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  • Digital Shelf Space Takes Sports Instructional DVDs To New Heights

    Digital Shelf Space (CVE:DSS; OTCQX:DTSRF) is a company that has grown dramatically in the last two years, with its home workout mixed martial arts inspired DVD series, called GSP RUSHFIT, exploding in popularity recently and beating out two top sports instruction brands in its path.

    CEO Jeff Sharpe tells Proactive Investors that plans are going "extremely well" with GSP RUSHFIT, which features Mixed Martial Arts welterweight world champion Georges St-Pierre.

    Indeed, even with St-Pierre out of the media since last year due to a major injury, the fitness DVDs reached the No. 1 spot on Amazon.com's (NASDAQ:AMZN) exercise and fitness top rated product list in June. The product has only been listed on the site for six months now.

    "We've seen business on Amazon grow month over month, and we saw more volume in June than we did in January, despite the fact that June is typically one of the slowest months of the year in terms of fitness," says Sharpe.

    "We definitely validated that it's a product that consumers like, and we are moving up the ladder very quickly."

    In terms of customer ratings, the company's GSP RUSHFIT product pulled ahead of Beachbody's P90x and INSANITY and Zumba, who took in second through fourth place in the exercise and fitness category.

    Sharpe also says the DVD series broke the top 10 in sales volume on an hour by hour basis, and is the only product to do so outside of Beachbody and Zumba products, long-time veterans in the space.

    The GSP RUSHFIT DVD series was launched in just December of 2010, and can be purchased directly through the GSP RUSHFIT website (www.gsprushfit.com) as well as Amazon.com and through other affiliate sites, and in a number of retail stores across the world.

    In Canada, the series is carried by major retailers such as Wal-Mart (NYSE:WMT), Future Shop, National Sports, Sport Check, Best Buy (NYSE:BBY) and Canadian Tire (TSE:CTC), and in the U.S. by The Sports Authority and Academy Sports and Outdoors.

    Sharpe says he hopes to see even more sales volume as St-Pierre is tentatively scheduled to return and fight for his title in November, the start of the peak retail season, with tons of media hype set to be surrounding the event.

    The company's CEO also hopes to see an uptick this fall in international distribution. The GSP RUSHFIT DVD series is already represented in more than 90 countries around the world through its global distribution agreement with Northern Response, with a presence in places like Australia and the Philippines.

    One particular extension of the product under the GSP RUSHFIT moniker is also in the works, and is currently still in discussions with St-Pierre's management, says Sharpe. Beachbody went the nutritional supplements route, while Zumba expanded into clothing and instructor certification.

    "We are continuing to look at extending the brand with ancillary product development."

    If the popular fitness series wasn't enough, Digital Shelf Space has looked to diversify its product portfolio, recently signing an exclusive video production agreement with Golf Experiences, LLC, operator of the PGA TOUR's TOURAcademy.

    The company managed to secure 1991 British Open champion and 17-time winner on the PGA Tour, Ian Baker-Finch, to be the host for the new TOURAcademy Home Edition DVD golf instructional series, which should be out "in a matter of weeks in terms of pre-order".

    The agreement, which includes the production, marketing, and global distribution of a direct-to-home DVD golf instructional series, will be marketed under the TOURAcademy brand name.

    "This DVD series is effectively one of the first of its kind in the space," says Sharpe, "and we are working on it 24/7, with a full rollout plan anticipated similar to what we did for GSP RUSHFIT."

    The company finished shooting the golf instructional series in April, and is ideally expected to hit store shelves this fall, through direct agreements and in partnerships with the TOURAcademy.

    Sharpe says Digital Shelf Space is also continuing to work with a handful of global brands for partner content deals, and would like to see at least one new agreement signed by the end of the year.

    "Deal flow is not our issue by any means - our phone is ringing off the hook," he says.

    "We have just got to be really selective with what we choose."

    Indeed, it seems that the CEO is not the only one that is more than confident in the "tremendous potential" of the company.

    Jul 24 11:55 AM | Link | Comment!
  • Northwest Resources Moving Out From Under The Radar With Mining Study Results

    Northwest Resources, (ASX: NWR) fresh from reporting high recoveries from floation testwork today, has revealed a Mining Study that demonstrates potential for a high-grade underground mining operation at the Blue Spec Shear Gold-Antimony Project.

