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2005

Jan 2005 - Red Flag Warnings

Ignore Red Flag Warnings at your Peril !

This column has been based on observations that I have made in more than 20 years’ in the stockbroking industry and remain amazed that they still occur especially by mining companies raising additional capital. The following comments are my observations, other reasons could be given for what has transpired or appeared to have transpired.

Feb 2005 - Aust Gold Mining Era

The Start of a New Australian Gold Mining Era

At least 12 “new” mines are in the process of being commissioned over the coming year, a situation that we last saw almost 12 years or so ago in the early 1990s. The early 1990s saw the formation/creation of what became significant gold companies such as Delta Gold, Plutonic, Newcrest and Normandy, and the start of some of the major producing mines in the Australasian region.

Mar 2005 - Demand for Metals

China’s almost insatiable demand for metals is expected to last at least another TEN YEARS !

Does anyone remember last years’ slowdown in China when it was all over? We wrote a column on the collapse that occurred in share prices and commodities within the 6-week period from 1 April to 19 May (as shown in Table 1). on page 15 of the June 2004 issue of “Paydirt” along the lines of that we thought it was supposed to be a super cycle with at least 12 months to go.

Apr 2005 - JORC Resources

Recognising Potential JORC Resources

The re-opening of a number of old mining areas, especially in Victoria, has provoked a debate over the classification of potential JORC resources. A new missive is reputedly expected to be announced supposedly clarifying the issue, because currently it has become “very murky”.

Jun 2005 - CHINA Infras. Stats

CHINA – Infrastructure Stats and a 9% Lower Tax Rate from January 2007

There are many quoted statistics about China, however, I heard a number of different ones that I was unaware of relating to its infrastructure and transport, plus the fact that China’s company tax rates were expected to fall by 9% from the headline 33% down to 24% in January 2007, all at a Sydney “ibc Engaging China 2005” Conference on 8-9 June 2005 at which I received a guest pass.

Jul 2005 - Exploration in 3D

Exploration Advances into the 3rd Dimension

The use of 3 Dimensional IP by Kingsgate at its Chatree gold mine in Thailand represents a quantum leap in exploration techniques. The recent intersection announced on 7 July 2005 by Kingsgate of 12m at 30g/t gold (~1oz/t Au) and 318g/t silver (~10oz/t Ag) was in mineralisation that was parallel to and 200m further east from its existing A East (AE) orebody in Chatree North and was a direct result of the new technology.

Aug 2005 - Kambalda’s Miners

Kambalda’s Nickel Miners look forward to BHPB relaxing the WMR Concentrator’s costs and specifications

The takeover of Western Mining by BHP Billiton (with the WMC Nickel Division being renamed Nickel West) and Consolidated Minerals of Reliance Mining (renamed Reliance Nickel) appears to have opened the way for the old Western Mining Resources’ (WMR’s) Nickel Concentrator at Kambalda to reduce its costs and relax its specifications on what the concentrator accepts.

Sep 2005 - Nickel at Kambalda

Finding More Nickel at Kambalda

The purchase of WMC’s old nickel mines at Kambalda by a number of junior mining companies has resulted in a number of listed companies with lives greater than 7 years (based on minable resources) such as at Independence’s (IGOs) Long mine, Consolidated Minerals’ (CSMs) Beta Hunt, and Mincor’s (MCRs) Widgiemooltha operations, all of which we (ERA) have visited this year (to August 2005). It should be noted that this column has been based on observations which may not conform to some geological theories.

Oct 2005 - Lanfranchi

Lanfranchi – the sleeping giant ?

In the last issue of Paydirt (October 2005, Issue 122) this column discussed the progress that has been made by the junior nickel miners on the Kambalda and Widgiemooltha nickel domes. Since then we (ERA) have visited Sally Malay’s (SMY’s) 75% owned (Donegal Resources owns the remaining 25%) Lanfranchi Nickel Mines (LNM).

Nov 2005 - CSM, WMR, BHPB

Is CSM going to rattle WMR/BHPB’s Cage?

In the last two issues of Paydirt (October and November 2005, Issues 122 and 123) this column has discussed the progress that has been made by the junior nickel miners on the Kambalda, Widgiemooltha and Lanfranchi nickel domes. Since then we (ERA) have visited Titan Resource’s prospects and approaching nickel and gold mines at North Widgiemooltha, completing the picture with some surprising outcomes.

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