CTS - Contact Resources

[plk]

Why are they acquire New Prospect in Peru?
wont it be better they can start their production asap on what they have for years but still dont have nothing produced???

anyone still have thought on this company..... falling from 70c to 7c in 1 year.

I had them for 50c... because a research value it 1 dollar.
I guess that was a really long way to go....lol

keep fingers cross.

have fwl aar rmi cts
all young_trader's pick from last year when I first start my trading in ASX.

 

[jman2007]

Why are they acquire New Prospect in Peru?
wont it be better they can start their production asap on what they have for years but still dont have nothing produced???

Probably not, they haven't got a snowballs chance in hell of going into production at the moment, and I stress at the moment.

Essentially, cash is very tight for CTS these days, and it is inconceivable that they would go back to the equity markets to raise capex (given the miserable sp) and/or that anyone woould be willing to finance the development of Corachapi, given the uncertainty in the financial sector... not a situation entirely of CTS's making, but one in which they will have to struggle through if they want to remain viable as a serious uranium explorer.

Essentially, it may signal a change of strategy by the CTS Board, of which we haven't heard a peep out of for a while. The new prospect appears to have some potential, but the announcement needs to be read carefully, because the assay results quoted in the release are from other companies prospects in the adjoining tenements. Acquiring some new land not a bad option, given that CTS really do not have that many cards to play atm anyway...

New Resource model for Corachapi out soon hopefully, something else to look forward too.

jman

 

[peteai]

Probably not, they haven't got a snowballs chance in hell of going into production at the moment, and I stress at the moment.

Essentially, cash is very tight for CTS these days, and it is inconceivable that they would go back to the equity markets to raise capex (given the miserable sp) and/or that anyone woould be willing to finance the development of Corachapi, given the uncertainty in the financial sector... not a situation entirely of CTS's making, but one in which they will have to struggle through if they want to remain viable as a serious uranium explorer.

Essentially, it may signal a change of strategy by the CTS Board, of which we haven't heard a peep out of for a while. The new prospect appears to have some potential, but the announcement needs to be read carefully, because the assay results quoted in the release are from other companies prospects in the adjoining tenements. Acquiring some new land not a bad option, given that CTS really do not have that many cards to play atm anyway...

New Resource model for Corachapi out soon hopefully, something else to look forward too.

jman

My guess at the reasoning behind it is that if they can increase the resource size they may interest other parties to joint venture & help with financing - at the moment with the current credit crisis they could not finance what they have on their own. If they could increase the resource they might be in a better bargaining position if the overall potential was bigger.

It is only a theory but it might explain why they do it when they don't yet have the finance to develop what they've got

 

[exgeo]

I wonder if it means anything that CTS's new address, announced today, is the same as Artemis Resources who invested in CTS last year?

 

[jman2007]

My guess at the reasoning behind it is that if they can increase the resource size they may interest other parties to joint venture & help with financing - at the moment with the current credit crisis they could not finance what they have on their own. If they could increase the resource they might be in a better bargaining position if the overall potential was bigger.

It is only a theory but it might explain why they do it when they don't yet have the finance to develop what they've got

Well they do need to pretty much put all their eggs into one basket if they want to ride this storm out. They could barely buy toilet roll for the bogs without going insolvent at the moment, and Corachapi is their best asset by a country mile, their Parry Range holdings were pretty much just nuisance value for a company in their position. I'm pretty much pinning my hopes on the Coracahpi Resource figure due to come out er.. sometime(???) being able to draw in a partner or at least CTS being able farm-out a portion of the project.

Bear in mind though, my expectations for CTS are not excatly sky-high atm... Let's see what the new management team can accomplish after the cluster###k of a mess Napier left behind. Idiot.

jman

 

[barrett]

Sorry to hear this one didn't work out well - one of the most valuable things here might be a lesson - look at management first!

The first thing Napier did when he took over in May 07 was to call a meeting and print up shares and options like confetti... there was a similar follow-up exercise in about July. Apparently the shareholders didn't mind being rinsed. I spent half an hour on the phone to Jane Flegg at the time and she couldn't even tell me who the people were who were getting the printed shares/options or anything, it was ridiculous! It turned out in the first printing they were basically buttering up an old wheel-greaser for WA exploration licences - to the tune of about half a million bucks mind you!

CTS have always shared an office with ARV, AKA lawyer-of-sorts Sevag Chalabian (anyone even put that name into google? God save us!)
http://www.smh.com.au/news/business/barista-paid-75-of-aztec/2006/10/24/1161455720353.html
http://www.smh.com.au/news/national...-cremorne-block/2006/11/02/1162339989135.html

CTS has good assets and the involvement of Geoff Blackburn was a plus but there's a valuable lesson here...... look at the bloody management! Make it #1, whatever company you look at.

