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  1. #1
    Advanced Member trackers's Avatar
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    Lightbulb West Wits Mining (WWI)

    Came up on a scan for low-cap companies with high NTA..

    These guys have just flicked off one of their projects to Mintails Limited for a combination of share buy back, and cash.

    A quick back of the envelope suggests to me that post-transaction they will have:

    - 88mil shares on issue @ 5.5c = $4.85mil
    - $5.5mil in cash
    - Additional royalties (which can be cashed in for additional $1.5m)
    - JORC resource of 307,000oz (at EV / Resource oz of $12.26/oz as per quarterly = $3,763,820)
    - Interests in several permits.


    Any thoughts (particular about resource worth)?

  2. #2
    Legend shasta's Avatar
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    Quote Originally Posted by trackers View Post
    Came up on a scan for low-cap companies with high NTA..

    These guys have just flicked off one of their projects to Mintails Limited for a combination of share buy back, and cash.

    A quick back of the envelope suggests to me that post-transaction they will have:

    - 88mil shares on issue @ 5.5c = $4.85mil
    - $5.5mil in cash
    - Additional royalties (which can be cashed in for additional $1.5m)
    - JORC resource of 307,000oz (at EV / Resource oz of $12.26/oz as per quarterly = $3,763,820)
    - Interests in several permits.


    Any thoughts (particular about resource worth)?
    I've had WWI on my <$20m market cap watchlist for a while now, when the share price was around 10c

    I always liked it's Uranium potential over it's gold, but the surging gold price & lagging Uranium price has seen them change focus

    How much of that 307,000/oz is inferred/indicated etc?
    Disc holding - ENR, GAL, LYC, PRX, SES

  3. #3
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    Indicated: 41k
    Inferred: 266k
    = 307k

    Which is Emerald East plus Radiant and Marquise

    Source: http://www.stocknessmonster.com/news...E=ASX&N=336835

  4. #4
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    Looking at this share from the FA side:

    West Wits Mining (WWI) is in the process of selling interests in some of their SA gold permits to Mintails (new deal, $9 mill in total) and $2mill is already held in escrow, due to be in their accounts any day. They have an MCap under $10mill, haven't done too well up until now. But mid last year they obtained an interest in a 40Ha mining permit in the West of New Guinea, called Derewo.

    They also have EPs around this area, which is part of Indonesia now. It's steep, rainforest area, but the locals have been doing artisanal mining for gold nuggets for the last few years, and have done quite well with crude methods - some wood, spades, rope and diesel-powered water pumps.

    WWI are ready to fly in there with the new-found capital and hydraulically sluice a few spots like they did in Otago years ago, for cashflow, while trying to find the nearby hardrock source of this abundant gold on their own permit. This process is under way. The other research I did can be summed up in the picture below. Outstanding resource there. The gold has not moved far, it's from a high-energy source.

    http://www.google.co.nz/url?sa=t&rct...x894I2rjvky2iA
    Last edited by elZorro; 24-04-2012 at 06:11 PM.

  5. #5
    FEAR n GREED JBmurc's Avatar
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    https://westwitsmining.com/

    Well Worth a study over the weekend, spoke with the MD on Friday on a few points I needed cleared up before BUYing more (which I did and plan to buy more) ....personal if they get a full mining license over all their SA permit which sounds very likely they will explode in value and most likely be taking over by one of the nearby Major Gold producers.. 14mill market value Vs 3.67moz 2012 JORC Gold resource 2g/t cutoff !!!

    Now the 1997 JORC put the Gold resource at some 12.8MOz 4.6g/t --so not going take much to continue to increase 2012 JORC requirements to a much higher level ... only the only day they added 428koz to the 2012 JORC code

    https://wcsecure.weblink.com.au/pdf/WWI/01999613.pdf

    Michael Quinert, Chairman commented: “The Board is pleased to announce the continued growth of our
    Witwatersrand Basin Project through the solid work of our geology team. The Board’s goal is to continue exploration
    work to further grow WWI’s resource and obtain the two applied for mining permits in the second half of 2018. A solid
    recovery in gold production from the Kimberley Central Open Pit for May-June should underpin the necessary cash flow
    to continue funding project development as WWI prepares to scale up production over the balance of the year.”

