AGS - Alliance Resources

[GreatPig]

Nice to see a bit of recovery at least from the $1.925 low of earlier today. At least it's now back above my purchase price (never mind the 38% odd profit I was sitting on a couple of days ago!).

Another of those "why does this always happen to me" scenarios , which goes well with the back strain I've been suffering for the last few days (which is also a periodic, but fortunately infrequent, occurrence).

Nothing like being kicked while you're down...

Cheers,
GP

 

[spooly74]

The maiden resource was dissappointing, and the sp has been quite rightly belted.

I`d like to know the thinking behind using a cut-off of half a metre at 500ppm.
Why would you not take full advantage of the current spot price and make use of the lower grade stuff (at least inferred anyway)
It`s not like ISL is going to decide to leave it behind.
This is the negative side to not controlling the deposit imo.

On a positive note the results from the March Quarter had some great hits (considering the small average width of 2.2m for current estimate)

9.1m @ 18400ppm
3.5m @ 9700ppm
2.8m @ 8600ppm
8.6m @ 8800ppm
and in the EAST
2m @ 13700ppm

They were released 10 days ago while the JORC was having final checks so they are not included.

Lets hope the major step out drill program they are on about does just that.
They drilled about 60 holes last quarter (not all results in) so lets see if they can increase this, it would be an encouraging sign.

Scoping study to be released about the start of JULY (not holding my breath) and will give an indication on production targets.

I`d also like to see if the top 20 shareholders decide to top up again as they did a couple of months back....I`m hoping some of them are responsible for the big volume.

For the charties ..... what the hell happened to that Cup n Handle
I`ve included a chart to make me feel better but could anyone post a chart as to what fib levels are in play at the moment?

cheers

 

[Go Nuke]

{{For the charties ..... what the hell happened to that Cup n Handle
I`ve included a chart to make me feel better but could anyone post a chart as to what fib levels are in play at the moment?}}


Um..the handle broke off by the looks!

Dont worry greatPig...I bought at $2.13 back in Janish...then it took a dive. I was thinking the same thing as you are now..but the sp came back to life...until the last couple of days at least

Time will tell.
Im backing the S.A government!
They might come to the aid of AGS,s floundering share price:>

 

[GreatPig]

This can be seen in Spooly's chart, but I think is clearer here. Interesting where it bottomed out today. Looks like we might now be back "on trend".

Mind you, a three-point landing with the undercarriage down would have been better than just having the wings fall off...

Cheers,
GP

 

[spooly74]

A very positive last half an hour for Alliance today.
Closed in auction slightly higher than recent short term resistance.

I`ve included a chart of what seems like an ascending triangle/wedge MACD looks like it could turn too.
If, and I stress if it was to break out of this small pattern, would the target be about 2.50? ...cheers in advance.

Scoping study expected in 5 weeks and some more results from the step out program would be nice.
Overall I think its held up very well considering the pasting it took.

 

[Sean K]

Well, in the end $2.25 ish proved support with plenty of volitility around that figure. Has settled down quite considerably now and looks to be even heading back up. I had anticipated consolidation more around the $1.85 ish level, which it certainly looked to be going to occur. For a few hours.

Good ann out with more very high grades in the East deposit. Shame the thicknesses aren't a bit better, but it's that type of deposit I suppose.

Some potential upside still to come potentially with B4M, and that is the areas that are as yet untested around both East and West, seen on the map below.

Market obviously still not crazy with it. Was up after this ann, and retreated.

(not holding)

 

[arminius]

could someone out there give me a straight up answer.
is there enough U in the ground to warrant a mine, and will further measurements simply be a bonus, or is the viability of the mine dependent on further discoveries?
ive had this since .30cents and am going to let it play out. yet there seems to be a lot of negativity...or are these people just trying to rip everyone else off?

