CLE - Cyclone Metals

So i have been reading this thread and it seems that once the deal fell through, everyone has stopped posting and has no input on this stock anymore?

Aren't drilling results due out about....now?

Well yes and no,

Possible sp triggers will be any potential resource upgrade, but that isn't due out for at least 2-3 months, arguably 40c could provide a good entry level between now and then. Probably a lot of people sitting on pretty reasonable losses atm, I imagine they'll be waiting until early next year to see what transpires.

jman2007 said:

Well yes and no,

Possible sp triggers will be any potential resource upgrade, but that isn't due out for at least 2-3 months, arguably 40c could provide a good entry level between now and then. Probably a lot of people sitting on pretty reasonable losses atm, I imagine they'll be waiting until early next year to see what transpires.

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Well that would be about right from my point of view.
I bought in at a higher price than where it is today but the resource they have hasn't changed, just that the deal fell through.

As long as iron ore stays popular for awhile longer and hopefuly CFE can upgrade their resource in the future, then we should see the sp begin to rise again.

Next drilling results are due end of January.

I would think in the current environment we are in that there is a fair downside still to come for these type of potential producers.

I will be waiting for some news before i consider entering again.

Has anyone got any reason for Cape Lambert continue downward trend over the last few weeks. Even though nothing really has changed.
new to investing and trying to get an understanding, is it got to do with the lack of recent news.
I was also wondering if anyone has heard any news on the investment front do they have any new interested investors.
final question how positive do you think the drill results would have to be to push the sp back to pre Mr Ding collapse

enigmatic said:

Has anyone got any reason for Cape Lambert continue downward trend over the last few weeks. Even though nothing really has changed.
new to investing and trying to get an understanding, is it got to do with the lack of recent news.
I was also wondering if anyone has heard any news on the investment front do they have any new interested investors.
final question how positive do you think the drill results would have to be to push the sp back to pre Mr Ding collapse

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probably due to a number of factors .... overall market is down....waiting for results from further drilling.... feasabilty study due 2nd or 3rd quarter which is fair way of yet....also with all haematite projects coming into production soon re fmg gbg ect. magnetite projects with their higher establishment and operating costs comeing in second best to large haemitite producers.

there is plenty of haemitite to mine yet so others could be longer way of and investors and traders like to see short term results so sp his heading sth and possibly breaking support levels

enigmatic said:

Has anyone got any reason for Cape Lambert continue downward trend over the last few weeks. Even though nothing really has changed.
new to investing and trying to get an understanding, is it got to do with the lack of recent news.
I was also wondering if anyone has heard any news on the investment front do they have any new interested investors.
final question how positive do you think the drill results would have to be to push the sp back to pre Mr Ding collapse

Click to expand...

jackson8 answered your first part so i will handle the second part.

Mr Ding was going to put 280Million into CFE.
That is the only reason the share price got to where it did.

The board have stated they want to know what they have before they consider any proposals.
They have also acquired the adjacent tenement and will be drilling there.

They have an independant report confirming 300MT and while good drilling results could help the stock i'm not sure you would see those same prices until a partner, T/O or investor got involved.

Just my opinion though.

Thanks thats about what i thought, just wanted to get someone else's opinion.

I assume the sp will hover arround its current mark until the next drill results, I was reading somewere in this thread that it was 900Mt not 300Mt.
Plus they also recently as in a few months ago found double the resources which was one of the reason why they ended up dropping Mr Ding, as he was getting twice as much resource for 40mil less (due to the value of the $US)

enigmatic said:

Thanks thats about what i thought, just wanted to get someone else's opinion.

I assume the sp will hover arround its current mark until the next drill results, I was reading somewere in this thread that it was 900Mt not 300Mt.
Plus they also recently as in a few months ago found double the resources which was one of the reason why they ended up dropping Mr Ding, as he was getting twice as much resource for 40mil less (due to the value of the $US)

Click to expand...

That's not right.

In simple terms they don't know what they have got there yet.

They have over 900MT but that is at 32.4%fe.

