Re: San City Google Earth - Ivanhoe sells stake in Jinshan
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Message: A very interesting article on patience in the junior sector
This is in today:
Ivanhoe Mines sells Jinshan Gold stake
The Associated PressThursday, April 10, 2008 VANCOUVER — Ivanhoe Mines Ltd. its selling its 42 per cent controlling interest in Jinshan Gold Mines Inc. to China National Gold Group Corp.Ivanhoe said Thursday it will receive $3.1115 per share for each of its 67.5 million Jinshan shares, a total of just over $210-million, plus a two-year $7.5-million promissory note paying 12 per cent.“This is the first step toward the formation of a long-term strategic partnership between Ivanhoe Mines and China National Gold Group that will focus on gold and copper exploration and mine development opportunities in China,” Ivanhoe chairman Robert Friedland stated in announcing the deal Thursday.Ivanhoe will retain one-year warrants to purchase up to 1.5 million Jinshan shares at $2.50, and will record a gain on the sale of its interest in Jinshan in the second quarter.Jinshan, headquartered in Vancouver, began producing gold from its CSH Mine in Inner Mongolia last July, and has produced 33,280 ounces to date, ramping up toward projected output of 120,000 ounces a year.© The Globe and Mail
Compare this to what we have at SGR, the sale of the shares was for 3.1115 per share.
Jinshan released a 43-101 in February with:
3.9 mm in measured and indicated, and 2.1 mm inferred.
These numbers are the total of their China mines. Today the share price is trading around 3.00. They are also in the midst of proving up what they have and exploring a large strike on their properties, not unlike SGR.
So a combined number of about 6 mm ounces is paying out 3.00 and they are ramping up production to about 120,000 ounces, what does this say about a potential price target for SGR?
In my opinion, the 43-101 is important, but if this company is to go the course on there own, ultimately the production results are going to play a big factor in what the SP is going to be.
Q3 and Q4 are going to be important in the life of this company, and should decide where they are going in the future.
Regards, AndyK
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