MDS - Midas Resources

[sandybeachs]

hi guys..

i made a stupid error here, i rode (mds) down in the recent decline in resource stocks.

like they say "don't fall in love"..

anyway now thats behind us...

the good news is gold is edging it's way back up again.

whilst we can't call it a certainty, things are looking much better with the price of gold..

so where do we stand with midas resources.

imo i think it's way over sold now..

we should have some resource figures in the near future, some have said it could be around the million oz.

they have nearby infrastructure (treatment plant), so they could start a low cost mining project fairly quickly.

whilst building there own treatment plant.

the above is till some time off yet, but at least we can see how things might turn out.

so at present the current share price 13.5cents, if the price of gold continues up & we get an announcement about resources. then i'd add approx 10-14cents onto the current price

management are first class..

Don Boyer..perhaps one of the best guys in the game..

PROJECTS:
LAKE CAREY: The Lake Carey SuperProject comprises the Lake Carey Project (100%),
the Linden Project (80%) and the Phantom Well Project (100%).

The Lake Carey Project: Prospective for gold and located near Laverton in WA.
Resources as at June 2003 were estimated at 6.6Mt @ 2.2g/t Au. MDS' strategy for
this project will focus on exploration, increasing the resource base and
advancing feasibility studies with a view to commencing mining. In April 2003,
drilling returned 5m @ 14.9g/t Au and 15m @ 4.83g/t Au at Fortitude. RC drilling
in December 2003 intersected 14m @ 8.17g/t Au and 5m @ 13.35g/t Au.

The Phantom Well Project: Located 5km south of Fortitude and comprising the
Stealth and Mirage prospects. Drilling in 2003 returned 3m @ 18.7g/t Au and 10m
@ 2.8g/t Au at Stealth.

regards

[RichKid]

MDS was mentioned to me so I've looked at the chart. Long downtrend. Only good sign is slowing in the trend and a recent reversal (from my understanding) rejecting lower prices. Not sure how far this is leveraged to the gold price, gold has rallied recently. If I was buying I'd buy at 6 and have a very tight stop just below to sell on close. No idea about the fundamentals and eitherway it's volatile at these prices. Appears to be stuck in a range and often closes below where it started, not enough confidence from the buyers.

[doctorj]

One year, 8 days for a reply. That's got to be some kind of record!

This is one of those companies that is run by a good group of well respected blokes. It's got reasonable backing from the WA brokers and a good collection of larger shareholders. Cash reserves and cash burn see them lasting the better part of another year without a raising. They are spending a fair bit on exploration for a company of their size.

I agree that it seems to be finding a base and it would be good to look for an entry about 6c with a tight stop. You'd have to wonder what is going to move this company. By all accounts its just another explorer that's a long way off being a producer and there's no decent technical reason to buy it. What you're essentially hoping for is a big announcement - whether it be a new project or proving up some good grades.

[doctorj]

Interesting timing for this one to be picked up by ASF.

Closed at 8c today after reaching a low of 5c before news released on Friday. MDS has entered into an agreement via their wholly owned Chinese subsidiary for a 50% share in a prospective gold mine north of Beijing. MDS claims its in a fairly prolific gold field, but they are unable to release any estimates as they do not comply with JORC requirements. More drilling is planned to meet these requirements.

Might be interesting IF MDS sees an increase in liquidity - establishing even a $10,000 holding is enough to buy it up about 1-2c based on the current depth. On the flip side, being tightly held means its likely to have above par volitility.

The potential upside here lies with the chance at getting some good drilling results and eventually an initial resource estimate. The downside is that it's another explorer without an income.

[doctorj]

Responded to a share price query today with their best Colonel Klink impression. Still no great volume, but it's definately going in the right direction.

[yogi-in-oz]

:)

Hi folks,

MDS/MDSO ..... looking for a weak start this week to
test the recent lows, then a positive move from
late-Tuesday or Wednesday ..... 11-12042006 ... :)

Click here for MDS chart ..... :) (http://www.incrediblecharts.com/forums/messages/8/783318.gif)

happy days

yogi

:)

[yogi-in-oz]

:)

Hi folks,

MDS ..... no news yet, but up 53% today !~!

