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View Full Version : Envirogold (EVG) - Gold, Gold tailings in Latin America


trackers
13-01-2011, 09:30 AM
Surprised there's not a thread on this one, though I see it has been picked in the comp this year.

Below is some facts, these have mostly been recopied from a HC poster who owns 10% of the company and has done a very very good presentation available here: http://www.mediafire.com/?15v5ah3c37dheqo Of course his outlook is extremely positive but cutting through to the facts still tells a pretty good story I think.

Structure:
- $65mil market cap @ 13c. $7mil cash
- 200mil EVGO options (Dec-11 @ 15c) - Currently trading @ 3.7c
- Executive Chairman Brian Johnson (ex chairman of Linc Energy) holds 15%. Top 20 holds >60%

Projects:

Las Lagunas Project -In Construction

- Sulphide gold and silver deposit in Dominican Republic. Agreement with Government to extract minerals and concurrently solve environmental problem of acid leaching.
- Reserves of 621k oz gold (3.8g/t) and 6,378k oz silver (38g/t)
- Target production Q4 2011 at 65k oz gold and 600k oz silver pa for 6.5yrs
- Fully funded through to production. EVG contributed USD $36m and debt component USD $50m
- Lowest cost quartile globally at $334 per oz
- 100% owned by EVG after buy-out of minority JV partner in early December 2010
- Favourable project terms including full repayment of EVG capital and ownership of gold plant at end of project in highly prospective gold district.
- Construction of plant well underway
- Low technical and mining risk. Ore tested extensively with Xstrata and ore on surface in purpose built tailings dam by Dominican Government.

Very low risk near term cashflow... NPV calculated at 0.31 p/share

The Las Lagunas is expected to generate the cashflow needed to fully fund through some of the more prospective projects including:

Azuay Project, Ecuador

Est 1.2-1.5mil oz gold @ 10-12g/t based on extensive historical drilling, reviewed by independant consultants. The resource is not JORC, and a 27,000 metre drilling programme begins this month to JORC up the resource plus hopefully expand it!

High grade hits should be expected and may wake up the market to EVG's promise

San Gerardo Project -Exploration

- 2,200 ha gold mineralised property three times the size of, and adjacent to, Pinglioand Papercorp(Azuay Project)

- Surrounded by JORC mineralisation >15.5m oz. Mineralisation style amenable to open pit mining

- 5 artisanal cooperative surface mines operating currently extract small amounts of high grade gold (5g/t –20g/t) using simple techniques (less than 700 oz pa) under leases that expire in 2014.

- Property optioned for three years by EVG for USD $300,000 with purchase price of USD $4.3m

- Aggressive drilling to commence in conjunction with Azuay Project drilling campaign


Disc: holding some oppies for at least the Jan drilling programme
OutToLunch
13-01-2011, 02:48 PM
Looks like a promising story Trackers, have been reading up on this one after your post this morning and I'm now in via the options. Not without risk, as always, but fundamentally this one looks quite sound compared to a lot of other juniors out there. In particular the relatively low production cost is critical in the face of rising energy costs and a volatile gold price.
trackers
13-01-2011, 03:12 PM
Welcome aboard - Geez looks like you've taken out all the seller lines while you were at it lol! :D

I like the idea of having a stockpile sitting there ready to be processed at low cost, and using that to fund a 1-1.5mil oz project followed by some blue-sky potential projects... Seems like a good plan of attack and the guys in charge are clearly no dummies.

Best of luck :)
OutToLunch
13-01-2011, 04:09 PM
Welcome aboard - Geez looks like you've taken out all the seller lines while you were at it lol! :D


I think someone else did the trick soon afterwards. I sat at 3.8 for a while, opened my wallet, flashed a bit of leg, but no-one came to me (don't blame them really) so I ended up jumping on the nearest offer at 4.

Thanks for the tip, potentially a good one, we'll see how it goes. In return, have a peep at FNT... an interesting story developing there too which I have put a bit of play money on.
trackers
13-01-2011, 08:17 PM
Cheers for that OTL will definitely have a good look at FNT... Interestingly I got a copy of Resource Stocks in the mail today and it came with a massive fold out map of PNG showing all major copper/gold players and their projects (inc FNT). Looks as though they are in good company there. Leonard Shultz is nearish Frieda River (13mil oz gold, 8mil tonnes copper - Xstrata). Mt Andewa nearish Simuku (697k copper - Barrick
OutToLunch
17-01-2011, 12:38 PM
There could be some interesting action in the options (in both directions) now that the head share price has reached the option strike price on solid volume.
OutToLunch
14-02-2011, 02:52 PM
Picked up a few heads at 11c today, if the oppies are well in the money by year's end then these should fund the conversion. Recent price action suggests indifference by the market, which is odd given the imminent drilling of some very prospective ground and the likelihood of first production from Las Lagunas by year's end.

