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ECH - Echelon Resources

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15 April 2006
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Does any one apart from myself have an interest in echelon. I have been in for a while. I stumbled across the deal they have done with caz the other week in an old newspaper. I bought long term originally but may have to rethink my position. Any feedback would be welcomed.
 
Got burnt today but will rise from the ashes.No point whining about it .You play the game you take the pain.It is a bit like backing the winner inthe melbourne cup and losing on protest.
 
hey stiger, jesus! i just looked at the chart. Thats gotta put a few knots in your stomach.

just wondering, what makes you so sure it will rise from the ashes? Looks to me like a pretty permanent spanner in the works until a slow and painful judicial process gets hammered out???

Do they have other big projects minus this one?

Cheers
-Caliente
 
Is looking slightly better than cazaly this week . Not bad for Barebones.
 
ECH have sold off their last remaining good assets IMO,

After spining out their excellent Copper grounds to SVM, they are now selling their Iron Ore assets to IOH for 3m shares, they should have spun them out to into a new IPO would have done much better,

Share price is up though
 
Echelen Resources.

Echelon Total Class Issue: 26,962,878
Market Cap (Undiluted): 15,099,212


4 million additional shares will be released to raise 1.4 million to a number of Canadian and European investors and the funds raised will be used to fund an accelerated exploration program on the tenements.

This is my latest spec uranium play that I have picked up. Its prospects are based in Australia with 3 tenements 10 km directly to the south of BHP’s largest calcrete deposit in the world being the yeleerie deposit. (Based in WA) It also holds tenements to the North of Summit Resources Vahalla deposit(Queensland).

There are two other explorers in the Area being BLZ and ENR but Echelon have something that those two other explorers don’t have which is extremely promising radiometric readings on their epls. Not only do they have this but they also have tenements to the North of Summit resources Valhalla and Skal uranium projects. The Queensland tenements are 50% owned by PDN which I like because it brings a strong partner into play if they ever did find a deposit in the area. The experience Paladin would have in developing any future deposits found is priceless IMO. Lots of experience within the PDN management team will bring some guidance to ECH.

A lot may criticise this stock as it is based in WA and we know the stance of the government atm in regards to uranium mining..but the most attractive part of Echelon to me was the highly prospective land holding they have near MT ISA and its close proximity to Summits Valhalla deposit. Just recently there was also an announcement in regards to some historic drilling results being found. The promising results are below.

In 1971 Queensland Mines Ltd carried out a percussion drilling program on the Batman prospect within the Greenstone tenement with the best assay results from the 5 hole program (Table 1) being:

• 17.8m @ 0.123% U3O8 - Hole PNB 5
• 6.97m @ 0.091% U3O8 - Hole PNB 3
• 2.7m @ 0.048% U3O8 - Hole PNB 2


A number of small shafts have also been sunk, however production records are not available. Figures 2 and 3 indicate the radiometric signature over the project areas – Batman, Duke and Lily. In addition to these areas, a major 4.2 kilometre long structure has been identified using existing radiometric data. Follow up surface mapping and sampling of this anomaly will be carried out.


Below I have attached maps showing their EPLS and locations. One attachment for their Yeleerie EPLs which shows extremely promising radmiometrics and also one for their Queensland tenements. Remember this is a spec play but I believe it is has what it takes to bring great rewards. Strong radiometrics..some promising historic drilling and close proximity to two extremely large deposits. All the best.
 

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a while to go before it fills the gap...



is this company essentially a brand new company, hence previous price action is irrelevant?

what were the reasons for its price plumetting the last time?

is there new management on board?
 
a while to go before it fills the gap...



is this company essentially a brand new company, hence previous price action is irrelevant?

what were the reasons for its price plumetting the last time?

is there new management on board?

Primarily was an Iron Ore play. Went up because they had a % in the shovellana dispute. Also went down due to the dispute. It has been overlooked as a uranium play
 
It is one of the companies claims land holding around Mt Isa. Well in an excellent geological region. If cannot find enough uranium, they can find copper, zinc, lead, iron ore.....

