ALK - Alkane Resources

[peter2]

I'm glad I wasn't the only one thinking that those grades of gold are pretty poor. OK there's a lot of it, but not worth mining unless the POG stays above $2000AUD.

 

[Padowan]

I'm glad I wasn't the only one thinking that those grades of gold are pretty poor. OK there's a lot of it, but not worth mining unless the POG stays above $2000AUD.

I think the attraction with the alkane release is that although the grades of gold and copper look low, in the context of the potential look alike analogies to the near by Cadia/Ridgeway mine which is one of Australia’s largest and lowest cost gold mines the results are encouraging.
Looking at the Newcrest website which is the owner of Cadia/Ridgeway grades are low but the bulk scale of the mine makes it low cost
https://www.newcrest.com.au/media/resource_reserves/2018/Ore_Reserves.pdf

 

[Miner]

I think the attraction with the alkane release is that although the grades of gold and copper look low, in the context of the potential look alike analogies to the near by Cadia/Ridgeway mine which is one of Australia’s largest and lowest cost gold mines the results are encouraging.
Looking at the Newcrest website which is the owner of Cadia/Ridgeway grades are low but the bulk scale of the mine makes it low cost
https://www.newcrest.com.au/media/resource_reserves/2018/Ore_Reserves.pdf

Cadia grades are one of the best. Within Newcrest the poorest grade comes from Telfer mines. Some 0.6 to 0.7 gm per ton.

 

[Padowan]

Cadia grades are one of the best. Within Newcrest the poorest grade comes from Telfer mines. Some 0.6 to 0.7 gm per ton.

Chairman bought more stock, insider buying got to be seen as a good thing?

 

[Padowan]

Chairman bought more stock, insider buying got to be seen as a good thing?

View attachment 97405

I see daily volume declining, does this mean the discovery bubble is running out of steam?
I punted into ALK at 47 cents shortly after the first drill result, there has been some transformational value created from discoveries ( SFR , SIR) but seems to me this could be more of a slow growth (like GOR ) because of lower grades and bulk tonnage (lots of drilling required and potentially big capex) alternatively ALK’s new discovery could be a target for NCM

 

[Padowan]

I see daily volume declining, does this mean the discovery bubble is running out of steam?
I punted into ALK at 47 cents shortly after the first drill result, there has been some transformational value created from discoveries ( SFR , SIR) but seems to me this could be more of a slow growth (like GOR ) because of lower grades and bulk tonnage (lots of drilling required and potentially big capex) alternatively ALK’s new discovery could be a target for NCM

View attachment 97472

Another director/insider buying today supports their internal belief they are onto something from the original release on the 9 September.

Although if an insider is buying it means they can’t be in possession of any new material information which is a concern as they should have follow up drilling well underway by now.

Price closed up another 11% today.

 

[Miner]

Another director/insider buying today supports their internal belief they are onto something from the original release on the 9 September.

View attachment 97493


Although if an insider is buying it means they can’t be in possession of any new material information which is a concern as they should have follow up drilling well underway by now.

Price closed up another 11% today.

View attachment 97494

Good one. I was trying to do the same and glad, I am not the only one.
With the investment from a director at this price, only shows a positive sign.
This one is a rare gem on my portfolio (can not forget also have NUH and SYH - almost half of cost price) rose up to 170%. Still holding to see where it leads to

 

[Padowan]

Good one. I was trying to do the same and glad, I am not the only one.
With the investment from a director at this price, only shows a positive sign.
This one is a rare gem on my portfolio (can not forget also have NUH and SYH - almost half of cost price) rose up to 170%. Still holding to see where it leads to

Well ALK continued its upward journey today +15%, I have no insights as to where this will end up.

 

[Miner]

From the share price performance of late and directors buying I also believe there are something more than market hype on a low grade discovery announced.
We have to wait and see. Surely others and Asx are watching.
One speculation could be a new acquisition either way. Can not be immediate to get flogged by tickets of insider trading. So natural trend will be depression of price by some selling next week. My punt.

 

[Miner]

From the share price performance of late and directors buying I also believe there are something more than market hype on a low grade discovery announced.
We have to wait and see. Surely others and Asx are watching.
One speculation could be a new acquisition either way. Can not be immediate to get flogged by tickets of insider trading. So natural trend will be depression of price by some selling next week. My punt.

Read Barry's article. He is a veteran on this field. I am still struggling why they are all selling the low grade of copper and gold just being in the porphyry potential
" The 502m intersection grading 0.48g/t gold and 0.2% copper has seen Alkane’s share price climb almost 80% to 67.5c since it was announced on September 9.

