Heritage Gold...HGD

[BAPP]

Very quiet on th HGD front today! Little feedback on this forum other than from the normal fans. Like last week trading is at low volumes again, other than the additional 55k I purchased. (Think I must be in the top 20 by now).:D

Best news of the day for NZ shareholders of gold stocks must be the OGD report. (possibily a hint for HGD). To bad price of gold seems to be on downward tend. (short term, I suspect).

Patience is a virtue! (and so is good news):)

BP

[Jess9]

http://www.nzherald.co.nz/search/story.cfm?storyid=000A55AE-566E-14E0-9BA983027AF1010F

Good news for OGD - the gold industry is starting to pick up speed again here in sleepy ole NZ, OGD are very active in adding new resource.

Go HGD!!

[BAPP]

Is this a sign of things to come:

http://www.smh.com.au/news/business/oceana-turns-gold-ascendancy-into-39-profit-rise/2006/08/14/1155407739907.html

Good news ahead one would think!
BP

[Jess9]

Gold sector down across the board today. Gold price still above 600 through.

[BAPP]

The price of gold has traded in a band between US$620-$650 for a few weeks now. A battle rages between the Bulls & Bears and it is hard to tell who has the upper hand!

Every time I think it will swing one way it goes the other, so I'm not willing to forecast where the price is headed in the short term. However from what I have been reading I still believe the longer term (6 -12 month) outlook is for the price to go higher.

IMO while the gold price stays above US$550 HGD is a certain winner! The share price is undervalued at present and should already be trading around 10-12 cents per share based on confirmed resource already known.

Even if gold drops down to US$500 the outlook for HGD is positive. There is little downside at 5.5 cents per share! Do the maths- Jess9 has for you from memory!

Potential news regarding IPO's/mergers/acquisitions and larger resource finds will only increase the interest in this stock and push the price towards being the 10 bagger we believe it will be.

A supply and demand scenario - together with HGD having the resource supply -along with Newmont or Others needing to fill their production capacity - while the $ value is high - equals HGD shareholders are winners.

Just read Hot Commodities by Jim Rogers as Croesus suggests!

I would still like HDG management to join this forum to hear their side and hopefully confirm my optimism.

Potential seems to be there and I keep 'harping back' to Broken Hill, because I think it is the key to making this share price sky rocket ( 25 cents +).

The Aussies love miners/exploration companies at the moment and will do for a few year to come!

With the experience that the HGD Directors have you would have to back them for having a plan that will increase shareholder wealth, otherwise why be doing this in the first place. They don't get huge salaries! ($90K for a MD -not great in my book)

Have a close look at the info on their website: www.heritagegold.co.nz.

While it isn't very inspiring from a design viewpoint the info regarding the company's potential and the Directors background is all there! Or read the last 2-3 Annual Reports!

HGD management have always pointed towards the latter part of 2006 as being the time that HGD will start to prosper. Not long to wait then!

BP :)

[steve fleming]

quote:Originally posted by BAP

Potential seems to be there and I keep 'harping back' to Broken Hill, because I think it is the key to making this share price sky rocket ( 25 cents +).



Hi BAP, what exactly is at Broken Hill??....can;t find anything in relation to targets/prospects, proposed drilling schedules, surrounding mineralisation etc
cheers.

[underground]

Broken Hill Cobalt..In Aussie.. Look over the original presentation or the Financial Statements. HGD have a 33% Interest in Broken Hill.

[steve fleming]

quote:Originally posted by underground

Broken Hill Cobalt..In Aussie.. Look over the original presentation or the Financial Statements. HGD have a 33% Interest in Broken Hill.


right, found some info

The Thackaringa Project (33%):
The deposit is located 25km southwest of Broken Hill in NSW. The project is managed by 33% owned Broken Hill Cobalt and consists of two separate resource areas estimated at 10.6Mt @ 0.1% Co and 3.0-4.5Mt @ 0.09% Co.

But can't find at what stage the project is at

[Jess9]

Again market needs a summary of info on where this is assocate coy is at. Some info I've gleaned from past annuals/quarterlies (again just from memory - so check your self if you need to); ASX listing indicated shortly - 2006/07 and $$ to be used for financing final evaluation.. leading to production, one assumes. Cobolt sales have been assessed with China, market survey's for cobolt and it bi-products performed, several phases of metallurgical testwork have already been completed (I assume this means how best to extract the raw cobolt), BHC currently hold 2 mining licenses for that area , and are consolidating an additional exploration permit into an existing permit to enlarge the surrounding prospect area, past cobolt drilling was to 100m (striking cobolt etc), and this resource was open to further depth, I think. BHC also has an exploration license to the South of BH, for other base metals - an area on which several anomolies have already been identified. Cobolt prices have tripled in value since initial feasibility studies were performed a few years back. This associate coy has been on the books for about 4 years (ish) and is valued at cost within HGD's 2006 accounts...it may be significantly undervalued etc, and identified on (above indicated) ASX listing. Again a big unknown todate. I look at it this way, for every 3 HGD shares you may hold, in theory you also get a 1 free BHC share (at cost) attached! This BHC's value not recognised in the HGD share price maybe another reason for HGD to be spliting out assets, in case of t/o etc with reference to Newco?? Sort of makes sense to me, but it is late ; )

[BAPP]

Hi Steve and anyone else awake and willing to listen/read

Hope this makes sense as I’ve been out for dinner tonight and had a few too many wines.- Anyway here goes.

If you look back through my previous posts you will see my theory to why I think Broken Hill is significant to the HGD/HTM share price. It is not the only factor, just another boost that will make an impact to future value IMO.(a good/great impact)

In my last post I note that the Aussie mentality is more aligned with mining/exploration than that of a NZer.(IMO). I believe HGD management can ‘feed off’ this acceptance of mining in Australia, which will in turn keep NZ investors interested in HGD/HTM (see the scenario with SMM, which paid well).

The Aussies seem to be a bit more at ease with mining and exploration companies and I think NZ investors will follow their lead if they see the share price climbing on the ASX.

It is the psychological effect that will impact on HGD/HTM on the NZX market if Australian investors get behind HTM if and when and a Broken Hill(BHCL) listing is successful.

Steve for your info:

Broken Hill Cobalt Limited (BHCL) owns two mining leases including the Thackaringa Cobalt project near Broken Hill in New South Wales.

The company has applied for a further area that includes the present licence and ground previously held by Western Metals Copper Ltd.

BHCL has completed several phases of metallurgical test work to examine options for future processing of mineralisation. Surveys have been taken for cobalt and by -product mineral deposits.

The company has a an exploration licence south of Broken Hill for gold and base metal mineralisation, which include copper, zinc, lead & of course cobalt.

BHCL past cobalt drilling was to 100m and this resource is open to further depths. The area shows several anomalies that have been identified and a great sign/prospect is that cobalt prices has significantly increased in value(approx 3X ) since initial feasibility studies were performed.

During the year, BHCL has considered various development and funding options for the Thackaringa cobalt project and is currently examining options for stock exchange listing and funding to advance the evaluation work.(in partnership!)

Also my understanding is that the head person at Broken Hill is also a Director of HGD and we all know HGD manage this resource. (They own 33%)

The following web links may help in founding out more details, but from memory most of this has been announced through the annual reports over the past two years and through the stock exchanges.

No matter which way you look at it, the HGD share price is under valued, it does not recognise the value of BHCL and does not allow for any future prospects at all. (It’s not rocket science) Well I think that’s my lot.

Hope the links below all work - but I’m sure you will work them out anyway.

I will add a few to the list tomorrow if I get time. For some further info visit.

www.nzx.com/market/market_announcements/by_company?id=134684

www.nzx.com/market/market_announcements/by_company?id=99672

www.heritagegold.co.nz/PDF/Ann_Rep_Mtng0605.pdf

My time is up!

BP:)

[steve fleming]

Thanks BP and Jess...thats some really good stuff

and totally agree - HGD is very much undervalued.

[BAPP]

Thanks Steve,

That was hard work at this time of the night and in my present state, but you've got me thinking now( which is always a problem.)

I'm sorting through some more info from the last 3 years of Annual Reports which may be of interest to you an others. - I hope Jess9 or someone else of importance has a reply in between times.

Just a quick thought:

HGD applied for two permits in Northland NZ just a few months ago . They applied for these through a subsidy company just before they announced their intention to create a 'Newco listing' out of the Waihi resources.

I think their intentions are clear! Cornerstone shareholder discussions in 'Newco’ IPO listing are underway and they don’t want their other prospects interfered with!

Sorry to harp back, but still think Broken Hill is the key to taking this share to a 10 bagger in the 6-12 month term!

Your thoughts Jess9?

BP

[Jess9]

Cool Steve, and agree BAP. I hope the market agrees with you/us on this in the near term! Be nice to identify my second muti-bagger, and near the ground floor too!

[Jess9]

Looking at buy/sell depth at 5pm today - my comment above looks like it has a long way to go yet! Someone got a 100k at a good price today!

Mind you - situations can change quickly in this sector, and especially for gold juniors, and hopefully positively!!

[Jess9]

Hi BAP, a concern I have with key interests in three major prospects (Waihi, Broken Hill and Northland) is spreading Board/management/shareholder funds too thin. I guess if The Waihi potential is there, why not fully focus on this, and bring out the value? Even flick off Northland and Broken Hill to part fund this.

Another strategy, may be to go for developement of three prospects at once, and if two fail/get bought up partially completed, but one comes up with the goods, then it makes the company - so maybe a risk reduction angle?

Re takeover, I phoned the MD a few months ago about another issue, I put the question to him about t/o danger at current price level, he thought "double figures" would be needed...I assume to tempt the top 20 holders etc.

I guess we just need to wait and let the board play the current strategy out - we can complain at the AGM if not happy - or better yet congratulate them with a shout of a good bottle of wine - for landing a winner!

[BAPP]

They key is for management to make some forward thinking announcements before the AGM, so investors have a clear indication about the direction that HGD is heading.

I'm confident they have options available based on the resources already announced and if these finds/exploration areas prove the be more extensive, then all shareholders are on to a winner!

The link up between Newmont or similar company and HGD seems logical to us, but who knows what the management has planned. That's why the market needs some confirmation and reasonably soon.

I doubt that any of the top 20 shareholders will be selling their stake-holdings are present levels. Looking at the shareholder list, these companies and people are knowledgeable about exploration and mining and they are there for the longer term. They will have also invested based on the probability of success in these permit areas.

Just look at the historical mining success associated with the HGD permit areas. Why shouldn’t there be greater resource in these areas. Other explorarion companies believe there is also!

While HGD may be a junior gold explorer, I think the directors/people involved have been in this business for many years and have a large network in corporate mining.

These people know the risks involved in this industry but they must also be reasonably comfortable that gains outweigh this risk. In mining/exploration the returns are generally high if the resource is established/quantified.

Obviously the market isn't that confident yet, but that will change quickly on any exciting news releases.

If we get the announcements we believe will be forthcoming, there will only be one way for the HGD share price to head and that is upwards.( a long way up -a 5-10 bagger IMO)

I would rather be buying in at this time, while the price is historical lows, rather than the day the info is released and demand intensifies. I too would buy while the price is around or below 5.5 cents, but I don’t think this will be lasting for much longer.

I’m still looking forward to the next few weeks( there’s only 5-6 weeks to the AGM) and remain confident about the future of HGD and it’s share price. (Obviously this is only one persons opinion though!)

BP

[croesus]

Concur with all of that BAP, certainly an announcement needs to be made....... sooner rather then later.........probably extra funding will be needed... so to me it makes sense to keep the shareholders in the loop...

[BAPP]

Yes, they need to give us some good reasons to provide extra funding when this IPO 'special' is finally announced to the market. (that's why I suspect good news a head). Whether it is enough to significantly increase the value of HGD only time will tell, the potential suggests 'yes'.

Your right Croesus, shareholders should be kept in the loop and I think HGD management may have to improve this issue if they want to take this company to another level and get serious backers.

IMO a separate listing of the Waihi and Broken Hill resource should be on the agenda, with HGD maintaining a significant stake-holding in both. Cornerstone investor required with mining expertise and additional funding received used for further exploration.
(ie: Northland)

While I think that further announcements are essential to further success it is encouraging to know that HGD's present resources should already value the company ahead of the current share price and it is extremely unlikely that the demand for gold, silver and other minerals will drop off to any great degree.

Price improved at end of today-will this be a start to trend?

Wish I had that crystal ball!

BP

[BAPP]

Some reading for those who are interested in gold and gold stocks including junior mining/exploration companies. http://www.kitco.com/ind/resopp/aug072006.html

BP

[croesus]

Announcement pending.

[croesus]

False Alarm. just a few warrants paid for.

[BAPP]

I don't think the announcements we are waiting patiently for will happen until the end of the month. (but maybe next week if we're lucky).

I always find it disappointing when a company indicates to the market that an announcement is pending in the few next weeks and then takes months to make it happen.

HGD management will need to give the market some notice of any significant plans before the AGM, so shareholders can fairly evaluate them.

Still little/no interest shown again by market this week, so the management is going to have to come up with something special to get investors buying in.

Lets hope whatever they propose/recommend is worth its weight in gold!

BP

[Paddie]

quote:Originally posted by BAP

Price improved at end of today-will this be a start to trend?


BP

The price didn't improve today, it was down on yesterday's.

To say that it improved is a bit of a porky. Also no volume at all.

There is very little interest in this share on this site, with basically only 3 or 4 people regularly posting.

Paddie:):)

[Jess9]

quote:Originally posted by BAP

I don't think the announcements we are waiting patiently for will happen until the end of the month. (but maybe next week if we're lucky).

I always find it disappointing when a company indicates to the market that an announcement is pending in the few next weeks and then takes months to make it happen.

HGD management will need to give the market some notice of any significant plans before the AGM, so shareholders can fairly evaluate them.

Still little/no interest shown again by market this week, so the management is going to have to come up with something special to get investors buying in.

Lets hope whatever they propose/recommend is worth its weight in gold!

BP





Hi BAP - I heard from the MD today, re an issue I raised some time ago about the warrants. I understand from this that the Newco spinoff is being held up while the warrant treatment is settled, legal eagles in all. The outcome will likely require a special vote, therefore aiming prior to the AGM is most likely to have this detail finalised and released. The MD and Board are being very careful with this spin-off, to ensure both warrant and FPO share holders are happy with the deal being put together, so a little longer appears all in order. I'm happy.

To any holders who have any concerns, I would encourage them to phone the coy, the MD is very approachable and from my brief call I feel the Board are genuinely looking after all equity holders interest.

Newco will be very exciting!

[Paddie]

quote:Originally posted by Jess9

'To any holders who have any concerns, I would encourage them to phone the coy, the MD is very approachable and from my brief call I feel the Board are genuinely looking after all equity holders interest'.

Newco will be very exciting!





So you accept the spin from the MD.

Interesting, time will tell.

Good luck.
Paddie

[Jess9]

Having a bad day Paddie? ;)

HGD is my "Lotto" ticket :D

[Paddie]

quote:Originally posted by Jess9

Having a bad day Paddie? ;)

HGD is my "Lotto" ticket :D



Not having a bad day at all, but wake up to yourselves.

You and BAP are basically the only two posters.

Over committed yourselves, and trying to keep the thread in the face of posters.

BAP recently quoted he picked up another $55K of HGD.

Good luck, and I must say that I have a couple of shares that are my lotto tickets as well.

But basically who gives a toss currently about HGD (you and BAP).

I wish you well.

Paddie[^]

[Jess9]

Thanks, Paddie. I respect your view...but don't say in six months time you didn't know about HGD...

PS hope your "lotto" tickets do well too

[Paddie]

quote:Originally posted by Jess9

Thanks, Paddie. I respect your view...but don't say in six months time you didn't know about HGD...

PS hope your "lotto" tickets do well too



And if you are right, I will be the first to congratulate you.

Paddie[:p]

[Jess9]

Nice one Paddie, Like your style - over and out, for tonight anyway.

[BAPP]

Hi Paddie, good to see another contributer to this forum.

I agree that the market has little interest in HGD at present, as noted in my post earlier today. Yes, trading volumes are also low(also noted in recent posts).

However I would ask that you quote me correctly (55k shares not $55k also the share price did go up at end of trading according the my records the last sale was at 5.8 cents on the day I posted my quote, which from memory was up about 0.7cents from the morning trade)

Also I would appreciate you leaving it to me to decide whether I have over committed myself on anything at all, including shares. Believe me I have not and my shareholding In HGD is one of my smaller investments and I can sit on my present stake-holding for a long time.

Otherwise go for it Paddie, nice to see another viewpoint. Thats why I joined this forum!

If you also read through our posts you will note that we try to provide information about gold and mining/exploration investments that we have researched via other publications, so if you find out any info that may be valuable to readers don't hesitate to provide the links. Can I suggest the other link I provided earlier today, which isn't directly related to HGD, but makes for quite interesting reading if you follow gold stocks at all.

Have a good weekend everyone!

BP:)

PS: I think I have better odds with HGD than my lucky dip lotto ticket.

[Jess9]

BAP wrote "PS: I think I have better odds with HGD than my lucky dip lotto ticket."

My thoughts to BAP ;)

[BAPP]

Well I didn’t win lotto last night , so I suppose my option this week is HGD!:)

There are plenty of reasons that this share is a better option to purchase than my lotto ticket each week!

Maybe a bit of luck will help along the way also, but mostly good management by the HGD Directors will make this share price climb and benefit the few believers amongst us.
(if you read this Paddie-be bold,buy a few);)

Yes, the Board needs to ensure that HGD remains focused on transforming itself from just being a junior exploration company to a exploration/mining company with quantified substantial resources.

They also need to be a bit more proactive and informative with their announcements to the market.

The IPO of the Waihi resources which has already been announced is probably the first step towards this being achieved.

The key to the success of this ‘spin off’ must surely be a clear indication that their resource levels are significant and able to be mined long term.

HGD would need a considerable amount of additional capital to develop the Waihi resources to mining capacity by themselves, so it seems logical to partner up with a company with existing production capacity.

This sort of outcome should be good for all stake-holders especially if HGD retains a significant stake in the 'Newco' and can introduce another mining company partner such as the likes of Newmont or Oceania Gold.

For example, a ten years plus of mining production at a levels of 50Koz per year combined with the news that interested partners with production capacity to mine at this level were imminent I think there would be little doubt that investor interest would sky rocket.

This type of outcome would help broaden the shareholder base and possibily introduce new funds to the project. ( and probably introduce new readers/posters to this topic):)

If this happens it would be a huge step towards HGD’s share price being re-rated on both sides of the Tasman.

Also remember that even after a Waihi ‘spin off’, HGD will still have significant interests in Broken Hill (who are considering an IPO also) and they still retain their Northland permits. They will still have substantial levels of other metal resource available for mining such as silver and cobalt.

