (approx half way through the article from the first link) about looking for companies with underground mines, with high grade ore as they have lower cost operations. Hmm... just like the Talisman mine? :)

.. and there is plenty of silver at Talisman/Rahu also.:)

Lets hope that mining permit is approved soon!

Cheers
BP:)

As always DYOR.

[croesus]

Thanks BAP, Will read those with a glass of Syrah later..... I am undecided where to go with HGD/HTM... ... tempted to buy more, sitting on approx 1/5th of your holding... but am bullish on my 2nd tier Oil stocks as well.. . HGD could well be a 10 bagger this year.. but we need.

A. Permit approval

B. Confirmed reserves

C. J.V Partner

D. Continuation of strong Gold Price

Hopefully a update from Trent will be forthcoming soon

cheers Croesus.

[BAPP]

Thanks BAP, Will read those with a glass of Syrah later..... I am undecided where to go with HGD/HTM... ... tempted to buy more, sitting on approx 1/5th of your holding... but am bullish on my 2nd tier Oil stocks as well.. . HGD could well be a 10 bagger this year.. but we need.

A. Permit approval

B. Confirmed reserves

C. J.V Partner

D. Continuation of strong Gold Price

Hopefully a update from Trent will be forthcoming soon

cheers Croesus.

Hi Croesus,

I would totally agree with all your points and would suggest that if these outcomes were to occur before Sept/Oct we will also likely see a good uptake of the options in November.

This could add a further $3.5milion to the HGD 'coffers' for further exploration and developments, easily pushing to HGD being a 10 bagger(+) this year IMO.

I also think the silver reserves (if confirmed) could lead to more interest from JV partners. I am bullish about both the gold and silver price over the next 18-24 months, but won't be surprised to see silver have the biggest % increase of the two. (as always time will tell).

Remember the drilling at Talisman has confirmed a JORC resource of 205,000 oz gold at a grade of 6.9g/t and 800,000 oz silver at a grade of 27 g/t and the estimated targets by HGD are up to 10-12 times this level.

I also believe that grades within the Mystery vein and some other areas of the Talisman have be a lot higher than this. The key point being that high grade ore from a low cost operation equals better profits.

I'm waiting to see an outcome on the mining permit before adding to my holding and I would rather pay a bit more for shares on an upward trend if the news suggests some action is underway.

Cheers
BP:)

[Jess9]

This is very interesting reading, and gives clues to the content of the updated study (not available)...

http://www.newsx.com.au/ftp/news/HGD272004125238.pdf

HGD leaped to 10c when its JORC increased from 110K to 205K, per phased development in the the study/plan, shame they lost way then. While shares on issue have climbed, the gold/silver prices have also!

With the 2008 change in HGD's MD and Board composition, lets see if focus can be maintained during 2009 to either outright production at Talisman or a lucrative take over offer somewhere along the way.

With gold set to breach and stay over $1,000 USD this year, ROI will be very fast to JV partners and IMO all HGD holders from its current price levels...but as ever, DYOR!!

[BAPP]

This is very interesting reading, and gives clues to the content of the updated study (not available)...

http://www.newsx.com.au/ftp/news/HGD272004125238.pdf

HGD leaped to 10c when its JORC increased from 110K to 205K, per phased development in the the study/plan, shame they lost way then. While shares on issue have climbed, the gold/silver prices have also!

With the 2008 change in HGD's MD and Board composition, lets see if focus can be maintained during 2009 to either outright production at Talisman or a lucrative take over offer somewhere along the way.

With gold set to breach and stay over $1,000 USD this year, ROI will be very fast to JV partners and IMO all HGD holders from its current price levels...but as ever, DYOR!!

Hi Jess9,

Also interesting is that the JORC compliant gold and silver resources alone could generate over NZ$320 million in revenues over a 5 year period based on a 'small' mining operation producing at around 50koz/annum and using today's pricing levels.

Naturally being able to taking an operation to the next step of production for ten years or more at between 50k-100koz per annum would provide the real ROI and encourage investment from possible JV partners.

So higher levels and grades of confirmed reserves would definitely add some excitement and provide some motivation to get production underway.

Of course one of the next steps for the company is to instigate a 'banking feasibility study' to provide clarification of such an economic outcome.

IMO Trent and the directors will be pushing this along to heighten the prospects of a JV partnership being established.

IMO any signal that these things are happening will have a positive affect on the share price.

Cheers
BP:)

As always DYOR.

[Jess9]

Volume up this week (2.65m) and price holding about 2.4c. Good start.

[Oiler]

Hi Jess9

Of course one of the next steps for the company is to instigate a 'banking feasibility study' to provide clarification of such an economic outcome.

IMO Trent and the directors will be pushing this along to heighten the prospects of a JV partnership being established.

IMO any signal that these things are happening will have a positive affect on the share price.

Cheers
BP:)

As always DYOR.

BAP

You have hit the nail on the head !!! Bank feasibility study and the directors pushing this along to increase the number of potential JV partners is a must.

We ...know the potential for HGD to shine is there, but management need to get that message across to potential JV partners.

Time will tell :D

I will continue to buy on the right signals ;)

Oiler

[BAPP]

BAP

You have hit the nail on the head !!! Bank feasibility study and the directors pushing this along to increase the number of potential JV partners is a must.

We ...know the potential for HGD to shine is there, but management need to get that message across to potential JV partners.

Time will tell :D

I will continue to buy on the right signals ;)

Oiler

Hi Oiler,

You're right.. some of us believe HGD has huge potential and have been long time supporters.

With the outlook for gold and silver seemingly very positive in 2009, there is every reason to believe that management should be able to finally realise this potential, albeit initially via a JV at the Talisman in all probability.

I'm however not sure whether management have a lot of time on their side. As you say time will tell, but IMO they have around 9-10 months to get some real action taking place.

IMO management can not afford to 'miss out' on the 'much needed' funding from the November options.

As you are aware from the AGM, the management seems dedicated to ensuring a positive JV outcome and I believe they will be successful in achieving the outcomes required.

The banking feasibility study and confirmed resources are all essential elements in the future success and progress, however IMO the permit approval, JV partnership and continued upward trend in gold and silver prices are the most important factors at this stage.

I am personally very bullish about the price of silver in the next 24 months and if the price, as some analysts suggest doubles or triples this year, it could bode very well considering HGD estimated silver resource.

Again IMO there is no doubt that any combination of these outcomes may finally provide that 10+ bagger outcome we have been predicting.

Lets hope in 2009 our long time faith in HGD finally proves to be warranted.

I'm looking forward to us returning to the Talisman and 'celebrating' some time this year.:)

Cheers
BP:)

As always DYOR

[Jess9]

Agree! I'd be very happy for another Talisman visit. This time however, to a working mine site!

[croesus]

I will be a starter.. would be good to put names to faces.

Croesus

[BAPP]

Agree! I'd be very happy for another Talisman visit. This time however, to a working mine site!

Hopefully we won't have to take our own wheel barrows and shovels!:D

Cheers
BP

[doon]

Hopefully we won't have to take our own wheel barrows and shovels!:D

Cheers
BP

I think it is time 'The Company' got their shovels out and did a little digging to provide some revenue. After so many years, and apparently such a large resource, why haven't they generated any income to date? If the gold is there, why don't they get a little of it out and sold, even just to keep themselves afloat until the big deal comes along? Remember Gold was over USD1000 not long ago, a few ounces at that price, and current prices, would go a long way to helping keep them going in the short/medium term. I wouldn't imagime the mining licence they have applied for would have been necessary for a small scale operation, but if so, why have they taken so long to apply for it? HGD have been around for 20 years or so from memory? Also, producing a little gold/silver would likely entice a JV partner and make things look a little more attractive.
The old gold miners years ago didn't need huge processing plants to turn a little gold nuggets/dust/ore into cash.

[BAPP]

I think it is time 'The Company' got their shovels out and did a little digging to provide some revenue. After so many years, and apparently such a large resource, why haven't they generated any income to date? If the gold is there, why don't they get a little of it out and sold, even just to keep themselves afloat until the big deal comes along? Remember Gold was over USD1000 not long ago, a few ounces at that price, and current prices, would go a long way to helping keep them going in the short/medium term. I wouldn't imagime the mining licence they have applied for would have been necessary for a small scale operation, but if so, why have they taken so long to apply for it? HGD have been around for 20 years or so from memory? Also, producing a little gold/silver would likely entice a JV partner and make things look a little more attractive.
The old gold miners years ago didn't need huge processing plants to turn a little gold nuggets/dust/ore into cash.

Hi Doon,

It would be nice if it was as easy as that... but of course if it was everyone would be doing it.

In simple terms you do need a mining license to extract econonically viable levels of ore and that ore needs to be treated to then extract the silver and/or gold ready to for sale to the market.

An approximate cost of drill holes to define vein system can be in the range of $200-300k per hole and if you miss the spot you may have wasted a lot of money, so a lot of ground work, geology and testing must be done before hand

I understand that you need to drill holes covering each square metre and measure the gold/silver content of that ore to provide accurate details for JORC compliancy. This will become extremely costly as you try and identify a reserve of a million oz or more.

If you research your comments through 'google' you will find most of the answers to your questions and you will also find that while the equipment used today is technically superior and more efficient the basic principal has been applied for many decades.

There are also several different types of mining and different types of ore, and processes involved so it is quite a complex industry.

Of course HGD could get the shovels out as you suggest, however I don't think a few ounces of gold is going to get much attention from investors who want evidence that the company can produce a minimum of 50K oz per annum for a 10 year period or more.

Some sites to look at are:
http://en.wikipedia.org/wiki/Gold_mining
http://www.barrick.com
http://www.newmont.com
http://www.e-goldprospecting.com

There are many more sites you could research, but if you read through some of the posts on this thread you may also find some valuable and interesting info on the subject and HGD.

This of course doesn't help investors who are patiently waiting to see a ROI. Investing in junior explorers is always a risky speculative business.. in some instances there are losses made and sometimes the investor hits a multi bagger and makes big gains.

There are a lot of 'things' the company management must get right to make the latter happen.

Hope this helps with some of your comments and questions.


