CRI - Critica Limited

[jens_k]

todays news:

Australian based mineral exploration company Venture Minerals Limited (ASX code: VMS) has signed a Joint Venture agreement with Orogenic Exploration Pty Ltd (Orogenic) to acquire a tenement adjacent to its Churchill Dam Iron-oxide-Copper-Gold-Uranium (IOCGU) project in South Australia.

This 471km² tenement contains a number of drill targets that complement those already identified on the tenement held by Venture. As part of the agreement Venture will earn a 90% interest in the nondiamond rights of the tenement by spending A$750,000 over the next three years.

Orogenic will receive an initial payment of $11,000 and will be free carried up to the decision to mine, and may then elect to contribute or take a payment of $500,000 and 1.5% of the net smelter return.

Orogenic retains all diamond rights to the tenement.

The new acquisition contains a number of drill target areas within the tenement and following a review of geological data has lead to the identification of a number of new drill target areas within the original tenement held by Venture, all of which are prospective for IOCGU type mineralisation as based on the highly successful drilling done to date at Churchill Dam (see attached map).

By applying the same principles previously used in interpreting a "caldera" (large volcanic crater-style structure) within the Gawler Range Volcanics at Churchill Dam, an adjoining second caldera feature can be interpreted to be sitting to the northeast and within the area of the new acquisition.

Consequently, the Company will now further extend its detailed ground based geophysical survey (due to commence shortly) to cover the new additional drill targets and the interpreted second caldera structure.

This announcement follows last week's confirmation that Venture Minerals had arranged a placement of 6.5 million ordinary shares in the Company to raise $2,145,000.

The funds raised will be used for exploration at Venture's existing tenement at Churchill Dam. The Company has recently drilled two RC/Diamond holes into the project, both intersecting at least 150m of altered Gawler Range Volcanics.

The Company believes the brecciation and alteration style intersected in the first two holes is consistent with mineralised IOCGU systems within the Olympic Dam province of South Australia. Assay results on the first two holes are pending.

The success from the first two holes have encouraged the Company to proceed with an aggressive four - eight hole program of diamond drilling at the project expected to cost up to $2m.

Venture Mineral's Churchill Dam Project is well situated within the Olympic Dam IOCGU province, approximately 95km west of the recently discovered Carrapateena Prospect, 100km northwest of the recently discovered Punt Hill Prospect and 90km southwest of the world class Olympic Dam Mine.

 

[greggy]

todays news:

A positive announcement with the increased land holding adjacent to its Churchill Dam Project giving VMS further drilling targets in a prospective area. It finished up 2 cents yesterday albeit on small turnover. I don't hold any at present, but am monitoring the situation carefully.
DYOR

 

[stockpile]

They are still holding in excess of a million shares and they have a truckload of options from the 1 for 3 issue. Taking some profits is allways encouraged here and I would do the same if I was in they same situation.

Selling by Credit Suisse is clearly a bearish sign. Credit Suisse built up quite a stake at lower levels and is no doubt taking its profits off the table. Overall, VMS has had an excellent run of late and its not surprising that Credit Suisse have got rid of most of its holding. Still, as has been alerted in previous postings, VMS has plenty of potential. For me its just a question of how much am I prepared to pay for it. Good luck to VMS shareholders.
DYOR

Hey fellas in reference to this previous exchange of messages, it appears that indeed the sell off by Credit Suisse was largely a move to take some profits. I found it interesting that they have increased their holding on a rather regular basis since the sell off, especially towards the end of last week where they acquired almost 200k shares, culminating in today's notice. What are your thoughts on this?

 

[greggy]

Hey fellas in reference to this previous exchange of messages, it appears that indeed the sell off by Credit Suisse was largely a move to take some profits. I found it interesting that they have increased their holding on a rather regular basis since the sell off, especially towards the end of last week where they acquired almost 200k shares, culminating in today's notice. What are your thoughts on this?

To buy back in is a positive sign coming from Credit Suisse. With further drilling planned at Churchill Dam interesting days lie ahead for VMS. As I've mentioned in an earlier post, | tried to buy back in around the 33c mark, but missed out on a recent pullback. I'm not prepared to chase stocks where possible.
DYOR

 

[jens_k]

VMS today down 8% to 39.5......

Did anyone heard any rumors at the street regarding todays fall of AUc 3.5 ?

Thanks Jens

 

[stockpile]

Hey Jens,

I have not heard any rumours, just seems the price movement is part of the daily cycle, I am quite surprised that we are STILL waiting for the assay results from the first two drill holes, these are now overdue and I am hoping they are released by the end of next week otherwise the sp could dive as we head into May.