However whatever they do, it will need to be done soon, preferably well before the AGM and it will need to be achieved without dilution of existing shareholder equity.

I’ll repeat that IMO there is little downside in having HGD shares at the moment while the share price lingers around its all time lows and while the price of gold remains relatively high, especially in relation to the present HGD share price. (from memory the price of gold has escalated by around US$200 per oz while the HGD share price has halved over the same comparative period).

The HGD management seem to have several options available to generate shareholder wealth over the next year so it will be interesting to see which way this heads. Every dog has its day, some say!

Looking forward to the next few weeks ahead and your feedback.

BP:)

[Jess9]

http://www.kitco.com/ind/Wiegand/aug172006.html

...Newco timing might be just right.

[Paddie]

Maybe a bit of luck will help along the way also, but mostly good management by the HGD Directors will make this share price climb and benefit the few believers amongst us.
(if you read this Paddie-be bold,buy a few)


Hi Bap,

I am reading this, and you have more convincing to do before I would buy. So very little interest in this share, and if your claims are correct, I would have thought that their would be a lot more support and dicussion.
Anyhow, time will tell.
Good luck
Paddie:):)

[BAPP]

Hi Jess9 & Paddie,

Interesting article Jess9, well worth the read. I hope other readers take the time to look!

Paddie,

Bit of a 'tongue in cheek' comment on my part, but thanks for the good luck comment.
(I might need it!). I like to have one or two speculative shares in my portfolio and HGD is just that at the moment.

Although I still like to see some of the fundamentals pointing towards a successful outcome and of course the price of gold, the HGD permit area, along with what I believe are possibilities, lead me in to make this decision with regards to HGD in this instance. ( ‘gut’ feeling as I have noted previously)

I hope future comments on this topic or announcements may change your mind so we both make some money, but in the mean time good luck with whatever you invest in also.

Just one other comment though is that while there are not many 'posts' on this topic, the number of readers has increased significantly over the past month or so, so maybe some interest is starting to build.

The HGD share price just needs some definite info from management to create real investor interest, so hopefully the 'posts' to the topic will increase shortly also.

There is only one certainty in life, and we all know that has nothing to do with investing!

Again, time will tell on this one and we shouldn't have to wait long!

Keep smiling!

BP:)

PS: another good read, especially point 4. - http://www.blanchardonline.com/beru/five_factors.php?sc=4313

[BAPP]

It has been interesting watching the gold price fluctuate in a narrow trading band over the past few weeks. Who has the upper hand- the Bulls or the Bears?

Here's another report for those interested in gold and gold stocks:
http://www.kitco.com/reports/

Still waiting patiently for those HGD announcements. Good to see the share price of some mining stocks in Aussie improving yesterday(especially Newmont.)

BP

[Jess9]

A few going through the AUS market today, that you BAP stocking up prior to the AGM??

[BAPP]

No not me Jess9. I've got my quota. I can just sit back and wait now.

Obviously I would like some exciting news releases in the next few weeks leading up to the AGM, but I'm not in a hurry.

Off to the UK next week for a couple of months, so I'll be watching with interest from there.

One would think any announcements should be forthcoming in the next week or so, to give shareholders time to digest any advantages/disadvantages before the AGM

Lets hope that the gold price starts to climb back up towards the US$660 again and that HGD announces increased gold/silver resource that show a 10 year + mine life@ 50K oz per year. Along with that they will hopefully be partnering up with a major mining company who will be purchasing a signicant stake in the Waihi Newco while HGD maintains control. (not a lot to wish for really!):)

BP

[Paddie]

quote:Originally posted by BAP

No not me Jess9. I've got my quota. I can just sit back and wait now.

Obviously I would like some exciting news releases in the next few weeks leading up to the AGM, but I'm not in a hurry.

Off to the UK next week for a couple of months, so I'll be watching with interest from there.

One would think any announcements should be forthcoming in the next week or so, to give shareholders time to digest any advantages/disadvantages before the AGM

Lets hope that the gold price starts to climb back up towards the US$660 again and that HGD announces increased gold/silver resource that show a 10 year + mine life@ 50K oz per year. Along with that they will hopefully be partnering up with a major mining company who will be purchasing a signicant stake in the Waihi Newco while HGD maintains control. (not a lot to wish for really!):)

BP





Guys,

Had a look at depth yesterday, from memory 50,000 at 5c, next at 4.1c and only other buy order.

Heaps more sellers than buyers, which probably reflects where HGD is.
Nobody is interested as evidenced by nothing traded since the 18/8.

Cheers
Paddie[^][^][^]

[BAPP]

You are probably right Paddie, but we can all live in hope and the belief that we have an insight into the future. 'Gut' feeling and some common sense theories can often lead to success, whether or not the 'pack' follows.

You can always bypass this topic if you're not interested, but it seems that you keeping looking!

BP:)

[Jess9]

quote:Originally posted by Paddie


quote:Originally posted by BAP

No not me Jess9. I've got my quota. I can just sit back and wait now.

Obviously I would like some exciting news releases in the next few weeks leading up to the AGM, but I'm not in a hurry.

Off to the UK next week for a couple of months, so I'll be watching with interest from there.

One would think any announcements should be forthcoming in the next week or so, to give shareholders time to digest any advantages/disadvantages before the AGM

Lets hope that the gold price starts to climb back up towards the US$660 again and that HGD announces increased gold/silver resource that show a 10 year + mine life@ 50K oz per year. Along with that they will hopefully be partnering up with a major mining company who will be purchasing a signicant stake in the Waihi Newco while HGD maintains control. (not a lot to wish for really!):)

BP





Guys,

Had a look at depth yesterday, from memory 50,000 at 5c, next at 4.1c and only other buy order.

Heaps more sellers than buyers, which probably reflects where HGD is.
Nobody is interested as evidenced by nothing traded since the 18/8.

Cheers
Paddie[^][^][^]


Paddie, and therin lies a part to the attraction. You are right. At present HGD appears to be a ruderless boat, proven by low/sporadic trading volume and depth, and very low historic shareprice. However, both I and BAP have done a fair bit of research between us, and from that we both think we have identified several key changes that mean HGD is about to liven up and the mining tempo increase radically , and the coy/group will therefore become an entirely new beast within 12 months. Full stop, $$ to be made.

[BAPP]

Exactly Jess9.

We have both reached similar conclusions with what we have researched with regards to HGD.

We have identified that there is some risks involved, but we believe there is huge potetial also. The decision is whether to be in earlier when the real $$ are to made or to wait.

I use SMM as my example again, I could have purchased at 10 cents around a year ago , but I waited a few months and purchased at a lot higher and didn't make so much.

BP

[croesus]

My thoughts also.......this is classic contrarian. Tempted to buy more but pretty much set...
cheers Croesus.

[BAPP]

Hi Jess9,

Just wondering if you had any feedback regarding your enquiry about HGD management participating in this forum topic?

Paddie rightly indicates there is little interest in HGD at the moment, so this might be an opportune time for the HGD management to come on board and provide us and other potential investors with an indication of where the company is heading.

I've been reading about PLS on the 'other channel' over the past few weeks and see concern from posters/shareholders that there is no announcements to identify how the company is progressing with regards to trading revenues.

In the meantime the share price is declining, even though some evidence would suggest they have a good product. (I'm not trying to get into a discussion about PLS!) However HGD management could learn a lesson from this example.

Shareholders like to be kept in the loop! It's all very well hinting at things to come, but people want real evidence before they commit their hard earned dollars to what maybe a risky investment.

For example my company has developed a great piece of software that I believe has huge potential nationally and internationally. I have to now actually prove this possibility/potential to the interested shareholders/investors before they front up with additional capital to progress it's development. ( I can't just make unsubstantiated news releases!)

As I have indicated previously I am disappointed that the MD of HGD has not backed up his media release from over six weeks ago with further info. The news release indicated at the time, that further news was just a few weeks away. ( while I comment on my disappointment, I also like the fact that it is in the MD's interest to progress HGD, he owns a lot more shares than I do!):D

http://www.nzherald.co.nz/organisation/story.cfm?o_id=78&ObjectID=10390995

This lack of information and inability to meet the promise they made leaves investors wary about supporting them(for obvious reasons)

I hope the HGD management recognise this and make changes soon, otherwise the prospect of a successful IPO of the Waihi resource will come down to luck rather than good management, no matter whether people like myself believe in the potential of the company.

It doesn’t take a lot of common sense to realise that HGD has huge potential, but the management now has to front up and quantify these prospects, otherwise critics like Paddie will always be in our face!

Have a good weekend- I'm looking forward to the new week. It’s only a month to the AGM.
I also like to be leading the pack, rather than following!( there's the good, the bad and the ugly when you lead, but only the sheep follow):D

Time to start smiling I think! (Do I need a lotto ticket?):)

BP:D

[BAPP]

I will be posting from the UK next week, assuming they let me in!
Is anyone intending to go to the AGM?

BP

[Jess9]

Hi BAP, checking will get back to you re above.

May make AGM - depending on work commitments (we are signing off on several Local Authorities around that time).

[BAPP]

Here is some more reading if your interested goldies!
http://www.smh.com.au/news/business/oodles-of-upside-for-oxianas-new-mine/2006/08/25/1156012739789.html
Also some good vibes regarding Newmont released today.
http://www.stuff.co.nz/stuff/waikatotimes/0,2106,3776458a6415,00.html

I hope both HGD and Newmont are looking at the big picture.

Maybe they need Jess9 and BAP to come on board and show the way!:D

Sometimes people struggle to see the wood for the trees or in this case is it the gold for the share price?[}:)]

I think the 'big picture' will be showing on our screens next month!

BP:)

[underground]

REL: 1328 HRS Heritage Gold NZ Limited

OFFICE: HGD: HERITAGE APPOINTS CEO FOR NEW GOLD SPINOFF

Heritage Gold NZ Ltd is pleased to announce the appointment of Paul Cranney
as Managing Director of Mid-Earth Minerals Limited - the new company it
intends to spin out for Heritage's Waihi district gold assets.

Mr. Cranney, a New Zealander who has recently returned from Australia, will
head up Mid-Earth Minerals, which has been formed to take over Heritage's
gold projects near the giant Martha mine at Waihi. Recently Heritage
indicated its intention to spin off a special purpose subsidiary for its gold
exploration projects.

As part of the transaction, Heritage shareholders will be given an
entitlement to shares in the new company which will apply for listing on the
NZ stock exchange. A capital raising from the new company's shareholders of
up to $5 million is planned. This will allow Mid-Earth Minerals to boost
exploration and evaluation work in the Waihi district, focusing initially on
the advanced Karangahake Project.

Peter Atkinson, MD of Heritage, said the directors had searched for and found
a proven gold explorer/developer in Mr. Cranney. "We have been looking for
someone to take Heritage's gold exploration to a new level, and we believe
we've found that person in Paul," Mr. Atkinson said.

Mr. Cranney is a highly qualified and very experienced geologist with more
than 25 years experience in the mining industry, mainly in Australia and New
Zealand. He previously worked for Perth-based mining company Perilya for 10
years, when Perilya was transformed from a junior exploration company to a
large scale miner with significant cash flows.

Mr. Atkinson said it was a significant advantage to attract someone of Paul's
calibre and with such an impressive track record to take the helm of the new
company.

"We are very fortunate to have secured a person with strong technical
expertise in both exploration and mining disciplines. Paul's depth of
experience includes all aspects of the business including project generation,
evaluations, feasibility studies, and overseeing production and major
acquisitions", he said.

Mr. Cranney said he was looking forward to bringing his expertise to
Mid-Earth Minerals in order to create wealth to its shareholders. "There is
enormous potential in the Waihi district and I look forward to bringing this
area from its existing evaluation stage to actual mining production."

[HERCULES1]

Since the great forest of the East is free of Monstas apart from the evil witches with grey flowing hairs who has illegence to the ruling king.

I think some of Hercs Sheckles should go to work in the lust of yellow metals.
This hard works of these men I like.

Herc.

[Jess9]

Very promising, but lets see the detail next. HGD may well jump if this follows through.

Might be you last chance at under 6c Paddie... ; )

[BAPP]

This is a start, but we need a lot more positive detail before the value of this share heads in an upwards direction.

The management is going to have to provide a strategy that provides a good reason to invest more capital into Mid Earth Minerals (doesn't this name have familiar ring to it!)

I don't think there is many investors lining up to provide the $5 million needed based on the present information, so there must be a lot more to come or is the partnership with a stakeholding mining company just around the corner.

I have a feeling this will be like a 5 course meal and we have just started on the breads and appetiser. I hope we don’t have to wait to long for the main course and dessert.

Then I’ll be able to sit back and finish off with a nice NZ. Chardonnay!

Either way, we now know more than we did yesterday, so I think a wise man would at least hold until he knows more!

BP:)

[croesus]

Well the waiting is almost over, lets sit tight to the pre meeting announcements roll out.

[Jess9]

Maybe of interest to holders, with respect to Karangahake and the next push forward...


Golden glow at Waihi mines
01 September 2006
By WARWICK RASMUSSEN

The head of Newmont Waihi Gold believes the Hauraki-Coromandel region is "underexplored" and has "significant potential" for years to come.


Speaking at the four-day Australasian Institute of Mining and Metallurgy conference in Waihi, Newmont Waihi general manager Adriaan van Kersen said that even more gold was expected out of the Martha Pit.

As part of its mining licence the company needs to leave the Martha site at Waihi with safe and stable pit walls. To do that, the southern wall needs to be cut back from 45< to 40<. The 3 1/2-year job, awarded to Macmahon Contractors, was expected to yield a further 200,000 ounces of gold.

"These ounces are significant for the further development of the Martha operation as they provide additional time to explore."

The company also expected its Favona underground site to be producing gold before the end of the year. Up to 130,000 ounces a year and at least 520,000 ounces of silver are expected to be produced each year.

Mr van Kersen said Favona had turned into a "real success story" as extensive exploration had revealed an additional 50 vertical metres of ore body below that previously discovered.

"Our reserves have increased significantly to over half a million ounces and the ore bodies are still open at depth. This is extending the life of the operation."

The company was also doing exploratory work in the Trio systems, an area between the Martha and Favona sites.

"The future has never looked better," Mr van Kersen said.

The company has a million ounces of gold in reserves and an expected lifespan at Favona of five years.

The conference, in its 39th year, brings together companies, industry groups and organisations for sector updates, scientific seminars, networking and plenty of behind-the-scenes deal-making. The conference also included organisations involved in coal and aggregate mining.

Speaking at the conference opening, Associate Energy Minister Harry Duynhoven said interest in the mining sector was rising.

"The past year has seen increased activity in prospecting and exploration for minerals and coal, and a corresponding rise in expenditure to $38.5 million, almost double that of the previous year."

In 2001, prospecting and exploration expenditure was $2.5 million. Mr Duynhoven said another indicator of the strength of the sector was that mineral and coal output topped $1.3 billion in 2005, up 18 per cent on 2004.

In 2005, coal output was five million tonnes, with record sales of $508 million, up 23 per cent on 2004.

Last year, gold production increased 4.3 per cent to 340,000 ounces worth $239 million, a 17.5 per cent rise on the value of gold mined during 2004.

Part of that was put down to the increasing price of gold.

[BAPP]

Checking in from the otherside of the world (UK) and I see that some wise men or women bought up some cheap HGD shares on Friday. Good on you. Your lucky I was on a plane during the day, otherwise I would have had them first at that price! .

Why sell now? I quess the seller must have his reasons, but they definitely aren't apparent to me at this stage.

Reasonable announcement to get things started on Thursady with obviously more things to come. One would think it would be advantageous to hold, at least to the AGM, but maybe I'm missing something!

Any thoughts Jess9/ Croesus

Jess9 your last post regarding the potential of the Hauraki and Coromandel area is one of the keys to HGD management unlocking the potential of this company and providing the returns we both suspect are achieveable.

There seems to be several explorers/miners renewing interest in these areas at the moment. I think(from memory) Glass Earth have made similar suggestions recently and are looking at raising capital to extend their exploration in this area.(isn't that one you follow Croesus?)

Anyway have a good week. I will be!

BP

[Jess9]

Hi BAP, I was lucky enough to have Friday off.

Also, the last announcement indicated the spinoff would also include cap raising to 5m, so likely a rights issue attached to a pro-rata share issue?

J9

[BAPP]

Interesting that the market depth for HTM on the ASX, is almost the reverse of HGD on NZX. ( interesting only to me Paddie, and I'm talking volume-not price!).

Does this go back to my comments in earlier posts that the 'Aussies' have a greater acceptance and knowledge of exploration and mining companies? Australia is building a future around their resources!

Looking forward to further announcements, especially if there is news regarding the Broken Hill investment gathering momentum towards an IPO also.

'Potential and Options' -what more could a CEO ask for?(some investor interest would help, I suppose!).

I think that investor interest may be just around the corner , if we are on the right track J9!

Keep Smiling:)

BP

PS: You don't know how lucky you are living in NZ, until you live/visit London!

[trackers]

25K buying, 650k selling...

ouch

[Jess9]

quote:Originally posted by trackers

25K buying, 650k selling...

ouch


650k = about $30k on sale...

Market moves in low liquidity on this one, however this applies in both directions, at least until the coy starts to roll, rather than speculation focused on the share price.

AGM gets ever closer... at month end. One would assume management want happy shareholders at the meeting : )

Watching with interest. J9.

[BAPP]

You are right Jess9,
The management of HGD will need to produce some good news in the next few weeks if they want shareholders to look favourably on the new Mid Earth listing. I for one will need a lot more evidence to indicate that this 'newco' is worth investing more capital into.

Common sense would suggest that the HGD managment realise this too and that future announcements will provide compelling evidence of better things to come.

However looking at the trading volumes and share price at the moment it looks as if other investors are sceptical, so HGD management will have to have ' something up their sleeves' to create investor interest.

With AGM a matter of weeks away I think we just need to wait patiently. I would be interested to hear how any of our Trans Tasman neighbours see this share developing.

IMO(for what it's worth) there will be some interesting/exciting news in the weeks ahead.

Hope everyone has a good weekend.

BP
:)

[Jess9]

Hi BAP

I think a medium AUS holder decided, or had to sell out last week... and therefore take what they could get (see liquidity comment above again). Cheap shares if you were in the market! And the NZX simply followed the AUS'y lead (possible on some averaging down between markets?).

Give HGD/group four to six months - because with the appointment of Paul Cranney as MD (last week), he will be fired up to to take the Waihi Projects into active gold drilling (to lock in resource upgrades) as well as brinnging existing resource into production (for positive cashflow) ASAP. With gold at record prices this must occur.

J9

[BAPP]

Jess 9,

Paul Cranney apparenetly has a good background with exploration and mining company's and on the 'face of it' sounds like the ideal person to take the newco-Mid Earth through a new listing process.

However I firmly believe the HGD management need to announce a definite strategy and an overview of their future propscts before the AGM if they want this IPO to be a success.