See chart, in post above ..... astromagic ..... :)

happy days

yogi

:)

[tahpot]

Now in a trading halt -- here's to good news!

[Dr Doom]

LATEST FORTITUDE DRILL RESULTS CONFIRM CONTINUITY OF MINERALISATION
Encouraging assay results have been received for an additional 12 Reverse Cycle drill holes with results now available for 32 of the 105 drill holes in the current program. New significant results at an 0.5 g/t Au cut off grade include:

FTRC176 1m @ 8.21 g/t Au from 31 to 32m
FTRC212 9m @ 2.47 g/t Au from 64 to 73m (including 4m @ 4.77 g/t Au)
FTRC217 6m @ 3.17g/t Au from 34 to 40m (including 1m @ 9.17 g/t Au)
FTRC220 20m @ 2.14 g/t Au from 49 to 69m (including 11m @ 3.13 g/t Au)

Closing price today = 20c

[daaussie]

Hi i bought in this morning, the charts look great on this one, and the directors just announced today a huge buy of shares.
After i bought in the price rose 4 cents to 25cents!
no sellers left nearly.

[Dr Doom]

Yes, looks promising, may do a bit of consolidating at these levels :confused:

[daaussie]

hi, the price rocketed to 28 cents and levelled at 24 cents with 2.5 million volume traded. nice stock and i dont think we have seen the end of this one rise. :)

[Dr Doom]

SIGNIFICANT NEW DRILL INTERSECTION AT BINDAH
􀂃 The third RC hole at Bindah (BNRC007) intersects 8m @ 10.56 g/t Au from 116m,
including 3m @ 22.37 g/t Au
􀂃 The intersection is 50m vertically below the old Bindah open pit
􀂃 A steep easterly plunge for the mineralisation is indicated, with the latest intersection
possibly representing the top of a new high-grade shoot.
􀂃 The new shoot is open in all directions.
􀂃 Results for the fourth hole located 25m north of BNRC007 are pending
Midas Resources Limited (ASX:MDS) (“Midas” or “the Company”) is pleased to report that a
significant result has been received for BNRC007, which is one of four RC holes recently
completed at the Bindah gold mine, an old open pit within the Lake Carey project area.

The latest result confirms the potential of the Bindah structural corridor to host significant gold
deposits.

[Uncle Festivus]

Question for yogi-in-oz, what's the outlook for this one on good news today?

[springhill]

Is it just me or did anyone else regard MDS announcement today as less than thrilling? Can anyone give me any good reasons to hang onto this one?? I basically bought in because of the Terry Streeter X-factor

[springhill]

Can anyone out there who is good with charts give me an opinion on this, its my first crack at a chart? Is this even a proper descending triangle? What should i be looking for now, an increase in volume, because without it this chart doesn't mean much, right?

[Uncle Festivus]

Can anyone out there who is good with charts give me an opinion on this, its my first crack at a chart? Is this even a proper descending triangle? What should i be looking for now, an increase in volume, because without it this chart doesn't mean much, right?

I'll have a go at it, although I'm no expert. I've gone to the weekly to get a better picture. It appears to be a descending wedge, most probably due to waning interest on lack of good news, but time wise looks to be getting close to either breaking up on hopefully some good announcements or breaking down on lack of any announcements. Totally up to the company getting some good (further) drill results.

[Dutchy3]

Hi Brett

From PM ... I'm with Unc F on this one ... the weekly does make more sense to me too.

See the previous white candles ... the blue arrows represent spikes in volume for each.

Now the stock drifts .... let it crack the red (potential) resistance line convincingly before committing any capital

[springhill]

Thanks D3 and Uncle F i really appreciate the help, im already holding at an average of round 11 cents, even considering topping up at this price, just its drift is driving me nuts!! D3 what does the red squiggly line represent? For my info is it better to look at weekly charts as opposed to EOD?

[kennas]

Looks vulnerable IMO, even though 15 looks like a terrific support line.

Dipping under and I would be out. If it rebounds just re-buy. Stay safe, save your capital, prevent losses...

