# ANU - Aconcagua Resources



## Pommiegranite (21 August 2007)

Now...here's a microcap stock which is flying under the radar if ever I saw one.


Aconcagua are a South American Iron Sands play which are backed by Martin Place Securities.

Up 26.25% as we speak. There's hardly anything on sell side.

This is on the back of an highly important annoucement last night that their samples have tested positive and a pilot plant is now being constructed to be commisioned this year.

Any comments?


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## Pommiegranite (21 August 2007)

This was sent out by Martin Place Securities today:

*Yesterday afternoon Aconcagua (ANU) released to the ASX a highly important announcement that confirms that the company is making very significant progress towards bringing its Equador iron ore project into production.*

A leading US based metal smelting company, Outotec, has tested a 5 tonne sample of the ANU iron product and achieved a better than 95% recovery of the iron, titanium oxide and vanadium oxide products in the sands.

Also based on the Outotec results, ANU has ordered the construction of a pilot plant which will be commissioned in Equador in late 2007

Attached is a copy of yesterday’s market announcement.

We have invited* Bill Kluckow, a fellow of the South African Institute of Mining and Metallurgy, and a consultant to Aconcagua Resources,* to Sydney on Friday so that MPS clients have the opportunity to hear about the company’s progress.  

MPS believes that this announcement is a very important and we’d be pleased if you could join us for a *company briefing and light lunch *in our office on *Friday 24 August from 12.30 – 2.00 pm.*  If you are interested in attending, please RSVP to myself or Sarah Ross at sross@mpsecurities.com.au.

I hope that I can see you on Friday.


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## Sean K (21 August 2007)

Interesting PG. I'll drop up the road and check them out. 

I can't find how many tns of the sand they assume they might have there. Have you seen it anywhere? Lot's of ground/water, but it's an absolute pluck to try and put any $$ on them. 

Why do I only get a chart record from Aug?


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## Sean K (21 August 2007)

kennas said:


> Why do I only get a chart record from Aug?



Ah, recap/name change. It's a bit speccie wouldn't you say? Could do anything, one way or the other?


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## bigt (21 August 2007)

I estimated on back of a scrap of paper (info in prospectus):

440 mt of estimated resource from the 3 prospects
average 7.5% VHM = 33 mt VHM @50% Fe = 16.5 mt conatined Fe

no idea on costs to extract etc


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## Pommiegranite (21 August 2007)

Well here's their prospectus for the IPO.

http://www.asx.com.au/asxpdf/20070518/pdf/312j7gf0wzmh3w.pdf

From my limited understanding, Iron Sands are easier to process and their have a much lower capex. It is also easier to sift through the sands and seperate into the various elements.

Any metallurgists out there?


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## Pommiegranite (24 August 2007)

Announcement today:


...land has been acquired for the pilot plant...which will be constructed by Oct/Nov. Also the metallurgist lab will be completed by September.

It seems as though this company is fastracking to production

Does anyone know if pilot plants generate any revenue..and if they can be easily converted into the full model easily?


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## Mazrox (7 September 2007)

Anyone know what's happening with this one? 

Up 14% today, almost no sellers and more buyers coming in. It's hovered between 40c and 50c since re-listing, but has been picking up steadily over the last week or two to settle low-mid 50's. 

Now this big jump today... Currently 65c.

Maz


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## stefoid (31 October 2007)

busted a dollar.  hello?  why?  I think they have news on a piolot plant or something, but I cant remember when.

anyone holding?


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## Mazrox (1 November 2007)

Someone's really accumulating this. Has been consistent and steady accumulation over a few weeks. Volumes are never very big, but there's not much on the table to buy.

Up another 23.5c today, now 1.385. I got on this at the IPO at 50c on a friend's recommendation (only a small parcel), it flip-flopped around 40-45c for a couple of months, but since then it has been up and up. I sold some at 75c to protect my original investment. I keep waiting for it to take a breather, but it just keeps on going.

Makes me wish I had bought more...

Kennas, did you ever find anything out on the ground over there?