Otherwise who will want to provide the $5 milliion additional cash resource they are seeking? Additonal capital was raised last year so what has changed?

As I see HGD as a longer term investment I have no problem with waiting 6-12 months for this share to rise to it's potential, but I still want to hear about some significant prospects before outlaying more capital for the newco spin off, even if the new shares are at a favourable price.

These prospects need to be outlined before the AGM, so investors can have confidence in the future of this company, otherwise it will continue to linger in the dolderums. Definite resource levels need to be confirmed!

IMO this share has huge potential and will ultimately increase it's value ten fold, however while I might be confident about the eventual outcome, it may be a different story for HGD management to convince many other investors who want to see revenues being generated first. (ie: gold being dug out of the ground at 50K oz per annum over 5-10 years). I am willing to speculate, based on my gut feelings, research and the belief that this share will return me 10x my investment.

While gut feeling may lead me into believing this company has a bright future, it's not me that HGD have to convince, I already own a lot of shares. They have to convince other investors who have many other places to spend their hard earned cash. (and they have to do it within a reasonable time frame).

There has been significant potential already announced for this share, but investors have shown very little interest in any of the annoucements. The suggestion of a Broken Hill listing, the extended permits in Northland and the prospect of the Waihi 'spin off" have added little investor interest. Why? Because most investors want evidence of returns not just possibilities.

I believe I will reap the rewards of investing in this share, however I understand why some investors are hesitant. Thats the difference in your acceptance of risk I suppose.

Let the ride begin if you dare. (just like SMM again for me!)

BP:)

[croesus]

Could'nt resist buying more today.

[underground]

just out of curiousity how many shares do you guys hold? if this is financially sensitive you could give me a range or something as i just want a measure of what keen investors would think its worth?

disc: currently hold 50,000 HGD. in the hopes it may eventually be a 10 bagger.

[Jess9]

Good buying op at the moment, I have a cheeky bid in too. We next need to see Mid-Earth on the front cover of the business section...like Glass Earth today! And a sucessful resource strike on drilling would be like petrol on the barby for this one!

[trackers]

Might be gradually accumulating some also ;)

[Jess9]

$ where mouth is, for better or worse...sounds like a marriage eh ; )

400 - 500k FPO
1.5 - 2.0m warrants

[Paddie]

quote:Originally posted by Jess9

Very promising, but lets see the detail next. HGD may well jump if this follows through.

Might be you last chance at under 6c Paddie... ; )


Hi Jess9,

Maybe an opportunity to pick up some at 4c.

Paddie:):)

[Jess9]

Hi Paddie, I was waiting for that ; )

And yip. I'm still happy, and sitting on my disclosed time line with this one.

Last chance below 5c Paddie, 10 bagger territory ahead :D

[shasta]

Down to 4.4c ouch, been watching HGD for a while and the share price has seemingly dropped off ever since the spin off coy was announced!

The increase in the POG didn't increase the SP, so why would a softening of the POG, affect it?

Disc: Not holding ....yet

[Paddie]

quote:Originally posted by Jess9

Hi Paddie, I was waiting for that ; )

And yip. I'm still happy, and sitting on my disclosed time line with this one.

Last chance below 5c Paddie, 10 bagger territory ahead :D


Hi Jess9

How much will shareholders have to stump up per share for the $5 million to be raised?

Thanks
Paddie


PS

[BAPP]

Good question Paddie! Hoping to know in the next week or so myself.

Would need to be pretty favourable depending on the extent of the news released beforehand. (which ihas been pretty dull so far) However anyone buying this share should know that it is a bit of a waiting game. Past news releases to NZX have always indicated that the end of 2006 was when things would start happening for HGD.

Interesting article about Glass Earth yesterday, seems they believe there is plenty of potential/ gold resource in the Waihi area also. I see they indicate the possibilty of a 1 mill oz resource.

Lets hope HGD or a strategic mining partner start digging up some gold soon and show similar prospects for their permit area. History and geology around the Waihi area would suggest there is every chance of this happening. (Why else would there be several explorers in the region)

For your info I hold just over 1 million head shares at present. Won't buy anymore until I hear a bit more detail about Mid Earth, but tempting at present price.

Not long to wait now, I think!
BP:)

[Jess9]

Gold below $600 US!! Not following the why's to closely, but saw this on Kitco.com...maybe the reason (extract below)

------------------------------------------------------------
Yesterday, I told you what I thought about the price of gold falling below $600... A reporter from Bloomberg read my thoughts, and we talked a bit... I also came across a story that hit the news wires yesterday that helps explain the falling price of gold the last two months... Reuters reported that Portugal's Central Bank sold 15 tons of gold in July and 20 tons in August.

You might recall that central banks all signed an agreement about 6 years ago that allows them to sell "X" amount of gold each year... Most central banks have stopped selling gold as the price rose, but I guess Portugal's Central Bank needed some pocket cash...
----------------------------------------------------------------

[trackers]

Anyone got any vague ideas on the spin off date for Mid-Earth?

[BAPP]

Trackers,
I don't think this has been officially announced yet.(would be pleased to hear otherwise)

The only reference to date I could find regarding the 'newco spin off' was back in a Herald article in July, which suggested it may be just a matter of weeks away. Obviously they have missed this timeframe, but I would have thought it would be an intrical piece of information leading up to the AGM, so would be expecting something soon.

I think the important details of the 'spin off' must be released soon, so there is a clear agenda at the AGM. As Jess9 posted recently, you would assume the HGD board of Directors would want happy shareholders at the AGM and there isn't too many reasons to be happy due to the lack of detail being released and current share price.

Looking forward to the new CEO, being a bit more proactive with the release of news and market information.

BP:)

[trackers]

http://www.sharetrader.co.nz/topic.asp?TOPIC_ID=20620&whichpage=73 courtesy of stolwyk

Mine Supply Falters in First Half
GFMS today presented their half year findings of the gold market at the industry consultants’ launch of Gold Survey 2006 - Update 1 in London. In a presentation by the group’s Executive Chairman, Philip Klapwijk, it was identified that global gold mine production in the six months to June registered a modest decline of less than 2% year-on-year.

Central to the first half hiatus to production growth were declines from several major gold producing nations, most notably a significant drop in output from Indonesia, which was largely associated with substantially lower levels from the giant Grasberg mine. A severe incidence of cyclones impacted operations in Australia, particularly at the start of the year, whilst weaker performances were also seen in South Africa, Canada and the United States.

[BAPP]

Thanks Trackers - this definitely made interesting reading and also led me to another interesting post and article also posted by stolwyk-(thanks also).

http://www.financialexpress.com/fe_full_story.php?content_id=140327

I hope we hear a bit more detail in the next week regarding Mid Earth 'spin off', otherwise shareholders will be going into AGM 'blind'.

Is any reader/poster intending to go to AGM? (Jess9.?) We need some questions answered sooner rather than later, however the Big Question today is, -Do I buy more while share price is under 5 cents. Lets wait and see what happens![}:)]

BP:)

[BAPP]

Hope everyone interested has found their way to this link regarding AGM agenda.
http://www.heritagegold.co.nz/PDF/NoticeofMeeting06.pdf
BP:)

[trackers]

quote:Originally posted by BAP

Hope everyone interested has found their way to this link regarding AGM agenda.
http://www.heritagegold.co.nz/PDF/NoticeofMeeting06.pdf
BP:)


Ahh cool cheers for that, had a nosey the other day but didn't see it

[Wiremu]

The Chairman
Heritage Gold NZ Limited
541 Parnell Road
Parnell
Auckland,

Dear Sir,

ANNUAL MEETING OF SHAREHOLDERS

I will be out of New Zealand at the time of the Annual Meeting, and accordingly enclose our Proxy Form.

In directing the Chairman as our proxy to vote for resolution 3, we are concerned that once again that the holdings of ordinary shareholders will be diluted by a private placement.

We strongly recommend that Heritage Gold give consideration to a Share Purchase Plan ($5000) offer under NZX Listing Rule 7.3.4. Such an offer is exempt from the Securities Act prospectus and disclosure regulations, refer to the Securities Act (NZX Share and Unit Purchase Plans) Exemption Notice 2005.

We feel that if the best price that can be obtained from habitual investors represents a 41% discount from average current market prices, directors have a duty to offer the same terms to their existing shareholders.

With the Securities Act exemption there is no reason why such an offer could not be made and completed within a 30 day period. If there is a shortfall then shareholders could have no complaint if directors then looked to habitual investors.

[BAPP]

Tend to agree with your recommendation Wiremu, however I do not think we would have the voting power to make the Board of Directors reconsider their plans.

Jess9/ Trackers and others interested in HGD, I would appreciate your thoughts on their recommendations also.

I would like to know how they (HGD Directors) consider the following statement to be fair to all existing shareholders:

'The issue price for the Shares of A$0.025, and the terms on which the Shares will be issued, has been determined by the Board of the Company to the fair and reasonable to the Company and to all existing shareholders. The volume weighted average market price for the ordinary shares of the Company on the NZSX in the 20 business day period prior to the date of this Notice was NZ$0.049 (rounded). Based on an exchange rate of 0.869 NZ$ to A$, this would give an equivalent A$ volume weighted average market price of A$0.426. The proposed issue price of A$0.025 represents a discount of 41% (rounded) to that volume weighted average market price. Whilst the proposed issue represents a discount to that volume weighted average market price, the Board of the Company considers that the issue price is the best price that can be negotiated in respect of the placement of the Shares.'

Sorry guys I understand a discount, but 40% below current prices is not fair to all investors! - especially when they (all investors) are not able to take part in the offer.
Assuming you would want to take part that is!

I know I would still want a lot more detail about the future prospects over the next few months before I would sink in a lot more capital, although with a 40% discount I would probably be tempted. I still personally believe HGD will provide significant returns and that the Broken Hill is a great strategic investment for the company.

I still like the potential outlook for HGD and the associated Mid earth spin off, but I really need to see some facts about the future, especially resource levels and mining capabilities.

Unfortunately this Mid Earth ‘spin off’ that was only weeks away according to a news release in July, now seems to be months away! (starting to sound like a few other shares I’ve read about on this forum).

I'm also concerned about repeated statements from the board. Such as:
The proceeds of issue of the Shares would be used to:
· Finance further exploration of the Company’s current exploration targets;
· advance the spin-off of the Company’s New Zealand gold properties;
· progress the Thackaringa cobalt project; and
· provide working capital for the Company.
The Board of the Company believes that the proceeds of issue of the Shares (assuming issue of all of the Shares) will be sufficient to achieve the above aims.

Other than to advance the ‘spin off’ aren’t the reasons above not what the rights issue last year was for: http://www.heritagegold.co.nz/PDF/ASX270905.pdf

As Wiremu rightly indicates the holdings of ordinary shareholders will be diluted by the proposed private placement and the share price over the next few weeks will likely trend downwards towards the discounted value unless some detailed exciting announcements persuade investors otherwise.

Is anyone intending to go to the AGM?

I look forward to further feedback!

BP:)

[Jess9]

HGD only needs $500k...is a heavy discount to selected (albeit non related party) investors the best the Board can do here? I thought we had a banker on the Board, surely some variety of debt instrument funding is possible, and not abnormal to cover such situations till operating C/F/or drilling success (with better $ placement opps)?

I assume the Board has valid reasons for not doing the above, and if the placement does proceed, to put in into some perspective, it would only be 10% of equity, and if this small placement actually carries us to getting things really going i.e. drilling/confirming "known" targets, well then who cares when the share price is again north of 8c with the thrill...

I would however like the Chairman to better explain this situation to the coys loyal shareholders.

J9

[Jess9]

Probably won't make the AGM (work commitments), but maybe a letter with some key questions to put to the Board - to answer at the meeting etc may be in order?

J9

[croesus]

Hi Jess
Agree totally with your last line in the 12.41pm post. Will be away myself but hopefully somebody can ask the questions at the AGM.
cheers Croesus

[croesus]

On second thought do you have the Nerd Nous to email the last few pages of this thread to the Chairman and any of the Board that have easily available e mail addresses.???
Will be away Pig Hunting for a couple off days.
cheers C.

[Jess9]

Wonder if say..the top five or so shareholders are voting for the above placement, one could assume so, or else why get the proposal to this stage already, just to fail at the last hurdle etc.

Assuming so then ...you would then presume that "selected investors" for said 41% discount, equals top five?? This may be a question for the Chairperson?

Agree with W. above, the Board should make a small portion available to all, any discounted shares not taken could be taken up by whoever, with no ill feeling.

[Jess9]

quote:Originally posted by croesus


On second thought do you have the Nerd Nous to email the last few pages of this thread to the Chairman and any of the Board that have easily available e mail addresses.???
Will be away Pig Hunting for a couple off days.
cheers C.


Hi C.

Perhaps I wait till tomorrow and then copy/paste into an email to Sue (to pass on to Peter) the relevant page(s), to ensure they have this shareholder feedback?

J9

[underground]

well they will have to start giving us answers, im starting to suspect that something dodgy is going on and the board keeps stalling. HGD is really slack with their announcements, and keeping to what they say. Maybe this discounted equity is an attempt to help secure their interest as they start diggin'? call me a conspiracy theorist but u have to wonder..

would be nice if someone going to the AGM represented ShareTrader, seems as if we're a small voice in a big room.

I kind of regret increasing my holding lately, but am still in for the long haul...the 200,000+ oz =)

[steve fleming]

wow....haven't followed this one for a while, but a placement at 2.5c seems rather rough...surprised the sp has held up and hasn't headed towards the placement price - given that the directors have essentially valued HGD at 2.5 c (AUD)....to be fair, it is a pretty tough climate at the moment to raise funds for spec's, and there have been a few spec's in recent weeks being hit with some pretty big discounts for exploration fund raisings, but 41% sounds very dodgy!!

Hopefully for HGD shareholders some respected investors (or even Newmont) appear on the register after the placement!

But questions should really be asked of MD Peter Atkinson, a Director of HGD for 21 years - yet HGD is still probably years away from producing any gold.

[trackers]

Still have a lot of faith, just feel that the company is probably a bit too complacent - they just need to get their heads down, tails up, and pull that gold out.

Resource strength has placed Australia at the top of the world, its in a better position now than it has ever been in due to its strong resource sector - We need interest like that here, we've definitely got the right infrastructure for it - we just need some investment, some faith, and a lot of nous

[BAPP]

I have trouble understanding why HGD need to offer professional / habitual investors this placement when it only provides $500K of capital then seemingly damages existing shareholder value to a greater degree.

Fund raising via this share placement will reduce existing shareholders equity significantly because the Directors are indicating to the market that the share is currently overvalued at around 4.5 cents NZ, and then at the same time they are increasing the number of shares in the company by 11%. The market may revalue this share to around 3 cents NZ.( I don't think anyone would be thrilled by that prospect)

It seems strange that they need to discount this share placement by such a large amount. The price of gold is still high and resource shares are still popular in Australia even with the slight downturn recently.

There has also been a need for mining companies to increase their production capacity so I would assume these companies would jump at the chance to partner an explorer with known resource potential.

The price of this share did not follow the upward price trend of gold or gold explorers in the past two years, so I find it hard to believe it is overvalued compared to similar explorers.

As I mentioned earlier I can understand some form of discount but 40% seems unbalanced and unfair to existing shareholders, especially with the small amount of capital needing to be raised. Why not go to existing shareholders first ?

Also I would have assumed that the HGD management would find it easy to raise $500k of capital via short term bank funding, especially if the prospect of ‘digging up’ gold and Mid Earth listing were not far off.

So maybe things have not progressed very far and the time frame for pulling gold out the ground is further away than expected?

Delays can be a concern if shareholders are not kept informed. For instance It is now 9 months since the first indications regarding a Broken Hill listing were announced and still there has been no further news. http://www.nzx.com/market/market_announcements/by_company?id=126808

Management indicated with the announcement of the MD, Paul Cranney for the Waihi spin off, that $5 million additional capital would be required from shareholders for Mid Earth Minerals. http://www.heritagegold.co.nz/PDF/ASX310806.pdf

So unless I’m reading this incorrectly or have missed something it seems the company/s will need more capital from shareholders in the near future, shortly after devaluing their existing holdings? (I don’t suspect to many small to medium investors will be jumping at this chance, based on the latest news)

From these announcements one could suggest that HGD will be splitting up it’s value between Mid Earth Minerals and Broken Hill. IMO that is fine, as long as shareholders know the advantages and are kept informed!

I have always considered this share to be a long term holding and so none of this would worry me if we a had a clearer indication from management about the company strategy, what the expected resource levels actually are and when revenues will likely be generated from these resources.

I think the saying is: knowledge/information is everything! This goes both ways and maybe the HGD management needs to be informed about what shareholders think!
With so many unanswered questions I hope the AGM will be enlightening to those who attend and that HGD management will actually provide some clearer detail that will benefit the future decision making of all shareholders.

I still think the positives for this share outweigh the negatives, but will be watching for better indicators from management over the next few months.

BP :)

[trackers]

As a mark of respect to HGD, I'll place my 500th post right about ---> . <.... there

[BAPP]

500 posts - well done trackers.

I hope you have some great insights into what will be happening with HGD over the next few months.

Not so well done HGD, beaten to the post by Glass Earth again.
http://www.nzherald.co.nz/section/story.cfm?c_id=3&ObjectID=10401748

Is there more to this than 'meets the eye' or is Glass Earth just one step a head of HGD again?

Similar prospect areas, similiar names(Mid Earth), and note that Glass Earth are prospecting in the South Island. Any connection?
Well maybe to OGD , which just happens to be a neighbour to 'Prophecy Mining' which is owned by? ( this is just to keep the conspiracy theorists interested)

Would also like the HGD management to explain what is happening with the Broken Hill Investment at the AGM. (if anyone would ask the question it would be appreciated!)

All these options for HGD management! At least it keeps me interested in the NZX for the next couple of weeks

On a slightly different subject I hope Mr Weldon (of NZX fame) can be more specific about why NZ investors should be so interested in the NZ sharemarket etc.., when his organisation allows company Directors (PLS) to get away with fraud and lets them tell 'porkies' to their shareholders. Get real Mr Weldon it is so simple to invest in the NZX, but it is also easy to be mislead by the heads of companies. There is always some risk with invesing in a new business, (any business). But the NZX and 'other powers' should be stricter on listed companies,(especially if they have been telling lies to the market!)

Sorry about getting off topic!

From the almost sunny, but humid London.

BP:)

[Jess9]

Hi all, I think the resolution three pre-work was way too rushed (and likely with not enough man power) leading to a poor final price and therefore not a reasonable deal for existing shareholders (and a bargain basement price to targeted investors if it goes ahead).

I would urge other holders to carefully consider their vote in regard to resolution three. I will be voting no.

A better deal I think should be investigated ASAP to raise only a small amount of debt funding - just enough to complete the Mid-earth spin-off, this could be repaid from Mid-earth later.