 

[Ang]

I don't know how much U they have, however my Graph attached is showing a Penant Down meaning it may be heading for lower lows. Kennas has it as at $2.50 target, I have it at least 40 cents lower than where it is now, $1.46.
kind regards
ang

 

[Sean K]

could someone out there give me a straight up answer.
is there enough U in the ground to warrant a mine, and will further measurements simply be a bonus, or is the viability of the mine dependent on further discoveries?
ive had this since .30cents and am going to let it play out. yet there seems to be a lot of negativity...or are these people just trying to rip everyone else off?

There is absolutely no doubt that this will be one of the next U mines in Australia. Possibly the next. The question more relevant is 'how much is the Arkaroola tenament worth to AGS?' That is, as yet, unknown, and speculative to a large degree. General guestimate is that B4M will have around 120m lbs U in it and AGS has 25%. So approximately 30m lbs U, maybe. However, the tenament is massive, and prospective for IOCGU deposits elsewhere. Who knows what is there? Please read through the thread to get the details. But to answer the basic question, 'will this be a mine?' IMO, without doubt.

(not holding)

 

[Sean K]

I don't know how much U they have, however my Graph attached is showing a Penant Down meaning it may be heading for lower lows. Kennas has it as at $2.50 target, I have it at least 40 cents lower than where it is now, $1.46.
kind regards
ang

Ang, I haven't set any target here. All I can see is that it's found support and looks like it might head back up. Via TA I could not say to where. Both FA and TA is moot at this stage until there is a final JORC, or a better TA set up.

 

[Broadside]

There is absolutely no doubt that this will be one of the next U mines in Australia. Possibly the next. The question more relevant is 'how much is the Arkaroola tenament worth to AGS?' That is, as yet, unknown, and speculative to a large degree. General guestimate is that B4M will have around 120m lbs U in it and AGS has 25%. So approximately 30m lbs U, maybe. However, the tenament is massive, and prospective for IOCGU deposits elsewhere. Who knows what is there? Please read through the thread to get the details. But to answer the basic question, 'will this be a mine?' IMO, without doubt.

(not holding)

I fully concur with kennas' view. They have Uranium, it is high grade and will be economic to mine. The real question is how much Uranium they will have when the resource is fully measured. But yes, it will be mined, and in my opinion will be one of the first new mines in Australia, meaning it will be able to exploit the high U prices before the supply-demand dynamics inevitably change in a few years.

(holding)

 

[bigdog]

Minebox reported today:
http://www.minebox.com/story.asp?articleId=9493

High-grade uranium results for Alliance

Uranium, gold and copper group Alliance Resources has further reinforced the scale, high grade and resource growth potential of the Four Mile uranium discovery in South Australia, yesterday announcing further significant high-grade uranium results from the Four Mile East deposit, following drilling completed during April.

The Four Mile East deposit is currently the focus of an intensive exploration program, with four drilling rigs operating to test the limits of this extensive zone of uranium mineralisation and lay the foundations for an initial resource estimate during 2007.

The Four Mile East deposit is part of an extensive area of potential mineralisation covering some 5sqkm.

Earlier this month, Alliance announced an initial resource estimate for the Four Mile West deposit of 3.9 million tonnes at 0.37% U3O8 (15,000 tonnes or 32 million pounds of contained U3O8), demonstrating the potential for the Four Mile deposit to underpin a significant new Australian uranium mine development.

The Four Mile discovery, which is located 8km west of the in situ leach Beverley Uranium Mine in South Australia, is part of Alliance’s Arkaroola Joint Venture with Quasar Resources. Alliance holds a free-carried 25 percent interest in this joint venture, with Quasar holding 75 percent.

Alliance said that high-grade results from the recent drilling included 4.9m grading 0.794% eU3O8, 2.1m grading 0.699% eU3O8 and 1.6m grading 0.888% pU3O8.

Alliance’s Managing Director, Steve Johnston said a total of 27 holes for 6,166m were completed at Four Mile East during April, with drilling focused along two east-west lines across the main body of mineralisation. The holes were spaced 100m apart along each section with 12 holes intersecting mineralisation.

