One has a resource of 160K ozs at surface (economic) and the other has a resource of 140K.
So what is the story behing this ground?
Its a cracker of a yarn actually and was sourced by JV partner and the major shareholder of GMR, the Royal Group.
This ground was owned by a local who did nothing with it at all for the last 4 years so nothing to report there.
Its the previous owner where the yarn is a ripper. This was owned by Hyundai and it was their big move into resources which ended as a shambles.
They blew $20M and drilled 4,000 holes in big grids without doing enough basic exploration work and no areomagnetics were run at all. (currently being organised by GMR in conjuction with Anglo to share a programs cost).
Anyway, the local managers were operation under a WA group of consultants. They were out of control with a open cheque book. They started reporting back to Hyundai that they were onto a 200 Million ounce discovery which started to crank up the Hyundai share price in itself.
Reality was more like a "potential" 2M ounce (still a big discovery) but nothing like the bullshit getting sent back in glowing reports.
$20M out of pocket and starting to smell the bullshit, Hyandai sent out senior manager/s to investigate things down under.
The result was a rocket up the arse of everyone and the entire team was sacked on the spot and the project shut down. the assets and papers/maps still sat where they were left 4 years ago on site, when GMR arrived.
The crazy part is they were actually close to where GMR reckons the ore body actually runs and in fact the 8 gram hit which was one of the last drill holes drilled is where it lies in the opinion of the new owners. However, there was nobody left standing to follow the this "bullseye" up and there it stayed.
One of the main tasks which GMR has just been completed was to try and put the data base together given this was kept in perth by external consultants who wanted a rediculous price for it. Anyway GMR has now rebuilt the data base and have a good feel for whats up and whats down using fresh eyes.
There is a bit of confidence that one of the two locations has real potential to be 500,000 ounces and the main zone (the area starting to be drilled this month) may be 1m to 2m ounce potential.
The ground was an absolute gift in terms of the acquisition terms and the amount of work done on it.
The areomagnetics to be flown shortly are expected to thow up the significant gold bearing structures running through these properties and the ground just added to it recently.
The jewel in the crown for GMR is the swedish project. This is very advanced and a no brainer, the gold is in situ and it just needs diamond drilling to define the resource. The few holes drilled in the gold bearing zones look really good (only a few and quite shallow) but what should be appreciated is that the grade was capped at 20 g/t (anything higher was just recorded at 20 g/t to maintain appropiate conservatism). However the grade of one vein intercepted over 1 metre was many times the limited allowed in the samples.
GMR actually sourced this property and not the Royal Group. The JV agreement provides that only African based projects need to be offered to the JV first (rather than GMR taking it for just itself) however this project was considered way too large for GMR to tackle by itelf so GMR put it to the JV partners who snapped it up after about 5 minutes consideration (lol).
There other big projects under consideration as well so this will only grow in size.
One of the great stokes of luck for the Royal Group/GMR patnership is that AIM listed companies and Canadian Listed Company are struggling to raise funds and keep projects going. They are letting projects go for a reasonable price now and entering into JV's to get access to capital. Many excellent projects are now available for GMR to look over. Aussie miners are doing it a lot less tough than the overseas listed compamies. Luck us.
GMR Price at posting:
5.5¢ Sentiment: Buy Disclosure: Held
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