HGD funding for future exploration and Broken Hill advancement be looked at only after detailed project information and management targets has been released and therefore into good investor interest and an appreciating shareprice.

That's my call anyway, I will put something summarising the above to the Board, for the meeting.

[Paddie]

Disappointing what has happened here, and glad that I did not purchase any shares, although came close to it.

Frustrating that companies can treat shareholders so poorly, and get away with it.

Good luck BAP & J9

Paddie:(

[moimoi]

arguably the time has come to vote no for not only resolution 3, but 1 also.

In the middle of one of the worlds sharpest commodity booms the best they can come up with is a 41% discount to their buddies down at the club...
The very fact that this outfit has not been swooped on by a larger player to date signals to me that they have nothing...
The share placement strikes me as a process of raising funds to keep oneself in a job.

Whats the point in spinning off "middle earth"....i mean the name is even KOOKY !!

Its just nonsense.!!!

moi

[BAPP]

Moimoi,

I can understand your feelings and I am also disappointed about what looks like a very generous gift / over discounted offer to some specific shareholders.

However while this is definitely a set back I still believe (based on previous announcements which I hope are genuine) that it is to the benefit of shareholders that HGD ‘spin off ‘ the Waihi resource into Mid Earth Minerals. This is to get the best overall share value for existing shareholders based on the existing investments and permit areas held. (name has always bemused me too!)

IMO the Broken Hill investment ultimately has a value well in access of the present share price, so if the strategy for Mid Earth was to partner up with a mining company for the Waihi area why give them the added bonus of acquiring part of the Australian operation at discount prices under HGD also.

But..If you do the maths on the gold and silver resource that has been announced to markets and multiple it by the present gold and silver price and then take into account the value of Broken Hill Investment etc.. the share price seems undervalued to me, so I am confused by their decision to discount to this extent.

The ‘spin off’ does not bother me in principle, it is just the way they are going about raising the $500k additional capital required. The solution is not fair to the existing shareholders and as you so rightly express leaves a ‘bad taste’. From a personal viewpoint I expect to lose approximately 50% of my original investment and have already lost substantially, however I still believe in the long term potential of this share, if historical announcements are accurate.

This share could sky rocket, given the right management of the gold resources already announced combined with the level of gold resource that is expected to be found in their prospecting area. Just look at the other explorers prospecting in this area, they are also forecasting that huge gold resources are likely and historical evidence is already there to back up this suggestion!

I agree with Jess9 that we should all vote with a definite ‘NO’ to resolution 3. Unfortunately I do not expect this will make any difference to the outcome as the majority of the shares are hold or controlled by asmall group of shareholders that are in top ten or so on the investor list.

At a 40% discount I would normally jump at the chance to purchase more shares myself, but lets be fair, if it is only $500k they are seeking, there are easier ways to raise this level of capital.

So Moimoi you maybe right, this could be just another ‘con job‘ to keep the boys in jobs and in that case I hope Mr Weldon and the ‘powers to be’ are watching! However I do not think this is the case!

Yes! I think it is a bad judgement made by the existing Directors who have gone for a quick and easy solution for raising capital without considering the implications of their decisions. A bad call, especially by the MD-Peter Atkinson, but let your vote indicate your concern on each resolution in this instance.

My major concern remains the lack of strategic information flowing through from the company management to give us the shareholders an understanding of why there is a need to raise an additional $500k capital and why they need to ‘spin off’ the Waihi resources. ( as you know I’m only quessing with my suggested reason why! It would be nice to know waht they have actualy planned)

I am also concerned that Jess9 seems to be coming up with all the good ideas about how to progress this company and why we should be even interested, rather than the the guy’s who are being paid for it. (thanks Jess9, maybe we should be voting for you at the AGM!).

Based on information supplied (or lack of) to the market we could suggest ‘sacking’ the entire board and replacing them with people who are willing to inform the existing shareholders about what is really happening with this company.

Anyway, I still believe the fundamentals are there for the share price of this explorer to sky rocket, but at the same time it will

[Jess9]

Thanks BAP and Paddie.

This is a difficult time, no question, but remember in several ways this is the reason for the current low share price. Also remember based on JORC oz there is far far greater value in this coy than currently realised by the market, we simple need a dedicated goal focused management team to deliver the value! My bet is the spin-off will provide this, and mark the start to some big changes in operational style. If not for this change I would be re-considering.

Risk = reward on this one ; ) Mutli-bagger potential still? Absolutely - and even more so at under 4c/share.

J9.

PS I understand negotiations for placement started in NZ at much higher levels, but got no interest...therefore price was reduced further and further. The final low price therefore became the new opening price to AUS brokers (who knew this final price etc!). Bad timing and no "spark" before the cap raising = res 3. Therefore vote no. Also remember last year, when better timed the coy managed a placement at 8c AUS! This gained capital and raised the value to exisiting holders - so whats changed? This statement is all my opinion only, so please accept it only as my comment.

[croesus]

I believe this company is very poorly managed....21 years I think..for what ?
We are now flaffing around trying to raise funds yet again.. tho this time at a huge discount. Time for a change I say, if they have not got positive news at the AGM then I am gone.
Croesus

[Jess9]

Good depth building above the res 3 disaster. May bode well...

[Paddie]

quote:Originally posted by Jess9

Good depth building above the res 3 disaster. May bode well...


Hi Jess9,

Unfortunately with HGD discounting the placement by 41%, it is going to take a substantial announcement/s to get the share price back to where it was at 5-6 cents. For me, money would be tied up for too long before any real appreciation in the share price.
In saying that I hold NZO and NZOOD.

Good luck:)
Paddie

[BAPP]

With regards to the trading volume and current share price I think we have two things happening:

Some short term investors with small levels of capital invested are getting out, because they do not have a lot to lose $ wise! I base this on the volumes that are being traded which are generally valued at less than $2000 and there are no ‘large’ sellers listed.

I think the existing sellers holding about 800k of shares valued @ around $30K are unsure on what to do!

They will probably have purchased their shares at a price well in access of the discounted rate. I guess they may have purchased at around the 6+ cent mark. You can check the charts to confirm the likely hood. So they will likely hold out until the AGM, as they will be looking for some news to give them some clear direction of what is happening!

I would like some clear direction from the Directors myself. A few months ago I was certain (in my mind) about which direction the HGD share price was headed-(upwards I thought.)

I kept referring back to the ‘maths’ to confirm my theory. Future EPS was good, even when based on known the resource levels and of course I based my theory on a conservative gold prices of US$520.

With 205,0000 oz(JORC) resource announced the permit area also showed indications of possible larger finds and this of course would be the ‘icing on the cake’. A mine with a 10 year+ life span, would definitely prove to be better than than my weekly ‘Lotto ticket’.

For me, the Broken Hill Investment added further interest. If they could secure contracts to supply China, the returns could multiple ten fold and what would happen if they listed on the ASX as suggested in their reports early this year. The Aussies love mining companies, again I could see multiple returns!

Then there is the contribution of the silver resource to the value, along with other minerals and finally the Northland prospect areas, so many options for the management.

All these points are what interested me in HGD about a year ago, and really nothing has changed! Other than what seems to be a set back with the share price being revalued down from 6 cents to about 3.5 cents! (so is it a set back? Surely yes, or at least in the short term)

So from this viewpoint, the HGD share price is even further undervalued and really worth a buy recommendation now?

Yes, this is set back may be due to a bad decision by the Directors, however I would also point out that the Directors (directly or indirectly) have significant stake holdings in HGD and as this share devalues they will be taking a larger ‘hit on their asset value’ than most of us. People, ‘especially those with the power’ do not discount the value of their own stake holdings without a good reason!

Increasing share value is how they will make themselves wealthy!

It will always be hard to sell the prospects of a company when there are no ‘willing’ buyers and to have 'willing' buyers you must have a history and also ‘willing’ sellers.

I don’t think HGD has the record yet, but that may change and this could be the very reason there is not many ‘willing’ sellers at below 4 cents that is.

The Directors will not want to give too much away, especially while the gold market is on a short term (IMO )decline. Gold prices are still well in advance of their annual averages and there are still some analysts suggesting that the price of gold will head above US$700 in 2007. (Time will tell, but the important thing is for HGD management to let the shareholders know when they will be digging the gold stuff out of the ground!)

Remember even at lower price levels the HGD earnings per share could still be encouraging at triple present prices, especially so, if longer term resource levels were announced! Recently other prospectors have suggested greater resource levels in the Waihi area also, so who's right?.

So the big question remains - why offer such a big discount (41%)for what seems to be a such a small capital raising?

I disagree with some contributors that it is for wor

[Paddie]

"All these points are what interested me in HGD about a year ago, and really nothing has changed! Other than what seems to be a set back with the share price being revalued down from 6 cents to about 3.5 cents!"

What has changed is share holders faith and trust in the ability of the directors of the company.

Paddie[^]

[Jess9]

BAP - HGD was, and still is a great opportunity. I think when it does turn and go up, it will be very very quick. Patience till then ; )

I've mentioned above my understanding of how this silly discounted placement arose, lets hope we get a sensible no conclusion, and move forward positively.

Still in the UK?

[Jess9]

Regarding the announcement Friday...

Great recovery HGD!!

A) Assume res 3 fails (as it should)...

1 HGD gets all funds needed from shareholders (who receive the heavy discounted shares and fully apply - one assumes after reading the detailed/good info. included, on $ used essentially for drilling and/or prodn start-up... profits/share price rise to come soon!)

2 If HGD holders do not pull together > 500k, then it is fully underwritten to this level (500k etc) - I assume by said sophisticated investors who missed res 3 ; ) (also 500k)


B) Assume res 3 passes, shareholders get a similiar deal to sph. inv. Can't argue too much then : )

Share holders win on either outcome. And in both cases share holders have been looked after by their Board.

Well done HGD Board/team for listening to holders and creating a win win for coy and holders! I sleep with greater comfort!!

Last point for any coy rep looking on...just hope the final warrant price is fairly reduced to reflect this dilution (as was done in last rights issue)...

[BAPP]

Hi jess9,
Yes still in the UK , until end of October, possibly longer. Can still keep up to date and do business in NZ from this side of the world though. (Can also get my voting forms sent in on time)

HGD Directors must have taken some notice of shareholder concerns- good one!
I'm happier with this outcome, although I wish they had proposed this right from the start.

Must be your influence Jess9.

HGD
25/09/2006
RIGHT

REL: 0903 HRS Heritage Gold NZ Limited

RIGHT: HGD: Rights Issue & Placement

1. Rights Issue

The Company is making a 1 for 4 pro rata renounceable rights issue to
shareholders at an issue price of AU$0.025 per ordinary share to raise
approximately NZ$1.0 to 1.2M. The issue will be underwritten to a minimum of
NZ$500,000.

The timing and full details of the terms of the issue are being finalised by
the Company and will be announced to shareholders as soon as possible.

2. Placement

The Company has received binding applications from sophisticated investors in
Australia to subscribe for 16,667,000 fully paid ordinary shares in Heritage
at AU$0.025 per share. The placement was arranged at this time to provide
continued funding for the Company's projects pending the rights issue.

The issue of these shares is subject to shareholder approval as outlined in
the Notice for the Annual Meeting distributed previously.

BP. ;)

[BAPP]

http://www.nzherald.co.nz/section/story.cfm?c_id=3&objectid=10402920

Hope the Directors provide some additional detail at the AGM. At least some info coming through, just need to hear more positive signs regarding digging up some gold..

The Mid Earth IPO is going to require some pretty good news to get the share price going upwards again, but I go back to my previous post regarding all the 'right signs' being there for this company.

Just hope the Directors can drive the company value in direction I think is achievable.

BP :)

[trackers]

quote:Originally posted by BAP

http://www.nzherald.co.nz/section/story.cfm?c_id=3&objectid=10402920

Hope the Directors provide some additional detail at the AGM. At least some info coming through, just need to hear more positive signs regarding digging up some gold..

The Mid Earth IPO is going to require some pretty good news to get the share price going upwards again, but I go back to my previous post regarding all the 'right signs' being there for this company.

Just hope the Directors can drive the company value in direction I think is achievable.

BP :)


Yeah, like the article says, the mid earth ipo is really going to be gunning for a move from explorer to producer.. happy holder

[BAPP]

Off course timing is important also, so I hope the details of the Rights Issue are verified at or before the AGM.(We don't want any further posts next week, talking about conspiracy theories!) We also need some indication of what entitlements existing shareholders will recieve in the Mid Earth 'spin off'.
BP;)

[trackers]

Meeting today, pity noone can make it lol..

On a positive note, spot is over $600!

Bid/Ask 601.80 - 602.80
Low/High 600.00 - 607.80


December Gold has hit $610

[Fodder]

HGD
29/09/2006
MEETING

REL: 1355 HRS Heritage Gold NZ Limited

MEETING: HGD: Annual Meeting Results

Heritage Gold NZ Limited advises that at the Annual Meeting of Shareholders
held today all resolutions were passed by the requisite majorities.

Mr Peter Robert Atkinson and Geoffrey Guild Hill were re-elected as directors
of the Company; Carlton DFK were re-appointed as the Company's Auditor and
Shareholders authorised the issue of up to 16,700,000 ordinary shares in the
Company as described in the Company's notice of annual meeting.

Pursuant to NZX Listing Rule 3.3.1A David Williams and James McKee have been
determined as Independent Directors. Peter Atkinson, Geoffrey Hill, and Ralph
Stagg have been determined as not being Independent Directors for the
purposes of NZX Listing Rule 3.3.1A.

Sue Sangster
Company Secretary
End CA:00137658 For:HGD Type:MEETING Time:2006-09-29:13:56:02

[trackers]

http://www.heritagegold.co.nz/text/announce.html

Good pdf's there of progress, and mid earth spinoff

[Fodder]

HGD
29/09/2006
PLACE

REL: 1450 HRS Heritage Gold NZ Limited

PLACE: HGD: HERITAGE RAISES A$416,675 FOR FURTHER EXPLORATION

Heritage Gold NZ Limited ("Heritage") completed a share placement
("Placement") to sophisticated investors in Australia on 29 September 2006 to
provide funds for further exploration of the Company's current exploration
targets, advance the spin off of its New Zealand gold properties, progress
the Thackaringa cobalt project, and to provide working capital.

The Placement of 16,667,000 fully paid ordinary shares at an issue price of
A$0.025 per share raised A$416,475. No Related Party or Director of Heritage
participated in the Placement.

The Placement shares will rank equally in all respects with the existing
ordinary shares of Heritage.

Sue Sangster
Company Secretary

For further information please contact:

Peter Atkinson
Managing Director
Heritage Gold
09 303 1893
021 630 463

ABOUT HERITAGE GOLD NZ LTD

Heritage is an ASX, NZX and NSX listed company with major gold exploration
and development interests in the Waihi District, North Island, New Zealand.
The areas are highly prospective for epithermal gold deposits and are within
a 15 kilometre radius of Newmont's Waihi treatment plant.

The Company also has a 33% interest in the Thackaringa cobalt project near
Broken Hill NSW, which has a potential target of 33 Mlb of cobalt in 2 areas.
Base metals, porphyry copper, and gold are the subject of its two
applications in Northland NZ over highly prospective geological terrain.
End CA:00137666 For:HGD Type:PLACE Time:2006-09-29:14:50:29

[Jess9]

Any one here manage to attend the AGM?

If so, any comments?

[Albert]

Would also be interested to hear of anyone who attended, and their thoughts on what was said or any concerns.

Disc: Spent six hours digging glass fragments out of another boy racers face who thought he could handle a 205kw car, so I couldn't attend!!

[BAPP]

This has been my first chance to 'catch up' with what has happened over the past week and I take it from the lack of response to the HGD topic that the AGM was a non event for most.

It's a waiting game, but hopefully we will see the rights issue released soon, combined with some important additional news relating to shareholder entitlements in Mid Earth Minerals and maybe even the Broken Hill investment.

The info released at the AGM by way of powerpoint presentations looks positive. However most of it was already known by the market, so now we need to see management taking a leap forward and progressing both the Mid Earth and Broken Hill IPO's quickly and successfully (by the end of this year- And without any surprises!)

BP:)

[Jess9]

I'm happy, for nice ones :)

[trackers]

quote:Originally posted by Jess9

I'm happy, for nice ones :)


?

[Jess9]

quote:Originally posted by trackers


quote:Originally posted by Jess9

I'm happy, for nice ones :)


?


Hi Trackers, nothing important...you had to read last line in BAP's post, where he said "(by the end of this year- And without any surprises!)"...

and...I'm still quietly confident, but still waiting ;)

[BAPP]

Definitely keen on nice surprises!

I think we could be in for some good news leading up to the New Year. Rights issue news released yesterday was positive for shareholders considering the issues leading up to the AGM. Mid Earth details should be released towards the end of November and hopefully the Broken Hill proposals will follow shortly after. These are just the type of prospects I've been waiting for!

Could make for a nice Xmas present for those willing to be patient for a little while longer!

Still smiling!
BP:)

[Jess9]

Nice one BAP, thinking early 2007... we will be rather content with this one's performance. Darkest before the dawn?

[BAPP]

Hi Jess9

It is still important to hear what the HGD shareholders entitlement will be in Mid Earth Minerals IPO.

A positive outcome for shareholders will regain some lost faith in the company and management while creating some renewed interest in trading volumes/values.

We have a lot to look forward to, but management needs to present their announcements carefully while ensuring the market understands the direction the company is heading over the next few months. I'm confident, but we need a lot more investors to be interested also.

I'm looking forward to 'taking up' my issue of new shares and having their value multiply many times over.

Cheers
BP:)

[steve fleming]

quote:Originally posted by BAP

Hi Jess9

It is still important to hear what the HGD shareholders entitlement will be in Mid Earth Minerals IPO.

A positive outcome for shareholders will regain some lost faith in the company and management while creating some renewed interest in trading volumes/values.

We have a lot to look forward to, but management needs to present their announcements carefully while ensuring the market understands the direction the company is heading over the next few months. I'm confident, but we need a lot more investors to be interested also.

I'm looking forward to 'taking up' my issue of new shares and having their value multiply many times over.

Cheers
BP:)


Hi Bap/Jess

What are your thoughts re the proposed transactions as detailed in the Disclosure Statement?

In particular, the reclassification of one in three HTM/HGD Shares held to a MEM stapled pref share, then a subsequent 2 for 3 subdivision of the HTM/HGD shares...so for every 3 HTM shares you end up with 3 HTM shares and one share in MEM.

Looks pretty reasonable to me, albeit somewhat complicated...maybe a bit disappointing in that MEM is not going to be listed on the NZX?

cheers

[BAPP]

Hi Steve

Sorry I have not replied to your post earlier. I have been travelling for the past 2 weeks and have had little time to research the recent announcements or the Disclosure document.

