Australian (ASX) Stock Market Forum

AQD - Ausquest Limited

Anyone got any comments or opinions on what the recent announcement re. new issues opions etc will do to this stock price.On another site someone posted that the share price is worth $9.00.Just new to share trading and appreciate picking others brains. :confused:


I've held this on an off for around 18 months. I'm currently NOT holding.

I had stock at an average buy price of 16.7 and recently sold when it rose to the current high 20's low 30's. There are a few bigger companies who've invested in them (Oxiana in May) but I'm not sure who's responsible for the recent buying which has pushed the prices up to their current prices.

The company has promised a lot but is yet to deliver. If I had 10K spare I'd just let it sit on AQD for the next 12 months but their lack of success has left me wary. If you enjoy a punt then these guys may be worth betting on but unless they hit "pay dirt" you may find this stock goes nowhere fast.


$9.00....... Um I don't know how they came up with that figure. Only one Analyst I know of has a buy on this stock. And it's listed as a Speculative Buy.

As to the rights issue I would say they are simply running out of cash. They had 7 million only 18 months ago and now they only have 2. (Prospecting is expensive work these days!) Given their lack of success, they may struggle to find investors this time, but it seems Australia has gold fever with resource stocks so they might get it easy.
 
AQD is a very very interesting story to look at,

I do not hold any shares, nor have I ever held, nor do I have any intention of buying but let me explain why its so interesting,

You see back in August 2005 I watched AQD rocket from 5c to 30c in a few days and then continue to march hiher to 60c in the coming weeks and all of this was based on the fact that RIO Tinto farmed into one of its Iron Ore projects,

This is the stock that made me search for and discover JMS at 5c which did eventually do its own little rocket to 40c,

Anyway back to AQD, it failed to find any Iron ore however it then picked up some Manganese ground and I was like Manga what?

However its share price rebounded recently from lows of 16c to go as high as 64c (looks like a big double top to me) on the back of work on its Manganese project,

And now as before such gains are making me sit up and take note of this metal Manganese it made CSM a super star, its had record rises and is sorta like the dark horse metal that may sweep the mkt net as the new flavour
 
Other are expressing that sentiment too...

http://business.theage.com.au/manganese-a-quiet-achiever-in-the-iron-boom-but-the-noise-is-about-to-start-20080316-1zs2.html

AQD was having a nice run until they announced their first drill result.
Two dud holes following last years bulls eye... I just missed my planned profit take and dropped straight back to square one:banghead:
I'm inclined to think that they couldn't have got that lucky last year, more inclined to think they have just got very unlucky this year... There's something down there - yeah, I know... dust...

I'll hold for more drilling results...
 
Well that hold didn't last long. A third dud hole and this one much closer to the original one hole wonder... Looks much less prospective than it did a few weeks ago... I'm out...
 
Well that hold didn't last long. A third dud hole and this one much closer to the original one hole wonder... Looks much less prospective than it did a few weeks ago... I'm out...

Well the last hole wasn't a dud, and the magnetic image hasn't helped investors or management. That said they are starting to get a better idea as to the geology at Table Hill. The next few holes should be much more promising. TH is a big target, you didn't think it would be that easy did you?
 
Well the last hole wasn't a dud, and the magnetic image hasn't helped investors or management. That said they are starting to get a better idea as to the geology at Table Hill. The next few holes should be much more promising. TH is a big target, you didn't think it would be that easy did you?

This may still turn out alright but I wasn't prepared to watch the sp drop too far.

As you say the EM image is not proving as helpful as they would have liked.
The results suggest that both the manganese mineralisation and the clay alteration are conductive and are likely to be contributing to the airborne electromagnetic response being targeted by the drilling.

To be worthwhile at 288m depth, that 3.9m x 47.5% intersection would need to extend at similar thickness over a very large area, or thicken up considerably over a smaller area. I could live with the first two holes - at 900m away and then a further 1000m along the EM anomaly they were just too far away from the original THD01 hole - but I had hoped for better from holes closer to THD01. When THD06 came up blank at 300m west of THD01, things looked much less promising.

I agree their section drilling near THD01 is a better tactic. It's a pity they didn't start here and step out... Happy to watch and possibly re-enter if we see some good news.
 