Cheers
BP:)

[doon]

Hi BAP,
My 'shovels' comment was copied from your post, and was tongue-in-cheek. I am aware of the problems. However, 1984 to 2009 seems an unusually long time to bring any business to a stage where you can generate some revenue.
As you will be aware, many shareholders and investors have long since given up and lost significant money funding HGD's slow progress. I gave up many years ago (1997?) on HGD's 'sister/similar' company on the NZX, Summit (Gold, then).- both were pretty well written off by serious investors. Fortunately I didn't sell SMM when they were 2-3c just threw them into the drawer. Nice surprise when I sold at $5.50+ in 2007. Maybe stretching the imagination to expect HGD/HTM to show similar returns, but the only reason I am in here is hoping for another multi bagger. I am pretty confident it will eventually happen, but I don't think you buy this stock with your grocery money!
Looking forward to some positive announcements soon. The scoping study was due last August, and I don't think there has been any news to date?
They already have a 205k oz Gold JORC, and the Chairman stated 26June08 the extraction of ore from Talisman was a top priority, with the major obstacle 'treatment'. This indicated to me they didn't need alot of more, costly, drill holes at Talisman to get started.
Aside from a positive scoping study, I believe the next major leg up here will be if/when they announce a JV with a substantial player- watch it take off, you'd need to be quick to be onboard then.
Fingers crossed, and good luck to all faithful holders.
Cheers

[BAPP]

Hi Doon,

Glad to hear you made some money out of your investment in SMM. Sometimes being patient can be pay off .. and hopefully we can have a similar outcome with HGD at some stage in the near future.

I suspect we will be waiting a few months more though before we have any news that excites the market or shareholders with regards to any progress at Talisman.

While the Scoping study was finalised around September last year it will not be published to shareholders or the markets and is apparently being used as a 'blueprint' for a future 'banking feasibility' study and to support the discussions with interested JV partners.

The mining permit should be approved by March or April according to the company announcement, but hopefully it may be a 'little' earlier given that the mine already exists etc.

With a mid-top tier mine company as a JV partner I think you would definitely see an upwards trend in the share price, so as you say.. fingers crossed.

Cheers
BP:)

As always DYOR

[doon]

[QUOTE=BAP;239444]Hi Doon,

While the Scoping study was finalised around September last year it will not be published to shareholders or the markets and is apparently being used as a 'blueprint' for a future 'banking feasibility' study and to support the discussions with interested JV partners.

BAP, are you sure they can withhold this information from the market in general? NZX rules: Continuous Disclosure
Listed issuers (companies and other entities which issue securities) have obligations under the Listing Rules (section 10) to keep the market constantly informed on matters that may affect the price of their securities.Listed issuers must disclose material information immediately. http://www.nzx.com/regulations/rules

Results of a scoping study may well affect the share price, both positively or negatively, and making this information available to selected parties only would be tantamount to insider trading.
I've been keenly waiting the announcement since the chairman reported 26June08 it would be completed in August? There have been no announcements the study was completed in September, or that the results were not going to be released. It seems you are privy to information that has not been released to the market? Would you care to comment further please?

[Jess9]

Hi Doon.

Completion of scoping study was noted in the last Quarterly:

"SCOPING STUDY ON TALISMAN PROJECT

During September, Heritage Gold completed a Scoping Study of its Talisman Mine project. A Critical appraisal was undertaken by Gemell Mining Engineers Pty Ltd., of Australia, and recommendations from this appraisal are being incorporated in the study.

The Scoping Study, in addition to the previously announced resources of 204,000 oz gold, 797,000 oz silver, targets geological potential ranging between 827,000 oz gold and 2.47 million oz silver to 3.3 million ounces gold and 9.88 million oz silver.

Geological potential is conceptual in nature and insufficient exploration has to date been completed to allow estimation of a mineral resource, as defined in the JORC code. It is uncertain whether further exploration will result in the determination
of a mineral resource. (Refer to disclosure 2).

A number of mining extraction and treatment options were assessed. The study was based on progressively developing the project to a sustainable annual production of 50,000 oz gold p.a. over three years, with an upside objective of up to 100,000 oz gold.

The company will use the Scoping Study as a basis for discussions with prospective Talisman Project joint venture partners and to map the development of a Feasibility Study."

for full report see:

http://www.heritagegold.co.nz/reportArchive/ASX%20Quarterly%20Activities%20300908.pdf

PS Well done re SMM!!

[Jess9]

Per the last paragraph, the information is commercially sensitive in that its content could form basis of negotiations between one or more interested JV parties. IMO price sensitivity would apply more to conclusion of a subsequent JV arrangement. After concluding this I would expect immediate announcement to the market and a precis of the agreed upon arrangement including Talisman JV production plan/staging of etc.

[BAPP]

[QUOTE=BAP;239444]Hi Doon,

While the Scoping study was finalised around September last year it will not be published to shareholders or the markets and is apparently being used as a 'blueprint' for a future 'banking feasibility' study and to support the discussions with interested JV partners.

BAP, are you sure they can withhold this information from the market in general? NZX rules: Continuous Disclosure
Listed issuers (companies and other entities which issue securities) have obligations under the Listing Rules (section 10) to keep the market constantly informed on matters that may affect the price of their securities.Listed issuers must disclose material information immediately. http://www.nzx.com/regulations/rules

Results of a scoping study may well affect the share price, both positively or negatively, and making this information available to selected parties only would be tantamount to insider trading.
I've been keenly waiting the announcement since the chairman reported 26June08 it would be completed in August? There have been no announcements the study was completed in September, or that the results were not going to be released. It seems you are privy to information that has not been released to the market? Would you care to comment further please?

Hi Doon,

Would be nice to be privy to some 'inside' information, however I'm not that lucky.

Just read a lot, ask too many questions and take a lot of notes.;)

However I did attend the last AGM at which time the Scoping study was discussed and Trent and other directors indicated the information was primarily for management use as I have indicated above.

Also you can read the half yearly report (sept 08) which indicates indicates the reference to the 'bank feasibility' study.

http://www.heritagegold.co.nz/reportArchive/Half%20Yearly%20Report%20to%2030%20September%20200 8.pdf

Also it was noted in the last quarterly report: [http://www.heritagegold.co.nz/reportArchive/ASX%20Quarterly%20Activities%20300908.pdf

Announcement as below:

SCOPING STUDY ON TALISMAN PROJECT

During September, Heritage Gold completed a Scoping Study of its Talisman Mine project. A Critical appraisal was undertaken by Gemell Mining Engineers Pty Ltd., of Australia, and recommendations from this appraisal are being incorporated in the study.

The Scoping Study, in addition to the previously announced resources of 204,000 oz gold, 797,000 oz silver, targets geological potential ranging between 827,000 oz gold and 2.47 million oz silver to 3.3 million ounces gold and 9.88 million oz silver.

Geological potential is conceptual in nature and insufficient exploration has to date been completed to allow estimation of a mineral resource, as defined in the JORC code. It is uncertain whether further exploration will result in the determination
of a mineral resource. (Refer to disclosure 2).

A number of mining extraction and treatment options were assessed. The study was based on progressively developing the project to a sustainable annual production of 50,000 oz gold p.a. over three years, with an upside objective of up to 100,000 oz gold.

The company will use the Scoping Study as a basis for discussions with prospective Talisman Project joint venture partners and to map the development of a Feasibility Study."

I hope this clarifies my comments.

Cheers
BP:)

As always DYOR.

[Jess9]

Aside from a positive scoping study, I believe the next major leg up here will be if/when they announce a JV with a substantial player- watch it take off, you'd need to be quick to be onboard then. Fingers crossed, and good luck to all faithful holders.

Fingers x'd for a high quality JV arrangement and soon!

[Jess9]

Sorry BAP, must have x'd while typing : )

[BAPP]

Per the last paragraph, the information is commercially sensitive in that its content could form basis of negotiations between one or more interested JV parties. IMO price sensitivity would apply more to conclusion of a subsequent JV arrangement. After concluding this I would expect immediate announcement to the market and a precis of the agreed upon arrangement including Talisman JV production plan/staging of etc.


I would agree.

Cheers
BP:)

[doon]

Thanks Jess & BAP, and my apologies for my earlier post BAP- not sure why I missed the scoping info! :(
I am not negative on HGD, just getting a little frustrated I guess- patience is not one of my strongest points.
SMM was neither patience nor good planning for me, just good luck. Literally threw them in the drawer for years and look what happened. Perhaps I would be best to do the same with HTM instead of hoping for sorter term gaisn.
Good luck to all, and appreciate all the sensible posts.

[Jess9]

Thanks Doon. The scoping study must be impressive enough, in that the coy immediately proceeded with the application for their mining permit (announced 14 November). Granting of this permit will secure tenure into the forseeable future to HGD. IMO this will add value to HGD upon granting.

The application announcement copied below:



"Heritage Gold Applies For Mining Permit at Talisman

Heritage Gold announced today it has applied for a mining permit on its Talisman and Dominion Knoll exploration permits at Karangahake, near Waihi.

Karangahake, about 12 kilometres west of the township of Waihi and Newmont’s Martha open pit, is a rich gold district that includes the historic Talisman Mine which produced over 4 million oz of bullion and is the second largest gold producer in the region.

“Our Scoping Study identified the mining potential of the area and provided a blueprint for developing the Talisman Mine to a commercial operation, so the application for a mining permit is timely”, Trent Lash, Chief Executive Officer said today.

“The company has evaluated various mining and treatment options, prepared a development plan starting from small scale mining and building to a significant operation over five years and completed an economic analysis of the project. The project economics look very favourable but are subject to the usual financial qualifications and are obviously impacted by the price of gold.

This application for a mining permit over our Talisman and Dominion Knoll tenements is a significant advance in lifting Heritage beyond being purely a junior explorer and I am delighted to have been associated with moving the company to this point”, said Lash.

Heritage Gold has embarked on a process of consultation with government agencies, the local community and Iwi (Maori groups) that have an interest in Mt Karangahake as a site of cultural significance.

The mining permit application was lodged with the Ministry of Economic Development, Crown Minerals Department today and it is expected that the review process and granting of the permit could take up to six months."

Link: http://www.heritagegold.co.nz/newsPDFs/ASX%20Announcement_Mining%20Permit%20Application.p df

[Jess9]

Probably old to alot of readers, but interesting none the less:

http://www.heritagegold.co.nz/mediaVideos.php?movie=RNZ-HG.flv

[Ekrub]

Doon, I similarly had success with SMM, and reaped the rewards of many
years of leaving them in the "bottom drawer", selling some, and
allowing the rest to be taken over by Paladin Energy. I've just taken
a punt at A08c, on Uranio. (UNO). The IPO a year ago was at 20c.
I'm following former Summit supremo Alan Eggers, backing the jockey
more than the horse! It'll be interesting to compare the share price
progress, (or regress), of HGD and UNO, but Mr Eggers has done it
for us big-time once before.


"Uranio Limited finalised its Initial Public Offering having successfully raised
$4,586,000 and listed on 29 January 2008.
Former Summit Resources Limited Managing Director Alan Eggers and Minvest
Securities (New Zealand) Limited (a key resources investment fund managed
and advised by Alan Eggers) have taken a combined key cornerstone
investment of 16.8% of Uranio Ltd".

[BAPP]

If OGC sold their phippipines assets for a decent amount they would be an easy J.V as the only other NZ producer but sadly with current dept OGC are keeping focus on keeping afloat

Hi JBmurc,

For this very reason, I was surprised that OGC were not interested in treating the ore from Talisman on behalf of HGD.

