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ALK - Alkane Resources

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Re: ALK - Alkane Exploration

This has been steadily climbing up to 28.5 cents now on decent volume. Getting close to previous resistance between 29-32 cents as well. Too early to tell where this will go, but if it gets above 30 cents it could get interesting...
 
Re: ALK - Alkane Exploration

Very surprised to see that Alkane did not release the BCI announcement about Iron intersections. As far as I know they hold 9 million BCI shares, so their holding went from $9.45 million to $13.95 million in one day. Surely that's price sensitive :confused:
 
Re: ALK - Alkane Exploration

rub92me said:
This has been steadily climbing up to 28.5 cents now on decent volume. Getting close to previous resistance between 29-32 cents as well. Too early to tell where this will go, but if it gets above 30 cents it could get interesting...
Click to expand...

Fairly bullish move by the order at 31c if they hold. Stock has been trading within 27.5c to 28.5c for the last 5 days and would be fair to say the buyers have been fairly stubborn. It did have good supply coming in at 28.5c keeping it down but yesterday it broke out to 29.5c suggesting this may have dried up for now.
 

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Re: ALK - Alkane Exploration

Well, it's certainly on the march at the moment. Up 15% to 33 cents :D . Not releasing that BCI news openly could cost them a rap on the knuckles by the ASX if the rise continues.
 
Re: ALK - Alkane Exploration

Not really sure about the style of deposit but if you took a 20m wide zone of 3g/t Au over 600m you migtht end up with something like 100,000 ounces near surface = ~60Mill US with moderate production cost and presumably facilities near by that would take it too. The drill results are good enough to start a moderate re-rating
 
Re: ALK - Alkane Exploration

Looks like the 'outstanding' break a couple of days ago wasn't so outstanding after all. Still heading in the right direction from a longer term perspective though.
 
Re: ALK - Alkane Exploration

37c

Up 27.586% (8 cents)

No news


Volume - 1,016,257


Ann. 27 Sept.

AIRCORE DRILLING FURTHER EXTENDS CALOMA TARGET

Further reconnaissance aircore drilling has been completed at the Caloma
Prospect within the Tomingley Gold Project. The drilling confirmed the
orientation of several mineralised zones but also identified two new east-west
structures in the north. This extended the central zone of mineralisation to
greater than a 700 metre strike length.

Two core holes were also completed to assist with the geological modelling.
Detailed logging and sampling of the core is still in progress but several zones of
alteration and mineralisation have been observed.

etc.
 
Re: ALK - Alkane Exploration

Recent media may have assisted the share price

http://www.resourceinvestor.com/



By Sarah Belfield, 09 Oct 2007, 11:58 AM

PERTH, Australia (ResourceInvestor.com) -- Buyers of rare earth elements are looking for potential alternatives to Chinese sources given a tight market is mooted for the medium term at least, and cropping up on their radars is the Australian rare earth hopeful Alkane Resources [ASX:ALK].


Closing price - 36c
 
Re: ALK - Alkane Exploration

INTERVIEW WITH ALKANE RESOURCES (ALK)
MANAGING DIRECTOR, MR IAN CHALMERS​

10 October 2007 (5.00pm, EST)
MoneyMajix


Good afternoon, Mr Chalmers

I WAS INTERESTED TO SEE THE INCREASE IN THE ALKANE SHARE PRICE TODAY. IT WAS UP ALMOST 25% TO 36 CENTS.

WHAT DO YOU THINK HAS PROMPTED THIS MOVEMENT?
WAS IT RECENT MEDIA IN THE US?

I am not sure but Alkane was favourably mentioned at
http://www.resourceinvestor.com/

Maybe US investors were buying overnight.

In the past, Alkane has had more positive exposure overseas than in Australia.
This may be one of the reasons Alkane is so undervalued, in my opinion.


WHAT PROGRESS IS BEING MADE WITH ALKANE’S VARIOUS PROJECTS?

Firstly, there is the Tomingly Gold Project in central west, NSW.

This is an exciting project and a feasibility study for development is being undertaken.

We have found a new deposit called Caloma about two to three months ago which is part of the bigger project. This pushes the resource potential to about one million ozs.

Previously identified is 600,000 ozs. That is drilled out to resource status and it contains near 75% in Measured and Indicated, and not a figment of my imagination.


HOW WOULD YOU VALUE THE TOMINLGY GOLD PROJECT RESOURCE?