All this info is contained in their reports.
You can find this particular info here

You are new to investing but you need to be able to understand some of this stuff so make sure you read the reports and if you don't understand something, ask.

They dropped Mr Ding because he was stuffing them around and had delayed them for ages until it became clear he wasn't going to come good with his end of the bargain.

All that other stuff came out later and wasn't any brilliant move by CFE.

Mr Ding had a contract and if he had of stuck to his end he would have received the extra.

Thanks yeah little new to all this stuff. just trying to learn the true value to companies assets. Will be following this one closely though. Have heard it has some good potential.

I was certain that my numbers werent completely off so i had myself a visit to there website and if you direct yourself to the Cape Lambert Project info it clearly states.

The resource is a JORC Code compliant resource of 2.5 billion tonnes @ 30% Fe (250 m depth & 25% Fe cut off) 1.4Bt Indicated Resource, 1.1Bt Inferred Resource.

Although i do realise that this does have a cut off of 25% which is quite low. they do indicate several Higher grade targets.
Think this one will have to be put in the vault atleast until the BFS is completed

Announcement out today. Main piece of news for me is a resource upgrade by the end of month.

Resource upgrade imminent at Cape Lambert Iron Ore Project asaggressive drill program continues to yield high grade results Golder Associates on track for completion of resource update at Cape Lambert Iron Ore project by the start of February 2008, Resource update is based on aggressive 2007 drilling program - 65 Reverse Circulation (RC) drill holes out of a total 88 completed in 2007 used in the update. All drill holes could not be used due to slow assay turnaround,Results from 2007 drilling has confirmed that significant magnetite mineralisation exists within the Northern Extension Area and is located in broad, moderately shallow zones,Recent Davis Tube Recovery (DTR) results from drilling at the Northern Extension Area of the project include MA427, 104m (from 76m) at an average DTR recovery of 28% mass to concentrate with a concentrate grade of 69% Fe and 3.8% silica,oMA424, 88m (from 96m) at an average DTR recovery of 27% mass to concentrate with a concentrate grade of 69% Fe and 3.7% silica,oMA423, 96m (from 120m) at an average DTR recovery of 26% mass to
concentrate with a concentrate grade of 67% Fe and 3.5% silica,RC and diamond drill rigs are currently working at the project, with results from this drilling and the remaining holes from the 2007 drilling program to form the basis of a further resource upgrade in June 2008 quarter.Iron ore exploration and development company, Cape Lambert Iron Ore Limited (ASX: CFE, AIM: CLIO) remains on track for a resource upgrade at its 100 per cent owned Cape Lambert iron ore project, located in the Pilbara region of Western Australia (refer Figure 1), by February 2008.

Yeah you would think the sp couldn't go backwards from here???

I would have thought .30c rather cheap for what CFE has under their belt in reguards to resources of iron ore.

They seem to be some pretty good grades.

I don't know much about what makes a company "good value" but if anyone can agree or disagree with my thoughts please do so

Good luck holders...this one own me yet

Looks like the 59% resource upgrade has been met with some enthusiasm. 18% increase in SP today.

Looking back through the threads i haven't been able to locate an analysis on this stock regarding a SP valuation to resource. Has anyone put anything together that could be posted?

Yeah lets hope this one goes gangbusters

On the face of it this looks like a great result for CFE, with a 59% increase in the resource, crucially however, 63% of the rsource is now classified as indicated which will allow meaningful economic and other studies to commence. Haven't come across any t/a for this stock yet, probably due to the prior lack of knowledge and geoloical understanding possibly.

Being more of a gold man myself, does anyone know what the grade of 31.4% amounts too?.... I might hazard a guess and say this is average grade, but fully prepared to be corrected on this.

jman

Cape Lambert looks to bounce back

28th January 2008, 8:45 WST


It has been a forgettable year for Cape Lambert shareholders and moves are afoot for a much-improved 2008.



http://www.thewest.com.au/default.aspx?MenuID=32&ContentID=56146



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Market seems to like the latest CFE announcement (highlights below).