The only problem is its share price has doubled for the uranium hype, and its land is in QLD. Don't know what is in Beaties' head in next few years. I might put it on my watchlist.

There quite a few of them in and around the region, such as GSE, MRX, URL, which uranium is not the main exploration target.
 


Can't find enough? hmm..they are only just starting so maybe thats the reason. Read their recent announcements. They also sourced some historical drill results. It is definately very speculative but could bring good rewards. Hardly any shares on issue. The reason why I like these guys is their epls south of BHP's yeleerie deposit. Those epls also look very promising..so you have two land holdings in close proximity to very large deposits. One with very strong radiometrics. Queensland is also very favourable towards uranium mining and they have a strong partner with Paladin.
 
Queensland is also very favourable towards uranium mining.
Beatie has said he will not allow mining if it's up to him. Rudd has said he will leave it to the States. Not in the bag, but hardly paints a great picture for U in QLD in the short term. Carpenter has said the same thing. Only takes a change of leadership of course, but that looks to be some time off.


http://news.ninemsn.com.au/article.aspx?id=257969
 

hmm true. This is still my spec play for Australia. I dont usually go for Australian uranium plays but I decided to have one for longer term prospects. Out of all the grass root explorers I think this one has potential. There are others that I like..for example GGY etc etc..but you cant have them all.
 
hmm true. This is still my spec play for Australia. I dont usually go for Australian uranium plays but I decided to have one for longer term prospects. Out of all the grass root explorers I think this one has potential.
Yes, might be true, but that's not to say the speccies in WA and QLD will not do well if they find a significant resource, as you would probably agree. There's still money to made all over the country at the moment. As I said, leaders will change, Libs may even get in in the coming years, so there's plenty of opportunity out there. Personally, I'm just a little concerned at the immediate ripple effect when Labor do ann their 'official' revised policies after the Nat conference. I suppose we'll find out soon. Who knows, maybe the end result will be that Labor tell the states they are to allow mining??
 

Kennas.
If Labour will federal election later this year (a good chance), they can impose uranium mining and State governments have to implement this in their policies.

And Keven Rudd supports U mining, so i suspect its later on in the year that we will see the potential for a significant re-rating of those uranium stocks especially in WA and QLD.
 
Yes, they can, but Rudd has stated he will leave it up to the States. I'll have to find that somewhere else for you. Doesn't mean he will get his own way at the conference of course, as I said above, but he's a golden child at the moment, and if the Nat Committee cross him it won't be good party solidarity.
 

Betting on horses in WA and QLD adding the political flavor. But the battle ground has shifted significantly from how much you can find to how soon and how much you can produce. I don't want to take huge unnecessary risk where you can find good explorers and developers anywhere else in the world.

Of course, The potential near term producers has been hyped recently, you might think the greenfield explorers look cheap.

If I invest in a greenfield uranium player, it must be discounted deeply. If you look around, you might find some companies carry zero value for uranium asset. For example, EDN, SMC, or DGR..
 
Sorry this thread has gone off ECH slightly.

Just to confirm the reports that Rudd will leave the mining decision to the States:


http://www.news.com.au/couriermail/story/0,23739,21486213-3102,00.html
 
I thought they were still cheap. Market cap is only 17 million and in their last report that had 3 million cash at bank. If you think all greenfields explorers cant bring you rewards..well hey its best to stick to the ones that have flown up allready. I like to think there is always opportunity to find another one. I think Echelon will do well. Its like picking a needle out of haystack with these explorers..but some of these explorers are going to fly. Hopefully for me its Echelon. I read into these..assessed the potential and I think they are a good play.
 
Thanks for sharing your research Chris.

Though i havent looked into ECH (besides skimming over what you have posted) but from my experiences also, i think you cant go wrong with low market cap explorers in the uranium sector. eg. EVE at 10c last year ($10million market cap), SAU at 17c early last year ($8million market cap).
 
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