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This Co caught my attention last August after their Announcement reflecting on their work in & around Lake Roe, and I was extremely impressed, considering it was somewhere between a “Brownfield & Greenfield” project. I think (ASX:BRB) tend to call it a Greenfield area, doesn’t matter.More importantly, Breaker Resources is one of the largest tenement holders in the Eastern Goldfields Superterrane, and the Eastern Goldfields accounts for approximately 75% of Australia's gold production. In addition, the Company has a 100% interest in those tenements ! Then I noticed that there had only been a handful of posts on TS over the last few years; why the lack of attention I’m thinking. Is there something wrong here; I say again to myself? Lo & Behold, I look last night and there I see that “kegtwo” has made a post since that outstanding Ann of August last year. It must have been that second keg that alluded him to BRB ! LOL Then I notice, three of the longest standing and most informative Posters on Top Stocks, are already here watching over (ASX:BRB) !!!! Namely, MP/Bladerunner, Recklyn & Perdant. Yes, “Mr Perdant”, the Author of the most decorated post on noadvertising of all time, and that post is a great beginners guide to understanding mineral exploration and the subsequent Announcements on the ASX.Sorry Top Stockers, back to (ASX:BRB) the real focus here and Lake Roe; the Discovery that is now considered by Management, and so far reflected by results, as a large Au discovery, shallow and open in all directions.A little research with explanations will reveal the positives (and or negatives) and future of this Co … and their Lake Roe project and beyond. I have my opinions based on my experience in mineral exploration, but, it is a Personal Opinion Only, not to be taken as financial advice, but from my observations of this Co, I conclude that the +’s far outweigh the –‘s moving forward.IMO, Lake Roe has been de-risked.If we break it down and look seriously at the pros & cons of this new discovery in reality, at least in the short term, and those who are managing (ASX:BRB), then it becomes evident that this discovery is worthy of serious consideration.1. Lake Roe Exploration2. Corporate(a)Management(b)Financials1. Lake Roe ExplorationAfter reading/studying the ASX Announcement of the first round of exploration in & around the Lake Roe project, what can one say? So much so, that not even I would be able to fit it all into 10 posts on noadvertising; it is the most impressive discovery (at the present stage of exploration) that I have ever seen in the history of WA gold exploration, in a Greenfield Region, without doubt.I am not associated with this Co, I do not know the Directors or their Exploration Team, I am simply a new shareholder as a result of Lake Roe.For those Members who have not been following Junior Explorers of such low MarCap lately, which I understand in these tough times, I am writing this post purely as some enlightenment of one such company, (ASX:BRB). If you feel that any part of this post is not accurate, then please follow up with a post and I will do my best and consider your opinions and re-assess my thoughts. Two heads are always better then one.The latest chart reveals as to what has happened at Lake Roe, I will insert that chart, after all, a picture tells a thousand words, and not even I could explain the current situation better than the chart below.More importantly, is their chart below of the proposed RC (Reverse Circulation) drill holes now underway, and, look at the “Pairing” of a few of those proposed RC holes! Yes, they are done for a reason.You will notice in the above Plan that there are numerous black diamonds, they are the proposed (RC) drill holes. But look how close a few of them are. (ASX:BRB) have called this “Pairing”, drilling two holes reasonably close, anything from <50m to >100m with RC which has depth limitations, is to gain some idea as to the dip and strike or the underlying nature of this ground as to perhaps its continuity. I have noticed that in the south that they have paired two sets of holes. The information gained will be most fascinating.One does not need to look too hard to see that the first round of AC reconnaissance drilling has intersected significant gold mineralisation, with a best intersection of 4m at 7.38g/t in a zone of 20m at 1.93g/t, in two separate zones up to 5km long. That is an exceptional outcome, the potential for high tonnage over a strike length of 5km. There is no need to elaborate on what has been found so far, and I’m sure that the current round of RC drilling which is probably close to, if not already completed, will speak for itself. I believe that there is awesome potential in this ground to have a substantial impact on this company.With the work already completed, and over a 5km strike length, it is not hard to conjure up thoughts that the project is mimicking in these early stages, that of another great gold mine in the region, the big Fimiston open pit in Kalgoorlie. After all, the super pit in Kal is mined at an average grade of 2.5g/t, that is extremely low compared to the already known results at Lake Roe. From memory, I think Tom Sanders has already suggested in a previous report, that because of the shallow nature & value of the gold at Lake Roe, that it is a “free grab”, or words of that nature Yes I know, that is putting the cart