Look I don't know Daveironore from a bar of soap but thought I would put all his very informative, knowledgeable and detailed posts in one post to give you an idea of what a GEO thinks what ANDEWA could be:
A must read!
The posts go from when he was looking at the stock to recently.
I hope you don't mind Dave!
1.
Having a look at this one.
Relatively small market cap, with prospective ground and what appears to be good management. My first three ticks.
My caution comes from a few things.
I've never seen such positive language used in a technical report regarding Andewa.Theres no real drilling yet though so theres some risk getting in at this stage I think. It does look like its in an old caldera. And the minerology around it suggests porphry copper/gold. As for the other excellent grades (they are excellent)theres potetnial there but no real drilling form what I have read.Massive sulphides dont have to grade espeacially if its mostly pyrite and even iron oxides or magnetite causing the IP anomoly. Geophysics arent always definitive. I've also done heaps of stream sampling and some of the sampling thay are reporting near Ok Tedi comes from this method. Gold easily accumulates in streams and may accumulate for many years. If its seived even more so. The grades are very high though.
Huge potential, still some risk. (Like all small cap materials)
Im not a chartist but that last spike tells me to leave it alone for a little while and watch. Espeacially if drilling Andewa is not for a while and money needs to be raised to do this.
All just my opinion. No position yet, well done to earlier holders. More research before making a decision.
2.
I've made my decision.
I'm in.
The potetnial of this stock far outweighs the potential for short term drop in share price. There are plenty of other little mining stocks with market caps much much higher than this one with nothing like Andewa or a deal with OK Tedi like they have.
I may loose out in the very short term, but if this target is anything like what they think it is ( and I think it is as a geologist) this stock will really perform.
The MD (and larger team) is very experienced in PNG from what I have read. Many small cap stocks can pretend, but I dont think this team is pretending.
The chairman and MD will be onsite tomorrow for a feast with the locals.
Bring on the drilling and the exposure these results will bring to this company.
3.
Anyone found an image or information on what the IP image looked like for the monster Newcrest and Harmony find in PNG? Increadible drill intercepts there. PNG still prooving to be home to some monster deposits. Lets hope theres something in our 7km2 zone.
4.
Having a look at the most recent IP images from Andewa two things interest me: size (volume) and shape.
The high IP (orange) area (figure 4B) seems to be cut in a very linear fasion. Either this is a very linear structural control or the boundary of the EL? The high IP response would be visible past the survey boundary which may be the EL boundary and they may have cut it on purpose using the modelling program to prevent other people seeing the IP anomaly in other EL's that are free."The chargeability anomaly is NOT closed off to the NE of Ekhos" Does this coincide with the linear boundary seen in the IP image? FNT was quick to snap up the remainder of the area and there was a suggestion the IP anomaly could be even bigger. Even with conservitve figures, IF these IP zones do represent suplhides (highly likely induced polorisation is based on sound science) and IF the areas do grade the size of this deposit could be imense. 7km2 of what is likely sulphide mineralisation, say 1/4 is mineralised to a depth of ??? with a density of 2 tonnes per cubic metre?? Anyone done any conservative mathematics? A few decent intercepts with the drill rig and this could be a real winner with one 100% owned project of their own. The JV stuff is in very prospective ground. Some of those soil lines are increadible in terms of grade and extent. Samples recieved from Andewa suggest Mesothermal gold and the setting is very similar to Lihir, also mesothermal gold.
All of the this however needs to proven with the drill and its assays. But I think this could be very exciting to own for a year or two. Keep holding long term holders the stock still seems pretty tightly held.
5.
I recently posted that Andewa was potentially very similar to Lihir and am now very happy to see an experienced professional who has worked on Lihir doing so also.
I'm a Geo and am very excited ( I cant swear on here but im swearing in my own mind) about these results. Figures reported here are in g/t and align with an increadible IP anomaly.Im used to getting excited about ppm. Western mining had a saying about the three G's before drilling. You had to have all three.
Geology-Check Geophysics-whopping great check Geochemistry-check
Bring on the drill rig!
