ERN - Erongo Energy

[Go Nuke]

Here ya go guys my reply from Mr Gasson.

WTF is with the 1 drilling rig??


We value your support as an investor and will always make time to answer any questions you might have.



I must apologise for the late reporting of assay results. The assay lab which we use in Johannesburg has had a number of breakdowns with the result that the turn around time has been extremely slow. I am looking at other options to try to speed up the process. The result is that I am still waiting for the remaining samples from Area 1 and cannot comment on when results for Area 3 or the Spitzkoppe will be available. I am pushing to get them early in the New Year.



We are currently drilling with one RC drill rig while we evaluate drilling results and plan work programmes for 2008.



Thank you for your support and all the best for 2008.



Kind Regards

Mark Gasson

 

[Sean K]

Happy to be holding. Stop trying to read the little breakouts up and down. Just buy and hold based off fundamentals

Look at the market cap..still very cheap.

Now broken support at 30 cents unfortunately. Hopefully for longs this doesn't turn into a has been due to lack of interest. Perhaps a few good drill results will turn it around and U heading back towards $200....

 

[Go Nuke]

God its a nightmare isn't it.

I thought the announcement was pretty pathetic to be honest and I can see why it got dumped.
The grades a very average, well probably below average really and it takes so dam long for this company to make announcements.

In the latest ann it didn't really tell us anything we didn't already know.
I think if they had more drilling rigs they could cover more of that enourmous area they have and hopefully get some better grades.

Still holdling but god knows why.
Guess it was a beginners trade and Ive learnt alot since I first bought in.

 

[damascus]

I too am long and wrong on this one, however they do also have a very respectable mineral sands project which of itself could be worth many times the current share price. What we don't know is whether the grades are economical.I have heard that ERN may be releasing a long awaited update on this project in about 2weeks....we'll see

 

[Go Nuke]

Gee ERN got (this requires bold text)...ABSOLUTLEY SMASHED TODAY!

I feel really insulted (and a bit worried) to see that buy order for 1Mil ERN shares at .002c

ERN just doesn't seem to have anything going for them now that they seem to have found bugger all Uranium.
I don't really know whats so great about Mineral Sands either.
Can someone please give me an example of a company that is successful with mineral sands?

I cant see Erongo doing very well in the future till either the bulls well and truly come back to Uranium (which I am still confident of.Uranium WILL be a fuel source of the future)..OR they strike something far more significant.

I think this stock will go down as my worst investment ever.....well lets hope so

 

[Morgan]

Gee ERN got (this requires bold text...ABSOLUTLEY SMASHEDTODAY!


I think this stock will go down as my worst investment ever.....well lets hope so

Well, you could be sitting on a truckload of URA .....

If you want to check out some mineral sands type projects of other companies, check out ILU Iluka's website http://www.iluka.com
(although ILU sp nothing to get excited about either....)

 

[Reefer]

Go Nuke
It may be that .002 is overpriced. Perhaps the person who submitted the buy bid is a fool, but surely there cannot be much more downside at .002. I'm still hopeful that we will get a ride on the coat tails of Bannerman and the other reputable Namibian explorers, so I'm still buying. Could be the worst decision I've ever made but we will see before the end of this year, maybe.
Not sure on the mineral sands value, Consolidated Rutile and Ikuka are two of the bigger ones on ASX but nothing great in either share price.

From Wikipedia:
"The grade of a typical heavy mineral sand ore deposit is usually low. Within the 21st century, the lowest cut-off grades of heavy minerals, as a total heavy mineral (THM) concentrate from the bulk sand, in most ore deposits of this type is around 1% heavy minerals, although several are higher grade.

Of this total heavy mineral concentrate (THM), the components are typically

Zircon, from 1% of THM to upwards of 50% of THM,
Ilmenite, generally of 10% to 60% of THM
Rutile, from 5% to 25% of THM
Leucoxene, from 1% to 10% of THM
Trash minerals, typically magnetite, garnet and chromite which usually account for the remaining bulk of the THM content
Slimes, typically minerals as above and heavy clay minerals, too fine to be economically extracted.
Generally, as zircon is the most valuable component and a critical ore component, high-zircon sands are the most valuable. Thereafter, rutile, leucoxene and then ilmenite in terms of value given to the ore. As a generality, typically the valuable components of the THM concentrate rarely exceed 30%."
and also in Wikipedia
"The coast of Namibia is host to economic diamondiferrous beach sands, which are exploited by building sea walls and isolating stretches of coastline. The beaches are so isolated that they are sometimes processed in their entirety, down to the bedrock, in search of diamonds. Such deposits have been sought around the world, with sporadic reports of high-value stones but no instances of economic quantities of sediment."

