Aquila Resources Limited (“Aquila”) is pleased to announce the results of the initial JORC resource estimate for the Australian Premium Iron Joint Venture (“API”), in which the Company has a fifty percent interest, in relation to its West Pilbara Iron Ore Project located in the Pilbara region of Western Australia.
Golder Associates Pty Ltd was commissioned to complete the in-situ resource estimates.
The West Pilbara Iron Ore Project, located approximately 50 kilometres southwest of Pannawonica in the Pilbara region of Western Australia, has been the major focus of the Company’s exploration program since its commencement in 2005. An extensive reverse circulation drilling program completed in 2006 evaluated five Channel Iron Deposits (“CID”), resulting in resource estimates being finalised for the Catho Well, Cardo Bore East, Upper Cane, Jewel and Cochrane CID, which all form part of the West Pilbara Iron Ore Project.
The Catho Well deposit is located in the Mt Stuart Joint Venture area (API 70%, Cullen Resources Limited 30%) whilst the Cardo Bore East, Upper Cane, Jewel and Cochrane deposits are located within the Red Hill Joint Venture (API earning 80%, Red Hill Iron Limited 20%).
The Indicated and Inferred resource for the pisolitic CID of the West Pilbara Iron Ore Project totals 203.0 Mt at 57.44% Fe.
Channel Iron Deposits –
Hard to see where the actual breakout is for this. Could be 6 cents, or 6.4. Any close over 6 is going to be very positive IMO. The volume is up just a tad.
Just spiked to 6.8 cents, so something's up.
I have been quite hesitated for a while before Y_T excellent analysis. Now I buy in firmly.
Thanks Y_T
I trust you did your own research to check my analysis,
Yes. but not so organizable as you.
Some piece of news as:
AQUILA Resources has announced an initial resource estimate for its west Pilbara iron ore project of 265.9 million tonnes, encompassing its joint venture tenements with Red Hill Iron and Cullen Resources for 203 million tonnes at 57.44% iron as well as the Hardey deposit for 62.9Mt at 61.33% iron.
The west Pilbara tenements are covered by the Australian Premium Iron Ore JV.
Aquila has a 50% stake in API Management, which is the major partner in the JV.
The overall resource includes an indicated and inferred resource of 135Mt at 58.48% iron in the tenements that are currently 20% owned by Red Hill and 80% by API.
An indicated and inferred resource of 68Mt at 55.38% iron ore at the JV tenements with Cullen is also included in the overall west Pilbara figures. API holds a 70% interest while Cullen has the remaining 30%.
These two JV areas combined have a 203Mt resource at 57.44% iron ore overall, Aquila said.
The remaining 62.9Mt at the west Pilbara project come from the Hardey bedded iron deposit, which has an indicated and inferred resource grading 61.33% iron. This deposit is 100% owned by API.
"We've begun a pre-feasibility study and in tandem with that, there is further exploration ongoing and we would expect the resource to increase before the end of the year," Aquila executive chairman Tony Poli told MiningNews.net.
"This resource only represents a third of the total project area."
"API has secured various joint ventures with companies in the west Pilbara to acquire a critical mass of projects � it's been quite successful to date and we have no present plans for to look at consolidation," he added.
The remaining 50% of API Management not held by Aquila is owned by privately owned US coal company AMCI Investments.
API is currently subject to court proceedings bought by Aquila against AMCI over a company restructure that covers the west Pilbara joint venture area, triggered when Brazilian giant CVRD bought out AMCI in February.
From http://www.miningnews.net//storyview.asp?storyid=98737§ionsource=s88&highlight=cullen:)
Fool said this guy poached my YML and he poached my FNT,
Who are you on here?
Disappointing, very dissapointing
Yeah but not everyone would be set and now the HC's know,
Thats the one thing with ASF people don't have to be members to read threads, they can just browse through and poach at their will,
Well I almost did all my buying although I had to pay up to 6.4c to fill which is annoying, I think my broker watches what I buy too lol,
Enough of that,
What do people think of my analysis?