Conservatively, some analyst value resources at around $100 per oz., so on the 600,000 ozs., gives us a valuation of $60,000,000.

It you take it as 1,000,000 ozs., then the value would be $100,000,000.

This project is 100% owned by Alkane Resources.


CAN YOU DISCUSS THE ZIRCONIA PROJECT AND EXPLAIN A BIT THE USES OF ZIRCONIA?

Alkane also owns 100% of a rare metal-rare earth deposit near Dubbo, which we call the Dubbo Zirconia Project, but which contains several metals including zirconium and niobium, as well as rare earths.

Some people would think of fake diamonds when they hear about zirconia but zirconia has a huge spectrum of uses.

It is used as a drying agent in paint, and replaces lead, so it is environmentally friendly.

It is also used in electronics, catalysts, ceramics and many computer components.

A demonstration plant will be starting in November which will produce several tonnes of sample products for distribution to potential customers.

The article in the US referred to the other part of the project in Dubbo which is Rare Earths. These also have a great spectrum of uses, including special magnets which are an important component of hybrid electric car motors.

The deposit is very large and an open cut mine here could last 200 years.

The feasibility study is ongoing and we won't be able to make a decision about the project until next year.


CAN YOU PROVIDE US WITH SOME DETAILS OF YOUR JOINT VENTURE WITH NEWMONT MINING?

Yes. We are very excited about it. The joint venture is in the Orange area, near Newcrest's large Cadia operations. We are exploring and it is early days.

However, last year we announced some spectacular gold intersections but there was not much market reaction at the time.

We have a lot of work to do there but it does look encouraging.


ALKANE HAS A SIZEABLE HOLDING IN BC IRON.

Yes. We floated BC Iron (BCI) and we are still hold shares in the company.

The value of that holding is around $17 million dollars at today's share price.



ALKANE HAS COPPER INTERESTS, TOO?

Yes. We have a small copper deposit near Wellington which we hope to do some more work on later this year or early next year. We want to see if we can expand the resource and progress towards development.


DO YOU THINK THE MARKET HAS PLACED A REASONABLE VALUATION ON THE ALKANE RESOURCE SHARE PRICE?

At the current share price of 36c the company is valued at around $70 million.

We have a value of $17million just for our holding of BC Iron.

So that values the resource assets at less than $53 million, which in my opinion barely values the Tomingley Gold Project.


WHY WOULD YOU SUGGEST PEOPLE BUY SHARES IN YOUR COMPANY?

That's always a tricky question for a company Managing Director, but the current attraction of Alkane is it's multi commodity resource base, focussed within a relatively small area in central NSW, and with a very good chance that at least two projects could proceed towards development in the next two to three years. That would see us back into cash flow and hopefully profits.




Mr Chalmers, thank you for your time this afternoon.

It sounds like there is a lot going on and more news will be forthcoming to the market in the future.


The views and opinions expressed in this interview are not necessarily those of the interviewer.
 
Re: ALK - Alkane Exploration

Quarterly

http://www.asx.com.au/asxpdf/20071030/pdf/315gk84q3xkv1q.pdf

KEY SUMMARY

EXPLORATION – TOMINGLEY GOLD PROJECT

Further reconnaissance aircore drilling has been completed ...

Geological interpretation of the RC and AC drilling at Caloma has
identified a potential of 120,000 to 190,000 ounces of gold.

A scoping study has indicated that the Project can support a 1
million tonne per annum open pit operation with a life of at least
four years, producing about 70,000 ounces a year at a cash
operating cost of A$420 to A$460 per ounce.


DUBBO ZIRCONIA PROJECT

Construction of the Demonstration Pilot Plant (DPP) at ANSTO is
nearing completion and should be operating in November.
The dramatic changes in the dynamics of the rare earth industry
has prompted a review of potential production of rare earth from
the DZP.


etc
 
Re: ALK - Alkane Exploration

http://dubbo.yourguide.com.au/news/local/general/chemical-plant-to-put-toongi-on-map/1098883.html

05 December 2007 - 10:49AM

Chemical plant to put Toongi on map By KIM BARTLEY

In a huge shed at Lucas Heights sits a key component in the proposed establishment of a $200 million chemical processing plant that could employ Dubbo and district residents for the next two centuries.
Yesterday Perth-based company Alkane Resources announced that its demonstration pilot plant for the so-called Dubbo Zirconia Project was almost ready to roll.

About 100 tonnes of rock from a massive metals deposit at Toongi are waiting at the 24-metre by 24-metre shed to “go in one end” of the demonstration pilot plant and come out the other as products in huge demand worldwide.

