Gold Juniors

[Daytr]

Hey guys, will try & write something up over the weekend. A bit tired after being out fishing all day. Happy Friday.

[Bobcat.]

I'm not convinced re SOC.

Aside from MYG, I also like the look of Chalice Gold Mines (CHN). FP recommended them as a continued Hold last week, and I got a technical (TA) buy signal yesterday at 16c, so I bought some. Then late this afternoon they published their annual report, and I like what I see. Lots of cash, NTA is way above market price, and I like the way they are going about their acquistions (with more to come).

Others' thoughts on their management and track record?

[Daytr]

I think SOC is highly speculative & as such I have kept my position small. The pay-off imo opinion COULD be huge. Basically this is a new type of orebody for Australia & I must admit IU have been impressed by the way the management have gone about things to date & their success rate at an early stage. The potential & I emphasize potential is they are on to something that could be 5-6 million ounces & possibly 5 times that. I know that sounds ridiculous, but its possible. They metallurgy could be a problem, although there has ben major advances in treating refractory ore in the last 10 years & if they do get anywhere near the size they hope for it probably wont matter if recoveries aren't quite as good as the industry standard.

Re MYG, I have always liked this & have tried to get it financed in the past before the gold bust. What I like the most is the grade & also that its open at depth. The management I think should of & could of got financed earlier, however they were trying to avoid dilution by not raising equity. This was admirable, but it cost them as I think they would have got the debt deal done if they had raised $30M when the share price was around 10c. Anyway with the gold price heading in the right direction there is a good chance this will get financed early as the work has already been done, BFS & DFS. I also like their little iron ore play, its probably not a company maker but could earn them something like $10-12M a year.

Question for you guys. How do you add a note to the bottom of your posts that will always appear? Something like 'do your own research' I put out a lot of tips etc, so bets protect myself I suppose. Any ideas?

[Bobcat.]

Alright, I'm persuaded to have a closer look at SOC. Technically, their chart looks good for a Buy (especially with the POG's upward trendline now established)...and if as Datyr suggests there is massive upside potential, it could well be worth a speculative play.

Initially (compared with MYG) I wasn't so impressed with the grade that SOC are promising but their indicative resource size is impressive.

A bit more research and I may well take a bite at this cherry but their financing will be a factor.

Have you chaps looked into CHN? That's another play that I'm researching and so far I like what I see. They are about to acquire Coventry Resources whose Canadian Cameron Gold field has a grade of 2.24 g/t on contained gold of over 1.5m oz, and West Cadatree field with 6.3m intercepts graded at 3.7 g/t.

From their Zara sale, CHN is highly cashed up ($56.6m) with funds not just for this acquisition but also for exploration work on its Mogoraib North tenament with very good prospects. I've bought into it already but interested in hearing others' opinion on this digger before deciding whether or not to invest more. Opinions?

Question for you guys. How do you add a note to the bottom of your posts that will always appear? Something like 'do your own research' I put out a lot of tips etc, so bets protect myself I suppose. Any ideas?

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[Daytr]

Thanks BC. Will take a look at CHN & get back. I remember meeting with Coventry at Diggers & Dealers a few years back & they were in demand then. Mind you gold was at $1650 or something at the time.

I might look at going to D&G next year. Its the best mining conference in Australia & good fun to as long as you are broad minded. Its in August in Kalgoorlie & its not cheap, but great place to meet a lot of the mining management. Let me know if anyone is interested as maybe we could look at an NZ investor contingent going together. We would get more attention that way. I know the organisers & can arrange good accommodation which is like hens teeth.

[JBmurc]

one of SOC issues will be cash wise ....if they could get a buyer for PMR they could free up 20-30mill ....most likely CR soon enough

-End of the day SOC is valued at 31mill

-JORC resource at Hobbs Pipe 1 intrusion is 650koz Au @ 1.24g/t – recent drilling includes 886m @ 1.2g/t; Conceptual Exploration Target of 3.2-4.6Moz Au......not valued at much at all by the market?

[Daytr]

Hey JB, I think SOC is reasonably valued compared to a lot of others. However I couldn't name one other explorer who has the possibility of making a 6M ounce discovery let alone multiples of that.

[JBmurc]

Hey JB, I think SOC is reasonably valued compared to a lot of others. However I couldn't name one other explorer who has the possibility of making a 6M ounce discovery let alone multiples of that.

SOC news out---Glad I doubled my holding to 94k ords manys thanks Daytr for bringing SOC to the ST team ....never thought I'd buy into the exploration PM sector but thought I'd look over the stocks on the thread >>> SOC IMHO looks like it could 10-20 bagger from here

Sovereign Gold Company Limited (ASX: SOC), through subsidiary Gossan Hill Gold Limited, is pleased to announce the discovery of high grade gold mineralisation outside of the Hobbs 1 Pipe, providing further encouragement that the Mt Adrah district will potentially host gold mineralisation additional to the current resource.
Drill hole GHD009 included an intercept of 10m @ 17.7g/t Au from 506m from a zone of narrow quartz veins, intense sulphide veining and alteration within skarn-altered rocks adjacent to the Hobbs Pipe 1 (true width not known).
This intercept included 2m @ 28.4g/t Au from 506m and 2m @ 59.4g/t Au from 514m.

this is only the start of the castor results talk round this could well be NCM Cadia BIG 10's moz

from HC-Castor is around 40 times the size of Hobbs. They drilled this from the top of Hobbs Pipe 1, several hundred meters away and still managed to intersect the pipe at depth and find a high grade zone ! Have to be extremely lucky to hit the 'juiciest' part of the deposit on the first hole and from such a distance.

Today's results back up the anecdotal evidence the old timers mentioned that Castor was previously shallow mined up on the hill at several ozs/t gold.

[Daytr]

No worries JB. I doubled up this morning. You in BC? Still a chance to sit on the bid at 21c. I think this will really start to go once word spreads.

[Daytr]

Hey JB, one thing to be weary of having a big position, is that SOC is extremely illiquid. I am very bullish on SOC so may never be a problem, but just something to be aware of. I agree re 10-20 bagger its quite possible & with results like today & they continue getting more probable. Remember the old Probables vs Possible All Black trails? The Possibles always won! haha