:2twocents

[springhill]

Well what do u know, Midas up half cent on a swine of a day, maybe too soon to call this a trend reversal ;) i jest of course, fully expected it to crash through the 15 cent line of resistance u mentioned kennas. Baby steps....baby steps

[springhill]

A second review of the Fortitude Resource has resulted in a 21% increase in gold grade and 5.7% increase in contained gold.
In light of this review, a further update of the Resource at Fortitude has been completed. The new JORC compliant Mineral Resource estimate is presented below at a 1g/t cut off grade for comparison with the previous resource estimate of 19th June 2007

The above is part of the Midas resource upgrade released this morning. Finally a small spark of encouraging news?! Apologies, i was going to post the link but am unsure how to do it

[springhill]

Looks vulnerable IMO, even though 15 looks like a terrific support line.

Dipping under and I would be out. If it rebounds just re-buy. Stay safe, save your capital, prevent losses...

:2twocents

Nice call kenna, crashed through 15 and down to 12 at speed. I didnt sell in any case, no urgent need for the $$$ so i'll just bunker down and put them in the bottom draw if need be. May even top up. Looks like im a bit of a Hans Solo in this one!?:bricks1:

[springhill]

Oh dear :eek::eek::eek: falling knife alert, or prime candidate for trend reversal???? somehow i dont think monday will be kind to this one!!!

[springhill]

Today i have officially sold out of MDS after some weekend research and re-evaluation, having broken even, luckily, although 2 months ago i would have made 60-70% profit, i just cant see where the price improvement would have come from. More importantly i have learnt a great lesson out of this and leave with no regrets :) Thanks to those who helped me with the charts. On to more profitable holdings hopefully!!

[nioka]

I have been researching this stock and I have come to the conclusion that it may be time to get into this one. The company is raising funds fo a new series of drilling. There are operating mines in that area operated by large companies which are getting to the end of their current mine life and it is an area which is historically mineral rich. Any decent find would make this small company a takeover target or they would be in a good position to sell their leases if they proved them up. This one is highly speculative but I believe the odds are good. Has anyone any thoughts ? ( apart from the charts which do not look good)

[Dutchy3]

Hi All

Yes ... do I too detect the slightest wiff of something in the chart ... in no way a buy for me at the mo and yet I'll add it to watch-list. Volume not inspiring either ...

[springhill]

I have been researching this stock and I have come to the conclusion that it may be time to get into this one. The company is raising funds fo a new series of drilling. There are operating mines in that area operated by large companies which are getting to the end of their current mine life and it is an area which is historically mineral rich. Any decent find would make this small company a takeover target or they would be in a good position to sell their leases if they proved them up. This one is highly speculative but I believe the odds are good. Has anyone any thoughts ? ( apart from the charts which do not look good)

As you can see from previous posts i was in this for a while and was doing ok til they brought out weak drill results one after another.
There are decent to weak grades there but way too deep for my liking, this is basically a punt and hope affair IMO, they can drill all the way to Scotland if they want but with results like previous releases, this wont go anywhere soon. I liken putting money in MDS at moment as going to casino. Pure risk based bet as you said nioka HIGHLY SPECULATIVE. Started drilling on 22nd Sept again if memory serves me right. Might be best to see what they turn up first, or this will sink like a stone. All just my opinion of course.
All the best if you do go in though. Good luck

[nioka]

Based purely on "pub" talk I have taken a small position with this one. Only 10,000 @ 10c so there is not a lot to lose. The talk I got is based on the confidence of the staff and it is the same source that gave me LYC some time ago which was also "pub" talk at the time. Highly speculative but better than a lottery ticket in my opinion. I'm often wrong????? If the current drill results turn out OK then I'll take a bigger stake.

[Uncle Festivus]

The pub talk paying off by the looks of it Nioka! Up 30% on announcement today. Not that spectacular in itself, might be more to it. Get back to the pub for more 'research' maybe ;).

[nioka]

The pub talk paying off by the looks of it Nioka! Up 30% on announcement today. Not that spectacular in itself, might be more to it. Get back to the pub for more 'research' maybe ;).

I expected some movement today to come from the Updated announcement on Friday. The assay results do not reflect the "talk" that was around last week. Maybe more to come. Maybe there is progress being made with the plans for ore treatment at Barrick's Granny Smith plant. Granny Smith may need the ore to extend the life of their mine. All supposition but sometimes an educated guess is better than using a pin when blindfolded.

