ERN - Erongo Energy

[mmmmining]

I quote:

"The anomalous areas are underlan by white to pinkish granite of the Erongo Complex."

The density of granite is about 2.7 to 2.9....

Anyway, we are not geologist, and the methods used by Chris and Halba is extremely on the upside (assuming uniform mineral distribution in a box). But it does give a target for speculation.

I still believe 11mlb for the area is possible, particularly the possibility of extension to the south...

 

[chris1983]

I quote:

"The anomalous areas are underlan by white to pinkish granite of the Erongo Complex."

The density of granite is about 2.7 to 2.9....

Anyway, we are not geologist, and the methods used by Chris and Halba is extremely on the upside (assuming uniform mineral distribution in a box). But it does give a target for speculation.

I still believe 11mlb for the area is possible, particularly the possibility of extension to the south...

Definately looks promising. I feel a lot safer with my money in the stock now. The level of speculation isn't as high for me anymore. I'm happy just knowing that we have a confirmed resource onboard even though they havn't given any specific values for the resource estimate. You can pretty much work it out with the numbers they have provided. Hopefully we will have two historic resources once the granting of epl's commence but for now ERN are becoming a strong speculative play.

 

[Reefer]

MiningNews.net have just posted their offering on Erongo - be interesting to read their analysis if anybody subscribes

 

[chris1983]

Taken from Hotcopper - Supplied by ryderman

REVIEW of historical exploration data by Goldfields and Falconbridge has boosted Erongo Energy's confidence following the confirmation of the potential for a large tonnage and extractable deposits of uranium at its namesake yellowcake project in Namibia.

Erongo said it had finished reviewing and interpreting the historical data in three areas at its Erongo Granites project in central Namibia, which covers some 420 square kilometres.

Drilling results by both Goldfields and Falconbridge in Area 1 include 39m at 272 parts per million uranium oxide from 2m, 33m at 248ppm uranium oxide from 13m and 32m at 348ppm uranium oxide from 6m.

Erongo said drill results exceeding 200ppm uranium oxide were intersected in holes covering an area of 800m by 250m and remains open to the south for "potential" further 800m.

Over at Area 2, Erongo said two significant untested radiometric anomalies have been identified, while at Area 3, a ground radiometric and Radon gas survey identified an anomalous target area of 5000m by 2000m.

The company plans to start an initial 10,000m reverse circulation drilling program at the project next month.

Goldfields and Falconbridge conducted their exploration work in the 1970s and early 1980s, with no exploration undertaken since then.

Erongo formerly traded as Louisiana Petroleum before a name change in November last year.

Shares in Erongo closed down 1.5c to 65.5c yesterday on the back of the news as the company came out of a trading halt and have since shed 2.5c to 63c by midday today.

Click here to read the rest of today's news stories.

 

[chris1983]

Just some media attention.

 

[aobed]

Definately looks promising. I feel a lot safer with my money in the stock now. The level of speculation isn't as high for me anymore. I'm happy just knowing that we have a confirmed resource onboard even though they havn't given any specific values for the resource estimate. You can pretty much work it out with the numbers they have provided. Hopefully we will have two historic resources once the granting of epl's commence but for now ERN are becoming a strong speculative play.

I must say that I was expecting the share price to move into positive territory today. I'm also quite happy on the longer term horizon. Good work Chris1983 on your analysis - appreciated by the lurkers of this forum that don't post very often!

 

[sydney1963]

I must say that I was expecting the share price to move into positive territory today. I'm also quite happy on the longer term horizon. Good work Chris1983 on your analysis - appreciated by the lurkers of this forum that don't post very often!

thankx chris

 

[chris1983]

guys..SP hasnt gone up much yet..

I do appreciate your thanks though..it could still retrace a bit but I think support at 60 cents should hold. I just hope this company is another 10 bagger for all of us. I think it has a good chance at doing that.

It's fair to say we were pretty spot on with picking one of the last emerging Australian uranium explorers in Namibia that has a very small market cap and great prospects. I think we will see the rewards sooner rather than later. Good luck to holders. I dont think luck is needed though

 

[nizar]

guys..SP hasnt gone up much yet..

I do appreciate your thanks though..it could still retrace a bit but I think support at 60 cents should hold. I just hope this company is another 10 bagger for all of us. I think it has a good chance at doing that.

It's fair to say we were pretty spot on with picking one of the last emerging Australian uranium explorers in Namibia that has a very small market cap and great prospects. I think we will see the rewards sooner rather than later. Good luck to holders. I dont think luck is needed though

You know Chris i really thought OMC was going to be a 10 bagger from $50mill to $500m when it produces, but those stupid directors....

