hold on till April, as that is when the benfits of the Zinc Co...

hold on till April, as that is when the benfits of the Zinc Co spin off will be realised...

Even though this was announced in November, the latest bout of buying has been on the back of the potential of a massive uranium strike at Lake Frome. The company has been re-rated by the market, and many analysts are beginning to look at it closely.

Note, that the quarterly report commented that Heathgate have extended their mining leases right up to the Giralia fenceline... something which i have stated on this site weeks before.... You cannot underestimate the significance of this. If Heathgate are already mining right up to GIR's fenceline, what is to stop them from continuing this into GIR's land? It would make more commercial sense to continue extracting uranium from this area, rather than to set up mining elsewhere (eg at Beverly West which is owned by AGS). Whilst the grades at AGS are spectacular, it is pure business sense to continue mining where you are... making a leap into GIR's land very likely.

With regards to Zinc Co (the zinc spin off), whilst some of the premium for this has been built in, many investors/speculators are adverse to the carry risk on mining stocks, therefore, you will see the flurry of buying on this one when the company announces the record date for entitlement to Zinc Co. Those who are brave (and smarter IMO), will be buying the weakness, in anticipation of acquiring "free" in-specie distributions to Zinc Co, and priority entitlement to the IPO, which in my opinion, will list at 20cents, and open trade around 40cents. Take a look at ARU (Arafura Resources), which I have picked up at 36cents. The company announced their intention to list an uranium spin off (NuPower) many, many months ago, and it has taken only until recently (after the record date announcement) for buyers to come in. The same will happen with Zinc Co.

The capital structure and offer will be very similar to "UTO", with bonus shares almost certain, and a tight register. I absolutely CANNOT WAIT for Zinc Co to get off the ground. It is going to be a ripper.

With respect to news on the company:

The Zinc Co prospectus is with the graphic designers, and the independent geologist report has been finalised. It is all on track and will be lodged to ASIC this month. Listing is due late March / early April. So the action in GIR will begin early to mid-March for buyers with the record date.

An independent metallurgist report will confirm that the Snake Well gold mine is very amenable to a low start up mining operation (hopefully by end 2007). This will be great, as I suspect gold prices to rise beyond $700 in Q2 this year. (note I am long gold futures at the moment).

Drilling will commence at Dawsons, and the company is excited at just having received and interpreted the aero magnetic survey that Falconbridge spent all that money on. GIR has identified some 'very promising' nickel targets off the back of that.

So in a nutshell, the equation is simple.

GIR will rally hard once the Zinc Co structure and is announced, and will be bought hard in the week leading up to record date.

There will be opportunities to trade the stock, buying high 80s / low 90s, and selling back into high 90s again.

My price target of $1.04 was a short term stop. I expect this to be broken, and broken hard.

I am in for the long term, and will be taking up as much Zinc Co as I can get.

cheers,

PT

P.S. I hear that Worley's will be making an announcement in the next couple of weeks. Hypothetically speaking:

I wonder if it will be a $350 debt / $450m capital raising to acquire a Canadian engineering company, making WOR the largest engineering company going around.

I also wonder if a profit increase of 30% (c.f the 15% to 20% guidance announced) is also out of the question???

hmmm.....