After a quick read tonight, I am reasonably happy with the overall outcome and I think the document is pretty much as I would have anticipated,( although I will spend some more time going over it)

My understanding of the MEM spin off is that the management of HGD/MEM will definitely endeavour to list on the NZSX, but they have not applied to list at this stage and therefore can give no assurances of this being an eventuality within this document. (please correct me if I have missed something!)

As stated in my previous posts, it is now up to the company/management to progress there exploration prospects to longer term mining potential. There is still some risk involved with this share and I do wonder what impact the Glass Earth listing will have. However if either one the the main prospects notably MEM & Broken Hill establish resource anywhere near the company's forecasts there will be a lot of happy shareholders, not matter what others are doing!( so retirement here I come!:)-that maybe a bit early yet)

The indicative target amounts of cobalt that they could possibly mine (if all goes to plan) from the Thackaringa project will be enough to send the share price through the roof, just look at the price of cobalt over the last year. I also feel confident that they will establish resource levels in Waihi that will at least double their current findings and provide mining capacity for 10 years plus. That will generate a lot of new interest from some of the bigger players (ie: Newmont)(IMO)

So just sit back and and make sure you take up any rights on offer to you. Time for payback for all those shareholders who have waited patiently, so lets hope the good news keeps filtering through.

Cheers
BP:)

[croesus]

Good post BAP, my thoughts in a nutshell...... bit more urgency would be good.

.one has needed the patience of Job and the life expectancy of Methuselah with this co.

[Jess9]

Hi Guys!


Looks like I have missed the start of the fun. Been stuck doing 70 hr weeks shackeled to the desk - and I'm not even working for myself!

HGD then - just popped in on the site and saw SF's post - which alerted me to the announcement...crappy NB...??!!!XXX email announcement did'nt come through.

Anyway...where is this announcement?? I quickly looked in general announcements on the site but either missed it, or it's not there. Can any one post the link/copy paste up here?

Many thanks, but back to the coal face now : (

[BAPP]

Hi Jess9

The disclosure notice(short form propspectus) can be found at:
http://www.heritagegold.co.nz/text/invest_info_prosp.html

On the HGD website it is linked to >Investor info>Short Form Prospectus 2006

(some of their links to pages are a bit messy and the site needs a bit of an update IMO! I haven't been able to locate the Application for Entitlement to Rights form which should be attached according to the prospectus.)

I think SF's comment regarding MEM not listing refers to the paragraphs sub-titled Spin-out of Waihi Gold project, however I believe this is a timing issue and as the application and listing process has not been undertaken they can not give assurances of this happening within the document. (Steve, let me know if I am mistaken)

Would be interested in your thoughts!

Cheers
BP:)

PS: Does anyone know anything about the activities of the main shareholder -Southern Cobalt?

[BAPP]

For those interested and may not have link!

REL: 1552 HRS Heritage Gold NZ Limited

RIGHT: HGD: Pro Rata Rights Issue

The Company has dispatched to shareholders a combined New Zealand Investment
Statement and Short form Prospectus and Australian transaction specific
prospectus, Application form, and a covering letter. The covering letter is
reproduced below.

Yours faithfully
HERITAGE GOLD NZ LTD

Sue Sangster
Company Secretary
-----------------------------------------------------
Dear Shareholder

Pro Rata Issue of Shares

On 9 October 2006, Heritage Gold NZ Limited ("the Company") announced that it
would be making a pro rata renounceable offer (the "Offer") of up to
37,062,433 new shares (the "New Shares") to all existing shareholders with a
registered address in New Zealand or Australia on the register at 5.00pm (New
Zealand time) on 24 October 2006 ("the Record Date") (a "Shareholder").
Shareholders will be offered one New Share for every four ordinary shares
("Existing Shares") you hold in the Company on the Record Date.

Terms of New Shares

Should you choose to accept the New Shares to which you are entitled, you
will need to pay NZ$0.029 or AU$0.025 in respect of each New Share accepted.

Subject to the ASX first granting official quotation, the Company may allot
and issue New Shares progressively under the Offer.

Applications for New Shares

Applications for New Shares should be made by completing the Entitlement and
Acceptance sections of the enclosed Application Form, which shows the number
of New Shares you are entitled to accept. The Application Form, together with
your New Zealand or Australian cheque for payment of NZ$0.029 or AU$0.025 for
each New Share that you wish to accept, made payable to "Heritage Gold NZ
Limited New Share Offer" and crossed "Not Transferable", must reach the
Company's New Zealand share registrar, Link Market Services Limited, no later
than 5pm (New Zealand time) on Wednesday 22 November 2006.

Application to take up Shortfall

An application to participate in any shortfall that may arise (the
"Shortfall") may be made by a Shareholder or Warrant holder in New Zealand or
Australia, although other persons may apply for the Shortfall to the extent
permitted by relevant securities laws, provided that the directors of the
Company may not participate in the Shortfall.

The Directors currently intend to give priority to Shareholder or Warrant
holder applicants (on such basis as the Directors may determine), although no
assurance can be given to any person that they will be given an allocation of
any Shortfall.

If applicants wish to participate in any Shortfall under the Rights issue,
they should complete the Shortfall Application section of the Application
Form and lodge the Application Form with a cheque made payable to "Heritage
Gold NZ Limited New Share Offer" and crossed "Not Transferable" for the New
Share application and the Shortfall application to Link Market Services.
Application forms and cheques must reach Link Market Services by no later
than 5pm (New Zealand time) on Wednesday 22 November 2006. For the avoidance
of doubt, where applicants are submitting an Application Form in respect of
both their entitlement to New Shares and in respect of the Shortfall, only
one cheque is required to be submitted in respect of both application
amounts.

Rights Trading

Entitlements to New Shares pursuant to the Rights Issue are renounceable
(tradeable). This enables holders of Existing Shares who do not wish to
subscribe for some or all of the New Shares under this Rights Issue to sell
their respective Rights and also enables holders of Existing Shares to
purchase additional Rights if they wish.

If you do not wish to accept any or all of the New Shares to which you are
entitled, you may seek to sell your rights on the NZSX or ASX. Trading of
Rights will commence o

[underground]

got my form today.. already filled out and posted application.. i just did the calculations.. they wish to make an IPO of 25c (20c to institutional investors).. this means my "complimentary" holding in MEM is worth more than double my current HGD holding in terms of market value ??

im only confused as to how they will even get 25cps from the public without something "exciting" ?? HGD hasnt even got their own share price to 25c..?? my theory is that their is some good news to come and that the resources at waihi have been heavily understated

if by some miracle they manage to pull this off then my hat goes off to the board.. you would think that the price would rocket considering the opportunity exists to double your investment, at least, within a couple of months.

maybe this will give newmont a chance to buy out MEM and get access to the waihi permits while leaving hgd's other assets in tact? oh well i guess our faith in HGD shall be rewarded :)

[craic]

Are you sure that's not 0.025 cents per share which is 2.5 cents per share rather than 25 cps?

[underground]

prospectus statement, page 9, point 4...

"A prospectus share issue of up to 22,000,000 shares in MEM at NZ $0.25 per share will be undertaken.."

so yes sir, thats 25 cents per share =)

[BAPP]

Link below may help clarify:
http://www.heritagegold.co.nz/PDF/Prospectus_251006.pdf

Refer to pages 9 & 10 as underground has indicated. Also take note of the proposed capital structure of MEM and how the shares will be reallocated.

I agree with underground that HGD may be 'splitting off' the waihi assets under MEM , to protect their other assets such as Broken Hill & Northland from being raided in the future.

Both the Waihi and Broken Hill resource are already undervalued by the market, so why let a possible 'suitor' get their hands on both projects at below value.

IMO it looks like the Directors are protecting future shareholder wealth and that should mean there is good news to come!

I'm definitely taking up my rights entitlement and will be looking for a few more.

BP:)

[croesus]

Hi Underground, hav'nt got my prospectus yet ? could you tell me the ratio.. ie if I had a 100k HGD after this 29c rts issue.. how many MEMs would I get.
regards Croesus
disc have a few more HGD then 100k plus a swag of HGDCA

[croesus]

I meant 2.9c not 29c...will also have a look at the link BAP put up a few minutes agp
cheers

[underground]

you would get exactly 1/3
so 33,333 MEM

ie 100,000 HGD @ 0.045cps (avg) = $4500 (your cost price)
+ 33,333 MEM @ 0.25cps (opening market price) = $8333.25

(market value of your complimentary MEM holding)


as you can see you will more than recover your costs in HGD at ipo stage of MEM spinoff =)

[croesus]

Good read and has clarified some of the posts on the previous page....note they have couched it with a warning that it may not happen etc etc... more certainty is needed before the HGD share price climbs IMHO.
disc will take up rts and apply.
Croesus.

P.S.
Correct me if I am wrong but if we get some excellant news soon, and the HGD price were to climb above the HGDC take up step, then HGD would also get the double wammy of warrent conversion funds .

any comment Jesse or Bap.??

[croesus]

Thanks Underground you posted whilst I was typing. Now we need some more positive news to get the S/P moving,,

[BAPP]

Yes your right Croesus, what we need is positive news and I think things are starting to move in the right direction, we might just have to be patient a while longer.

For the MEM IPO to be really successful the market will need news indicating that the Waihi resource base is in excess of 500k oz gold. This will support longer term mining and potentially interest other miners(ie: Newmont) who have spare capacity etc. (this may take a bit more time yet?)

If the MEM IPO is successful I believe the true value of these shares will be well above the listing price of 25c and this could well be the fore runner to an IPO at Broken Hill. The price of gold is still good and when you do the maths on mining 50koz gold per annum for 10 yrs @ around US$600 it highlights the potential share price.(even at US$500 the shares would be currently undervalued IMO).

Also if HGD's target of 33 million lbs of cobalt resource at Broken Hill is quantified and viable for mining, we would surely see an IPO of Broken Hill on the ASX. I'm sure this would be successful with cobalt trading at around US$15-20 per lb there is a lot of upwards potential and the Aussie investors will jump at the chance to be in early.
( just look who the main shareholders and underwriters are to confirm)

It may be taking a while, but if this is the type of scenario ahead of us, I'll be happy even if I have to wait a few more months.

BP:)

PS: I was interested to also read on pages 9 & 10 about the allocation of MEM shares to Paul Cranney, including the conversion price and options etc. All positive for the future listing IMO!

[croesus]

Blip up on the Share Price today........ next step will be bullish news from MEM re the number of ounces of gold available to be mined....

[Jess9]

I see some rights sitting at over 2c/right. Indicates the shares should be above 5c...and that is historically cheap.

MEM split with a issue target price of 25c/share looks like a great way to realise the value we know to be there right now. With PC coming on board and driving MEM,$$ for new staff and for drilling/expanding known resource and already identified high potential targets, there is quiet potential for fortunes to be made with rapid rises!! Maybe buyers today, looking over the likely change in pace for HGD/MEM and putting a toe.

Gold $ looking stronger again too, AUS goldies perking up nicely as well, with the re-assessment via MEM listing and new blood (PC as CEO), and the other gold and cobalt interests tucked away in HGD as wild cards...good times not far away me thinks : )


Croesus, what impact does the split have on warrants, any thoughts/discussions with other holders?

[BAPP]

I think someone may be playing with a few rights to see how the market reacts (note small volume etc.).

Sorry Croesus I am not sure about the status of warrants in this instance, but will send an e-mail to enquire!

Quarterly results should be announced tomorrow! However I don't expect anything exciting until end of November, which should hopefully coincide with info regarding MEM IPO. If the HGD management is going to entice investors this should be the led up to good news regarding the MEM IPO.

Gold price is starting to look bullish (but still volatile). It's anyones quess to where the price of gold may head, but if you believe in the fundamentals of a company you may be just starting to have some confidence in HGD.

It looks like things are starting to progress favouably!

Cheers
BP:)

[moimoi]

fella's....i'm really struggling to develop the enthusiasm that you have for HGD.

HGD has 8 months before 22.5 mill warrants,with a final payment due of 6.5 cents, expire. Its looking likely, with the company issuing shares at 2.9 cents, that the investors who stumped up the funds for the warrants initially will have done their dough. The company is essentially no further forward from when the warrants were issued.

To my mind the spin off of MEM is largely meaningless...and in fact negative...HGD had/has 100% of the coromandel "assets" and essentially unless you wanna stump up more funds in a possible IPO of MEM then your holding is basically being diluted via the spinoff....HGD holders are going backwards....not surprising for this outfit.


forget any blue sky dreams from Thackaringa...this has also sat on the books for years...and if it had exciting possibilities one would suspect it would have been snapped up by now.
In addition the company is intending to invest NZ$50k from the proceeds of the rights issue into the cobalt project.....how far do you think that is going to get us????

You can cut and paste the description of the status of thackaringa from this prospectus into the 2007 annual report....its status, or lack of it, will be the same.!!!!

cheers
Moi.

[BAPP]

I understand you concerns moimoi, however 'every dog has it's day' ( so they say!).

My enthusiasm for HGD is dependant on the release of good news over the next 3-6 months. When I started following this share about 18 months ago most news releases suggested that the company's exploration progress would be coming to the fore towards the end of 2006. So we are now closing in on that period of time and along with many shareholders I will be looking for some good news along with substantial improvement in share price.

There is risk, but with risk there is potentially huge gains to be made. If the statements that have been made by management are quantified over the next 3-6 month period, I think a lot of shareholders will be very happy.

Finding gold resourse levels to at least 500k oz(JORC) within the Waihi permit area is critical to this outcome and the success of the MEM listing. I feel confident this will be achieved as the area is well known for its gold/silver resource levels. (however if this does not happen within a reasonable time frame then MEM/HGD will likely be a failure)

I am willing to take the risk based on the evidence available at present. There are plenty of places to invest your money and in most cases it's whether you are comfortable with the amount risk compared to potential reward.

If you follow the history of many other gold explorers you will see the transition to explorer/miner often takes a long time with the requirement of new capital input being frequent. So I am not surprised by this with HGD. Like many shares the right time to 'buy in' can be difficult to judge and now it is a bit of a waiting game!. (I hope I've got it right.)

The activity reports released today reiterates what has already been announced over the past few weeks, but the reference to the MEM listing gives me some confidence that this IPO will proceed successfully.

Cheers
BP:)

[underground]

"..In conjunction with prospectus preparation to spin-off Mid-Earth Minerals Limited, the company is reviewing and updating its resource estimate for the Talisman mine.." :)

[croesus]

One can presume that HGD management would only be pushing MEM if they had confidence the required amount of gold was available........... its a no brainer in my view... otherwise why bother ? Whilst I am not betting the Ranch on this stock... I have got the top paddock on HGD and its derivitives... a bigger part of the Ranch is on WID... and whats left is on TPC....
The other Ranch or 2 are in boring stocks like TAY, JWI and TTK. CAV etc etc
cheers Croesus

[trackers]

quote:Originally posted by underground

"..In conjunction with prospectus preparation to spin-off Mid-Earth Minerals Limited, the company is reviewing and updating its resource estimate for the Talisman mine.." :)


Now that is what we like to hear

[Jess9]

quote:Originally posted by underground

"..In conjunction with prospectus preparation to spin-off Mid-Earth Minerals Limited, the company is reviewing and updating its resource estimate for the Talisman mine.." :)


Spot on! $$

[BAPP]

Couldn't get the 'link' to work for some reason, so have copied & pasted todays announcement for those interested. Of special interest is the part about reviewing and updating the resource estimate for the Talisman mine in conjunction with the spin-off Mid-Earth Minerals. Signs of good news a head as some of you have already seen.

Cheers
BP:)

REL: 1656 HRS Heritage Gold NZ Limited
QUARTER: HGD: Second Quarter Activities Report
Quarterly Report to 30 September 2006

The directors of Heritage Gold are pleased to present the company's quarterly
report for the three months to 30 September 2006. During the period Heritage
undertook the first steps to restructure and recapitalise the company. This
included a proposal to spin off of the New Zealand gold properties to a new
company called Mid-Earth Minerals Limited, the issue of new shares in
Heritage to sophisticated shareholders in Australia, and the Company's launch
of a 1 for 4 pro rata renounceable rights issue.

Highlights include:
- Mid-Earth Minerals spin-off
- NZ$5 million capital raising planned
- Managing Director appointed
- Prospectus in preparation
- Heritage Gold rights issue
- Rights trading: ASX 18 Oct - 15 Nov 2006
NZSX 25 Oct - 20 Nov 2006
- Issue closes 22 November 2006

- Matthew Geoffrey Hill appointed as Director

- New opportunities for Heritage

MID-EARTH MINERALS LIMITED

During the quarter Heritage Gold commenced the spin-off of its New Zealand
gold properties into a special purpose subsidiary, Mid-Earth Minerals
Limited.

Mr. Paul Cranney, who will head up Mid-Earth Minerals, returned to New
Zealand earlier this year after 20 years in the Australian mining industry.
He brings a wealth of experience to Mid-Earth including a strong technical
background in exploration and mining, and a depth of experience in project
generation, evaluation, feasibility studies, and overseeing production and
major acquisitions. Mid-Earth Minerals is currently establishing a skilled
management team under Mr Cranney's direction.

Following the rights issue, Heritage shareholders will be given an
entitlement to shares in Mid-Earth Minerals, which will apply for listing on
the New Zealand Stock Exchange in conjunction with a NZ$5 million capital
raising.

Heritage shareholders will receive shares in Mid-Earth Minerals through a
reclassification of their shares in Heritage, and then redemption of those
shares in exchange for ordinary shares in Mid-Earth Minerals. The capital
raising will enable Mid-Earth Minerals to escalate exploration and evaluation
work in the Waihi district, focussing initially on the advanced Karangahake
project.

Heritage is currently preparing the offer documents for the proposed issue of
shares in Mid-Earth Minerals and is finalising the details of the spin-out,
including the proposed amount of the capital raising.

HERITAGE RIGHTS ISSUE

At the end of the quarter Heritage announced a 1 for 4 pro rata renounceable
rights issue to shareholders at an issue price of AU$0.025 or NZ$0.029 per
ordinary share to raise NZ$1.0-1.2 million. Heritage has dispatched the
combined Investment Statement, Short Form Prospectus and Transaction Specific
Prospectus for the rights issue to shareholders and warrant holders. The
document has been registered in New Zealand and also lodged with the
Australian Securities and Investments Commission (ASIC) under Section 713 of
the Australian Corporations Act 2001.

Up to 37,062,433 new shares will be offered to all existing shareholders with
registered addresses in New Zealand or Australia at 5pm (NZ time) on 24
October 2006. Shareholders are being offered one new share for every four
ordinary shares they held in the Company on 24 October 2006.

Payment for the new shares will be NZ$0.029 or AU$0.025 for each new share
accepted.

An application to participate in the event of a shortfall may be made by a
shareho

[Jess9]

Hi BAP, thanks for the above.

See Gold blew through the $600 ceiling, fundies back in!