    The Company has been under the investor radar but this is about to change with the release of the Mining Study, which included key pieces of data from the metallurgical study work.

    Following very positive results from both the Mining Study and first phase Metallurgical Study flotation tests a definitive feasibility study will be completed on the project by the end of 2012.

    Underground mining specialists Red Rock Engineering Pty Limited were engaged by Northwest to carry out the Mining Study.

    The Study demonstrated that over 1.0 million tonnes of ore can be mined from a combined Blue Spec-Gold Spec operation at a diluted head grade of 11.1g/t gold and 1.0% antimony.

    Total gold and antimony production in concentrate over the initial 5 year project life is estimated at 347,000 ounces of gold and 7,500 tonnes of antimony.

    Average annual gold production estimated is at 75,000-80,000 ounces in concentrate in years 2-5.

    Milling capacity is optimised at 250,000 tonnes per annum.

    A mechanised mining and a simplified cut & fill mining method will maximise ore extraction.

    The Mining Study identified the high likelihood of increasing the size of the mining inventory and extending the initial 5 year project life.

    The Mining Study has confirmed the viability of Northwest's plans to concurrently develop the Blue Spec and Gold Spec deposits as high-grade underground mines by way of separate declines from surface.

    John Merity, Northwest's Managing Director said "the results of the Mining Study confirm Northwest's belief that the planned Blue Spec-Gold Spec underground mining operation can be a substantial, low risk and low cost operation."

    Current mineral resource at the project is 328,000 ounces at a very high grade 20.7g/t gold & 7,900 tonnes of antimony at 1.2% at Blue Spec - Golden Spec.

    Background

    A major contributor to the closure of the Blue Spec and Gold Spec mines in 1978 and 1991 respectively, in addition to poor metallurgical recoveries, was the relatively small scale of production at the individual mines notwithstanding that historical ore reserves grading in excess of one ounce per tonne gold were defined at the deposits at different times during their operations.

    During operation under different owners, both Blue Spec and Gold Spec suffered critical production constraints resulting from small shaft access, no mechanisation and lack of capital of private syndicate operators.

    Significantly, Blue Spec and Gold Spec have never been operated concurrently, despite being less than 900m apart. Northwest's plan to concurrently develop Blue Spec and Gold Spec by way of separate declines from surface using modern mechanised mining methods successfully employed at other Western Australian high grade narrow vein underground gold mines is a low risk approach aimed at delivering the production scale and operational flexibility lacking in the past.

    Key risks were identified in the Mining Study as were opportunities to increase the size of the mining inventory and extend the initial 5 year project life through depth extensions to both Blue Spec and Gold Spec and in-fill drilling of the currentMineral Resources.

    Base case mining scenario:

    - the Blue Spec and Golden Spec gold-antimony deposits will be developed concurrently by way of industry standard 5.0m x 5.5m, 1 in 7 declines;
    - mechanised narrow vein mining adopting a modified cut and fill method will be utilised;
    - the mine plan is limited to the current Mineral Resource estimates for Blue Spec and Gold Spec but also includes extraction of a conservative amount of the remnants estimated remaining in the historical levels of Blue Spec (surface to 320m VD) (the Blue Spec Remnants); and
    - the Blue Spec Remnants are scheduled to be mined prior to accessing the Blue Spec Mineral Resource below of the current workings.

    Importantly, the Mining Study did not rely upon further increases to the resource base at Blue Spec and Gold Spec through depth extensions to the current Mineral Resources which are open at depth or new discoveries between Blue Spec and Gold Sec or along the 14kms of the shear zone.

    Analysis

    Today's Mining Study builds on the results of the floation work and both serve to de-risk as well as add upside to theNorthwest Resources story. The Study indicates a robust project with likely high margins, producing around 75,000 to 80,000 ounces of gold per annum in concentrate in years 2-5.

    A definitive feasibility study will be completed on the project by the end of 2012.

    The very high payment terms for gold contained in antimony concentrate now available means that there is no longer a commercial imperative to separate the gold and antimony in Blue Spec-Gold Spec ores through complex treatment processes.

    Northwest's plan to produce a gold enriched antimony concentrate for direct sale takes advantage of the excellent flotation properties of both gold and antimony and is a low risk market driven solution to the problem of poor metal recoveries in the past.

