Heritage Gold...HGD

[BAPP]

Cobalt price now over US$34 per pound!
http://cobalt.bhpbilliton.com/

Cheers
BP:)

[BAPP]

Sorry I didn't take notes today, however this is my general overview of today's meeting.

I believe both Trent and Peter answered all questions adequately and they openly invited questions from the 'few' shareholders who attended.

While some concern was expressed about the recent 'warrant' debacle I believe the shareholders that attended would be happy with the renewed 'vigour' and 'enthusiasm' shown by Trent.

After the 'formalities' of the resolution being passed, Trent provided a confident presentation with regards to the outlook for the next 12 months.

He left no doubt that the focus would be on establishing upgraded gold resource levels at all Waihi tenement areas, including the Talisman mine in 2008.

It seems that the BHCL IPO will now 'roll' into the first quarter of 2008 however the 'vibes' expressed by Peter seemed positive for all HGD shareholders.

It also seems that Trent is not 'ruling out' Heritage moving to become a gold 'producer' in the next few years.

He also indicated that he felt Heritage was like a 'sleeping giant' and that any similar explorers in Australia would probably be valued at four times higher just on the present resource levels at Waihi.

Of course his job is to get out there and prove it and it seems like he is the 'right' man for the job.

Anyway I left the meeting feeling confident, I hope the other shareholders who attended felt the same way!

Cheers
BP:)

PS: Has anyone read the article about Heritage that was published in the Independent Financial Review last week.

[Oiler]

Sorry I didn't take notes today, however this is my general overview of today's meeting.

Anyway I left the meeting feeling confident, I hope the other shareholders who attended felt the same way!

Cheers
BP:)

PS: Has anyone read the article about Heritage that was published in the Independent Financial Review last week.

Liikewise, I came away with a very good feeling about the company going forward. Trent is the man to do the job and I dont think there would be any doubt about that after his presentation yesterday.

His comments about the response from the brokers in Australia that he had visited was very positive and I think will set the tone for the company next year when BHCL list and this present capital raising is completed.

As was said at the AGM "watch this space"

I think the "watch" is now in the execution phase. :D

[whatsup]

What is the call sign for the warrants in Aussie

[Jess9]

Some decent sized buys for rights in AUS. HTM price is quite gappy there also (4.5 vz 5.9). Bit of weakness in HTMO, but on the whole not bad considering the cap raising in process and Dow's fluxuations etc.

Good to hear those comments BAP and Oiler. I think next year should be a very good one for HGD as impact from past change starts to take effect and show.

BAP a 4 fold value increase (on current reserves) would be great! The size of the current discount does show the level of bridge building that Trent needs to complete to fix past (HGD) indiscretions. Does sound like he has the right credentials however.

If Trent and the team can clearly communicate how and when HGD will produce from Waihi, then lock in a step or two on time towards this, a re-rate will occur. So I guess the new issue of rights (2 year expiry) might be worth alot of gold by then : )

Hopefully the 2008 oppies will be in the money also in time. Trent and the Board need to factor this into next years planned outputs/outcomes. The money that could be generated from these being taken up would be great to fund further coy works/developement - a great stepping stone for progress, ready to be used. Anyway enough lunchtime rambling.

J9

[Jess9]

HTMRA for ASX rights

Anyone know rights for NZX?

[KS]

HTMRA for ASX rights

Anyone know rights for NZX?

HGDRC listing on NZX 23/11/2007.

[Jess9]

Thanks KS.

Fantastic news that the private placement was fully taken up. 36m overhang snatched-up! Bodes well, this level of interest might also indicate a swing from sellers to more buyers going forward for HTM/HGD. Maybe our awaited re-rate is getting closer?

No sellers of HTMRA also yet. What's the fair value of these? Anyone? If each 2009 option was worth 3c AUS then surely each HTMRA is worth at least 1/2 that, if not more, considering 4.5c is a discounted entry into HTM, and likely even more so with all the excitment to come in 2008. If that 1m (HTMRA) buyer gets in at .3, then thats a bargain and good on them. Interesting to watch and see.

With the placement complete, and if the rights get fully/oversubscibed then Trent will have his war chest and let the action commence. Lets see 20c AUS / share within 12 months!

[whatsup]

Jess the placement was fully organised before the announcemewnt was made so as to give the impression that it would be a success and in big demand, but it is good that there is plenty of good interest and cash which will let trent succeed in his objectives , roll on June/July next year.

[BAPP]

Cobalt price now US$35.50 per pound!
http://cobalt.bhpbilliton.com/

Cheers
BP:)

[trackers]

Geez, look at that buy depth...Ouch

[mibo]

Someone has a sell order in at 5.4c for HGDRC. Shouldn't the market price be about 0.2 - 0.5c ??

[Jess9]

Sounds a little pricy, unless they know something that will put a rocket under the price on Monday ; )

No trades yet on the ASX for rights, reasonable volume demanded too but no sellers at any price, yet.

[Jess9]

BAP, be nice if $35 is the start of a new up trend for cobolt. Its fasinating how such price movements can take a marginal resource (back at $10 etc) and create significant wealth, if not an early retirement option, depending on holding levels. The recent uranium price trend was another great example of this, but I guess all metals are moving at the moment.

[BAPP]

BAP, be nice if $35 is the start of a new up trend for cobolt. Its fasinating how such price movements can take a marginal resource (back at $10 etc) and create significant wealth, if not an early retirement option, depending on holding levels. The recent uranium price trend was another great example of this, but I guess all metals are moving at the moment.

Hi Jess9,

Cobalt is the quiet performer!

Cheers
BP:)

[BAPP]

Cobalt price still climbing and now quoted at US$36/pound

http://cobalt.bhpbilliton.com/

http://www.formcap.com/s/CobaltNews.asp

Hopefully good signs for a BHCL listing in the New Year.
(little else too look forward too at the moment!)

Cheers
BP:)

[Jess9]

Did today's report include a paragraph saying that the Uranium licenses have now been granted for Dunmarra??

If so, did I miss this announcement in the recent past, or was it not worthy of a seperate announcement i.e. when these were actually granted to HGD/HTM. I would have thought this would be price sensitive information requiring immediate disclosure, and a bit of a song and dance for the coy etc!!

Who can correct me?

[Jess9]

Someone has a sell order in at 5.4c for HGDRC. Shouldn't the market price be about 0.2 - 0.5c ??

I still think about NZ 2.5c per right is fair, based on 0.5c discount to head price (albeit this bounces a bit) and 50% of the likely value of a attached 2009 option, say at 4c/2=2c

Therefore each right could be valued at 2.5c, of course the market has the final say ; )

[Jess9]

More on the rights; market depth is today very gappy, sellers on NZX still above 5c (little volume available) and no buyers; and Millions wanted on ASX at below 0.4c (AUS) but no sellers!

[whatsup]

Cobalt up again $37-38 per pound looks good as there is a supposed world shortage now great for HGD and the rights up take especially as it should fully fund the company for its up coming exploration programme.

[Jess9]

Can anyone remind me...is the resource upgrade/confirmation coming before or after the IPO? I would have thought that the drilling is/has been completed to identify the likely quantity of cobolt? Surely this is need to price up the coy. Be nice to see some results from this before xmas.

[tobo]

from 30 Nov Half Year report:
"The area is under-explored and BHCL is planning test drilling of the cobalt
resource and the surface anomalies early in 2008.

BHCL is finalising a prospectus for an IPO leading to an application for
stock exchange listing in the first quarter of 2008, based largely on the
substantial cobalt resource within the two mining leases."

suggests drill results may not be available before IPO.
IMO, but DYOR

ToBo

[tobo]

Jess
lack of heads trading and also lack of sensible prices in Rights suggests holders hanging onto their rights, and probably think they can get more by subscribing for shortfall.

0.9 doesn't seem like such a bad price for HTMRA, what with the attaching oppies, but HGDRC really got off to a bad start with what appears to be sellers either not understanding how rights work, or betting they can trick a buying who doesn't understand...

As you suggest, HGDR could be justifiable up to 2.5 in theory (not that market cares about that sometimes!)

Parcel size may be another impediment, for those paying $30 brokerage

ToBo

[BAPP]

from 30 Nov Half Year report:
"The area is under-explored and BHCL is planning test drilling of the cobalt resource and the surface anomalies early in 2008.

BHCL is finalising a prospectus for an IPO leading to an application for
stock exchange listing in the first quarter of 2008, based largely on the substantial cobalt resource within the two mining leases."

suggests drill results may not be available before IPO.
IMO, but DYOR

ToBo

Hi Tobo,

The 'impression' I got from the last shareholders meeting was that the drilling program to ascertain JORC compliant estimates for the cobalt would progress after the IPO as you have suggested.

Also, my understanding was that the Thackaringa project area which includes Pyrite Hill and Big Hill have been drilled over the past 25 years by a number of companies including Rio Tinto, however the methodology behind the drilling does not meet today's JORC standards which is a general requirement of each stock exchange when announcing confirmation of resource levels.

While BHCL is initially 'targeting' 30 million pounds of cobalt in near surface deposits further drilling is required to establish a JORC compliant resource level which will in turn provides a level of ‘certainty’ that an economical mining operation can be established.

This also indicates to potential investors and shareholders that this is no 'pie in the sky' venture when it comes to any further capital raising requirements for the full mining and processing operation.

As the entire BHCL tenements cover a relatively unexplored area of Thackaringa, the management believe there is also a possibility of finding other valuable deposits such as gold, silver, zinc and lead with further exploration.

Cheers
BP:)

[whatsup]

Option sweetener issued upon the rights takeup for 2 years out at .08 per share for 1 option for each 2 shares/rights paid for.very cunning hmmmmmm!

[Jess9]

With all the action planned and funded for next year IMO HGD/HTM will be looking very cheap looking back to now (at this cap raising time), from 2nd quarter next year.

With metal prices soaring, action and announcements packed into 2008, investor attention should get focused on what HGD is achieving and therefore where it is now heading - this should be very positive... and rewarding : )

[Ekrub]

Er, Houston, we have a problem.

The market price is currently below the rights issue price.

I guess all holders want HGD's cash raising to be successful, but.......

........where to from here?

[tobo]

Ekrub, that's not the full story.
buy on market - you get a head share. (and pay brokerage)
buy through rights - you get a head share PLUS an option for every two shares.

The rights issue price should (in a liquid market) indicate the additional value over the issue price eg. rights 5.4 + HGDRC (last) 0.2 = 5.6c. Compare with last head 5.3, means market is valuing half an option at 0.3 (ie 0.6 per option).
(Which seems like a pretty good price for an 8c option 2 years out, taking into account the program for next year)

also, for the 15% of shares that are in holdings below 100,000, their rights parcel is under $800 - those people are saving a brokerage fee of 3/4/5%.

ToBo

[etrader]

Heritages new website is live http://www.heritagegold.co.nz/index.php

throughts/views ?


I think it's a great easy to navigate site, with the info we need and for new viewers to the site you can easily see what hgd is about

[mibo]

I think it's a great easy to navigate site, with the info we need and for new viewers to the site you can easily see what hgd is about

I agree. This is a vast improvement on the previous site. It is well thought out and looks slick and professional. Progress is being made on all fronts :)

[BAPP]

Heritages new website is live http://www.heritagegold.co.nz/index.php

throughts/views ?


I think it's a great easy to navigate site, with the info we need and for new viewers to the site you can easily see what hgd is about

Hi etrader,

Yes I have to agree.

The new 'site' is a huge improvement.:)

It seems Trent is making steady progress on the communication front.
I found the corporate video and interview with John Stewart especially interesting. I think the site is information for both new investors and those of us who have been holders for a while.

Good to see an indication of progress at Talisman and the Mystery vein looks like it may have interesting potential.:)

Well done to Trent and his team!

Now lets see them working on the share price also!;)

Cobalt price is pushing up over US$40, which should be a further good sign for the BHCL IPO.

Cheers
BP:)

[BAPP]

Some positive Analyst reports also:

http://www.heritagegold.co.nz/irReports.php

...and the information regarding the Talisman mine makes for good reading if you're a shareholder, especially the last few paragraphs.

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

Cheers
BP:)

[ScrappyO]

Had a phone call today from Heritage Gold. My wife took the call while i was out. Must be because i haven't sent them any money yet for the rights issue.

Good to see they have updated the website.

[doon]

Had a phone call today from Heritage Gold. My wife took the call while i was out. Must be because i haven't sent them any money yet for the rights issue.

Good to see they have updated the website.

I had a call too, from Sydney, from a co. 'on behalf of Heritage'. I queried my rights for heads HTM.ASX, whether my new shares would be issued as HTM.ASX or HGD.NZX, if I send forms to the NZ address with NZ$. (But think will be better paying in AU$ just now?)He checked with someone else & eventually told me they would check with Heritage & get back to me. Expect a call tomorrow.

[tobo]

Heard back?
all buyers of HTMRA now been satisfied (most recent at 0.1 bargain price at that!)
Can pick up some at 0.1, but not so easy for HDGRC... offer sitting at 0.5, bid at 0.2

[Jess9]

The rights form says you can pay in either NZD or AUS dollars. As you say, best to dd or send in an AUS dollar cheque. The NZD is flying high today. Hopefully it keeps this altitude for the next week : )

[doon]

Heard back?
all buyers of HTMRA now been satisfied (most recent at 0.1 bargain price at that!)
Can pick up some at 0.1, but not so easy for HDGRC... offer sitting at 0.5, bid at 0.2

Didn't hear back from Sydney :(
So tele Heritage in Auckland today, Sue very good. Appears if heads are ASX, new shares will be issued same exchange, doesn't matter how you pay or what currency. Better get my a into g, think I will take them up even tho heads are down just now, and pay in AU$. Anyone else taking up, or any comments? Bit hard to work out if value taking them?

[COLIN]

I can't see much good reason to take up my rights, given the market price of the current heads. The fact that the company is phoning shareholders and pleading with them to take up the rights does not bode well for the success of the issue. I know that there is supposed to be the allurement of the "free" options, but I doubt if the combined price of two of the heads plus one option will exceed 10.8 cents (NZ) after the issue shakes down. Sorry BAP, I know you have staked so much of your purse on this bet, and have absolute faith in your man Trent, but the market seems to be telling us another story.

[Jess9]

You guys are focusing too much on the effects of the cap raising. This placement is quite significant for a small cap stock like HGD and the impact to the share price is as to be expected - at least until shortly after the issue closes, and demand once again can only be channeled through the market and supply is again fixed.

Rights are dirt cheap and a bargain at 01c AUS. Of course you could apply for shortfall, depending on how many you want, but while supply through this is likely, it is not guaranteed.

[Jess9]

By my calulation heads would need to be below 3.5 AUS for it not to be worthwhile taking up rights (assuming each new oppie is worth 3c min when the dust settles next year etc) and then you would need to purchase all you need to eat at that or a lower price.

With all the work planned in 2008, oppies could well be in the money sooner rather than later.

[BAPP]

I can't see much good reason to take up my rights, given the market price of the current heads. The fact that the company is phoning shareholders and pleading with them to take up the rights does not bode well for the success of the issue. I know that there is supposed to be the allurement of the "free" options, but I doubt if the combined price of two of the heads plus one option will exceed 10.8 cents (NZ) after the issue shakes down. Sorry BAP, I know you have staked so much of your purse on this bet, and have absolute faith in your man Trent, but the market seems to be telling us another story.

Hi Colin,

Yes, the market is 'telling another story' at the moment. However the market is generally conservative about looking forward and most HGD sceptics focus on past history, whereas I'm looking to the future. (2008/9)

IMO the rights are well worth purchasing due to the attached option with this in mind.

If you take a look at the analyst's reports on the 'new' website there are some very favourable comments from Brokers.

Trent has added some 'new life' into the company and his enthusiasm to make progress with drilling programmes in 2008 has 'rubbed off' onto a lot of interested investors, especially in Australia. Just look at the success of the private placement and the new list of top 20 shareholders.

We all know this is a 'risky' investment, but big risk can.. equal big rewards ...and I'm very confident my investment will provide the returns I want over the next year or two.

I recommend you read the new website throughly and view the corporate video and interview.

Believe me, once you have been through the Talisman mine and seen HGD permit areas 'first hand' you come to realise the full potential.

As always everyone should do there own research.

Cheers
BP:)

[Jess9]

By my calulation heads would need to be below 3.5 AUS for it not to be worthwhile taking up rights (assuming each new oppie is worth 3c min when the dust settles next year etc) and then you would need to purchase all you need to eat at that or a lower price.

With all the work planned in 2008, oppies could well be in the money sooner rather than later.

Sorry... meant 3c AUS.

[Jess9]

Might get a lift before next week, be a very strong sign. ASX buying pushing up price on heads, and all rights snapped up at .1c ASX HTM Buyers now at rights price (4.5c). Could be a very merry xmas?