A doubling in JORC reserves next, would make for a fine chrissy pressie ; ) We need this for the start of a serious re-rate, of our early Ox... : )

[BAPP]

Hi Jess9

An upgrade on the resource base estimate of the Waihi permits is needed to launch a successful IPO of Mid Earth Minerals

With this we could see the NZX listing take place at the end of November or early Dec and with gold heading back up past the US$620 barrier the timing looks good.

IMO the latest announcements suggest that the HGD management are confident of a significant resource base increase for the Talisman mine. I also think there is the possibility of a joint venture partner being involved with MEM. (this is one good reason for splitting off the Waihi resource.) I also look favourably on the comments referring to the outlook for the company not being solely dependant on gold.

If a JORC compliant resource base of 500k oz of gold (+ any silver) is confirmed then this would suggest MEM will have mining capacity for 10 years, which will be of significant interest to other miners!

This of course should mean a re-rating of the share by the markets and suggests to me that HGD/MEM will have multi bagger potential.

Jess9, I think you posted some interesting calculations based on a study released by Tennent, Isokangas Pty Consulting engineers earlier in the year. Have you revisited your figures at all?

All good from my viewpoint.

Cheers
BP:)

[BAPP]

Hi Jess

New look to the list of top 20 HGD shareholders-(is your name there?)
http://www.heritagegold.co.nz/text/invest_info.html

It will be interesting to watch the price of gold over the next week. (bulls vs bears)

What are your thoughts about HGD/MEM following the OGD example and possibly merging with a strategic partner once the IPO is established?

Cheers
BP:)

[Paddie]

Guys,

You have been talking this share up for months, remember " last chance to buy under 6c" (in August or September)and what is the share price doing.

Brought into AGS at .89-.90 a couple of weeks age, and today $1.32.

There are far better opportunities, and by the time you get your 2 or 3 times hit, it will be a non event.

Good luck
Paddie :)

[BAPP]

Well done Paddie-

Good on you- I hope all your investments do as well! I always like to hear about people making money and doing well. (one of the problems in NZ is the tall poppy syndrome)

Noticed SMM went over $3 today, you could have bought in this time last year for under 20 cents. I wish I had, but I left it a bit late, by about 3 months. (Never mind-maybe next time)

Keep up the good work-I hope we can both make money on whatever shares we decide upon.

Still smiling!

Cheers
BP:)

[Jess9]

Hi BAP.

Reading today, some money likely flowing into NZX shortly with funds looking for good returns, may be lucky timing for an IPO : ) with gold price forging up!

OGD style merger etc is a possibility, maybe more so when the resource is doubled.

Too poor for the top 20 shareholder list, but might be amoungst those warrant holders.

[Jess9]

Gold now $624...heee hee he ; )

[BAPP]

Hi Jess

Would that be top 15- or otherwise? (I missed out on top 20 shareholder list, but may have made top 25???)

If you are still there Paddie- Did you pick SMM this time last year?

When you pick a share like that and make that much money once, you always think you can do it again, thats why I picked HGD! (probably more good fortune than good management with SMM)

The great thing about investing and share chat groups is that some things remain a mystery!

Cheers
BP:)

[underground]

the market price for this share is now below what i paid in the rights issue... omg... im truly at a loss trying to quantify my losses.

[Jess9]

With a spec. share best not to focus on day to day, especially right now. while the recent trend I accept is down, there is significant internal change happening within the coy now. This I believe will be the turning point price wise - and soon.

J9

[Jess9]

The sector is also going into a boom i.e. gold price is heading North again...so when resource base is increased, price should reflect this possible t/o etc, who knows ; )

[Jess9]

Also the coy has vertually no debt, decent cash (after recent corporate actions) and a decent sounding plan going forward.

Finally, don't forget the 200K oz already located - and in an existing (albeit requiring upgrade) mine structure, in an existing mining town (with required local support/social infrastructue/mining acceptance). Finally remember our fields border an existing world class player...

...and Paddie while this may seem to you to be 'talking this one up', I don't care as a few words from me on this site is meaningless and is not going to impact the price an iota, rather, when the above happens it will occur due to market force...and be like the tide coming in, unstopable. I await next year with interest.

J9 : )

[BAPP]

Hi Underground

I wouldn't worry about short term "blips' in the share price, these often happen for no apparent reason. I myself have a standing order to "buy' at present on the pre tense that someone may need to off load a few shares (cheaply) to gain some ready cash.

If I can manage to pick up an additional 200K or so of shares at under 2.9 cents I will be very happy.

I think the points that Jess9 has just posted are all very valid. This is the time to be patient as we only have a few weeks to wait before more detail about the IPO will be announced. Once the IPO detail is known and we have a resource upgrade to coincide, you will wonder why you ever questioned your purchase.

(You will feel just like those people who owned Paladin shares worth a mere 1 cent in 2003 and still owned them when they hit $7 just 3 years later- imagine the party!).

Cheers
BP

[Jess9]

Me too BAP, but via rights probably - depending on head price etc. I reckon due to the silly discount - to ensure take-up after this slow year, the valuation on the coy is well below a fair value.

After the rights issue closes and things settle and proceed, we should see some good upside movement. Thats my pick.

Darkest just before the dawn...or is that just before the tempest hits ; )

[da player]

Maybe we have seen the bottom,

not large volumes but certainly --hopefully the start of an upwards trend.

For me this is a good speculative stock, at this "relatively cheap" price i think there is potential for large % gains.

Pressure is on the gold price and as a doulbe whammy the NZ dollar could add value to this one.

It will be an interesting run upto xmas, certainly 10cents is acheivable once again, thats potentially 200% profit???

Heres looking forward

[BAPP]

I'm not sure that the lows of 3cents are behind us just yet! Some people are still off-loading small parcels of shares - probably for some cash flow? (cos' I don’t think they will be making a fortune out of the few shares that are being traded!)

While the share price has almost halved there are not any significant volume sellers out there, so I quess most shareholders are willing to ‘hang in' a bit longer to see what eventuates with the IPO. Which tends to signal that the top shareholders are confident in a better return.

Remember approx 90% of the shares are held by investors with parcels of 100k+ and we don’t see many parcels of that size on the sell list. (better volume on the buy side now- albeit at low prices)

If the price of gold can continue on a bull run the timing of the MEM IPO couldn't be
better! (just need that resource upgrade to make the wait really worth while!)

I have posted a link below that could make some 'light reading’ if your interested in where the gold price may be heading. (check out the metal sector link on this page also)

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B23556CD8%2DDCCA%2D4870%2DBBF9%2 DB36E41451F24%7D&siteid=bigcharts&dist=news

There's usually lots of interesting stuff at www.marketwatch.com

Cheers
BP:)

[croesus]

Currently a stock for Contrarians, MEM should be the circuit breaker.. have sufficent Warrants and Head Shares for now.... bit more go forward from Management would be appreciated.... espicially in relation to the Aussie deposits..... but for a NZ Penny dreadfull miner I feel WID is a better option.... when ASN get their approval WID at 2.2 will seem very cheap.
disc HGD WID TPC amongst others

[Jess9]

Anyone thinking of over subscribing?

[BAPP]

Have done - I don't see any reason not to!

IMO its a sure thng that some positives will eventuate from IPO (ie: resource upgrade) and and this is as cheap as they will come.

BP:)

[craic]

Got rid last week and tried to dump my options today for the price of a meal. Got a call from Direct to say, sorry! no one in the market. Maybe I will be stuck with them and they will find something.

[lager]

They should go out and look for other resources and look at Summit (ex-Gold) Resources, they are smarter.

[BAPP]

My understanding is that the HGD management is doing exactly that! - looking to capitalise on the other resources they have permits available for, such as cobalt.

As they have indicated they do not want to be dependant soley on their gold resource and this is no doubt one of the reasons(amongst others) for listing MEM as a separate entity.

With the conclusion to the rights issue only two weeks away and a probable date for the MEM IPO hopefully announced shortly afterwards we should start get a clearer indication of where HGD/MEM is heading over the next few months. If the resource upgrade is announced to coincide with the IPO details as management has suggested we should be in for an interesting/exciting few months.

I think the half yearly report should also follow soon afterwards and with a bit of good management we will also see some increased activity/information with regards to the future of the Broken Hill investment.

Cheers
BP:)

[underground]

if the company doesnt want to dwell in gold maybe they should rename to Heritage Cobalt ? lol..

[lager]

They should diversify, go for Uranium like Summit Resources (Ex-Gold). Just call themselves Heritage Miners or anything but Gold.

[Jess9]

Our "lagard" gains traction, re announcement today...noted they stated spinoff by 1st quarter and specifically mentioned due to the required regulatory (mining?) consents!!

BAP - re your o/s... I think it will be an absolute winning move, getting extra at 2.9c is virtually stealing ; ) hope you get what you apply for. It would have been my idea also but, my wife vetoed me topping up the mortgage for extra...such an opportunity, but balanced for martial bliss : )...I'm muttering as I write...more important in the long run ; )

Exciting $$ time soon ahead me thinks!

Go HGD!!

[Fodder]

I wouldn't worry about missing out on over subscribing on the rights issue Jess, as you will probably be able to pick up as many ordinary’s as you want for 2.9 or less in the near future…sorry to say I don’t share your optimism for the Coy or to be more specific I do have my doubts over the competency of the management.

You would think, that in order to make it worthwhile for existing holders to subscribe to the rights issue and to ensure maximum subscription, the Coy would have released some updates or something to help strengthen the share price. Maybe that was what Fridays release was about...pretty pathetic attempt if it was. What is the point of subscribing to a rights issue at 2.9cents when you can buy a many as you want for stuff all more on the market.:(

I tried to sell my RB's and found I couldn't give them away...well almost I could've got .1 of a cent...what a joke. I wonder how many other holders have said stuff it to the rights issue because of the ever decreasing share price? [V]

[craic]

Sold out of this lot last week and similarly couldn't even get the 1cps for rights.To me, this is a company on the verge of collapse. The various rates of metal per ton touted over the past couple or three years have not been delivered and the company is unable to produce enough revenue to support its own continuance, hence the various devices to get more and more funds from the sharwholders. I shifted the little I got back into a more productive area and can watch the asset grow rather than shrink on the back of empty promises.

[Jess9]

Best of luck to you both - make a plan and stick to it especially with specy's.

[BAPP]

Hi Jess9,

I’m sure your right on this one!

Along with my rights I am definitely hoping to acquire another 200k more through any shortfall. Unfortunately I had to limit myself otherwise I may have been testing my marital status also!

Seems to be a little bit more interest being shown in recent days and this will hopefully escalate as the rights issue is completed and the further details of the IPO are released.

Pleased to see HGD management is being proactive and keeping the market informed about MEM IPO.

While we need the details to be finalised it looks like the MEM IPO will be quite attractive for HGD shareholders.

A resource upgrade will make all the difference to this company. If you read their website,
www.heritagegold.co.nz/text/talisman.html it seems they may be reasonably confident of a JORC compliant 600K oz gold being achieved, along with plenty of silver.( they do note that this is a target for this quarter)

Everyone has there theories on the right and wrong shares to buy or sell, but in this instance I’m confident that we will be watching HGD/MEM share values increase by many multiples in the next few months.

Like you say - GO HGD and MEM!

Cheers
BP:)

[Paddie]

Along with my rights I am definitely hoping to acquire another 200k more through any shortfall. Unfortunately I had to limit myself otherwise I may have been testing my marital status also!

Yeah right.

Seems to be a little bit more interest being shown in recent days and this will hopefully escalate as the rights issue is completed and the further details of the IPO are released.

On what basis, explain where the more interest is.
You are ramping, and buyers beware,


Good luck, what lost opportunities. Tie your money up on a dog like this.
Paddie

[Jess9]

BAP/anyone, do you have a link to the application form?

[BAPP]

Paddie,

I have to make sure you have someone to criticise. So you feel better with yourself each day as you read the HGD posts!

My reply was directly to Jess9’s post from the weekend, so you my think that is ramping, but it is not ! I am sure my reply to Jess will not make one bit of difference to the HGD share price. For example HGD’s price improved 15% today without a single post from me. (wow-how could that happen?)

As I told you once before, I have many other investments with HGD being my current speculative share and I am comfortable with the risk aspects as I understand them. As I do with all my shares I will re-access this in 6-12 months time.

I hope you do well with your investments.

Cheers
BP:)

[BAPP]

Hi Jess

Is this what you are looking for?
http://www.heritagegold.co.nz/PDF/Appl_Form_06.pdf

BP

[Jess9]

Thanks for that BAP, appreciated.

[BAPP]

Some of the investors in gold & resource stocks may be interested in this link
www.sharechat.co.nz/news/scnews/article.php/a3749313

Cheers
BP:)

[BAPP]

Hi Jess9

Do you have any thoughts on the proposed capital structure of MEM and the possible outcome for existing HGD shareholders?(see page 9 & 10 of the short form prospectus).

Your comments would be appreciated.

From my post above.- It would be interesting to see what the two geologists Peter Roberts and Dr Ray Merchant think of HGD!

The following comment from the sharechat article sounds familiar:

The price of a typical mining stock rises when an exploration success is announced. It rises further when a resource gets upgraded to a proven reserve, and increases again after completion of a positive feasibility study. Investor risk diminishes as knowledge of the resource increases.

The Mining Investor's focus is on companies which have made discoveries which the authors believe to be significant, but are still largely "under the market radar".

"The investment risk at this stage is relatively low if investors do their homework properly," Merchant says. "The potential for a stock to be substantially re-rated, as the market becomes more informed, is high."

Food for thought!

Cheers
BP:)

[BAPP]

Hi Jess9

Still hoping to hear about your thoughts with regards to the proposed capital structure of MEM and the possible outcome for existing HGD shareholders?(see page 9 & 10 of the short form prospectus).-Also any comments with regards to the rights issue announcement today. (see below)

RIGHT: HGD: Pro Rata Rights Issue

24 November 2006

Limited Company Relations
New Zealand Exchange Limited
Level 2, NZX Centre
11 Cable Street
WELLINGTON
PAGES: 1

FOR PUBLIC RELEASE

Pro Rata Rights Issue

Heritage Gold is pleased to announce its rights issue closed on 22 November
2006 with approximately $700,000 (before expenses) raised from the issue of
approximately 24.4 million new ordinary shares.

Heritage Gold managing director Peter Atkinson says he is delighted at the
support received from shareholders. More than two thirds of the company's
existing shareholders elected to take up the offer. "This is a very high
takeup given that more than 50 per cent of shareholders are based overseas,"
he said.

The funds raised will be used for further exploration with the Company's
current exploration targets, to advance the spin off of its New Zealand gold
properties, to progress the Thackaringa cobalt project, and to provide
working capital.

Heritage Gold announced on 22 September 2006 and on 9 October 2006 its
intention to raise money in a 1 for 4 pro-rata renounceable rights offer. The
company subsequently issued a combined Short Form Prospectus and Investment
Statement and Transaction Specific Prospectus dated 25 October 2006.

Today, Heritage Gold issued a total of 24,420,201 shares at NZ$0.029 or
AU$0.025 per share, following receipt of valid applications accepting
entitlements under its renounceable rights issue offer and payment under the
terms of its offer. Around NZ$669,350 (before expenses) has therefore been
raised from these applications. The issue was partially underwritten by
Rundle Capital Partners ("Rundle") who received a fee of $18,531. No shares
were issued to Rundle under the underwriting arrangements.

The shortfall under the offer, is therefore, 12,642,232. The Board is
considering applications received for the share comprised in the shortfall
(including those received from share holders and warrant holders). The
shares comprised in the short fall must be allotted no later than 25 December
2006.

Warrant Conversion Price

Under the terms of the Warrants stated in the Prospectus dated 15 May 2002,
when the Company makes a pro rata rights issue to holders of shares in the
Company, the price to convert to a fully paid ordinary share in the Company
is adjusted. Accordingly, the Company advises that following the rights
issue allocation above, the conversion price to convert a Warrant to a fully
paid ordinary share has been adjusted from NZ 6.5 cents to NZ 6.3 cents.

Sue Sangster
Company Secretary
End CA:00140422 For:HGD Type:RIGHT Time:2006-11-24:

[Jess9]

Hi BAP. Responding to your two questions;

impact of MEM allocation will be on all equity holders, maybe the method noted reflects this...

Take-up of rights was quite good, considering coy performance to date. Share placement, rights money, with the management change (at MEM) is a good start for progress that can be measured by share appreciation. Lets review progress (or lack of) in the 1st quarter 2007.

I scraped a few extra $ for some os, call me a massachist ; )

[Jess9]

Gold. North of $640 US an OZ today!

[Jess9]

Hi BAP. Did I read today that our little gold mine will start drilling 1st quarter 2007? Logically - so as to issue MEM, on/after an upgraded gold and silver resource...our waiting is coming to an end.

I think holders that did not subscribe at 2.9 will be feeling ill, but around March 2007 ; )

[BAPP]

Hi Jess,

It all sounds good to me, especially after reading the article in the NBR. The cobalt resource(blue gold) may just put a big smile on shareholders faces.

Looking forward to the JORC resource upgrade soon too.
Exciting times 1st quarter 2007.

Cheers
BP:)

[croesus]

BAP is this article in the latest NBR ?
cheers Croesus

[BAPP]

Yep! page 6 - 'Heritage restructure enters second stage'.

It would make a nice shareholder Xmas present if we could get some more detail in the next month or so!

Cheers
BP:)

[Jess9]

Thanks BAP. Havn't read that yet, what is the overall tone of the article?

[underground]

Heritage restructure enters second stage

The National Business Review - 01 December 2006


Cobalt interests could follow the decision to spin off gold assets
Hugh de Lacy

Hard on the heels of spinning off its Coromandel gold assets, dual listed explorer Heritage Gold seems to be preparing its Thackaringa cobalt holding at Broken Hill, New South Wales, for a similar fate.

Heritage is in the process of raising $1-1.2 million by spinning its gold discoveries, which are based on the historic Talisman mine near Waihi, off into a new Zealand-listed company to be called Mid-Earth Minerals.

In October the company announced a one-for-four pro-rata renounceable rights offer.

This closed on November 22 with the issuance of 24,420,201 shares at $NZ0.029 or $A0.025 each, raising $NZ669,350 before expenses.

This result has left the company with a shortfall of 12,642,232 shares that managing director Peter Atkinson said he expects to be mostly taken up by existing shareholders who have applied for extra entitlements.

The company has until December 31 to allocate any shares that do not get taken up by existing shareholders.

Mr Atkinson said he was "delighted" with the initial uptake of the issue "given that more than 50% of shareholders are based overseas."

He said the funds will be used for further exploration, for working capital, to advance the spin-off of the company's New Zealand gold properties and for further work on the Thackaringa cobalt project.

Though Mr Atkinson could not confirm it, it seems likely that Heritage intends selling its 33% interest in Broken Hill Cobalt, which is the 100% owner of the Thackaringa project managed by Heritage.

