ATW Ventures (ATW-TSX-V $.36) – The following commentary on ATW was received from Doug Beiers of The Simple Investor Ltd. www.thesimpleinvestor.net
ATW currently has approximately $9.7 million cash and needs/commitments are as follows:
- a $3million payment is due in 2009 for Gullewa
- a $1million Bond and $800,000 Stamp Tax are also due at Gullewa before they go into production
- $3.5 is budgeted to get Burnakura into production
Graham Harris commented “we may look to raise the $3.5 million for Burnakura in debt thus freeing the cash for exploration at Gullewa. Any good numbers from drilling the gravity extensions will confirm our belief Gullewa is a multi-million ounce deposit.”
Burnakura Gold Mine
Current drilling is focusing on the NOA2 deeps where recent drilling returned 11m of 9gpt. A batch of drill results will likely be released in a couple weeks or so. A modified mining plan is underway partly based on recent and new drill results.
Gullewa Gold Mine
Gullewa has the potential to be on a MUCH LARGER scale than Burnakura, with multi-million ounce potential and larger scale production. Also, Gullewa is proving up to be bigger and better than they originally hoped for, and will likely be primarily an underground mine. This mine is thought to go into production sometime in the next 12-24 months, possibly 12-18 months. The Company’s position at this time is that it is premature to comment on a mining start date until more numbers are crunched. Also from Mr. Harris “…the company has submitted the previous Snowden feasibility to Mining Plus in Perth to be viewed in light of current metal prices and utilizing an underground vs open pit mining plan.” I expect the company to comment on this in the fairly near future.
Misc:
- Diesel energy as an overall cost on both projects works out to about 5% (not significant)
- RAB Fund blew up and they hold (held) 1.7 million shares which are currently being dumped on the market
- President Brent Butler is getting together with key staff for a planning session this coming Monday. I expect news release preparation and advanced stages of mine planning will be on the agenda. The AGM is September 30th.
- Management and key staff own approximately 20% of outstanding shares
With a MC under $18 million, 2 gold mines producing (likely) within 2 years plus considerable cash on hand, I am quite bullish. I expect that a substantial update will be worked on in advance of the September 30th annual meeting so we should be much better informed sometime over the next 2-3 weeks.
Tags: ATW+Venture
