BNR - Bulletin Resources

[System]

Bulletin Resources Limited (BNR) is a listed public Australian company incorporated in June 2010 with the objective of identifying and acquiring high grade gold projects offering short to medium term production opportunities, as well as upside potential for further discoveries and resource expansion.

With this objective, the Company acquired six granted mining leases covering the Nicolson's gold project in September 2010 (Nicolson's Project), entered into an asset sale agreement with Thundelarra Exploration Limited for two adjoining granted Exploration Licences (Thundelarra Asset Sale Agreement) and submitted applications for two additional Exploration Licences adjoining the Nicolson's Project and the Thundelarra Project properties (Exploration Licences). At completion of the Thundelarra Asset Sale Agreement and subject to the granting of the Exploration Licences, Bulletin Resources will hold a 100% interest in a contiguous package of prospective tenements covering approximately 69.3km² located near Halls Creek in the Kimberley Region of Western Australia (Tenements).

http://www.bulletinresources.com

 

[barney]

Nice bit of movement from this one over the last couple of days. I bought a few recently based on the quality of the management, the fact they have gold in the ground, and their market cap is pretty much the equivalent of their cash in the bank. Could run with a sniff of good news.

 

[mr. jeff]

Nice bit of movement from this one over the last couple of days. I bought a few recently based on the quality of the management, the fact they have gold in the ground, and their market cap is pretty much the equivalent of their cash in the bank. Could run with a sniff of good news.

How much gold in the ground and are they drilling any decent ground?! Do they have any JORC'd ounces? That was what was so attractive with SBL.

 

[barney]

How much gold in the ground and are they drilling any decent ground?! Do they have any JORC'd ounces? That was what was so attractive with SBL.

Howdy Jeff,


The ground is 35 klms south west of Halls Creek in the Kimberlies. Previously mined on a small scale with some decent ratios.

No JORC yet, but the feasbility studies are on the time table, so they are confident .... Inferred and Indicated of almost 250,000 ounces, so not small change if its proven up.

The Company has only been listed for a short time. It is very illiquid, but also very tightly held, which I like.

Also like the Manager putting cash in over the last few months.



Main thing I like is the current market cap is less than 10 million, but they have over 7 million in the bank to prove up the resource in the meantime


The Annual report will give you much more detail than I can, and worth a read. Its not everyones cup of tea, but these are the kinds of stocks I trade. I have a 1-2 year outlook at the moment, and will re-assess as it unfolds.



http://imagesignal.comsec.com.au/asxdata/20111018/pdf/01229853.pdf

 

[barney]

Been waiting for a retracement on this to fill the rest of my order, but no one wants to sell it under 14 cps at the moment.

Recent report from Peter Strachan is worth a read for those interested in small Gold stocks ....

http://www.bulletinresources.com/perch/resources/bnr-20111031-1415.pdf

Its current market cap has its gold assets valued at $41 per ounce Strachan conservatively puts a value of 25-30 cps based on its current reserve, and potential for the market cap to increase many multiples in the future. A MC of only $45 million for eg. would give an SP of around 70 cps

The first assay returned from the latest drill hole which was testing the extension of the existing resource returned an interesting .... NRC11070: 2.0m at 20.5 g/t Au from 287m

As stated by the MD .... This intersection along with the previously announced results from this lode is presented in Figure 1 and has confirmed the potential for a new lode forming at depth in the foot wall


Plus shallow drilling at "Wagtails" encountered WAC11053: 6m at 10.2 g/t Au from 24m ..... Including 2m at 26.6 g/t Au from 27m

These types of grades are not generally intermittent ..... certainly looks interesting, and may explain the Directors buying over the past few months

(I'll be looking to buy more if the price drops under 13cps)

 

[barney]

Phil Retter continues to buy shares in his own Companies (Both BNR and DAU) ... another 200,000 over the last couple of weeks.

Recent small tenement purchase from NST looks interesting ( Current Inferred Resource of 323,000 tonnes at 3.2 g/t Au containing 33,600 ounces of gold with a lot of upside) + more local tenements secured for exploration .... all within trucking distance of their processing plant.

Slow mover and hard to get shares under 14 cents, but i like what I'm reading between the lines so far ........ waiting game!

