I first bought this a couple of years ago on it’s U potential, which was IPO’d, but it’s really a polymetallic company with some significant iron potential. Time to revisit I think.
158m shares @ 80c = $126m cap
Cash $10.5m
Investments valued at $36m
Top 20 shareholders own 55%
---------------------------------------------------
Overview from the company
Giralia's primary objective is the discovery of significant precious and/or base metals mineralisation through the identification, acquisition and exploration of targets with the potential for world class mineral deposits.
Shareholders have exposure to a multi-commodity portfolio of mineral exploration properties in Australia and overseas, which the Company acquired at the bottom of the market. Where clear, high potential targets amenable to rapid testing are identified, Giralia seeks to maximize its involvement by sole funding exploration programs on 100% owned projects to accelerate development. Over 42,000 metres of drilling were completed on the Company's tenements in 2005.
Giralia has unlocked substantial shareholder value through commodity specific spin-offs, and holds significant interests in PMH and RHI, and UTO. They’ve also announced the intended spin-off of its zinc assets into Zinc Co Australia Limited.
------------------------------------------------
They have so many projects that I don’t know how they keep track of them. (See map below, to be more confused)
For this discussion I’m going to briefly mention all of them, but concentrate of their Iron assets, as fe is the flavor of the month.
--------------------------------------------------
Iron Projects (other than RHI investment)
Earaheedy, Western Australia (Zinc, Iron Ore)
Australia’s second largest iron formation belt.
100% owned project with ore grade zinc intersections and high grade iron at surface.
75m @ 62% fe
Aeromagnetic survey Aug 07
Approvals for drilling awaited
Western Creek
Pilbara, 10km w of Newman, adjoins BHP Mt Newman Western Ridge. Prairie Downs deposit to the west. Potential in Hamersley and Archaean BIFs, and for CIDs.
Deebyn - Weld Range Mid West Iron Ore Provence
Outcropping DSO Hematite directly along strike from MWE/Sinosteel JV – 50-70m @ 63-67% fe.
GIR drilling in may included hits of 30-36m @ 60% fe, from 6-70m depth.
Main hematite zone 25- 45m thick.
65% of assays returned, the remainder are overdue.
Further drilling planned this half for an initial resource.
Also:
Beebyngana Hill untested Hematite zones, 11km of BIF strike, surface samples to 60% fe – potential. Not much detail on this.
McFee Creek
200km SE of Port Headland. Two known prospects, on CID 3.5 km long with surface grades 58.7% fe, drilling up to 57.3% fe. Also, 8km of Achaean BIF up to 1km thick with a known zone of hematite enrichment.
Resource drilling in this half.
Yerecoin
150km N Perth, 1km from rail. Archaean BIF with up to 5km strike inferred aeromagnetics, with widths 30-50m, grades 35-48% fe. Test work in progress.
-----------------------------------------------------
Other projects
Snake Well, Western Australia (Gold, Zinc)–
100% owned advanced gold project , with existing gold resource of 2.49 million tonnes @ 2 g/t Au, plus numerous immediate drilling targets along a 15 kilometre magnetic unit with RAB and RC intersections including 8 metres @ 25.3 grams per tonne gold, 13 metres @ 6.32 grams per tonne gold, etc. Nearby felsic volcanics host high grade zinc intersections.
Daltons, Western Australia (Nickel, Platinum Group Elements - PGE)
Giralia has earned 75% interest in 2 tenements in the Pilbara block of WA, with high grade nickel intersections in previous drilling, and surface gossans with extraordinary PGE grades. Falconbridge has agreed to farm-in to explore regional targets for nickel sulphides, with Giralia and Haoma retaining the Kingsway prospect.
Lake Frome, South Australia (Uranium)
Tenements surround operating Beverleys in-situ leach uranium mine; very prospective for extensions/repeats. Giralia free carried at 25% to decision to mine.
Ashburton, Western Australia (Gold)
Key landholding in exciting new gold province. (Total of $4.7 million in partner funded exploration).
Blue Rose, South Australia (Copper, Gold)
Major joint venture with widespread copper, gold anomalies and geophysical targets. RC and RAB/aircore drilling returned significant intersections including 24 metres @ 2.14% copper and 48 metres @ 1.01 grams per tonne gold, 0.82% copper.
Munro Bore, Western Australia (Gold)
Highly gold mineralised property; many ore grade and width drill intersections.
Yuinmery JV , Western Australia (Gold)
Control of almost entire Archaean greenstone belt. Untested high order gold in soil anomalies.
Kathleen Valley JV , Western Australia (Gold, nickel, tantalum)
Gold resources and nickel, tantalum prospectivity 5 kilometres from the Cosmos nickel mine. Drilling on gold targets in mid 2002 returned high grades, including 5.9 metres @ 12.1 grams per tonne gold.
Cardinals and Mt Alexander Western Australia (Copper, Zinc, Lead)
Advanced 90%-100% owned base metals projects with ore grade drill intersections.
Mt James (Clevermary/Big Bend) , Western Australia (Gold, zinc)
Two contiguous tenements in the Gascoyne Province. Clever Mary covers a 'greenstone hosted' gold prospect with ore grade/width intersections. Big Bend is a possible 'sedex' zinc occurrence in Mid Proterozoic sediments. Talisman Mining NL has agreed to earn 60% interest.
Beebyn and Avoca Downs, Western Australia (Gold)
Large 100% owned gold prospective tenement packages in the Murchison and Eastern Goldfields provinces, covering under-explored major mineralised structures.
Dicky Lee/Albury Heath, Western Australia (Gold)
Royalty interest in granted mining leases covering gold resources close to an operating mill.
Bocrabee Hill, Western Australia (Copper, lead, zinc)
Giralia retains a 15% free carried interest in this base metals prospective property on the western edge of the Paterson Province.
-----------------------------------------------------------
Investments (see slide below for more details)
PMG (11%)
RHI (16%)
UTO (12%)
ZNC (62%)
------------------------------------------------------------
Anyone care to put a value on all of these projects?