ORS-jnr gold explorer/producer

[JBmurc]

100mill shares 71% held by the top20

has some 7mill in cash market value 14mill

plans to start production soon of 30koz per ann low cost has 180koz JORC in place with much upside

news imminent on production..

http://www.asx.com.au/asxpdf/20111109/pdf/422dl6t5p4h7gm.pdf
recent presentation



not holding any yet but do like the look of it ..GOLD looking strong

[drillfix]

Looks interesting JB,

Although, who are the management with this mob? What previous success have they had if any?

When reading their presentation I get worried a bit when I read Low Risk as that always tends to act like Sucker Magnet, of which people believe that. Does this listed company not know that the whole of the stock market is one big Risk ? LOL

Back to other thoughts, not many shares, located in Australia primarily Victoria, but why are they also drilling in WA? Would have thought they would be saving dosh to see how any production ramping goes.

By looking at their yearly trading volumes its a easy to enter but potentially a tough exit as there is no liquidity.

Will add them to a watchlist amongst a few other gold stocks and see how they go~!

Thnx for sharing~!

[JBmurc]

Yeah have only just come across them a good one to add to the spec gold watchlist ,will likely look into further if I have some spare funds currently Gold/silver investment funds are all invested in CVR,PXG,CCU

[moimoi]

JB,

Just quietly you could have a gander at the "parent" of this one. The Maldon processing plant now owned by ORS was spun out of AGS to get it away from argumentative U assets.

AGS is the largest holder and as such you are effectively backing its largest shareholder Mr Ian Gandel.

AGS's chart looks particularly ravishing....with, in my opinion, a make or break announcement expected on or before 10 Feb 2012.

Cheers
Moi.

[steve fleming]

First gold pour this week.

Expected to be cash flow positive next quarter.

Owns it own processing plant / no debt.

Market cap = $18mil

Tony Locantro's top pick.

[soulman]

ORS definitely ticking all the boxes for my investment. Some of these juniors with small market cap and a fully own processing plant include ORS, BNR, SXG.

[JBmurc]

yes well worth keeping a eye on ....wish my micro cap CVR with it's own plant/production would update the market ....

[JBmurc]

Once again a ORS shareholder would like to increase my holding at this silly levels .... 1.2c-2.9mill Mktcap--- great buying when you think they have the shares and opts to get upwards of 50% control of AYC -23m Mktcap

Negatives for ORS is mgmt(thinking of continued exploration and not returning AYC shares to S/Hs) and 1mill debt ..but likely a major T/O target with the large AYC position >>>>>>



Resources Editor
Melbourne
Billionaires have sleepless nights worrying about wealth preservation, poor things.
“Spread the risk” is the best advice for them. And that is exactly what two of our own have done, albeit in a very small way, but in Victorian gold no less.
First there is Gina Rinehart bankrolling a joint venture with ASX-listed Catalyst (CYL) in the hunt for a “new Bendigo’’ goldfield at the Four Eagles gold project area, 70km north of the “old’’ 22 million ounce Bendigo. Some decent hits of late suggest the joint venture is on to something.
But today’s interest is in another iron ore mogul, Fortescue’s Andrew “Twiggy’’ Forrest. His family interests have pumped $2m into ASX-listed A1 Consolidated Gold (AYC) through a convertible note, giving him a grip on 14 per cent of the company.
AYC’s namesake mine is all of two hours’ drive from Melbourne in northeastern Victoria’s high country, and is in the process of being returned to production, adding to a history that stretches back to the 1860s.
An adviser to Twiggy on his personal mining interests, geologist John Clout, ran his seasoned eyes over A1 ahead of the investment and it has to be assumed that AYC’s revitalisation plans got his tick of approval.
Twiggy was introduced to the investment opportunity by the broker Patersons, which coincidentally yesterday issued a research note on the company, rating the stock as a speculative “buy’’ with a target price of 7c. It was trading yesterday at 5.3c.
Patersons reckons that over the next 12 to 24 months, AYC has the potential to emerge as a 50,000-60,000 ounce gold producer, underpinned by high-grade ore from A1 being trucked 320km to Maldon in Victoria’s golden triangle for treatment in an existing treatment plant, one picked up by AYC from Ian Gandel’s Octaganol Resources (ORS) in a scrip deal which makes Octaganol the biggest AYC shareholder with a 38 per cent stake.
AYC’s initial plans are a more modest and more doable 30,000 ounces a year from the A1 alone — the Union Hill mine at Maldon could kick in later — at an all-in sustaining cost of less than $850 an ounce.
If that were happening now, AYC would be bagging a margin of $670 an ounce. Spread that across 30,000 annual ounces, and you’re talking about $20m, which is kind of interesting for a company valued yesterday at about $24m. The key to it all is the high-grade and good mining-shaped stockwork-type mineralisation at the A1, rather than the narrow quartz vein stuff normally associated with Victorian gold.
The man in charge of making it all happen is AYC managing director Dennis Clark, a mining contractor for the last 25 years. He has 40 years of underground mining experience, including time as mine manager at the A1 under previous owners.
He owns about 10 per cent of AYC and runs a tight ship. AYC’s head office is split between the mine site and his NSW home, and typical of a mining contractor’s approach, the on-hold music playing on the mine site’s phone is a Johann Strauss waltz because no one knows how to change it to something else, and because no one is going to be paid for advice on it either.
Patersons in its research note says AYC is now in a proof-of-concept phase. “However, with this proof expected over the next three months, the focus will become how much cash the company might generate and what it might do with it,’’ Patersons said.
On that score, the first gold bar produced from a trial parcel of A1 ore at the Maldon treatment plant is not far off. Twiggy, down to his last $2 billion because of the iron ore price collapse, and what now passes for a Victorian gold industry, will be cheering Clark and AYC on.

