After recent gains by both stocks it would appear these high quality juniors are worth a second look...
QUARTERLY REPORT FOR THE PERIOD ENDING 30 JUNE 2002
Chirano Gold Proiect Ghana - Red Back 95%
HIGHLIGHTS Indicated and Inferred Resources Increased 23% to 26.77 million tonnes – grading 2.2g/t for 1.87 million ounces.
Pit optimisation ounces increased 49% to 15.76 million tonnes grading 2.3g/t for 1.19 million contained ounces.
77% of pit optimlsed ounces lie within a central 3km long pit complex.
Pit optimisation studies indicate Chirano to produce 140,000 ounces per annum over a 7.5 year mine life from from a 2MT per annum processing plant.
US$97.6M pre-capital undiscounted cash flow.
Bankable Feasibility Study to cost $3.6M and completed December 2002.
BFS engineering and processing design contract awarded to Lycopodium.
Metallurgical test work, mine design plus geotechnical and infrastructure sterilization in progress.
Acid Rock Drainage test work reveals Chirano waste to be non-acid forming.
$5.7M capital raising completed.
$2.5M Feasibility Finance Facility to Macquarie Bank Limited retired.
Redback debt free and unhedged.
Macquarie’s equity in Red Back increases to 20%.
Byro nickel-copper project in Western Australia farmed out.
Non binding indicative offer from Ashanti Goldfields Company Limited to rationalize the Chirano and Bibiani properties rejected.
Hmmmm… 93 million shares on issue, a couple million options, 2 million cash in the bank, tightly held, impressive shareholder list, directors buying big time all the time resisting takeover pressure looking for the big payday. If this stock doesn’t go places even allowing for the location then I haven’t got a clue.