[nioka]

For those interested in MDS, I have cashed out my investment there at a small profit. My information is that there are problems with the disposal of saline water which could take a little time to resolve. I will re-enter when I see some progress towards operational mining. I expect the price to remain flat for a little time yet. ( based on pub talk that may be wrong.)

[Uncle Festivus]

Something moving here or someone just 'manipulating' the price. Looks like it got a speeding ticket!

[happytown]

update on mds


shares 225,976,276
options 104,056,477 ($10.75M approx if exercised, nil itm)
sp .021
mc $6,930,687.81 (options incl)
$4,745,501.80 (sans options)
cash approx $1,113,000


projects

gold - fortitude (lake carey) (100% owned)

current jorc resource 9Mt @ 1.6g/t Au (473,000 ounces: 164K indicated; 309K inferred) anglogold ashanti (sunrise dam 35 kms away) is carrying out pit optimization and mining study (see MDS ann dated 08/01/09) to determine whether it will partake in development of fortitude (currently no commercial agreement between the two) which would include trucking ore to sunrise

the study expected to be completed june quarter 2009

anglogold are exploring satellite pits in the district surrounding sunrise and exploration targets within trucking distance of the tropicanna gold project (from AGG's 3rd qtr report), however no specific mention of midas or fortitude/lake carey

da hong shan project (chinese jv, copper)

midas has withdrawn from its chinese jv copper project due to poor drill results and now has no exploration or interest in china (see MDS ann dated 27/02/09)

potential iron ore (100% owned)

MDS announced yesterday that it has signed a


...

conditional Sale and Purchase Agreement to acquire Mulga Minerals Pty Ltd (“Mulga”) from the D B Family trust in a Related Party transaction. The D B Family trust is an entity controlled by Midas’ Chairman Don Boyer

...mulga minerals holds several iron-ore prospective tenements (one tenement granted, the others applied for) covering 144 sq kms, as well as 2 heavy-mineral sand prospective tenement applications adjacent to image resources bidaminna project


...

The Marandoo tenement [granted, 6 sq kms] is located 4 kms south of the Mt Stevenson BID [50Mt @ 62.5% Fe] ... [the West Pilbara tenements, applied for, 51 sq kms] are ... in close proximity to other iron ore deposits including Metawandy (Rio Tinto) and Anthiby Well (Giralia) ... the Yandicoogina tenements [3 applied for, 24 sq kms, and are] ... 7 km south of the Yandicoogina minesite ... the West Angelas tenement [1 applied for, 9 sq kms] is located 12 km south west of Robe River Iron’s West Angelas minesite ... the Red Hill tenement [1 applied for, 15 sq kms, is] to the west of Dynasty Metal’s Red Hill CID prospect area

...note: 1 of the yandicoogina and the red hill tenement will be subject to a ballot as mulga is not the only applicant for these tenements

up to 90 days due diligence will be carried out in order to determine whether MDS will proceed and should they the acquisition cost will be


...

six million Midas shares on settlement and $75,000 in cash paid within six months of settlement

...at current sp, total cost for 144sq kms of Fe prospective tenements (assuming tenements granted) is $201,000

shareholder approval is required for the related party transaction

summing up

speculative with risks involved (longer-term chartwise looks -ve)

anglogold ashanti fortitiude study (for potential farm-in) overdue (jorc resource 473K ounces)
$200K cost for potential Fe exposure (144 sq kms in Fe country)

oh ... and DYOR

cheers :)

[happytown]

4th qtr activities report out today,

re potential AAG jv,


...

During the Quarter AngloGold Ashanti Limited (“AGA”) carried out a scoping level study of the Fortitude deposit that has involved re-wireframing of the gold mineralisation at appropriate cut-off grades, geostatistical analysis and a pit optimisation study. Following the Fortitude study AGA is conducting a review of exploration potential within the Lake Carey tenements with the objective of determining if a focus on exploration targets is warranted.

...re a potential SBM jv,


...

St Barbara Limited (“SBM”) has an 18 month option to explore the Sunset Well tenements expiring on 14 August 2009. SBM has reported that work in the 6 month period to June 30 2009 has comprised multi-element spectral scanning of a selection of 102 base-of-hole samples.

...