“The aim of the current program is to define the extent of the mineralisation, with two east-west oriented drill traverses almost complete,” Mr Johnston said. “The recent drilling shows that the higher-grade mineralisation appears to favour a north-east orientation associated with the best developed host sands.”

“Significantly, the aerial extent of the mineralisation is yet to be closed off and the previously intersected high-grade zones in the west near the creek remain to be drilled out,” he said.

“These latest results continue to highlight the potential for the Four Mile Project to continue to develop as one of the most significant uranium discoveries in recent exploration history in Australia.”

- 25 May 2007

 

[Ang]

I don't now much about the fundemntals, however there now has been two trigers, the penant down yesturday and now today the trend chennel Deviation Down. This was in an upward trend as shown in red on the attached graph and turned black today, a start of a new trend downwards.
Could be a placement coming or more disappointing drill results.
kind reg
ang

 

[laurie]

I don't now much about the fundemntals, however there now has been two trigers, the penant down yesturday and now today the trend chennel Deviation Down. This was in an upward trend as shown in red on the attached graph and turned black today, a start of a new trend downwards.
Could be a placement coming or more disappointing drill results.
kind reg
ang

Your making the same mistake as many others you are valuing AGS sp based on Uranium they have Maldon with their gold project in Vic and Copper/Gold at M2 in S.A. etc

cheers laurie

 

[danc]

And WHAT dissapointing drill results were they???, did i miss some thing????Funny how we all see diffrent things on charts. i see the major low on a spiked bottom rite on .618 of the range and big big vol over two days, i now see another spiked low on .618 retracement once again with very low vol, could we be seeing a higher low??? all this on the next probable aust ux3 miner.with plenty more results to come, any how lets see what the week brings.What i also see is a normal basing patten after a blow off into a low any how we will see.Oh have just noticed if it by chance moves up from here i also see a probable hier double btm and both these btms sit on the gap up there by closing the gap, billy mclaren would if it moves up from here see this as a very strong basing patten , if it moves up ofcourse.

 

[spooly74]

This looks really sick at the moment.

Two bad announcements in a row I guess

Anybody still holding or dare I say looking for an entry soon?

 

[Broadside]

This looks really sick at the moment.

Two bad announcements in a row I guess

Anybody still holding or dare I say looking for an entry soon?

I hold half, don't want to crystallise any more gains, in at average 35c and sold half upon JORC announcement at $2.28. If it goes down another 20c or so I might buy some back, still like it very much in the medium term but sentiment is against it in the short term, no question. I still think it will be up in a couple of years once they increase the resource and have a timetable to mine.

 

[Ang]

can't believe what I am reading a stock that s going down volume OBV looking sick and there is no indication that this is going up soon, especially looking at my graph as I attached above I wouldn't be entering until I see a higher low. It is now making lower lows. Don't get me wrong I have a very small parce 1400 and loosing $300 and would also like to see it go up. The only thing keeping me in there is the story. BAD MOVE!!!

kind regards
Ang

 

[spooly74]

The economics of digging up 1% of uranium over small 1-5m intervals, @ 180m depth must seriously come into question

With an average grade of 3700ppm at the moment contained in a small about of orebody, and given the generous cutoff grade of 500ppm used (twice the average of other 'potential' mines)

If this mine is not economical, then the uranium bull is finished.

 

[spooly74]

re: the cutoff. For isl operations you can't have a lower cutoff. won't do a thing- this aint afrika.

AGS is not going down on economics on the operation. It is economic because the beverley mine next door operates fine. Lets be frank. It had a very high valuation and priced for perfection. Whatever method you use, their share of the deposit was only 8 million pounds. Needs to prove up more ore

It was you who mentioned digging it up

As for the the west being ISL, don`t count on it.
On the ABC (Catalyst) a couple of weeks ago, a spokesperson for Heathgate Resources mentioned the company were looking into an open pit mine a few kilometres from the Beverley mine.....mmmmmmmm

How much more would they take out if the scoping study reveals open pit? ... 30% more ore?