Great stuff management.
2011-INFLATION and the price of GOLD (and FNT)
6.
I'm happy to take up more with the SPP and with the SPP in general. I?ve still got a few VOR left over after selling most of them and they have sent out the dreaded 'sophisticated investor?s' routine with capital raising through a brokerage well below current share price. I feel a SPP rewards its current holders only to raise money and in this case drill something with real potential. Something interesting I found from the website regarding Paige McNeil (thanks Ubid for holders list)
FNT website: 'Paige is currently an Executive Director of Exploration & Management Consultants Pty Ltd and Quintessential Resources Ltd'
Ms Paige McNeil has over 4 Million shares and so does Exploration & Management Consultants Pty Ltd.
The reality here is you are not buying into drilling ' a green stone belt that has historical workings near it' or a 'shear zone that could host significant mineral potential'
We have:
An IP anomaly that is very large and highly conductive (you cant fake this)
Anomalous soil geochemistry over a very large area that at only first pass looks very encouraging and links well to the IP anomaly. There are also distinct similarities between what is seen (in geology and geochemistry) here and known world class gold deposits.
Governance with real experience, a large family share holding,a real desire for results and, from what it seems, a respect of shareholders.
From what I have read (only my memory here) Peter has been approached by a number of large companies for a JV. This means this stock has not been ignored based on what has been presented already. Large companies keep their eyes out for the next large deposit so they can grow. Based on sound fundamentals this stock is already on their radar. The science presented here so far will spark interest to professionals (like geo resource analysts buying for funds)and with 100% ownership of Andewa many people will be looking to enter this for the long term.
Out of interest is anyone aware of when or if the surrounding lease to Andewa has been granted?
"Much of the gold anomalous area within the Andewa crater has now been adequately defined in my opinion for first pass exploration. However, both the geophysical and the soil + rock geochemical anomalies extend of (off?) the grid in the south-east and south-central sectors, indicating that additional follow up grid based soil sampling and 3D-IP will be eventually required to fully close off the mineralised system within the crater area"
The reality is the mineralisation is likely even larger than it currently stands.
Very exciting. I've never been so impatient for drilling to commence.
7.
In my mind Mr McNeil is entirely convinced hes found something significant.
I've not seen such positive language used in releases such as the recent soil and IP examples. He has significant experience in PNG and as shareholders we are placing an enourmous amount of trust in his judgements.
Did anyone recieve a PNG mining newsletter in the mail? I did and it featured FNT and his wife Paiges new IPO, Quintessential Resources also in PNG. Does this mean she left because her role would no longer be in exploration but resource drilling at Andewa?
She seams to be an exploration professional in logistics. Also remember that FNT and the team have found something significant in the past, around 250Mt, but it was too close to the Kokoda track. This prooves the company is not only talk.
If those IP zones are mineralised its a huge system. It doesn't have to be high grade if large enough, have a look at Intrepid.
8.
Raiders,
If you sell now you will loose money. If you wait until drilling commences you may make some money. You can guarantee your losses now though if that suits your financial position.
I feel they hit the extent of this system in previous drilling. This was high silica breciated veins with excellent grade. Under the surface is something that is conducting electricity at a rate much faster than normal rock. It is most likely sulphide minerals. This zone covers an area of around seven sqaure kilometres.
There is gold in the soils above nearly all of this area. This gold is most likely from the system beneath. The alteration consistent with the mineralisation suggested (epithermal) is like out of an economic geology text book. I would recomend that you wait until drilling commences and the first few holes have assays back before you sell.
9.
I think we have to go back to fundamentals here before we drop our bundles.
Heres a few reasons why I bought please feel free to add to the list.
A geophysical anomaly described by the 30 year veteran consultant as ' I�ve never seen anything like it'. Its 7km2 at high conductivity probably representing metal sulphides. Any proof of this?
This is the natural oxidation of high concentrations of metal sulphides. This is very rare in nature and is usually only seen in mining when it is referred to as acid mine drainage. Concentrations of metal sulphides this high are usually associated with economic grade base and precious metals.
