ERN - Erongo Energy

[Halba]

Hi Chris, I spoke to the company secretary yesterday about this same issue about having options and the possible spin off of a new mineral sands company. He was'nt a 100% sure but he believed the company would give the opportunity for the holders of oppies to convert over before final day is set. As I said he was not a 100% so he took my number and is going to get back to me when he speaks to the boss man who gets back from Namibia today.

Kevro

Nice information kevro the boss man in namibia i guess an ann soon =)))) something would have happened whilst in namibia =))

 

[Logique]

First time poster. Hugely appreciate the work by Chris, Halba, the Captain and others on the ERN and BMN threads.

I hold or have held all of PDN, SMM and MTN, but lately have become a bit nervous of all the takeover hype, and whether there was better value elsewhere in the sector. Paladin wanted to diversify into some Australian resource, so the SMM takeover was logical. But Paladin's immediate commercial future is based on the African tenements.

You've got to get your uranium to market before you can start making money. I've read the ASF threads, and lots of company announcements and presentations. Particularly impressed by the radiometric survey of Erongo's Namibian tenements.

I reckon ERN and BMN are both more likely to get to market before the Aussie companies, who have to wade through a domestic political and environmental regulatory morass. And their share price gives the investor greater leverage. Have retained residual holdings in the Aussie based co's (learning the lesson of diversified sources), but have moved mostly over to ERN and BMN, which in my view only - will reward patience.

Thanks again guys.

 

[captjohn]

First time poster. Hugely appreciate the work by Chris, Halba, the Captain and others on the ERN and BMN threads.

I hold or have held all of PDN, SMM and MTN, but lately have become a bit nervous of all the takeover hype, and whether there was better value elsewhere in the sector. Paladin wanted to diversify into some Australian resource, so the SMM takeover was logical. But Paladin's immediate commercial future is based on the African tenements.

You've got to get your uranium to market before you can start making money. I've read the ASF threads, and lots of company announcements and presentations. Particularly impressed by the radiometric survey of Erongo's Namibian tenements.

I reckon ERN and BMN are both more likely to get to market before the Aussie companies, who have to wade through a domestic political and environmental regulatory morass. And their share price gives the investor greater leverage. Have retained residual holdings in the Aussie based co's (learning the lesson of diversified sources), but have moved mostly over to ERN and BMN, which in my view only - will reward patience.

Thanks again guys.

Logique,
Welcome to the 'Bannerman band of brothers' or the Bannerman bretheren....haha,,
Great minds think alike coz I too have mostly bmn & ern, then cfe (iron ore junior) & ero as a long shot.

ern & cfe are tips from chris who ferrets around finding low cap. explorers...& so far his theory is successful.

bmn now will consolidate yet again...until we can have more news to justify taking the SP higher. Its all part of normal progress on the way up. cheers & welcome again...captjohn

 

[Reefer]

I too have been gradually rolling everything into ERN and BMN (coutesy of Chris & Halba) and an oiler COE. Those three make up probably 80% of portfolio. Might divest the other 20% and jump into CFE based on Chris's research. Got to keep the brotherhood strong!!

 

[nizar]

I too have been gradually rolling everything into ERN and BMN (coutesy of Chris & Halba) and an oiler COE. Those three make up probably 80% of portfolio. Might divest the other 20% and jump into CFE based on Chris's research. Got to keep the brotherhood strong!!

Be careful.

What the problem is with getting tips or advice from people is that you generally are told what to buy, How much to buy and when to exit they dont tell you that. Some time later its become a dog, you talk to the person that gave you the tip only to found out they sold ages ago (perhaps when the fundamentals changed) to buy something else and you are still holding what is now a dog.

Iv got nothing against Chris or Halba, but im sure they would say the same thing.

Please consult a professinal financial advisor and/or do your own research before investing.

 

[chris1983]

Yeah I agree with Nizar. I like picking out the spec stocks and so far the success factor has been great..but just realise the risks with everything guys. CFE is a good example..deal doesnt go through..no good..deal goes through..good. Thats what it comes down to for me and I feel fairly confident it will go through but my cofidence means nothing

As for ERN and BMN...they are just hold and wait.

Currently holding CFEO/ERN/BMN/AOE/AGM/ECH/HDGO

I can put my finger on three of those stocks that could fail. Overall I'm overly confident with AOE/BMN/ERN/AGM and I have been on these four from very early stages but I believe they will continue to run. I'm still confident with the others..I weigh all the factors up when I pick a spec. Good luck in your decisions people.

 

[Reefer]

Hear what you say guys but I am certainly doing my own research as well otherwise I wouldn't be jumping in. I was initially alerted to BMN by an article in the magazine MiningNetNews put out and while trawling the net for further info, up popped ASM - never heard of it previously. Headed back thru Chris's posts then, downloaded and printed the 80 pages on uranium published by dept of Mines in Namibia and have a pretty thick file with all the broker's reports and company reports of both ERN and BMN, and COE. So I'm happy to do the homework but I appreciate you guys highlighting the stocks of interest or the breakouts, else most of us would still be in the dark. Keep up the great work, and I won't be on the warpath if it all goes sour - believe that is highly unlikely though.

 

[captjohn]

Yes Nizar,

Thanx very much for your words of wisdom......I do make my own decision to press the 'buy' button...& have my finger on the 'sell' button until SP is up a bit.

I do evaluate Chris's & Halba's analysis & appreciate their research.
I am limited in knowledge at working out how to calculate size of resources & I respect others that can.