Kevro might have heard a rumour?

 

[Sean K]

Still waiting for those CD results.......

The market liked the ann just out. Although I'm skeptical about the prospects of U explorers in WA at the moment, the tennaments do look very prospective. Map attached to the ann displays them well, if anyone's interested.

 

[greggy]

Still waiting for those CD results.......

The market liked the ann just out. Although I'm skeptical about the prospects of U explorers in WA at the moment, the tennaments do look very prospective. Map attached to the ann displays them well, if anyone's interested.

Hi Kennas,

VMS does have some good areas prospective for uranium in WA. But what I find amazing is the WA Labor Govt's attitude to uranium mining. On the the one hand they will let you explore for it, but you're not allowed to mine it.
What will really continue to drive this company's share price is the company's Churchill Dam Project in SA where its searching for "Olympic Dam" style mineralisation.
DYOR

 

[stockpile]

Kennas those CD anns were due out two weeks ago, should we be expecting good or bad news when they eventually come out? They have been quite slow to release news of any kind in recent months.

 

[greggy]

Kennas those CD anns were due out two weeks ago, should we be expecting good or bad news when they eventually come out? They have been quite slow to release news of any kind in recent months.

This company has been slow in all respects, with announcements, drilling, delays etc. I often feel that when companies have good news to release they tend to do it earlier rather than later. Nonetheless, its sometimes hard to guess what VMS management are thinking. Still VMS has numerous interesting prospects, but there's clearly a need for a better PR machine.
DYOR

 

[alphman]

LOL! This is the third time they've released an "amended announcement" (second one this month). Don't these guys learn from their mistakes???

 

[stockpile]

Hey Alphman,

Im actually more surprised that it got a favourable response from the market...

Surely a couple of positive announcements should see this bird flying, it seems like they are sitting on their hands at the moment. Interesting few weeks ahead.

 

[alphman]

Yeah I noticed the last minute scramble when the announcement came out. I think a few people jumped the gun there, thinking it was one thing only to be disappointed. LOL!

 

[alphman]

At $0.33, these guys have a market cap of just under $15m. With over $5m in the bank and two very, very interesting projects, these guys are flying well under the radar (IMO).

Can't wait to see those assay results. The directors have shown great confidence in the meantime (again, just my opinion) by doing a placement to aggresively progress Churchill Dam as well as entering a JV to acquire an adjacent tenement. They've even marked out their targets already

Any views on this?

 

[KIWIKARLOS]

These guys have really bad sentiment behind them after so many got burned on the dummy run to mid 50's.

I agree they have small market cap, and some good upside potential.

But i dont think they'll get good attention and rerating untill good news comes out better than just some ok looking holes.

 

[Sean K]

These guys have really bad sentiment behind them after so many got burned on the dummy run to mid 50's.

I agree they have small market cap, and some good upside potential.

But i dont think they'll get good attention and rerating untill good news comes out better than just some ok looking holes.

I agree. I think the assays from CD will turn them one way or the other. If the results come back with IOCGU, then it should be well supported. If it's dirt, then expect it to be duly smashed!

 

[alphman]

Isn't that the general behaviour of the market anyway?

ie. good results = strong support; bad results = mass exodus

Nevertheless, I think this stock may have some trouble reaching heights no matter how good the results are. Purely for the fact that those who got caught in the "dummy run" (as kiwi likes to put it) would be looking for a quick exit when they get an opportunity to break even. I hope to be proven wrong, however.

 

[alphman]

Results for the first two holes are out...

http://imagesignal.comsec.com.au/asxdata/20070612/pdf/00728793.pdf

"The Gawler Range Volcanics intersected by these holes gave elevated values of copper (up to 205ppm), silver (up to 0.7g/t), uranium (up to 32ppm), lanthanum (up to 250ppm) and cerium (up to 445ppm) (“rare earth metals”);"

 

[Sean K]

I agree. I think the assays from CD will turn them one way or the other. If the results come back with IOCGU, then it should be well supported. If it's dirt, then expect it to be duly smashed!

Ann out on drilling at CD. A third hole is being dug and they have slipped in the results from the first 2 holes in scant detail. Scant because they may not be that hot perhaps.

'up to 32ppm uranium' sounds like dirt to me.........

Any other thoughts on the grades mentioned in the first 2 holes?

PS, and that was at 1100m!! Oooo.

 

[Speedbird675]

.02% Cu is nothing at all .. but this is only 2 holes .. there is a lot more drilling to be done yet .. i hold my small parcel