Maz


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## L plates (1 November 2007)

I was looking at CNBC yesterday and a guy from a broking firm that looks at small caps only ( the guy not the firm) mentioned this as the best pick in the small cap sector.

Wish I'd had the cash to buy


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## stefoid (1 November 2007)

why not just buy now?  the potential of this stock is enourmous.  they have vast amounts of iron sands on the beach that they scoop up and basically sift like flour and out comes the ore.  its almost as good as DSO hematite in that sense.  Perhaps the fact that its next to water might make it even better.  Im not sure if they plan to just build a dock next to the ore or what, but if they did it would beat having to build a railroad I guess.


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## L plates (1 November 2007)

stefoid said:


> why not just buy now?  the potential of this stock is enourmous.  they have vast amounts of iron sands on the beach that they scoop up and basically sift like flour and out comes the ore.  its almost as good as DSO hematite in that sense.  Perhaps the fact that its next to water might make it even better.  Im not sure if they plan to just build a dock next to the ore or what, but if they did it would beat having to build a railroad I guess.




I can't I'm fully committed already, doing well with PNA, BNB and MMX
and I don't want to sell any of these at the moment. I can't understand why there seems to be nobody talking about PNA !!


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## gregcourageous (1 November 2007)

I've got in at $1.42 after a good sales pitch by a broker friend. Apparently this sifting thing they have going on is extremely effective and economical... $4 price target by mid next year. 

Here is hoping.


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## prawn_86 (1 November 2007)

Just like any mineral sands co, in regards to how mining is carried out.

Pick it up, put it through a mill and then back fill your trench with the 'filtered' sand, and send off all the good bits. Ver very easy to set up.

AZC is my mineral sands hold.


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## stefoid (1 November 2007)

well, as they say, the earth is 30% iron.  its a matter of getting it to where you want it to be (on a boat going to china)

since we are already onthe beach, thats a good start - no railway needed.  although you do want a port.  that is no small requirement.

I think the key for ANU is that they want to ship Merchant Pig Iron, not ore, which will require an order of magnitude smaller infrastructure to get it on a ship.

From what I have gleaned, the sands they have are ilmenite which is traditionally difficult to smelt into actual iron.  the sifting process is a snap, but smelting that into MPI is the tricky bit.

If they can prove up the MPI process, and then demonstrate what its going to cost per tonne to put on a boat...  wooosh!


can anyone enlighten me as to their plans? is there port infrastructure nearby or do they plan to build their own or what?

any brokers reports to share?


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## Mazrox (1 November 2007)

_A bit more info on the company:

From Michael West in The Australian back on Sept 5 (as an afterthought at end of article) _

Managing director Franco Belli and his amigos at Acongagua Resources have pegged more than 70,000ha along the Pacific coast and appear to have early-stage inferred resources tonnage numbers of Fortescue dimensions, right on the beach. No overburden. 

_And a bigger article in the Australian on 12th Sept (Different Author):_

September 12, 2007 
EVER been to Ecuador? We hear it is very nice this time of year. No monsoons, cheap cocktails, friendly people etc.

If you ever go to Ecuador there are a couple of things Daily Assay reckons you should check out.

The first one is that because of the country's position on the equator, the sun always rises at 6am and sets in the evening at 6pm. 

Without fail, as regular as clockwork you might like to say. 

The other thing worth a mention is Aconcagua. Not the mountain in the Andes, which just happens to be the biggest in all of the Americas, but the little Australian resources company of the same name.

Never heard of it? There's a good chance you may well soon be very aware of Aconcagua and its intentions to be an iron ore miner of significant size. 

A quick look at Aconcagua's share price chart over the past couple of weeks seems to indicate the story is getting out. 

Worth 45.5 cents each when the market closed on August 28, Aconcagua scrip is now worth 75 cents a piece after closing down 5 cents today. 

It's a beauty this little company, and if you thought what Andrew "Twiggy" Forrest was doing was interesting, then this takes things a step further. 

