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jervois mining , the one to watch >>>>>

  1. Lunch time
    By Michael West
    June 26, 2002
    FRANK Sources was back from Europe. It was about time. Stories had been hard to come by. Lunches had not been quite so enjoyable in his absence, nor quite so long.


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    He had brought one of his brokers along this time, John Duckanweave, a man whose impeccable logic had led him to believe: "It is always darkest before dawn. So if you are going to steal your neighbour's newspaper that is the time to do it."

    Duckanweave: "How was Zurich Frank?"

    Sources: "Good old Zurich". He shook his head. "That Bahnhofstrasse, I don't know how they do it; but by the time you get to the end of the street, you've got no money."

    Duckanweave: "Must be a few pubs in the street."

    Sources: "A closed mouth gathers no foot John."

    We struck up a bet. It was never good enough for Sources and Duckanweave to merely punt the market. They had to have a punt on a punt. And so it was that we agreed that the best call a week from now would foot the next lunch bill.

    The good oil

    NATURALLY this wager did not carry heinous pecuniary implications for Marge, as Rupe would gladly proffer reimbursement, secure in the knowledge that his loyal footsoldier Marge – intrepidly – was on the trail of ground-breaking scoops while passing on sage observations to the readership of this glorious publication.

    Duckanweave: "Polartechnics lads, the magic wand. That's my pick."

    Marge: "But Tony Grey's been selling."

    Duckanweave: "My information is highly confidential."

    We suspected Duckanweave was probably full to the gills with the Polars and looking to slot his PA position straight into Sources the very minute he'd polished off his Muscat de Baumes de Venices.

    Sources: "I'll go with Jervois Mining. They'd just bought into Bullabulling and the boys'll run the stock."

    Marge: "Didn't Resolute own that? Low grade, never made a buck out of it?"

    Sources: "Doesn't matter, the golds are running. And we're talking Ian Murray, Brian Frost, Pottsie, Bobby Pittorino, Talkie Newton, Peter Grey ..."

    Duckanweave: "Crikey! The whole team! What about you mate?"

    Marge: "Oxiana. The old fave. Can't say too much."

    We'd reconvene on that one next Tuesday. Hot on the trail MARGE: "Still keen on the golds?"

    Sources: "I'm starting to look at a few explorers. Don't mind this Gateway Mining. Bit of tax loss selling now but in the next month or so they might get some good hits.

    "Got $3 million in cash. Gidgee area. Patience and persistence is paying off. They've drilled out 6000 metres, had 16m @25g/t, 6m @30g. It's shallow, high-grade. The structure looks eneschelon – stacked quartz shoots. Even had 1m @173g. It's a punt. But Montague mined a few pits next door and Gateway's got 450sq/k of tenement.

    "Could be a drill and kill but they've just started up RAB drilling again and a few nice hits might do the trick.

    "Still sitting on the producers though. The way I see it the $US is under pressure. It takes $2 billion a day just to feed the interest bill on their current account deficit.

    "Then there's Iraq. India/Pakistan. We've got mine production bottoming out at 25,000-26,000 tonnes. Exploration's only back on the boil now. High-grading's exhausted a lot of the good stuff. Demand's running at 4800 tonnes. The central banks have pulled back. The bullion banks have borrowed from the central banks.

    "Inflation looks unsustainable at these levels thanks to the strong dollar. Equities still look overvalued and there are still massive gold shorts out there.

    "Then there's the dollar reserves building up in the Far East. Especially China. Even central banks have human beings in them."

    Were we on the cusp of another explosion in the price of the yellow stuff, as had occurred in the 1970s?

    Who knows?

    We might have gone on from there. On and on. Yet there was space to fill in the paper, content to be provided.

    Some poor sod had to do it.

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