The company has come off around 50% from its 60c high to now 30c,

But givent here is 250M+ shares on issue fully dilluted (ie including options which are in the money) it would give a fully diluted current mkt cap of $75m

So I guess what I'm curious to is how big exactly Table Hill can be?

Manganese is hot to trot, but even the undiluted mkt cap of around $50m isn't tiny, so any ideas how large Table Hill can be?

Also is there any Manganese nearby? ie BMY have Manganese grounds next door to OMH Manganese mine = Nearology, who's next door at Table Hill?

Cheers
 
The only nearology claim they have made is CSM’s Woodie Woodie mine 240km north of Table Hill. Not exactly near…

How big could it be? Somewhere between zip and zillions, I think… It may be worth flipping the logic and asking “how big would it need to be to be worth the punt…?” Well, here goes…

Fully diluted current mc approx $75m…

Everyone’s parameters would be a bit different on this… but, in the current market which severely devalues even the juiciest of JORCed up resources, for a company with nothing more than a target (albeit a good one) I want a prospective10x multi-bagger to justify the downside risk. So let’s go looking for a $750m future mc.

If we take the usual 10% IGV then we want a $7,500m resource.

Their November announcement refers to 350 USD/T based on $7/dmtu. I know the spot has subsequently gone higher but let’s be a little conservative… Our $7.5 bill resource is 21.4m T

Clay/Manganese bulk density – 2.5 T/m3 ? 3T/m3 ? Let’s say 3, and the resource looks like 7.1m m3

The indications from the EM work were suggesting a “laterally extensive, sheet-like body…” How thick might this sheet get at economic grade? Go with 4m and we get a pretty big number. For no particular reason, I’ll choose 25m thickness of economic grade… which would require an area of 285,000 m2.

In the context of a 3km x 6km target, we are looking for an economic zone that might be, say, 285m x 1000m x 25m. That sort of area would represent just 1.6% of the target area. Not impossible…

The goal of the second two holes was obviously to scout the potential for mineralisation at shallower depth - their modelling suggested it was “dipping shallowly to the south at depths ranging from approximately 120 metres in the north to over 300metres in the south.” I was not too distressed by these holes nor surprised by the market reaction. The fourth, much closer, hole was a bit disappointing and sufficient reason to send me to the sidelines until we get some more results. I will not be surprised if this does turn out ok one day but I’m happy to watch for the moment…
 
JTLP thankyou so much

I love it when I can be a bit lazy and get spoon fed info instead of crunching all the numbers myself :D

The only nearology claim they have made is CSM’s Woodie Woodie mine 240km north of Table Hill. Not exactly near…

240Km's is quite far as you say, but then CSM is the grand daddy of the Manganese players!



Fully diluted current mc approx $75m…

Everyone’s parameters would be a bit different on this… but, in the current market which severely devalues even the juiciest of JORCed up resources, for a company with nothing more than a target (albeit a good one) I want a prospective10x multi-bagger to justify the downside risk. So let’s go looking for a $750m future mc.

If we take the usual 10% IGV then we want a $7,500m resource.

Their November announcement refers to 350 USD/T based on $7/dmtu. I know the spot has subsequently gone higher but let’s be a little conservative… Our $7.5 bill resource is 21.4m T

Clay/Manganese bulk density – 2.5 T/m3 ? 3T/m3 ? Let’s say 3, and the resource looks like 7.1m m3


So basically 20Mt's is excellent in the Manganese game I gather,

What grades of Manganese do they need?

Also what sort of interesections do they need? ie Iron ore type ones 10m's+ min with really 20m's+ or can they be coal type 1m-5m's?



Thanks again
 
JTLP thankyou so much

I love it when I can be a bit lazy and get spoon fed info instead of crunching all the numbers myself :D



240Km's is quite far as you say, but then CSM is the grand daddy of the Manganese players!






So basically 20Mt's is excellent in the Manganese game I gather,

What grades of Manganese do they need?

Also what sort of interesections do they need? ie Iron ore type ones 10m's+ min with really 20m's+ or can they be coal type 1m-5m's?



Thanks again

Got me on the mind big boy? :p:

I'll take some credit though...and some of this manganese too whilst we are at it!
 
Errrrrrrrrrr

Note to self, get some sleep


lol how funny, I meant JBN, I'll just call ya Nimble from now on so I don't mix up abreviations


now about that sleep :p:
 
Errrrrrrrrrr

Note to self, get some sleep


lol how funny, I meant JBN, I'll just call ya Nimble from now on so I don't mix up abreviations


now about that sleep :p:

No worries YT. Time for the night shift to take a rest I think.