Those 09 oppies could quickly be worth more than 3c AUS if we get in the money fast. The strike was 8c? This entry price is set for 2 years yet metal prices and resource levels look set to increase...

[Jess9]

Now this is what I'm talking about:

OutLOOK

Heritage gold has rejuvenated its Board, its management and its
direction and is committed to delivering growth in the value of its
assets over the next year.

The Company has diversified its minerals portfolio to include gold,
cobalt, base metals and uranium. Over time it will add further mineral
assets that have high growth potential and added value.
The objectives in the next 12 months are to:

• aggressively explore those key gold properties that
have significant uplift potential;

• crystallize the value in the thackaringa cobalt
property; and

• undertake reconnaissance exploration of the
uranium licences in the Northern territory with
a view to advancing their prospectivity.

[Jess9]

Fair Values
As stated in Note 3, the fair value of unlisted shares can not be reliably measured. Except for unlisted shares, there is no material difference between the carrying amounts and estimated fair values of the company’s financial assets and liabilities.

Not giving anything away here, I assume BHCL shares are valued at less than 10K at present. The objective to bring out this value in 12 months should prove interesting.

[Oiler]

;)
I can't see much good reason to take up my rights, given the market price of the current heads. The fact that the company is phoning shareholders and pleading with them to take up the rights does not bode well for the success of the issue. I know that there is supposed to be the allurement of the "free" options, but I doubt if the combined price of two of the heads plus one option will exceed 10.8 cents (NZ) after the issue shakes down. Sorry BAP, I know you have staked so much of your purse on this bet, and have absolute faith in your man Trent, but the market seems to be telling us another story.

Colin I will be taking up my quite a few thousand rights at .054 regardless of the current share price. I think management could have raised the funds needed for there development work, from the OZ brokers very easily but chose to give current shareholders the opportunity to participate at what at the time was a fair price. I support there decision and support Trent 100% in his future plans for the company.

This company is getting ready to show its true worth, so watch this space over the next 6 to 12 months.

Anyone who has met Trent would have to agree with BAP that Trent has a lot of energy as well as a vested interest to make this company a winner for the shareholders and himself so there is no doubt in my mind that he will make it happen.

The Cobalt IPO is a bonus, I see the gold in them thar hills of Waihi being the "gold for the shareholders"

The past is the past and we can do nothing about that now. Thank Peter for recognising the fact that Heritage needed someone to push the company into the production stage. The future looks very bright and the market will see that before too long :)

[Jess9]

Well said Oiler!!

[whatsup]

Well said Oiler we met at the AGM/EGM and I too like what youve said , "the future is this companies potentional"

[BAPP]

;)

The Cobalt IPO is a bonus, I see the gold in them thar hills of Waihi being the "gold for the shareholders"


Hi Oiler,

The Mystery vein within the Talisman mine looks very exciting, I think that's where my retirement will be starting from!;)

And you're definitely right that the BHCL IPO is a bonus for HGD shareholders!

Wit the current cobalt price at US$40 per pound... then deduct US$10/pound for the average cost of production & processing... and we get a tidy gross margin, especially if you have 30 million pounds plus sitting on your doorstep!;)

Yep, that's definitely a bonus IMO! :D

However because cobalt is such a quiet performer, the investment community hasn't been too interested to date, but that will change over the next year.

Cheers
BP:)

[tobo]

Cobalt 30m lbs
x 33% HGD interest
x say NZD35/lb gross margin
= NZD350m... that's a dollar a share.

If share price clambers up even just 10-20c for the cobalt and then we get the serious growth for the gold story, that'll justify some serious grinning.

Put it this way, I sent my cheque in last night, including applying for some shortfall.

[mibo]

Put it this way, I sent my cheque in last night, including applying for some shortfall.

Yep, I sent my cheque off including a shortfall application. Somehow I don't think there will be much of a shortfall. Hopefully it will be first in first served.

[COLIN]

Okay, you chaps have talked me into it. Will sign the cheque. Prospects do seem slightly better than buying a few Big Wednesday tickets!

[etrader]

HGD seems to be drying up on both buy and sell, with large split of sellers up to .15c from .06c. Guess investors are waiting for the result of the rights issue which will give them $4 mill or so. We know Insto's have over sub'd for their part.

Will be interesting to see the value upside in 1st qua 08 from the Cobalt float. Those that have looked into it a little more will be aware that close by their land holding other base metals are evident which could flow onto the Cobalt land to divest their direct Cobalt mining.

[BAPP]

Cobalt price now being quoted at US$45 per pound by BHP with last sale at US$43.

Looking back BHCL was economically viable with the cobalt price at US$16 per pound.

IMO HGD is onto a winner with this project, we just need the details of the IPO to be released.

The management has indicated their will be some 'form' of preferential treatment for HGD shareholders, so I see no reason why the share price will not improve quickly 'off the back' of the BHCL listing.

Cheers
BP:)

[BAPP]

Following on from my last post here is an extract from NBR Dec 06.

Cobalt price has trebled since this news release and $$ figures looked pretty good back then... they look very impressive at current cobalt prices.

Cheers
BP:)

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.

[steve fleming]

Cobalt price now being quoted at US$45 per pound by BHP with last sale at US$43.

Looking back BHCL was economically viable with the cobalt price at US$16 per pound.

IMO HGD is onto a winner with this project, we just need the details of the IPO to be released.

The management has indicated their will be some 'form' of preferential treatment for HGD shareholders, so I see no reason why the share price will not improve quickly 'off the back' of the BHCL listing.

Cheers
BP:)

BAP, post IPO what % sh'lding in BHCL do you expect Heritage's 33% to dilute to??

10%? 20%?

I guess it depends on the pricing but 20% would probably be the maximum based on the assumption they offer 40% of BHCL in the IPO.

[steve fleming]

BAP, post IPO what % sh'lding in BHCL do you expect Heritage's 33% to dilute to??

10%? 20%?

I guess it depends on the pricing but 20% would probably be the maximum based on the assumption they offer 40% of BHCL in the IPO.

Well lets say post IPO HGD end up with 10%-20% of BHCL.

Without a doubt this will be further diluted as BHCL raise funds for scoping studies/ a BFS and development and working capital.

So its probably safe to assume that when BHCL commences mining HGD will have somewhere between 2.5% and 10% of BHCL....which is hardly a company maker.

Lets look at the other HGD assets:

Some dud uranium ELs picked up just as the a*rse fell out of the Uranium market,

and the Waihi gold assets that are still years away from production, and will require numerous future capital raisings to fund drilling, sccoping, feasibility studies and eventually development capex....the best hope for HGD is a merger/JV with a partner that will fund these costs.

HGD will definitely go for a run when the insiders / market lets it, and is probably genuinely undervalued based on current prices. However at the end of the day, it is very much a high-risk junior explorer with major expendiure committments and years away from earning income, and any investment should be made in that light....there are better investment propositions out there IMO.

[BAPP]

Well lets say post IPO HGD end up with 10%-20% of BHCL.

Without a doubt this will be further diluted as BHCL raise funds for scoping studies/ a BFS and development and working capital.

So its probably safe to assume that when BHCL commences mining HGD will have somewhere between 2.5% and 10% of BHCL....which is hardly a company maker.

Lets look at the other HGD assets:

Some dud uranium ELs picked up just as the a*rse fell out of the Uranium market,

and the Waihi gold assets that are still years away from production, and will require numerous future capital raisings to fund drilling, sccoping, feasibility studies and eventually development capex....the best hope for HGD is a merger/JV with a partner that will fund these costs.

HGD will definitely go for a run when the insiders / market lets it, and is probably genuinely undervalued based on current prices. However at the end of the day, it is very much a high-risk junior explorer with major expendiure committments and years away from earning income, and any investment should be made in that light....there are better investment propositions out there IMO.

Hi Steve,

Yes, all valid points to consider! HGD is definitely a high risk investment, as are all 'grass root'/junior explorers.

However I would also suggest that if we all took your stance not to invest in these company’s that are high risk, or not producing, then most company’s would never 'get off the ground'.

I look back at Summit, 2-3 years ago to highlight my point.

There is no doubt that both HGD & BHCL would need to raise further capital to facilitate a mining operation, but IMO both could actually be in production within a 2 year period of resource levels being proven as economically viable.

The impression I have is that the main ‘driver’ or focus behind the current capital raising is to ‘quantify’ resource levels at Waihi to ensure Heritage has a range of options whether it be a stand alone production facility or a JV.

My quess is that it would cost $30-40 million for a mining plant, so I suggest we will need to see a significant rise in the share price before this can be funded through further share placements.

I’m sure management will be aware of this and will have worked on a strategy. Trent did convince investors to take up the recent private placement, so they must see an opportunity also!

One possibility maybe to use funds from the sale of BHCL to progress a mining operation at Waihi. With the Talisman mine already providing a JORC compliant resource of 205K oz gold they are almost halfway to economically justifying a 'plant'.

As I have suggested previously, take a thorough look at the new website, especially the details focussing around the Talisman mine.

Visiting this mine and seeing the HGD tenement areas 'first hand' did enhance my confidence as a shareholder.

However time will tell and the next two quarters will probably provide a clearer indication of where the company is heading.

Cheers
BP:)

[Jess9]

SF. Accept the risks on HGD. However, if 2008 does indeed accomplish what Trent indends for HGD, we should have a multibagger by year end 2008. Remember the market has already heavily discounted HGD to where it is now (4-5c) for your reasons. From this depressed price, 20c AUS in 12 months is very achievable - if Trent delivers results. He has the means and the (options as) incentive. Take your position now, if you think it all stacks up. This cap raising could be a last widow to "get in cheap". Alot has changed from the past few years and results from these changes will start to show in 2008, stay around for the party!

[wk6332]

Just placed an order today for 500,000 @ .2c but it looks that I will need to try my luck on the shortfall.

[Jess9]

I picked up some HTMRA's at next to nothing, just to ensure my full participation. At that price it was good "insurance" vs punting on shortfall - which may or may not be available. Good luck, either way.

The ASX hits over the last day or so could weigh on the side of some/more shortfall.

[Jess9]

Good finish to rights trading. No dumping at day end, depth building on NZX also for heads. Not bad considering ASX falls. All rights payment to be in by Thursday 5pm, with new shares issued Friday. Lets see what unfolds.

[BAPP]

Good finish to rights trading. No dumping at day end, depth building on NZX also for heads. Not bad considering ASX falls. All rights payment to be in by Thursday 5pm, with new shares issued Friday. Lets see what unfolds.

Hi Jess9,

I've been 'topping up' also, however I don't think we can read anything into what is happening with 'trades' at the moment.

IMO the investors involved in the private placement will have 'anticipated' some short & medium to long term benefits. For example BHCL in the short term... Waihi gold in the longer term.

It would be nice to get some details on the BHCL listing in the next few days ...as pre-Xmas gift.:)

Either way 2008 looks like an interesting year!

Cheers
BP:)

[Jess9]

Hi BAP. I wonder if BHCL IPO info may come out next week, maybe this is why rights shares/options are to be issued Friday. Seems fast. It may be so any IPO entitlement can be worked out?

[BAPP]

Hi BAP. I wonder if BHCL IPO info may come out next week, maybe this is why rights shares/options are to be issued Friday. Seems fast. It may be so any IPO entitlement can be worked out?

Hi Jess9

It 'seems' like they have been working on the prospectus for a long time. At last month's meeting, Peter indicated they had reviewed several draft versions, so maybe something will 'come out of the woodwork' in the next few days. (won't be holding my breathe though:rolleyes:)

It will be interesting to see how many shareholders have taken up their rights entitlements. I'm tempted to accumulate a few more 'heads' while the price is low.

IMO the BHCL IPO could quickly take the share price to 12-15 cents+ if HGD shareholders get preferential treatment as suggested.

I suspect this was the enticement for investors involved in the private placement last month (just a hunch that is!:))

'Sell off' the head shares on good news relating to BHCL and keep the options for a 'later date' when the drilling results at Waihi look more positive, especially around the Talisman.

What do you reckon?

Cheers
BP:)

[whatsup]

BAP. Q Irrespective as to how the rights issue ( from N Zers) is received, the placement in Aust that happened a month or so ago which was fully funded does that give HGD enough funding to complete this round of exploration, how much was raised in the placement and how much in total is to be raised now?

[tobo]

Placement (23 Nov) was 36m shares = A$1.62m
Rights prospectus adds up to a further 35.8m shares (virtually the same volume) = another A$1.6m.

Page 23 of the prospectus sets out plans to spend NZ$1.84m,
so yes, whatsup, you make a good point.

Tobo.

[whatsup]

Thanks Tobo , was it under written or I wonder that if there is ashortfall in the N Z raising is there a mechanism for some of that shortfall to be placed some how!!

[BAPP]

BAP. Q Irrespective as to how the rights issue ( from N Zers) is received, the placement in Aust that happened a month or so ago which was fully funded does that give HGD enough funding to complete this round of exploration, how much was raised in the placement and how much in total is to be raised now?

Hi whatsup,

Managements aim is to raise approx NZ$3.6 million through the private placement and the shareholder rights issue.

I understand that this will allow HGD to continue a drilling and exploration programme covering the Waihi, Northland and Dunmarra tenements, along with providing a level of working capital.

Shareholders can apply for any short fall in the acceptance 'take up', however I don't think there is an underwriter.

If there is a shortfall the allocation of funds raised will just be reduced on a pro rata basis according to the requirements of each project.

Part of the the raising is to ensure that the company continues to meet it's obligations to the 'crown' with regards to exploration and discovery. This is very important to secure IP and permit extensions.

I have no doubt further capital will be required in the future, the big question is whether significant resource levels can be established in 2008.

You may like to read this link: http://www.heritagegold.co.nz/newsPDFs/ASX291007.pdf

Cheers
BP:)

[tobo]

What's the most immediate way to confirm no. of shares issued to me?
Is there somewhere to log on to get instant balance (Link?, NZX?...surely Heritage don't want everyone phoning.)
- Tobo

[Jess9]

Ask your broker to check your CSN.

[Xerof]

do it yourself from nzx site - here -

http://www.nzx.com/education/public_shareholder_balance_enquiry

you need your CSN

[brettdale]

Is thier a page where you can check your shares balance on the Australian market?

[Oiler]

I hope everyone that wanted to take up the offer got there checks in the mail early.

I sent my check in last Friday from Auckland and noticed this morning that my check hadnt been cashed, so called Link in Ashburton to find that my application had just arrived in this mornings mail (Thurs)

Lets hope people dont miss out because of the Xmas mail

BTW I applied for an extra allocation on the expectation of a cracker 2008.

[ScrappyO]

I hope everyone that wanted to take up the offer got there checks in the mail early.

I sent my check in last Friday from Auckland and noticed this morning that my check hadnt been cashed, so called Link in Ashburton to find that my application had just arrived in this mornings mail (Thurs)

Lets hope people dont miss out because of the Xmas mail

BTW I applied for an extra allocation on the expectation of a cracker 2008.

I Had a phone call from Sue Sangster to say there was no check with my application, I even stapled the check to the application ended up sending the money via the internet and cancelling the check. This was on tuesday.

Hope it worked

[Jess9]

Hi Jess9


IMO the BHCL IPO could quickly take the share price to 12-15 cents+ if HGD shareholders get preferential treatment as suggested.

I suspect this was the enticement for investors involved in the private placement last month (just a hunch that is!:))

'Sell off' the head shares on good news relating to BHCL and keep the options for a 'later date' when the drilling results at Waihi look more positive, especially around the Talisman.

What do you reckon?

Cheers
BP:)

Hi BAP. Initially I thought that was too high (I've gotton used to the huge discount the market applies to HGD) but after working through some fast and loose numbers I think that is in definitley in the ball park.

Conservatively, I think that post an IPO equity scale back BHCL could be worth between 4-8c a share to HGD - as the BHCL's assets currently stand i.e. undeveloped. Therefore 15-8 or 12-4... values HGD's other assets at between 7-8c, still very cheap. So your estimate could well be realistic; if Trent can show the market he can and will make HGD produce in a reasonable timeframe to unwind the discount.

Play with numbers on the value of Waihi and depending on how much extra gold resource they find in 2008, and you can see HGD could really fly, and fly fast - if Trent deals to the discount factor.

[whatsup]

Looks like quotes are moving up ,wonder how those who didnt take up their entitlement feel now ,good on those who applied for some of the extra shares , great call.

[tobo]

Got my extra shortfall shares too!

- Tobo
Disc HGD HGDOA HGDOB ...

[Tanger]

Has anyone been notified if they have got their shares yet? I've looked on the NZX site under my balance, but it hasn't moved (hope I wasn't too late in getting them the cheque!!).

[chippy52]

Mine has gone through + shortfall http://www.sharetrader.co.nz/images/icons/icon10.gifhttp://www.sharetrader.co.nz/images/icons/icon10.gif

[wk6332]

Mine has gone through + shortfall.
there must have been a large shortfall, got all I asked for, over 700,000 on the short fall

[Jess9]

well done wk6332, very nice. over 350k of "free" oppies too!

