ERN - Erongo Energy

[Sean K]

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.

Well, that seems to add up to me.

Is 3.5 the usual density, or does it come out in the results somewhere?

 

[Halba]

Thats the figure they use for uranium I believe.

 

[sydney1963]

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.

Carmichael latest report for BMN stated that that the average grades in the region is 300 ppm to 450 ppm

 

[captjohn]

Look Guys,

These little Uranium Juniors are just that !!.....in every sense of the word...
coz...their owners(directors) are just not yet up to the standard of "blue chip" executives with degrees in commerce , company law, geology etc.We are all more or less on the Uranium bandwagon......stuck with some 'cowboy directors'...Let's hope they learn quickly not to make mistakes.

However,...Let's not look a gift horse in the mouth ....As I see it we all should be thankful that ern has confirmed a deposit that can produce.....how much .... ?? Halba & Chris will do maths...with guestimates...
Chris 1983 has been confident for ages about ern & he's right !! I bought in recently at support level of 60 ...so happy with that. .....

Our best bonus is that 'no more EPL's are being issued in Namibia .....so we are in an exclusive club & SP for all explorers there (BMN, Ext Ern Dyl etc .etc.)should only increase. captjohn

 

[sydney1963]

Well, that seems to add up to me.

Is 3.5 the usual density, or does it come out in the results somewhere?

I think this 3.5 factor need more confirmation somehow

 

[mmmmining]

A lot of posting here today. Kennas vs ERN Camp!

Finally, we have some historic drilling results. I think the result is excellent, particular the width, average about 25m! Just for comparison, ACB's average width is about 4m.

I went through a few documents, and found Halba's 11mlb estimate is good. With $48m full diluted market cap, and $4m cash, the stock is cheap.

With a lot of upsides, such as:
Area 2,3,4 in EPL3454,
EPL3453 (very hot)and
ELP3523

I believe the company is targeting 50mlb resources through further exploration effort.

So there is a lot of upside with this stock, and I top up some today, and will keep buying it if price falls further.

 

[Sean K]

A lot of posting here today. Kennas vs ERN Camp!

LOL. I hope we got some analysis out of it anyway. Appologies to those who have spent a lot of time on the analysis that I haven't seen before. All the best with this. It's on the watch list for when the market bottoms at 5450 ish. Or, 2000 if you're in WayneLs camp... .

 

[captjohn]

I'm newish to ASF & see on posts the letters" LOL"..latest being from Kennas......
somehow I don't think it means "Lots Of Love "..... considering this mornings episodes with Halba & Chris...

So what does it mean??.....thanx in advance
captjohn

 

[Mousie]

Looks like someone (moderators, maybe?) better post regularly used acronyms on one of the forums. :

captjohn, LOL = laughing out loud

 

[captjohn]

Looks like someone (moderators, maybe?) better post regularly used acronyms on one of the forums. :

captjohn, LOL = laughing out loud

Thanx Mousie,
Maybe a few of the "long termers"on ASF could list (one day)all the Acronyms they use ! captjohn

 

[Halba]

Considering that it has 11mil pounds likely at this starting point, the EV/lb is about $4 as its full diluted mkt cap is around $40m less cash. This itself is very low.

 

[chris1983]

Considering that it has 11mil pounds likely at this starting point, the EV/lb is about $4 as its full diluted mkt cap is around $40m less cash. This itself is very low.

I'm extremely happy with erongo. The message just puts my mind at ease. All the accumulation I have made due to my speculation has been confirmed. I dont believe erongo will stay at these levels. Management have moved effectively and fast.

I'm happy that drilling is to start so soon as it is usually quite time consuming securing a drill rig in Namibia and they have done it very speedily. Would be good to know we have 3 or 4 drillrigs running but they have to start somewhere. Maybe when the SP has further increases they will raise more funds to put forward a more aggressive campaign. I dont think theres any rush to raise funds just yet. They have enough funds to keep going and will raise more money once the SP is at higher prices.

Thats how Bannerman have gone about their business. Not much dilution to the SP could ever hit BMN. I'm hoping Erongo build themselves up to be in a position similar to BMN. All the best guys. I think BMN and ERN are the best plays atm. Not many shares on issue and great prospects. Extract will soon come into the mix once they have their share consolidation and I'll probably have a holding in them also.

 

[Halba]

EXT mkt cap about 150million(167mil shares)

ERN mkt cap fully diluted 45million

Mkt is not stupid. It's only down 2cents on a 100point down day.

 

[chris1983]

Considering that it has 11mil pounds likely at this starting point, the EV/lb is about $4 as its full diluted mkt cap is around $40m less cash. This itself is very low.

That looks right to me Halba.

length by width by thickness(depth) is easier for me to understand.

800 x 250 x 35

= 7,000,000 Cubic Meters

2.4 tonnes per cubic meter.

= 16,800,000 tonnes

Say we use an average grade of 250 ppm.

This will give us

4,200 tonnes of uranium which is just over 9 million pounds. Pretty close to your estimates Halba. This is a great start for an explorer. Exactly the news they were looking for to get them kick started. SP held up very well today and based off the calculations there is no way I'm selling these any time soon. They have too many prospects on their licenses. I think once the granting of EPLs kick off again in Namibia they will also get the fifth license which also has a historic resource. Erongo are looking good.

Uranium spot is $90 and this will continue to increase. Uranium is the new energy. Companies like erongo will still have the opportunities to take advantage of uranium prices. Its only the beginning IMO.

 

[Halba]

I'm getting stabbed to death on my zinc sector ZFX, I am thinking of redirecting these into ERN.

Whats the point losing in those when ERN might do the job/come up trumps in the long run, just needs the drill program next month.

10,000m - thats enuff for plenty of holes.

They got years and they have excellent projects in this boom.

It seems the U stock is the new "defence".

 

[chris1983]

I almost topped up again today in the low 60's but I didnt. I felt I have enough..sometimes its never enough. I just feel very strongly that the SP will perform positively for us in the future.

 

[Halba]

peer comparison

"AFRICAN U"

DYL mkt cap 400million

EXT mkt cap 165m

BMN 350mil

PDN 4500m

Uramin 1450m

Forsys 550m

A-cap - 175m

Uranex - 130m

MRU 40mil

Omegacorp(taken over, 13mil pounds) - 180million

EVE - 60million, African energy spinoff 56million

ERN >> only 45 million

 

[Go Nuke]

I almost topped up again today in the low 60's but I didnt. I felt I have enough..sometimes its never enough. I just feel very strongly that the SP will perform positively for us in the future.

Haha Chris....I know the feeling!
I was soo close to buying more too.....but held off...for now!
Im thinking of diversifying just a little and looking at ARU maybe.Or maybe WMT.

 

[Sean K]

Halba and Chris, I'm trying to work out the best way to make a guestimate of in ground resource but I have two methods here:

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

5200*2200 = 11.5million pounds

length by width by thickness(depth) is easier for me to understand.

800 x 250 x 35

= 7,000,000 Cubic Meters

2.4 tonnes per cubic meter.

= 16,800,000 tonnes

Say we use an average grade of 250 ppm.

This will give us

4,200 tonnes of uranium which is just over 9 million pounds.

Can you guys explain the anomoly here?

Anyone have another way of calculating in ground resource??

Cheers.

 

[chris1983]

Hey Kennas I have always gone by my method when calculating tonnage and resource etc so I'm not really sure.

Halba whats the 3.5? I know you said it was drill density..how does it work into the equation for tonnage.

Thanks