Alkane said the drilling results provided “clear evidence of Cadia-style mineralisation and grade over hundreds of metres”,

Cadia is, of course, the 3 billion tonne resource grading 0.36g/t gold and 0.26% copper being mined by Newcrest near Orange, with its gold production costs (after copper credits) coming in at a magical $US171/oz for the 912,000oz produced in FY2019."
https://www.asx.com.au/asxpdf/20190916/pdf/448k0jvlmr2z2k.pdf - Newcrest presentation at Denver.
https://www.livewiremarkets.com/wir...-ignites-interest-in-nsw-s-porphyry-potential (if the link does not work please let me know to upload full report) -

 

[Miner]

Read Barry's article. He is a veteran on this field. I am still struggling why they are all selling the low grade of copper and gold just being in the porphyry potential
" The 502m intersection grading 0.48g/t gold and 0.2% copper has seen Alkane’s share price climb almost 80% to 67.5c since it was announced on September 9.

Alkane said the drilling results provided “clear evidence of Cadia-style mineralisation and grade over hundreds of metres”,

Cadia is, of course, the 3 billion tonne resource grading 0.36g/t gold and 0.26% copper being mined by Newcrest near Orange, with its gold production costs (after copper credits) coming in at a magical $US171/oz for the 912,000oz produced in FY2019."
https://www.asx.com.au/asxpdf/20190916/pdf/448k0jvlmr2z2k.pdf - Newcrest presentation at Denver.
https://www.livewiremarkets.com/wir...-ignites-interest-in-nsw-s-porphyry-potential (if the link does not work please let me know to upload full report) -

i should have paid more attention to Barry's article and more research considering ALK has been sliding down significantly over last few weeks. I wonder what kind of calculations the directors did when buying so heavily to reach current situation. Technically it is a good stock but psychologically can not understand the south dive.
https://markets.ft.com/data/equities/tearsheet/summary?s=[URL]http://www.alkane.com.au/nomination-of-director-to-genesis-minerals-limited/ [/URL](Should the market wait patiently instead of a knee jerk reaction from Alkane Director joining Genesis ?)

http://www.alkane.com.au/alkane-rep...esults-for-roswell-and-san-antonio-prospects/
Followers of ALK - what your research says on this darling stock ?

 

[Padowan]

i should have paid more attention to Barry's article and more research considering ALK has been sliding down significantly over last few weeks. I wonder what kind of calculations the directors did when buying so heavily to reach current situation. Technically it is a good stock but psychologically can not understand the south dive.
https://markets.ft.com/data/equities/tearsheet/summary?s=http://www.alkane.com.au/nomination-of-director-to-genesis-minerals-limited/ (Should the market wait patiently instead of a knee jerk reaction from Alkane Director joining Genesis ?)

http://www.alkane.com.au/alkane-rep...esults-for-roswell-and-san-antonio-prospects/
Followers of ALK - what your research says on this darling stock ?

@Miner
I still like the potential at the Boda prospect where the Cadia style mineralisation was intersected in September, but must admit I sold out in the low 70’s after the first leg of the uptrend pulled back. My decision to sell was purely discretionary as I was incorrectly concerned about an opportunistic capital raising (which never eventuated) and became impatient about lack of follow up drilling results.
ALK seem well capitalised with A$74M in the bank and no debt, but if I interpret their latest presentation correctly From the Zurich precious metals conference they are in the transition from open pit to potential underground production at Tomingly, and are looking to treat low grade stockpiles at 50% of plant capacity through 2020, which to me could mean reduced cashflow and more capital to be invested
ALK’s other significant project is a rare earth project which they have been tickling along for ages; the outlook for REE has improved off the back of increasing use of renewable wind turbines and electric vehicles but its a market still dominated by China and hellishly complicated from an ore processing point of view ( only have to look at the Lynas experience) and more suited to a WES type company with a huge balance sheet and a chemical processing track record

 

[Miner]

@Miner
I still like the potential at the Boda prospect where the Cadia style mineralisation was intersected in September, but must admit I sold out in the low 70’s after the first leg of the uptrend pulled back. My decision to sell was purely discretionary as I was incorrectly concerned about an opportunistic capital raising (which never eventuated) and became impatient about lack of follow up drilling results.
ALK seem well capitalised with A$74M in the bank and no debt, but if I interpret their latest presentation correctly From the Zurich precious metals conference they are in the transition from open pit to potential underground production at Tomingly, and are looking to treat low grade stockpiles at 50% of plant capacity through 2020, which to me could mean reduced cashflow and more capital to be invested
ALK’s other significant project is a rare earth project which they have been tickling along for ages; the outlook for REE has improved off the back of increasing use of renewable wind turbines and electric vehicles but its a market still dominated by China and hellishly complicated from an ore processing point of view ( only have to look at the Lynas experience) and more suited to a WES type company with a huge balance sheet and a chemical processing track record

Hello @Padowan
your confidence and pressure of price will be a good enabler .