Geochemistry. Sol lines of: 425m of 0.46 g/t gold + 400 ppm copper, 800m of 0.12 g/t gold + 226 ppm copper, 275m of 0.21 g/t gold + 586 ppm copper, 525m of 0.12 g/t gold + 279 ppm copper and 800m of 0.09 g/t gold + 184 ppm copper. These are SOIL grades. Very impressive. The area covered by anomalous gold values in soils is enormous. We should get more trenching and soil assays back soon.
PNG is tough going so expect delays. Our management does have significant experience operating in PNG so we are ahead of most who try their luck in this type of environment. i would still like an update though as we have been delayed a number of times now.
Sentiment of MD. Statments like: 'high probability of ultimately demonstrating a World Class gold and/or gold-copper-molybdenum deposit'
'The 4,530 soil assays have confirmed that a very large scale gold mineralised system is present'
These are huge statements to make and ones I would not say as a professional if I didn't beleive they were true. He also mentioned interest from major mining companies at this early stage. This to me is also very significant.
FNT have found a major deposit in the past in PNG but it was just too close to the Kokoda track. So managment is not provn to be only talk.
We should soon know what we are dealing with after early drilling. A few shiny things in the core photos will do the tick for me. (Any geo types who like this type of thing might like a look at AVK core photos).
Gold is still $1500 an ounce and looks pretty stable around this level. We have enough money to drill the **** out of Andewa with multiple rigs pumping out the core.
All logic goes out the window when the market changes at a macro level.
Nothing has changed with FNT and while it doesn't represent good value technically at 55M, the risk reward ratio has improved because of the science presented so far. It comes down to what you think the probability is that the Geology will link the geophysics and the geochemistry together to produce a major deposit. Most people took a sizable holding when geophysics linked with soils and will hold until drilling reveals what we are dealing with. Current selling is an opportunity in my view.
10.
Thanks for this darkhorse.
We have every right to ask questions as shareholders. Remember these guys get paid regardless of their efforts while shareholders do not. Management are significant shareholders though so there is real incentive for them also.
Exciting times here. A visual interp of the first diomond core at depth will be very important. Minerology particular to the style of mineralisation ( combination and type of minerals present) can easily be determined with a hand lens. Lihir is epithermal with high gold grades and little copper.
If its a porphry system copper will be present with gold but the grades are generally lower and the mineralisation will be different. These sytems are very large however. Mr Mcneil has drilled Lihir himself and should be a very good judge of this in time, and should update us with some core photos if he is confident.
It could be a combination of styles also like Ok Tedi or whatever they have defined Wafi Golpu as.
What im most interested in is proving up the source of this IP image. If there aren't sulphides in the core that are responsible for the IP result then we have to be very cautious. Grade can only be estimated with chemistry or prelimanary with XRF if they choose to.
We still need a number of things to be successful.
Correlation between sulphide mineralisation and the IP image.
Suplhide mineralisation that contains an economic grade and width.
Im happy with three holes all being released at once I think its a sensible idea that way if the first hole is marginal people dont base the whole stock on the results which I think people will do here because of the current expectation.
If yes, the IP image is accurate and has a natural mineralised origin then we can start to assume that this could be an extremely large and valuable deposit.
Remember this IP anomaly if prooved to be mineralised is 7 kilometres square and around 800m deep in parts. Which to me is almost to good to be true and I want proof.( I did buy based on this image coupled with soil data).
At an average grade of around 1-2g/ton which is achievable with an epithermal system like Lihir or even less than 1g/ton and around 1% copper for a porphry system,an estimate on the total contained metals is increadible given the tonnes suggested by the volume of the IP anomaly.
My hopefull guess here is a high sulphidation epithermal gold system above some form of what people call 'telescoped' porphry at depth. So a gold rich cap then some copper at depth. Any other guesses here?
The quarterly report should be an interesting read.
Shouldnt we have more soil and trench data from Andewa soon?
11.
FNT Price at posting:
16.6¢ Sentiment: Buy Disclosure: Held
(20min delay)