In today’s daily we have covered stock research on Beadell Resources (BUY).









 
The S&P 500 was up by 6.75 points or 0.32%on Tuesday to 2085.29 points. U.S. stocks rose for a fifth straight session on Tuesday, with the Dow climbing above 18,000 for the first time ever after an unexpectedly strong report on economic growth. Both the Dow and S&P 500 hit intraday records, and the S&P is on track for its 51st record close of 2014. The gains pushed the Dow as high as 18,051.14, and the blue-chip index is now up about 175 percent from a 12-year low hit on March 9, 2009.

Nike, Visa Inc., Home Depot and Intel have paced gains during the gauge’s run to 18,000 in the second half of the year, with each rallying more than 19 percent from July 3 through yesterday. Caterpillar Inc. and Chevron Corp. have been the worst performers, with slumps of more than 14 percent in that period. Gross domestic product grew at a 5 percent annual rate from July through September, the biggest advance since the third quarter of 2003.



INTEL Daily Chart (Source – Thomson Reuters)
S&P ASX 200was down by 61.1 points or 1.12%on Tuesday and closed at 5380.9 points. Resources giant BHP Billiton dropped 3.5 per cent to $28.81, while main rival Rio Tinto shed 3.3 per cent to $55.81. Iron ore miner Fortescue Metals Group dropped 5.2 per cent to $2.55, while Australia’s biggest oil producer Woodside Petroleum shed 1.9 per cent to $37.97. Commonwealth Bank of Australia, slipped 0.5 per cent from the previous day’s all-time high to $84.96. Westpac Banking Corporation lost 0.8 per cent to $32.75, ANZ Banking Group shed 0.7 per cent to $31.87, and National Australia Bank fell 0.4 per cent to $33.06.
Insurance Australia Group  , owner of NRMA and CGU, fell 1.1 per cent to $6.28 as it warned shareholders the final claim costs associated with the Christchurch earthquakes of 2010 and 2011 would be more than forecast. SPI futures are up 31 points to 5370. The Australian dollar is trading at US80.90¢. Iron ore extended losses to the lowest level in more than five years. Ore with 62 per cent content delivered to Qingdao, China, dropped 1.6 per cent to $US66.84 a dry metric ton.

IAG Daily Chart (Source – Thomson Reuters)
 
Top Performers on the ASX 200 were :-


 
Stock of the Day - Beadell Resources Limited (BUY)

Beadell Resources (BDR) very recently released its Tucano Drill results which entailed emergence of the Tucano open pitable oxide targets as several oxide lode discoveries along the 7 km Tucano Mine Corridor and including Mirante, Gap, Tap C3 North, Tap D1 and now a new lode at Urucum, throughout 2014. The new discoveries along the 5 million ounces Tucano Mine Corridor reflect the yet to be realised value of the mineral system.


Tucano Drill Results (Source – Company Reports)

The results specifically reveal drilling from the sparsely drilled 1 km long “Gap” between Urucum and Tap C. At the Gap, a new west dipping lode has been discovered with results up to 24 m @ 5.7 g/t gold from surface.


Tucano Mine Corridor showing location of Gap, Tap C3 North, Tap D1 and Urucum (Source – Company Reports)

Infill drilling at Tap D1 has produced excellent results of up to 19 m @ 3.8 g/t gold from surface to end of hole and is now being re-modelled and added to open pit reserves. At Urucum, a new flat to west dipping lode has been discovered within the current open pit under a mineralised colluvium blanket.


Tap C3 North and Gap Targets Showing Location of New Drill Results (Source – Company Reports)

For the New Oxide Lode, Urucum – 9 m @ 9.3 g/t gold, open pit mining is progressing well through the area and has already exposed the first bench of this new lode in an area covering approximately 140 m by 30-50 m averaging 1.9 g/t gold.


2014 Half-Year Results (Source – Company Reports)
The Company also announced that the Mining Partnership Agreement with MACA Limited has commenced effective 1 November 2014, which will lead to a total of ~$40 million (including the US$15 million machinery lease facility currently held by BDR which may be either assigned to MACA or paid out) being deposited into BDR’s bank account. The Company looks forward to an outstanding quarter with high gold grades being processed from the open pits.


Plan-view of Duckhead Showing Recent Result, Step out Drilling and Near Mine Targets (Source – Company Reports)

An overview of the quarterly updates for period ending 30 September 2014 indicated that gold sales for the quarter were 41,657 ounces of gold with production of 33,793 ounces of gold. The cash costs were US$956 per ounce. Under the open pit mining, waste and ore mined tonnes for the third quarter was 50% above the previous quarter due to the end of the wet season and significant improvements in productivity. Under milling, record quarterly CIL plant throughput of 1,125,304 tonnes (4.5 million tonnes per annum rate) was witnessed. The resource and reserve development update revealed drilling intersected 32 m @ 33.5 g/t gold including 7 m @ 140.0 g/t located outside of the resource and reserve and below the current pit design for the Duckhead Main Lode. Further, strong infill drilling results included 18 m @ 90.3 g/t gold, 10 m @ 91.7 g/t gold, 28 m @ 47.3 g/t gold and 20 m @ 24.4 g/t gold indicating positive reconciliation to continue to be received in the December quarter. 7 m @ 10.2 g/t gold including 2 m @ 32.6 g/t gold, is located 200 m west of the previously delineated high grade zone on the Wing Lode structure of Duckhead Wing Lode. Several near surface oxide discoveries at Mirante, Gap, Tap C3 north and Tap D1 continue to provide incremental “non-reserve” additions to the medium term production profile. Positive results of the initial study evaluation of the Urucum underground project led to progression into Pre-Feasibility study. BDR also reported its CY2015 gold sales guidance of 180,000 - 200,000 ounces.
 

Following the appointment of MACA, CY2015 forecast open pit ore delivery to the ROM pad is 4,500,000 tonnes per year at ~1.4 g/t gold from the Tucano open pits. The Company further stated that post completion of the Duckhead pit in the December 2014 quarter, sufficient earthmoving capacity will be on hand to allow the level of consistent gold ore feed.


Tropicana East, Hercules Long-section (Source – Company Reports)

BDR further reported that a major re-logging program will be completed prior to any further drilling with regards to the Tropicana East. Then, for the Albany Fraser Belt, first pass reconnaissance drilling program is proceeding well.


BDR Daily Chart (Source - Thomson Reuters)

The entire game-plan is quite interesting and accordingly, we reinstate a BUY recommendation for this stock at the current price of $0.195.


 
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