[wk6332]

RIGHT: HGD: Pro Rata Rights Issue - Deferment of Dispatch 05:01pm
HGD
21/12/2007
RIGHT

REL: 1701 HRS Heritage Gold NZ Limited

RIGHT: HGD: Pro Rata Rights Issue - Deferment of Dispatch

Heritage Gold advised that the allotment of shares and dispatch of notices
regarding the pro-rata rights issue has been deferred until Monday 24
December 2007.

Sue Sangster


My guess is that they are trying to place the shortfall over the weekend

[mibo]

Yay, got mine plus the shortfall requested :D

[BAPP]

RIGHT: HGD: Pro Rata Rights Issue - Deferment of Dispatch 05:01pm
HGD
21/12/2007
RIGHT

REL: 1701 HRS Heritage Gold NZ Limited

RIGHT: HGD: Pro Rata Rights Issue - Deferment of Dispatch

Heritage Gold advised that the allotment of shares and dispatch of notices
regarding the pro-rata rights issue has been deferred until Monday 24
December 2007.

Sue Sangster


My guess is that they are trying to place the shortfall over the weekend

Hi wk6332,

I think the company has until March (from memory) to make a placement of shares to cover any shortfall, so I wouldn't 'read' too much into this announcement other than it is taking longer to process the applications than anticipated.

While I agree there is probably a number of shareholders who have decided not to acquire their entitlements, I'm sure the company has private investors wanting to 'take up' on any remaining 'shortfall' opportunity.

IMO the BHCL will take place fairly quickly in the first quarter of 2008, so private investors in 'Aussie' & maybe NZ, will likely 'jump' at the chance to 'pick up' a few more cheap shares, with options attached!

I anticipate progress may happen quite quickly in the New Year with the BHCL IPO and if we see some JORC compliant gold upgrades at Waihi by mid 2008, we could see the share price climb significantly throughout the year.

Cheers
BP:)

[wk6332]

Just under 50% taken up, not very good, this may keep the price down for a while.


HGD: Pro Rata Rights Issue 01:59pm
HGD
24/12/2007
RIGHT

REL: 1359 HRS Heritage Gold NZ Limited

RIGHT: HGD: Pro Rata Rights Issue

Heritage Gold has issued 17,814,303 shares and 8,907,073 options on 24
December 2007 at NZ$0.054 or AU$0.045 per share, following receipt of valid
applications and payment under the terms of its renounceable rights issue
offer.

NZ$961,972 (before expenses) was raised for:

- advancing exploration of the Company's key gold tenements held at
Waihi and Karangahake;
- preliminary exploration of the base metal permits in Northland, New
Zealand;
- preliminary exploration of the exploration licences in the Dunmarra
Basin of the Northern Territory, Australia; and
- providing working capital for the Company.

Rights issue applications were received from holders of existing shares for
12,476,029 shares and 6,237,983 free attaching options. Shortfall
applications were received for 5,338,274 shares and 2,669,090 free attaching
options. All valid applications for shares and options have been issued 24
December 2007.

Shortfall remaining under the offer is, therefore, 17,836,112 shares with
8,918,056 free attaching options.

Under the terms of the offer the Directors reserve the right, by no later
than 20 March 2008 to place these remaining shares and attaching options not
taken up by holders of existing shares.

[ScrappyO]

My Guess is that some of the top Shareholders ( Being Heritage gold directors etc.. , eg SO CO LTD ) didnt take up their holdings and as BAP has said may have investors in the wings to pick the leftovers up.

[doon]

My Guess is that some of the top Shareholders ( Being Heritage gold directors etc.. , eg SO CO LTD ) didnt take up their holdings and as BAP has said may have investors in the wings to pick the leftovers up.

We were not talking about alot of money here-less than NZ$1m shortfall- this should not be alot of money for directors & top shareholders, and in fact is just pocket money for many high net worth individuals? If they have not taken up their holdings, this as not a good sign from people who likely know more about Heritage & its prospects than most of us. I have taken up all mine, not sure now this was a wise move. Would like to think, or hear, that most of the directors & top holders have the confidence in Heritage & have taken up this offer, and that the shortfall was just the small holders who have opted out? Surely the directors & top holders could have found this relatively small amount of money to support this? In fact, they should have jumped at the opportunity if they believed in the near term future!

[whatsup]

What a huge dissappointment this action of some of the top 15 or so shareholders in not taking up their rights, just goes to show that they dont walk the talk!

[Jess9]

HGD will make holders lots of money from its current share price level - in 2008. The basis for this is that we know Trent has planned the right action and funded this. I don't worry about others decisions now, their loss will be our gain ; )

What I do find interesting, however, is that there was a (buying) market for rights, yet no sellers?

[Jess9]

My guess is that HGD will place the remaining shortfall with ease and it was good of the coy to remember all holders instead of taking it just to private investors, which would probably have been less costly and work to the team. Thanks HGD. Holders, you have just had your opportunity!

Merry Christmas everyone, happy new year and may 2008 be a great $$ year $$ for wherever you place your hard earned cash!!

[BAPP]

My guess is that HGD will place the remaining shortfall with ease and it was good of the coy to remember all holders instead of taking it just to private investors, which would probably have been less costly and work to the team. Thanks HGD. Holders, you have just had your opportunity!

Merry Christmas everyone, happy new year and may 2008 be a great $$ year $$ for wherever you place your hard earned cash!!

Merry Christmas to you also Jess9.

I agree that the company should be able to place the shortfall with private investors quite quickly.

Remember also that the recent 'private' placement was 'snapped up' within a few days and with the BHCL listing not far away I'm sure there is an added bonus!

I hope everyone has a safe & enjoyable Christmas & New Year.

Lets look forward to some $$$ gains in the next year!

Best wishes
BP:)

[BAPP]

From the Australian. Good signs for HGD shareholders in the New Year.

http://www.theaustralian.news.com.au/story/0,25197,22967060-18261,00.html

Cobalt Bolts

COMETH the commodity, cometh the IPO.

With cobalt inching up another $US45 a pound this week, thanks mainly to BHP Billiton continuing to draw a line in the price sand, the metal seems set to equal its 1970s record of $US50/lb before long.

Cobalt is suffering from none of the doubts that now surround most of the base metals.

Stand by, then, for the float of Broken Hill Cobalt. It will be a spin-out from Heritage Gold NZ, which gave itself a makeover earlier this year, shaking off its dependence on historic gold mining areas in the North Island and ramping up its holdings on this side of the Tasman. Heritage Gold's price accelerated 117 per cent after switching its focus to uranium in the Northern Territory.

Among its properties is a 33 per cent interest in Thackaringa, which lies 25km south of Silver City. It has been drilled extensively over the years and the new float is based on the expectation that there is 30 million pounds of cobalt there.

That's about $1.5 billion worth at today's prices.

The other 66 per cent is held by a company called So Co, which is owned by well-known merchant banker Geoff Hill, now Hong Kong-based but also Heritage Gold's chairman. Both parties are vending their shares of Thackaringa into the float. Broken Hill Cobalt is now finalising a letter of intent with a Chinese smelter which would take all the concentrate, with credits for rutile and feldspar by-products.

The IPO will be in the $5 million to $7 million region, and Heritage Gold shareholders will receive a priority allocation.

[Oiler]

Merry Christmas to you also Jess9.

I agree that the company should be able to place the shortfall with private investors quite quickly.

Remember also that the recent 'private' placement was 'snapped up' within a few days and with the BHCL listing not far away I'm sure there is an added bonus!

I hope everyone has a safe & enjoyable Christmas & New Year.

Lets look forward to some $$$ gains in the next year!

Best wishes
BP:)

Merry Xmas Jess9, BAP and all other HGD holders.

I agree with you BAP, TL did say at the EGM that Heritage would have had no problem at all in raising the funds needed through a private placement, so I for one, are not too concerned about the shortfall.

Trent is a strategic planner and will have his plan A,B and C in place for every task he has to achieve. To me this is minor issue and the New Year will see some significant movement in this company.

The big guns (Grigor,Hill,Lash,Atkinson etc) know exactly where they are going with this company.

Bring on 2008 :D

[Jess9]

Hi BAP. BHCL is quietly exciting right now, even at only a 1/3 interest, with the cobolt price heading North and the advanced state of this listing it will be really interesting to see where this asset values up and pushes HGD's price to. I think it is not valued at all in the current price level.

If HGD retains just 15-20%, even this level could make a big difference to HGD's current share price. Of more interest to longer term holders, as this gains in value it will provide ready access to cash, or an asset the coy can borrow against to fund Waihi into development. This would be a fantastic stepping stone to flick HGD into production with less dilution to current shareholder wealth!

[BAPP]

Hi BAP. BHCL is quietly exciting right now, even at only a 1/3 interest, with the cobolt price heading North and the advanced state of this listing it will be really interesting to see where this asset values up and pushes HGD's price to. I think it is not valued at all in the current price level.

If HGD retains just 15-20%, even this level could make a big difference to HGD's current share price. Of more interest to longer term holders, as this gains in value it will provide ready access to cash, or an asset the coy can borrow against to fund Waihi into development. This would be a fantastic stepping stone to flick HGD into production with less dilution to current shareholder wealth!

Hi Jess9,

Taking a 'stab in the dark' I would quess that SoCo and HGD would retain overall control (at least 51%) of the company while maintaining their current 2:1 stake holding. In this scenario HGD would retain a minimum of around 17% and SoCo 34%.

The big question(?) then will be what level of preferential treatment will HGD shareholders receive... and what will be the listing price?

It wouldn't surprise me to see a 'sweetener' for HGD shareholders to 'take up' a piece of this action!...and it must be about time the loyal shareholders received a Xmas/New year present from the company.

Indications are that they a looking to raise $5-7 million... maybe an issue of 25-30 million shares @ 25 cents?

What do you think?

Lets hope for some details soon, so we don't have to second quess too long!

Cheers
BP:)

[Jess9]

Sounds about right. At 25m it leaves room for a few issues, post IPO when needed to raise further capital for production/expansion. I wonder if we will see a rights issue to HGD shareholders?

[BAPP]

Sounds about right. At 25m it leaves room for a few issues, post IPO when needed to raise further capital for production/expansion. I wonder if we will see a rights issue to HGD shareholders?

Hi Jess9,

Maybe a rights or bonus issue was the 'enticement' for the investors who were involved with the 'private' placement last month.

With the right strategy HGD could build cash funds for progressing the Talisman project, 'pump' the share price up and still hold a reasonable stake in BHCL for the future.

Cheers
BP:)

[Jess9]

Hi BAP. Just thinking, from a quick excel projection based on the suggested investment sought (5-7m) and a guess at the equity offered in return for this, an IPO could value (pre production) BHCL per HGD share at...

1.4c at 45% IPO
1.7c at 40% IPO
2.1c at 35% IPO
2.6c at 30% IPO
3.3c at 25% IPO
4.4c at 20% IPO


Would you agree?

[Jess9]

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

Like the idea of the MD letter - updated every two months.

[Tanger]

Nice to see that Direct Broking has HGD as one of their 5 picks for the year. Not bad when you compare the other picks of the brokers (Substantially bigger companies). Trent does appear to be doing a good job of spreading the word. Only downside is that it appears I've fallen victum to the Christmas postage rush and looks like I didn't get my recent allotment and options. Damn post, but should have sent it in earlier.

[BAPP]

Hi BAP. Just thinking, from a quick excel projection based on the suggested investment sought (5-7m) and a guess at the equity offered in return for this, an IPO could value (pre production) BHCL per HGD share at...

1.4c at 45% IPO
1.7c at 40% IPO
2.1c at 35% IPO
2.6c at 30% IPO
3.3c at 25% IPO
4.4c at 20% IPO


Would you agree?

Hi Jess9,

My 'workings' show a higher value (approx double), but maybe I'm missing something!

Can you elaborate?

Cheers
BP:)

PS: Hi Tanger, maybe you should make a phone call to Trent early in the New Year!

[Tanger]

Cheers BAP. I might just do that. Managed to top up with a few more in the week before the placement, so didn't miss out all together at those great prices, but can always do with a few more.

[Jess9]

Hi BAP. I took the 7m sought then projected a value for HGD's diluted holdings, post IPO, based on possible equity sold (in return for this investment). This values HGD's interest at IPO but I would think investors would be expecting a premium on listing (to ensure a successful float) and significant increases in price as resource is confirmed and production gets closer. Therefore my estimates are conservative.

[Jess9]

i.e. ((NZD investment sought/equity placed)* HGD's remaining equity percentage)/HGD shares on issue) = inferred BHCL IPO value/HGD share.


e.g. ((7.5m/0.25)*25 percent)/250,000,000 = 3c/HGD share

Or is this too rough and dirty?

[BAPP]

i.e. ((NZD investment sought/equity placed)* HGD's remaining equity percentage)/HGD shares on issue) = inferred BHCL IPO value/HGD share.


e.g. ((7.5m/0.25)*25 percent)/250,000,000 = 3c/HGD share

Or is this too rough and dirty?

Hi Jess9,

I think the main difference in my calculations is that I have 'accounted' for some share value from the funds HGD could derive from the sale of a % of their stake holding.

As noted I would also 'assume' that the additional funds would then be applied to progressing the Talisman projects or similar assets.

Also I may be incorrect, but I was accessing the total market cap of BHCL at $14-15 million.

Cheers
BP:)

[Jess9]

Hi BAP. I can't wait to read the investment statement, it should spell the value to HGD out clearly. Lets hope this is out next week, or shortly thereafter. I'd like to read it over while on holiday!

[BAPP]

Hi BAP. I can't wait to read the investment statement, it should spell the value to HGD out clearly. Lets hope this is out next week, or shortly thereafter. I'd like to read it over while on holiday!

Hi Jess9,

Me too, cos' we're only 2nd quessing until then.
(but it can be fun thinking through the different scenario's!;))

My suggestion to the company would be to offer HGD shareholders a bonus BHCL share for every BHCL share they acquire at listing with one 'free' attached option per share with an exercise date around 2 years time in 2010 for around 'double' the listing price.;)

Would be worth a punt I reckon!:D
....and one way of exciting a few shareholders!;)

Dreams are free!

Lets see what happens!

Cheers
BP:)

[Jess9]

Hi BAP. Just noted gold now 826.50, nice to be back over that 800 bar. Such a trend will be great for 2008 with a resource upgrade targeted!

BHCL: attached options would certainly be a sweetner, free shares, however, could be taxable? I'd be happy with a similiar deal as the recent cap raising - rights to holders which include free options. If the IPO is well covered they will be worth a premium too.

[BAPP]

BHCL: attached options would certainly be a sweetner, free shares, however, could be taxable? I'd be happy with a similiar deal as the recent cap raising - rights to holders which include free options. If the IPO is well covered they will be worth a premium too.[/QUOTE]

Hi Jess9,

Sounds good to me, but as I said 'dreams are free' and especially at Christmas time!:rolleyes:

With regards to the free' share I believe it depends on how it is presented or should I say disguised!;)

Maybe we should send a New Year wish list to Trent! :D
IMO BHCL will provide some momentum for HGD which can then be progressed through to other projects.

Anyway, I hope you have a great New Year and I look forward to reading your comments in 2008.

Cheers
BP:)

[Jess9]

Well its worth asking BAP and we may just receive!

I see gold price is heading higher again. The beutiful thing is as each oz increases by several dollars, over the cost of (eventual) production, this is pure profit to the company.

Its quite amazing how this can substantially and quickly increase the asset backing of a gold company when such prices are applied to current and projected against targeted reserves. 2008 is certainly a golden opportunity for all gold companies and I'm glad changes were made at HGD over 2007 and it is now lining up to deliver gold and silver resource upgrades in 2008.

Have a great New Year also BAP, and to all other readers and posters!

[BAPP]

Well its worth asking BAP and we may just receive!

I see gold price is heading higher again. The beutiful thing is as each oz increases by several dollars, over the cost of (eventual) production, this is pure profit to the company.

Its quite amazing how this can substantially and quickly increase the asset backing of a gold company when such prices are applied to current and projected against targeted reserves. 2008 is certainly a golden opportunity for all gold companies and I'm glad changes were made at HGD over 2007 and it is now lining up to deliver gold and silver resource upgrades in 2008.

Have a great New Year also BAP, and to all other readers and posters!

Hi jess9,

Yes I'll second that!

I have every confidence that Trent is the 'man for the job' and that he will 'deliver the goods' for HGD shareholders over the next few years.

The improving gold & cobalt prices will only enhance the potential growth for the company over the next 12 months and we (loyal shareholders) are fortunate to be involved at such an early stage of this company's resurgence.

Cheers
BP:)

[blackcap]

anyone know why there is such a great discrepancy with the price in Aus and that in NZ?