    Now one must remember under South African law any SA asset must be have a major holding by the Black empowerment entity ..In WWI case they have a very good group that fully funds their share of the operation (I understand it's around 32%)
    People don't have ideas, ideas have people

  6. #6
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    I bought in about Xmas time. Maybe a better bet than ntl. What say you jbmurc

  7. #7
    FEAR n GREED JBmurc's Avatar
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    Default WWI 10x bagger in the making

    Quote Originally Posted by cammo View Post
    I bought in about Xmas time. Maybe a better bet than ntl. What say you jbmurc
    I don't follow NTL so can't really comment but I'd be surprised if it has anywhere the upside...

    Without a doubt, my biggest worries with WWI which was holding me back from having a bigger holding (And I sure many others as well)

    Andrew Tunks WWI MD was really brilliant filling me in on the finer details making the picture much clearer


    #1- was the country risk (Holding NKP had a fair share of SA Govt BS but really more so Zijin / BEE fault)

    >> Most comes down to location -which is good as WWI has nil tribal issues up on the high vault ... pure GOLDFields in all directions
    WWI did have issues with the last BEE pre A.T> but awhile ago had a much better BEE (also a major S/H) in WWI and unlike the last BEE they had actually funds their share 32% of the SA West wits Gold Projects..this BEE is held around 50/50 one part by a well respected Black business manager ( I think in the banking sector?) and the other 50ish held by a major legal firm in SA


    #2-lower grades from monthly toll treatment - 1.7g/t(going from last ann.) sounds like the reef WWI are mining has a lower grade cover and is too much an issue from the angle of the reef to only remove the higher 3g/t reef>> but here the kicking WWI 3.5moz+ has a 2g/t cutoff rating so how much extra gold is there below the 2g/t ?? another 1moz ??

    #3-Toll treatment? going forward plan>> Well with three Gold mills all in close trucking distance WWI has many options but the best would be at the Large Sibanye-Stillwater Gold plant that has 300kt per month capicity yet SS is only using just over 100kt per month
    of lower grade Gold ore .. so plenty of free plant capacity .....

    But like I was thinking(and the WWI MD agrees with me) Once we get the mining license 1H19 we should command a much higher Gold resource as 2007 JORC is brougt upto 2012 standard more infill drilling etc 4-5moz? then If we go too the likes of SS with potential 100,000ton of 3g/t ore per month (say 80koz GOLD) .. they will just turn around and Take us out for 200mill ...

    WWI current market value 13mill personal a 10 bagger will do me
    Last edited by JBmurc; 22-07-2018 at 10:39 PM.
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  8. #8
    FEAR n GREED JBmurc's Avatar
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    http://miningmirror.co.za/2018/10/01...-once-thrived/

    Well worth the read .... Holding a large amount of WWI Very high risk- High reward operation
    People don't have ideas, ideas have people

  9. #9
    FEAR n GREED JBmurc's Avatar
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    Cool 10x-20x bagger on assets just need the cash to develop Gold in RAND/AUD record highs

    been talking with the CEO during the day via Linkedin ..

    . And it still just beggars belief why WWI isn't being priced at substantially higher levels-https://westwitsmining.com/

    Sounds like not only will we be getting ML/MR over whole project 5-7months out but a major increase in 2012 JORC Gold resource from the K9A reef starting within next couple of months ... so should see resource heading towards 5moz 3g/t+ (still only halfway to 2003 JORC)

    then with RIO looking like they have a major Copper discovery on their hands right next door to one of WWI Pilbara permits that alone could be worth much more than WWI insanely low 8.5mill market value ...

    https://wcsecure.weblink.com.au/pdf/WWI/02057509.pdf

    https://www.mining-journal.com/coppe...scovery-by-rio

    https://thewest.com.au/business/spin...ng-b881030223z

    DISC-Certainly Buying more will hopefully be in the top 35 holders by tomorrow
    People don't have ideas, ideas have people

  10. #10
    FEAR n GREED JBmurc's Avatar
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    Going from talking with Mgmt in FEB should be only days away from recieveing minor mining licenses >> and don't we need it with the SP bumping along at record lows for a Gold company with this size resource
    People don't have ideas, ideas have people

  11. #11
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    Quote Originally Posted by JBmurc View Post
    Going from talking with Mgmt in FEB should be only days away from recieveing minor mining licenses >> and don't we need it with the SP bumping along at record lows for a Gold company with this size resource
    It's shut your eyes and run through the fire time.