From the Erongo ann this week:

A table was posted of the samples of Total Heavy Minerals (THM). It doesn't paste too well but the highest percentages are with Ilmenite which is the 4th most valuable mineral sand, there are reasonable percentages of Grade 3 which is more ilmenite and also Leucoxene which is the third most valuable. There are low values of magnetite which is "trash" but also low values of zircon which is the cream of the crop, and rutile. Zircon can account from anywhere from 1% to 60% per Wikipedia.

Notes - Detailed analysis of the mineral components and composition of the samples
taken is currently in progress and is expected to be completed by late January. The
following preliminary information is available in respect of the categories:
• Grade 1 Magnetics – This component is comprised of mostly magnetite.
• Crude Ilmenite – This component is predominantly comprised of ilmenite, but
preliminary results indicate the samples include small amounts of other
unidentified materials.
• Grade 3 Magnetics – Component minerals are currently being determined. This
category may include weathered ilmenites, iron rich garnets, leucoxene and
pseudo rutiles and ilmenites.
• Other Non Magnetics – This component is comprised of zircon, rutile and
possibly monazite. There appears to be nominal levels of garnet.

It is too early to see if these deposits are worth anything or not, will have to wait for the appraisal report due late January. But Wikipedia states that most deposits have only 1% THM whereas the ERN samples go from 2% to 12% so they may be quite rich deposits.

Good luck to all long suffering holders. Picked up quite a few oppies yesterday at 4c, which will help offset those i bought at 79c. I think its called "averaging down", but also referred to as throwing good money after bad.

 

[Go Nuke]

LOL..I liked that last bit.

Thanks Reefer for posting that info for me.
I didnt even think of Wikipedia

Instead i just typed in Erongo and Mineral Sands.
I agree with what your saying about riding along with Bannerman..hopefully when they release their resource ann this month.

I had a quick look at CRL and Iluka..but gee you wouldn't really want to compare their sp with ERN's at the moment

Interesting that you picked up some options. i don't know a whole lot about option (though i understand the excise price etc)
Would you trade those options or hold them till you thought the sp was at its highest and excise them before the end date of the option?

Thx again

 

[Reefer]

Nuke
You get much better leverage with options which is good when the "heads" (or fully paid shares) are going up, and bad when they are going down. I used to do a straight calc based on the exercise price so if shares were 30c say, and options had 20c exercise, then you wouldn't want to pay more than 10c for the oppies.
But someone on another thread talked about oppies sometimes being worth a lot more than that and directed me to the ASX site where you can read up on how to value them. You basically take into account the exercise price, the term to expiry, and the prospects of the company, and strike a premium that you are prepared to pay.
The Erongo options cost 20c to exercise by 30th April 2009 or they expire and you lose your money. At last traded prices shares were 21c and oppies 4.2c - considering they still have 15 months to run you would hope in that time the company drills something decent or gets a ride on the uranium price, or BMN, or the mineral sands offshoot happens. If the shares can clamber back to 42c or double in price, then the oppies should go to 25c or more, which is a pretty good percentage move.
The danger will be in April 09 if the shares are only 17c, you may not want to drop another 20c each into the black hole that the investment has become, to convert the oppies into shares.
You need to find companies with potential, where the expiry time is still 12 months away at least, preferably two years.
I have ERNO, HLXO and RCIO as well as "heads" in other companies. The RCIO I bought when I sold the RCI shares I had, because I wanted to retain an interest without being exposed to such a large investment. Their options have an exercise price of 30c and expire on 30/11/09 so have the best part of two years to run. At 4c they don't appear a good buy compared to the shares at 20c but with the longish term and the potential of their coking plant in China I reckon they are worthwhile. Watch the quarterly figures due out by the end of Jan because they will show almost a full quarter of the coking plant in China, rumoured to be making $1 mill a month.

