Cove Resources Limited (CVE)

[mickjohn]

Floated on the 27th Jan with an issue price of 20cps.

Current state:
Share Price: 0.30
Issue: 32,786,001
Market cap: 9.5mil
Cash on hand: 4mil+

Options: 13,000,000 (cant confirm... help?)
Ex price: 25c (in the money already)
Ex date: 27/1/2014

Currently CVE have 4 projects going with some pretty decent drill results already delivered on 1.

Goongarrie Project
Tenement package includes five Prospecting Licences which cover the historic Goongarrie gold mining centre situated in the Eastern Goldfields of Western Australia. The Goongarrie Project area straddles a major greenstone belt stretching between Kalgoorlie and Menzies and includes recorded past production from open pit operations totalling approximately 35,000 oz.

Drilling commenced on the Goongarrie Project on 28 Jan with results announced very quickly on valentines day. As follows:

4 Drill holes, results:
57m @ 1.23g/t AU from 31m. incl 3m @ 7.24g/t AU from 44m
15m @ 1.34g/t AU from 34m. incl 1m @ 8.01g/t AU from 34m
22m @ 2.04g/t AU from 52m, incl 2m @ 7.86g/t AU from 55m.
3m @ 6.93g/t AU from 52m, and 2m @ 5.51g/t AU from 88m

Project 2:

Sunrise Dam Project
Tenement package includes four Exploration Licences and one Exploration Licence Application located approximately 30 km south-east of the Laverton Township. The Project is surrounded by two world-class gold deposits including, the Sunrise Dam Deposit (AngloGold Ashanti Limited) to the south and the Wallaby Deposit (Barrick Gold Corporation) to the north.

Project 3:

Carosue Project
Tenement package includes two Exploration Licences, three Exploration Licence Applications and two Prospecting Licences covering an area over 250km2. The Carosue Project lies immediately adjacent to the Carosue Dam Gold Mine (Saracen Mineral Holdings Limited) with reported gold resources of over 3.0M oz.

Project 4:

Spargoville Project
The tenement package includes three Exploration Licence Applications located within the southern portion of the Norseman-Wiluna Greenstone Belt in the eastern Goldfields province of Western Australia. Spargoville is located adjacent to several historic gold workings as well as the active Wattle Dam mine held 100% by Ramelius Resources Ltd.

http://www.coveresources.com.au/

Looks pretty full of potential given the quick turnaround of drilling results, considering they floated a month ago.

Interested to see others thoughts on this one.

 

[mickjohn]

uh, forgot to say the most important thing....

CVE are a Gold explorer (for those that didnt work it out already).

 

[Agauholic]

Spargoville is located adjacent to several historic gold workings as well as the active Wattle Dam mine held 100% by Ramelius Resources Ltd.

RMS is due for a big revaluation soon... $46M pretax profit guidance for the dec 1/2 (up from 13M).... 20cEPS not out of the question... up 8% today

Wattle *delivering* 20g/t epic grades.

will watch this one tho...

I'd say if these lads find anything, RMS would be in a position (no debt, pockets of cash) to snap em up... wattle was the company maker

 

[mickjohn]

RMS production at 67,000 oz AU/year. wow.

If a takeover bid occurs, does the ordinary shareholder HAVE to sell their stock?

Would be interesting to see how this one develops without any such offers. Not sure that we will get that chance.

 

[mickjohn]

Solid start today.

Market cap now sits at around $14m

Share price up this morning to 0.385 (30.51% gain).
Still one to keep an eye on with good neighbors and more drilling results in the future.
Quite happy this last week between physical, CCU and now this bad boy!