I believe some of OGC's problem is due to a poor 'hedging' decision in the past, so I would have thought any additional income earned would be an advantage and also if they partnered up with HGD the gold & silver produced from the Talisman could be sold at today's value. This would help offset some hedging losses in the short to medium term.

Of course I'm even more surprised that Newmont are not in JV discussions with HGD.... so obviously there's a lot more too it than 'meets the eye'.

Cheers
BP:)

[ScrappyO]

Should hear something on the BHCL front next week...

Key terms of convertible loan facility

The convertible loan facility provided to BHCL is a draw down facility of up
to A$137,500 to be used for approved purposes. Interest accrues daily on the
amount drawn against the facility at a rate of 10% per annum. The full amount
of the loan and accrued interest must be repaid 12 months after the date of
the agreement (i.e. 18 January 2009) unless a conversion notice has been
given before that date.

Heritage Gold may elect at any time prior to the 12 month anniversary date,
to convert any or all of the drawn balance into ordinary shares in BHCL with
a free attached option exercisable at A$0.10 per share within 24 months from
issue of said shares.

[Jess9]

NZX, VWAP 2.6c. Nice 13% rise today against the market tide : )

[JBmurc]

Hi JBmurc,

For this very reason, I was surprised that OGC were not interested in treating the ore from Talisman on behalf of HGD.

I believe some of OGC's problem is due to a poor 'hedging' decision in the past, so I would have thought any additional income earned would be an advantage and also if they partnered up with HGD the gold & silver produced from the Talisman could be sold at today's value. This would help offset some hedging losses in the short to medium term.

Of course I'm even more surprised that Newmont are not in JV discussions with HGD.... so obviously there's a lot more too it than 'meets the eye'.

Cheers
BP:)

Yeah certainly is would be profitable for both partys I guess HGD would ship the ore to OGC's fraser mine be a few km's

[BAPP]

Worth a read IMO.
http://www.theaureport.com/pub/na/2093

I'm confident we'll see some JV interest in the Talsiman/Rahu area in the next few months for the very reasons expressed in this article.

Cheers
BP:)

As always DYOR.

[ScrappyO]

Latest Shareholding update, nothing of any interest that i can see.




SHAREHOLDING STATISTICS AS AT 13 JANUARY 2009
Name Shares %
SO CO LIMITED 20,000,000 6.95%
FORTIS CLEARING NOMINEES PTY LIMITED 12,068,206 4.19%
PETER ROBERT ATKINSON 10,901,950 3.79%
BESTFIELD COMPANY 9,700,000 3.37%
HFT NOMINEES LTD 7,230,085 2.51%
INTERNATIONAL PACIFIC CAPITAL LIMITED 6,388,685 2.22%
HAMISH EDWARD ELLIOT BROWN 6,000,000 2.09%
BASIL COURTNEY MCGIRR 5,664,905 1.97%
BRETT ANTHONY PHILLIPS 5,541,953 1.93%
PROPHECY MINING LIMITED 5,300,000 1.84%
EASTERN PORPHRY PTY LTD 4,500,000 1.56%
ELINORA INVESTMENTS PTY LTD 4,500,000 1.56%
PETER WILLIAM HALL 4,500,000 1.56%
TROYWARD PTY LTD 3,000,000 1.04%
RELATIVITY PTY LTD 2,849,904 0.99%
PACIFIC GOLD RESOURCES LIMITED 23/F TUNG HIP COMMERCIAL BLDG 2,790,000 0.97%
FEOH PTY LTD 2,700,000 0.94%
JAMES LEE MCGIRR 2,682,794 0.93%
RELATIVITY PTY LTD 2,676,904 0.93%
I E PROPERTIES PTY LTD 2,519,999 0.88%
TOTAL FOR TOP 20 121,515,385 42.24%
TOTAL SHARES 287,703,320 100%

[BAPP]

Latest Shareholding update, nothing of any interest that i can see.
SHAREHOLDING STATISTICS AS AT 13 JANUARY 2009
Name Shares %
SO CO LIMITED 20,000,000 6.95%
FORTIS CLEARING NOMINEES PTY LIMITED 12,068,206 4.19%
PETER ROBERT ATKINSON 10,901,950 3.79%
BESTFIELD COMPANY 9,700,000 3.37%
HFT NOMINEES LTD 7,230,085 2.51%
INTERNATIONAL PACIFIC CAPITAL LIMITED 6,388,685 2.22%
HAMISH EDWARD ELLIOT BROWN 6,000,000 2.09%
BASIL COURTNEY MCGIRR 5,664,905 1.97%
BRETT ANTHONY PHILLIPS 5,541,953 1.93%
PROPHECY MINING LIMITED 5,300,000 1.84%
EASTERN PORPHRY PTY LTD 4,500,000 1.56%
ELINORA INVESTMENTS PTY LTD 4,500,000 1.56%
PETER WILLIAM HALL 4,500,000 1.56%
TROYWARD PTY LTD 3,000,000 1.04%
RELATIVITY PTY LTD 2,849,904 0.99%
PACIFIC GOLD RESOURCES LIMITED 23/F TUNG HIP COMMERCIAL BLDG 2,790,000 0.97%
FEOH PTY LTD 2,700,000 0.94%
JAMES LEE MCGIRR 2,682,794 0.93%
RELATIVITY PTY LTD 2,676,904 0.93%
I E PROPERTIES PTY LTD 2,519,999 0.88%
TOTAL FOR TOP 20 121,515,385 42.24%
TOTAL SHARES 287,703,320 100%

Hi ScrappyO,

Your right... not much change.

Below is the top 20 list as at June 2008 to compare.

An important signal for shareholders to consider in the next few months might be whether Mr Grigor takes up his options which expire early April.
www.heritagegold.co.nz/reportArchive/Heritage%20Gold%20AR%2008.pdf

Cheers
BP:)

So Co Limited 20,000,000 6.95%
Merrill Lynch (Australia) Nominees Pty Limited 14,663,920 5.10%
Peter Robert Atkinson 10,901,950 3.79%
Bestfield Company 9,700,000 3.37%
HFT Nominees Ltd 7,230,085 2.51%
International Pacific Capital Limited 6,388,685 2.22%
Basil Courtney McGirr 5,918,905 2.06%
Prophecy Mining Limited 5,300,000 1.84%
Brett Anthony Phillips 4,646,286 1.61%
Eastern Porphry Pty Ltd 4,500,000 1.56%
Elinora Investments Pty Ltd 4,500,000 1.56%
Peter William Hall 3,000,000 1.04%
Troyward Pty Ltd 3,000,000 1.04%
Relativity Pty Ltd 2,849,904 0.99%
Pacific Gold Resources Limited 2,790,000 0.97%
Feoh Pty Ltd 2,700,000 0.94%
Relativity Pty Ltd 2,676,904 0.93%
I E Properties Pty Ltd 2,519,999 0.88%
James Lee McGirr 2,338,058 0.81%
John Reader Mowbray 2,253,562 0.78%
TOTAL FOR TOP 20 117,878,258 40.97%
TOTAL SHARES 287,703,320 100%

[JBmurc]

An important signal for shareholders to consider in the next few months might be whether Mr Grigor takes up his options which expire early April.

Yeah certainly will be if he does take up his opts I'll be buying more as I've heard(from two other ASX directors) Mr Grigor is a very smart man and one to follow likewise if he sells down I'll be doing likewise

[BAPP]

An important signal for shareholders to consider in the next few months might be whether Mr Grigor takes up his options which expire early April.

Yeah certainly will be if he does take up his opts I'll be buying more as I've heard(from two other ASX directors) Mr Grigor is a very smart man and one to follow likewise if he sells down I'll be doing likewise

I'm hopeful the markets will have some good news to make their decisions on before this date of course.:)

Cheers
BP:)

[tobo]

You are talking about the 3 million options with excercise price if AU3.5 cents (expire 13 april 09).
1. He already has 20 million shares, so would have to be motivated by a good expectation to exercise (and have AUD700,000 spare cash)
2. At most simple level. he would only exercise if sp got over AU3.5 cents, but that's a big volume, so if he wants 3 million shares, that's a handy way for him to get them without driving price up as he purchases. On the other hand, if he were exercising with the idea of selling for quick profit, he would be hard-pushed to sell so many. [I guess he would be unlikely to want to do this from a PR perspective...when it comes down to it I am not sure just how mercenary he is, also not sure if he thinks he could make more $ from his other "temporarily plumetted" companies, esp MRO.]

so, as you say, we need good news in order to drive the price up about double where it is now.

ToBo

[BAPP]

You are talking about the 3 million options with excercise price if AU3.5 cents (expire 13 april 09).
1. He already has 20 million shares, so would have to be motivated by a good expectation to exercise (and have AUD700,000 spare cash)
2. At most simple level. he would only exercise if sp got over AU3.5 cents, but that's a big volume, so if he wants 3 million shares, that's a handy way for him to get them without driving price up as he purchases. On the other hand, if he were exercising with the idea of selling for quick profit, he would be hard-pushed to sell so many. [I guess he would be unlikely to want to do this from a PR perspective...when it comes down to it I am not sure just how mercenary he is, also not sure if he thinks he could make more $ from his other "temporarily plumetted" companies, esp MRO.]

so, as you say, we need good news in order to drive the price up about double where it is now.

ToBo

Hi Tobo,

I think you might be confusing Mr Grigor for Mr Geoff Hill in point 1.

Just for clarification the chairman of HGD, Mr Geoff Hill owns in excess of 33 million shares via his control of SoCo Ltd (20 million) and other holdings (13 million), while Mr Warwick Grigor holds 2 million shares.

I would suggest that if Mr Grigor acquires his 3 million options at AU3.5cents between now and April 13, shareholders will view the outlook for HGD more favorably.

Cheers
BP:)

[tobo]

Oh, yes, thanks for clarification on that.
It would be an exceedingly good signal to shareholders if WG does exercise (but I am guessing he won't unless the sp at least approaches AUD3.5c.

I guess global crisis is bad timing for us, but I reckon some decent news could actually bring quite aggressive rises from such low sp.

ToBo

[ScrappyO]

You are talking about the 3 million options with excercise price if AU3.5 cents (expire 13 april 09).
1. He already has 20 million shares, so would have to be motivated by a good expectation to exercise (and have AUD700,000 spare cash)
2. At most simple level. he would only exercise if sp got over AU3.5 cents, but that's a big volume, so if he wants 3 million shares, that's a handy way for him to get them without driving price up as he purchases. On the other hand, if he were exercising with the idea of selling for quick profit, he would be hard-pushed to sell so many. [I guess he would be unlikely to want to do this from a PR perspective...when it comes down to it I am not sure just how mercenary he is, also not sure if he thinks he could make more $ from his other "temporarily plumetted" companies, esp MRO.]

so, as you say, we need good news in order to drive the price up about double where it is now.