 

[Dona Ferentes]

more a gold / Cu explorer than rare earths, these days

Announced "significant exploration results from drilling at the Boda Prospect" in NSW. Four months ago (40c), the company stated

...the project area has already delivered some strong indications of a big porphyry system near surface at Kaiser and, along with the results from this diamond drill hole at Boda, we can see clear evidence of Cadia-style mineralisation and grade over hundreds of metres.

and now its coming to fruition

 

[mikmac]

Another positive announcement today around the Boda prospect. Shame it was at this time given the predicament the world is in.

https://www.asx.com.au/asxpdf/20200323/pdf/44g92rkdh9nz5q.pdf

 

[Padowan]

Another positive announcement today around the Boda prospect. Shame it was at this time given the predicament the world is in.

https://www.asx.com.au/asxpdf/20200323/pdf/44g92rkdh9nz5q.pdf

Agree outstanding result mikmac lost in CV19 Pandemic news
Back on the watch list

 

[Miner]

Agree outstanding result mikmac lost in CV19 Pandemic news
Back on the watch list

Yes, Alkane produced a good exploration result.
Market under the depressed situation welcomed with a minor uplift is a great joy. If it was any lower, then the share price would have dived severely.
Now I thought to look deep into the exploration result.
It is copper and gold and not a very high grade to get market excited. Yes in last exploration they claimed (from memory) to have Cadia like polymetallic structure. This time, I did not see that.
Secondly with 0.55% gold and a little over 1 % copper would mean, lot of dirt to get substantial gold. So lot of crushing, milling, power consumption, tailing handling, large thickener and high processing cost. Eventually I would not be surprised to see the AISC at mid to top quartile (I have not done the numbers critically so any error guessed here, would be corrected and do your own research).
The net profit will be higher when they start producing due to copper credit.
Look at KLA - with such a fantastic grade, the prices are depressed. So how can we expect miracle from Market? If the grade was consistently higher than 1 % then - a great fun.
The report does not say what would be the total life of mine to produce. How deep it to go to make it real viable operation - deeper you go, more money you spend and lift up the ASIC.
Market is brutal now. So if it has not punished ALK today, is a very good sign itself.
The sentence 'significant high grade gold- copper mineralisation" is only a marketing statement.
Let me learn from others if my garbage narration was not right.

 

[Dona Ferentes]

more a gold / Cu explorer than rare earths, these days....

and about to become completely AU/Cu focusing on Boda. ASM will be where Rare Earths are housed.

The board of Alkane has resolved to progress the demerger of Australian Strategic Materials Limited (ASM) and listing ASM on the ASX, subject to finalisation of outstanding regulatory matters and shareholder approval at an Alkane Shareholder Meeting expected to be convened in early July 2020. ASM is currently anticipated to list in mid-July 2020.

At the completion of the Demerger, if approved, shareholders of Alkane will have the same proportional ownership in both Alkane and ASM, with the exception of Ineligible Foreign Shareholders (refer to the upcoming Demerger Booklet for details relating to investors with registered addresses outside of Australia and New Zealand). Under the Demerger, the Alkane and ASM entities will be separated, and no cross-holdings between companies will exist.

If the Demerger Resolution is approved by Alkane shareholders at the Shareholder Meeting, Eligible Shareholders will receive one (1) ASM share for every five (5) Alkane shares held on the Record Date

 

[Dona Ferentes]

Broader Strategy for Gold Assets

▪ Stated vision to become a multi-mine Australian gold producer
▪ Tomingley well-positioned to anchor strategy
▪ Strong regional NSW exploration portfolio (Boda and North Molong Porphyry)
▪ Potential growth via strategic investment and future M&A
▪ Collaborative approach to investments with board representation agreed - holds 15% of Genesis Minerals GMD and 13% of Calidus Minerals CAI (both WA goldies)

 

[Miner]

Broader Strategy for Gold Assets

▪ Stated vision to become a multi-mine Australian gold producer
▪ Tomingley well-positioned to anchor strategy
▪ Strong regional NSW exploration portfolio (Boda and North Molong Porphyry)
▪ Potential growth via strategic investment and future M&A
▪ Collaborative approach to investments with board representation agreed - holds 15% of Genesis Minerals GMD and 13% of Calidus Minerals CAI (both WA goldies)

When I settled end of the day to post the same as above, noticed, you have already posted. Good work and it saves my effort too
Nonetheless, ALK rose good level today after the announcement.
Reading the company's ambitious project schedule, I am a bit startled or surprised.
https://www.asx.com.au/asxpdf/20200520/pdf/44hyxqhpkbf190.pdf
It will be a world record in the field of Project Management if the key milestones are met and company produces at the design plate capacity so soon and meteoric ramp up.
Do hold ALK and looking forward to see performance of ASM.