Namely mining iron ore on the beaches of Ecuador at its Fierro Inca Project. 

*Now Aconcagua doesn't have a JORC-compliant resource yet for the project, but take it as read that there is significant potential for a sizeable resource given that Aconcagua has pegged nearly 100,000 hectares of both on and offshore tenements. *
At the Cojimies prospect in the southern area of Fierro Inca, the resource estimation is for some 254.2 million tonnes with an average grade of 10 per cent VHM (valuable heavy minerals). 

Most of that is in the inferred category, but hey, you can't deny the potential. 

Metallurgy analysis of the sands indicates smelter feedstock of near 50 per cent iron, 27 per cent titanium dioxide and 0.5 per cent vanadium. 

Mining beach sand is not an easy job, you can probably imagine the environmental hurdles the company is going to have to jump through. 

*But at least Aconcagua won't have to build a railway or a port because you can't get much closer to the coast than the beach. *
Ecuador imports all of its steel and there is real potential given the abundant energy reserves the country has to value-add and produce low manganese pig iron. 

According to its latest budget, Aconcagua has allocated about $4 million to infill drill Ferro Inca while the company moves to the "bankable feasibility status".

*While the project might seem a touch extraordinary, take a look at who Aconcagua has managed to attract to the company. *

Director Andrew Susaeta was once the professor of the mining department at the University of Chile and has had senior jobs with Codelco and Fluor. 

Non-executive chairman John Banks has spent 40 years with KPMG, 25 years of that as partner.

Consultant Bill Kluckow spent 20 years with Richards Bay Minerals - the world's foremost producer of titania slag and pig iron from its project on the Indian Ocean coastline in South Africa. 

Got the picture? It seems Aconcagua is very serious about its intentions. 

Now where are those environmental approvals? 

_End of Article_
Cheers
Maz


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## stefoid (1 November 2007)

I dont get the bit about not needing a port.  what are they going to load it into rowboats?  at some stage the end product has to hit the water, even it is totally going to the local market.

the bit about the guy from richards bay minerals is probably the most heartening bit.  here is a link to RBM

http://www.rbm.co.za/MININGBENEFICATION30.aspx

I they are already doing this, so the risk to the process is vastly reduced.  this is a very good thing.


richards bay mineals has an annual turnover of a billion dollars.


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## Diewlei (7 November 2007)

Well, whatever issues they may be having, they seem to be doing well.  Stock closed up at 1.78 on no news.  Someone likes them


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## gregcourageous (8 November 2007)

Well, I only got in a few days ago at $1.42, but I'm out today for a tidy 40% profit, They have risen over 100% in a week on no news, I'm hoping for a little pull back so I can re enter. I still can not believe todays rise when the entire market is the reddest of reds. Surprised this thread doesn't have more attention. Good luck to all.


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## Mazrox (8 November 2007)

Nice job Greg

Up to 2.05 awhile ago, back to 1.94 now - still well up on the day.

I sold enough to cover my original investment at 75c so I am just enjoying the ride now. It sure has been a wonder to behold. What has amazed me is the steady accumulation, not the ups and downs of most of my other speccies. Almost feels like someone is just quietly and steadily buying up - somebody likes this story!

 I keep thinking it must retrace sometime, but it hasn't happened yet...

Maz


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## Pommiegranite (8 November 2007)

gregcourageous said:


> Well, I only got in a few days ago at $1.42, but I'm out today for a tidy 40% profit, They have risen over 100% in a week on no news, I'm hoping for a little pull back so I can re enter. I still can not believe todays rise when the entire market is the reddest of reds. Surprised this thread doesn't have more attention. Good luck to all.




I reckon Martin Place are still spruiking this to their clients. Hence the incessent buying.


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## Diewlei (8 November 2007)

Happy to say, I am lucky to have got in at .45 and .49.  But indeed with rest of market red, this looks pretty good.  Unfortunately I dont really understand mining and have no idea where this is going to go or why it has gone to where it is.