ToBo

Wouldn't he only need AUD$105,000 to excercise.

[BAPP]

This is worth a read if your interested in gold stocks.

A Winning Situation for Gold Stocks in '09

http://www.theaureport.com/pub/na/2108

IMO HGD must be looking good for potential JV partners at the moment.

Excellent $NZ exchange rate conversion against $US price of gold.

Combine this with the forecast low cost operations at Talisman and lower overall costs for miners due to the huge drop in the price of oil. I would be willing to bet suitors are acessing the potential at Waihi.

The mining permit maybe just what is needed to secure a greater level of interest....fingers crossed that is.

Can anyone think of any reasons why the mining permit at Talisman should not be approved?

Cheers
BP:)

As always DYOR

[Jess9]

Hi BAP. Re gold price, this also looks very good...http://www.stuff.co.nz/4826491a13.html

[brettdale]

Lets hope it sky rocket.

[Jess9]

http://www.stuff.co.nz/4826904a13.html

[Jess9]

WOW!

Gold is attempting its break-out move!! If it can break and stay over 900 USD it should be away!!

This would be very, very, good news for HGD right now with negs etc...as it adds huge additional profit margin to the pre-feas studiy forecast returns from Talisman.

Gold 900 + is hugely significant as could be a major element to completing a high quality JV arrangement soon. Up up and away!


http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aIlsZX9alvXY

http://www.marketwatch.com/news/story/Gold-hits-three-week-high/story.aspx?guid={4A3330C6-CAC2-44CD-A7B0-FB1EAD63C538}

http://www.reuters.com/article/marketsNews/idAFLN4501620090123?rpc=44

[BAPP]

WOW!

Gold is attempting its break-out move!! If it can break and stay over 900 USD it should be away!!

This would be very, very, good news for HGD right now with negs etc...as it adds huge additional profit margin to the pre-feas studiy forecast returns from Talisman.

Gold 900 + is hugely significant as could be a major element to completing a high quality JV arrangement soon. Up up and away!


http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aIlsZX9alvXY

http://www.marketwatch.com/news/story/Gold-hits-three-week-high/story.aspx?guid={4A3330C6-CAC2-44CD-A7B0-FB1EAD63C538}

http://www.reuters.com/article/marketsNews/idAFLN4501620090123?rpc=44

Yep.. if HGD could announce the mining permit approval and a JV arrangement with a 'mid-top tier' producer in the near future it would definitely be ... up, up and hurray!:)

Cheers
BP:)

[BAPP]

For anyone interested in gold stocks.
http://www.investorsdailyedge.com/Article.aspx?Id=1840

This article offers some encouragement for us long term HGD holders....
and maybe a 'sniff' of some action soon for juniors and producers who survive the current turbulence in the markets.

Cheers
BP:)

[Paint it Black]

Thanks BAP - a very interesting article. How do you think HGD lines up against the seven dot points near the end. Quite well except for the financial resources?

I'd be interested in your and anyone else's thoughts on whether HGD can possibly keep moving into production at Talisman without the need for a JV partner. If gold can be brought out and processed solo on even a limited scale surely this needs to be seriously looked at once the mining license is in place. Maybe another public offering of some description is needed to do this? IMO just to wait for a partner to arrive is very negative.

[POSSUM THE CAT]

Paint it Black. Who in their right mind would subscribe to a Public Offering for this company knowing its history. Without a partner with some Credence it is dead in the water.

[BAPP]

Thanks BAP - a very interesting article. How do you think HGD lines up against the seven dot points near the end. Quite well except for the financial resources?

I'd be interested in your and anyone else's thoughts on whether HGD can possibly keep moving into production at Talisman without the need for a JV partner. If gold can be brought out and processed solo on even a limited scale surely this needs to be seriously looked at once the mining license is in place. Maybe another public offering of some description is needed to do this? IMO just to wait for a partner to arrive is very negative.

Hi Paint it Black

IMO HGD will not be able to move to production without a JV partner, primarily because of the lack of ‘capital raising’ potental in the current financial climate.

With the collapse of capital markets and the absence of any investor interest in junior explorers, the price of gold has 'little impact' on the share price of juniors unless they are close to production start up.

You only need too look at the drop in share price of most explorers and small producers at the moment ... however this could change as larger producers start looking for more reserves to satisfy their own needs.

Alone it would take HGD 3-5 years to get a mine operating at an economically viable level (50k oz or above), yet on the other hand a JV with a mid-top tier producer could see the Talisman producing inside a year and building towards production levels of 100k oz within 3-5 years.

This would put HGD in a different category of investor interest and with the forecast operational costs for the Talisman suggesting a very encouraging ROI the current gold price and NZ dollar would have a positive effect on the share price as production gets underway. Multi bagger potential IMO.

A major problem for HGD has been treating the ore to extract the gold, so they either need cash to fund a treatment plant (which they don't have) or a partner who can recover the gold. There is little point in mining the ore if you can't recover and sell the gold it contains.

Therefore in the immediate future HGD must conserve the cash it does have ... get mining approval at Talisman... and entice a JV partner who is looking for expansion to satisfy there own capacity requirements.

If this happens and the gold price remains strong there will be a flow on effect for the share price and we should then witness a successful take up of the Novemebr options.

This could provide up to $3.5 million of cash in the bank to see them through the next few years and the funds for further exploration of their Waihi North and Golden Valley permits... in turn creating more JV interest

All the points in the above article would be soundly covered in this scenario.
(http://www.investorsdailyedge.com/Article.aspx?Id=1840)

The management will be actively approaching potential JV partners with an enticing outlook for the Talisman .. not waiting for a partner!

Cheers
BP:)

As always DYOR

[brettdale]

So judging by what I have read here, HGD is a long termer?

[BAPP]

So judging by what I have read here, HGD is a long termer?

Hi brettdale,

Not all ... although that depends on your interpretation of long term.

I believe HGD's share price will need to be around NZ 12-14c by November for a successful uptake of the options that expire in that period.

If the above scenario of a mining licence being granted and a JV partnership undertaken then IMO there is a good chance of the share price heading towards and surpassing these level, especially if production was progressed quickly under a JV.

A share price increase of NZ10-11c ( or 5 x current sp) would be a very successful outcome within a 6-9 month period in 'my book'.

Of course that depends on whether you are investing now or whether you purchased a year or so ago.. at 10c.

Cheers
BP:)

[Paint it Black]

Thanks BAP. I totally agree that a JV partner is the best outcome and is no doubt the fastest way to get production moving. The strategy I understand you support HGD following is one of creating 'JV interest' and using possible competition between possible suitors to obtain negotiating strength which will in turn provides the best outcome for HGD. But this does require 'waiting' while these 'active approaches' are being made with no surety an outcome will occur. I can't help thinking that a Plan B with HGD also actively investigating a go it alone approach to produce tangible results from Talisman is needed, if only on a small scale. With the recession now beginning to bite surely there are some willing and capable contractors and plant manufacturer' in the region to assist. This at a minimum would stimulate further JV interest and get some decisions made while the gold price is improving (unlike PRC which is now caught, short term anyway, with plummeting coal prices). I can't help thinking HGD management are pussy footing too much with the suitors ie scoping study results which they have but not released etc, and trying not to upset a possible JV partner. Eventually, we hope anyway, hard negotiations will be needed and a Plan B can only benefit HGD in this situation. No doubt a bit simplistic, I understand it is a balancing act, and as you say more finance is required. However I doubt whether the pioneers spent too much time 'enticing' JV partners knowing the gold was there. They just got stuck in and used their own ingenuity to get it out.

[BAPP]

Thanks BAP. I totally agree that a JV partner is the best outcome and is no doubt the fastest way to get production moving. The strategy I understand you support HGD following is one of creating 'JV interest' and using possible competition between possible suitors to obtain negotiating strength which will in turn provides the best outcome for HGD. But this does require 'waiting' while these 'active approaches' are being made with no surety an outcome will occur. I can't help thinking that a Plan B with HGD also actively investigating a go it alone approach to produce tangible results from Talisman is needed, if only on a small scale. With the recession now beginning to bite surely there are some willing and capable contractors and plant manufacturer' in the region to assist. This at a minimum would stimulate further JV interest and get some decisions made while the gold price is improving (unlike PRC which is now caught, short term anyway, with plummeting coal prices). I can't help thinking HGD management are pussy footing too much with the suitors ie scoping study results which they have but not released etc, and trying not to upset a possible JV partner. Eventually, we hope anyway, hard negotiations will be needed and a Plan B can only benefit HGD in this situation. No doubt a bit simplistic, I understand it is a balancing act, and as you say more finance is required. However I doubt whether the pioneers spent too much time 'enticing' JV partners knowing the gold was there. They just got stuck in and used their own ingenuity to get it out.

Hi Paint it Black,

I'm sure 'going it alone' will have been one consideration for management, however in such a situation (and this is the defining point) they will need to either build or find a suitable treatment plant to recovery the gold from the ore.

At this stage there is no company in NZ that will treat the 'Talisman' ore on behalf of HGD... and to build a 'small' treatment plant would cost around $15 million.

IMO based on the current economic climate, it would be impossible to raise funds to build a treatment plant in a 'go it alone' scenario.

Yes, there will be options with regards to drilling contractors, engineers etc, however establishing a suitable 'local' treatment option is another issue altogether.

