ELE - Elmore Ltd

[moneymajix]

Health company becoming an iron ore company.


4.2c - Up 48%
Lot of volume.

22 Oct 2007 09:49 ! Market update, JV /Option to acquire Indian Iron Ore project

 

[moneymajix]

Re: NSL - NSL Health Limited

More info:

JV/OPTION TO ACQUIRE INDIAN IRON ORE PROJECT & MARKET UPDATE

HIGHLIGHTS

NSL Health Limited (“NSL”) will spend a minimum of $300,000 and up to
$400,000 to earn a 25% interest in the Kerala Iron Ore Project, India, that
Austind Iron Ore Pty Ltd (“Austind”) is in the process of securing.
An asset base estimated by Austind to be at least 200 MT of iron ore grading
60%+ Fe, occurring primarily as hematite and magnetite, hosted by banded
iron formation (BIF) lithology.
NSL will be granted an option to acquire Austind following completion of the
initial exploration targeting an exploration potential of at least 200 million
tonnes of Iron Ore grading >60%.
The Project is contained on 350 acres of land (located at Kakkur Village)
where Austind has advanced negotiations to freehold purchase via MOU with
the land owners.
Geologist Mr John Canaris will be invited to join the NSL board to provide
technical expertise in relation to the Kerala Iron Ore Project.



The Exploration Program is proposed to consist of:

Stage 1. - to December 2008. Data compilation, reconnaissance field work,
sampling and assay with a view to identifying an Exploration Potential (allowed
by JORC and independently verified) of at least 200MT of iron ore @ Fe 60% (or
equivalent thereof).
Stage 2. - to December 2009. Data compilation, drilling and field work with a
view to establishing a JORC Compliant Inferred Resource of at least 200MT of
iron ore @ Fe 60% (or equivalent thereof).
Should the Exploration Potential defined above not be identified by the earlier of
31 December 2008 and the time $400,000 has been spent by NSL on the Stage 1
Exploration Programme, then NSL shall have the right to either:
(a) withdraw from the JV and retain no interest in the Project: or
(b) notify Austind that NSL will retain the 25% interest in the Project and
contribute to future expenditure on a pro-rata basis or dilute: or
(c) notify Austind that NSL will proceed with the acquisition of 100% of the
issued capital of Austind pursuant to the Call Option

 

[moneymajix]

Re: NSL - NSL Health Limited

Speeding ticket response

http://www.asx.com.au/asxpdf/20071029/pdf/315g937742r8bw.pdf


Also, see this article:

Iron ore talks could double the price

Robin Bromby | October 29, 2007

IRON ore doubling in price next year? Extraordinary idea, but one sector analyst (unnamed, unfortunately) told the New York oil and metals news service Platts that prices could double following 2008 contract price talks, which have begun in Tokyo.

Unlikely, but analysts' estimates have been creeping up. They started predicting a 10 per cent raise. Then, a little later, the analysts settled on a "consensus" of about 25 per cent, and now Macquarie Bank has upped the ante by predicting a 50 per cent increase.

There are signs that supply constraints are going to be a continuing headache.

It was reported at the weekend that India's exports could be down 15 per cent this year because of problems at two big iron ore ports, Mormugao and Paradip.

Brazil is diverting increasing amounts of its production to feed its fast-growing domestic steel industry. Crude steel output there for the first nine months of this year was up 10 per cent year-on-year, so it will pay to follow the local iron ore sector closely to judge which companies will ride the wave.

 

[moneymajix]

Re: NSL - NSL Health Limited

This is the section in the Australian mentioned in the Speeding ticket and further part of the article posted above:

Dental equipment seller NSL Health is getting into the business, with an option over 25 per cent of the Kerala iron ore project in India. The company is bringing a geologist on to the board.

 

[Pommiegranite]

Re: NSL - NSL Health Limited

This is the section in the Australian mentioned in the Speeding ticket and further part of the article posted above:

It seems as though the market ignored the fact that sampling will be concluded by Dec 2008 and drilling in 2009

It on my watchlist for a later date/year

If I were a director, I'd be tempted to offload some of my holding tomorrow

 

[moneymajix]

Re: NSL - NSL Health Limited

Roger Steinpreis is a major shareholder.

I can't see him selling out now when there is more to come.


Excellent speeding ticket response.
- 100% binding option of acquisition after stage one of exploration


Can't see too much downside at these levels.

Low market cap.

Happy days.

 

[moneymajix]

Re: NSL - NSL Health Limited

MARKET UPDATE ON NSL BOARD RECONFIGURATION
AND INDIAN IRON ORE PROJECT HIGHLIGHTS

• Geologist John Canaris has been appointed to the Board of NSL Health
Limited (“NSL”) to support the Company’s new business direction in India.
• Data compilation and assessment has commenced with a site visit
completed by Mr Canaris and samples sent for assay, from the Indian
Iron Ore Project (“Project”).
• Formal Option Agreement with the shareholders in Austind Pty Ltd has
been executed.