In fact a current international rush on the likes of zirconium, niobium, yttrium and “rare earths” has encouraged Alkane to refocus on a long-held plan to build its world-first plant.

A $3.3 million dollar-for-dollar Federal Government grant has been the catalyst for Alkane to finally get the demonstration pilot plant off the ground with the aim of producing sufficient product for interested buyers to try.

“We’re at an extremely interesting stage,” Alkane Resources managing director Ian Chalmers said during a visit to Dubbo this week.

“We hope the demonstration pilot plant will be working before Christmas, certainly no later than mid-January.

“The plant does two things. One, it proves the flow sheet ... it also enables the engineers to start costing out a commercial plant. But perhaps the most important thing is that it will produce several tonnes of products.”

Their uses are numerous and growing, he said. Zirconium is a component in a range of man-made goods including paint, deodorant and cars.

“The whole market structure and pricing has changed so much in the last 12 months that at this stage we think the project has a very, very good chance of getting up,” Mr Chalmers said.

He describes the proposed $200 million plant at Toongi as a “seriously big investment” and Alkane’s largest “by a long shot”. If the demonstration pilot plant meets expectations, Alkane will start work on “all the other processes” including a development application and environmental assessment.

“Sometime during 2009 we would hope to be in a position to make a decision to actually start developing,” Mr Chalmers said.

The “sophisticated chemical plant” would take about 15 to 18 months to build.

“We would be targeting production before the end of 2010,” the managing director said. “The next six months to 12 months are pretty critical.”

Based on the size of the Toongi resource, Alkane estimates the plant would employ up to 100 people for 200 years.

kim.bartley@ruralpress.com
 
Re: ALK - Alkane Exploration

At last, investors start to catch up with Alkane Resources' golden glitter



* Barry FitzGerald
* March 3, 2008


Alkane ResourcesTHE market looks finally to have realised that Alkane Resources (ASX code: ALK) is on to something big at the McPhillamys gold prospect in its Moorilda joint venture with US heavyweight Newmont near Orange in central western NSW.

It's early days and McPhillamys is not the next best thing since sliced bread.

But in a market crying out for leverage to decent gold discoveries because of the surge in gold prices to record highs, the prospect's multimillion-ounce potential has made Alkane something of a hot stock.

Alkane closed at 51.5� on Friday, a 3.5� increase on the day. It is up 49% from the 34.5� it was trading at two weeks ago as word spreads on McPhillamys and the group's near-term gold production plans at Tomingley near Dubbo.

Recent drill results from McPhillamys extended the gold mineralisation to 350 metres deep, serving to confirm Alkane/Newmont were on to a "large gold system".

Newmont is one of the world's biggest gold producers and needs multimillion-ounce discoveries to keep its interest up.

It is earning a 51% interest in McPhillamys by spending $5 million - and judging by results, McPhillamys might just be what Newmont is looking for in a region best known for Newcrest's big-time gold/copper operations in the nearby Cadia Valley.

On February 18 Alkane - as operator of the joint venture - released the results from one of the two diamond core holes drilled late in 2007 into the central section of the football-shaped McPhillamys deposit to test the down dip and down plunge extension of the gold and base metal (zinc) mineralisation encountered in the 2006 drilling program.

Hole KPD002 returned 349.25 metres grading 0.87 grams of gold a tonne from 97.75 metres, including 224.75 metres grading 1.16 g/tonne from 207 metres, 51 metres grading 1.87 g/tonne from 212 metres and, for good measure, a discrete zone of zinc mineralisation of 11 metres grading 1.35% zinc from 103 metres.

On February 26, results from the second hole - KPD003 120 metres north of KPD002 - were released.

It was more of the same, with 262.7 metres grading 1.32 g/tonne gold from 134 metres and including 203.7 metres grading 1.62 g/tonne gold from 193 metres, 48.7 metres grading 2.83 g/tonne from 348 metres and a discrete 15-metre zinc zone that returned 1.07% zinc from 53 metres.

The forward drilling program has yet to be determined but you would have to think that with McPhillamys' previous land access issues a thing of the past, Newmont will want to pick up the pace as much as Alkane would like to.

Normally a hiatus in exploration drilling at a property such as McPhillamys could be expected to dim interest in a junior such as Alkane. But Alkane is not a one-trick pony thanks to its Tomingley gold project and its Dubbo zirconia project.