Cheers
BP:)

[Jess9]

Target appears to be 1,000 USD late 2009. As stated earlier, the JV will look better and better with a strong gold price!

http://www.marketwatch.com/news/story/gold-rises-three-month-high-playing/story.aspx?guid={4662A82F-2098-4511-986C-7B52A9C32DE4}

Gold rises to three-month high atop $900 on dollar
Investors buy gold as safe haven; SPDR gold holdings hit new record

By Moming Zhou, MarketWatch
Last update: 12:27 p.m. EST Jan. 26, 2009Comments: 289
NEW YORK (MarketWatch) -- Gold futures rose Monday for a third straight session, moving above $900 an ounce to their highest level in more than three months, as a weaker dollar enhanced the metal's investment appeal.
Investors also bought gold as a safe haven against the deepening economic crisis. Holdings in the SPDR Gold Trust, the largest exchange-traded gold fund, hit a new record.
Gold for February delivery was last up $15.20, or 1.7%, to $911 an ounce on the Comex division of the New York Mercantile Exchange. It rose to $916.30 earlier, the highest price for a front-month contract since Oct. 10.
Gold had fallen in the first half of January, mostly playing off a stronger dollar. It dropped to nearly $800 an ounce as recently as Jan. 15.
As the greenback slowly weakened and as investors bought gold for wealth preservation amid the deepening financial crisis, gold prices rebounded. Gold has gained more than $100 since Jan. 15.
Some analysts said gold could top $1,000 later this year as they believed the dollar will weaken further.
On Monday the dollar came under broad selling pressure. The dollar index (DXY:

84.43, -1.18, -1.4%) fell 1% to 84.631. Gold and the dollar often move in opposite directions. See Currencies.
Gold's improved luster resulted from "widespread global economic gloom and ultra-low global interest rates," wrote Ashraf Laidi, chief market strategist at CMC Markets in London.
"As the price of money [interest rates] is held down by central banks, the price of its competitor [gold] pushes higher on the lack of yield reward in monetary alternatives," he added.
In gold spot trading, the London afternoon gold-fixing price -- a benchmark for gold traded directly between big institutions -- stood at $910.25 an ounce Monday, up $34.50 from the previous day.
Monday's gain in gold followed broad advances in commodities and equities. Crude-oil futures rose more than 3% to the highest in nearly three weeks, while the Dow Jones Industrial Average advanced more than 100 points. See Futures Movers. See Market Snapshot.
Record for ETFs
SPDR gold holdings totaled 832.57 tons as of Friday, according to the latest data from the fund. That's 13.45 tons higher than a day earlier.
Gold held by exchange-traded funds reached a record level of 1,190 tons in 2008, the World Gold Council reported last week.
ETFs' gold holdings are now higher than central-bank holdings in Switzerland, which ranks as the sixth largest official gold holder in the world.
The SPDR Gold Trust (GLD:


89.30, +0.77, +0.9%) rose 1.1% to $89.54.
The Amex Gold Bugs Index (HUI:

306.92, +2.89, +1.0%) , which tracks the share prices of major gold companies, rose 3.1% to 313.53.
The iShares Gold Trust (IAU:

89.29, +0.80, +0.9%) exchange-traded fund added 1.2% to $89.58, while the iShares Silver Trust ETF (SLV:


12.08, +0.23, +1.9%) added 1% to $11.97.
The Market Vectors-Gold Miners ETF (GDX:


34.58, +0.44, +1.3%) gained 3.7% to $35.43.
In other metals trading Monday, March copper jumped 7.8% to $1.587 a pound, while March silver gained 1.3% to $12.09 an ounce, March palladium fell 1.8% to $193.50 an ounce and April platinum added 0.2% to $960 an ounce

[JBmurc]

Gold in NZD -$1,722.70oz 2k not far away, both HGD , and esp. OGC producing 250,000oz+ will gain attention of local investors if either can annouce postive news ................

[Jess9]

Pressure yesterday on HGD, but gold is attempting another crack to haul itself through 900USD today.

[skeet]

A couple of annoucements out today. Whats everyones thoughts??

[Jess9]

Gold punched through that 900 barrier.

[Jess9]

Hi Skeet. Still a waiting game. Mining permit and establishment of a "good" JV arrangement ASAP still the key to see HGD fly IMO. Quarterly indicates progress, but to date no final outcome.

With the gold price beginning to ROAR completing a JV arrangement should get easier (in proportion to the gold and silver price increases).

[BAPP]

http://www.3news.co.nz/Video/Business/tabid/369/articleID/89282/cat/53/Default.aspx#video

Cheers
BP

[skeet]

Also on stuff:

http://www.stuff.co.nz/4834781a11.html

[BAPP]

A positive outlook.
Cheers
BP:)


Declining Costs to Catapult Gold Miners and Developers in 2009
Source: Mineweb, Dorothy Kosich 02/03/2009

An analysis of precious metals costs by Wellington Capital Markets claims, "The perfect storm that precipitated higher capital costs has passed, leaving in its wake a favorable development window" for precious metals project.

An "unprecedented rate of cost deflation" will boost the economics of gold mines and gold projects, a mining sector report by analysts Steve Parsons, Paolo Lostritto, Ryan Walker and John Miniotis suggests.

The costs of key mine inputs, such as steel and diesel, strongly influence mining construction and operating costs, and have plunged lower, according to Wellington. Explosives, mill reagents, and contract labor costs also all trended lower last year.

The analysts estimated that a 20%-25% decline in construction costs and the rapid deterioration in equipment costs could mean that a number of late-stage gold mine development projects could benefit. Meanwhile, lead times on large capital items have collapsed from three years to two years.

"With gold prices little changed and pointing higher, the implication is that recent feasibility studies quite likely understate the project economics. The magnitude of the differential depends on the timestamp of the feasibility study and the complexity of the project."

The situation could also create an opportunity for investors, Wellington claimed. The analysts suggested that companies "on the cusp of project construction and in the process of soliciting firm bids" should benefit from input cost deflation. "Bottom line, it is the development companies going out for firm bids on equipment and embarking on project construction in the deflated cost window that stand to benefit."

In fact, the analysts asserted that almost all gold companies stand to benefit from "the marked downturn in input prices; however, our analysis indicates almost unequivocally that companies with large, bulk-tonnage mines and projects stand to benefit the most, particularly those that benefit from a weak local currency vis-à-vis the U.S. dollar and have a heavy reliance on diesel and steel."

Gold producers are also poised to benefit from the slowdown in the base metals market, which improves the availability of skilled labor and generate lower contractor rates. The analysts also found that the better availability of engineering, procurement, construction, management (EPCM) firms "should help moderate financial risk, and ultimately expedite share price re-ratings as companies transition to commercial production sooner than they would have otherwise." The improved availability of EPCM firms is also likely to improve project execution and moderate project risk, they suggested.

[Glendoonie]

My apologies if people have read this already. My question is, 'Why has such news not affected HGD one iota?'

"Fear and Worry" Sparks Gold Demand
Source: World Gold Council 02/02/2009
Overseas buyers are contributing to the increase in gold purchases taking place in New Zealand, it has been suggested.
Demand for New Zealand gold has jumped as the global recession worsens, with buyers looking to invest in the precious metal rather than currencies or stocks, the Sunday Star Times reports.
Mike O'Kane, head bullion trader at the New Zealand Mint, told the news source that the failures of large U.S. banks are contributing to the increase in gold purchases.
"We've just started to see another surge in demand through fear and worry," he stated, adding that one U.S. buyer recently purchased 570 gold coins - approximately NZD 1 million ($353,000) worth - and an Asian couple also flew over to buy $500,000 worth of the precious metal.
Reuters recently stated that gold has become one of the most popular choices for investors during 2009, as many buyers are opting to purchase the commodity rather than currencies such as the U.S. dollar."

G

[BigBob]

My apologies if people have read this already. My question is, 'Why has such news not affected HGD one iota?'


Because HGD has never produced one iota of the yellow stuff.....

[BAPP]

[QUOTE=Glendoonie;242593]My apologies if people have read this already. My question is, 'Why has such news not affected HGD one iota?'

Hi Glendoonie,

BigBob is totally correct in his answer: "Because HGD has never produced one iota of the yellow stuff".....

However once HGD get closer to mining and production the correct price of gold will have a major affect on the share price IMO.

The first hints of progress will be the approval of a mining permit... in March hopefully... along with any announcement confirming a JV with an existing producer. I'm quessing the next quarterly reports in April will tell us a lot more.

The current price of gold makes these outcomes more likely to succeed IMO and I would suggest that several producers will now be taking a 'closer' look at the potential of the Talisman mine and Waihi permit areas.

At this stage HGD remains a very speculative share, however if any one of these outcomes becomes reality I believe the share price will climb rapidly.

Big risk ... but big reward, when we see a positive outcome.

Cheers
BP:)

[brettdale]

Roll on March.

[Glendoonie]

[quote=Glendoonie;242593]

Hi Glendoonie,

BigBob is totally correct in his answer: "Because HGD has never produced one iota of the yellow stuff".....

However once HGD get closer to mining and production the correct price of gold will have a major affect on the share price IMO.

...

At this stage HGD remains a very speculative share, however if any one of these outcomes becomes reality I believe the share price will climb rapidly.

Big risk ... but big reward, when we see a positive outcome.

Cheers
BP:)

Wait and see, yeah?
G

[croesus]

Announcement Pending..... ???... maybe..maybe not....volume and price up.

[paul29]

HGD & HTM is a good trading stock

[Jess9]

or for buy and hold, worth a quick check of both markets, as one is often slightly cheaper than the other depending on x rate and spread. Your broker can shunt across too if you prefer.

[Jess9]

Timing of gold's rise to assist HGD JV finalisation might be just right : )

[Jess9]

http://www.marketwatch.com/news/story/gold-hits-seven-month-high-safe-haven/story.aspx?guid={604BA4C2-6E2A-4D9B-B021-8E9E996F7255}

[Ponda]

Has anybody else noticed the big rise in both sp and volume for OGC. I mention this on this thread as there has often been comment about the possibility that OGC could be a JV for HGD.
Is there any reason for the lift, apart from the POG, and if that is the case why is HGD also not sharing in the rapid rise

OGC ranges for the last 26 weeks.

"1-Week Range (Low - High): 60 - 76
4-Week Range: 37 - 76
26-Week Range: 22 - 82"

I suspect that the high of 82 for the 26 week range was as the share price was on its way down.

Disc: Hold both HGD and OGC

[Jess9]

Hi Ponda. HGD is well up from its lows of 1.5 c NZ, and on good volume. several mill traded through over the last few weeks at about a 2.3c average. Thats a little over 50% gain from its low.

IMO big gains will only eventuate when HGD receives its mining permit (hopefully in the next few weeks to month away AND a high quality JV arrangement is finalised. This could fast track initial production. Remember HGD already has some resource booked: 205K oz gold and and 800K oz silver, AND pre feas study indicating likihood of this resource being in the vicinity of up to several million additional oz's more! Mouth watering surely to dealmakers with POG heading inexorably towards USD 1K / oz, the bottom line of any JV just gets fatter and fatter! IMO HGD is likely to head into 10c territory on mine permit AND JV announcements, more is dependent on the nature of any deal and the POG and its momentum. HGD is a risky share, but rewards could be great...HGD at 20c would be a handsome return from here, and stranger things have happened in this sector ; )

[Jess9]

wonder if OGC may get interested, they should cap raise 20-30m at current s/price and buy into HGD JV and go a huntin for the big elephants! IMO resource outside "secure" political countries could get dodgy with economies worsening and POG heading on upwards.

[ScrappyO]

I still reckon newmont would be interested. There Favona mine was only 200k resourced just like talisman and also underground. But Talisman has more potential.

Newmont are wanting to stay in waihi otherwise they wouldn't keep on spending.

"If it goes ahead, the east layback will be similar to the current South Wall Stability Cutback (SSC). It will extend the mine's life by approximately 18 - 24 months. This would mean that closure of the open pit would move from mid 2010 to mid 2012 as outlined in the Operating Scenarios developed and communicated over recent months ".
(quote from newmont).