 

[moneymajix]

Re: NSL - NSL Health Limited

From the ann. today.

3. Execution of option agreement

NSL is pleased to confirm that the Option Agreement (referred to in the
announcement made on 22 October 2007) has now been executed.
NSL now has a binding option to acquire 100% of Austind (the party with the rights
to the Project) following completion of the Stage 1 Exploration Program and
delineation of the exploration potential of the Project.
Recent press articles have erroneously stated that NSL has an option over only
25% of the Project. These articles are incorrect. The Joint Venture with Austind
allows NSL to earn up to a 25% interest by spending between $300,000 and
$400,000 on the Stage 1 Exploration Program.
Following completion of the Stage 1 Exploration Program, NSL will then have an
option to acquire 100% of Austind (the party with the rights to the Project).

 

[moneymajix]

Re: NSL - NSL Health

MARKET UPDATE ON INDIAN IRON ORE PROJECT

HIGHLIGHTS

• Site visit conducted to the Kerala Iron Ore Project has verified iron
mineralisation occurring continuously over approximately 8kms of strike.
• Rock chip analysis has returned results from pervasive, large magnetite ore
body with Fe grades ranging 43-52%, which compare favourably to global
averages for magnetite ores.
• Test work completed by the Indian Government indicates the ores are
amenable to beneficiation, and 65%+ concentrates are achievable.
• The deposits are easily accessed by sealed roads and village tracks 17kms
from the main town of Calicut, and are supported by power and
infrastructure and port facility.
• Austind Iron Ore Pty Limited (“Austind”) to raise up to $10 million to fund land
acquisition strategy, mining permit applications, joint venture expenditure
and general working capital.


3.1c

 

[YOUNG_TRADER]

Re: NSL - NSL Health

Hi guys,

Just a quick one to start the thread,

Here's what I believe to be the next 2c-3c penny stock to run

It has all the hallmarks of the other penny's

Its has 300m shares on issue, which mean at a price of 2.4c its Mkt Cap is a tiny $7.5m

So what does it have that may cause a trader based run/re-rating?

It has an option to acquire an Indian Iron Ore company which has an exploration project with a target 200Mt's @ 60% Fe (See extract 1)

Now there seems to be a bit of uncertainty with respect to the target grade and I believe this is whats holding up the comany, (See rock chip extract 2 below) however even if the company end up with a smaller say 80Mt @ 60% Heamatite target (per Historical Govt records see extract 3) The Mkt cap would be $50m+ so the upside is nevertheless huge


This isn't one of my usual fundamentally undervalued stocks etc, BUT its a very cheap penny stock that offers alot of upside potential and thus should be re-rated and capped at least $15m = 5c given the potential it has

If you see the list below alot of the specs that have run 100%-200%+ had little to know fundamentals, let alone the potential to acquire a large Fe target,

The closest match would be FDL, BUT I'M NOT SAYING WE CAN EXPECT THAT KIND OF PERFORMANCE, what I am saying is that FDL lay dormant at 1c for ages and then one day outline a 350Mt Haematite target and boom off it went, how long before NSL updates the market about its 200Mt Haematite target??

FDL ran from 1c - 15c (Iron Ore target near FMG)

HAO ran from 3c - 40c (Acquired Iron ore grounds)

GDA ran from 1.5c - 6c (Placement/SPP + Iron Ore projects)

GNL gapped up from 3c - 8.5c (Iron Ore projects)

EGO ran from 0.7c - 6c (few months back based on leverage to oil well)

BMO ran from 2c - 6c (Gold targets)

RSL ran from 1.5c - 3.5c (Uranium grounds)

ORO ran from 2c - 4c (Nickel?? Gold?? Not sure)

RCH ran from 0.6c - 5c (Not sure ?????)

RAU ran from 2c - 28c (rerating based on Cu/Au deposits)

IIG ran from 1.2c to 5.6c (Gold soils anomolies or something?)

 

[moneymajix]

Re: NSL - NSL Health

I was wondering when there would be some renewed interest in this one.

Currently 2.6c.

Ran from 2s to mid-4c end of last year, helped along by some exposure in the Oz.

No much in the way of freight charges as the ore is in India.

Steinpreis connection.

 

[YOUNG_TRADER]

Re: NSL - NSL Health

Steinpreis connection.

I should have probably explained that link as well,

The company is a Steinpris re-cap, so hence why the name is still NSL Health, soon they will have to change that to NSL Resources or NSL Iron etc


Anyway if you check the top 20 Directors and Stienpris look like they hold 80%

 

[ASK]

Re: NSL - NSL Health

Youngtrader,

maybe your faith in this company rubbed off on some of the other posters!

the share price jumped a decent amount after your post!!


looks like a pretty solid penny stock with some good potential , waiting for the price to dip slightly and ill be buying.