OTH I sailed around the world on a yacht using a sextant to navigate.... (that's another long story)
I got ern at 60 so in front already & drilling yet to start!

 

[chris1983]

Glad to hear reefer..I like hearing everyones making money..plus its great when we all get to ride up the SP increases together

But yeah..just would hate to pick a stock and see everyone lose their cash..even when I first bought BMN it was extremely speculative at that stage.

Back onto ERN..they are holding well above 80. They are still extremely undervalued as an explorer in Namibia. If RM Research release another research report they should highlight the historical drilling and do an estimate to the depth it has been drilled too.

 

[kevro]

Glad to hear reefer..I like hearing everyones making money..plus its great when we all get to ride up the SP increases together

But yeah..just would hate to pick a stock and see everyone lose their cash..even when I first bought BMN it was extremely speculative at that stage.

Back onto ERN..they are holding well above 80. They are still extremely undervalued as an explorer in Namibia. If RM Research release another research report they should highlight the historical drilling and do an estimate to the depth it has been drilled too.

Hey Chris, maybe there is a case for a standard disclaimer under every post made. Sort of covers everyones butt that way.

 

[Reefer]

Chris, how do you work out the resource estimate? Or more particularly where does the calculation allow for say a 300 metre deep hole which has say intervals totalling only 50 metres of the 300 which the drilling core show as uranium hits. Just curious.

 

[chris1983]

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.

This was a previous post showing an estimated historic resource. Halba also had some good posts..can't quote them all..but you get the idea.

 

[Noskcid]

SO true, I have friends asking what I hold and they go okay ill get that, but I warn them to do their own research 1st and just point them in the direction to look at, so incase anything goes wrong they dont start a WW3 lol, Which is what I do - basically I read Chris and Halbas thoughts on ERN then went away and done my own reading and research before I came back to press the buy button. Touching wood - if anything goes wrong which I and everyone else HIGHLY doubts, I dont think anyone will blame anyone else as it is ones own decision

 

[chris1983]

Chris, how do you work out the resource estimate? Or more particularly where does the calculation allow for say a 300 metre deep hole which has say intervals totalling only 50 metres of the 300 which the drilling core show as uranium hits. Just curious.

You can only go by the AVG ppm that they report per hole. I worked their historical desposit off an avg ppm of 250. Just based off some of the historical drilling results they released in an earlier announcement.

 

[chris1983]

Below was taken from the last uranium updated announcement.

"At the Area 1 Prospect significant results from previous drill testing include:

32m at 348 ppm U3O8 from 6m to 38m,
12m at 310 ppm U3O8 from 18m to 30m,
7m at 307 ppm U3O8 from 7m to 14m,
17m at 287 ppm U3O8 from 28m to 45m
39m at 272 ppm U3O8 from 2m to 41m, and
33m at 248 ppm U3O8 from 13m to 46m.

The drilling identified an apparently broadly flat undulating zone of ineralization 25 to 35m thick over an area of 800m by 250m. The mineralisation, identified as a radiometric and Radon anomaly, remains open to the south."

The grades are made available to us and also the depth..of 25 to 35m thick over an area of 800 by 250m..and this is just historical information. It continues to be open to the south.

Erongo have a low cap/small amount of shares on issue/cash at bank/believe to have significant mineral sands projects/oil assets earning some cash.

They are really looking good IMO. They also have some other exciting prospects on their Namibian licenses.

A ground radiometric and Radon gas survey over the Area 3 Prospect identified an anomalous target area of 5,000m by 2,000m.

Two significant untested radiometric anomalies have been identified at the Area 2 Prospect.

IMO this is a cocktail for further SP gains.

 

[Reefer]

Chris, thanks for your replies. So just to get my fuzzy brain around this so my research actually means something. Length x width x depth gives the tonnes of rock after conversion.
Then the critical thing is what ppm you apply, and the 250ppm in your calcs is an all in parameter that allows for the intervals of high grade, low grade and no grade.
So if I am looking at "Significant Diamond Drill Intercepts" on GOA0010 of BMN (all I can lay my hands on at short notice) they reported grades between 169 and 1056ppm over 86 metres of the 200 metres drilled - but this is only "significant" intercepts so presumably there would be others. So your av ppm of 250 is how you would calculate the uranium resource for this hole? I realise this is not an exact science, and Carmichaels seem to use a similar methodology.

 

[chris1983]

When they say the grades you can work out the exact ppm for the hole if they give you like all the grades hit down the length of that hole..plus the length hit for each grade etc etc. You need the drillhole image though..like a cross section of the drill.. Its hard work. You just look at the numbers and at an Avg it looks around 250ppm at to 35 meters depth.

"800 x 250 x 35

= 7,000,000 Cubic Meters

2.4 tonnes per cubic meter.

= 16,800,000 tonnes"

Length x width x depth of the deposit gives you the total amount of cubic meters..you need to convert that to tonnes. I read on a website it is 2.4 tonnes per cubic meter. It also depends on the density of the rock etc etc..to get the exact figure for how many tonnes per cubic meter. A lot of factors come into the equation. The estimate we have given is a rough estimate but I think it would be about right.

 

[Reefer]

Thanks Chris, you've cleared that up nicely. Will understand a bit more what I'm reading now!

 

[james888]

Chris, sorry for my ignorance, but how do you work out the depth of 35m, need to take an average of 25m and 35m ?

 

[chris1983]

Chris, sorry for my ignorance, but how do you work out the depth of 35m, need to take an average of 25m and 35m ?

Just got home..um..you can take it to 29 meters if you want.