Currently Favona ore and Martha ore are both fed to the processing plant and treated alternately. So this maybe why they can not take HGD's ore

I'm Gunning for Newmont to be in the mix if HGD get their mining Permit.

I'm thinking more like late April/May for the mining permit?

[kanejones]

Although I'm still learning about the sector, I have a small stake in HGD.

What are the chances of the mining permit being approved?

[tobo]

Any management anywhere near competent would not keep exploring without confidence that they have done the research and have the skill to get the mining licence. Thus, I am not expecting mining licence to be turned down flat, but should be forthcoming (though can sometimes take time to address further "issues" raised in the process.) (Obviously there are always risks, especially in this lovely Land the long white Resource Management Act)
I have more nervousness over speed to prove resources (which is the lynchpin to obtain loans or placements and/or JV in order to convert potential into gold, so-to-speak), and cash required to prove resources.

ToBo.
Holding quite a bit.

[Jess9]

Hi Tobo. Gold looks like it is striking distance of $1,000 USD/oz today. Agree on your concern re proving up resource, however if gold fever hits the sector shortly with full force then HGD could be well placed to ride that wave, especially on a successful granting of a mining license. Hopefully more suitors will emerge then, and with the gold price (and silver price for that matter) going ballistic!

[Jess9]

...a good JV deal could put wings on the coy as developement, production and resource upgrade could be fast tracked, depending on what the other party brings to the table.

[Jess9]

Value differential between current producers and juniors is stretching very wide. An interesting time.

[brettdale]

Gold is going up and up, if only HGD had some. There is a reason why this stock is only 2 cents.

[doon]

I've made a smallish entry in to HGD on opening today @ .021 :D

My fingers are crossed on this punt! :rolleyes:

edit ~ sorry for driving the share price down 4.5% ;)

That's OK, the smallish buyer HTM on ASX on open at 1.7c drove the price UP 13.3% :)

[croesus]

So whats holding up our Permit !

[Oiler]

I still reckon newmont would be interested. There Favona mine was only 200k resourced just like talisman and also underground. But Talisman has more potential.

Newmont are wanting to stay in waihi otherwise they wouldn't keep on spending.

"If it goes ahead, the east layback will be similar to the current South Wall Stability Cutback (SSC). It will extend the mine's life by approximately 18 - 24 months. This would mean that closure of the open pit would move from mid 2010 to mid 2012 as outlined in the Operating Scenarios developed and communicated over recent months ".
(quote from newmont).


Currently Favona ore and Martha ore are both fed to the processing plant and treated alternately. So this maybe why they can not take HGD's ore

I'm Gunning for Newmont to be in the mix if HGD get their mining Permit.

I'm thinking more like late April/May for the mining permit?

Scrappy....I agree, Newmont has to be in the picture as a possible JV partner. All they would have to do is reconfigure there conveying systems and we would be in business. I think this is already being investigated. ;)

The mining application is only a matter of time and I very much doubt there is opposition to getting the permit and even more likely with the change to a more business friendly govt.

I am sure John Key and Peter can have a chat over the back fence :D:D

We are not there yet and there are still risks but every day we get a step closer production, even if it is in a small way.

Oiler

[croesus]

I currently own approx 1 m HGD/HTM.....have been loyal for years, have done some trades and been lucky.. so my average cost is way below current s/p.....damned to know what to do...this co has the shareholder relationship skills way below.. Pol Pot or Idi Amin... how about an update guys..... ???

1/ Whats happening re Permit.

2/ Are we actually getting off our fat arses and looking for a Joint Venture Partner or just hopeing Mr Newmont etc turn up with a posey of Violets.

actually and this is to Management.... CEO etc.. what the heck do you do all day ????

concerned shareholder.

[JBmurc]

I currently own approx 1 m HGD/HTM.....have been loyal for years, have done some trades and been lucky.. so my average cost is way below current s/p.....damned to know what to do...this co has the shareholder relationship skills way below.. Pol Pot or Idi Amin... how about an update guys..... ???

1/ Whats happening re Permit.

2/ Are we actually getting off our fat arses and looking for a Joint Venture Partner or just hopeing Mr Newmont etc turn up with a posey of Violets.

actually and this is to Management.... CEO etc.. what the heck do you do all day ????

concerned shareholder.

you should give them a call

[skeet]

I dont really have a problem with HGD and the amount of info... yet. Im not really expecting any announcements out till next month. If we werent to hear anything by April I would really start to be concerned!!

Bought more shares today.

[Jess9]

From the Gold Forecaster (Subscription)
"Gold has now entered the next and major leg of the long-term gold bull market after correcting down from $1,035. We see it targeting $1,000, initially. This will be achieved shortly after a small bout of consolidation. This Alert is to re-emphasize that you should be looking to see a long-term rise in the gold price, not simply another short visit to $1,000. We believe that $1,000 will be here to stay this time!

We believe, too, that gold shares will benefit to a greater extent than gold itself, in the next move up. In particular, we feel that soundly based gold “Junior” mining companies will benefit strongly . . ."

Man. I hope so . . . I have a few sorry looking Jr's with fantastic proven reserves . . . Let's roll!

ALSO . . .

"The subject of central bank sales keeps on raising its head in the gold market. Last week saw the question raised, “Will the I.M.F. sell its gold still as its cash flow seems to have improved enormously?” The answer from the I.M.F. is of course, “Yes!” It has to be, because the bureaucratic steps for that to happen have been set in place and only a meeting of the members of the I.M.F. can change that at a special meeting. This has not happened.

For the sale of 400 tonnes of gold from the I.M.F. to take place however, the key vote deciding this has not yet been cast. The U.S.A. controls over 16% of the votes [it needs an 85% majority for such a motion to be carried] of the I.M.F. and it cannot cast its vote until the U.S. Congress has cast its vote on whether they will permit the I.M.F. to sell. The vote on the subject has not even been proposed by Congress so until that is on the agenda the likelihood of such a sale is just not there. Meanwhile it sits as a seeming threat to the gold price, or does it?"

MORE . . .

"The internal strength of the market continues to improve which will support pullbacks and support future moves higher. General recognition of the massive monetary expansion and a destruction of trust in the system on various levels including in the world’s largest financial institutions has created a once in a lifetime opportunity for gold to stage a move that is likely to be historic in nature, powerful in force. Short term de-leveraging may continue to place some short-term pressures on gold and gold stocks, but overall the record prior quarter’s $32B in gold demand is going to soon overwhelm the market, above ground stocks are going to be depleted quickly. Once the supply nears or becomes depleted, the market will be in short-supply and a squeeze on the gold price will result in a very rapid move higher."

"In this author’s view, gold sub $1,000 remains a gift and accumulation should be heavy and aggressive at this time. Once the $1k level is broke then the market will accelerate momentum. This could occur in the coming 3 months."

"We are witnessing once in a century, or perhaps longer, financial event where gold and silver offer the only real protection. The U.S. treasury debt market may eventually succumb to this crisis as well at which time gold and silver would move to levels difficult to imagine today as it returns to its true historical attribute as currency."

[Jess9]

http://www.chicagotribune.com/business/chi-biz-god-above-1000-feb20,0,2076474.story?track=rss

[Jess9]

From the Gold Forecaster (Subscription)"We believe, too, that gold shares will benefit to a greater extent than gold itself, in the next move up. In particular, we feel that soundly based gold “Junior” mining companies will benefit strongly . . ."

IMO gold juniors are in 4 massive, massive rises if gold holds 1K !! Especially, if they can say the right things soon!! Come on HGD. Likihood of outright takeovers also significantly increases. Maybe Newmont will change tack with gold 1K plus and open their cheque book to grab 100% of HGD's resource and permits. 20c + plus please for a quick and clean t/o : )

[Jess9]

OK I'm passionate about HGD / HTM, and what it could do $$ wise with the gold price now going ballistic...BUT AS ALWAYS, DYOR!!

[Jess9]

Trent is very approachable. His response is also very polite : )

On another point, I see Range River Gold (another junior) announced today a hook-up with Barrack Australia and plan to get into production in the next 6 months. Its share price traded at up to near 100% gain, albeit settling down towards day end.

[tobo]

From the Gold Forecaster (Subscription).....
... In particular, we feel that soundly based gold “Junior” mining companies will benefit strongly . . ."

Man. I hope so . . . I have a few sorry looking Jr's with fantastic proven reserves . . . Let's roll!
. . .

."

Hi Jess9, appreciate all your input on this thread.
As a matter of interest, what other gold juniors do you hold?
(I hold HGD, MCO and NAV, with HGD being my largest goldie holding.)

ToBo

[Jess9]

Hi Tobo. Just holding Heritage shares and options in anticipation of very attractive movement shortly (knock on wood - or better yet high grade feeder veins ; )

Other juniors I keep an eye on...just RNG (noted above) and RSN. Really just as a yard stick. HGD to my mind is the one to hold at current price vs its rising potential. Up from the juniors: IGR, SLR and OGC. Also, of topic here but several oilers and CSG shares...for later in the year, after heritage really moves!

[Jess9]

http://www.marketwatch.com/news/story/Gold-further-retreats-1000ounce-rally/story.aspx?guid={06741626-A5F1-415B-AFED-086470C55FB3}

[tobo]

http://www.compareshares.com.au/zeal73.php

the bigger picture for Gold Juniors is much brighter.

ToBo

[doon]

You are right there Jess.

Trent is extremely pleasant to deal with. I'm now considering him a top notch CEO and am glad to have him on our side. There are so many people within the many firms out there that couldn't be bothered answering questions for a "Yankiwi" with his limited share holding.

Thanks again Trent ~ if you're out there :D

Didn't he tell you he won't be 'on our side' for much longer?
(from announcement 26/9/08)
Resignation of Trent Lash as Managing Director

Heritage Gold announces the resignation of Trent Lash as Managing Director.
Endeavour Group is terminating its management contract with the Company.

Trent Lash will be withdrawing his nomination as Director but will continue
in the capacity of Chief Executive until 23 March 2009 and the Board is
putting in place transitional arrangements.

[Jess9]

http://www.compareshares.com.au/zeal73.php

the bigger picture for Gold Juniors is much brighter.

ToBo

Very heartening! HGD was cheap at 5c. Look at the discount the 2008 market carnage did to it...and now with gold much much higher.

I accept OGC is in a different category but if it can go 20c to $1.15 plus in 3 months, then big money is starting to flow into the local gold sector,
"topical" juniors doing the right things, will be next. The issue of the mining permit with a little media/broker attention might just be well timed!

[BAPP]

For those interested:

Letter to Shareholders

http://www.heritagegold.co.nz/irLetter.html

Cheers
BP:)

[corran]

HGD was cheap at 5c. Look at the discount the 2008 market carnage did to it...

I agree a lot of the share price decline was due to market factors. But IMHO HGD has a lot less going for it now compared to a year ago...