All the best.

 

[aobed]

guys..SP hasnt gone up much yet..

I do appreciate your thanks though..it could still retrace a bit but I think support at 60 cents should hold. I just hope this company is another 10 bagger for all of us. I think it has a good chance at doing that.

It's fair to say we were pretty spot on with picking one of the last emerging Australian uranium explorers in Namibia that has a very small market cap and great prospects. I think we will see the rewards sooner rather than later. Good luck to holders. I dont think luck is needed though

I'm not sure about 10 bagger, but if it is I will personally fly to whichever state you're in and buy you a beer (or fav. drink).

 

[chris1983]

You know Chris i really thought OMC was going to be a 10 bagger from $50mill to $500m when it produces, but those stupid directors....

All the best.

I was going to buy OMC. The directors shafted the shareholders hard.

 

[chris1983]

I'm not sure about 10 bagger, but if it is I will personally fly to whichever state you're in and buy you a beer (or fav. drink).

Maybe I'm aiming to high. A 5 bagger to start with lol

 

[Go Nuke]

Wow...not many trading in this stock at ALL!!
Are we all too smart and are just holding on for that big ann?? Or is the market still to volitile for some?

Only 9.1k shares traded today!

Like BMN.....not alot of movement yet. But thats ok...Im learning patients

 

[Halba]

Yep this is a clone to BMN. Identical stock except 1/8 of the mkt cap, similar trading profile, and moves 2-3 times per year and rest is zzzzzz

 

[chris1983]

*ramp removed*

They definately are movers..and I made money out of WMT..but..how much more will they move and what upside is left in them. I have always liked ACB since 80 cents but never got in. ERN is one that hasnt really moved yet and if it got close to the markets caps of either of those two picks we would be valuing ERN at around $1.10-1.60. Percentage wise I think ERN will give greater gains than both of those picks by the end of the year. Just my guess.

ERN's fully diluted market cap is 46 million dollars with 4 million cash at bank and the oppies would bring an additional 7.5 million because they will be in the money.

ERN share on issue are as follows

ERN- 39,104,310
ERNO- 37,515,689

WMT have a 112 million dollar market cap with 442 million shares on issue. They currently have 5 million at bank as stated on their last report.

ACB have just under 110 million shares on issue and have a market cap of 189 million. They have just raised money though and have 18 million at bank I think..so they have money to last them for quite some time. ACB are definately looking good with their historic resource and large land coverage in Botswana.

What you have to assess is which company will give you the greater % gains. See 100% gains as follows:

ACB running to $3.44 = 100% gain. Would make the market cap as an explorer 378 million

WMT running to 51 cents = 100% gain. Would make the market cap as an explorer 225 million

Or Erongo which currently has a 9 million pound historic resource based off our figures (NOT an analysts figures but our own..see previous posts)..with proven uranium on their epl's in Namibia. Which look to be at economic grades. Currently 4 epls in Namibia which are highly sort after.

ERN running to 1.20 = fully diluted market cap of 92 million. My bets are on erongo..the gains could go well higher than 100%

Personally for % gains I would be going for erongo at this stage. I think they are behind a little bit as an explorer but they will only progress their operations and its only a matter of time IMO before it shows in the SP.

 

[Halba]

Also note WMT hasn't even got a drill program running.

ACB is not going to meet their historical resource- average thickness was only 1m to 2m(needs 15m to reach), and in many zones no uranium mineral at all(not all holes hit mineral). ERN's average thickness was 35 m looking at the historicals. ERN has a better resource than both, and is only 2nd to bannerman on the ASX, for foreign deposits, IMHO.

Also chris points out higher % gain. Importantly as these are riskier investments, the high % potential gain compensates for the risk in ERN.

 

[mmmmining]

Halba, your PM is full. I try to send you a PM

 

[Sean K]

Also note WMT hasn't even got a drill program running....ERN's average thickness was 35 m looking at the historicals. ....and is only 2nd to bannerman on the ASX.

ERN haven't started drilling either. They're scheduled to start in April....thickness of historical drilling is 25-35m thick....second to BMN on what? Historical data? Your estimates? Neither have a JORC yet.

Not downramping, of course, presenting the facts.

 

[Halba]

Whats wrong with historical drilling? Are you doubting the credentials of goldfields who did the drilling? What would that result in?

I don't see WMT having a historical drill kennas.

 

[Sean K]

Whats wrong with historical drilling?

Fair enough, I thought you were implying that ERN were drilling. They haven't drilled anything yet but are scheduled to.