Cove Resources Limited (CVE & Long dated CVEO) worth a second look

[Corporate]

Cove listed on the ASX in January and announced drill results yesterday..

15m @ 1.34g/t including 1m @ 8.01g/t!
22m @ 2.04g/t including 2m @ 7.86g/t!
8m @ 1.37g/t
3m @ 6.93g/t
2m @ 5.51g/t

and the biggest...57m @ 1.23g/t including 3m @ 7.24g/t!

There are more results to come and this is only from one prospect.

The prospectus says that they have enough cash to fund the drilling program for the next couple of years.

All their permits are adjacent to existing mining operations held by majors with milling facilities and infrastructure all in close proximity.

Get a load of this!!!!

Shares on issue 32m
Current price 29c
Market cap $9.5m
Cash $3.5m
EV $6m

This is cheap and very much under the radar.

I only spent about 45 minutes researching this one and bought this afternoon.

Also the long dated CVEO options are worth a look. Exercise price 25c in January 2014.

DYOR

[shasta]

Cove listed on the ASX in January and announced drill results yesterday..

15m @ 1.34g/t including 1m @ 8.01g/t!
22m @ 2.04g/t including 2m @ 7.86g/t!
8m @ 1.37g/t
3m @ 6.93g/t
2m @ 5.51g/t

and the biggest...57m @ 1.23g/t including 3m @ 7.24g/t!

There are more results to come and this is only from one prospect.

The prospectus says that they have enough cash to fund the drilling program for the next couple of years.

All their permits are adjacent to existing mining operations held by majors with milling facilities and infrastructure all in close proximity.

Get a load of this!!!!

Shares on issue 32m
Current price 29c
Market cap $9.5m
Cash $3.5m
EV $6m

This is cheap and very much under the radar.

I only spent about 45 minutes researching this one and bought this afternoon.

Also the long dated CVEO options are worth a look. Exercise price 25c in January 2014.

DYOR

The grades aren't spectacular, but not bad.

I've been ruling out of my Low EV list, pure gold plays - but i'll have a look, especially if they have a JV partner co-funding?

$3.5m cash for 2 years drilling doesnt sound like much? Will review the last years financials & see what the admin burn rate is

I think they will need to raise more cash before the options money comes in...

Interesting though

[Corporate]

Shasta, you're right that the grades aren't spectacular. But I think the exciting thing is that this is the start of Cove's first drilling campaign and they have hit some wide gold intercepts.

[shasta]

Shasta, you're right that the grades aren't spectacular. But I think the exciting thing is that this is the start of Cove's first drilling campaign and they have hit some wide gold intercepts.

Just as well its a new beast, the legal fees in last years accounts were more than the revenue & the Directors/Consultants extracted a hefty $10m + for themselves

[Corporate]

Just as well its a new beast, the legal fees in last years accounts were more than the revenue & the Directors/Consultants extracted a hefty $10m + for themselves

Haha don't you mean $10k? Not something to worry about.

[shasta]

Haha don't you mean $10k? Not something to worry about.

Oops, yeah kinda overlooked that, just assumed it was $M's

[Corporate]

activity building on Cove!

[Corporate]

Heads now up 25% since my original post. Options up 100%!

[Toulouse - Luzern]

On the DB site Security views today top increase so far 25.4% today:

Cove Resou CVE.ASX 7.5 25.4% 37 $564,555 1,595,249

[Corporate]

On the DB site Security views today top increase so far 25.4% today:

Cove Resou CVE.ASX 7.5 25.4% 37 $564,555 1,595,249

I exited at 36c today...25% in 3 trading days!

[trackers]

I exited at 36c today...25% in 3 trading days!

Nicely done... Nearly bought some oppies the other day but didn't pull the trigger (this, along with GLF/OB have been my Feb disappointments!~)

[Corporate]

damn sold too early..now 40c

[buns]

I exited at 36c today...25% in 3 trading days!

Why?

You have just given us some good FA, and explained how this is undervalued and then locked in 25%/bailed after 3 days? Hm I suppose I shouldn't challenge this, but instead ask the question - Do you think the best way to exert vmax value from these small caps is to trade them constantly untill they hit fair value?

I thought on a stock like this, with long dated options you would hold for a tad longer, at least right up the the rumors pre drill stage. These stocks swing wildly, and seem to be manipulated every now and then.. Hmm, 3 days trades just dosent make sense.

[Corporate]

Hey buns,

Good question. At a macro level I don't particularly like the feel of the market right now and have been liquidating a bunch of stocks. The unrest in the middle east is quite scary.

The fact that the options were long dated didn't mean anything to me because I was holding heads.

Also, I am only just beginning to invest in small caps so it's all a part of the learning process.

[Corporate]

Now sitting at 33c, and I'm happy to have taken profits at 36c.

I'm looking for an entry into MOX... shasta's favourite!

[buns]

My methods are still quite rusty.. I read your tip Corporate, then followed up with a quick research session and bought a small packet of these. With the intention of coming back and digging deeper on it. Well I'm now fast tracking this research as CVE took a huge fall today.

The heads down 11% the options down 30%! I have the options......

I feel this will retrace.

[Corporate]

My methods are still quite rusty.. I read your tip Corporate, then followed up with a quick research session and bought a small packet of these. With the intention of coming back and digging deeper on it. Well I'm now fast tracking this research as CVE took a huge fall today.

The heads down 11% the options down 30%! I have the options......

I feel this will retrace.

I'm looking to buy back in shortly. Another one to look at is MKO...which also took a hit today!

[Corporate]

MKO wow im surprised you would still take on so much risk corporate you have been in this business a while now to know better?

Could you please elaborate?

I'm only looking at MKO at this stage. They've had some good hits recently.

[Zarbu n Lilith]

deleted as was off Topic

[buns]

I feel this will retrace.

and....Boom up 40% on a down day