[NZSilver]

JB still in CVR - the stock that showed so much potential but buckled (my worst investment since I began investing 5 years ago, followed by rakon) - I'm surprised the company still exists...

[Daytr]

These Victorian gold deposits are quite notorious in regards metallurgy. The high grade is quite often compelling, however quite often the ore is refractory and the ore-bodies narrow vein or nuggety and difficult to follow. I'm not sure where this companies assets fall in this regard? Any idea JB?

[JBmurc]

JB still in CVR - the stock that showed so much potential but buckled (my worst investment since I began investing 5 years ago, followed by rakon) - I'm surprised the company still exists...

With the amount of debt I'm also surprised they haven't folded ...I got out some time ago should have done it right after re-listing would have saved many more dollars ..but yes always had great potential but just far too many issues mostly coming from the old mgmt that was then a battle for the new guys to resolve along with issues with the KAZ bank

[JBmurc]

These Victorian gold deposits are quite notorious in regards metallurgy. The high grade is quite often compelling, however quite often the ore is refractory and the ore-bodies narrow vein or nuggety and difficult to follow. I'm not sure where this companies assets fall in this regard? Any idea JB?

Yes can be but does sound like Dennis Clarke MD + Mine manager at AYC has managed and operated several narrow vein gold projects ..
patersons report valuation 7c could well be surpassed 10c+etc if the AYC guys can produce higher grades in turn lowering costs even lower than the low costs est.

For me buying ORS is just a cheaper entry into AYC with some upside if ORS exploration can find some decent grades..

[JBmurc]

Octagonal Resources (ASX:ORS) has arranged a new loan arrangement intended to help the developer diversify.

A company related to Octagonal chairman Ian Gandel has agreed to loan Octagonal A$300,000 with no fees payable and interest levied by the bank to be reimbursed by the lender.

The agreement builds on other recent Octagonal fundraisers, including a $1 million bank standby credit facility announced in March and the sale of the Maldon gold operation in June to A1 Consolidated Gold (ASX:AYC) for a compensation package valued at $9.16 million.

Octagonal’s moves to cash up its strategic diversification investigations coincide with the company’s appointment of Perth-based professional services provider LinQ Corporate Pty Ltd as corporate advisor.

Octagonal hinted in early August that it could be open to transitioning away from the mining industry when it confirmed the sale of Maldon and flagged LinQ’s engagement to identify new opportunities “in both the resources and non-resources sectors.”

Sale of Maldon has resulted in Octagonal becoming the largest shareholder in A1, with a 38% holding.

ORS maintains a 100% stake in Western Australia’s Hogan’s project, where the company is exploring for gold, copper and nickel sulphide deposits in an unexplored area only 70 kilometres southeast of Kalgoorlie and only 20 kilometres east of the world-class St Ives and Kambalda mining areas.

St Ives is estimated to hold some 12 million ounces of gold, while Kambalda has been identified as bearing some 1.4 million tonnes of nickel metal.

[JBmurc]

I see I'm the 19th biggest holder LOL .. from the ann. report

Depth looking very open to 2c on the right ann.

happy to continue to hold

[JBmurc]

Good surge again today to 1.6c ... looking forward to the next major ann .. from both AYC - ORS ...going to take-off on the right news

[penn]

Good on ya (JB)
or should that be (78)?
;)

[JBmurc]

Good on ya (JB)
or should that be (78)?
;)

Yes the same guy ...use to have the same username but got in some trouble with SSN mgmt so was forced to change by HC mgmt...

