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GLR Resources


frizzers

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I am going to meet the management of this company next week.

Does anyone know this company or any of the personnel below?

Frizz

 

GLR Resources Inc

Recent Price: C$0.46

Market Cap. : C$20.5m

52 Hi / Lo: C$0.27 – C$0.64

Treasury: C$2m

Shares Outstanding: 46m

Options & Warrants: 7m @C$0.46 +

Website: www.glrresources.com

 

Management / Key Personnel:

 

Bob Kasner - President and CEO Mr. Kasner has been involved in the mineral exploration and development industry for over 40 years. Mr. Kasner is also the CEO and President of Uranium City Resources.

 

John Orr, P.Eng. - Chief Operating Officer Mr. Orr is a mining professional with over 25 years experience. He has considerable experience with underground and open pit mining operations in both the base metal and precious metal sectors.

 

Malcolm Bucholtz, B.Sc, MBA - V.P. Investor Relations Mr. Bucholtz has 16 years experience as a Metallurgical Engineer in the manufacturing sector. Immediately prior to joining GLR Resources he was an Investment Advisor with a leading independent brokerage firm in Canada.

 

Primary Project: Goldfields Project GLR Resources has identified a proven and probable Gold reserve of 601,000 ounces, a measured & indicated resource of 151,000 ounces and an inferred resource of 111,000 ounces on its ‘Box’ deposit. Drilling has suggested the Gold mineralization continues at depth. A bankable feasibility study has been completed and project financing has been arranged through Investec Bank (U.K.).

 

A 43-101 Resource calculation on the nearby Athona deposit property has shown a measured and indicated resource of 289,000 ounces Gold. A feasibility study for this deposit is currently being completed. An Environmental Impact Study has been submitted to the Saskatchewan government and full permitting is anticipated very soon.

 

The area around these two deposits also hosts numerous geological indications similar to that evident at the Box and Athona deposits. GLR Resources anticipates being in a position to commence Gold production on the Box deposit by late 2008 or early 2009 thus making it Canada’s next Gold mining company.

 

Other Assets: Kirkland Lake Properties GLR's property claims in the Kirkland Lake region consist of the Hurd McCauley property, the Kirkland West property and the former producing Omega Mine property. The Omega Mine property is situated 4 kms west of the former producing Kerr Addison Mine which produced 10 million ounces Gold in its lifetime. The Omega Mine itself produced 250,000 ounces Gold in its lifetime.

 

Thunder Bay District GLR has a 50% interest in two properties in the Hemlo-Shebandowan greenstone belt located west of Thunder Bay, Ontario.The Goldie property exhibits several attractive geo-physical targets with base metal/precious metal potential. 2007 will see further drill testing of these targets. The Stares-Calvert property hosts a considerable amount of glacial boulder debris exhibiting over 10% Zinc. 2007 will see a continuation of efforts to identify the in-situ base metal deposit that is the host of this glacial debris.

 

Casa Berardi, Quebec Property GLR holds a 100% ownership in 1040 acres of highly prospective property in north-west Quebec, east of the now producing Aurizon Mine. Historic drilling on this property has returned some attractive results.

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Market Cap. : C$20.5m..........

 

 

Primary Project: Goldfields Project GLR Resources has identified a proven and probable Gold reserve of 601,000 ounces, a measured & indicated resource of 151,000 ounces and an inferred resource of 111,000 ounces on its ‘Box’ deposit. Drilling has suggested the Gold mineralization continues at depth. A bankable feasibility study has been completed and project financing has been arranged through Investec Bank (U.K.).

 

 

wow...that's only $27 in market cap per M&I ounce. The average junior trades somewhere around $75/oz.

Wonder what the catch is? I will try to research some this coming week.

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1. What companies did management previously work for? Specific accomplishments?

2. According to the Management Information Circular, Mr. Kasner was apparently fined this year for trading while under private placement restrictions. According to the website he has been in this industry for over 40 years. Why would he not be aware of the trading restrictions if he has been working in the industry this long?

3. Why so much turnover in the Board of Directors recently?

4. What is the status of permitting and environmental compliance?

5. Are there any aboriginal groups with interests that could delay/frustrate permitting approval?

6. How much of the construction capital will be debt financed and how much will be equity financed?

7. Silver is mentioned in feasibility study as being recovered historically by Cominco from the old underground Box mine. Is there any silver contained in the open pit deposit? If so, is it recoverable?

 

 

P.S. - The economics on this one look pretty good although it is low grade ore. I am interested. Need more info on financing.

 

P.P.S. - There are ~2.3M in-the-money warrants expiring in November. Now thru November might be a good time to buy while warrant holders short into the expiry??

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I'm sorry, Ace. I didn't read this post until after I had met them.

 

My overall impression is that this is a very cheap company and significantly undervalued (at between $20 and $30 gold in the ground). They reckon their cash costs will be $280 per ounce and should be in production by Q1 2009.

 

They want to do a fundraising at .70c so need to get the price up to there to do so. they were just going to see their bank INvestec to decide on how to rase the necessary cash - though debt? Shares etc? So I'll report back.

 

This is on my list, but I do not think it will ever be the sexiest gold company around and so will likely trade below real value rather than above, as some companies seem to do, unless the gold market gets like the tech boom.

 

I am expecting a correction in gold coming soon and some Canadian tax selling, so I will put some stink bids in and hope they get filled.

 

This is a company that seems to tick a lot of boxes, but not all ...

 

I'll keep you posted as I hear news.

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I emailed the questions to them (Kasner and the IR guy) on Sunday and have not received a response yet.

 

GLR does appear to be undervalued but if management can't handle a few questions from a potential investor in a timely fashion than it makes me wonder about their ability to handle a $46M construction project.

 

From their latest press release: "In a Press Release dated August 21st, it was noted that Investec Bank had retained Micon Engineering to complete a due diligence review of the Goldfields feasibility study. The final comments from Micon Engineering have now been received by Investec Bank. Although some minor points are still to be addressed it is of the opinion of GLR there are no issues that will seriously affect the Goldfields project or its ability to pay back debt financing."

 

Not sure why they put this in the PR. Just makes me wonder what the "minor" points are and why they haven't locked up financing yet?

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Sorry Ace. Only just seen this.

 

I can only suggest they he didn't get back to you cos he's out and about promoting at the moment. And you know how emails if not acted on straight away can be overlooked.

 

Notice how price has shot up off GIP.

 

I'm afraid I didn't buy any in time.

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