Thackaringa comprises two cobalt mining leases and an exploration licence.

Two prospects, Pyrite Hill and Big Hill, have inferred resources of about 15mt at about 0.1% cobalt to a depth of 100m, with further exploration potential both along strike and down dip.

Pyrite Hill has a minimum 10-year production life, and between it and Big Hill the Thackaringa project offers a total potential resource between 23 million and 32 million pounds, worth between $US360-480 million ($NZ540-720 million).

Cobalt is presently fetching about $US16/lb ($NZ24/lb), and the Pyrite Hill Stage One concept study envisages an opencast mine and concentrator at Thackaringa, with the concentrate being sold direct to China.

With additional income from feldspar and rutile, this would give annual revenues of $A48 million ($NZ55 million) comprising operating expenses of $A27 million ($NZ31 million) and cashflow of $A21 million ($NZ24 million), against a capital expenditure of $A42 million ($NZ49 million).

The project offers additional options of off-site and on-site processing involving potential capital expenditure respectively of $A59 million ($NZ69 million) and $A55-113 million ($NZ64-131 million).

Often referred to as "blue gold," cobalt is a specialty metal with uses ranging from batteries and pigments to the aerospace industry.


--------------------------------------------------------------------
Hope this helps - pulled this off University of Auckland database.

[underground]

in the fairness of a balanced argument i also also releasting another article from the University of Auckland database..(i feel sorry for this dude) but the real gem is that it shows peter believes the resource of 500,000oz exists..

LISTED COMPANIES: Heritage told: Show us the gold
The Independent Financial Review - 04 OCT 2006 : Page 003

MCNABB DENISE CAPTION: Heritage Gold drilling operation: Who benefits? FAIRFAX/WARWICK RASMUSSEN

EXPLORER Heritage Gold's plan to list an offshoot company on the NZX by Christmas has miffed one loyal investor

Wellingtonian John Mowbray fears there has been so much dilution of Heritage's shares that his large pile of warrants in the company will never be worth converting to shares. He bought 20% of Heritage Gold's 25 million warrants issued in 2002.

Mowbray travelled to Auckland to press home his concerns at the company's annual meeting last Friday.

Heritage has 200,000 ounces of gold and 800,000 ounces of silver proven in its Karangahake Project but has decided to hive off the assets into a new company, Mid-Earth Minerals Ltd.

Mid-Earth will be run by geologist Paul Cranney and a new management team with "proven ability to take an identified gold resource through the evaluation stage and beyond that," the company says.

Heritage intends retaining a stake in the new listed company.

Mowbray says the move means Heritage is losing its assets - the gold that should be taken out of the ground and returned in share-price growth to shareholders.

He said the shares would have to get above 6.5 cents to be worth converting the warrants. The stock is now trading around 2.5 cents a share.

Heritage managing director Peter Atkinson disagreed but said he could see where Mowbray's concerns lay. He said the warrants had until June next year before they were exercisable.

There was also a formula that reduced the conversion rate of the warrants with the issue of new shares, said Atkinson.

He was confident the share price would rise with the company's new direction into cobalt exploration in Australia (where it owns a third share in a cobalt exploration company);
further exploration in Northland and the Waihi district for gold and other minerals; and benefits from Mid-Earth's Karangahake gold extraction.

Exactly when Mid-Earth would list, who would be on the board, and the size and terms of a Heritage stake were still being worked out for a float prospectus, Atkinson said.

The company's new direction gave Heritage's shareholders an exposure to the upside potential represented in the Karangahake project, the proven gold reserve near Waihi, he said.

Exploration would continue in a 15km radius of Waihi over several thousand hectares because there were indications the 200,000 ounces of gold could increase to 500,000. "You really need a new set of skills and a specific focus," he said.

Atkinson said Heritage's strengths "lay further up the value chain in the prospecting and initial resource identification phases."

Another beef of Mowbray's was the decision to announce a rights issue after notice of the annual meeting had been sent to shareholders. He said this increased the share dilution as it came on top of the company's raising just over $A416,000 through the issue of 16.7 million new shares to a bunch of Australian investors last month. The go-ahead to issue these shares was given at last Friday's meeting.

Atkinson said a stand-alone treatment plant designed to take all the projects forward in Waihi district would be developed by Mid-Earth.

He said Heritage's future value lay in repeating the Wahi experience and continuing to build up resources.

Copyright¸The Independent (579 words)

[Jess9]

Thanks Underground, while uncertainty prevails, the following are exciting extracts (to me anyway) from your post, above;

"This result has left the company with a shortfall of 12,642,232 shares that managing director Peter Atkinson said he expects to be mostly taken up by existing shareholders who have applied for extra entitlements (Is PA talking about you here BAP ; )


Pyrite Hill has a minimum 10-year production life, and between it and Big Hill the Thackaringa project offers a total potential resource between 23 million and 32 million pounds, worth between $US360-480 million ($NZ540-720 million).


With additional income from feldspar and rutile, this would give annual revenues of $A48 million ($NZ55 million) comprising operating expenses of $A27 million ($NZ31 million) and cashflow of $A21 million ($NZ24 million), against a capital expenditure of $A42 million ($NZ49 million)."

Now HGD Board, manage the above well, and share that wealth!!!

[BAPP]

Not me Jess, I'm not in the position to apply for that many additional shares! (Just looking for a top up)


Thanks for posting those two articles Underground. Hopefully Mr Mowbray's concerns will be elevated as further progress is made with regards to the latest announcements.

The Thackaringa project sounds like it may be heading towards an IPO, much the same as the Waihi spin-off. IMO this option would provide the best increase in value for shareholders. However much like the Waihi resource we need to have the resource levels confirmed and a realistic time line.

This news and other recent announcement seems to indicate that management is fairly certain of a positive resource upgrades. If both projects prove to have a production life of 10 years plus we will see some serious interest from other miners/investors and that must surely mean $$ for existing shareholders. (IMO multibagger potential if resource confirmed).

The important thing is that some progress is finally being made and we have some insight into the company's direction. It's all good!

Cheers
BP :):)

[BAPP]

PS: With the price of gold heading upwards of US$640 and many experts/commentators suggesting/expecting the price of gold to keep climbing in 2007, the timing of the MEM IPO could be perfect for HGD and shareholders.

For those HGD sceptics amongst us I suggest you do the maths on the possible resource levels that have been suggested, then calculate the costs, then go and buy some shares before you miss the chance of making some serious money.

(whoops! have to be careful because Paddie will accuse me of ramping and I wouldn't want that!-so the clarify I do own HGD shares)

However IMHO, I believe HGD could be worth in access of 50c/share if the suggested resource levels are confirmed and MEM and Broken Hill are listed successfully. (and everyone should be able too work that out!, by calculating the estimated level of resources, subtracting the costs etc.) . What's more I'm basing my calculations on a discount price on both gold & cobalt prices as at today.

Until the next posting!

Cheers
BP:)

PS: Waiting to hear from you Paddie! it would nice to hear some positive thoughts!

[craic]

BAP. I did exactly what you suggest two or three years ago or maybe even longer and the figures seemed impressive then. I still have the newspaper cutting telling me the recovery rates that they should be getting in 2006. Instead, they were asking for more money in 2006. I got out and my dollars reinvested will equal you 50cps gain elsewhere long before this lot comes right. Ask yourself why, if this is such a good punt, shouldn't the wheelers and dealers be fighting each other for a piece of the action? Do you honestly think that all thise people with all that expertise in assessing mineral investment are blindfolded?

[Jess9]

I think PA now accepts he does not have the skill set, or required focus to take Heritage from explorer to producer, but has contracted in these skills from someone who can (i.e. the appointed CE has succesfully demonstrated these skills in his previous employment, and he also has been provided with attractive equity incentive). This is the key difference now, Craic.

The current share price reflects your concern (you refer to the past lack of "do", and I agree) - so, your call on tomorrow now (I've already made mine). The question you must now ask is; Will MEM (with the recent funds raised) and directed by an experienced CEO deliver shareholders a profitable gold producing operation - I understand once bitten...

Also remember that gold is early bull, the 2007 (conservative) target I recently read was US $750/oz.

[BAPP]

Craic, I can understand your frustration/concern about the share price and slow progress over several years. I would also be concerned if I had seen the value of my shares slide continuously over 2 or 3 years. The lack of investor interest and low share price no doubt has a lot to do with the lack of news and the continuous need to find more funding.

However while we should always learn from the past if we spend too much time looking backwards we forget how to move forward. When I decided to invest in HGD all the reports and announcements I read indicated the 4th quarter of 2006 was when the company would begin to reach its potential. For me this seems to be happening within the time frame management indicated and the extra funding requirements is not unusual for for junior explorers.

IMO the HGD management has acknowledged their lack of experience in mining by appointing Paul Cranney as the CEO of Mid Earth Minerals. MEM will have a separate Board of Directors also. Paul Cranney has experience in this field and has been successful in mining in Australia. I’m sure he would not be putting his ‘neck on the line’ if there was no potential or progress to be made with MEM.

Once MEM is listed and the new management has taken on the role of progressing the gold resources, the HGD management will be able to drive a similar scenario with Thackaringa. IMO this is why Southern Cobalt is the major shareholder of HGD. If the target cobalt level is confirmed there will be huge revenues generated and an IPO of the Thackaringa project would generate huge investor interest, especially in Australia.

I would find it hard to believe others(investors/miners) would not be interested in HGD if the following resource levels are confirmed.

500,000 +oz gold @ $820 per oz
1 million oz silver @ $15 per oz
30 million pounds cobalt @ $24 per pound

Imagine the revenue potential, especially if these resources continue increasing in price. With gold on a bull run, many experts and commentators are suggesting the price of gold will increase by 10% plus next year and the Chinese want the cobalt too.

That is a lot of potential revenue and even after costs there is significant $$$ left , which interests me and I’m sure it will interest a few others too.

So Craic, while you may have lost out with HGD once before I would recommend you take another look and reassess the situation. IMO the company is now a ‘different beast’.

Cheers
BP:)

[Jess9]

Exciting paragraphs, for me anyway, from the latest quarterly…

On 10 October 2006 the Company appointed Matthew
Geoffrey Hill to the Board. Matthew has an extensive
background in the Australian and international equities
markets and specialises in corporate financial advice,
mergers, acquisitions and restructuring.

and...

Joint venture discussions with overseas companies
were held during the second quarter. These discussions
were entered into on the basis that any outcome would
be advantageous for the proposed spin-off of
Mid-Earth Minerals

and...

Further drilling at Karangahake in the first quarter of
2007 is planned to test areas that have already been
identified as favourable for mineralisation.
The objective is to expand the existing resource base
at Karangahake, where the target is a resource sufficient
to support a stand-alone treatment plant, estimated
at 500,000 to 600,000 oz of gold.

Also...gold USD$ price on the move up again!

[underground]

i wonder who will head up MEM now. i guess this is gonna mean the IPO is going to get delayed..kinda feels like the board is stalling.

its good that they intend to expand the resource base in Q / 07 but im starting to feel that atkinson was confident of this resoure existing anyway which kind of leaves you wondering what they have done this past year.

i hope this company doesnt have to rely on share placement for capital raising ever again. i hope to see results in the near future

[Jess9]

Shame PC will not be taking MEM on. I dislike such changes early, after such a positive start.

Maybe, however this arose from him not getting enough of the pie, with a new os JV player coming onto the horizon... (see my extract from the Quarterly above).

Considering the gold Bull, and Newmont or someone who may purchase Newmont's Waihi operations, a JV to expand the total (i.e. to combine HGD and Newmonts interests)to increase the existing resource/production life may start looking mighty tasty!!

A careful os player may opt for JV to assess the quality of the area, then when proven up go for the whole cake!!

If HGD plays the above well (and hopefully the new Board appointment will ensure this) the resource cycle is right for all shareholders to do very, very well.

I reckon their is a good chance any recent (rights) over subscription will be well rewarded, for those who had dared. I wont mind a quick tripling in current share price if the above occurs in the new year : ))

But, time will tell...

[BAPP]

Seems like a good news vs bad news scenario to me.

I was disappointed that HGD management had not secured Paul Cranney as MD of Mid Earth as they had initially announced, but was comforted by the outlook of a joint venture with an overseas investor/company which may be very advantageous.

They seem very confident about a significant resource upgrade and the sooner this is established the better and the more likely a joint venture partner will be established. This should be a good outcome for existing shareholders.

Peter Atkinson seems to be more proactive with his news releases lately which is positive. Now we need to see the company progress these initiatives within the time frames they have indicated, rather than having the continuous hold ups that have plagued the company in the past.

Jess you are right -time will tell, but I don't think shareholders will be forgiving if they take too long (more than 3 months) to get MEM on track and further delay details on Broken Hill progress to the market.

I'm assuming my application for further rights shares was successful, but will be wanting to see some action rather than just words in the next quarter.

Cheers
BP:)

[BAPP]

For those interested:

REL: 1658 HRS Heritage Gold NZ Limited
ALLOT: HGD: Heritage Gold Pro-rata Rights Issue

On 25 October 2006 the Company issued a Prospectus for a pro-rata issue of up
to 37,062,433 shares.

The terms of the Prospectus included the ability for investors to apply for
any shortfall that may arise and for the Directors to place any remaining
shares at the same price and under the same terms and conditions of the
offer. Entitlement applications were received for 2,442,201 shares and
applications for the shortfall totalled 5,250,936 shares.

Heritage Gold NZ Limited ("Heritage") completed a share placement
("Placement") to professional and sophisticated investors in Australia on 21
December 2006 of the balance of the shares available under the rights issue.

The Placement of 7,391,296 ordinary fully paid shares at an issue price of
A$0.025 per share raised A$184,782 less placement fee of 2.5%. No related
party participated in the Placement, which was managed by Far East Capital
Ltd, Sydney.

All Placement shares will rank equally in all respects with the existing
ordinary shares of Heritage.

Cheers
BP:)

[BAPP]

Just a quick note to wish all readers a great New Year.

While I'm hoping to see HGD & SMM climb to new highs over the next quarter I hope everyone is successful with their own investments.

To all the regular HGD posters - Have a good one!

Cheers
BP:)

[Crypto Crude]

I'd just like to thank those in this thread that gave their unconditional support for HGD this year ...
some Noggers could take a leaf out of your book, jess and bap good stuff...
the post I liked was Jess said " is anyone thinking of oversubscribing"
BAP replied - Have done- I dont see any reason not to... and i sure you ment it with such conviction... awesome
I'm now on board by having picked this stock in nz07 share picking comp...
im fully leveraged into shares at moment so i have no excess cash... later next year when I take some profits, and if this stock is around current levels or 4c then I will float on in...

My dad thinks that gold is at the start of a 30year cycle, he sure has read many articles that back this up, and we are only at the beginning...
u can read some bullish articles at KITCO.com... later to the faithful

[clar]

Happy New Year everyone.

From an HGD follower's point of view, lets hope that by later next year we have left this 3-4c level well and truly behind. How holders are treated in the MidEarth float could well be the clincher between holding or dumping. That and some (at last) reported progress.

[BAPP]

Hi Clar,

I hope your New Year celebrations went well.

I will be looking for steady progress and news from HGD management over the next quarter. This is the time for HGD managment to progress the company and make things actually happen.

We will need to see a favourable outcome for existing shareholders with regards to the MEM listing. As they were not able to secure Paul Cranney as MD as originally indicated I suspect they will need to address this issue very quickly in the New Year.

For the HGD management to retain the support of shareholders it is essential that the MEM IPO happens within the parameters that have already been indicated and within the next quarter.

However IMO the most important aspect to the success of HGD/MEM is reporting a JORC compliant upgrade of the gold resource levels in excess of 600k oz.

Once MEM is established, HGD management should take a similar approach with Broken Hill, but this may be a little further into 2007. (Along with gold the price of cobalt has been improving and the longer term outlook seems good!)

On a different subject, I agree it was great to see SMM steaming ahead on the ASX today. (Glad I still hold a few thousand.) You would be wise to hold these shares for a while yet, IMHO they will head upwards throughout the year.

All the best to everyone with their investments.

Cheers
BP:)

[temuk]

Well BAP instead of looking to management for
steady progress and news (witch is always good),
take a look at todays s/p close!!
Is someone trying to ramp up the price on low volume??? Or is it genuine??

You experts tell me, I'm just a bloody mid-aged freezing worker from Temuka!!!

[BAPP]

Hi Temuk,

Good to see HGD close at 4.8 cents, but there's not enough trading volume to give any indication of where the price is heading in the short term. Only 5000 shares traded at this price and 15000 in the day, so someone may have been rounding off a parcel or just trying to push up some interest.

Who knows?

But whatever the case it is up to HGD management to progress the MEM IPO and annouce a gold resource upgrade as quickly as possible, otherwise the market /shareholders may be unforgiving after their long wait!

I'm confident there will be positive news in this quarter and it will be interesting to see whether yesterday's jump prompts any further interest. Time will tell!

Cheers
BP:)

[Crypto Crude]

hey temuk...
HGD is an illiquid stock... its dogged by low trading volume, large spread between bid and ask...so whenever someone buys or sells at market price, there is a large increase or decrease in SP...and if they dont buy at market they may have to wait for months to push through their order...
advantages on illiquid stocks include that of yesterday where a sudden large increase can occur...
HGD could easily increase a hundred percent this year so well worth a look..
[8D]
.^sc

[Crypto Crude]

hey temuk...
HGD is an illiquid stock... its dogged by low trading volume, large spread between bid and ask...so whenever someone buys or sells at market price, there is a large increase or decrease in SP...and if they dont buy at market they may have to wait for months to push through their order...
advantages on illiquid stocks include that of yesterday where a sudden large increase can occur...
HGD could easily increase a hundred percent this year so well worth a look..
[8D]
.^sc

[clar]

HGD is one of the speculative stocks I'm currently following on the NZX (the other being WID). Volume and interest has been low recently, and last year's rights issue dragged the price down a bit. We're all pretty much in wait and see mode at the moment. Temuk - as Shrewd Crude mentions above, I think its pretty hard to read anything too significant into yesterday's sharp rise on smallish volume.

[steve fleming]

Far East Capital ( Warwick Grigor) handled the latest placement, one of the better resource investment bankers going round. This is a pretty good sign for HGD.

I think I said this before here, but IMO management stuffed up big-time wasting too much time on these non-value creating corporate manoeuvres, while its major asset (Waihi) stood idle.

They just need to get some serious drilling begun…. then there will be positive news flow, and put HGD back on mining investors focus…it just baffles me as to how slowly this company moves

Management failed in 2006 – they really need to deliver in 2007….if they can release a 600K oz resource, HGD will re-rate several times over.

[Jess9]

SF, your comments are spot on.

IMO, 2007 will be a very, very, good year for past (and patient) HGD holders. I over subscribed for the recent rights issue, and am happy to have received my full ask.