[Wolf]

Looking good :t_up:

[JBmurc]

Yes Only matter of time before ORS announces a return of AYC shares/opts to ORS holders ..personal I hope they keep ORS focus on Gold as it's become a very hot sector to be involved with currently ,,like MOX went up 42% on ann. of new Gold lease deal ...

What I like with ORS is your really getting two companies for the price of one

For a start ORS did plan to distribute it's 38% position of AYC(plus opts) I agree it's only a matter of time till we do get the shares/opts( of course AYC forced a voluntarily escrowed until the 25th of December....

So for every 3 ORS shares we would get 2 AYC shares and .8 of AYCO ( AYC- 4.2c AYCO - 1.8c)

so for ORS x 3 = 4.5c we get 8.2c worth of AYC plus free opt say 1.4c in value = 9.6c (this of course is only if we get 100% ...and the ORS dec opts don't get converted.)


ORS does have 78m 2c options expiring 11dec ....(wouldn't take care of the 1mill debt loan and still leave some 500k in the kitty)


So that's of course the main reason one buys ORS currently ...but then also we have the following activities to occur in the short term

Hogan's Project, Western Australia
(Octagonal Resources (WA) Pty Ltd - 100% owned)
 Diamond drilling at the Burns Prospect.
 Aircore drilling at the Quimby Prospect.
 Review of the nickel sulphide exploration potential at the Lisa’s Dune Prospect.
 Review of the nickel sulphide exploration potential at the Yalca Hill Prospect.

now what value would ORS be without AYC shares/opts ? 1mill ?

[JBmurc]

The Directors of Octagonal Resources Limited (ASX: ORS) (“Octagonal” or
“Company”) wish to announce that the Company has today received an
offer from Gandel Metals Pty Ltd (“Gandel Metals”), the Company’s
Chairman Ian Gandel, and associated parties (collectively “Gandel
Shareholders”) to privatise the Company.
Gandel Shareholders hold 102,207,200 ordinary Octagonal shares (41.12%
of total shares issued) and 70,276,000 unlisted options exercisable at 2.0
cents and expiring on 11 December 2015.
Gandel Metals has also provided loan funds to Octagonal totalling $1.3
million that are repayable by 1 December 2015.
Key Terms of the Offer
(1) The Gandel Shareholders proposal is that the shareholders of Octagonal
be asked to approve a Selective Capital Reduction whereby the shares
in Octagonal held by non-Gandel Shareholders be cancelled in return for
consideration comprising:
 A cash payment of $0.0055 per Octagonal share, together with
 Two (2) shares in A1 Consolidated Gold Limited (“A1 Gold”) (ASX
Ticker Code: AYC) for every five (5) Octagonal shares held.
The Gandel Shareholders are willing to enter into an agreement with
Octagonal to provide funding for the cash component of the
consideration, ideally by way of exercise of sufficient unlisted Octagonal
options held by Abbotsleigh Proprietary Limited (“Abbotsleigh”) (an
associated party).
The total consideration is the equivalent to 2.11 cents per share
(based on an A1 Gold share price of 3.9 cents per share, being the
closing price on the day prior to the offer being received).


--------------------------------------------------------------------------------------------

I work out that we non "Gandel" shareholders will get 58mill of the AYC shares(plus cash)(2.3mill + 319k cash)total =2.62mill


leaving round

111mill AYC + 56.5mill to go to Gandel as well as the W.A permits ..

Now using the same Value 4c for AYC 1.8c AYCO = 5.5mill+W.A permits ..... take off the 1mill loan so 4.5mill

then as Gandel will pay us 319k in cash bonus =4.18mill est

Now I don't see any value in Gandels ORS opts as ex price will be higher than current SP

So Basically Gandel 41.1% gets $4.18mill value Plus ORS permits free bonus!!!

And us majority holders 58.9% get $2.62mill

pretty poor really when you breakin down >>> should be a 50/50 break IMHO

we should be getting all the AYCO as well !!!!! extra 1mill to make it 100% fair IMHO

All IMHO could be wrong with my numbers

[Wolf]

Definitely a low ball offer.
Not sure what I will do yet.

[JBmurc]

very low ball firesell value puts ORS @ 2.8c because of the AYC/AYCO holdings so yes we are not getting a fair deal at all...this is pure sly deal to stiff S/H's out of their ownership of ORS