 

[barney]

Management quietly getting on with business. If the follow up drill results emulate the grades in the rock chip samples, Paddock Well will boost their current reserves substantially

If we could get WIG to sell their remaining 3 million shares off market, the share price of BNR will only have one direction to go ...... Patience is a virtue .... apparently

Recent results from todays announcement (Solid Grades ... 53 g/t at Western Reef looks interesting):-

Surface sampling extends strike length of the partially exposed Paddock Well prospect to over 1 kilometre

High grade rock chip results (24.1 g/t Au and 11.3 g/t Au) returned from two subsidiary northwest-trending structures

Detailed mapping and surface sampling over the Western Reefs prospect at Nicolson’s outlines potential for additional high grade lode mineralisation with results of 8.5 g/t Au and 53.1 g/t Au

 

[barney]

Resource upgrade (again) ..... Now at 266,900 ounces. Not much interest from the retail punters in the current market climate, but if they keep growing the resource at the current rate, it will have to be noticed eventually ........

Pre Feasibility on target, and should have some interesting numbers I'd say. With only a $7 million market cap, it looks pretty good value ..... will continue to hold.

 

[barney]

Resource upgrade (again) ..... Now at 266,900 ounces. Not much interest from the retail punters in the current market climate, but if they keep growing the resource at the current rate, it will have to be noticed eventually ........

Pre Feasibility on target, and should have some interesting numbers I'd say. With only a $7 million market cap, it looks pretty good value ..... will continue to hold.

Announcement a couple of days ago ...... Feasibility study completed On Time and Under Budget ........ a pleasant change compared to many Companies!

Results should be available in a week or so ..... looking forward to what the numbers say.

Sp still needs to get over the 15-16 cent area with momentum before it gets interesting. I think WIG holdings are down to around 3 million shares, so it won't take a lot of trading to clean the last of them out.

Waiting patiently ..... opcorn:

 

[springhill]

BNR released announcement this morning regarding Nicholson's North.
http://www.asx.com.au/asxpdf/20120621/pdf/426ykzyb1cy223.pdf


● Thick, high grade quartz lode intersected down-plunge of previously announced high grade RAB drill hole intersection located 400 metres north of Nicolson’s Find open pit:
NRC12006 : 12m at 13.6g/t Au from 55m
(incl. 1m at 54.6g/t Au from 57m
1m at 74.3 g/t Au from 61m)
● Reserve definition drilling within the planned Rowdies open pit intersects additional shallow gold mineralisation. Highlights include:
RRC12001 : 1m at 6.1g/t Au from 13m
RRC12004 : 2m at 2.6g/t Au from 6m
1m at 14.5g/t Au from 13m
● All reserve definition drilling results received with resource estimate update in progress.


There were 2 recent announcements in regards to Wagtail.
http://www.asx.com.au/asxpdf/20120612/pdf/426s1y2d2zyj2r.pdf


● Positive results from first batch of assay data received from infill RC drilling within the planned Wagtail South open pit. Highlights include:
WSRC12042 : 1m at 25.9g/t from 36m
WSRC12043 : 6m at 13.7g/t Au from 52m
(incl. 3m at 24.3g/t Au from 52m)
WSRC12063 : 4m at 8.4g/t Au from 36m
(incl. 1m at 25.4g/t Au from 37m)
● Infill RC drilling within the southern portion of the planned Wagtail North open pit continues to confirm continuity of the Inferred resource lodes. Significant results include:
WNRC12123 : 3m at 7.6g/t Au from 96m
WNRC12129 : 2m at 10.8g/t Au from 92m


Aswell as
http://www.asx.com.au/asxpdf/20120615/pdf/426v66ttw0ttmt.pdf


● Second set of results received from reserve definition drilling within the planned Wagtail South open pit intersects further shallow, high grade gold mineralisation. Highlights include:
WSRC12055 : 8m at 24.3g/t Au from 15m
(incl. 2m at 71.3g/t Au from 18m)
WSRC12039 : 4m at 6.7g/t Au from 20m
WSRC12008 : 3m at 8.8g/t Au from 4m
(incl. 1m at 22.7g/t Au from 4m)
WSRC12026 : 1m at 8.3g/t Au from 56m
2m at 7.4g/t Au from 59m
2m at 12.4g/t Au from 67m
● Final results from infill drilling at Wagtail expected next week in advance of results from the Western Reef and Paddock Well exploration targets.


Director Retter buying on market
http://www.asx.com.au/asxpdf/20120522/pdf/426dc7sd7d6j5b.pdf
http://www.asx.com.au/asxpdf/20120515/pdf/42683wb3wbz190.pdf
http://www.asx.com.au/asxpdf/20120510/pdf/4265m52q5df1rk.pdf



More news to flow, tight capital strucure, cash in hand, shallow deposits. SP weakness potentially providing a buying opportunity. There is alot to like about BNR


Barney, or anyone else have an eye on this?