    Such is the demand for antimony, Proactive Investors believes that finding an offtaker to buy the concentrate will not be an issue. Also, the project is likely to rank in the lower cost range. Assuming funding is forthcoming, Northwest could be mining by July 2013.

    This is all excellent news for investors with Northwest Resources sitting on a Market Cap. of just $20 million given catalysts and newsflow to follow.

    Jul 24 1:31 AM | Link | Comment!
  • Gunson Resources Closes In On POSCO Deal

    Gunson Resources (ASX: GUN) is anticipating a mid-August 2012 conclusion to the potential joint venture partnership with South Korean steel giant POSCO for the Coburn Zircon Project as it continues to progress the finer details of the agreement.

    The company is progressing through POSCO's internal investment approvals process, and is working to refine and finalise documentation and other arrangements for the proposed joint venture.

    POSCO, which already has existing resource development investments in Western Australia, can earn a large minority joint venture interest in Coburn by contributing its proportionate share of mine development expenditure, together with an additional contribution that reflects a project earn-in value well in excess of the company's current market capitalisation.

    At the same time as it works to finalise the deal, Gunson is also advancing the process for securing a component of debt finance for its joint venture share of project development costs.

    Government approvals in hand

    Gunson has now received Office of the Environmental Protection Authority (OEPA) approval of the Groundwater Monitoring Management Plan, which is required prior to the start of mining.

    OEPA has also confirmed its agreement that construction on the Coburn Project has substantially commenced, in accordance with the development approval granted by the Western Australian Environment Minister in May 2006.

    Engineering and gas transmission FEED studies progress

    The front end engineering design (OTC:FEED)/value engineering study, being undertaken by Sedgman Metals Engineering, is on track for completion in mid-September 2012.

    Importantly, the study will provide a more definitive capital cost figure and construction schedule, with a reduction in the previously advised 85 week construction period likely.

    Meanwhile, the gas transmission FEED study by DBP Services Co is on schedule for completion by the end of August 2012.

    The study is aimed at providing a draft gas transmission agreement to install, on a build, own, operate (transfer) basis the proposed 110 kilometre long lateral pipeline to Coburn from the main Dampier to Bunbury natural gas pipeline.

    Coburn in a snapshot

    Coburn is one of only a few advanced mineral sands projects in the world. It is strategically located, with regional infrastructure nearby including a major highway, natural gas pipeline and port, with the project 250 kilometres north of Geraldton, an established mineral sand port with available capacity.

    The project will be the second largest zircon producer of the only three mines in the world that have a completed Definitive Feasibility Study and are fully permitted for construction, behind Grande Cote in Senegal.

    Coburn has an estimated net present value (8%) of $223.7 million and an internal rate of return of 28.3% on a pre-tax and pre-financing basis.

    Not only is Gunson close to securing financing for Coburn through the POSCO deal, it has also executed an offtake agreement with the world's largest pigment producer, DuPont, for its proposed share of chloride ilmenite production from the project over a five year period.

    Discussions with other potential offtake partners for the higher titanium dioxide mineral products and zircon are well advanced.

    Zircon prices holding firm

    Zircon prices have remained above US$2,000 per tonne f.o.b., indicating considerable supply discipline by the three major producers, who have a combined market share of over 70%, despite a weakening in sales volumes for pigment, titanium dioxide mineral feedstocks and zircon.

    The main cause of the lower sales volumes is weak demand from the world's largest consumer sector - the Chinese ceramic industry.

    Demand for tiles and sanitary ware has decreased as the government's credit tightening policy has particularly affected new residential building activity.

    Once the current restrictive Chinese government credit settings are eased, long-term zircon demand growth is expected to resume, with the ongoing urbanisation and growth of the middle class driving demand for higher quality ceramics, paints and other products requiring additional zircon and titanium dioxide mineral feedstocks.

    Coupled with supply side limitations, industry commentators such as Iluka, TZMI and Goldman Sachs note that tight mineral sands feedstock markets could return in 2013.

    Proactive Investors is a market leader in the investment news space, providing ASX "Small and Mid-cap" company news, research reports, StockTube videos and One2One Investor Forums.

    Jul 24 12:33 AM | Link | Comment!
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