- Cash - a year ago they had approx 4 million. Now they're down to less than 1 million. I was surprised to read in Trent's letter that they've been focusing on conserving cash throughout 2008! According to Trent, they have enough cash to see them through to 2010 but they spent almost $750,000 on admin last year, so I reckon they're cutting it very fine with the cash they've got. There another bunch of options expiring this year and we need a 5 bagger from here to get to the strike price.

- No new resource? - a lot of time & money was spent on drilling in 2008 but, as far as I know, no new resource has been defined in HGD's tenements yet.

- Cobalt? the cobalt project seems to have put on hold indefinitely and the price of cobalt is less than half of what it was.

- Uranium gone, HGD has withdrawn from the joint venture.

- Options expired - the 23 million options issued in 2005 expired without conversion in September 2008.

- Trent's leaving - it took months to recruit him and now he's leaving next month. No news on who will replace him, even on an interim level, as far as I know.

I hold HGD although I've sold most of my holdings. I think there are some positives for HGD such as the gold price (which I think will go alot higher), some of the people invovled (especially Warwick Grigor), and the fact that Newmont is operating next door.

Also if HGD can announce something that the market likes the share price could easily be multiples of where it is now.

Hopefully for us holders they can do it!

[tobo]

" ... Rest assured that we are actively continuing to pursue joint venture partners for our Talisman project while aggressively preserving our cash reserves and maintaining value in your company.
Sincerely, Trent Lash
Managing Director
Heritage Gold NZ Limited"


Oh, so NOW I understand what's going on.
I had been thinking we were working toward increased JORC resources and wondered why little progress seemed to have been made.
I now see that the thing they are doing is looking for a JV partner, not drilling but saving cash during the search.

I am ok with this strategy (under the circumstances) as this may be a way forward. And it occurs to me that people other than Trent will be working on this (GH, WG etc). So that explains how we will go about progressing without Trent.

ToBo

[corran]

I now see that the thing they are doing is looking for a JV partner, not drilling but saving cash during the search.



Tobo,

HGD spent over $NZ 2.2 million on exploration and evaluation in 2008.

For a company with a market cap less than 5 million, that's not an insignificant amount IMO!

I've been through some of their reports from previous years and it seems they spent significantly more this year on exploration and evaluation than in previous years.

Of course, if the drilling results in increased resources then it's money well spent and will make finding a JV partner much easier. And they are an exploration company so I expect them to drill.

But to say they have been focussing throughout the year on saving money contradicts with the money they've spent during the year.

Maybe it's designed to detract attention away from why they have achieved so little this year.

[Jess9]

" ... Rest assured that we are actively continuing to pursue joint venture partners for our Talisman project while aggressively preserving our cash reserves and maintaining value in your company.
Sincerely, Trent Lash
Managing Director
Heritage Gold NZ Limited"


Oh, so NOW I understand what's going on.
I had been thinking we were working toward increased JORC resources and wondered why little progress seemed to have been made.
I now see that the thing they are doing is looking for a JV partner, not drilling but saving cash during the search.

I am ok with this strategy (under the circumstances) as this may be a way forward. And it occurs to me that people other than Trent will be working on this (GH, WG etc). So that explains how we will go about progressing without Trent.

ToBo

Were a JV to be concluded shortly, I'm hoping Trent maybe offered/accept some further role with HGD or any JV. The application for mining permit would appear a logical pre req for any such agreement...

Lets hope the deal making is progressing well and that any outcome is well negotiated for all!

[Jess9]

Cheaper entry on ASX (HTM) today if any one is considering. BUT DYOR!!!

[Oiler]

Were a JV to be concluded shortly, I'm hoping Trent maybe offered/accept some further role with HGD or any JV. The application for mining permit would appear a logical pre req for any such agreement...

Lets hope the deal making is progressing well and that any outcome is well negotiated for all!

Jess9

I have "no doubt" that the deal making is progressing well. As we all know dealing with govt. agencies is an unknown quantity. If I recall correctly Trent told us at the AGM that the mining permit could take 3 to 6 months so we are not quite there yet.

The present economic situation and the Nat. govts pro business activity should result in a positive outcome.

When HGD get there mining permit, we could see a JV partner or multiple partners show there hand even though NZ does not have a "mining friendly" image to the outside world. Thank you Green Party :mad:

When we get a mining permit we will see a flurry of activity.

Oiler

[Jess9]

Jess9

I have "no doubt" that the deal making is progressing well. As we all know dealing with govt. agencies is an unknown quantity. If I recall correctly Trent told us at the AGM that the mining permit could take 3 to 6 months so we are not quite there yet.

The present economic situation and the Nat. govts pro business activity should result in a positive outcome.

When HGD get there mining permit, we could see a JV partner or multiple partners show there hand even though NZ does not have a "mining friendly" image to the outside world. Thank you Green Party :mad:

When we get a mining permit we will see a flurry of activity.

Oiler

Agree. And by "Flurry" I include rapid share price revaluation!!

Trent and the team I guess are focusing their time and energies on doing all the planning and clearing of red tape and other mundane impediments necessary before actual ore removal and treatment plant construction could start, were capital in place to re-open the Talisman Mine.

Working through all the detail to a comprehensive sign-off on all planning stage work demonstrates to potential partners that HGD is serious about opening Talisman this year and has the Board capability and management skills necessary to make this project happen. Just add capital to begin...

With the application to mine Talisman and surrounding permits with MED now, following the successful completion of the Talisman pre-feas. (late 2008) that identified the likelihood of 1m oz plus resource) the above scenario looks in motion, from my view point at least : )

Fingers xed for a nice revaluation from the "Flurry" post granting of mine permit!

Great to hear from you again Oiler!

[Jess9]

PS... if the likes of OGC stays strong $$ wise I expect some of those "new" dollars to flow down into HGD, as some rebalance. More may flow dependent on level of activity underlying any "Flurry".

Out of interest HGD would be around 6c just to regain relativity with OGC (without any new news), price wise.

[Jess9]

Glass Earth seems to have a similar plan...http://www.stuff.co.nz/4863754a13.html IMO HGD is still ahead as they have a resource already, pre feas study completed and a pending mining permit.

[clarky]

jess9 i can't see 6c happening in the near future...unless a permit falls outa the sky and a JV is formed. oh what a day that would be!

[Jess9]

I hear you Clarky. Although, I would not have bet OGC to be where it is now, only a few short months ago (low of about 23c). Miners/explorers can just turn on a dime ; )

[croesus]

Up in NZ and AU.......not many of my stocks managed that today.

[croesus]

Correction .. just NZ.. bit of irrational exuberance....thought the last AU S/P had been 1.2c..tempted to get Turners to auction the SLK and turn the proceeds into HGD.

[ritchie]

And I thankyou for selling them

[clarky]

up up and away!

[clarky]

well don't be shy to offload a few more

[skeet]

Good to see movement today, may it continue... :)

[Jess9]

yip not bad with the dow's plunge yesterday and gold back to early 900's. Maybe the long awaited permit is near?? Time is about right.

[ScrappyO]

yip not bad with the dow's plunge yesterday and gold back to early 900's. Maybe the long awaited permit is near?? Time is about right.

4 months minimum...say about 16th March. Just going by other mining permits. ;)
They did say thou up to 6mnths.

[clarky]

be positive scrappy! another 10% rise coming today

[ritchie]

yeah right

[Ish]

The volume is far to low to make any conclusions.

I have accumulated a few while the price has been drifting about.

[clarky]

another trade yankiwi? well thanks again!

[clarky]

there is a slight queue b4 u yankiwi. think il hold mine for a while and see what happens

[clarky]

yeah lets rally up sum support n get a loada people to jump on the bandwagon. the positive vibe alone will take the shareprice up another cent... sorry, must be still dreaming

[Jess9]

Gold spiking today on dow and oil falls, a silver or should I say, gold lining to the storm clouds?? ; )

[clarky]

Would be a nice treat before the weekend if we could squeeze another 10% rise in HGD

[Jess9]

Hey Clarky, you could always put in an order for 100K @ $.024 :rolleyes:

That would give us all another 10% :D

Haa ha...but BUY not SELL ! ; )

Have a great weekend all

[Ponda]

Hi Yankiwi,
It seems that both HGD and OGC are both having a wee bit of a holiday while NZO is stemming off into the distance.
Maybe everyone is busy watching the POG and the POO to decide their days activities.
Haven't heard much from BAP of late.

DISC: Hold HGD, NZO, PPP. SLG and OGC

[clarky]

maybe we should start talking it up a bit more, cumon HGD, bring back the 10%. NZO has kicked in2 an upward trend which has been coming for a while now.

maybe a better day tomorrow for HGD, fingers crossed

[Jess9]

Hi BAP. Is that you after a cheeky mil at 1.5c (ASX)?

Should prove interesting. ASX sellers were recently happy to unload at that point. Big buyer just waiting...

[Jess9]

Something coming up, finally??

[Ponda]

I see the offer for the million shares has gone to 1.6 on the asx. Someone wants them. How badly???

[kanejones]

Something coming up, finally??

Hopefully an announcement regarding the permit. It must be getting closer, surely!?

[Ponda]

50,000 just gone thru at 2.4 on NZX. Theres 26% for you Yankiwi!!! Keep going.

[Oiler]

Yipee :D

Permit news coming soon? :confused:

Trent spending a few $ before exiting? :rolleyes:

Someone feels sorry for Yankiwi? :rolleyes:

What ever the reason, I'll take it :D

I agree Yankiwi we will all take whatever we can get in this market even if the sale is a small one and besides I dont feel sorry for you ;)

We are moving closer to what I believe will be a positive mining approval announcement. New Zealand is not viewed very kindly Internationally by mining companies because of our past record and attitude to towards mining operations (thanks to the greens)

I suspect we already have several potential JV partners sniffing around from overseas, all just waiting for that positive mining announcement.

Trent may be going at the end of the month but who knows ???? perhaps he might help out with JV negotiations:cool:

Time will tell and I am happy to ride this out.

Oiler

[Jess9]

Game on...

"Asked whether Newmont was looking for acquisitions, he said the key would be to grow production, like at Boddington, which Newmont took full possession of last year by buying Anglogold Ashanti's one-third stake.

"We're looking at things that make us better not bigger," he said, adding that the company was looking at a number of junior and mid-tier range companies and also at joint ventures."



See full article: http://www.stuff.co.nz/business/market-data/2254958/Golden-opportunity

Don't be too cheeky Newmont. It would backfire. A new mining permit, 200K oz gold and 700K silver oz found, and technical reports showing likelihood of more than 1m oz + "around the corner" from that found...20c NOW could do it, just don't wait too long : )

[Jess9]

Gold price targeted to 1200 (with a lower limit of 900). Others see upside limit to $2500. This is about to fuel JV, and takeovers activity, especially where the targets have everything lined up to go.