 

[peteai]

Well they do need to pretty much put all their eggs into one basket if they want to ride this storm out. They could barely buy toilet roll for the bogs without going insolvent at the moment, and Corachapi is their best asset by a country mile, their Parry Range holdings were pretty much just nuisance value for a company in their position. I'm pretty much pinning my hopes on the Coracahpi Resource figure due to come out er.. sometime(???) being able to draw in a partner or at least CTS being able farm-out a portion of the project.

Bear in mind though, my expectations for CTS are not excatly sky-high atm... Let's see what the new management team can accomplish after the cluster###k of a mess Napier left behind. Idiot.

jman

Yes I feel much the same as you do. Had to laugh at the way you put it though - I would like to think they could say to someone Hey I've got a bunch of U up here - you dig it out & I'll pay you $2?? per pound - & CTS makes the margin

But I know I'm thinking is too simplistic

 

[Gurgler]

I'm pretty much pinning my hopes on the Coracahpi Resource figure due to come out er.. sometime(???)

Err, Nov 10 with an ann that Coracchpi is substantially less than predicted.

Not good! Awaiting but not hopeful of much in the way of good news.

 

[jman2007]

Sorry to hear this one didn't work out well - one of the most valuable things here might be a lesson - look at management first!

CTS has good assets and the involvement of Geoff Blackburn was a plus but there's a valuable lesson here...... look at the bloody management! Make it #1, whatever company you look at.

Hi barret,

Yes I've definitely learned a thing or two during this debacle. Napier was obviously miles out of his depth here, his predictions last year of doubling or even tripling the Coracahpi Resource now look to be largely on the ridiculous side given the wording from the recent CTS release warning us of a "substansially" smaller resource from Corachapi. Just when we all thought CTS couldn't sink any lower in the uranium-bubble swamp, they've managed to sink underneath the deepest layer of llama turds in existence.

This calls into question the competent person who signed off on the Coracahpi Resource, the QAQC procedures, the accuaracy/precision of the assay lab and above all, whether there is case for pursuing Napier for gross negligence and misleading the market? Under the JORC code, if the competent person is found to have signed off on a resource that was clearly shonky, then they can be hauled in front of a panel of industry peers and cross examined.

I don't bear any grudges against current senior management, they've been handed the hospital pass from hell, and are probably still trying to understand the mess the comapny has gotten itself into. I was only a small-time investor in CTS, but I do feel for people who have lost a lot more than myself. I can't see me getting any of it back at this stage unfortunately.

jman

 

[plk]

anyone read their lastest report for the JORC result?

what is the reading for U now??
and How bad is it compare to the previous one? can anyone explain.

thanks

 

[Sean K]

anyone read their lastest report for the JORC result?

what is the reading for U now??
and How bad is it compare to the previous one? can anyone explain.

thanks

Significant downgrade. Deposit on ice and they're looking to offload it.

This company has committed seppuku....

 

[jman2007]

Significant downgrade. Deposit on ice and they're looking to offload it.

This company has committed seppuku....

Yeah it's all over for CTS unfortunately - Coracahpi looks to be a dud afterall. I think Basil Fawlty would have made a better MD than some of these clowns. Perhaps they should rename themselves "Fawlty Towers Resources - serious about making you laugh".

jman

 

[plk]

With respect to your query below the JORC inferred resource at Corachapi
is 6.47 Million tonnes at an average grade of 257ppm for a total
estimated uranium content of 3.675 million pounds.

We are currently re-evaluating the project, and looking to bring a JV
partner into the project. Upside remain to expand the resource further
with additional drilling.

Regards

Mike Drew

 

[The Barbarian Investor]

Looking at the Management here and in line with comments here

Mr R GROVER

CERVANTES CORPORATION

CONTACT URANIUM

REDPORT

BOSS ENERGY

:engel:

 

[shinobi346]

hmmm I just remembered I owned this share. >_>

I'm a bit embarassed to have lost track of it, somehow, all this time... I can still remember back then having very high hopes for their U resource. Contact Resources.. the name still rolls off the tongue, thinking how god this share would be.. I can't believe how badly they failed.

Anyway, might be good for this thread and for anyone else tracking down this share, they've changed names a couple of times and are now RMR (I was wondering where I got that share from...)

RAM RESOURCES LIMITED (RMR) 12/12/2008 Currently Listed
CONTACT URANIUM LIMITED (CTS) 26/06/2007 12/12/2008
CONTACT RESOURCES LIMITED (CTS) 26/06/2007