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[JonW]

HEG.AX

Like my last post on Aussie mining stocks been meaning to post for a while now and not getting the time to do it justice. There is new news out overnight from Oz that may change this soon:-


Sydney - Wednesday - May 20: (RWE Aust Business News) - Hill End Gold (ASX:HEG) has found that the Reward prospect's 640 level drive continues in coarse gold to the north along the Mica vein set with partial grades in the M1 alone of up to 420g/t gold over 0.3 metre.
The drive is initially advancing along the M1 and then being stripped out to open the M2 in the hanging wall.
Total grades over one ounce per tonne over the 3 metres width, including both the M1 and M2, have been intersected.
The drive extension opens up the Reward resource area to the north of the current workings for a further 100 metres. New production rises will be put in at 50 metre intervals for the wide Mica vein set and to access the high grade Paxton's above 671 level.

I've always liked this stock and it has been languishing down around A$0.16 for a while now and close to 12 month low. My thoughts have been for a while that before this breaks 20c would be the time to get in. I think breaking that ceiling would be significant. Price up slightly to $0.175 at close last night as I think the above news broke at the close.

Here's a little bit of info but do your own DD:-

Hill End Gold Limited (HEG) is a strongly growing junior gold mining company with a clear focus on increasing resources and profitable gold production.

The Hill End Project tenements in New South Wales, Australia cover 1,210 square kilometres including the rich historical Hill End, Hargraves and Windeyer Goldfields, which together were one of the world's richest gold mining areas. Previous underground production averaged up to 10 ounces per tonne and large specimens were mined containing up to 3,000 ounces gold.
The HEG development strategy for the Hill End Project is to increase gold production from the Hawkins Hill - Reward deposit at Hill End and to develop the larger Hargraves BNH deposit with a targeted resource potential for the Project of 4–5 million ounces.
HEG commenced underground production from Hawkins Hill – Reward in 2008 and is extending and opening up resources to determine the scope of the mine for expansion planned during 2010.
At Hargraves, which is located 35km north of Hill End, HEG has partly diamond drilled the BNH deposit to a depth of 400 metres with intersections up to 4.2g/t over 75 metres from near surface. The deposit was discovered in 1851 with a 50kg piece of gold in quartz at surface and has been mined to 50 metres below surface. HEG plans further drilling to delineate resources beneath the extensive old workings at BNH and adjacent zones.
In Laos, the Lak Sao Project application area is located on the Troungson Belt, which also hosts the giant US$15b Sepon copper-gold project operated by Oxiana Limited. The Lak Sao area has numerous base metal and precious metal anomalies identified by previous prospectors, which are to be explored for the first time. Approvals for the Lak Sao Project Mineral Reconnaissance and Exploration Agreement are currently being processed by the Laos government and further development opportunities are under review.

Annual Report 2008:-

http://www.hillendgold.com.au/index....wnload&gid=337

Website is informative:-

Hill End Gold Limited - Home Page

Like most exploration and mining stocks it has come through a period of financing and commodity price issues but I think as a year plus prospect this operation has merit.

Hope it's useful.

Cheers,
JonW

[JonW]

Originally Posted by JonW HEG.AX I've always liked this stock and it has been languishing down around A$0.16 for a while now and close to 12 month low. My thoughts have been for a while that before this breaks 20c would be the time to get in. I think breaking that ceiling would be significant. Price up slightly to $0.175 at close last night as I think the above news broke at the close.

Those of you that have been listening to my thoughts on this might like to know that it was up to A$0.19 overnight +11.76% so we are getting close to breaking that ceiling. Maybe the last chance at these price levels.

JonW

[Insider]

Hi Jonw, nice heads up. Iam going to look into this stock today to do my own DD for a bit to form my own opinion. I still hold grange Resources (iron), but i could make a little swap as i am not that enthousiastic about them anymore. Thanks for the inital info,

Best regards

Greg

Edited 24/5/09
Just got of the phone with an australian broker and asked him some questions about HEG. He "warned" me that one of the mines has a problem with nuggety veins; the problem with that is that its very very hard to estimate howmuch gold there is exactly. One spot you have lots of gold per ton while one meter to right or to the left for example is just dirt. This aint new information, but more like conformation of the risk involved.