[Jess9]

I don't think its anything, just the market being the market, especially when trading is light and/or when the xrate changes. As the volume of trading picks up on both sides it generally balances.

The recent share placement may also have placed more shares on the ASX (then NZX); maybe a little re-balancing also?

[Greenfield]

anyone know why there is such a great discrepancy with the price in Aus and that in NZ?

Australians are more intelligent investors then us

[blackcap]

well they must be because why the heck is someone in NZ willing to pay 6 cents for plenty while you can pick the same share up in Austrlia for 5 cents (kiwi) 4.3c aud.

Beggers beleif

[Ekrub]

That was probably me Blackcap, missed out on the rights issue,
even after posting the cheque with six days before the deadline.
So didn't think to check HTM's price in Oz.....silly me. But it's hardly
a Buffet style fortune, is it? Anyway, now I've got 'em, and if this
report in The Australian over the weekend is anything to go by,
maybe a few hundred bucks won't matter a toss before too long.


Cobalt bolts
COMETH the commodity, cometh the IPO. With cobalt inching up another
$US45 a pound this week, thanks mainly to BHP Billiton continuing to draw
a line in the price sand, the metal seems set to equal its 1970s record of
$US50/lb before long. Cobalt is suffering from none of the doubts that now
surround most of the base metals.
Stand by, then, for the float of Broken Hill Cobalt. It will be a spin-out from
Heritage Gold NZ, which gave itself a makeover earlier this year, shaking off
its dependence on historic gold mining areas in the North Island and ramping
up its holdings on this side of the Tasman. Heritage Gold's price accelerated
117 per cent after switching its focus to uranium in the Northern Territory.
Among its properties is a 33 per cent interest in Thackaringa, which lies 25km
south of Silver City. It has been drilled extensively over the years and the
new float is based on the expectation that there is 30 million pounds of
cobalt there - that's about $1.5 billion worth at today's prices.

The other 66 per cent is held by a company called So Co, which is owned by
well-known merchant banker Geoff Hill, now Hong Kong-based but also
Heritage Gold's chairman. Both parties are vending their shares of
Thackaringa into the float. Broken Hill Cobalt is now finalising a letter of
intent with a Chinese smelter which would take all the concentrate, with
credits for rutile and feldspar by-products. The IPO will be in the $5 million
to $7 million region, and Heritage Gold shareholders will receive a priority
allocation.

[Jess9]

Gold, today 840 USD/oz.

[BAPP]

Interesting article on cobalt by Jack Lifton for Resource Investor, suggesting there are positive signs for many years to come. It is well worth the read, especially the forecast on supply requirements for hybrid vehicles.

Cheers
BP:)

http://www.formcap.com/s/CobaltNews.asp

Extract:

There are just two reasons why the price of a natural resource goes up:

1. The real (actual) demand exceeds the supply, or;
2. Speculative demand exceeds supply.

I believe that cobalt is going up in price because of a combination of the above two factors. First of all the existing uses for cobalt are growing and show no signs of moving to substitute materials. Second, a "new" cobalt use, which has so far flown under the investment radar, has begun to grow, and I believe that this has initiated a speculative surge in demand among commodity market players and a surge of risk management by the purchasing departments of some large corporate end-users of cobalt.

[Ponda]

A big thanks to all the loyal supporters of heritage Gold. There are some people on this thread who have so much knowledge and information. It's great to see positive sentiments.

I am very new to the sharemarket and decided to do it as a hobby via the National Bank trading system, that is all really easy to do.... you select a stock ...... and you buy it.

The problem that I have, and hope for assistance is, what does everything mean.

For example:

I purchased HGD, and along the way I ended up (I think) with some HGDOB and I have a entry that states there is HGDRC, however, there is a zero total for the HGDRC.

Am I required at some stage to pay for the HGDRC, what happens if I don't pay.

I have heard that there is a rights issue? What does that mean.

I know that it is cheeky asking this on the forum and that I should probably go to a broker, but with the amount of knowledge here, I believe that I would get a more easily understandable answer.

Thanks in advance.

[Sumnerned]

Hi Panda
I'm a newbie too, so I might get some stuff wrong, but I thought I'd reply since most people are on holiday now. I believe HGDRC were the tradable rights you had for HGD shares and new options, HGDOB. You should have received one HGDOB for each two shares you bought in the offer.
Happy trading in 08.

[Sumnerned]

Sorry! Ponda!

[BAPP]

Hi Ponda & Sumnerned,

Good to see you both joining this thread.

Yes there are some loyal HGD supporters here and lets hope our 'faith' in HGD pays $$$ for all shareholders some time soon!

A new and enthusiastic management team along with potentially excellent permit areas, resource assets and projects provide some good reasons to be a shareholder, however remember HGD remains a speculative share.

Ponda, I think you will have missed acquiring your rights entitlement and therefore will have also missed the opportunity to ‘pick up’ the free attached options.(HGDOB.NZ)

You could phone Trent Lash (CEO) to check out your position. He is very approachable and open to ‘constructive' questions and comments.

Can I also suggest that you view the company website: http://www.heritagegold.co.nz.

The site has recently been upgraded and is very informative, I recommend a thorough read and make sure you view the videos and read the broker analysis.

With the current gold and cobalt prices being positive and possibly looking to continue higher in the long term, the signs (stars in alignment:)) maybe looking to favour HGD shareholders from 2008.;)

The BHCL IPO should be a 'giant leap' forward for the company in the next month or so and IMO it will be exciting to watch the drilling progress at Waihi and the Talisman mine throughout the year.:D

Good luck with your investing.... and Happy New Year to the 'Faithful'!

Cheers
BP:)

[Ponda]

Hi Sumnerned and BAP,

Thanks for your replies.

I feel that as a VERY minor shareholder that contacting Trent would be a little over the top. But it is good to see that he is approachable and maybe when I get to the levels of some investors I would feel more confident in contacting him.

I have been a shareholder since March 07 and am pretty confident that I have got in for the rights issue, HGDOB. (it has in my National Bank portfolio that I do have them.)

I guess I get a little confused when I read on the National Bank screen that I have zero HGDRC and I am unsure what they are.

Thanks

[chippy52]

Hi Ponda
The HGDRC were for the rights issue which closed on 20/12.
From memory they were converted to heads on 21/12 which would then give you the zero balance. You can check your HGD holding balance on NZX site under education>share balance enquiry, fill in your details and select from the drop down screen.The HGDOB are the atached options for the rights issue, this balance is shown on the above.

[BAPP]

Hi Sumnerned and BAP,

Thanks for your replies.

I feel that as a VERY minor shareholder that contacting Trent would be a little over the top. But it is good to see that he is approachable and maybe when I get to the levels of some investors I would feel more confident in contacting him.

I have been a shareholder since March 07 and am pretty confident that I have got in for the rights issue, HGDOB. (it has in my National Bank portfolio that I do have them.)

I guess I get a little confused when I read on the National Bank screen that I have zero HGDRC and I am unsure what they are.

Thanks

Hi Ponda,

The NZ stock exchange website may be of assistance. Log onto the site and find shareholder balance enquiry.

http://www.nzx.com/education/public_shareholder_balance_enquiry

If you enter your shareholder number and select the company security codes(HGD/HGDOB)your current holding for each should be shown. From memory you can only do this during 'normal' Stock Exchange working hours.

Also did you send in an application with the required amount of money for your rights entitlement?

This should have been sent to Link Market Services before the 16th Dec, possibly earlier with the postal 'hold ups' at Christmas.

As you indicated you have been a shareholder since March 07, you should have received a Short Form Prospectus and Investment Statement which explained your entitlement and the cost for accepting the rights offer.

If you accepted and paid for your rights entitlement in time, you should have also received the attached options which have an exercise date in Nov/09.

If you didn't receive this information I would recommend you contact Trent or the Company Secretary - Sue Sangster as suggested in my last post.

Cheers
BP:)

[Jess9]

Hi Ponda, welcome to the thread!

Just ask NB to remove the nil balance showing for HGDRC on your account. I have had this occur in the past using them. I had to phone NB and they manualy removed an old rights ticker, post uptake (after spending ages looking for the delete button - that wasn't there).

If you want to contact HGD, but don't wish to call, just flick them an email. Sue Sangster (the Coy secretary)is also very approachable and helpful.

trent@heritagegold.co.nz

sue@heritagegold.co.nz

[Jess9]

I see today that spot gold has risen to over 850 USD/oz. An article in the Manawatu Evening Standard, on Tuesday, noted that several of the big producers were no longer fwd selling, anticipating spot gold to head into the 1K barrier. Lets see, but this would be great were HGD's drilling programme to also identify 500K oz resource this year (as targeted).

[Jess9]

...and oil last night over $100; gold as an inflation hedge is back in business!

[Jess9]

and spot gold, today USD 864.70. This is great. Now if we just need to produce ; )

[JMKC]

How true...interesting how all you guys are barred up about a company that has basically never pulled any sizeable amount of ANY mineral out of the ground. First it was gold, then it was uranium, now it's cobalt. Why do you guys keep pouring more good money after bad??

[Jess9]

Because several of us think HGD is very near a very positive "tipping point". If we are right, HGD will be a stella performer in 2008.

[etrader]

How true...interesting how all you guys are barred up about a company that has basically never pulled any sizeable amount of ANY mineral out of the ground. First it was gold, then it was uranium, now it's cobalt. Why do you guys keep pouring more good money after bad??

Welcome to Sharetrader JMKC: I can see your point from an investors point of view. HGD
as you'll be aware has three areas of exploration now and are an explorer at this stage not a miner, we are investing on the future of these base metals not a P/E or dividend yield. My view is if it's to risky for you a cashflow positive miner might be more alligned to your investment criterea. I have like Jess9 and bap and a few others invested long on this stock and similar to SMM when it turns in our favour it will prove profitable. Good luck

[BAPP]

How true...interesting how all you guys are barred up about a company that has basically never pulled any sizeable amount of ANY mineral out of the ground. First it was gold, then it was uranium, now it's cobalt. Why do you guys keep pouring more good money after bad??

Welcome to this thread JMKC,

We all have our own opinions on investment strategies and we all have different levels of risk we are willing to accept. I have always indicated that HGD is a speculative (risky) share, but that is the 'nature' of investing in junior 'grass roots' explorers.

I think the answer to your question lies within the 100 or so pages of comments presented by some knowledgeable contributors to this thread.

If you read through some of the 'rationale' behind the comments and take some time to read the HGD website, Broker reports and research the permits and projects already undertaken by the company you will find that there is huge 'potential'.

The 'Potential' of the 'known' projects/assets (Talisman & BHCL) and the target resource levels along with the potential of the management team provide me with enough confidence to hold several million shares in the company. I am investing in the long term potential.

The CEO, Chairman and Directors of this company have a wealth of experience and extensive networks and as the estimated gold and cobalt resource levels are established we will see the share price 'sky rocket' as they develop each project to extract the greatest value.

IMO the BHCL IPO will provide the first opportunity for HGD to improve it's market position with the investment community.

The 'maths' is easy once the resource levels are established, but until then we must accept the risk.. and several of us think(hope)2008/09 will be the turning point for the company.

Anyway good luck with your investments and I hope to see you re-evaluate your thoughts on HGD at some stage.

Cheers
BP:)

[BAPP]

How true...interesting how all you guys are barred up about a company that has basically never pulled any sizeable amount of ANY mineral out of the ground. First it was gold, then it was uranium, now it's cobalt. Why do you guys keep pouring more good money after bad??

Hi JMKC,

In light of your comment I thought it was worth re-posting this extract (below) from the NBR just over a year ago with regards to BHCL and it's economic viability.

When this article was written the price of cobalt was around US$16 per pound... today ( a year later) it is being quoted at US$43-45 per pound and is expected to rise further due to global demand.
http://www.formcap.com/s/CobaltNews.asp

From research of other cobalt producers it would seem that the average cost of operation/production for cobalt is around US$7-!0 per pound. (So at around US$30-40 your looking at a 'pretty good' gross margin;))

A good source of information about cobalt production costs and economic viabilty is: www.idahocobalt.com/s/NewsReleases.asp?ReportID=203335&_Type=News-Releases&_Title=Feasibility-Study-Signals-Green-Light-for-Idaho-Cobalt-Project

BHCL will be listed within the first quarter of 2008 and the company is currently finalising a letter of intent with a Chinese smelter which will take the cobalt concentrate, along with rutile and feldspar by-products.

So now if we consider the values presented in this extract we can be relatively confident that the earning potential inferred is 'understated' given present cobalt prices.

IMO all the more reason to at 'least keep an eye' on HGD this year!

Cheers
BP:)

Extract:

The Thackaringa project owned by BHCL 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.

[Tanger]

Another good article on gold mining in New Zealand from this mornings papers. While it does not specifically name Heritage Gold, it does refer to the ability of prospectors to raise cash more easily given the high price of gold currently.

www.stuff.co.nz/4345020a13.html

[Jess9]

Thanks Tanger. I thought I saw Oceania jump in share price also - albeit on small volume (on NZX at least).

I guess HGD's JORC resource (while not as much as Oceania - yet) is also quietly getting alot more valuable too.

[Jess9]

I see the Sunday Star Times has listed HGD as the third from top share for 2007 (Non NZX 50) at about a gain of 75%.

[macduffy]

Interesting posts, people.

Having overlooked Heritage for my "picks", I may have to make a small investment, purely as a cobalt play. Not that enthusiastic about their gold prospects but one never knows!

[BAPP]

Interesting posts, people.

Having overlooked Heritage for my "picks", I may have to make a small investment, purely as a cobalt play. Not that enthusiastic about their gold prospects but one never knows!

Hi Macduffy,

I'm definitely an advocate for the investment potential of cobalt and BHCL , but don't discount HGD's gold 'play' at Waihi.

The new CEO, Trent Lash was very confident about the opportunities at Waihi and the Talisman mine at the last shareholders meeting. He has extensive experience in gold mining and was clearly excited about being involved with this GOLD prospect.

Can I suggest that you visit the HGD website:
http://www.heritagegold.co.nz/projTalisman.html

You will find some very interesting info, especially when you consider that the JORC compliant resource at the Talisman mine is already 210K oz of gold ( 210k x NZ$1000 +.... looks good to me) and that the company is confident of an economically viable upgrade in 2008.:)

Also have a read about the Mystery vein! IMO this could easily be the 'pot of gold" for HGD shareholders. BHCL is just a start of good things in 2008, but the gold at Waihi and Talisman mine could be my retirement fund!:D

Cheers
BP:)

Disc- hold plenty!

[steve fleming]

Interesting posts, people.

Having overlooked Heritage for my "picks", I may have to make a small investment, purely as a cobalt play. Not that enthusiastic about their gold prospects but one never knows!

HTM currently has a 33% interest in BHCL.

Post IPO this will drop to say 15% - 20%.

Once BHCL funds its feasiblity studies,capex of $50m to $100m+ and opex this holding will dilute even further (say less than 10%).

So your exposure to a cobalt producing company by holding HTM will be pretty small.

If you want exposure to cobalt, IMO, surely it makes more sense to buy BHCL shares in the IPO rather than HTM, especially if you don't rate the gold assets?

Even better, look at CMR which currently has 85Mt(!!) of high grade ore, and will be producing cobalt in the next couple of months, taking real advantage of the current high cobalt prices.

[doon]

[QUOTE=BAP;178333]From the Australian. Good signs for HGD shareholders in the New Year.

http://www.theaustralian.news.com.au/story/0,25197,22967060-18261,00.html

Cobalt Bolts

Here is another on Cobalt from The Australian 7jan07 , great news for BHCL! http://www.theaustralian.news.com.au/story/0,25197,23014048-643,00.html

Cobalt prices got off to a good start with a sale at a post-1979 record of $US45 a pound, and everyone is confident the all-time figure of $US50 will soon be matched. Supplies from the main source, the Democratic Republic of Congo, have been disrupted and BHP Billiton and Norilsk Nickel are finding that each new sale is at a price higher than the preceding one.

Think hybrid cars. The batteries in Toyota's Prius each contain 2.5kg of cobalt, and only 65,000 tonnes are produced each year worldwide. Keep an eye out for announcements that contain the world "cobalt".

[macduffy]

Thanks BAP and steve.

Plenty for me to chew on there!

Will also look out a CMR thread.

[BAPP]

HTM currently has a 33% interest in BHCL.

Post IPO this will drop to say 15% - 20%.

Once BHCL funds its feasiblity studies,capex of $50m to $100m+ and opex this holding will dilute even further (say less than 10%).

So your exposure to a cobalt producing company by holding HTM will be pretty small.

If you want exposure to cobalt, IMO, surely it makes more sense to buy BHCL shares in the IPO rather than HTM, especially if you don't rate the gold assets?

Even better, look at CMR which currently has 85Mt(!!) of high grade ore, and will be producing cobalt in the next couple of months, taking real advantage of the current high cobalt prices.