Would appreciate guidance


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## prawn_86 (8 November 2007)

I would suggest some research starting with the company website and possibly the earlier messages in this thread.

I wouldnt advise on investing in something you dont know about


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## Diewlei (8 November 2007)

Thanks prawn.

Naturally have done the basic research.  What I meant is that i do not really know how to analize the metallurgical stuff.  

D


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## prawn_86 (8 November 2007)

Metallurgy can be hard to get your head around.

There is a guide titled something like 'basic geology' or something, but if you have time i would just suggest reading through previous threads and asking questions here and there to try and pick up what are good grades for each different metal.

Alternatively you could get a geology degree


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## Diewlei (8 November 2007)

Thanks, just signed up for geology degree.  Luckily dont need that to understand the nice appreciation of the stock price over the lst couple of weeks.


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## Diewlei (9 November 2007)

Finally a day where ANU is going backwards.  Think some consolidation is probably necessary.  Let's see where this takes us.


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## gregcourageous (9 November 2007)

i would LOVE some consolidation so i can get back in... $1.50 / 1.60 would be nice, then onward and upward.


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## michael_selway (9 November 2007)

prawn_86 said:


> I would suggest some research starting with the company website and possibly the earlier messages in this thread.
> 
> I wouldnt advise on investing in something you dont know about




Hi do they have a company website?

thx

MS

*-Aconcagua Resources Limited (ANU, formerly Powerise Technology Limited) is involved in mineral and energy exploration and minerals trading.*


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## Mazrox (10 November 2007)

Company website:

http://www.aconcagua.com.au/

http://www.aconcagua.com.au/index.php?p=14 has some info on the directors (filling up 100 characters....)

Maz


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## Pommiegranite (16 November 2007)

A religious company...hmmmmm. So that's what explains the SP hike.


"16 November 2007

Dear Sir

Resignation of Director

I advise that I am in receipt of the resignation of Mr AndrÃ©s Susaeta as an Executive and a Director of Aconcagua
Resources Limited.

Mr Susaeta has been undergoing a stressful time with health issues within his family. Mr Susaeta has advised that:

“the difficult family moments that I live prevent me from giving all the dedication and attention that our activities in
Chile demand, and especially the development of the auspicious project in Ecuador. *I have decided to
concentrate my energies and efforts in bearing this difficult test that God has presented me with, in the hope that
everything will turn out well.”*
My Board is sad to lose Mr Susaeta’s services. *We wish him well and pray that the problems that he faces will be
overcome.*

Yours faithfully
Aconcagua Resources Limited"


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## Diewlei (22 November 2007)

gregcourageous said:


> i would LOVE some consolidation so i can get back in... $1.50 / 1.60 would be nice, then onward and upward.




Well it has back tracked to where you wanted.  Did you get back in?  Seems to have stalled again like it did around the 0.90's.  Hopefully we can have another run sometime soon.  Would be a nice Christmas pressie


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## poorman (30 November 2007)

whats happening with Aconcagua ANU? why is it heading south? any ideas? should i be buying or selling at these prices?


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## stefoid (4 December 2007)

I too am interested in the metalurgy.  Seems like they have a mix of magnetite (yuck) and something called ilmenite.  this is not DSO, they have to smelt it on-site first.  That means they need not just transportation infrastructure, but cheap energy on site and large capital expenditure for the smelter.

The only advantage of smelting to merchant pig iron is that their infrastructure needs will be somewhat reduced because MPI is a higher margin, lower tonnage product.

Very, very early days for a company currently with a cap over a hundred million.
'
In the current investment climate, I would be looking more at DSO type projects that have an 08 shipping date, and keep a weather eye on ANU.


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## prawn_86 (4 December 2007)

i know that Ilemite is a type of mineral sand. As it is a by-product (if you will) of zircon mining. 

It is a lot cheaper than zircon but is still profitable on its own.