Those projects were the main focus of a February 15 research note by Basil Burmeister at Lonsec. Alkane was then trading at 34.5� a share and Burmeister reckoned that based solely on the Tomingley gold project, cash and a shareholding in iron ore hopeful BCI, Alkane shares were worth 49�. Development of the Dubbo zirconium project would add between 29� and 96� a share.

After assuming a nominal value for exploration projects (the McPhillamys results were not in at the time), Lonsec arrived at a valuation range of between 80� and $1.47 a share. The report is there for all to see on Alkane's website.
 
Re: ALK - Alkane Exploration

I have been requested by a very and polite chimp for my views on ALK. A stock I don't have but maybe I should.

Below is the chart I did today wihich clearly displays a confirmed long term uptrend over the last 2 years. Volatile, however uptrend is confirmed. The lower trendline is only that low due to the drop on 22/1/2008. I could have ignored this one off event and lifted it, but considering the market as it is I left it.

ALK has come down along with the gold price recently, however that is seemingly to be shortlived as the gold price went up around US$23 last night and is looking like going a lot further, it to on a long term uptrend.

In answer to my friend I think worst case scenario short term for ALK could be around 35c if it respects the long term uptrend support. As it has done consistently and I would expect it will continue to do so. More so I believe the short term support line I have drawn will be respected as it has been on both last Thursday and Friday and ALK will go on to continue the uptrend.

ALK has recently again respected the 110-150 day MA and I note my MMA indicators have not closed up in the recent short term downtrend, as the longer term uptrend has been strong. This is a very positive sign as is the increasing RSI and OBV.

Just analysing ALK technically I am wondering why I don't have any of these :banghead:. Fundamentally and technically it seems ALK is going a lot higher if this trend continues, and I can't see why it wouldn't as you await good news. Good luck to all the lucky ones who already hold, I need to find some more :2twocents
 

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Re: ALK - Alkane Exploration

Thank you very much Hangseng, for your analysis. It provides a lot more clarity than my original thinking. I'll hold at least through June to see how things go. :)
 
Re: ALK - Alkane Exploration

chimp said:
Thank you very much Hangseng, for your analysis. It provides a lot more clarity than my original thinking. I'll hold at least through June to see how things go. :)
Click to expand...

I just seriously require typing lessons :eek:

Or at least read the post more thoroughly, my apologies to the purists.
 
Re: ALK - Alkane Exploration

ALK share price is kicking on well, gold project seems on track and zirconia pilot project seems to be going well too... possible 'breakout' maybe? i'd like to hear other ppl's thoughts... any idea's kennas?
 
Re: ALK - Alkane Exploration

October 05, 2009

Alkane’s Rare Rise, With More To Come As The Gold News Sinks In

By Our Man In Oz
www.minesite.com/aus.html

No chief executive complains about his company’s share price rising by 43 per cent over three months, let alone 165 per cent over nine months, even if the market is possibly moving up for the wrong reason. That’s why Ian Chalmers, managing director of the rapidly re-emerging Alkane Resources, is happy to take a win from exposure to the rare earths industry when the best recent news flow from Alkane has really been about gold. “You certainly don’t hear me complaining,” he told Minesite today when discussing the company’s price rise from A16 cents in January, to A30 cents in July, and then up to A43 cents this week. “We’ll take a higher price anyway we can, and if rare earths is what the market wants then we’ve got a lot of it at our Dubbo project.”
Rated as one of the world’s biggest undeveloped deposits of exotic materials, such as zirconium and niobium, and rare earths such as dysprosium and terbium, the Dubbo project, located near a town of the same name in western New South Wales, is one of the long-term assets in Alkane. Over the past 10 years it has been in and out of the headlines as demand for exotic metals rises and falls. The latest driver which has put Dubbo back in the news is China’s insatiable demand for the materials which are essential ingredients in making high-strength magnets such as those used in cars and electronics, and in a host of other applications such as key parts of the nuclear power industry.

Despite already being the producer of 95 per cent of the world’s rare earths China wants more. It has slapped an export ban on its local miners and launched a worldwide shopping spree which has included raids on a number of Australian mining companies. Japan, which is also a big consumer of rare earths is unimpressed with the Chinese drive, as are Australia’s foreign investment regulators who halted a takeover bid for Lynas Corporation, owner of the Mt Weld project in Western Australia. For Alkane, this combination of events has excited speculators who see Dubbo as a sleeping giant inside Alkane, which might be correct, but it’s not going to awaken in a hurry. Testing on Dubbo ore is still underway and it probably will not be until the middle of next year before Alkane is ready to either formulate a development plan, or bring in a speciality process and marketing partner.

