AS1 0.00% 1.1¢ asara resources limited

the problem is that its obvious GMR will need to raise capital...

  1. 5,853 Posts.
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    the problem is that its obvious GMR will need to raise capital soon. Therefore buyers will stay out of GMR until such time as that happens. So the SP could drop to 3.5c before they have to raise and then they get 3c a share.
    They also need to keep some good news ahead in order to attract Sophs.
    just bite the bullet and raise the money and progress the gold project and hopefully sell the zinc project and keep funding the gold project until a decent price.

    This is from the Far East Capital newsletter FYI

    Golden Rim offers excellent value at these prices I hadn’t looked much at Golden Rim Resources (GMR) in recent years, though previously it had always come across as a responsible junior looking for gold orebodies in Burkina Faso. Management has always been sound, if somewhat less than flamboyant, achieving good levels of discovery success. Of all the gold stocks I saw on the exploration front, Golden Rim looks a stand-out in the value stakes. Capitalised at only $8m, it looks like it could move much higher once the results of the current round of drilling are available (and assuming they deliver to expectations). A short while back GMR was distracted by the purchase of the Paguanta zinc project in Chile, paying US$1.5m and spending $8m. Even though this has a resource of 2.4 Mt at 5% Zn, 1.4% PB, 88 gpt Ag and 0.3 gpt Au (8% ZnEq), it hasn’t been embraced by the market. Hence, GMR is going back to what it knows best - gold in Burkina Faso. Within the 100%-owned Kouri gold project is the Banouassi prospect, which comprises 20 parallel gold zones in a strike length exceeding 3 km. It has a stated JORC Exploration Target of 500-610,000 oz at a grade of 1.8-2.2 gpt, to a depth of 70m. A 19,000m drilling program is in progress, with a view to facilitating a maiden mineral resource calculation by April 2018. Previous drilling has tested 1.8 km of strike, but the current program will extend that strike to 3.5 km and test down to depths of 120-140m. Extrapolating the numbers leads to a figure of more than 1 Moz of gold. Metallurgical test work has been very positive with 95.5% gold recovery over all ore types, with 36% recovery from gravity circuits. Oxidation levels extend to 20-30m depths, but some of the best recovery rates have actually been from the primary mineralisation. The company expects it will have a large tonnage, low grade open pittable orebody within a 2 km wide major shear zone. Golden Rim looks great value at these prices with a rerating to come from the release of the maiden resource in a couple of months time. The Chilean zinc project is probably worth as much as the current market capitalisation in a smart trade sale, meaning there is almost no value in the share price for the Burkina gold project. We should expect a capital raising in the not to distant future though, as cash levels were down to $1.1m as at 31/12/17. This would provide investors with a good entry level,
 
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