I read that piece as well and there are some question marks as...

First 185 Last

Share
Profile

Follow
Von Rico

4,672 Posts.

1095

14/11/17

22:27

Post #: 28792178
Share

Originally posted by Silent-Bubbles ↑

found this bit of interesting read floating about.... hope it isn't history repeating itself.....

In 1970, the Mount Venn tenements were held by Tin Creek Mining Corporation who had not explored the site. A company called Tasminex bought a 60% interest in the lease, and began drilling. On January 27 1970, some of the directors from Tin Creek and Tasminex visited the site, and one of the directors panned some ore from a drill-hole. He was convinced he saw nickel, although the geologist present dismissed this idea. Nevertheless, the announcement that nickel had been found at Mount Venn was relayed back to company headquarters. It was the height of the nickel boom, with the pandemonium surrounding the Poseidon nickel discovery at Windarra near Laverton. It was a boom that was about to go bust.

The director carelessly told a business journalist that they had found nickel at Mount Venn which COULD be as big as the discovery at Poseidon. The shares in Tasminex rocketed from $3 to $96. The directors promptly sold their shares at a huge profit. After the discovery the report was false, the share price collapsed, a stockbroker went bankrupt as a result, and many shareholders had their fingers burnt. The resulting public outrage led the Tasmanian Government to launch an investigation, but no action was ever taken against the directors. Meanwhile the Mt Venn prospect was abandoned and forgotten about as a bad memory.

Thirty years later a company called Helix Resources took over the tenement and did some exploring. It is assumed nothing economic was discovered, as the area fails to get a mention (2013) on their website.

The prospect is 125 kilometres east of Laverton in the Cosmo Newbery Aboriginal Reserve, in the remote western Gibson Desert. A journalist who visited the site stated : '(Mt Venn can be) described as singularly unimpressive. It is a low lying hill covered with sand, small scuffy trees and saltbush. The arid soil is strewn with small lumps of rock. A few kangaroos and emus somehow eke out a living from the rough scrub'.

Expand

I read that piece as well and there are some question marks as to whether they are in fact the same leases. Its also a long time ago and technology has come a long way since then.

Regardless, there is a one big difference between them and us ... GBR has actually discovered good grades of cu/ni/co whereas Tasminex found nothing and its price went up on rumour alone.

It happens all the time ... Previous lease holders drill in the wrong spot and give up and walk away and eventually someone comes along and drills in the right place and strikes it rich.

Its early days, this is elephant country and a discovery such as this could be enormous hence the interest and there are very few shares to go around. I think only about 25m unrestricted shares available for sale.

GBR Price at posting: 48.5¢ Sentiment: None Disclosure: Held
4 Upvote

0 Great analysis

Reply