Anything extra to add?
Great analysis once again, thanks YT. I've bought in and out of this one for years. Its been a great survivor. Interesting to see so many free-carried JVs. Of particular IMO are the iron ore and nickel interests. The nickel JV with HNR is near WSA's Flying Fox deposit.Well I think its time I post my research for all on ASF to see
Here it is guys, I bought up to 6.1c today so don't be stingy because once it breaks 6.4c which it should given I value it at 15c it will run!
CUL
Mkt Structure
Shares
475m
Mkt Cap @ 5c = $25m Current
Mkt Cap @ 10c = $50m Target 1
Mkt Cap @ 15c = $75m Target 2
Mkt Cap @ 20c = $100m Upside
Cash
$2m not alot, but nearly all of its projects are funded by JV's so it doesn't need cash
Projects
Catho Well Iron Ore, 30% Carried, West Pilbara
JORC 68Mt@55.4%Fe
Now CUL's main project is joint ventured to Australian Premium Iron which is jointly owned by AQA and Multi Billion dollar steel mills, they are firming up a large porject in the West Pilbara and are currently doing feasibility studies and although CUL's project is smallish it still represents 1/4th of the total project and as such will get into production, importantly CUL's deposit contains lower impurities and thus is required to blend with the other deposits
AQA/API have very very deep pockets and backed by the US steel Mills, funding and offtake will not be a problem,
Valuation
RHI 40m shares @ $2.50 = $100m, its asset 20% of 135Mt@58.5%Fe = Net 15.795Mt Fe, at $100m = EV of $6.33/ Fe t
So if we give CUL the same $6.33/ Fe t = 30% 68Mt@55.4%Fe = 11.3Mt's Fe = $71.5m = 15c CUL
Now the mian points are
1. This was a first pass JORC from 1 of 4 target areas, a look at CUL's ground position suggests some of RHI's Cardo Bore deposit extends into CUL's ground
2. API is backed by AQA and Multi Billion Dollar US Steel Mills who will provide funding and offtake
3. A feasibilty study is underway
4. A comparison to RHI suggest CUl is worth 15c on this asset alone!
Wyloo Dome Iron Ore, 20% Free Carried, West Pilbara
This project is in a JV with FMG, thats right Fortescue Metals Group, they are beginning exploration for Iron ore this qtr! The project is adjacent to Hamersley's 225Mt@62.1%Fe Metawandy Deposit
HUGE SPEC Appeal!
Gun Barrel Nickel, 25% Free Carried, W.A.
BHP is drilling 7 diamond holes in search of Nickel, the mkt will love the BHP link
Iriwn Bore and Mt Tate Nickel, 30%-35% Free Carried, W.A.
IGO one of the most famous mid cap Nickel players is exploring here for Nickel in a JV, again the mkt will love the IGO link
Forrestania Nickel, 20% Free Carried, W.A.
HNR most who like nickel will be familiar with the HNR story, their directors are famous for discoveries and its very good to see their main project is with CUL,
Gunbarrel Gold, 30%-35% Free Carried, W.A.
Newmount is exploring for Gold here
Duchess IOCGU, 30% Free Carried, Mt Isa Qld
MEP Minatatour are exploring for Cu-Au U and IOCGU type structures here although they are mainly working on Tunkilia with HLX
Uranium Projects Uranium, Some 30% JV's most 100% owned, W.A. S.A. and N.T.
Has about 40 liceneces in W.A. S.A. and N.T., could easily spin these off into a new IPO, I'd say they're worth 2c-4c to the company alone.
Summary
- The main Iron Ore porject worth 15c
- FMG JV adds 1c spec appeal
- BHP JV adds 2c spec appeal
- Lots of other JV's working hard to make a discovery, adds another 1c appeal
- The Uranium projects are worth 2c-4c in a spin off form
Total Value I see = 15c - 25c
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