Hi Steve/macduffy

Another consideration could be any preferential treatment HGD shareholders receive in the BHCL IPO.

For example HGD shareholders 'may' receive a further options arrangement along 'similar lines' to the recent rights issue.

I'm sure we will know more detail in the next few weeks!

Cheers
BP:)

[BAPP]

More cobalt news:
http://www.formcap.com/s/CobaltNews.asp

From:mineweb.com.
Author: Rodrick Mukumbira

Cobalt price running wild on predicted big supply shortfall.

Cobalt was perhaps overshadowed by gold and uranium and other base metals during 2007, but the metal's price is accelerating on tight supplies and a predicted big shortfall as demand grows fast.

It is not as luxurious as gold or as hot as uranium, but cobalt left its mark in 2007, as the former and the latter overshadowed its profile.

Speculative buying and consumer demand in the face of supply constraints in the Democratic Republic of Congo (DRC) and the depletion of US government's and former Soviet Union's stockpiles saw the price for the metal surging over 60% in 2007, the highest since a modern market for cobalt trading was established in 1978.

The cobalt market is currently tight, with producer stocks either said to be sold out or running low, resulting in BHP Billiton and Russia's Norilsk Nickel repeatedly increasing offer prices at every sale.

At the beginning of 2007, the average offer spread cobalt price stood at about US$25 per pound, an increase of about US$12 per pound from the beginning of 2006. The price soared to US$40.25 at the end of the year due to surging demand for batteries for mobile phones and hybrid cars as well as supply constraints following a moratorium on the export of raw concentrates from the DRC in October.

Since the early 90s, cobalt prices had been held down by sales of the US government's stockpiles, and low grade cobalt material from the former Soviet Union, which have largely depleted, according to a Gold Editor Stock Info report.

China increased its consumption to a fifth of global production last year - up from 3% a decade ago, according to Resource Investor, and political concerns following a return to conflict in mineral rich northeastern DRC has had investors worried that production could be constricted.

The Financial Times reported this week that shipments from the DRC, an important supplier, have almost dried up since October when the central government banned concentrates from leaving the country.

Nevertheless, cobalt's public profile is set for further heightening.

Cobalt is largely a copper and nickel mining by-product, with annual production rarely exceeding 65,000 tons, and is now found in a growing range of rechargeable batteries, super alloys such as turbine blades in jet engines, chemicals such as dyes and pigments, wear resistant alloys, catalysts including gas-to-liquid converters, and high performance magnets.

Independent statistics say over the past four years, cobalt use in rechargeable batteries has grown by nearly 300%, the fastest growing segment being the metal's use in fuel-efficient hybrid cars, as the world looks for ways of reducing air pollution and fuel consumption.

The Financial Times report said a battery containing about 2.5 kilograms of cobalt powers the Prius, Toyota's fuel-efficient hybrid car. It quotes auto industry consultants JD Power forecasting that US hybrid-car sales will increase from about 350,000 this year to just over one million by 2012.

Sales of cell phones and laptops are also surging boosting the fortunes of the metal.

This week cobalt for January delivery hit a record-high price of US$45 per pound, according to BHP Billiton's cobalt open sales website, pointing to approximately 50% price increase since January last year.

BHP Billiton, which controls over two percent of the market, sold five tonnes of 99.80% cobalt on December 14 to Europe at US$43, up US$3.75 from its December 7 sale and US$5.25 from its November 29 sale.

Norilsk Nickel was offering the metal at over US$43 per pound.

"The horse has broken out of the stable and is breaking into a full speed stampede, so it's difficult to know where it will end by the time its passions are fully spent," said a bullish trader quoted by Metal-Pages.

Banking group Credit Suisse, which in September inaugurated a market in hi-tech metal cobalt for investors seeking a stable commodity contract, is also confident. Late last month it raised its average price target for cobalt this year by 50% predicting a US$50 per pound price.

"The cobalt market should remain tight, underpinned by tightening short term supply and surging demand," Credit Suisse is quoted as saying, adding "Cobalt prices could spike to $50 per pound in the short term if supply continues to dry up while demand remains strong.

"We believe consumption particularly from China shows no signs of slowing and global demand for cobalt could grow as much as 7% per annum from 2007 to 2009."

The banking group also predicted a supply deficit of 1,680 tons next year.

[BAPP]

Good to see some of the management 'fronted' by taking up their Rights entitlement.

It's always provides a 'bit of confidence' for other shareholders when Directors and management are putting up some money too!

Cheers
BP:)

[Jess9]

I see 09 oppies (HTMOA) first traded on ASX today at 1.9c AUS, very good buying, if we get that resource upgrade this year.

[BAPP]

Well the positive gold and cobalt prices don't seem to be doing much for HGD share price today.

With gold hitting US$880 per oz and cobalt selling at over US$45 per pound (US$100,000 per metric ton) overnight, it seems the potential is there.

However it looks like the 'market' wants clarification of resource levels and some confirmation of production 'starting' before getting 'excited' about this one.

The current JORC compliant gold resource at Talisman is becoming a bigger asset everyday at this rate and if BHCL's cobalt estimates are anywhere near correct they could possibly have revenues worth around NZ$1.5 billion.

It will be interesting to see what happens in the next quarter or two, but I'm sure the management will be wanting to make the most of these opportunities too!

Cheers
BP:)

[Jess9]

Gold higher again today - heading towards that 900 barrier, great timing Trent, with Waihi drilling to start shortly. Oppies (08 and 09), giving extra leverage, should prove boyant this year!

[Tanger]

Surely it just means it is a good buying opportunity at the moment. The price is now down below the latest issue price. Interestingly, I contacted the company as my cheque arrived late in Christchurch. I enquired as to whether there might be an opportunity to partake in the shortfall, but the feeling that I got from the reply was that it was already all taken up (or at least earmarked!).

[tobo]

Tanger, hope you get what you want from market before the big moves start.
(I think BHCL and gold resource news will each poke Mr. Market in the ribs, hard.)

[BAPP]

Surely it just means it is a good buying opportunity at the moment. The price is now down below the latest issue price. Interestingly, I contacted the company as my cheque arrived late in Christchurch. I enquired as to whether there might be an opportunity to partake in the shortfall, but the feeling that I got from the reply was that it was already all taken up (or at least earmarked!).

Hi Tanger,

Yes, good buying opportunity at the moment, but remember those shareholders who took up their 'rights entitlement' also received 'free' options.

There will always be a period of re-adjustment as 'some' shareholders may decide to 'sell off' or 'hold' either/or the additional head/options they have acquired.

Off course the best re-rate is the one which comes from positive news and I tend to agree with Tobo's sentiments on this one!

As indicated previously, the management was very confident at the shareholders meeting that they would easily and quickly place any 'shortfall' with private investors.

IMO they probably could have raised the entire capital funding requirements through a private placement in Australia, but felt it was also appropriate to give 'loyal' shareholders 'a bite at the cherry' so to speak!;)

Cheers
BP:)

[Jess9]

I think your thoughts above BAP, are right on. Allowing existing holders opportunity/access to this was a great way of looking after patient shareholders - well done Trent and the HGD team, and holders who grabbed this opportunity! I get the feeling that HGD is going to be a wild ride in 2008, finally.

IMO the increase in the gold price will continue to accelerate, as speculators jump on board and this will push, goldies up with it, quickly. Especially where coy's have in ground resource, "world class" permited areas an are showing decent action to increase resource from these (e.g. HGD ; ) 2008 will be the year to hold goldies to make real cash.

2008 could well be the best time for HGD to have Trent develope the Waihi permits. The recent cap raising will soon be complete (as Tanger notes) and then the focus of both the coy and its investors will firmly be on the job at hand - resource upgrades and gold production developments.

Were HGD to be well above 10c NZ later this year, from its planned efforts, 2008 option holders will do well, and HGD will have access to ready cash for further resource developement. Lets not see a repeat of the HGDCA's, a funding and holder relations opportunity lost.

[JMKC]

Many commented earlier that if I want a company that has stable cashflows/dividends, then there isn't much point in me passing judgment on an exploratory miner. That comment is indeed warranted.....HOWEVER I am certainly not risk averse, nor have I shied away from punting (and that is all it ever is) reasonably successfully on explorers...PMH and PMHOA for example.

My issue is not with people trying to trade exploration companies, but more specifically with HGD. Someone else can do the maths, but I am sure I could safely say they have done at least 10 capital raisings over as many years (be they rights issues, warrants, ord placements etc), and have yet to find and significant resource. This would tend to indicate to me that the so called quality staff they have on board aren't quite what they're cracked up to be, and on top of that the tenements they currently hold are substandard.

I am the first to admit that cobalt is not my area of speciality, and perhaps BHCL will be the saviour for HGD investors,d however as far as gold is concerned...the Au px could be US$2000/oz and it wouldn't make a smack of difference...HGD DON'T HAVE ANY!

If someone could please tell me how many times HGD investors have exercised options/warrants (ie they have been in the money) as opposed to watching them expiring worthless/selling below the combined theoretical px of the heads and ords I would be very interested to know...guessing it would be a very small percentage.

[BAPP]

Many commented earlier that if I want a company that has stable cashflows/dividends, then there isn't much point in me passing judgment on an exploratory miner. That comment is indeed warranted.....HOWEVER I am certainly not risk averse, nor have I shied away from punting (and that is all it ever is) reasonably successfully on explorers...PMH and PMHOA for example.

My issue is not with people trying to trade exploration companies, but more specifically with HGD. Someone else can do the maths, but I am sure I could safely say they have done at least 10 capital raisings over as many years (be they rights issues, warrants, ord placements etc), and have yet to find and significant resource. This would tend to indicate to me that the so called quality staff they have on board aren't quite what they're cracked up to be, and on top of that the tenements they currently hold are substandard.

I am the first to admit that cobalt is not my area of speciality, and perhaps BHCL will be the saviour for HGD investors,d however as far as gold is concerned...the Au px could be US$2000/oz and it wouldn't make a smack of difference...HGD DON'T HAVE ANY!

If someone could please tell me how many times HGD investors have exercised options/warrants (ie they have been in the money) as opposed to watching them expiring worthless/selling below the combined theoretical px of the heads and ords I would be very interested to know...guessing it would be a very small percentage.

Hi JMKC,

As I indicated in a previous post ... it is all a matter of opinion. Good luck on yours!

I'm sure all contributors to this 'thread' wish everyone the best of fortune when it comes to their investments.

This reminds me of an ole' saying, 'you can't change the past ... but some people can influence the future.;)

Cheers
BP:)

[Jess9]

JMKC - as I have stated, the key difference going fwd for HGD is the management/board changes made in 2007. This, along with the gold/cobolt/uranium price surges should prove a profitable formulae when applied to advancing its permits, all within the next 24 months.

IMO, HGD is near a "tipping point" and entry price is still near the ground floor. You do the research, and if you agree, buy in, if not best of luck for what ever you do choose : )

[steve fleming]

.the Au px could be US$2000/oz and it wouldn't make a smack of difference...HGD DON'T HAVE ANY!
.

????

Had an IGV of $200 milllion +, last time i looked!

[Jess9]

Hi Steve, agree, hyperthetically if HGD could extract and sell all its resource tomorrow (on 205K oz in the old Talisman mine) it has a gross value of about $1 NZ per share - just on the Waihi gold resource. If Trent can double this resource (as intended in 2008) and show the market he has the ability to develope this mine and extract the gold, IGV, market value and share/oppie holder wealth will head North very quickly!

As the existing resource is currently all in the old Talisman mine, extraction may also require less effort. HGD have had several years to advance the required mining permits etc. If these are all in/nearly in place, in theory HGD could extract soon.

A portion of money from gold sales could then be used to develope/find further resource, instead of cap dilution. Alternatively, HGD might elect to pursue a merger/JV arrangement with Newmont, who own the bordering Martha mine.

2008 might be a year for T/O as the gold price makes gaining good permits and existing IGR very desirable for the bigger players, especially when these are next to an existing production facility and associated infrastructure.

[BAPP]

Sometimes it can be hard to see the wood ... for the trees!;)

Cheers
BP:)

[BAPP]

I enjoyed this little quote from the Australian:
http://www.theaustralian.news.com.au...-18261,00.html

'Keep an eye out for announcements that contain the world "cobalt".;)

Cobalt is now being quoted @ US$47.50 per pound. http://cobalt.bhpbilliton.com

I hope the HGD/BHCL management have a strategy to take advantage of this huge price increase. (over US$50 per pound by the end of the month... just in time for an IPO?)

The BHCL IPO could be very interesting if the strategy is right and the resource levels are confirmed.... with probable 'buyers' for the concentrate already in the pipeline. ( sounds positive to me.;))

Cheers
BP:)

[Jess9]

Hi BAP

Also this looks good as a sign of things to come...

-------------------------------------------
U.S. gold futures hit record $900/oz on funds

NEW YORK, Jan 11 (Reuters) - U.S. gold futures rose to a record high at $900 an ounce Friday, boosted by robust interest by investment funds and chart-based support.

At 10:42 p.m. EST (1542 GMT), most-active gold for February delivery GCG8 on the COMEX division of the New York Mercantile Exchange was up $5.10 at $898.70 an ounce after hitting $900.10 just minutes earlier. (Reporting by Frank Tang; Editing by John Picinich)

Source: http://uk.reuters.com/article/oilRpt/idUKWEN335420080111
-------------------------------------------

[Jess9]

BAP, maybe the rising cobolt price is delaying the IPO. Each time it jumps, HGD need to reprice the shares to be made available ; )

More seriously, I think it will be very good for HGD to seperate BHCL. The value question will be answered, and more importantly HGD management will be able to focus time and energy on Waihi - as theirs is freed up by new (BHCL) management and they take over the developement/running of BHCL.

Its nice to have a few pokers in the fire at the same time, but as a small coy, HGD needs to really focus on one at a time. Lets see this now be on Waihi and the gold. At $900+ per oz (vz $50/pound) cobolt a very poor cousin to gold!

[BAPP]

BAP, maybe the rising cobolt price is delaying the IPO. Each time it jumps, HGD need to reprice the shares to be made available ; )

More seriously, I think it will be very good for HGD to seperate BHCL. The value question will be answered, and more importantly HGD management will be able to focus time and energy on Waihi - as theirs is freed up by new (BHCL) management and they take over the developement/running of BHCL.

Its nice to have a few pokers in the fire at the same time, but as a small coy, HGD needs to really focus on one at a time. Lets see this now be on Waihi and the gold. At $900+ per oz (vz $50/pound) cobolt a very poor cousin to gold!

Hi Jess9,

I agree with your sentiment regarding seperate management for BHCL and HGD focussing on their 'gold' resource at Waihi. I am sure this is already 'the case' as the BHCL IPO is being 'driven' from Aussie. I would assume that Geoff & Matthew Hill will be at the 'helm' for BHCL through Southern Cobalt (SoCo).

For certain, gold will always 'out price' cobalt on a oz to lb comparison, however I would suggest that when we consider the BHCL/Waihi scenario's, this will really depend on the established resource levels and the cost of production.

For example; 30 million pounds of cobalt x US$50 is still worth more than say; 600koz gold at $US900 and IMO the margins from the cobalt could be far greater than for the gold. (average production costs for cobalt seem to be around US$8-10 per pound and for gold they seem to be around US$380-400 per oz)

Remember also that BHCL has permits to explore for other minerals, including gold, silver, tungsten, zinc etc. The Broken Hill area is will known for these resources, so I suspect the company could achieve further earning potential.

Of course all this suggests that HGD and BHCL should have seperate management as you rightly indicate.

I still believe that cobalt is one of the 'quiet' performers and the price will go higher when the investment community realises how much demand there is globally.

I'm looking forward the seeing the details of the IPO in the next few weeks.

Cheers
BP:)

[Jess9]

Good point BAP, its the margin, resource level and extraction time which drive value. Hope we get to see some (cobolt) numbers soon then.

[Jess9]

but if Waihi were to have 2m oz of resource (rather than 600K) as there is much yet to explore...

[AMR]

What's IGV?

Jess9, you seem to have followed HGD for a while. Would you say they have enough proved and probable resources to make extraction worthwhile? If so, why haven't they done that already?

[BAPP]

but if Waihi were to have 2m oz of resource (rather than 600K) as there is much yet to explore...

Now that would be exciting... and then we would have the best of 'both worlds' (cobalt and gold).

The HGD/BHCL's permits cover two of the 'best recognised' resource areas in the world, so if the funding were available I'm sure exploration can be extended alot further yet?

Cheers
BP:)

[BAPP]

Cobalt price has jumped again with BHP now quoting US$48.25 per pound.
http://cobalt.bhpbilliton.com/

Positive article by Iain Dey of the Telegraph with regards to Cobalt demand also.
http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2008/01/11/cncobalt111.xml

Cobalt price soars as stockpiles run low.

Cobalt, the key mineral used to make electric batteries, has soars to a new record high.