They have the other mine as back-up, so they can always produce, but the interesting part of HEG is hill end mine. I will wait out for more news about the proven goldreserves there, as the gamble is a bit too high in risk taking for me. He also said he believed in the large potential, but we all know that goes hand in hand with risk taking.

I will keep an eye on HEG. Best regards, greg

[Insider]

Hey JonW,

did you know this stock is also trading on the pinksheets? Gumshoe has an article about the manupilation of that stock: Stock Gumshoe Investigates: “Tiny co. strikes gold in abandoned mine” Chuck de Castro. this was i believe in jan 2009.

The main problem with it is in my opinion that their reserves in Loas aint proven yet as far as i could find on the net, and that due to nuggets in the veins in AUS, its hard to estimate howmuch exactly they can get out of there. Although i do think it has potential for sure as they can drain water now from deeper depths then they could in the past. I am putting it on my shortlist and will see if they can break through the .2$ next week as i will have to sell some grange with reluctance then (bought them a yr ago at $1.30 orso , and i will hold intrepid and Regis) to be able to buy them.


Best regards

Greg

[JonW]

Originally Posted by JonW I've always liked this stock and it has been languishing down around A$0.16 for a while now and close to 12 month low. My thoughts have been for a while that before this breaks 20c would be the time to get in. I think breaking that ceiling would be significant. Price up slightly to $0.175 at close last night as I think the above news broke at the close.

Okay Insider & anyone else who's listening!!

News before last nights Aus market (no holiday there!) has now pushed the stock through the A$0.20 barrier with a +15% lift to A$0.22. Last chance saloon to get on this one as I predicted. The news which pushed it was:-

Hill End Gold Ltd (ASX: HEG) has upgraded the Hill End gravity gold processing plant to increase throughput and to reduce downtime, while maintaining gold recovery at an excellent 97% with no change to the process design.
During the March quarter, gold production was 2,110 ounces from 4,514 tonnes at 16g/t gold was a 75% increase over the previous quarter.
High grade gold production at Hill End is forecast by the company to increase to 4,000oz/quarter at $500/oz during 2010. Hill End / Hargraves Project potential is estimated at 4‐5m ounces.
The maintenance and plant upgrades were carried out according to plan.

Link:-

Stock Market Quotes Business News Financial News investor news investors - Hill End Gold increases throughput at Hill End Gold plant - Hill End Gold

Hope some of you have got in on this one - so far it has done everything I promised and it has a great future.

Cheers,
JonW

p.s. I buy on the ASX, Insider confirms above it is also on the pink sheets but I find I prefer to trade at the better price on ASX (through my Charles Stanley Gold Dealing Account) but be aware you will suffer a slight trading delay this way unless you pay about $100p.a. to have the certs held locally

[Insider]

*grumbles*
Nice call JonW. i feel bad as i yesterday night i did sell of some Grange, but not to buy HEG, but more Intrepid XD. Iam soo gonna call my australian broker as he pointed the risks involved out to me in investing in HEG . but fair is fair, he was doing his job and i made the decission.

So what do you think, should i try to get in tonight at .2$-.22$ or just keep my eye on it and "hope" for a small setback? I want to try to get a small position.

Best of luck on the ride and it will be interesting to see what the future will bring for them.

Greg

[JonW]

Hey Greg mate,

Listen, the only bad decisions are the ones that lose you money!! Missing something that's good is annoying but you can't get in them all - well I can't anyways!!

You could wait for a pull back - it might tip below .20 again briefly if there is some profit taking from the guys in at .08 but it could also just push ahead now. From a selfish point of view I'm hoping it keeps on pushing now 'cos I'm way ahead on the ROEx as well from when I bought!!

Good to have had your interest in it though, you will have seen few people on the Aus/Asian markets threads - I really hope you get an IN - it would be good to have someone to share the excitement with!!

I'm just pleased it did exactly what I said to this point!!

Cheers,
JonW