Key points for me are

1. 66.4% Fe and 4.8% silica with greater than 91% Fe recovery
2. Incremental capital expenditure to install a reverse flotation circuit is estimated at less than 5% of the Concentrator facility capital cost
3. 1.56 billion tonnes @ 91% is a decent amount of saleable product


14 February 2008 The Company Announcements Office
ASX Limited Via E Lodgement METALLURGICAL TESTING CONFIRMS REVERSE FLOTATION SILICA REDUCTION STRATEGY AT CAPE LAMBERT HIGHLIGHTS · Reverse flotation, silica reduction metallurgical test program completed at the Iron Ore Processing Research Institute, Liebenburg Germany, · Very positive test results with worst case, primary concentrate silica levels reduced from 8.3% to 4.8% with greater than 91% iron recovery (i.e. minimal loss of Fe units), · Further reductions in primary concentrate silica levels anticipated with test work optimisation and the use of pneumatic flotation rather than conventional tank flotation, · Incremental capital expenditure to install a reverse flotation circuit is estimated at less than 5% of the Concentrator facility capital cost, with minimal impact on operating costs, · Reverse flotation combined with mine planning to blend lower silica and higher silica ore sources delineated within the Cape Lambert resource provides a high level of confidence that saleable concentrate of less than 5% silica can be routinely achieved. Cape Lambert Iron Ore Limited (the "Company" or "Cape Lambert") (ASX: CFE, AIM: CLIO) has recently received very encouraging metallurgical results from a test program aimed at reducing the silica content in iron ore concentrates to be produced from its 100% owned Cape Lambert iron ore project (the "Project"), located in the Pilbara region, Western Australia (refer Figure 1).

The Company has recently announced a JORC compliant resource of 1.56
billion tonnes grading 31.2% Fe, with a further resource upgrade scheduled to be announced in the June 2008 quarter. Reverse flotation testing was undertaken at the Iron Ore Processing Research Institute, Liebenburg, Germany to determine whether a worst case primary concentrate containing 8% silica could be improved by reducing silica levels to below 5% (suitable blast furnace pellet feed). The tests showed that by employing reverse flotation a worst case primary magnetite concentrate produced from the Cape Lambert resource assaying 63.1% Fe and 8.3% silica could be improved to 66.4% Fe and 4.8% silica with greater than 91% Fe recovery (i.e.
minimal loss of Fe units). Importantly, the tests were conducted on 50kg of concentrate produced from a 150kg composite sample utilising the proposed Cape Lambert flow sheet. Cape Lambert Executive Chairman Ian Burston said "We are was very pleased with the outcome of this test work that has been conducted by two reputable and independent metallurgical testing institutes and has shown that a worst case concentrate containing more
than 8% silica can be improved to less than 5% silica with reverse flotation." He further added "These results confirm the Company's view that it will be able to produce a saleable final concentrate at less than 5% silica, which is suitable for blast furnace pellet feed."

Up 17% today. Not certain as to whether it is the announcement last week, the 65% increase to the ore price or something we dont know about yet.

Either way buyers have lined up. 66 buyers for 3,015,804 units 60 sellers for 1,517,665 units

Yesterday afternoon Delong Holdings went into trading halt. (Delong is mostly owned by Best Decade which is mostly owned by Ding Liguo whom failed at the payment to buy 70% of CFE for 192M USD)

Today Delong on the SINGAPORE stock exchange announced that Best Decade is selling 10% of its holding which totals approx $200M AUD with an option for the purchaser to buy more from Best Decade for a total of approx $600M AUD. (could this 200 be to purchase that 70% of CFE and the 600 to fund the developement of the mine in the future?) Whatever!...
Its just pure speculation........

http://info.sgx.com/webcoranncatth....ossibleOfferAnnouncementFINAL.pdf?openelement

It would be nice though i dont think that CFE are going to sell them 70% for $A200m
if they were going to sell it for $US192m thats a bit of a discount now that they have confirmed twice the ore and are expected to increase this in June/July.