My post was just a bit of a play with numbers rather than any particular manganese expertise. I think 20mT would make it work for me but I’m not sure about the depth…

I have been looking at information on the South African underground mines to get a feel for what works… Assmang has massive reserves - 192 mT at 48%. Similar depth to Table Hill – 300m. They started pulling up 1 mT/yr in 1972 and haven’t made much of a dent in it yet…

http://www.mining-technology.com/projects/assmang/
http://www.assmang.co.za/o/manganese/nchwaning.asp

It seems that 45% + is considered high grade and I haven’t found too much info on players operating at grades below this. As for intersections, I looked back through old CSM quarterlies and saw intersections such as 33m @ 43.1% and 17m @ 49.9% described as encouraging. However, CSM were open pitting – underground is a different ball game…

Plenty to learn while the drilling continues…
 
Hey Nimble,

Beefing up my Manganese knowledge, so was reading through Aquila's recent discovery


Southern Project
Drilling on the southern project area of the Avontuur permit has discovered manganese mineralisation in the Hotazel Formation, which is interpreted to represent an extension of the Kalahari Manganese Field. The permit boundary is approximately 8 km north of the Wessels underground mining operations, where ore is mined over a depth range of 300 to 500m.
A programme of diamond drilling is in progress across the projected trend of the mineralisation. Highlights of the assay results from the next 3 holes drilled within the project area are as follows:
• 4.31m @ 38.81% Manganese
• 3.54m @ 47.52% Manganese
• 4.41m @ 49.79% Manganese
(Detailed analytical results may be viewed on www.tawana.com.au)
Northern Project
Drilling on the northern project area of the Avontuur permit is also testing manganese mineralisation in the Hotazel Formation along the northern end of the Avontuur Basin. The Avontuur Basin is approximately 10km long and is located 20km north of the larger Kalahari Manganese Basin. Further encouraging assays have been received from 6 diamond holes drilled along a 2km projected mineralised trend. Highlights of the assay results from these 6 holes are as follows:
• 5.40m @ 56.82% Manganese
• 3.68m @ 50.81% Manganese
• 2.68m @ 47.42% Manganese
and 1.86m @ 46.73% Manganese
• 2.12m @ 55.24% Manganese
and 1.57m @ 59.24% Manganese
(Detailed analytical results may be viewed on www.tawana.com.au)
Manganese ore is used in the steel making process primarily in the form of silico-manganese and ferromanganese alloys. The world demand for manganese depends directly on the requirements of the steel industry with the price of manganese ore continuing to rise in recent years.
 
Hey Nimble,

Beefing up my Manganese knowledge, so was reading through Aquila's recent discovery

In nearology terms it doesn't get much better than that. Just 8km from the worlds biggest reserves of high grade manganese. Every hole has had a good hit. And to think that the mines just south of there are apparently pumping out something of the order of 4 million T/yr of high grade manganese. If it does turn out to be an extension of the Kalahari field then there is potentially a lot of revenue to be had. Somewhat surprising that Samancor and Assmang did not have this area pegged...
 
