Robin Bromby | September 02, 2009 Article from: The Australian.
THE market might be down more than 90 points (as this is written) but it looks as if investors are still bullish when it comes to the mining sector.
Several exploration stocks have put on gains, against the market trend, and no more so today than Sandfire Resources. This is the outfit that got the market excited two months ago with some spectacular drill hits at its Doolgunna project, north of Meekatharra.
Today they’ve done it again. Sandfire shares, which had been falling with the market, reversed direction in a spectacular fashion after the company reported assays from five more diamond drill holes. The best intersections were 42m at 6.6 per cent copper (and 2.4 grams/tonne gold) and 40.7m at 4.6 per cent copper (and 3g/t gold).
The point here is not only the grades, which are impressive, but the widths of the intersections. Those critics who say Sandfire may have only a small area of high grade mineralisation could be excused for now having some doubts.
There is still a long way to go, but Doolgunna is certainly setting the share price on fire again.
Meanwhile, Goldsearch turns out to be the party that has moved in as a cornerstone investor at emerging Victorian gold producer, Morning Star Gold.
Goldsearch has bought 5 million options and immediately exercised them, giving MCO a $500,000 cash injection which will be used to part-pay for the treatment mill at the Morning Star mine.
Goldsearch has another gold interest in Victoria, at Mt Wellington 40km north of MCO’s mine, and will no doubt be hoping that its cash outlay will result in the same impressive returns as it made after investing in Independence Group and Rex Minerals.
(In Pure Speculation in Monday’s edition of The Australian, it was stated that an unnamed company had bought 500,000 options, which would meant a commitment of just $50,000. The error was due to a misunderstanding during a telephone conversation. We stand corrected.)
Elsewhere on the gold front, Burkino Faso continues to be rewarding country for Gryphon Minerals. Its latest drill assays from the Banfora project include 18m at 3.72 grams/tonne gold, 19m at 2.43g/t and 5m at 5.2g/t.
The writer implies no investment recommendation and this report contains material that is speculative in nature. Investors should seek professional investment advice.
PURE SPECULATION 31/8/09
" SOMEONE is very keen to get a foothold in Morning Star Gold (MCO), a company we have been following. Large numbers of options have been going through, and one party has bought at least $500,000 worth of options at prices up to 12.5c, when the exercise price is 10c (and the shares last traded at 21c). We hear that the buyer is a listed company, with its own gold interests in Victoria, and it plans to convert the options very soon. This is good news for the MCO people, as they need some more money for buying additional plant now that mining has started in the historic deep underground mine. Other option holders are also being encouraged to convert and pay up ".
ZNO Price at posting:
2.3¢ Sentiment: None Disclosure: Not Held