In the meantime, what investors should really be looking at is the gold in Alkane. Firstly, at the Tomingley project which is now likely to be ready for a development green light around November, and secondly at the drill results coming from the McPhillamys joint venture with Newmont. Last week, without anyone really noticing because of the fascination with unpronounceable metals in the rare earths family, Newmont and Alkane filed drill results that included 242 metres (roughly a quarter of a kilometre) of material assaying 0.83 grams a tonne of gold starting at the relatively shallow depth of 92 metres. Included in that whopper of an intersection was 137 metres at 1.29g/t from 104 metres, and 20 metres at 5.52g/t from 169 metres.

Deciphered, those results show that McPhillamys is not just getting bigger and is well on track for an initial ore resource in the range of 2.5 million ounces, but it’s getting richer and wider at depth. “We are in the hands of Newmont when it comes to McPhillamys,” Ian said. “They’re moving it forward, and I hope by the end of the year we might be able to put out a resource on it.” That resource calculation is important because it will be the first look at the potential size of McPhillamys, which is located in a region known for containing world-class orebodies.

“We think that it will be a big number because in my view McPhillamys is the best gold discovery in Australia since Tropicana,” Ian said in what some outside observers might seen as somewhat daring prediction. “The only difference with Tropicana is that it’s in a slightly different location to Tropicana,” a remark which provides a glimpse into Ian’s dry humour because Tropicana is in a remote patch of semi-desert east of Kalgoorlie in Western Australia with minimal services. “At McPhillamys we’ve got a power line, gas pipeline, good roads, and a town of 40,000 people just up the road.”

Pushed for a guess as to the likely initial resource estimate Ian said he had been using a number of 2.5 million ounces for some time. “If you look at my presentations over the past 12 months I’ve put in a back-of-the-envelope model estimating McPhillamys as a 2.5 million ounce resource, which is about where Tropicana started,” he said. “It’s certainly got that potential. It’s not just a figment of my imagination.”

If there is a downside to McPhillamys it is that Newmont holds an option to lift its stake in the discovery to 75 per cent by taking it through to a bankable feasibility study. But, flipped around that means Alkane would have title to at least 625,000 ounces (25 per cent) of the gold in McPhillamys, a handsome prize which will either become the source of regular cash flow, or cause Newmont to write out a large cheque for the residual 25 per cent, a cheque which would be much greater than Alkane’s current market capitalisation of around A$105 million.

Despite Ian’s caution about the market’s current fascination with rare earths (something he privately refers to as “lunacy”) there is no doubt that Alkane is a potentially big player in that game. But, before getting there the Tomingley project needs to be developed, with targeted gold output of between 50,000 and 70,000 ounces a year, followed by more news from McPhillamys which could become a significant share price driver next year.
 
Re: ALK - Alkane Exploration

It's probably time to reopen this thread.

Alkane AGM presentation from earlier this month gives some interesting insights to where this company is heading. Read the full report at http://www.alkane.com.au/.

The Dubbo Zirconia project in particular is an exciting prospect for investors with development pathway indicating production by 2012.
This from the report:

Majority of “downstream” zirconium products are derived from zircon, whose
output is governed by ilmenite/rutilefrom mineral sands mining operations.

China dominates downstream zirconium business at ~90% but feed is zircon. Niobium production dominated by one company, CBMM in Brazil with 90% of market.
Production costs are spread across the four metal outputs –zirconium (hafnium), niobium (tantalum), light rare earths and yttrium-heavy rare earths. Rare earth and yttrium production dominated by China (95%).
DZP offers new source particularly for important Y and HREE.

The DZP provides an alternative and strategic source for a number of important metals, and is capable of producing for hundreds of years from one ore body.

Project located in region with very favourable infrastructure and legislative
framework, both at a State and Federal level.


I think that the rare earths sector is grossly overlooked by investors. ALK and LYC are the major players in Australia. ALK appears to be strategically well positioned with the DZP and other non-rare earth projects coming along nicely.

Todays share price of 26c is nearly at it's 52 week low and is down from a high of 49c about 7 months ago before the market got the wobbles again. There has been no bad news from the company in that time.
This current price represents what appears to be an excellent entry point given the fundamentals of this sector.

I would be pleased to hear further commentary from followers of this largely ignored company.
 

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