South Australian Government and AGS

AGS and Heathgate will have a very profitable mine from existing announced resources. But so much more is yet to come. The geological landscape around B4M is so uranium rich that the Blue Bros are having sleepless nights. The recent announcement of more finds to the North of Beverly are a precursor to more announcements from B4M. The following is in the public arena but is it in the public awareness. But the Mr Rann is well aware of the importance of B4M.

Sam Walker (Team Leader — Project Facilitation, Mineral Resources Group, PIRSA)
"The geological settings are different to the Beverley uranium system which is hosted in Miocene sand channel systems of the Namba formation. Four Mile mineralisation is within reduced Eocene sands and sandy siltstones interpreted toi belong to the Eyre Formation which locally overlies Mesoproterozoic basement

In January 2008 Quasar Resources and Alliance Resources announced concept plans for staged development of the Four Mile deposit. Stage 1 plan utilises in situ leach mining at an initial capacity of 1.5 Mlbpa from the Four Mile East deposit, commencing in 2010.

Stages 2 and 3 provide for a progressive increase to a projected 3 Mlbpa in Stage 2 and 4.5 Mlbpa in Stage 3 with production from new well fields at Four Mile East and Four Mile West.

The Four Mile Project currently has a resource of 3.9 Mt at 0.37% U₃O₈ for 15 000 t, or 32 Mlb of U₃O₈ within the Four Mile West deposit.

High-grade drilling results from the nearby Four Mile East deposit indicate the potential for a significant upgrade to the total resource. It is estimated currently that Four Mile East may contain 13 500 – 21 500 t (30–47 Mlb) of U₃O₈."

DeepLode believes that B4M will be a greater bonanza than we realise.

AGS IN THE HOT SPOT

Seems as though AGS is sitting in the middle of one of the world's biggest uranium deposits. Heathgate, which operates the Beverly mine has announced a new discovery to the north of Beverly and close to B4M. Quasar a subsidiary of Heathgate is in a J.V. with Alliance (AGS) and has been drilling and constantly upgrading the B4M deposit.
This can only be good news for AGS as it can be expected that further high grade extensions will be announced.And Deeplode is reasonably sure that a resource upgrade to B4M will follow closely on the heels of the Heathgate announcement.
The lines on the permit maps do not deineate the geological structures.
In the mean time production will begin in the second half of 2010 on the existing B4M deposit after a few agreements are reached.
AGS is certainly still at the front of DeepLode's mind and of others in Collins St (who represent overseas interests.) The top 20 has not moved out of the Gandel orbit. YET !! So Deeplode is not even a trader now...Wait.

And follow the news on hotcopper.com.au Ignore Hot Copper at your peril

GBM Resources (ASX GBZ) has a DeepLode

Malmsbury is now a very quiet village since the Calder freeway passed it by. Its excellent bakery and fine food outlets are still managing well because of the quality of their produce. Very soon Malmsbury may be on the map for a different reason. The early gold miners in this region were restricted by their inability to go deep. But no longer of course!!
Malmsbury, Deeplode was told tonight, has gold but it is buried deep below the calm of this village. Deeplode enjoyed some local wines this evening..Black Jack Shiraz.. and during chat discovered that GBM Resources (ASX GBZ) has its hands on a deep high grade gold deposit under two hills close by the town.
DeepLode as usual urges caution and suggests readers go to hotcopper.com.au where posters are much more enlightened.
But it appears to be a buy which DeepLode will do!!!

AZUMAH READIES FOR THE KNOCKOUT PUNCH

Azumah (ASX: AZM) is named after triple world boxing title holder Azumah Nelson.
This Perth-based explorer that has made gold exploration in Ghana its focus since listing in January 2006 based on its latest announcements seems to be getting to the final round in its campaign to get its WA-Lawra project in the north-west of mining friendly Ghana into production and a four-kilometre long gold corridor will certainly help!
Azumah’s aim of getting its gold resource into the region of 1 million ounces looks to be achievable with some to spare because of its rather huge coverage of the prospective belt that has made West Africa a hot spot for gold discoveries.
And all this for about 0.14c a share.
Of course Opes and Croesus did not help with their forced selling last year.
But Stephen Stone the chairman of the company bought up over 3 million of those!
And Macquarie Bank last year soaked up a A$2 million share placement subscribing for 12,150,000 fully paid new ordinary shares at an issue price of 16 cents per share Macquarie is now Azumah’s largest shareholder with an equity position of 13%.
And Stock Analysis says it is a buy with a valuation of .32
After Deeplode’s dinner tonight with some contacts from Hong Kong that valuation looks conservative.
But Deeplode has no expertise in such matters and suggests readers go to the thread on hotcopper.com.au where much can be learned!

Deeplode acknowledges news reports.

India rejects the Communist Party

India as we know has returned the Congress Party and at the same time lessened its dependence on minority parties. Its success also means the Government can go ahead with its economic reforms. And also now the Indian-U.S. nuclear agreement, a cornerstone of closer ties with Washington can go ahead. This is assured with the demise of the Indian Communist Party which is now out the back door of Indian politics.
Under the agreement passed by the U.S. Congress last year the USA agreed to share civilian nuclear technology, ending a 30-year ban on sales of nuclear fuel and technology that was imposed after India tested and developed a nuclear bomb.
Deeplode thinks that the election results may see change in Obama' s Asian policy towards India just to remind China that it does not yet hold a full hand. And certainly the crushing blow to the Communist Party could mean it may never recover its voter base.
Manmohan Singh will remain as leader but Deeplode sees Rahul Gandhi as simply waiting.

But what this all means is that the capital inflow into India is not captive to minority interests..eg the Communist Party....Major infra structure projects will now go ahead. Australia will benefit.

INDIAN GROWTH ABOUT TO EXPLODE

Deeplode came across some figures recently which point out the direction of the flow of global finance. And India looks to be on the brink of a huge growth explosion.

Global money appears to be entering India at the rate of $1 billion a week.
In April, foreign institutions poured US$1.3 billion into Indian equities.Then in early May before the Indian elections another US$1.87 billion was invested from outside India. The total for May was US$4.14 billion

And this is looks to be a world wide trend.
Emerging markets are on the receiving end of large inflows of capital.
Since April, $20 billion has flooded into all emerging markets. The Sensex is up 50%, Russia is up 63%, Brazil 60% China 57%, and Argentina 45%.The capital movement is not India-specific but is representative of a movement into emerging markets.
It looks as though BRICS is still alive as a market force but Deeplode's money is on India and China to mostly benefit the ASX.

(News wires helped the information gathering)

Gandel Mining the Second Generation money machine

John Gandel made his money in property development. His son Ian looks as if he is on the way to establishing a major mining investment house in Collins Street...Gandel Mining.. His holdings through Abbotsleigh..a private company.. include controlling interests in AGS, ALK, BCI and others.
He is about to take control of GIP...tantalum in Egypt...but under the radar through GIP an interest in SRZ (Stellar Resources) with unknown reserves of tin and other base metals in Tasmania..Deeplode ponders his interest in GIP..with all its risks.. but has some faith in John Dunlop who, if genetics are worth anything, should be followed.