Trackers, FNT have done a runner... did you get some?
trackers
14-02-2011, 03:07 PM
yeah obviously the market is waiting for EVG to jump a few more hurdles before it takes notice... Hopefully the drilling programme that is supposedly underway (or imminent) will bear some fruit in the next month - They're target 1mil oz @ 10g/t based on old samplings, so assuming those samplings are reconfirmed by this drilling we should be away laughing

I did get some FNT! At 14.5c ...Great call there. Alas I offloaded them for a quick profit at 18c sigh.

You're still holding I take it?
OutToLunch
14-02-2011, 04:19 PM
yeah obviously the market is waiting for EVG to jump a few more hurdles before it takes notice... Hopefully the drilling programme that is supposedly underway (or imminent) will bear some fruit in the next month - They're target 1mil oz @ 10g/t based on old samplings, so assuming those samplings are reconfirmed by this drilling we should be away laughing

I did get some FNT! At 14.5c ...Great call there. Alas I offloaded them for a quick profit at 18c sigh.

You're still holding I take it?

Yep, still holding, I averaged up on Friday at 19c on the pullback after that announcement re. the Andewa prospect. Even so, today's moves nearly made me choke on my lunch.

EVG seems to be nobody's friend at the moment which I figure makes it a good time to quietly pick up a stake rather than trying to chase it later on. I gather that the Azuay drilling has been delayed slightly, but not significantly.
OutToLunch
02-03-2011, 11:00 AM
The gold price should be helping this near-term producer, especially with recent confirmation of the financial model for Las Lagunas and the locking in of construction costs. Now we just need them to stick to their schedule (so far, no reason to doubt that) and for the gold price to hold up nicely.. even if it holds at $1000/oz, the project still looks like a nice earner based on production costs below $400/oz. And the silver price is adding a bit of cream on the top.
Joshuatree
31-03-2011, 04:55 PM
Moving back up to 13.5c. Presentaion out ,i encourage all to check it out .BJ picks up another half million shares ,has now over 100 million shares and options. !!!.
OutToLunch
01-04-2011, 04:32 PM
That was an interesting move by BJ, encouraging some of the larger option holders to convert early. It not only reduces the need for capital later on, but demonstrates confidence by BJ and other large investors that 15c/share represents good value. That plus the TSX listing to come (preceded by the signalled placement, perhaps at a premium?) should augur well for the share price (and the opts too).
Joshuatree
07-04-2011, 11:35 PM
EVG is a reccomendation in the latest Diggers and Dealers paid subscription. I havnt sighted it; has any one else?,suffice to say tomorrow will be very interesting.
trackers
08-04-2011, 08:43 AM
EVG is a reccomendation in the latest Diggers and Dealers paid subscription. I havnt sighted it; has any one else?,suffice to say tomorrow will be very interesting.

About time..
OutToLunch
08-04-2011, 09:35 AM
Check out the early bids flooding in. You ripper. Would love to have seen that D&D report. :)
Joshuatree
08-04-2011, 09:50 AM
D &D Key point; buy up to 20c. Im not tempted to take profits as far greater rewards lie ahead.Think this is the first recco for EVG; Im sure there will be more on the way from other publications and brokers. Enjoy, those on board :).
OutToLunch
08-04-2011, 10:01 AM
If you Google "envirogold diggers" you'll find a link to the report near the bottom of the first page of search results, dated April 7.

I'm definitely not selling. :cool:
STRAT
08-04-2011, 04:15 PM
Every time I glance at this thread I see the heading Evil Roys Gold and think of GOR:lol:
evilroyrule
08-04-2011, 04:24 PM
Every time I glance at this thread I see the heading Evil Roys Gold and think of GOR:lol:

funny that. me too! good work lunch date, sadly im not a holder. imagine being privvy to see d and d announcements.
OutToLunch
08-04-2011, 07:48 PM
Every time I glance at this thread I see the heading Evil Roys Gold and think of GOR:lol:

Careful Strat, there's Evil in everything if you look long enough
Joshuatree
19-07-2011, 10:20 PM
Good rise today on decent volume, hope she keeps going.
Joshuatree
25-07-2011, 07:13 PM
New substantial shareholder with 5.4% 29 million shares,7mill bought on 11th July. Shanghai address. Been pushing the price up. Great to have some action here. But i dont want a takeover coming for a while ,so much value ahead.