August 13, 2008
ASX Release
MAIDEN 38 MILLION TONNE IRON ORE RESOURCE AT
ROCKLEA PROSPECT
• Inferred Resource of 37.6Mt grading 53.2% Fe (59.9% CaFe), 8.56% SiO2, 2.77%
Al2O3 and 0.04% P for Rocklea Prospect, 40km from Tom Price.
• Additional Exploration Target* of up to ~23Mt at similar Fe grades.
• In-fill and extensional drilling planned for Rocklea in October-November 2008 to
extend the resource base.
• AusQuest to expand its iron ore exploration effort in the Tom Price-Paraburdoo
region.
AusQuest Limited (ASX: AQD – “AusQuest”) is pleased to announce the completion of a maiden
resource estimate for its 75%-owned Rocklea Channel Iron Prospect, located 40km west of Tom
Price in the Pilbara region of Western Australia. The Inferred Resource, which was prepared by
Golder Associates Pty Ltd, comprises 37.6 million tonnes grading 53.2% Fe (59.9% calcined Fe).
In addition, the Company is pleased to report an Exploration Target* of up to 23 million tonnes at
similar grades to the Inferred Resource for the Rocklea Prospect, providing an immediate target for
in-fill and extensional drilling to further increase the JORC Code compliant resource.
The announcement of a maiden resource estimate for Rocklea, together with progress at the
Company’s other promising exploration prospects in the Tom Price-Paraburdoo region, has enhanced
the value of AusQuest’s Pilbara iron portfolio. In light of this and other recent industry developments,
the Company intends to step up its iron ore exploration activities in the region during the second half
of this year.
The Rocklea resource estimate is based on data from RC drilling with drill holes variably spaced from
100 to 200 metres along sections roughly 200 to 400 metres apart. The resource was estimated in
accordance with the guidelines of the Australasian Code for reporting Exploration Results, Mineral
Resources and Ore reserves (JORC Code 2004) using a 50% Fe lower cut-off grade (COG), and a
specific gravity (SG) of 2.7. No mining parameters were applied to the model.
The following table summarises the resource estimates using two Fe cut-off grades:
Category COG (Fe) M tonnes Fe% CaFe% SiO2% Al2O3% P% LOI1000%
Inferred 50% 37.6 53.19 59.9 8.56 2.77 0.04 11.24
Inferred 52% 28.5 54.03 60.8 7.95 2.42 0.04 11.20
Higher iron grade intersections (>55% Fe) occur in a number of drill-holes, however resource
estimates at higher iron cut-off grades could not be completed as the drill density is insufficient to
interpret continuity of the higher grade mineralisation between drill holes and drill sections with the
required degree of confidence for JORC compliance.
AusQuest Limited 6 Kearns Crescent Ardross WA 6153 (T): 08 9364 3866 (F): 08 9364 4892
www.ausquest.com.au
Internal waste material is also currently included within the resource estimate because of insufficient
drill density. Removing internal waste from the model could increase iron grades within the resource
estimate, although with a corresponding reduction in the resource size. In-fill drilling to help confirm
the continuity of higher iron grades and internal waste outlines is planned for October-November
2008.
The Company also believes that iron grades could be increased by processing the channel iron
materials to remove the fine fraction (106 micron) from the more clay-rich sections of the resource.
Recent bench-scale metallurgical test-work for similar material (as reported in the March and June
2008 Quarterly Reports) has provided encouragement that the ore can be upgraded using wet tumbling
and screening.
Broad-spaced RC drilling outside the boundary of the Inferred Resource supports the establishment of
an Exploration Target containing approximately up to 23 million tonnes of channel iron at similar
grades to the Inferred Resource, which will be the subject of further drilling later in 2008 (see Figure
1). Interpretation of drill results by the Company’s consultants also suggests additional potential
outside the drilled areas, as the Inferred Resource has not been closed off in any direction. Further
drilling outside of the resource zone will be carried out later this year.
Other Tom Price-Paraburdoo Iron Exploration Targets
The Rocklea Project is one of several iron ore exploration projects in the Pilbara region which
AusQuest intends to drill in the latter half of 2008.
At the Tom Price South prospect, which is located approximately 7km south of the Tom Price open
cut mine, high-grade surface channel iron samples (~57% Fe) have outlined an exploration target
approximately 4 to 5km in length and 300 to 500 metres wide. Initial exploration RC drilling (~45
holes) is planned for the second half of 2008.
Exploration drilling (~12 holes) is also planned north of the Paraburdoo airport, where extensive
areas of alluvial cover may be concealing channel iron mineralisation. It is expected that this
programme will follow on from drilling at the Tom Price South prospect.
At the Nameless Project, site clearance surveys have been completed to enable RC drilling (~25
holes) targeting buried Marra Mamba Iron Formation (MMIF) at the eastern end of the tenement to be
completed in the second half of 2008. Previous drilling intersected 14 metres of MMIF grading 56.2%
Fe at the bottom of one of the shallow drill-holes.
The Board of AusQuest is encouraged by recent announcements from Iron Ore Holdings and Rio
Tinto Ltd which suggest that access to Rio Tinto’s Pilbara infrastructure may be possible via a ‘minegate
iron ore sales agreement’.
Graeme Drew
Managing Director
COMPETENT PERSON’S STATEMENT
The details contained in this report that pertain to exploration results are based upon information compiled by Mr Graeme
Drew, a full-time employee of AusQuest Limited. Mr Drew is a Fellow of the Australasian Institute of Mining and
Metallurgy (AUSIMM) and has sufficient experience in the activity which he is undertaking to qualify as a Competent Person
as defined in the December 2004 edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources
and Ore Reserves” (JORC Code). The information that relates to the Mineral Resources Estimate has been compiled by Mr
Jani Kalla who is a member of the Australasian Institute of Mining and Metallurgy and an employee of Golder Associates
Pty Ltd. Mr Drew and Mr Kalla consent to the inclusion in the report of the matters based upon their information in the form
and context in which it appears.
AusQuest Limited 6 Kearns Crescent Ardross WA 6153 (T): 08 9364 3866 (F): 08 9364 4892
www.ausquest.com.au
* JORC – EXPLORATION TARGETS
It is common practice for a company to comment on and discuss its exploration in terms of target size and type. The
information in this presentation relating to exploration targets should not be misunderstood or misconstrued as an estimate
of Mineral Resources or Ore Reserves. Hence the terms Resource(s) or Reserve(s) have not been used in this context. The
potential quantity and grade is conceptual in nature, since there has been insufficient work completed to define them beyond
exploration targets and that it is uncertain if further exploration will result in the determination of a Mineral Resource.
 