before the horse, but the framework is possibly there for such an outcome. Get ready for the fireworks should any of the RC drilling reveal primary mineralisation with some nice averages !2. Corporate(a)ManagementI would think that anyone who has been watching this Co seriously for any length of time would be totally familiar with Management by now, both Exec & Non Exec. Tom Sanders is holding the position of Exec- Chair, and to me, he is managing the Co, No MD’s, No CEO’s. Why do you need those other “hangeron” managers for such a small corporate structure? No need ! A+ to Tom.Have a look at Tom’s history & experience, see what it tells you. He has a strong history of both Au & Ni exploration in WA including published papers, they are worth reading. His work is pretty enlightening.In addition, he is an experienced explorer, who knows how to crawl before you walk, spending exploration money according to well founded strategies & outcomes.Have a look at the number of Board Meetings from the Annual Report 2015. Only four (4) meetings. Why does any Co need a Board Meeting on a monthly basis, and get paid $4K/Director/Meeting. Yeh, I can answer that, because a lot of Co Directors are nothing more then “professional Directors” who make their total living from meetings. Not Tom !No bureaucratic management, not here in (ASX:BRB) Tom is a realistic Manager, one who lives in the real world. Quarterly Meetings only required. After all, who needs meetings to plan the next four weeks of work? Not (ASX:BRB) !!!! Too easy.The recent Announcements by management & the board are of a confident nature, a true expression of an experienced geological manager. For example, the recent Ann’s have stated “Large New Gold System Confirmed”. Now who would say that in their wildest dreams without having tangible evidence? I believe that current results substantiate that statement to an extremely high degree.Just to top off on what realistic management attempts to achieve in these hard times, just look beyond the Balance Sheet. If this is not a reflection of responsible management, with the best interests of Shareholders at stake, have a look at this in the Annual Report…………The Basic Profit / (Loss) for FY2014 from $1.68 / Share to $1.30 / Share (2015), which in FY2014 was calculated on a Volume Weighted Average of Shares Issued at 66.8M, not at the current total of 82.7M. A real big + Plus for Management, doing their very best to avoid dilution !If that’s not enough to convince anyone that this Co is run by smart and realistic management, then perhaps have a look at the Balance Sheet and see that the amount of revenue that was spent this last year on REAL EXPLORATION and the ADMIINISTRATIVE costs, the ratio. Very responsible !!Exploration: $1.2MAdministration: $389KWhat other Junior Explorer can boast that in these hard times? Please tell me of one if you know. Look at the Co’s trying to survive today, spending 4 X on Admin and Directors Fees than Exploration !!!!! LOL No, not (ASX:BRB). That’s how you make new discoveries !(b)Financials2012 Total Shares 58.6M Top 20 Holders held 85.14% of all Shares2016 Total Shares 82.7M (29.1.2016)(I do not know the Top 20 Shareholders as at February 2016)Cash at Bank $0.723M (February 2016)Non-Current Liabilities of $905K to be spent on all Titles held in WA over the next couple of years, should (ASX:BRB) decide to hold onto all of them until their expiry date. I don’t think they will now, Lake Roe may change their focus. (IMO)However, in light of Lake Roe, should they decide to sell some of these Titles, which have had significant & serious $’s spent on them, then there are considerable Assets here in terms of $’s. It would be hard to put a price on those assets under present economic conditions, but it would be significant.So it is IMO that (ASX:BRB) are well positioned cash wise and to forge hard ahead at Lake Roe, nothing will stop them now !But, of course we all know that any major Diamond Drilling program at Lake Roe will cost money, and yes it will, but how else does one prove up any Resource/Reserve, none other than drilling the living suitcase out of it?Some of you are probably thinking that a CR may be on the immediate agenda in light of the potential costs that may be incurred at Lake Roe. I don’t think that will come in a hurry in light of recent findings on the Lake, and the potential of the Mar Cap increasing dramatically after the awaited RC Drilling results from the Lake, I believe will send the MarCap spiralling.Why do I think that, no CR just yet or the immediate future? Have a look at the current Options, their Expiry Date & Cost. I feel the Table below will tell you a lot in light of the present SP / MarCap………….Look at the Options Table above, and you will notice that the Heads have already passed the Exercise Price for 6,000,000 oppies, with the Heads currently running between 27.5c – 30c, and still have 4 months to run !So how will those Oppies look after a couple more rounds of drilling at Lake Roe? IMO, very attractive and ready for conversion. So if those Oppies are converted to Heads, using a Weighted Average Exercise Price, then there is the potential here of raising $1.5M + by the end of June this year. How handy would that be !The only scenario to that not happening is perhaps highlighted in the chart below, which reveals that those Oppies are held mostly by Management. Will their exploration work and the results be sufficient