    The nervous are sweating. The Nellies jumping. Only the brave and crazy get/stay on board the train now.

    I'm with crazy...

    What can go wrong aye? Looks bloody cheap but SA is not Australia and the powers that be are crazier than me...

  12. #12
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    Quote Originally Posted by JBmurc View Post
    been talking with the CEO during the day via Linkedin ..

    . And it still just beggars belief why WWI isn't being priced at substantially higher levels-https://westwitsmining.com/

    Sounds like not only will we be getting ML/MR over whole project 5-7months out but a major increase in 2012 JORC Gold resource from the K9A reef starting within next couple of months ... so should see resource heading towards 5moz 3g/t+ (still only halfway to 2003 JORC)

    then with RIO looking like they have a major Copper discovery on their hands right next door to one of WWI Pilbara permits that alone could be worth much more than WWI insanely low 8.5mill market value ...

    https://wcsecure.weblink.com.au/pdf/WWI/02057509.pdf

    https://www.mining-journal.com/coppe...scovery-by-rio

    https://thewest.com.au/business/spin...ng-b881030223z

    DISC-Certainly Buying more will hopefully be in the top 35 holders by tomorrow
    JBM, why don't you buy into an NZ project at Island Block with 25,000oz in an old Clutha River channel? Less risk, and you get to touch the gold stuff....

  13. #13
    FEAR n GREED JBmurc's Avatar
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    Quote Originally Posted by Aotea View Post
    JBM, why don't you buy into an NZ project at Island Block with 25,000oz in an old Clutha River channel? Less risk, and you get to touch the gold stuff....
    Because I ain't got the spare $$$,$$$ needed to setup and run a project like that .. banks aren't all that keen to lend on Gold operations
    People don't have ideas, ideas have people

  14. #14
    FEAR n GREED JBmurc's Avatar
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    Default 10-20x upside -limited downside IMHO

    Gold Breaking record highs in ZAR and AUD and we have little old WWI with a EV resource oz of less than $2 .... NST purchased the alaskan POGO project @ $85oz

    All is on track for WWI to recieve Mining License and Mining Right over the whole 3g/t -2012 JORC 3.6moz+ (10moz+ 03 JORC) within the next 3-4 months

    Historically WWI area has produced 41moz gold @ 5g/t (here in NZ we see OGC produce @ 1.3g/t in otago)

    we have tax loss selling keeping the lid on the SP and the ongoing FEAR of South African politics keeping market interest next to nil

    Now @ 5.5mill market value I see limited downside as even shell ASX companies can command 3mill marketcap .. WWI do have some promising Pilbara projects one close to new RIO operations

    I wouldn't recommend going large into WWI as SA risks are always high ,,, but when you compare to peers and look through the finer details of ownership you have the biggest Gold producer Sibanye-Stillwater(Up 54% YOY) in SA has connections to WWI through DRD Gold (WWI largest holder)

    you have WWI doing the work to keep the DMR on side to reward the company with ML/MR the legal rep WWI have employed has a very good record at getting ML/MR (its 100% last few years)

    Many issues in SA is around black ownership (BEE) ... 26% was the rule but talk of a rise to 30% hurt the sector WWI already has a supportive BEE with 33.4% holding in the Project (so a great project for the SA DMR to promote to successive operations)

    For sure WWI will have to raise more capital and I see this being yet another pressure on the price as a cash holding of est $400k must be mostly going to be used up pre ML/MR ... so I don't see much work on expanding the 03 JORC resources to 12 JORC or Pilbara work till WWI has MR/ML and can secure capital at much better rates

    recent presentation .... more info here
    https://westwitsmining.com/wp-conten...June-2019_.pdf

    Disc JBMurc holding WWI av. 1.8c (planning to buy more before the months out)
    Last edited by JBmurc; 25-06-2019 at 10:07 AM.
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  15. #15
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    Did u manage to get some more WWi....I tried to get some at .005 but they didn't drop that low. Now at .9. I looked at the last quarter and they had sales of about 2.4 mill and it cost 2.5 mill to produce. That can't be good, can it? I'm looking at spx at the moment. Any views?

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