My guess for 2007 is;

1. Gold will carry on rising (average over $700 US/oz),

2. HGD will re-rate, fast on a sizably resource increase, and

3. We will see either a full takeover offer or merger proposal following such resource upgrade

And on that note...gooo HGD!!!

Best new years wishes to all investors on the Forum!

[BAPP]

Happy New Year Jess9,

That may be just the start for HGD in 2007.

If the HGD management are succesful with the MEM IPO, I suspect they will try a similar approach with Broken Hill. If the resource levels indicated for Broken Hill are correct a 33% stakeholding will return huge profits for HGD aand it's shareholders.

Everything seems to hinge around resource upgrade confirmation, and I think this needs to happen within the next next month or so, to keep investor interest and confidence.

Good management of these resources is the key. As you say--- Go HGD.

Resource upgrades to the level suggested will make 4.8 cents sound very very cheap.

Well done on capturing some extra shares through the shortfall application! I managed to get 175k of shares on top of my rights so my average price look very good now!

Cheers
BP:)

[croesus]

Firming slightly, 5.6/ 6c.....trades at 5.6... now whats the HGDCA strike price.... Bap or Jesse...?? in fact should it not decrease again on the back of the latest share issues ??. The conversion value I mean.
cheers Croesus ( Will be staying at the Blackball Hilton 19th and 20th....can't wait.)

[temuk]

Hey Croesue

While you are at the Blackball Palace can you
keep your eye to the ground on what is happening
at Pike river ?

would be much appreciated by quite a few

Cheeeers

[trackers]

Good rises today I see... Was thinking a one off purchase, but a healthy rise on htm too. good to c

[trackers]

quote:Originally posted by temuk

Well BAP instead of looking to management for
steady progress and news (witch is always good),
take a look at todays s/p close!!
Is someone trying to ramp up the price on low volume??? Or is it genuine??

You experts tell me, I'm just a bloody mid-aged freezing worker from Temuka!!!


As I mentioned last post, if you look at HTM.asx its moving on up also which would indicate to me at least that this is not a small parcel grab / ramp. Also, this is the third day of rises.. But who knows? If they're near a rerating (which they indicated would be this quarter), we'll be in for a lot more to come :)

Happy new years everybody btw

[croesus]

Hi Temuk....when I was at Blackball a while back I had a couple of beers at the Working Mans Club (opp the Hilton and 50 m down the road) the old diggers were very sceptical about Pike, bad ground they said, seams would peter out, bad water seepage and flooding.. worse even then the Roa mine.... maybe they were winding me up..dunno.. why should they ?
Be interesting to have another chat in a fortnight... dash starting to sound like Mc Dunk.

[Jess9]

Hi Croesus, I understand that it will now cost 6.3 cents to convert each warrant, down from 6.5 cents.

[croesus]

Hi Jess
The 6.3 figure for HGDCA was announced on 24 Nov, at that date there were 12642232 shares still to be alloted (shortfall) not sure if the 6.3 takes into account the fact the shares will be alloted, hence it is the correct figure, or now that the shares have been alloted the strike price will drop further ?
Either way HGDCA will have a value if the H/S move up another .5c
cheers Croesus

[Jess9]

Gold fever hits Waihi? Anyone read the Sunday Star Times today?

Newmont's newest mine - Favona, has just poured its first bullion bar (20kg of gold). Interestingly the articule mentions that the Favona vein is wider and deeper than first anticipated. Newmont sounds like it will be staying for the forseeable future (this was in some doubt in the recent past, due to wind-down of the Martha pit). The articule goes on to suggest Newmont is currently expanding operations in the area again, on their Favona success, and will employ up to 350 people again, in Waihi.

Note, amongst HGD's permits, HGD has a mining permit for a large piece of dirt adjoining the Martha pit, and I think the new Favona mine. Be interesting to see where Favona's "wider deeper" vein now ends, probably not in HGD's permit, but you never know ; )

I know we have speculated on this in the past, but HGD's Waihi permits alone, must suddenly be looking more attractive to Newmont with their resolution to stay in Waihi, and the logical requirement for them to add additional local gold resource. Especially attractive, with regard to HGD's share price, being at an historical low - basically sold down to this level only due to HGD's developements running in "NOG time"!!

Anyway 2007 should be an interesting one for HGD. One thought, if HGD is re-rated, don't sell all in one hit, just look at Summet's price graph over the last 12 to 18 months!! Good to leave a little in for the next investor, but not remaining multi-baggers!

[croesus]

I read it,......... hav'nt been to Waihi for years.... should go for a drive North.


Will phone Sue tomorrow for a definative answer on the HGDCA strike price..

Good point, Jess, re selling early..... there is no rule to cover all situations... but I favour letting my profits run for a while.... suspect there will be buying in HGD on the back of this article....

Regards Croesus...

ps. best wishes to all the regulars on this thread.

[Crypto Crude]

well its going to be an interesting week for heritage...
HGD's large share price appreciation and its sustainability at these prices will be determined by asx bidders, where the maximum current bid is only 3.2c in Auz ... and offers at 4.4c
whereas on the nzx bids are at 5c and offers 5.6c
this here imposes a considerable difference...
if they dont raise their bids on the asx, then there could be a sell off on the nzx...
if they do raise their bids then it confirms HGD's run this year...

Im picking that the asx will raise their bids.... if your looking for a bargain then go the asx route... at 4.4 cents it is still a nice discount over the 5.6c on the nzx.... the only real difference should be the exchange rate so 4.4c/.87= 5.06 ..
5.6-5.06=.54
.54/5.06=10.6% discount if you buy at current offer on the asx...
and you gain australian dollars, the NZ dollar is real strong, unsustainably strong, so exchange rate risk is working in your favour over the medium term...(next 2-5 years)

I have seen this same situation occur, where australians devalue NZ assets... the same thing happens with Pan pacific petroleum all the time, where NZ leads and the auzzies recorrect...
in doing this the auzzies hold back PPP's value because NZ holders look over and see the auzzies aint paying higher prices, so neither will we!
during the week PPP traded 16c asx, and 22c nzx.... nzx fell to 20c... on close friday
but yeah, im picking on the asx they will raise their bids next week
[8D]
.^sc

[BAPP]

On the face of it, Waihi has glittering prospects:
Just to follow on from Jess9’s comment
(Amongst HGD's permits, HGD has a mining permit for a large piece of dirt adjoining the Martha pit, and I think the new Favona mine. Be interesting to see where Favona's "wider deeper" vein now ends, probably not in HGD's permit, but you never know ; )

The following is extracts from www.heritagegold.co.nz

<The Waihi North, Waitete and Golden Valley tenements together form a broad band almost entirely surrounding the Waihi deposits and all of the structures known or suspected that extend beyond Newmont’s holding.

Heritage and Newmont Mining Corporation are the two dominant holders of prospective areas in the Waihi gold district. Heritage holds a large area adjacent to the northern boundary of the Martha mine, with the Waihi North and Waitete exploration permits.

The hydrothermal alteration zone associated with the Martha gold deposit extends into the Waihi North permit which also contains other large areas of hydrothermal alteration and mineralisation not previously tested.

At Golden Valley, east of Newmont’s Favona discovery, Heritage has located beneath barren cover rocks a number of magnetic features interpreted as zones of hydrothermal alteration. Geochemical sampling, ground magnetic surveying and geological mapping have indicated several alteration zones that are now ready for follow up exploration. Heritage has the largest area of applications and granted permits in the Waihi district within 18km of Newmont’s plant and mine.>

So my understanding is that HGD permits surround both Martha and Favona. This makes the comment about Favona’s ‘wider deeper vein all the more interesting.

I’m still looking for some confirmation of resource upgrade, but have the feeling this share will take off on any' snippet' of good news.

It’s a good point Jess9 makes about not selling in ‘one hit’ and SMM is a perfect example. (I’m expecting more from this share also).

It’s good to have a few more posts regarding this topic.
Looking forward to the next few weeks

Cheers
BP:)

[Crypto Crude]

the suspense... they still havn't woken up on the ASX...
could easily sell now on the NZX... get in on the ASX... and make a sharp profit... put a bid in above the highest current bid on asx, put a bid in at say 3.5 cents...
It's just an idea, thats all !
[8D]
.^sc

[lager]

Let's hope the director wake up and follow Summit Resources step and make some return for long term investor.

[Jess9]

Buy depth on ASX is looking stronger than I have seen, for at least the last eight months, still early however... but maybe a good head of steam is starting to build, finally ; )

[BAPP]

Opposite way around on NZX though with a few sellers banking up!

I think we might see a few up & downs in the share price until we get that gold resource upgrade we have been patiently waiting for. I would also like to find out what is happening with MEM in the near future.

I thought it was interesting how the recent newspaper article ' On the face of it, Waihi has glittering prospects' was written with a 'Lord of the Rings' theme and ended with Middle Earth.(could this be a hint about the future- MEM??)

Cheers
BP:)

[craic]

Is this the new NOG? (800 pages of wishful thiking)

[BAPP]

Thinking it might take a bit of time to catch up to NOG!(only 775 + pages to go)
At least we now have a bit of activity on both sides of the Tasman.

A positive(for me anyway) was a conversation I had with a long time Waihi resident today and his comments encouraged my faith in HGD confirming greater resource levels. So I'm happy to wait a bit longer. (He thinks there's a lot more gold in the area, especially around Favona & Golden Valley, so I don't mind a bit of wishful thinking!)

I also see that Newmont have just published a small booklet detailing their activities in Waihi and their commitment to the Waihi community. It's worth a quick read, just to get an idea of the mining history of the area.

Cheers
BP:)

[Steve]

It appears that the buyers on the NZX have dried up and the shareprice is returning to where it was. If it drops back to 3.5c, I would have a look at buying in

[Crypto Crude]

steve, well I was elluding to a selloff for NZX holders on the 7th...
they just didnt budge on the ASX... (apart from one single trader that got savaged when he bought in at 4.2cents aus)... currently trading at 4.5cents on nzx... and 3.5 cents asx... with the no arbitrage principle then you should be able to get head shares at 3.9cents NZ over the next while...
we here have an undervalued stock... Personally im looking at entry late this year..
[8D]
.^sc

[Jess9]

quote:Originally posted by croesus


Hi Jess
The 6.3 figure for HGDCA was announced on 24 Nov, at that date there were 12642232 shares still to be alloted (shortfall) not sure if the 6.3 takes into account the fact the shares will be alloted, hence it is the correct figure, or now that the shares have been alloted the strike price will drop further ?
Either way HGDCA will have a value if the H/S move up another .5c
cheers Croesus


Hi Croesus.

I called Peter, he thought this reduction was low to, however Sue Sangster (Coy Secretary) has confirmed it is correct. I assume the warrant agreement only allows for a reduction in price in certain situations, therefore not all the issues counted.

The new strike price therefore appears to remain at 6.3c.

Peter also seemed excited about HGD's "big" 2007 drilling program - so on good results, the above strike price may well and truly be breached, prior to June 2007.

It would be very nice if HGD did a CDU in 2007!!

I see AUS goldies closed up 3% on Friday, I assume this is because support is consolidating in the Gold price at, and above $600 USD (I refer to the fund sell off last week that could not breach the 600 support level). Gold shares with their leverage to this sustainable and likely increasing price are looking decidedly cheap, especially if you assume gold will go USD$ 700+.

From an operating mines perspective (if production is unhedged) every additional sales dollar from rising prices for gold sold adds directly to the bottom line - as no additional cost was required to produce). Times the oz's produced by an increasing USD gold price, and you get some very big profit upgrades going forward!

Explorer's/juniors like HGD win on resource increases, so while they don't produce (yet), successful drilling i.e. adding resource can massively improve there fortunes!!

I assume all the time – i.e. the work from AUCK Uni project/interpretation/mapping HGD has done to date, will mean a very well targeted and successful drilling programme!!

Sat, just looked over at Kitco.com - Gold at USD$ 625.40!!! up $12/oztoday, may see a jump in goldies Monday if this is sustained.

Good investing all.

[BAPP]

Wow-Jess9 !

CDU, what an amazing transition in value/price.
Have you followed this share over the last 18-24 months? I thought SMM was a great success story (which it is), but it ain't got nothing on CDU.

Well lets just hope all the patient HGD shareholders get a similar result for their endurance. While I don't expect HGD's share price to hit the 'dizzy' heights that both SMM & CDU have enjoyed I still anticipate big returns. ( This share continues to be undervalued due to the lack of historical progress, but times are a changing!)

Good drilling results in the next quarter and some good news on the MEM IPO should send this share skyrocketing.

There are plenty of buyers on both the NZX & ASX, so some interest is already starting to esculate. Confirmation of a significant JORC gold resource upgrade/ MEM IP0 & JV is just what is needed to make it happen.

If the HGD share price made it quarter of the way to that of CDU or even SMM, I would be retiring! ( Not really I love my job too much!!!)

Cheers
BP:)

[Jess9]

Hi BAP. Agree, CDU especially was an excepion, it does of course illustrate that "the resource investor's dream" can come true - that being a surprise and exceptionaly rich drilling strike!!

HGD who knows...the area could well contain far more resource than conservatively estimated - however that is pure speculation. While a CDU would also see me "retire", a nice four bagger in the next 6 m will do nicely ; )

[Jess9]

Nice to see buyer interest on both NZX and more importantly the ASX has been maintained and is improving over the last few weeks - good.

ASX buyers still scared to sit too high, I think when this assessment flicks to fear of missing out we will see a rapid re-rate up. Sellers of co****, will pull back wanting more, for fear of selling too cheaply...and off we go!!!

HGD was 5-6 c 12 m ago, and was cheap then (considering their resource and resource upgrade potential). With gold maintaining its price and the coy in "second gear" now towards upgrades, I think a bounce up is likely even prior to drilling, as AUS investors have been alerted by the recent share placements to this coy. Also remember, the last upgrade of resource (from 100oz to 200oz saw the share price hit 12c - from memory).

Such market sentiment, to become a confirmed uptrend must as we both know (and I think believe will occur for HGD) be underscored by positive actual coy results. Roll on 2007!!

[BAPP]

Hi Jess,

Yes it is good too see buyers lining up on ASX, however as you note they are still wary of the price.

If market sentiment is going to improve for this company, Peter Atkinson will have to keep 'things' moving forward with regards to the MEM IPO and gold resource upgrade over the next quarter.

It is now over 8 months since he announced the MEM IPO and there is still no confirmation of the process or listing dates. He also noted that the gold resource upgrade would coincide with MEM details.

While I believe you are correct about HGD being undervalued and we will see a rapid re-rating of the share on any good news. Delays mean more sceptics and HGD has it's fair share of those already.

I will be looking for some good 'vibes' filtering thru at the end of the month when the quarterly report is due. IMHO there is a lot more gold to be found in the Waihi area so lets hope HGD are the one's to find it.

Cheers
BP:)

[BAPP]

Lots of buyers below 4 cents on both sides of the Tasman. About 6 million shares wanted and 2 million or so for sale.

With the gold price heading upwards, all the indicators are heading in the right direction!
http://www.smh.com.au/news/business/top-metals-analysts-bullish-on-bullion/2007/01/17/1168709827480.html

Now we need a positive gold resource upgrade to be announced also.

Cheers
BP :)

[Steve]

Closed at 3.6c as someone wanted out...

[wk6332]

I sold 200000 at 3.6,( didnt want out). needed the cash for grkr on the ASX. I still have a good size share holding and a large option holding, none of which will be be sold at anything like this low price.
All other spare cash was sent to NZOG.

[BAPP]

Hi wk6332,

Are you the 1.3 million buyer of grkr today?
Is there good news on this horizon?

Thanks anyway, I picked up some of your HGD sell off at what I consider a cheap price!

Cheers
BP:)

[Fodder]

Announcement


HGD
19/01/2007
MINE

REL: 1702 HRS Heritage Gold NZ Limited

MINE: HGD: Drilling Commences at Karangahake Project

Heritage Gold is pleased to announce that it has started diamond core
drilling at its Karangahake Project in the Waihi District.

"Heritage is delighted to be given the green light to test areas at Rahu
Ridge with positive indications of gold mineralisation," Managing Director
Peter Atkinson says.

The 6 to 8 hole (1500 metres in total) programme is designed to test beneath
strong gold mineralisation discovered by Heritage at Rahu Ridge in a previous
reverse circulation drilling programme.

"Exploration in this area has highlighted three parallel gold mineralised
structures over a strike length of approximately 2 kilometres that we plan to
test," Mr Atkinson says.

"We believe the Rahu Ridge zone is part of the same epithermal system
responsible for the gold deposits at Karangahake, specifically in the
Talisman mine."

"We are encouraged by results so far and will update shareholders on the
drilling as results become available," Mr Atkinson says.

Background

The Rahu mineralisation is interpreted as the upper levels of the same
epithermal system that formed the gold deposits at Karangahake. By analogy
with the Talisman, the potential for gold mineralisation under Rahu Ridge
extends from near surface down to about 900 metres.

Heritage Gold's earlier reverse circulation drilling intersected gold and
silver mineralisation at several locations along a 1.3 kilometre length of
the Rahu Ridge zone, north of the Talisman mine.

All holes encountered gold and silver values at depths ranging from 14 to 46
metres, and holes were angled at 60 degrees to the horizontal.

Best results reported were from a depth of 10 to 16 metres in hole 2. This 6
metre interval assayed 2.41 grams of gold per tonne (g/t gold) and 63.6g/t
silver (including 1 metre at 7.80g/t gold and 198.0g/t silver).

At the Talisman mine, subsequent underground drilling and channel sampling by
Heritage led to a resource estimate of 205,000 ounces (oz) of gold and
800,000oz of silver.

The Karangahake centre has produced 1 million oz of gold and 3 million oz of
silver, mainly from the Talisman mine.

[clar]

Isn't it great to (finally) see something emerge that resembles an announcement of progress by a mining company?

[Jess9]

Awesome...HGD starts to walk the talk, keep the good work flowing team HGD!!

[steve fleming]

quote:Originally posted by Jess9

Awesome...HGD starts to walk the talk, keep the good work flowing team HGD!!


Agree its very good news, however i don't see how a 6 to 8 hole drill will be anywhere near sufficient for a resource upgrade???...still its a start!

[Paddie]

quote:Originally posted by Paddie

"All these points are what interested me in HGD about a year ago, and really nothing has changed! Other than what seems to be a set back with the share price being revalued down from 6 cents to about 3.5 cents!"

What has changed is share holders faith and trust in the ability of the directors of the company.

Paddie[^]



Even with a 19% increase today, the share price is still miles away from 6 cents in September.

I will never forget the post, I was on holiday at the Gold Coast "last chance to buy in below 6c".

You faithful lot have really burnt some dollars, and lost some good opportunities having your capital tied up, much like I have done with NZO.

Good luck, and I hope HGD goes well.


Paddie