Strong demand and scarce supply pushed prices in Europe to $46 a pound.

BHP Billiton, the London-listed mining giant, was only willing to sell stock at $47.50 by the close of trade, according to traders.

The price has soared by about $5 in the past week and is 70 per cent above the levels seen a year ago.

With stockpiles being run down, the price looks set to climb further.

"There's no metal around, producers are sold out," said one European trader.

Cobalt is a key component in manufacturing lithium-ion batteries, one of the most common types of rechargeable battery used in consumer electronics.

Radioactive versions of cobalt are used in the treatment of cancer as a tracer that can monitor drugs passing through the body.

It is widely used in the defence industry. The US Defense Logistics Agency has historically kept a large stockpile of the mineral to help secure the US military's needs.

One London-based trader said the DLA held about 52m pounds of cobalt in 1993, but this has been whittled down to little more than 1.5m pounds. "The average rate of annual sales in those 14 years has been 1,650 tonnes per annum," the trader said.

"At this rate of sales the DLA will have exhausted its cobalt stocks by June of this year."
end.

'Keep an eye out for announcements that contain the word "cobalt"

Cheers
BP:)

[Jess9]

What's IGV?

Jess9, you seem to have followed HGD for a while. Would you say they have enough proved and probable resources to make extraction worthwhile? If so, why haven't they done that already?

IMO, and put plainly, doing a business well is about doing the right stuff at the right time. In the past, while HGD has been busy, what it did do didn't add real value - evidenced by the languishing share price, till now.

I think the board finally accepted this in 2007 and had a bit of a shake up and Trent (starting in 2007) now brings new blood into HGD's management. From my limited knowledge of him to date, he seems to have the right skill set, experience and enthusiasm to focus the coy's energy's on "the right stuff" and to see these things completed.

Put simply, initially the right stuff is probably about adding enough JORC resource at or near Talisman for HGD to "be noticed". When this occurs, HGD can proceed with a BFS so as to either borrow to fund capex/production, or negotiate from a position of strength into a JV, or even outright sale to a third party - if the price was right ; )

IMO the gold is there, it just needs the right man to have it dug out and sold! If this does occur in 2008/09 HGD could transform and quickly head towards $50c - 1/share, similar to Summit...However, this is of course just an opinion, at this stage at least. Remember DYOR.


PS IGV = in ground value

[Jess9]

I wonder if it is possible that cobolt could "do a Uranium" in terms of price, and just keeping going through that 50 mark, BAP. Cobolt at 100 or say 150 USD / pound USD would certainly change underlying value (even at 1/3 ownership). I don't know the supply side well enough to get a feel for this curent run, but if new longterm demand is emerging and increasing then a sustained increase and new (price) base level could certainly establish it self, well above the old price... but for now 150 cobolt is just a pleasant dream : )

[BAPP]

I wonder if it is possible that cobolt could "do a Uranium" in terms of price, and just keeping going through that 50 mark, BAP. Cobolt at 100 or say 150 USD / pound USD would certainly change underlying value (even at 1/3 ownership). I don't know the supply side well enough to get a feel for this curent run, but if new longterm demand is emerging and increasing then a sustained increase and new (price) base level could certainly establish it self, well above the old price... but for now 150 cobolt is just a pleasant dream : )

Hi Jess9,

I quess it's all about 'supply and demand' ...so the price should remain strong while the present demand continues.

The price has increased significantly in the last year due primarily to the demand for batteries for mobile phones, memory chips, laptops and hybrid cars.

It was recently reported in the Financial Times that the Toyota Prius, fuel efficient hybrid car contains 2.5 kilograms of cobalt and that the industry is forecasting that in the United States alone, hybrid-car sales will increase from about 350,000 this year to just over one million in the next 3-4 years.

Also the increase in demand for cobalt in the new hybrid battery is coming from outside of the United States. The hybrid batteries are being made in China and Japan and my understanding is that these countries produce very little cobalt themselves and are reliant on steady, un-interrupted supply from external sources.

Cobalt has a huge list of industrial and medical uses such as super alloys for jet engines, chemicals such as inks dyes and pigments, catalysts including gas-to-liquid converters, high performance magnets, radial tyres, cutting and drilling steels, prosthetics, food supplements... the list goes on!

With this in mind it seems quite likely that the price will climb higher while the supply chain is restricted.

One of the main reasons for the supply shortage is that the government of the Democratic Republic of Congo has stopped/banned any concentrates leaving the country and at this stage there are no 'new' producers suppliers 'coming on board'.

Credit Suisse has predicted there will be a supply deficit of 1,680 tons next year and now some analysts are suggesting prices will hit US$60-70 this year.

Jess, cobalt has had a very 'low profile' in the investment market, but over the last year this has slowly changed and we are now starting to see some serious interest taking place internationally.

IMO this all 'bodes' well for BHCL/HGD and any other suppliers.

So as I commented earlier, 'Keep an eye out for announcements that contain the word "cobalt"

Cheers
BP:)

[BAPP]

IMO, and put plainly, doing a business well is about doing the right stuff at the right time. In the past, while HGD has been busy, what it did do didn't add real value - evidenced by the languishing share price, till now.

I think the board finally accepted this in 2007 and had a bit of a shake up and Trent (starting in 2007) now brings new blood into HGD's management. From my limited knowledge of him to date, he seems to have the right skill set, experience and enthusiasm to focus the coy's energy's on "the right stuff" and to see these things completed.

Put simply, initially the right stuff is probably about adding enough JORC resource at or near Talisman for HGD to "be noticed". When this occurs, HGD can proceed with a BFS so as to either borrow to fund capex/production, or negotiate from a position of strength into a JV, or even outright sale to a third party - if the price was right ; )

IMO the gold is there, it just needs the right man to have it dug out and sold! If this does occur in 2008/09 HGD could transform and quickly head towards $50c - 1/share, similar to Summit...However, this is of course just an opinion, at this stage at least. Remember DYOR.

PS IGV = in ground value

Hi Jess9,

Maybe the 'Stars are in Alignment' for HGD this year!

High gold & cobalt prices!
New CEO with enthusiasm & mining background!
New Chairman & Directors on board!
Capital available now for further exploration and drilling in 2008!
Permit areas & projects situated in renowned resource areas. (Broken Hill and Waihi)
205K oz gold and 800k oz silver JORC compliant reserves at Talisman mine!

The time is right!

Cheers
BP:)

[etrader]

Certainly looks that hgd will come to in 08, i guess the past sentiment of the stock has held it back, we saw the huge shift in s/p over the Uranium hint early last year but quickly died away, hopefully as Trent is moving the company fast and changing around all thing HGD we'll emerge with a learn focused group.

below is a link showing the uses for Cobalt and a little more about it.

http://www.thecdi.com/general.php?r=JZEM5BP6AH

[wk6332]

Gold is now at US$900 per oz

[Jess9]

and per DB's market summary, it closed through that magic mark!

Commodity Last Change

Spot Gold $US 906.30 $10.50 1.17%

[Jess9]

after that close, USD 1000/oz is starting to look like only a hop or two away ; )

Sharpen those drill bits HGD!

[Jess9]

at 906USD/oz 205Koz is worth about 96cNZ/share - IGV.

If drilling confirms a resource upgrade to 500K, IGV would be $2.34NZ/share. Nice increase?

Please remember, IGV is not the market value of each share, but it does give some basic idea of an asset backing per share. To me it shows that the resource target of 500K, if reached in 2008 is going to be very very good for HGD's share price. 500K oz at 1000USD/oz is about $2.58NZ/share IGV. 2008 will be the year for junior explorers/producers to shine : )

[BAPP]

after that close, USD 1000/oz is starting to look like only a hop or two away ; )

Sharpen those drill bits HGD!

Hi Jess9,

What we really need at the moment is some indication of a resource upgrade at Talisman mine. With a JORC compliant gold resource of 205K oz we need to see an additional 300-400K oz established to create some 'real' interest in HGD.

The market will not factor the high gold price into HGD's share price until they have an indication the project has economically mining potential.(500k oz +) As I've indicated previously the Mystery vein looks very exciting and IMO the website gives a good indication of the Talisman's potential. http://www.heritagegold.co.nz/projTalisman.html

Lets hope the quarterly report at the end of the month reveals management are heading in this direction.

First indications that the BHCL IPO is a matter of weeks away was presented to Far East Capital clients (by Warwick Grigor) recently, so maybe we will see some activity on both fronts by the end of the month!

Cheers
BP:)

[Jess9]

"US gold rises to record above $910 on funds, dollar"...
http://www.reuters.com/article/companyNewsAndPR/idUSN1439509920080114

[tobo]

at 906USD/oz 205Koz is worth about 96cNZ/share - IGV.

If drilling confirms a resource upgrade to 500K, IGV would be $2.34NZ/share. Nice increase?

Please remember, IGV is not the market value of each share, ...

I recall that rough and ready sp valuation of juniors is 10% of IGV.
And I acknowledge BAP's point that market will wait for 500Koz to recognise enonomic business. There are so many targets for gold (Talisman, Rahu, Dominion Knoll, Waitete, Waihi North, Golden Valley) that 500Koz is a reasonably easy target and only a matter of time. (Yeah, I know, it's been a long wait, but mgmt turned a corner in that respect, and it's jump aboard and away we go.)

IGV currently 96c x 10% = 10c per share (excluding Cobalt)
IGV for 500Koz 2.43c x 10% = 25c per share (excluding Cobalt)

Tobo. Holding.

[blackcap]

tobo bap jess et al,

I like your enthusiasm but surely the shareprice should reflect this and it does not so is that in itself not saying anything? Or are you purporting that in this case the market has got it wrong and horribly wrong?

[BAPP]

I recall that rough and ready sp valuation of juniors is 10% of IGV.
And I acknowledge BAP's point that market will wait for 500Koz to recognise enonomic business. There are so many targets for gold (Talisman, Rahu, Dominion Knoll, Waitete, Waihi North, Golden Valley) that 500Koz is a reasonably easy target and only a matter of time. (Yeah, I know, it's been a long wait, but mgmt turned a corner in that respect, and it's jump aboard and away we go.)

IGV currently 96c x 10% = 10c per share (excluding Cobalt)
IGV for 500Koz 2.43c x 10% = 25c per share (excluding Cobalt)

Tobo. Holding.

Hi Tobo,

I have seen a similar formula used as a 'rule of thumb' calculation also.

However I would suggest (and this is only my opinion) that once a JORC compliant resource of economical size (say: 500-600k oz for a 10 yr mine life) is established the 'risk' to 'reward' ratio improves significantly.

Therefore the 10% of IGV maybe 'about right' at this point of time, but if the resource is established at 500K oz and is economically viable to mine, then the percentage should improve to around 20-25%. This would value HGD at around 50-60 cents and of course the price of gold 'plays' a significant factor so the current price should help improve the value further.

IMO this is one of the reasons HGD is currently undervalued by the market and why I have been building a stake in the company. If you review some of the 'junior' explorers listed on the ASX, there are few companies with such extensive assets/resources.

Also the market (IMO) has not 'realised' the potential value of the cobalt asset at Broken Hill.

Of course this is all a matter of opinion, but I’m confident the management will make progress in 2008.

Cheers
BP:)

[Jess9]

tobo bap jess et al,

I like your enthusiasm but surely the shareprice should reflect this and it does not so is that in itself not saying anything? Or are you purporting that in this case the market has got it wrong and horribly wrong?

Blackcap, look at all great share price runs, they all start from a low base, I think HGD is near/at this starting point.

[Jess9]

...putting it another way, IMO the market HAD it right, i.e. it wont factor in change now occuring till HGD delivers tangible success. Therefore what is important, is for Trent to deliver the indicated gold resource increase and assist in a sucessful BHCL IPO, in 2008. Any share price increase will only follow after such success. I think this will happen, and my chips are placed.

[BAPP]

...putting it another way, IMO the market HAD it right, i.e. it wont factor in change now occuring till HGD delivers tangible success. Therefore what is important, is for Trent to deliver the indicated gold resource increase and assist in a sucessful BHCL IPO, in 2008. Any share price increase will only follow after such success. I think this will happen, and my chips are placed.

Exactly! Although the share price 'should' increase following EACH success!

Cheers
BP:)

[Oiler]

...putting it another way, IMO the market HAD it right, i.e. it wont factor in change now occuring till HGD delivers tangible success. Therefore what is important, is for Trent to deliver the indicated gold resource increase and assist in a sucessful BHCL IPO, in 2008. Any share price increase will only follow after such success. I think this will happen, and my chips are placed.

Well said Jess9 ...I totally agree. My chips are placed and slowly adding to them :D I am IN.

Oiler

[BAPP]

Hopefully a few more announcements to be made in the next week or two also!

Cheers
BP:)

HGD
17/01/2008
GENERAL

REL: 1458 HRS Heritage Gold NZ Limited

GENERAL: HGD: Granting of Uranium Licences and Share Issue

Heritage Gold NZ Ltd ("Heritage") is pleased to announce that all three
licences have been granted on the Dunmarra Basin uranium exploration project.

Heritage has today completed a share issue in part consideration of Heritage being entitled to earn an interest in the three exploration licence
applications referred to in the 12 March 2007, 13 and 19 April 2007
announcements.

[JMKC]

Hopefully a few more announcements to be made in the next week or two also!

Cheers
BP:)

HGD
17/01/2008
GENERAL

REL: 1458 HRS Heritage Gold NZ Limited

GENERAL: HGD: Granting of Uranium Licences and Share Issue

Heritage Gold NZ Ltd ("Heritage") is pleased to announce that all three
licences have been granted on the Dunmarra Basin uranium exploration project.

Heritage has today completed a share issue in part consideration of Heritage being entitled to earn an interest in the three exploration licence
applications referred to in the 12 March 2007, 13 and 19 April 2007
announcements.

Great BAP....so am I reading this correctly that your shareholding in the company has been diluted (AGAIN) in order for HGD to gain "an interest" (what percentage exactly) in an area where there MIGHT be mineral deposits?


Sounds ideal :confused:

[BAPP]

Great BAP....so am I reading this correctly that your shareholding in the company has been diluted (AGAIN) in order for HGD to gain "an interest" (what percentage exactly) in an area where there MIGHT be mineral deposits?

Sounds ideal :confused:

Hi JMKC,

Yes I thought it was worthwhile voting in favour of this outcome. It was passed at a shareholders meeting in April 2007, so nothing really new with regards to the issue of shares.

I just think it's good to see the permits have finally been granted.

IMO the issue of shares (5 million @ Au3.5c - from memory the was done in two stages) was an excellent solution for HGD as they endeavour to extend their resource base and assets.

In the long term the company has added another 'string to it's bow' without putting any stress on working capital/cashflow.

Yep! Sounds OK to me, but obviously they need to get the drilling underway and establish a resource level for the permit areas. A percentage of the recent capital funding has been 'earmarked' for this in the first half of 2008.

Just one other reason I was keen to accept my rights entitlement and 'pick up' some extra through the shortfall.;)

IMO this is just 'the start' of some exciting possibilities for HGD in 2008!

Cheers
BP:)

[Jess9]

Announcement this afternoon says all shares now placed. Well done HGD, especially with a tough week in the markets.

[BAPP]

For those interested!

Well done to Trent for managing to raise the 'capital' required in what could be termed 'difficult market conditions"!

Last paragraphs tell the story!

HGD
21/01/2008
PLACE

REL: 1633 HRS Heritage Gold NZ Limited

PLACE: HGD: Heritage Gold successfully raises $3.6M

Heritage Gold successfully raises $3.6 million in fully subscribed placement
and rights issue

In November 2007 Heritage Gold announced a programme for raising $3.6
million, through private placement and rights issue, to fund its exploration
programme for 2008/2009.

The placement of 36,000,000 new shares and free attaching options was
successfully completed on November 21 with strong market support.

The Heritage Gold rights issue gave shareholders the right to purchase a
total of 35,650,415 new shares, with 17,825,207 free attaching options on the
same terms as the placement. The issue closed on December 20 and 17,814,303
shares and 8,907,073 options were issued on December 24.

A further 9,000,000 shares and 4,500,000 free attaching options were taken up
on January 10 leaving a shortfall of 8,836,112 shares and 4,418,056 attaching
options to be placed by March 20, 2008 at the discretion of the Board.

Overseas shareholder rights of 2,307,660 were sold into the market under ASX
listing rule 7.7.1 (b) and the proceeds of $4,191.90 were distributed to
these shareholders in proportion to their shareholding.

Following Director approval, the rights issue shortfall of 8,836,112 shares
and 4,418,056 free attaching options has been placed and the shares and
options issued by Heritage Gold today.

"Given the current state of play of the market the successful completion of
our capital raising is a tremendous vote of confidence in Heritage Gold and
its new focus" says Trent Lash, Managing Director.