The data is still being evaluated against other technical data for the area and SBM is yet to decide on further exploration activity.

...The Fe tenements acquisition right (outlined in previous post) is still in due diligence stage,


...

The recent acquisition of rights to Iron Ore tenements in the Pilbara is a significant milestone for the Company with excellent upside if due diligence results in the identification of drill targets. The Company intends to be proactive in the Pilbara regarding other Iron Ore opportunities.sp up approx 66% in last month

cheers :)

yet another quality post brought to you by happytown

[happytown]

update on mds

successful due diligence on mulga minerals fe tenements (most still in application stage) has led to mds proceeding with the purchase process for mulga minerals (owned by mds chairman) - shareholder approval is required and will be sought at a meeting to be held soon [ann 13/08/09]

rock chip sampling on mulga tenements (applied for) incl fe grades from 19.5-63.7% Fe, 109 samples 24 exceeding 55% Fe - exploration target at 1 tenement of 25-35Mt @ 50-60% Fe (within 2 km of GIR's Anthiby Well jorc inferred resource 25.4Mt @ 54% Fe) - this will be first drilling target if tenements granted (and purchase approved by shareholders) [ann 05/08/09]

applies for EL tenements (E45/3467 (42 sub-blocks) and E45/3468 (25 sub-blocks) approx 200 sq km) in Paterson Province WA - tenements are 35 km S of Tefler Au deposit and 30 km NW of Kintyre U308 deposit, no evidence of significant prior drilling on tenements (no ore grade interescts were found in 1990's drilling to immediate W of tenements) - potential for Cu-Pb-Zn-Au-U308 [ann 18/08/09]

still no word on AGG's scoping study on the Fortitude Au project or SBM's Sunset Well possible jv (SBM expl option was to expire on 14/08/09)

cheers :)

another quality post brought to you by happytown inc
replete with stinking badges

[happytown]

as ann'd on 03/09/09, MDS will hold a general meeting on 5th Oct for shareholders to vote in regards to the mulga minerals fe tenements (most in application stage, ie not yet granted) related party transaction (mulga currently owned by MDS director) acquisition

as to their recent ann [18/08/09] re the application for tenements in the Paterson Province (WA) - as discussed in post above - it appears that the tenements as presented on p3 of the 18/08/09 MDS ann (mds claim to tbe the priority applicant for these tenements), conflict with the Yeneena jv Project as between ENR and Barrick Gold (ENR earning 75% interest), see for eg ENR anns dated 01/09/09 p3, 01/07/09 p5, 22/04/09 p2; the MDS tenements (applied for) lie inside the Yeneena jv tenement (the eastern boundaries of both co's tenements are identical insofar as they overlap), ENR are undertaking a drilling program this month on the tenement

how many tenements from both mulga and paterson will mds actually end up with (only 1 fe tenement of 8 has so far been granted to mulga - 6 sq km of 144 sq km applied for)

cheers :)

another quality post brought to you by happytown inc

[springhill]

Wow, where do i start with this one? Firstly forget their potential as a gold spec, they have been drilling the crap out of Fortitude, for little return. Though if they head further south to Mirage and Stealth, they may finally be heading in the right direction.

Onto their Fe.

MDS announced today an initial Indicated Fe recource of 11.5m tons grading at 53.1%.
http://www.asx.com.au/asxpdf/20100726/pdf/31rhcn8rdv5h30.pdf
Positive is that the resource starts at surface.
Negative is grades seem to be a little on the low side. Shouldn't a decent mag deposit be grading at minimum 56% Fe?
Or can lower grade be offset by the lack of need to actually dig deep for it?

No activities were reported for the Yandicoogina, Marandoo or West Angelas Projects. Though would i hold out hope for these as viable Fe mines. Probably not as you would assume they would attack their most prospective tenemant, West Pilbara Deposit, first.
So maybe some hit and hope potential with the others.

MDS did spike nicely around early April, as seen in attachment below, on announcements of drilling at West Pilbara, so maybe the same could happen with the others if you keep an eye on propective drilling programs.
Could become a tradeable stock, and is heading south again. Possibly a rebound play on any further drilling action.
Looks to be running out of cash though with less than a mill in the bank and no oppies available soon, so expect a cap raising.