ERN - Erongo Energy

[JWBH01]

I din't like the usage of the term low grade. Doesn't sound the best.

 

[towie]

Those results are for area 1
check out the size of the anomoly identified in area 3
and even then we only have 2 areas out of the 4 prospects covered,
this company could be anything, its in a known Uranium area and our tenaments have plenty to go yet, I wouldnt be selling these for anything till we have drilling results for the whole lot.

 

[chris1983]

I'm not sure. 348ppm the highest reading. Not really that outstanding, but if it averages above 250 then it's got a chance of being a mine one day. Once it starts getting 500 + ppm, get excited.

Kennas. Do you know the grades in Namibia? This is great news. I dont think Bannerman will even hit many drills with grades greater than 500ppm.

Look at the spot price of uranium now. This is economically viable.

 

[chris1983]

I din't like the usage of the term low grade. Doesn't sound the best.

Sell on the open then. Rossing the largest open cut mine in the world use the terms "low grade"

I dont know what more you people want.

The only bad thing about this announcement is it comes one day after a large drop on the DOW.

 

[kevro]

The best is that this is only from one anomoly. They have 21 other anomolies of interest to be investigated and a possible 5th tenement to be awarded.

 

[Halba]

Having said that I'm not expecting a huge open. Bear in mind the dow has an absolute shokka last night. So anyone can buy it, it won't open that high.

 

[Sean K]

Kennas your negativity on these results is somewhat disturbing.

Re-read the ann and see the potential.

There are anomalies everywhere and proven uranium results.

The average grade on the reported holes is about 260. Valencia is about this I think, so it might be viable one day. One day. These are historical results. ERN haven't lifted a shovel yet!

I'm not been negative, but objective.

I obviously don't own it.

 

[Halba]

"so it might be viable one day"

It's viable now kennas. Not sure but I read somewhere u price was $90.

 

[Sean K]

Kennas. Do you know the grades in Namibia? This is great news. I dont think Bannerman will even hit many drills with grades greater than 500ppm.

Look at the spot price of uranium now. This is economically viable.

Yes:

LH 875ppm
Rossing 320 ppm (but 374 m/tn)
BMN 300-500 ppm

It's only economically viable if they have enough at such low grade.

 

[Halba]

Theres about 11 million pounds in that 1 area... and its open. Potential is very large. And thats economic. Market doesn't need a jorc with 40-50m mkt cap.

 

[JWBH01]

Sell on the open then. Rossing the largest open cut mine in the world use the terms "low grade"

I dont know what more you people want.

The only bad thing about this announcement is it comes one day after a large drop on the DOW.

No way I would sell this yet, I'm in for the long haul, just thought the wording could have sold it a bit better.

I'm just as happy as everyone else who's on this one, don't worry about that.

 

[Halba]

Also they are forwarding quick to a 10,000m drill program. These guys are very professional IMHO.

Bear in mind considering their puny mkt cap this is very cheap on a peer valuation basis

 

[Halba]

800*250*3.5*30m thick*0.025% = roughly 5200t

5200*2200 = 11.5million pounds


assuming it extends to 800m*800m then

800*800*3.5*30*0.025% = 39mil pounds

 

[Halba]

Omegacorp got taken over for about $180m dollars. They only had about 12-13million pounds. So theres a peer valuation IMHO. Looks good value to me. If you want to get it cheap the mkt is putting it down as DOW is weak.

 

[nizar]

LOL gotta love those bandwagons.
Just like DYL used to be in IT.
MKY used to be in advertising.
But hey - as long as the sp goes up we all happy

 

[captjohn]

Unfortunately not good timing for announcement when U.S. & Asx down so much today.....seems good positive news tho'.....just topped up at 63 cents
captjohn

 

[Sean K]

800*250*3.5*30m thick*0.025% = roughly 5200t

5200*2200 = 11.5million pounds


assuming it extends to 800m*800m then

800*800*3.5*30*0.025% = 39mil pounds

Sorry, what's the 3.5 Halba. I don't know how to do the maths here. Cheers.

Must say here, I am only trying to keep all this in perspective. I'm not downramping or anything, just trying to see the true value in this desk top study they've just done.

 

[Halba]

np kennas. I try to do proper analysis you know that 3.5 = drill hole density.

So you can see the potential. Bear in mind thats about 39million pounds in the 1st anomaly. There are other bigger anomalies in their picture(diagram) attached. If they get similar hits at similar grade in their drill program this will be bumped up.

 

[Halba]

Yep both chris and i have put a lot of analysis. Todays batch of info increases the probability of a deposit and what appears to be a big mine (in my own opinion). It also gives us more info with which to analyse. It looks as though 60c support is very strong. IMHO it might consolidate before the drill program.

American/overseas mkts can do little to the uranium mkt. The uranium mkt is the best market right now in the world.

 

[chris1983]

If you can't see this is one of the best uranium plays on the ASX atm with a low market cap then I can't help you. 4 tenements in namibia..one with historic drilling..cash at bank..hardly any shares on issue..a further uranium epl pending with a historic resource and Klaus is building mineral sands epl's for a spinoff. Klaus has had previous work in Africa and he obviously has some friends over there. The SP is holding very well. There wont be many sellers under 60. Just need the markets to stabilise.