The company now has the money to advance exploration on its key gold
tenements and begin preliminary exploration of its recently acquired base
metal and uranium licences.

Heritage is ideally positioned to benefit from the renewed enthusiasm for
gold stocks, resulting from a current record gold price of around US$900 that is predicted to go even higher.

Any drilling success on its high quality gold projects in the Coromandel
region of New Zealand can be expected to have a material impact on the share
price.

Sue Sangster
Company Secretary

[ScrappyO]

Now the Placement has been made we should see that BHCL IPO.
Looking forward to that.

[BAPP]

HGD
24/01/2008
GENERAL

REL: 1506 HRS Heritage Gold NZ Limited

GENERAL: HGD: Heritage Gold Increases its Investment in Cobalt

Heritage Gold NZ Ltd ("Heritage") has provided Broken Hill Cobalt NZ Ltd
("BHCL") a convertible loan facility for A$137,500 to support the proposed
listing of BHCL on the Australian Securities Exchange (ASX). Heritage has a
33% interest in BHCL which holds exploration and mining licences over the
Thackaringa cobalt resource near Broken Hill.

Southern Cobalt Ltd, the other BHCL shareholder, with a 67% interest in BHCL,
has provided BHCL with a convertible loan facililty for A$275,000 on the same
basis.

BHCL is planning to list later this year.

The Thackaringa cobalt prospect is based on near-surface pyrite deposits at
Big Hill and Pyrite Hill which represent a significant cobalt resource.

Currently, BHCL is primarily focussing on exploration for cobalt and base
metals. A BHCL listing would represent the only pure cobalt investment
available to the public in Australasia.

Through the proposed Initial Public Offering (IPO) BHCL plans to raise up to
A$7 million dollars for extensive resource drilling and working capital
necessary to move the company through an early stage development process.

The price of cobalt is at an all time high of US$48 per lb (spot price) and
is forecast to possibly reach US$54 per lb by mid 2008. Cobalt stockpiles are
at an all-time low with raw material constraints driving price volatility in
the short to medium term.

BHCL negotiation with Chinese smelter groups for supply of cobaltiferous
pyrite concentrate is well advanced. The project is located close to a rail
link to Port Pirie from where the concentrates can be shipped to overseas
markets.

BHCL intends to complete a feasibility study into the development of the
Thackaringa Cobalt Project within two years of listing.

Heritage Gold believes that its investment in BHCL and the high growth cobalt
market represents tremendous potential value for Heritage shareholders.
Provision for a reserved pool of shares for subscription by Heritage
shareholders in the proposed BHCL listing is being finalised.

Key terms of convertible loan facility

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

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

Sue Sangster
Company Secretary

[tobo]

quote "BHCL is planning to list later this year."

This seems to be making exact timing a little less concrete than previously indicated, and potentially further out.
Probably a good move as it gives management some discretion to time things, what with the current global turmoil.

I continue to be happy with this though:
quote "Provision for a reserved pool of shares for subscription by Heritage
shareholders in the proposed BHCL listing is being finalised."

Tobo... I should be working

[moimoi]

seems to be something missing from announcement...

"Provision for a reserved pool of shares for subscription by Heritage
shareholders in the proposed BHCL listing is being finalised."

should read...

Provision for a reserved pool of shares, at a substancial discount, for subscription by Heritage
shareholders in the proposed BHCL listing is being finalised.

[moimoi]

seems to be something missing from announcement...

"Provision for a reserved pool of shares for subscription by Heritage
shareholders in the proposed BHCL listing is being finalised."

should read...

Provision for a reserved pool of shares, at a substancial discount, for subscription by Heritage
shareholders in the proposed BHCL listing is being finalised.

[etrader]

Given the fact it's quite a small float and the fact it's the only pure play it could have a reasonble demand for shares, so by allocating shares to hgd it gives us the security of getting the stock.. The BHCL float will emerge over time once more drilling happens, once there is a defined level of resource which is positive the s/p will move up accordingly.

[Jess9]

Smart move HGD - including an option for coverting debt repayment to equity (plus free options) at the holders choice. Shame about market volatility or I'm sure this would be out of the blocks sooner. However as said above, a wait for the market to settle somewhat won't hurt... as cobolt prices should either consolidate or head higher and BHCL will advance work there further, with current funding.

[doon]

I don't think the market is very impressed with the further delays (perceived?) to the BHCL IPO? It was originally planned before end 2007, then early 2008, now later this year. When is 'later'? I am sure we would all like to know. Some investors may regard this delay as being OK considering the current market turmoil, but I believe more investors will be getting tired of waiting & not impressed with delays. I don't think you can try & programme these events for when you think the market will be best, you've just got to set the date & take your chances. I think investors new & old were hopeful the 'new' management team would finally get things done. I am still very positive about medium term prospects with Heritage, but disappointed with management not getting this IPO happening on time. It can't be that difficult to get an IPO underway, it's happening all the time with many companies, & this one has been planned for a long time now. Just do it, just like why don't they do something about all this Gold they apparently have, why don't they do someting about becoming a producer instead of continually trying to prove to everyone how much they have, and hoping someone will come along and buy the resource & do it for them? If there is plenty there as they have already proved,why don't they just start digging some of it up & generating some cash for their continual exploration? Their neighbours are doing it! By the time they get around to getting it out of the ground Gold will be back to under US$300 & it won't be worth digging it up- wasn't that long ago, 2002!

[Jess9]

Patience ; ) its coming...

[Jess9]

...also time is now on our side - price wise : )

[doon]

Patience ; ) its coming...

Thank you Jess9, sometimes it's good to vent a little frustration. Maybe Friday evening after a bottle of wine is not the best time to write posts! :)
I certainly have no intention of selling down any of my holding, & in fact if/when I have some spare funds would be very tempted to increase at current SP

[JMKC]

patience is certainly a virtue Jess9. People who have been waiting 20 years for this company to deliver on anything must be extremely virtuous.

[Jess9]

20 years is a long time...however, to be fair, we need to "start the clock" from about 8 months ago, when we first heard about the board and senior management changes; as the coy is now a very different prospect (pardon the pun ; )

During 2007/early 2008 Trent clearly articulated how they will add significant shareholder value (look back at his announcements). They have successfuly completed funding for the first stages of this. With money in place, work required to achieve this can now be paid for.

Like anything of significance "good things do take time". While this has been a bit of a mantra on this thead; it is a trueism. Try building a house in a few weeks - even if you do have plans and the funding. Realistically, we need to give Trent and the HGD team 12-24 months from here out.

If we don't see solid tangible progress i.e. achieval of the targeted gold resource upgrade, successful (BHCL) IPO -confirmation of a sizeable cobolt resource, Dunmarra exploration and confirmation of a commercial Uranium deposit, AND strong share price growth reflecting this, then we move on.

I do strongly believe that HGD now has all it needs to achieve what it indicates it can be. This, timed with the current resource super cycle, could produce very strong share price growth (in the 5-20 multi-bagger range).

[BAPP]

I don't think the market is very impressed with the further delays (perceived?) to the BHCL IPO? It was originally planned before end 2007, then early 2008, now later this year. When is 'later'? I am sure we would all like to know. Some investors may regard this delay as being OK considering the current market turmoil, but I believe more investors will be getting tired of waiting & not impressed with delays. I don't think you can try & programme these events for when you think the market will be best, you've just got to set the date & take your chances. I think investors new & old were hopeful the 'new' management team would finally get things done. I am still very positive about medium term prospects with Heritage, but disappointed with management not getting this IPO happening on time. It can't be that difficult to get an IPO underway, it's happening all the time with many companies, & this one has been planned for a long time now. Just do it, just like why don't they do something about all this Gold they apparently have, why don't they do someting about becoming a producer instead of continually trying to prove to everyone how much they have, and hoping someone will come along and buy the resource & do it for them? If there is plenty there as they have already proved,why don't they just start digging some of it up & generating some cash for their continual exploration? Their neighbours are doing it! By the time they get around to getting it out of the ground Gold will be back to under US$300 & it won't be worth digging it up- wasn't that long ago, 2002!

Hi Doon,

I can understand some of your frustration, especially if you have been a long time holder of HGD, however I agree with Jess9 ... be patient.:)

With the cobalt announcement I am sure the management along with the 'underwriters' of the IPO are covering just their 'bases' due to the market volatility. With some added 'working capital' BHCL can still hopefully progress the IPO and gather momentum for the exploration process while the market readjusts.

With regards to 'digging' up the gold at Waihi the process is quite complex and this is one of the reasons it is great to have Trent on board with his extensive mining experience... something which was missing in the previous managements credentials.

Remember it costs a lot of $$$ to start digging and moving ore to 'find and process' every ounce of gold, so you definitely don't want to be 'digging' in the wrong spot. This is one reason why the drilling programs and mapping over the past few years has been so important!

IMO we will witness progress throughout 2008 on the development of the gold, cobalt and uranium projects now that the company has funds available.

Look for positive progress in the quarterly reports (next one due out this week) and don't worry about the day to day fluctuations in the share price at the moment... most of the market is currently running on fear and emotion!

IMO, our time will come.;)

Cheers
BP:)

[Jess9]

Gold in the 920's again, nice. Be interesting to see now when we will break that 1k barrier.

[BAPP]

While the following article (link below) from the Australian is not specifically related to HGD, I thought it had some interesting points regarding the current state of the IPO and resources market.

It also comments on some 'points' recently made on this thread.

http://www.theaustralian.news.com.au/story/0,25197,23117431-18261,00.html

Cheers
BP:)

[etrader]

Doon below is part of an article re lots of IPO's been pulled globally
IPOs pulled after equity markets tumble
5:00AM Tuesday January 29, 2008

Tumbling equity markets prompted 24 companies this month to halt plans for initial public offerings, the most in at least a decade.

So think BHCL have made the right decision, from memory they're very close on having the doc ready but timing is everything.

[doon]

Thanks etrader, any chance of posting a link to the article?

....That's OK now, found it thanks.

[etrader]

http://www.nzherald.co.nz/section/3/story.cfm?c_id=3&objectid=10489255

[BAPP]

Positive article in today's paper about further gold exploration at Waihi, with both Heritage and Newmont highlighted.

Positive news regarding HGD in last few paragraphs with drilling programs instigated at Talisman last week.:)

http://www.stuff.co.nz/waikatotimes/4373569a6415.html

Cheers
BP:)

[Jess9]

Bit of sell pressure over the last day or so, bargain now, or is this to come? May depend a bit on what the Dow does over the next few weeks.

Glad the cap raising went so well and was completed before all this "market turmoil". Come what may HGD can forget this and focus on implementing its 2008 operational plans.

[ScrappyO]

Looks like an Update on the top 20 shareholders? (date not changed) .....Back into the top ten BAP....Looks like SO CO didnt take up their rights?

[BAPP]

Looks like an Update on the top 20 shareholders? (date not changed) .....Back into the top ten BAP....Looks like SO CO didnt take up their rights?

Hi ScrappyO,

Good to see a bigger 'spread' of shareholders investing in the company and a greater number holding 100K plus shares. While SoCO did not take up the rights entitlement, I notice that other organisations 'aligned' to Geoff Hill did.
Interestingly the top 20 now only hold 38% of the company compared to around 50% previously, which is all good IMO.

I've actually purchased a few more shares since the price dropped below 5c, so I'll definitely be hoping for some good news over the next few months.:)(retirement plans;))

I'm looking forward to some news from the current drilling programs, especially news of progress at the Talisman mine. IMO the prospects at the Talisman are very exciting and it's great to see some renewed emphasis in this area:D:D:D. http://www.heritagegold.co.nz/projTalisman.html

There's also interesting news out this week regarding the problems for cobalt producers in the Congo, so lets hope the BHCL IPO can be pushed along once this volatility in the markets settles down and the listing progresses.

I suspect the underwriters and BHCL management will be trying to 'pick' the 'right' time!;)

So I'll just have to be patient in the meantime!:rolleyes:

Cheers
BP:)

From: http://www.formcap.com/s/CobaltNews.asp

Congo deals major blow to miners
Publisher: MINING REPORTER
Author: ANDY HOFFMAN
Government reopens all contracts, saying it wants a bigger slice of profits

Scores of mining companies hoping to tap the billions of dollars worth of mineral riches in the Democratic Republic of the Congo were dealt a major setback yesterday after the government indicated it wanted a bigger slice of their profits and said that all mining contracts would have to be renegotiated.

Congo's vice-minister of mines Victor Kasongo said that a "brief and open" appeal process will be created to help "fast track" the renegotiations.

In an address to a mining conference in South Africa, Mr. Kasongo said that when a government panel was formed last April to study the validity and fairness of 61 mining contracts, it expected it would have to rectify a few agreements.

"We actually found that we had not a single contract that was properly constituted. What was meant to be a minor corrective has turned out to be multiple, major surgery," he said.
-END-

[Oiler]

BAP

I couldn't agree with you more ...lets get on with Talisman given the current price of gold.
The market unfortunately right now is not a good time to IPO for BHCL so lets focus on the gold prospects.
When the time is right the underwriters and BHCL management will go for the IPO as you comment.
My timeframe for retirement is a little shorter than yours :D but I am still going to hang in there and continue to do "mop ups" on the market while there are good opportunities to buy.

Oiler

[BAPP]

While there's been nothing to write about on the HGD or BHCL 'front' over the past few weeks, it has been good to see the cobalt price steadily increasing to US$50/pound. BHP is now quoting US$51/pound. http://cobalt.bhpbilliton.com/

With the increased 'supply' and 'political' problems for miners in the Congo, it seems there is only 'one way' for the cobalt price to go!:)
http://www.formcap.com/s/CobaltNews.asp

I'm trying not to look at or think about the HGD share price too much and keep reminding myself about the long term objectives!;)

Cheers
BP:)

[steve fleming]

While there's been nothing to write about on the HGD or BHCL 'front' over the past few weeks, it has been good to see the cobalt price steadily increasing to US$50/pound. BHP is now quoting US$51/pound. http://cobalt.bhpbilliton.com/

With the increased 'supply' and 'political' problems for miners in the Congo, it seems there is only 'one way' for the cobalt price to go!:)
http://www.formcap.com/s/CobaltNews.asp

I'm trying not to look at or think about the HGD share price too much and keep reminding myself about the long term objectives!;)

Cheers
BP:)

BAP,

I see that "BHCL intends to complete a feasibility study into the development of the Thackaringa Cobalt Project within two years of listing."

Does that surprise you? I thought the project was a lot more advanced than that??

If this is correct, and an FS is two years away, then production of cobalt is still 3 to 4 years away, at least.

cheers

[mistymountain]

Given they're a gold company,what about the gold? All this cobalt talk sounds like a serious red herring given that for surely we should be expecting some cash flows through mining the gold that has been previously explored. I have followed and invested in this company now for quite a few years but would have expected more action by now.

The cobalt seems to a sidetrack...

[BAPP]

BAP,

I see that "BHCL intends to complete a feasibility study into the development of the Thackaringa Cobalt Project within two years of listing."

Does that surprise you? I thought the project was a lot more advanced than that??

If this is correct, and an FS is two years away, then production of cobalt is still 3 to 4 years away, at least.

cheers

Hi Steve,

Yes it's a little disappointing that the Thackaringa project isn't further into it's planned development, however the 'two year' time frame to advance the project to production seems fairly standard.

I have been following the Idaho Cobalt Project ( http://www.idahocobalt.com/s/NewsReleases.asp )
and the development stages from drill testing -feasibility studies - capital raising etc.. have taken a similar time frame.

Off course it would be great to see this development 'pushed' along to production faster and I suspect this may depend on the continued improvement in the cobalt price and the needs of the Asian purchaser who has shown interest in 'securing' the concentrate.

I believe that some of the process time will also be used to establish JORC compliant resource levels also. Previous drilling by other company's many years ago does not meet the current recognised criteria.


Cheers
BP:)

[BAPP]

Given they're a gold company,what about the gold? All this cobalt talk sounds like a serious red herring given that for surely we should be expecting some cash flows through mining the gold that has been previously explored. I have followed and invested in this company now for quite a few years but would have expected more action by now.

The cobalt seems to a sidetrack...

Hi mistymountain,

Having the two projects (gold & cobalt) being developed seems a 'no brainer' to me. IMO HGD management have been wise to diversify over the past few years.

The two projects are being 'driven' by different management personnel and 'to my way of thinking' HGD shareholders might as well have a share of the potential US$1.5 billion revenues that could be generated via this project especially as the gross margins that could be made from cobalt seem to be far better than gold at current pricing levels.

Also I'm confident that the further development of the gold projects at Waihi is not being 'hindered' in anyway by what is happening at BHCL.

Cheers
BP:)

[tobo]

...what about the gold? ...
mistymountain, I too would be concerned at the idea of the cobalt hindering the gold's progess, but, like BAP says, BHCL should not hinder the gold because Heritage just owns one third on BHCL. Trent is actively progressing the Waihi gold prospects.