 

[kpas]

Re: NSL - NSL Health

Shame they havn't changed their name beforehand - I would say the name & the capital is scaring off a lot of people.

I will be very interested to see if the announcement brings the spotlight to it ah lah FDL etc.

 

[hegemony]

Re: NSL - NSL Health

Hi all,

Any ideas on a timeframe for these guys to do a name change? Is there a requirement for them to change their name?


Thanks
Russ

 

[YOUNG_TRADER]

Re: NSL - NSL Health

Hey guys,

As with most Steinpris plays (EXT DYL BLR WMT)

They only change the name after they have acquired the project etc etc

Regardless, I think that traders will eventually jump into the story and it will get re-rated

Why? Same reason they did on GDA, no real reason, they just jump at any given time,

I regret not letting other ASF'ers know about GDA because it turned out to be a good spec story (ie 500% return) even though there were no real fundamentals backing it other than it was cheap and it was acquiring some W.A. Iron Ore Grounds, even then it was a real spec stock and there was going to be heaps of dillution at 1c, yet the stock ran,

I feel far more comfortable putting forward NSL as a possible re-rate story waiting to happen because of its Iron ore project (target size etc) and again its cheap mkt cap

 

[hegemony]

Re: NSL - NSL Health

YT, Thanks for the info. Always good to have something different to keep an eye on.

Thanks,
Russ

 

[chewy]

Re: NSL - NSL Health

Had a quick look at this YT - seems a bit confused talking about +60% hematite - but then not showing any samples near this - more like 40%'ish magnatite that needs benefication - that is a very MAJOR difference. Also have they appointed mining experts as their managers since changing from health care? thx.

 

[mobcat]

Re: NSL - NSL Health

Well done YT Beautiful work again ..........Sure do,s have the Hallmarks mate of a earner in the present markets NSL is made to order ATM a rerating on the horizon a matter of time IMO .......IO is HOT ATM and at this level 2.5 > with the news stream NSL has immenent .......i have taken a very solid position today very happy holding quality news worthy specs with fundamental foundations like NSL unlike some of the runners of late all piss and wind NSL has potential targets of 200mil tonnage IO my kind of potential brings back very sweet and profitable memories of YML,HLX,CUL Bring it on NSL you very sweet little indian curry and i love a good curry LOL

 

[YOUNG_TRADER]

Re: NSL - NSL Health

Had a quick look at this YT - seems a bit confused talking about +60% hematite - but then not showing any samples near this - more like 40%'ish magnatite that needs benefication - that is a very MAJOR difference. Also have they appointed mining experts as their managers since changing from health care? thx.

Hi Chewy,

3 points,

1. NSL's Mkt Cap is currently $7.5m GDA's current Mkt Cap is like $25m and they have nothing, a 20% interest in some W.A. project JV'd with CAZ, and some other licences, GDA's management are poor and this can be seen from the track record and SP performance, NSL on the other hand is a recap which leads me to point 2

2. NSL is a recap of a Health company, over the last 2 yrs the Steinpris boys have recapped DYL WMT EXT BLR to name a few, the story always starts off the same, its a failed dog company being recapped, they find a great project, and bring in good management and off she goes, so to answer your question the current directors are new fresh blood, they and the Steinpris group appear to hold 60% - 80% of the shares of this company and the company has recently appointed a geologist to its board who is assisiting with the project etc, including grade and size verification, which brings me to point 3

3. The company themselves said the overall deposit is likely to be a combination of Haematite and Magnetite (see my first post extract 1) however the project is expected to have a minimum 200Mt's that is 60% Haematite, the results they had were rock chips, rock chips sometimes aren't representative of whats below as they are exposed and have thus been weathered etc etc, ie even if the company had 65% rock samples at surface there is no guarantee that the actuall deposit is 60%+ you only know that once its drilled, however if you check my first post and see the 3rd extract you'll see the Indian Govt outlined a historical "80Mt High grade Iron Ore resources comprising banded magnetite and haematite" (This is a direct quote from extract 3)

Now you ask about drilling results etc, well I refer you back to point 1. What is the Mkt Cap of the company? If this company had drilling results pending for a potential 200Mt Haematite deposit the Mkt cap would be $200m+ so please keep everything in context

I encourage people to do some research on GDA and see exactly what they have that justifies a $25m+ Mkt Cap, for that matter what work has FDL done to come up with its target? Have they drilled? No, Do they even have rock chips? No, is it a historical area? No its all greenfields (ie new) yet its Mkt Cap is $120m+



I am interested to hear other peoples thoughts but please keep in mind that the companies mkt cap is $7.5m and is thus not demanding by any means given the potential it offers, if at this mkt cap your expecting a JORC or 60% fe drill hits then your a wee bit looney as with either of those the mkt cap would be many multiples of the current level