 

[barney]

BNR released announcement this morning regarding Nicholson's North.
COLOR]

Howdy Springhill ..... i thought I was in this room by myself

Yeah, been following BNR for some time and as you say, lots to like about what they have. Only a relatively small deposit, but they have their own processing plant which is almost unheard of with a $6 million Spec.

I have spoken to the Company, and they are quietly confident. Each time they put out upgrades like to today it gives them more ammunition for Financing arrangements, and their finacing is already under early negotiation.

Conservatively they stand to clear about $10 million per year for a five year mine life if the project goes ahead. If you put a PE of even 5 on that, it makes the $6 million market cap look pretty silly. The market however is not kind to Specs at the moment, so until the financing is set in stone, the SP will probably wander around.

It wasn't that long ago you couldn't buy these at less than 14 cents ..... One serious buyer and it could be back there in a flash, so anything under 10 cents looks low risk. (all just my opinion of course)
Cheers.

 

[prawn_86]

Conservatively they stand to clear about $10 million per year for a five year mine life if the project goes ahead. If you put a PE of even 5 on that, it makes the $6 million market cap look pretty silly. The market however is not kind to Specs at the moment, so until the financing is set in stone, the SP will probably wander around.

5 year mine life is very low. What are the chances of resource expansion?

I personally think a PE of 5 on a 5 year mine life, with an as yet, untested 'near term' producer is on the high side. I guess what i'm asking is, how do they propose to spend that $50m they stand to earn in order to best maximise shareholder returns?

 

[springhill]

5 year mine life is very low. What are the chances of resource expansion?

I personally think a PE of 5 on a 5 year mine life, with an as yet, untested 'near term' producer is on the high side. I guess what i'm asking is, how do they propose to spend that $50m they stand to earn in order to best maximise shareholder returns?

I guess that i why they are drilling Nicholson north and south.
There is another target in between nicholson and wagtail (name escapes me atm) they believe is worth exploring. So i would say chances of resource upgrade are pretty good.
How they plan to use the $50m is a question for mangement.

You are alone no longer Barney, this will be on my number 1 watchlist

 

[barney]

5 year mine life is very low. What are the chances of resource expansion?

I personally think a PE of 5 on a 5 year mine life, with an as yet, untested 'near term' producer is on the high side. I guess what i'm asking is, how do they propose to spend that $50m they stand to earn in order to best maximise shareholder returns?

All fair questions Prawn. Lots of details in the Company announcements re resouce possibilities. Best to approach the Company direct for specifics regarding their future plans. The PE of 5 was simply a "Post Production" hypothetical figure. For example, if they get this to Production and have say $15million in the bank after a couple of years or so, I really can't see their market cap at $6 million irrespective of the five year mine life. Even with a PE of 1, $15 million cash would give them an SP of 20 cents ..... Bear in mind these are very rough figures I am throwing around ..... It is a Spec play, and should be treated as such.

You are alone no longer Barney, this will be on my number 1 watchlist

Lol ...... As a fruit picker (Grower ... my aplolgies), I imagine you would also be used to talking to yourself a lot ..... apples don't say much!


BNR purchased a little land off NST a while back called Golden Crown .... Open pit with 33,000 of Gold atm. Only a little extra resource at this stage, but i like the fact that NST took their payment in BNR shares

 

[springhill]

Exploration Activities Update


● Assay results from first pass reconnaissance drilling along the northern extent of the Paddock Well prospect confirms potential for shallow gold - silver mineralisation. Highlights include:
PWRC12001 : 5m at 1.5g/t Au and 9.6 g/t Ag from 15m
PWRC12002 : 2m at 4.3g/t Au and 16.1g/t Ag from 11m
PWRC12013: 3m at 2.0g/t Au and 20.9 g/t Ag from 20m
PWRC12014: 3m at 2.7 g/t Au and 21.8g/t Ag from 50m

● High grade quartz veining outlined at the Hyena prospect along strike of the Nicolson’s North discovery with rock chip results of 22.4g/t Au and 32.6g/t Au returned

● Return of drill rig confirmed for later this month to continue evaluation of the promising Nicolson’s North prospect

● Resource and reserve estimation work on Wagtail and Rowdies proceeding to schedule with results expected in coming weeks

● Bulletin continues to grow its land position in the Halls Creek region. The Company has entered into a 2 year contractual licence with Northern Star Resources to explore Exploration Licence E80/2612, adjoining the Lamboo Gold Project, and E80/4001, covering a high grade gold discovery located to the north of Halls Creek. Bulletin has also been granted an option to acquire a 100% interest in the tenements.