Not sure how it relates to MPI though


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## stefoid (4 December 2007)

ilmenite is an iron oxide - you can smelt it to get pig iron and a 'titanium rich slag'

"The Balla Balla magnetitite-iron-titanium-vanadium ore deposit, in the Pilbara of Western Australia, contains ~600 million tonnes of magnetite-ilmenite cumulate ore horizon grading 58% Fe, 14% TiO2 and 0.8% V2O5, one of the richest magnetite-ilmenite ore bodies in Australia. The ore deposit is scheduled to be mined in mid-2009, to produce in excess of 480,000t per annum of ilmenite product, by Australian mining company Aurox Resources Limited."

Looks like Aurox is doing something similar, so the current price of iron must justify using this unusal source of iron.  the recent AGM aurox presentation is fairly instructive - they plan to pipe the concentrate 'slurry' from mining site to port, then ship the slurry to the chinese steel mills.

ANU is much more ambitious - they intend to produce iron on site.  I think the advantage of the sands is that the initial seperation process is easier because they dont have to grind the crap out of it.  How much easier (i.e. cheaper) , I dont know.  Certainly the smelting plant is not going to come cheap, or without siginificant technical challenges.


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## Diewlei (7 December 2007)

Yeah, well i suppose that is what we are waiting to hear.  How much it will cost them to process the stuff.

Interesting is though that from 2001-2005 Ecuador exported 0 (zero) iron ore.  Source www.intracen.org.

By the way stefoid, where did you read that thay plan to produce on site?  I seem to have missed that.

Thanks


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## stefoid (10 December 2007)

Diewlei said:


> Yeah, well i suppose that is what we are waiting to hear.  How much it will cost them to process the stuff.
> 
> Interesting is though that from 2001-2005 Ecuador exported 0 (zero) iron ore.  Source www.intracen.org.
> 
> ...




One of their recent presentations which you can find in their announcements that companies like these announce sometimes (is that 100)


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## vegemite (17 May 2008)

New research report available on ANU on the Martin Place Securities website.

Worth a read on the basis of their strong buy recommendation and predicted PE of just 0.17 at full production within 4 years (or EPS of $5.13/share, compared with current share price of $1.10). If you ascribe a future PE of 10, then this is potentially a 60-fold increase. While some dilution would be expected due to future capital raisings, the report has already factored in and estimated $50 million capital raising by issuing 25 million shares at $2.

Longer term one, but bought a few as a speculative punt on the basis of the report

Cheers, V


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## vegemite (19 May 2008)

From today's Australian (Mon 19th May). ANU gets a mention at the end
Cheers V

Latin adventures 

EXPLORING in Latin America has its moments. The Bolivians and Ecuadorians have taken a rather dim view of foreign companies and want more of the gravy. Now Venezuela says it will not permit any more open-pit gold mining nor any work in the vast Imataca Forest Reserve, which has come as a blow to two Canadian companies with prospects there. 

But there are still large areas not explored by modern technology, so the region is very attractive to companies looking for the big find. 

Australian companies are now widely represented in South America, but less so in Central America (apart from Mexico). Golden Cross Resources (GCR) is one of the small number filling the latter gap and is reporting encouraging early signs from drilling at the Los Hatillos property in Panama. Previous underground exploration has shown gold, silver, copper, lead and zinc, and GCR says the first hole indicates the mineralised zone is broader than expected. 

A GCR director, Chris Torrey, worked in Panama in the 1990s for two North American mineral companies. 

Other players to watch include Crusader Holdings (CAS). It has just finished drilling at its Manga prospect in Brazil for tin and indium -- two of our favourite metals -- and it will be interesting to see the assays. 

Windy Knob Resources (WKR) has begun drilling its Titiribi project in Colombia. This is an area that has been mined for 200 years, mainly for gold and zinc, but has also produced zinc, copper and lead. WKR aims for a JORC resource by December. 

And Aconcagua Resources (ANU) might find that it resonates better with investors with its planned name change to South American Iron & Steel Corp. It has been reporting significant progress with smelting trials with ore from its Fierro Inco project in Ecuador. The company plans to mine iron sands to produce steel billets and slabs as well as vanadium and titanium slag.


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