for them to dig deep? But, on the positive side, why would Management have issued those oppies to at those Exercise Prices, if they didn’t think that those prices could not be achieved? This will be a real acid test, fascinating !But wait, theres more. LOL The other 2,000,000 Oppies with a Weighted Average Exercise Price of 49c by 31 December this year also have the potential (considering where Lake Roe is currently at) to have a very high chance for Conversion. That would put another $0.9M in the Bank. So is there any room for a bloke like Mark Creasy to get in on the action here just yet? No, unless of course he starts buying On Market, then the fireworks could really go off with a Bang. LOLSo on the basis of all of the above, and being an eternal optimist, I feel (ASX:BRB) are well positioned and run by very good Management. Time will tell. I look forward to your thoughts and opinions on the above.This is why I hold, and for the long haul.Considering that the current gold price is only about $100AUD per ounce less than the all-time record price reached in 2011, as a result of the current weaker US dollar exchange rate, pushing our price up to $1,700AUD per ounce, augers well for this Explorer in taking advantage of the current situation.Overall Gold production in Australia totalled 285 tonnes in 2015, a 12 year high, the highest annual production since 2003, as the $AUD weakened. As a result, I believe that numerous mothballed gold operations will be brought back into production as a result of the above, sooner than later.So best wishes to all (ASX:BRB) holders, your time is near, as I believe that the gold sector has become extremely attractive to Investors in 2016.[/table]
BRB Price at posting:
27.5¢ Sentiment: Buy Disclosure: Held
More importantly, is their chart below of the proposed RC (Reverse Circulation) drill holes now underway, and, look at the “Pairing” of a few of those proposed RC holes! Yes, they are done for a reason.
You will notice in the above Plan that there are numerous black diamonds, they are the proposed (RC) drill holes. But look how close a few of them are. (ASX:BRB) have called this “Pairing”, drilling two holes reasonably close, anything from <50m to >100m with RC which has depth limitations, is to gain some idea as to the dip and strike or the underlying nature of this ground as to perhaps its continuity. I have noticed that in the south that they have paired two sets of holes. The information gained will be most fascinating.One does not need to look too hard to see that the first round of AC reconnaissance drilling has intersected significant gold mineralisation, with a best intersection of 4m at 7.38g/t in a zone of 20m at 1.93g/t, in two separate zones up to 5km long. That is an exceptional outcome, the potential for high tonnage over a strike length of 5km. There is no need to elaborate on what has been found so far, and I’m sure that the current round of RC drilling which is probably close to, if not already completed, will speak for itself. I believe that there is awesome potential in this ground to have a substantial impact on this company.With the work already completed, and over a 5km strike length, it is not hard to conjure up thoughts that the project is mimicking in these early stages, that of another great gold mine in the region, the big Fimiston open pit in Kalgoorlie. After all, the super pit in Kal is mined at an average grade of 2.5g/t, that is extremely low compared to the already known results at Lake Roe. From memory, I think Tom Sanders has already suggested in a previous report, that because of the shallow nature & value of the gold at Lake Roe, that it is a “free grab”, or words of that nature Yes I know, that is putting the cart before the horse, but the framework is possibly there for such an outcome. Get ready for the fireworks should any of the RC drilling reveal primary mineralisation with some nice averages !2. Corporate(a)ManagementI would think that anyone who has been watching this Co seriously for any length of time would be totally familiar with Management by now, both Exec & Non Exec. Tom Sanders is holding the position of Exec- Chair, and to me, he is managing the Co, No MD’s, No CEO’s. Why do you need those other “hangeron” managers for such a small corporate structure? No need ! A+ to Tom.Have a look at Tom’s history & experience, see what it tells you. He has a strong history of both Au & Ni exploration in WA including published papers, they are worth reading. His work is pretty enlightening.In addition, he is an experienced explorer, who knows how to crawl before you walk, spending exploration money according to well founded strategies & outcomes.Have a look at the number of Board Meetings from the Annual Report 2015. Only four (4) meetings. Why does any Co need a Board Meeting on a monthly basis, and get paid $4K/Director/Meeting. Yeh, I can answer that, because a lot of Co Directors are nothing more then “professional Directors” who make their total living from meetings. Not Tom !No bureaucratic management, not here in (ASX:BRB) Tom is a realistic Manager, one who lives in the real world. Quarterly Meetings only required. After all, who needs meetings to plan the next four weeks of work? Not (ASX:BRB) !!!! Too easy.The recent Announcements by management & the board are of a confident nature, a true expression of an experienced geological manager. For example, the recent Ann’s have stated “Large New Gold System Confirmed”. Now who would say that in their wildest dreams without having tangible evidence? I believe that current results substantiate that statement to an extremely high degree.Just to top off on what realistic management attempts to achieve in these hard times, just look beyond the Balance Sheet. If this is not a reflection of responsible management, with the best interests of Shareholders at stake, have a look at this in the Annual Report…………The Basic Profit / (Loss) for FY2014 from $1.68 / Share to $1.30 / Share (2015), which in FY2014 was calculated on a Volume Weighted Average of Shares Issued at 66.8M, not at the current total of 82.7M. A real big + Plus for Management, doing their very best to avoid dilution !If that’s not enough to convince anyone that this Co is run by smart and realistic management, then perhaps have a look at the Balance Sheet and see that the amount of revenue that was spent this last year on REAL EXPLORATION and the ADMIINISTRATIVE costs, the ratio. Very responsible !!Exploration: $1.2MAdministration: $389KWhat other Junior Explorer can boast that in these hard times? Please tell me of one if you know. Look at the Co’s trying to survive today, spending 4 X on Admin and Directors Fees than Exploration !!!!! LOL No, not (ASX:BRB). That’s how you make new discoveries !(b)Financials2012 Total Shares 58.6M Top 20 Holders held 85.14% of all Shares2016 Total Shares 82.7M (29.1.2016)(I do not know the Top 20 Shareholders as at February 2016)Cash at Bank $0.723M (February 2016)Non-Current Liabilities of $905K to be spent on all Titles held in WA over the next couple of years, should (ASX:BRB) decide to hold onto all of them until their expiry date. I don’t think they will now, Lake Roe may change their focus. (IMO)However, in light of Lake Roe, should they decide to sell some of these Titles, which have had significant & serious $’s spent on them, then there are considerable Assets here in terms of $’s. It would be hard to put a price on those assets under present economic conditions, but it would be significant.So it is IMO that (ASX:BRB) are well positioned cash wise and to forge hard ahead at Lake Roe, nothing will stop them now !But, of course we all know that any major Diamond Drilling program at Lake Roe will cost money, and yes it will, but how else does one prove up any Resource/Reserve, none other than drilling the living suitcase out of it?Some of you are probably thinking that a CR may be on the immediate agenda in light of the potential costs that may be incurred at Lake Roe. I don’t think that will come in a hurry in light of recent findings on the Lake, and the potential of the Mar Cap increasing dramatically after the awaited RC Drilling results from the Lake, I believe will send the MarCap spiralling.Why do I think that, no CR just yet or the immediate future? Have a look at the current Options, their Expiry Date & Cost. I feel the Table below will tell you a lot in light of the present SP / MarCap………….
Look at the Options Table above, and you will notice that the Heads have already passed the Exercise Price for 6,000,000 oppies, with the Heads currently running between 27.5c – 30c, and still have 4 months to run !So how will those Oppies look after a couple more rounds of drilling at Lake Roe? IMO, very attractive and ready for conversion. So if those Oppies are converted to Heads, using a Weighted Average Exercise Price, then there is the potential here of raising $1.5M + by the end of June this year. How handy would that be !The only scenario to that not happening is perhaps highlighted in the chart below, which reveals that those Oppies are held mostly by Management. Will their exploration work and the results be sufficient for them to dig deep? But, on the positive side, why would Management have issued those oppies to at those Exercise Prices, if they didn’t think that those prices could not be achieved? This will be a real acid test, fascinating !
But wait, theres more. LOL The other 2,000,000 Oppies with a Weighted Average Exercise Price of 49c by 31 December this year also have the potential (considering where Lake Roe is currently at) to have a very high chance for Conversion. That would put another $0.9M in the Bank. So is there any room for a bloke like Mark Creasy to get in on the action here just yet? No, unless of course he starts buying On Market, then the fireworks could really go off with a Bang. LOLSo on the basis of all of the above, and being an eternal optimist, I feel (ASX:BRB) are well positioned and run by very good Management. Time will tell. I look forward to your thoughts and opinions on the above.This is why I hold, and for the long haul.Considering that the current gold price is only about $100AUD per ounce less than the all-time record price reached in 2011, as a result of the current weaker US dollar exchange rate, pushing our price up to $1,700AUD per ounce, augers well for this Explorer in taking advantage of the current situation.Overall Gold production in Australia totalled 285 tonnes in 2015, a 12 year high, the highest annual production since 2003, as the $AUD weakened. As a result, I believe that numerous mothballed gold operations will be brought back into production as a result of the above, sooner than later.So best wishes to all (ASX:BRB) holders, your time is near, as I believe that the gold sector has become extremely attractive to Investors in 2016.[/table]