I no longer hold but if I did I would be feeling pretty happy about today's announcement - Cleveland-Cliffs to take up 30% of the company. Putting in $26million at 40 cents per share. A pretty good vote of confidence and gave the sp a nice kick today... SP might not get as far as the 40 cent mark but this should keep it out of the 20ish territory for a while...
 
AusQuest recently sent out a corporate update titled “Positioned for Opportunity and Growth”.

AQD Looks like an exciting prospect, especially with its Table Hill and Wolfe manganese projects in WA. Further drilling will hopefully confirm further high grade manganese in coming months.

It has fallen from its 12 month high of .64 and presently sits at about.10 where it looks to have found a bottom.

Its BIG plus as a junior is that it is well funded with $30M cash reserves, and that positions them well for 2009 to press on with their drill programs.

See attached link for the recent 27 February corporate update to shareholders:

http://imagesignal.comsec.com.au/asxdata/20090227/pdf/00932308.pdf
 
Looks like a busy couple of months coming up for AQD. I’m interested in its Table Hill and Wolfe manganese prospects.

Still represents a good buy in time with the price sitting around the 11-12c range.

Excerpt from 6 April 2009 announcement below:

“2009 EXPLORATION PROGRAM UNDERWAY TARGETING
MANGANESE, IRON, NICKEL AND GOLD

• Landmark, well-funded 2009 exploration program underway across AusQuest’s
project portfolio in WA and NT.
• Regional GEOTEM Survey underway at Table Hill (Mn, Ni) with manganese
drilling scheduled to start in May
• Mapping and sampling to commence at Wolfe Project (Mn) in late April
• In-fill drilling expected to commence at Rocklea Iron Project in late April
• Ground EM surveys identify new nickel sulphide targets at Bellary for drilling
• VTEM Survey completed at Plenty River (Ni) – results early April
• Gold target zones identified at Dundas Project (Tropicana belt, WA) from
detailed aeromagnetics – sampling scheduled for Q2 2009

Diversified exploration company AusQuest Limited (ASX: AQD) is pleased to announce the
commencement of its 2009 exploration programme with field activities already underway and
drilling scheduled to commence shortly across its portfolio of manganese, iron, nickel and
gold projects in Western Australia and the Nothern Territory.”
 
Some nice share price movement today, on anyone's radar?

Options appear to be a relatively good price (I bought some today) as the exercise price is 20cents with November expiry, shares closed at 16.5cents today, approx 12.5 cents cash backing, with exploration program underway I thought it was well worth the punt.
 
21/05 7000m Drilling program underway at the Table Hill

26/05 Wolfe project having chip samples return 20 to 53% grades of manganese

Sell side very thin and plenty of support from buyers, but such low volume share price is barely moving.

Looking forward to hearing more good news flowing:
- GEOTEM Survey at Table Hill is underway (or close too if not completed).
- Infill drilling set to commence shortly on Rocklea Iron ore project
- Electromagnetic's for Gold at Dundas project scheduled for 2nd quarter
- Drilling scheduled to commence at the Bellary Nickel project 2nd quarter also

Plenty to look forward too if the markets hold up in the short term.
 
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