The BHCL is a sideline being run parallel timing (or not as fast to production, perhaps). The cobalt IPO and JORC events should each create news that ought to give a boost to the HTM/HGD sp independantly of any boosts from Waihi gold development progress.
It's all good.

Tobo. Holding, accumulating.

[Jess9]

Gold shining today: Spot Gold $US 943.60 16.10 1.74% ...as HGD sits.

[COLIN]

Gold shining today: Spot Gold $US 943.60 16.10 1.74% ...as HGD sits.

Yes BAP, why isn't HGD sp moving? I lost patience with this lot ages ago, but have hung onto my investment for some unfathomable reason - even took up the recent rights, in a fit of recklessness. This man Trent is often mentioned as the saviour of the outfit - his time to show some results is fast running out as far as I'm concerned. Let him deliver the goods or get on his bike.
There, I've said it!

[Jess9]

My comment was a bit tongue in cheek ; ) However, Colins vented frustration does voice the obvious - HGD's share price won't move unless we get announcements soon, showing the recent cap raising is being well spent and delivering significant and tangible success i.e. "HGD drilling strikes bonanza grade gold veins which outplayed their 20km drill bit" Now thats what I would call "open to depth!!"

We just need a bit of luck next - and maybe even Colin will be smiling : )

[BAPP]

Yes BAP, why isn't HGD sp moving? I lost patience with this lot ages ago, but have hung onto my investment for some unfathomable reason - even took up the recent rights, in a fit of recklessness. This man Trent is often mentioned as the saviour of the outfit - his time to show some results is fast running out as far as I'm concerned. Let him deliver the goods or get on his bike.
There, I've said it!

Hi Colin,

Whatever decision you make, I hope it turns out to be the right one for you.
Sometimes you have to go with a 'gut feeling', especially in the tough times.

IMO the Talisman & BHCL projects are both exciting and will at some stage provide significant value for shareholders.

The increasing price of both gold and cobalt is great but ultimately we really need the upgraded resource levels to be established along with a planned schedule for production, before we will see a upward trend in the share price.

I believe Trent is the right man for the job, so I will be 'sticking' with my investment (some would call it a punt:)) for a while longer yet... and if I had some spare cash I'd be accumulating at these prices!:D


Cheers
BP:)

[BAPP]

BAP,
I see that "BHCL intends to complete a feasibility study into the development of the Thackaringa Cobalt Project within two years of listing."

Does that surprise you? I thought the project was a lot more advanced than that??

If this is correct, and an FS is two years away, then production of cobalt is still 3 to 4 years away, at least.

cheers

Hi Steve,

This article would 'concur' with your comments.

Cheers
BP

http://www.abc.net.au/rural/sa/content/2006/s2139818.htm

Cobalt good news for local mines
By Daniel Hamilton
Wednesday, 16/01/2008
The little known mineral, cobalt is gaining strong demand in China.

Cobalt is a by product from copper mines. It's used to produce high quality steel and is also being widely used in new hybrid battery powered cars.

Analyst Warwick Grigor from Far East Capital said the demand has led to a corresponding price jump.

"We've had a very strong increase in the demand for cobalt coming out of China [which] corresponds with the requirements of quality of steel and there just hasn't been the supply available and that looks like a situation that will continue for some time," he said.

"So the price has jumped. It's been as low as $10 a pound in recent years, it's up above $40 a pound now and the economics look very strong for cobalt situations."

This is good news for local mining companies who are hoping to cash in on this trend. Broken Hill Cobalt Ltd is one company that is hopeful about the future of mining cobalt. Managing director, Ralph Stagg is optimistic but said there are still hurdles to be faced before mining can begin.

"We need to get a mining lease and approvals for the project, to construct it, then go through actual construction. So we're probably three years away from actually commencing operations, if everything goes smoothly."

[steve fleming]

Hi Steve,

This article would 'concur' with your comments.

Cheers
BP

Hi Bap,

Yes, so i guess the question is if cobalt production is 3-4 years away, how far off is potential gold production at Waihi??

I would say gold production is also 3 -4 years away at a minimum, and more likely 5 to 6 - unless HTM can strike some sort of deal with Newmont to use Newmont's production plant. It would take 2-3 years at least for HGD/HTM to get approval and construst their own ore processing plant.

I think its safe to say that HTM won't ever be mining uranium - not in my lifetime at least.

So therefore production revenues are still a few years away yet.

Cheers

[Jess9]

yeah but...30c plus on a nice gold strike at Waihi; wonder how the drilling is progressing. With explorers u don't need to sell the stuff, just find bags of it!

[Jess9]

From around 3c now - thats a nice amount of return.

[steve fleming]

yeah but...30c plus on a nice gold strike at Waihi; wonder how the drilling is progressing. With explorers u don't need to sell the stuff, just find bags of it!

Appreciate that Jess - I was lucky enough to see my options in FDL go up 25 times (25 bagger) in 2 days,late last year when FDL announced a large Fe target close to FMG.

However, it is still important to know how an explorer is progressing to production, because ultimately its value is a risk adjusted factor of its future cash flows.

On another note, with all the talk of a PEM/CBH merger of at least their Broken Hill operations, it would be interesting to know where the BHCL leases are located, relative to the PEM & CBH land in Broken Hill. Broken Hill of course, was where both BHP & RIO (CRA) had their origins.

[Jess9]

Good point Steve. Successful explorers seem to jump at certain key points. We both identify one of these. With all the activity this year, chances are good for a lift.

[BAPP]

Good point Steve. Successful explorers seem to jump at certain key points. We both identify one of these. With all the activity this year, chances are good for a lift.

Hi Jess9,

IMO the 'snippet' below from the Heritage website outlines what is required to get the share price moving upwards and obviously management are well aware that a resource upgrade at Waihi and production capabilities are next steps for the company to facilitate a 'change in fortunes'.

So as you imply, with the activity the company has planned for this year, there is a realistic chance of a share price 'hike', however it would hinge on some significant increases in resource levels as described below.

I would also suggest that if improved resource levels are established, a varied range of options will become evident for management reasonably quickly.:)

On the 'other hand' the price could just as easily continue to 'slide' if developments are not forthcoming in the next few months with regards to upgrades or progress at BHCL.:o

It's always been a speculative stock and so we may just need an 'ounce or two' of luck to accompany that gold, silver and cobalt. (we should not forget the silver price is looking quite good at the moment :)).

Cheers
BP:)

---------------------------------------------------------------------------------
During 2007/2008 Heritage plans to embark on a comprehensive underground exploration drilling and metallurgical sampling programme with the objective of delineating a resource of 500,000 oz of gold.

Various scenarios to advance development of the Talisman mine asset are being considered and a comprehensive metallurgical sampling programme will be started in 2008 to gain a better understanding of the "ore" characteristics in preparation for developing a pre-feasibility treatment plan.

The Talisman mine is a very exciting asset and we believe that it offers the potential for a world class epithermal gold deposit capable of delivering a 1 million oz gold resource and a 150,000 oz p.a. gold producing mine.
--------------------------------------------------------------------------------

[tobo]

let's see,
500,000 oz inground @ USD900 x 50% margin x half for discounting to PV x half to be conservative = NZ$60m / 208m shares (out of date?) = 29cps
or
basic early explorer calc 10% if IGV = NZ$50m = 24cps
or
(on earnings)
150,000 oz pa @ USD900 x 50% margin x 70% for discounting to PV x half to be conservative = NZ$26m / 208m shares (out of date?) = 12cps EBIT @ ??PE = even better!

ToBo

[tobo]

So it is still quite possible for 2008 oppies to be in the money yet.

?

[Jess9]

If we strike high quality veins and the 500K looks to be a certainty, I think 30c/share is very achievable before September. Drilling for this is now and next quarter (from memory) therefore oppies definitly have a good chance of getting "in the money" - quickly (IMO)

30c-10c strike=20c/oppie (less any purchase cost) could be very lucrative...they also could of course expire worthless. Where's that crystal ball when I need it ; ) Drill and thrill, here we go then!

My guess is the recent weakness has been AUS investors overweight after cap raising and dumping to move on, impatient lot : )

[BAPP]

30c-10c strike=20c/oppie (less any purchase cost) could be very lucrative...they also could of course expire worthless. Where's that crystal ball when I need it ; ) Drill and thrill, here we go then!


Hi Jess9,

Gave my crystal ball away... it wasn't working!

We will need some 'action' fairly soon if the those 'options' are going to prove worthwhile.

Cheers
BP:)

[ScrappyO]

Must be due for another letter from trent.....or something...tick tock tick tock...

[BAPP]

Must be due for another letter from trent.....or something...tick tock tick tock...

Hi ScrappyO

Would prefer him to have the shovels out at Talisman!:), but you're right...
an update letter to shareholders on the website is due!

Cheers
BP:)

[doon]

Hi ScrappyO

Would prefer him to have the shovels out at Talisman!:), but you're right...
an update letter to shareholders on the website is due!

Cheers
BP:)

If and when he has anything to say of any importance, he would have to announce it to NZX & ASX first, not on the web site.
No need to keep checking the web site, first notice of anything which may influence the share price will come from exchange notices.

[JMKC]

I don't want to be a pessimist here, but my best guess is that these options will have the same fate as the last 10 (or however many there have been) series. They will expire worthless.

I don't know the CEO from a bar of soap, but unfortunately good managers can't always save inherently bad companies - be they exploratory miners or financial behemoths.

[Yme]

just like to say i'm holding a massive loss on heads and opy's,,,,

Gold going nuts,,,Cobalt the same and where's this company going ??????

no where,,,and it never will it's nothing but a professional ramp for some.

nothing will bring the market here now,,,,,my loss will be but a tax deduction just like this company.

Yme,,,,
(why me indeed)

[COLIN]

just like to say i'm holding a massive loss on heads and opy's,,,,

Gold going nuts,,,Cobalt the same and where's this company going ??????

no where,,,and it never will it's nothing but a professional ramp for some.

nothing will bring the market here now,,,,,my loss will be but a tax deduction just like this company.

Yme,,,,
(why me indeed)

I sympathise with your feelings, Yme, and they reflect my sentiments as well, only I have hesitated to let fly completely for fear of upsetting BAP - he seems such a nice guy.
I willingly admit that I know little about the practicalities of mining, and I know that consents and what-have-you can take a long time to materialise, but I have to ask the question: "What on earth do the employees of this company actually do all day?" Do they sit around smoking, or poring over maps, or popping their heads outside to see if its still raining, or checking the newspapers to see whether gold or cobalt is up or down in price? The annual reports and other published material don't seem to give much of an idea of what happens each week on the ground - or under the ground, for that matter.

[mistymountain]

Fully agree with Colin's comments after investing in this company for about two years now.

By this stage I would have expected the boys to be applying plasters to those blisters back in the shed.

[mibo]

Gold keeps going up.

http://www.kitco.com/LFgif/au0365nyb.gif

[mibo]

Cobalt keeps going up

http://cobalt.bhpbilliton.com/graphics/wmcChart.jpg

[BAPP]

I sympathise with your feelings, Yme, and they reflect my sentiments as well, only I have hesitated to let fly completely for fear of upsetting BAP - he seems such a nice guy.

Hi Colin and others,

Thanks for the kind words!

Believe me I understand your current feelings and frustrations. It is very demoralising to see you investment and wealth 'shrinking' ... and like several other contributors I'm losing significant $$$(on paper)at the moment also. (probably more than most!:o)

On paper, is the important point! You are only 'losing' if you have to sell at a lower price than you purchased and if you have time on your side it's not such a problem. :(

The rights entitlement late last year was 'primarily' to raise capital for further drilling at Waihi/Talisman in 2008 and my understanding is that this is presently underway and is the main focus for the NZ part of the operation.:)

I'm still backing Trent to 'do the job' so give the guy a chance. We all know the 'lack lustre' history of HGD and we can't change that. Now we need to look forward as if this is a new beginning that in reality started December 2007.

With new capital injected and a renewed focus on getting production underway Trent, IMO has a plan for the company and he is leading it in the right direction.

It's a big call too make, but I've always indicated this is a speculative share and sometimes you have to go with own 'gut' feeling.

I will be patient for a few more months yet... and yes I have plenty of options too, so I have all my fingers crossed.:)

Be brave and remain positive is my motto.

Good luck with your investment decisions whatever they may be!:)

Cheers
BP:)

[doon]

[QUOTE=BAP;187442]Hi Colin and others,

Thanks for the kind words!

Believe me I understand your current feelings and frustrations. It is very demoralising to see you investment and wealth 'shrinking' ... and like several other contributors I'm losing significant $$$(on paper)at the moment also. (probably more than most!:o)

BAP, notice you have increased significantly on the top 20, now #10! Your rights would have taken you up ~461k from Nov position (#20? not sure now), but looks like you've incr 800k, so you must be a buyer of another ~340K heads?
I've never been fortunate enough to be a major holder like you are, but have to assume you may have some info available to you that may not be available to the rest of us? I follow your comments with interest, anticipation & faith (blind?)
Also curious, if my prev recalled info was correct with you at ~ #18-20? with 3,225,000 20Nov07, would appear there has been some major changes in the top 20 recently? If most of the other top 20 had taken up their full rights you would not have jumped up so far in the top 20?

[BAPP]

BAP, notice you have increased significantly on the top 20, now #10! Your rights would have taken you up ~461k from Nov position (#20? not sure now), but looks like you've incr 800k, so you must be a buyer of another ~340K heads?
I've never been fortunate enough to be a major holder like you are, but have to assume you may have some info available to you that may not be available to the rest of us? I follow your comments with interest, anticipation & faith (blind?)
Also curious, if my prev recalled info was correct with you at ~ #18-20? with 3,225,000 20Nov07, would appear there has been some major changes in the top 20 recently? If most of the other top 20 had taken up their full rights you would not have jumped up so far in the top 20?[/QUOTE]

Hi Doon,
I think your numbers are fairly close .. and I did 'pick up' quite a few extra shares through my shortfall application. I have continued to accumulate this year so the 'numbers' and position on the website remain a little out of date.

Unfortunately your comment about having 'info' that is not available to others is an inaccurate assumption. (I wish I did :)).

Maybe my 'blind faith' has led me astray, however I have made my investment assessment of HGD based on the facts that are available to everyone. Most of this information is accessible on the internet or in printed form. (google is a wonderful tool and if you read and comprehend reports carefully the info is there).

I suppose one added advanatge I do have is that I have 'toured' the Talisman mine and have seen the Waihi permit areas 'first hand'.

IMO the Talisman mine is a very exciting project for HGD and it was very encouraging to see the potential it holds.

Of course potential is one thing and creating wealth is another. It is now up to Trent to turn this potential into a goldmine!(excuse the pun!:))

As we know a company generally revolves around the expertise and knowledge of it's people and the quality of it's products. With the new management now established I'm confident Trent will bring a new 'lease of life' to the company.

I for one have been impressed by his enthusiasm, directness, experience and 'can do' attitude. I may be wrong, but at this stage I firmly believe he is the right man to 'lead' HGD.

From the comments I heard I believe the shareholders who attended the last company meeting were all generally impressed.

He has the 'field' experience and he is a 'go getter'! (all good IMO)

So as I said earlier I'm happy to hang in there a while longer.. blind faith ? maybe.. but that's the nature of the game! Big Risk hopefully equates to big rewards.;)

Cheers.
BP:)

[Jess9]

Hi BAP, I'm with you, I think everything is rolling now. The market won't believe it till enough is completed to be announced, but I really think 2008 is HGD's year.

Facts:

1 New financially motivated MD (options etc) to see HGD well through 8c AUS ASAP
2 Capital to locate additional resource in the bank
3 World class gold permits bordering an existing miner, with several significant propsepcts located to drill
4 Drilling now underway (I assume)
5 An IPO to realise BHCL's value to HGD
6 Exciting uranium prospects for the future

Holding shares, oppies (2008 and 09) and happy to accumulate a few more - when I can.

Ohh nearly forgot:

7...

[JMKC]

Jess9, if I recall, you said all the same things when the sp was at 5.5c. I do realise these things do take a while to play out, but surely after all these years you have to say enough is enough.

Happy to be proven wrong as always, but if any offshore player seriously thought there was a great resource there, they would already be sniffing around which at this stage they clearly are not.

There have been warrants, options, partly paids, all of which have resulted in a wad of cash raised which has been dwindled away over time by people who clearly A) have no idea what they are doing and B) don't value shareholders equity as much as they should. Yes I realise there is new management, yes they have a play on cobalt, uranium, gold, and I'm sure the Talisman mine is impressive, but so what? What is the difference between these guys and me setting up a state of the art mine in my 500sq m section and saying I have a gold tenement.

As have said before, for all of you s'holders, I do hope things come off, and given most of you know a lot more than I do about this company, there is definitely a chance it will. All I'm saying is that if you want to play gold/cobalt/uranium, surely there are better plays out there.