[Ish]

This thread is always entertaining for the rampant bulls in it.


Disc. hold HTM

[STRAT]

This thread is always entertaining for the rampant bulls in it.


Disc. hold HTMhaha, this the warmest thread on Share Trader, More like a family really :D

[Tanger]

The crown minerals website lists all permit applications that have been received and is updated as they are granted. Heritage Gold is still showing in the received list. Could be some time yet judging by how many applications they currently have.

[Ish]

With one parcel of 5K shares trading thus far today @ $.024, I'm thinking we've seen the begining of Newmonts take-over ;)

lol and Goldcorp too by the size of the trades

[Jess9]

...must be early accumulation and under a number of shell companies : ) Keep going Newmont ; )

[skeet]

Depth up over a million this morning, also 4 months since permit application. Could this be the week??

[tobo]

he says -
“There are a lot of ragtag stocks that call themselves producers,” warns BGF Equities analyst Warwick Grigor who in his latest gold sector review says the price could reach US$1300-$1400 this year.

Grigor contends the bull run will continue for the foreseeable future because gold has become the defacto currency of choice. He argues the US dollar is overpriced but there is no confidence in other currencies. “The only alternative currency is gold; that is why we are seeing the gold price rising. Gold is the only credible currency right now.”

As opposed to the euphoria of previous booms, Grigor says the rise of recent months has been a “strong and well behaved market responding to the real demand for gold as opposed to a speculative bubble” and says the price will rise as long as the recession continues and liquidity is pumped into economies.


full text -
http://www.thebull.com.au/articles_detail.php?id=1050

[tobo]

he says -
“There are a lot of ragtag stocks that call themselves producers,” warns BGF Equities analyst Warwick Grigor who in his latest gold sector review says the price could reach US$1300-$1400 this year.

Grigor contends the bull run will continue for the foreseeable future because gold has become the defacto currency of choice. He argues the US dollar is overpriced but there is no confidence in other currencies. “The only alternative currency is gold; that is why we are seeing the gold price rising. Gold is the only credible currency right now.”

As opposed to the euphoria of previous booms, Grigor says the rise of recent months has been a “strong and well behaved market responding to the real demand for gold as opposed to a speculative bubble” and says the price will rise as long as the recession continues and liquidity is pumped into economies.


full text -
http://www.thebull.com.au/articles_detail.php?id=1050

[tobo]

in the same article, he says -
Gold stocks can be highly volatile so are not for setting and forgetting. Apart from reacting to volatility in the metal’s price, they can also be subject to three phases of investment:
the price jumps when a discovery is announced,
trades sideways while the resource is proved up and the company raises money to get into production,
and then jumps again as the company moves towards commissioning the mine.
The skill for investors is to get in at the right phase and monitor the stock so as not to get stuck in a price lull.

[Ponda]

Can anyone explain this for a newbie?
I have had a look at two duel listed companies on the ASX and NZX. It seems that there is about 20% differance in the share price, with it being, on the face of it, cheaper to buy the ASX share. I am aware that you then have to factor in the foreign exchange differance.

Why is it that HGD/NZX is 2.1 cents and HTM/ASX is 2 cents.
With the above examples shouldn't HGD have a 20% weighting against HTM which would then put HGD in the 2.4 (approx) cent range?

Or is there something seriously screwed up in my back of envelope accounting.

Look forward to any answer. Thanks

[Ish]

Can anyone explain this for a newbie?
I have had a look at two duel listed companies on the ASX and NZX. It seems that there is about 20% differance in the share price, with it being, on the face of it, cheaper to buy the ASX share. I am aware that you then have to factor in the foreign exchange differance.

Why is it that HGD/NZX is 2.1 cents and HTM/ASX is 2 cents.
With the above examples shouldn't HGD have a 20% weighting against HTM which would then put HGD in the 2.4 (approx) cent range?

Or is there something seriously screwed up in my back of envelope accounting.

Look forward to any answer. Thanks

Hi Ponda,

Basically HTM/HGD is not a very liquid stock.

For e.g. HTM could be higher due to an australian that doesnt have access to HGD deciding to purchase some shares in HTM at the current market price which in this case was 2c.

In a more liquid stock you wouldnt expect to see such variances.

[Ponda]

Thanks for that. It makes sense. I also noticed that just prior to me making the post there was a sale that took the price up from AU 1.8 to 2.0 so that would have kept that 20% differance about right.

I also noticed that on the ASX the buyer who wanted a million at 1.5, who later increased to 1.6 ahs now got an order in for 790,000 at 1.7. Keen on mopping up sellers who need the money.

POG is still going up!!!!!

DISC HGD, OGC, PPP, NZO, SLG, PVO

[Jess9]

Agree. Massive rise today on Fed printing money - shock announcement.

[Jess9]

Follow through today in price increase (gold). We may well see 1K again and soon. Hopefully this all quickens the pace of JV negotiations. This IS the value driver button for HGD/HTM.

[STRAT]

Hi Ponda,

Basically HTM/HGD is not a very liquid stock.

For e.g. HTM could be higher due to an australian that doesnt have access to HGD deciding to purchase some shares in HTM at the current market price which in this case was 2c.

In a more liquid stock you wouldnt expect to see such variances.Yup and the gap will close if the stock starts moving with any volume. The exchange rate has a small part to play too

[Ponda]

Yankiwi,

Just read your post on the Forex/Gold thread. I found this paragraph to be very interesting

"Newmont, which has to work hard to replace its reserves each year, has long been deemed a potential suitor for Newcrest but has never made a bid. None of their Australian operations are adjacent to each other."

It has two potentially relevant points for HGD.

1) Newmont have to work hard to replace their reserves each year, and,
2) Heritage gold is adjacent to it's operations in Waihi.

DISC HGD, OGC, PVO, PPP, NZO, SLG

[clarky]

would be a nice friday present if permit came thru. i see nzo has there taranaki permit come thru this morn....must be hgd's turn for some good news

[skeet]

would be a nice friday present if permit came thru. i see nzo has there taranaki permit come thru this morn....must be hgd's turn for some good news

NZO applied in November 08 and so did HGD. Would think things are getting close! (rubs hands together in glee) ;) lol

[brettdale]

Realistically if they get their permit, would the shareprice skyrocket? or maybe just go up half a cent.

[Oiler]

Realistically if they get their permit, would the shareprice skyrocket? or maybe just go up half a cent.

Brettdale

Todays market its a hard call but I would expect a small uptick after the mining licence approval. However as soon as the JV partner is announced then I am looking for a decent price jump. ;)

Purely a guess but 10cents is my guess.

Oiler

[ScrappyO]

Brettdale

Todays market its a hard call but I would expect a small uptick after the mining licence approval. However as soon as the JV partner is announced then I am looking for a decent price jump. ;)

Purely a guess but 10cents is my guess.

Oiler

Agree with you their oiler need those options in the money too!

[Jess9]

Brettdale

Todays market its a hard call but I would expect a small uptick after the mining licence approval. However as soon as the JV partner is announced then I am looking for a decent price jump. ;)

Purely a guess but 10cents is my guess.

Oiler

Spot on as she de-risks. Hope for a little more than 10, if gold gets going also...10-20 range s/term (on mine approval plus good JV deal). Fingers x'd it comes together then : )

[Jess9]

...just look at OGC's run where perceived risk (around hedging loss?) fell away. Quick 5 bagger. When it goes well, it really can go!

[whatsup]

Whatsup Doc interest today??????????!

[ScrappyO]

Good to see Heritage gold's neighbour at waihi is doing well. :D


Newmont Waihi has one of biggest production years at 144,000 oz
27 March 2009 - Newmont Waihi Gold has recorded one of its best gold production years from its Waihi operation with a total yield of 144,000 oz for the 2008 year, well up on 85,000 oz mined in the previous 2007 year.

In recent years only 2005 has produced more gold – 163,000 oz.

The US-based Newmont Mining Corporation in its report for the fourth quarter to December 31 2008 says that tons of ore milled for the full year was 1,067,000 dry short tons almost double the 550,000 tons milled in 2007.

Ore produced from the underground Favona mine rose to 366,000 dry short tons in the 2008 year from 269,000 tons in 2007. Ore mined from the Martha open pit sidewall cutbacks were steady at just over 600,000 dry short tons for 2008 and 2007.

Gold produced from the Waihi operations for the fourth quarter of 2008 was 36,000 oz, up from 31,000 oz in the 2007 fourth quarter.

[Jess9]

WG option expiry soon. Need a deal to come together very fast or he will likely let them all lapse. We'll soon see. C'mon Newmont/OGC, lets all make some serious cash here. Half of the pie for operating mine and 2/3 capital costs - loan to HGD for remainder. Now lets shake on that! Plenty of $$ here for all... a multi million oz resource on your doorstep Newmont. Lets share hard hats and get on with it. Be a great outcome for Waihi also now - recession wise. Great coy and industry PR. Mine expansion, capital investment, a fist of new jobs/locally spent cash!! Just what NZ towns need right now. Go on MED, do your bit now too. Flick on that green light - chocks away!

[Jess9]

Do you want a piece of the action, or are you going to sit back and wait for the cameras from “Neighbours At War” programme to turn up? :rolleyes:

Could be a powderkeg there depending who is talking and how serious. Winning LOTTO $ relms a possibility but just a ticket to play right now ; )

[ScrappyO]

Their was no notice of Trent leaving, supposed to have been 23rd March.

Maybe be he is hanging in until the deal is done. Feels like we are in the dark at the moment.........Glad im still young.

Roll on news.





Disc. Holding lots.
P.S I think BAP has gone digging.

[Year of the Tiger]

Their was no notice of Trent leaving, supposed to have been 23rd March.

Maybe be he is hanging in until the deal is done. Feels like we are in the dark at the moment.........Glad im still young.

Disc. Holding lots.
P.S I think BAP has gone digging.


I'm not that young. I just hope that the treasure starts rising forth from the ground before I start to descend into the dark abyss below the surface...:(

YOTT

[STRAT]

I'm not that young. I just hope that the treasure starts rising forth from the ground before I start to descend into the dark abyss below the surface...:(

YOTTLOL,
youre not that old either YOTT. Think of it as a super fund :D

[STRAT]

Their was no notice of Trent leaving, supposed to have been 23rd March.

Maybe be he is hanging in until the deal is done. Feels like we are in the dark at the moment.........Glad im still young.

Roll on news.





Disc. Holding lots.
P.S I think BAP has gone digging.Imagine the look onManagements face if yall bought a shovel and did a road trip to Wahi :eek:

[Jess9]

Bit old, but maybe of interest...

http://www.mineweb.com/mineweb/view/mineweb/en/page43?oid=73597&sn=Detail

I see Glass Earth has JV's with the big Kahuna already!