 

[barney]

It wasn't that long ago you couldn't buy these at less than 14 cents .....

A couple of months makes a big difference in the life of a Spec

I see a lot of Goldies on the move today ....

NCM currently up 1.7%

RED .......... up 1.8%

ABU ......... up 4%

DAU (low volume) .. up 10%

BNR hasn't moved and its surprising how much they've been hammered recently. Probably due for a Cap raise soon which could have something to do with the poor SP performance.

Pros:

Proven mineable resource (small scale, but potential for increase)

Own Processing Plant

Current market cap of $3 million (The Plant and equipment is worth more than that)

At the current POG I estimate their current resource is worth around $40 million. If the Gold price increases, every $100 adds 20% to BNR's bottom line. If they can increase their reserves that will give them a buffer against the POG falling.

Its a punt, but for me its a reasonable risk/reward at these levels and I've been accumulating as such (All imo and dyo etc etc)

 

[barney]

BNR[/B] hasn't moved and its surprising how much they've been hammered recently. Probably due for a Cap raise soon which could have something to do with the poor SP performance.

Pros:

Proven mineable resource (small scale, but potential for increase)

Own Processing Plant

Current market cap of $3 million (The Plant and equipment is worth more than that)

At the current POG I estimate their current resource is worth around $40 million. If the Gold price increases, every $100 adds 20% to BNR's bottom line. If they can increase their reserves that will give them a buffer against the POG falling.

Its a punt, but for me its a reasonable risk/reward at these levels and I've been accumulating as such (All imo and dyo etc etc)

A few minnow Goldies starting to work off their lows lately....... At the current levels BNR could prove to be a Sleeper, particulally if they prove up a bit more resource which is starting to look likely, if the recent Progress update from Management works out

Bulletin’s Managing Director, Martin Phillips commented: “The outstanding work by our geological team along the Nicolson’s and Paddock Well trends is starting to demonstrate the presence of a significantly larger mineralised system than previously anticipated. Mineralised quartz vein exposures have now been confirmed along the granite contact for a combined strike length of 5km.

Some impressive rock chips in the latest update as well .....

Two mineralised trends outlined for immediate RAB drill testing, with significant rock chip results ranging from 3.1g/t Au to 38.8g/t Au● Strike extent of Shifty’s prospect at Paddock Well grows to 500m with significant rock chip results ranging from 3.1g/t Au to 53.7g/t Au returned from several vein outcrops

 

[barney]

Too early to call it a reversal for BNR, but Gold having a peek at $1770 tonight won't do any harm.

 

[barney]

Too early to call it a reversal for BNR, but Gold having a peek at $1770 tonight won't do any harm.

Gold continues to firm up ..... Final hurdle for BNR now is a $20 million debt facility required to turn them from a junior explorer to a producer ...... negotiations with several Banking institutions has been initiated.

Based on their current probable reserves, they will have up to a 3 year pay back period .... After that they will be generating free cash flow of possibly $10 million per annum?? ....... factor in the potential of further resource upgrades from their inferred/indicated reserves ...... plus ........ The initial 30,000 ounces ($15 million profit) from the tenement purchased fron NST and the potential upside from further resource drilling on that land .........

And all that for a market cap of less than $6 million !!

Latest Company report gives all the details, but if they get funding, this will not be a $6 million Company for much longer.

Increase in shares traded over the last month ............ tightly held and fairly illiquid, so picking them up now under 8 cents could be difficult ....... although it wasn't so long ago you couldn't get them for less than 14 cents, so maybe 8-10 cents is still cheap?? I have my quota, so happy to sit on the fence for the time being.

 

[barney]

Latest report just out from Peter Strachan paints a solid picture for BNR.
http://www.bulletinresources.com/docs/BNR_20121028_0954.pdf

Its only a small operation in the early stages, but will still generate some healthy profit for a fledgling small cap.

The fact that it is commercially viable with their current modest resource means future drill results will be cream on top. As pointed out in the Report by PS, results such as ..... Nicolson’s North a spectacular hit of
12m @ 13.6g/t opens up a 3 kilometre northerly extension along the Hyena trend. That is a seriously good strike

This week Angus Geddes from Fat Prophets has also taken a 6% stake in BNR at the 8.5 cent Cap Raise price which looks positive.

They expect a Debt Funding arrangement to be finalised by the end of the year with first production planned within four months of that which would be a pretty impressive achievement. If the POG holds firm, or hopefully starts to edge back up, this could turn out to be a handy little operation over the next few years ... Happy to hold.