I will probably sell some of my Erongo options if they rise in price to average down the price of the ones I intend to keep. I don't think there is much downside in ERNO below 10c, as long as we aren't heading towards a US inspired depression.

 

[damascus]

Following is a reply to an email to MD of ERN Mr Mark Gasson sent by broker

"Apologies in the delay in getting back to you but I was in the field in Namibia and out of email access.



To answer your questions the EIA report has been completed and is with the Ministry. We are waiting for the final clearance which we have been told will be within the next two to three weeks. In the meantime we have conducted an orientation hand auger drilling programme and were able to recover samples to a maximum of 10m. These samples have been submitted to the lab for analyses and will give us an indication of whether heavy minerals persist at depth.



Our field teams are currently progressing with new target identification and detailed mapping and sampling of identified areas of uranium mineralization on both EPL’s to the north and south of the Erongo mountains prior to drilling. This includes target areas around Area 1. There are also areas of known mineralization on the southern tenement which we are currently evaluating. As you correctly say we will have to define target areas very carefully before drilling. There are still untested areas on the Spitskoppe project as well as an area of 5 x 2km with visible carnotite exposed in the top 2m which was not tested adequately as recoveries were extremely poor in the top 2-3 metres in the recently completed RC drilling programme. We are evaluating other methods to test this mineralization.



The majority of work to date has been focused on targets identified by Goldfields. We are confident of finding new target areas on the untested 400 odd square kilometers where similar rocks and geological structures are recognized. In addition only a small portion of the Spitskoppe tenements were tested. We are also constantly evaluating new uranium and mineral sand opportunities in Namibia as well as in other countries in Africa."

Call me an optimist but it would seem there is far more upside to Erongo than the share price currently reflects.

 

[Sean K]

Call me an optimist but it would seem there is far more upside to Erongo than the share price currently reflects.

Well, call me a pessimist, but I can't see anything in that email that indicates the sp should be anywhere but where it is. Can you point out the facts there with associated analysis to indicate why the market cap could be higher? I'd be very keen to get in at the bottom of any stock, but your post doesn't really indicate that this is, has or will bottom. Are you a long term holder, or looking for an entry?

 

[Go Nuke]

Call me an optimist but it would seem there is far more upside to Erongo than the share price currently reflects

Your an optimist!

I'm long on this stock and from the reply to Mr Gasson i got and the one you have kindly shared with us....I cant see why i was paying so much for this stock at .58c

I know it was just people caught up the the uranium bug.

I think they have very little and sound either pretty poor or unorganised at getting stuff drilled.

Once agin I'm really disappointed in both myself and the current share price of Erongo.

Its clearly going to be a 10c stock soon.
Nearly there today infact

 

[Go Nuke]

Some big volume today for ERN.

2 really big cross trades were made at 13c and 13.5c.

Ive no idea if this means some kind of news is comming or just insto's trading perhaps

 

[SGB]

MMM....

Whats going on guys

I jarred my finger looking for these buy contracts burried at the bottom of the draw. A bit faded now.

Or am I just getting excited over nothing

Anyone.

Cheers

 

[Go Nuke]

Yeah OMG up 90% right now!!

I always check on ERN just to see how well its disappointing me and thought to myself when it closed at 10c yesterday that this was kinda bullish.

But Im holding such a loss with this one that there was no way i could bring myself to throw more cash at it.

Oh well.

ERN seems to have left their Uranium by the way side alittle in my opinion.
The last reports seemed to focus more on the mineral sands, which isn't much interest to me.
I know that a little good sentiment is coming back to the U sector, but hardly enough to warrent todays price rise.

I's say that due to the very thin sell depth, thats whats made the sp jump so high so quickly.
Only 27 at the moment to give it a 90% rise.

BMN, PDN etc are down today, so its nothing to do with Uranium in Nambia in general.
Reading the last report, if an ann were to come out (other than the speeding ticket they are sure to get) I believe it would be either the environmental clearences to begin aircore drilling of the mineral sand project or follow up drilling and perhaps some results from the Radon X surveys from the Erongo Granites Project.

Either way it great for anyone who bought -10c:grinsking

 

[Go Nuke]

Wow up 150% now.

Gee im almost at a 50% loss now..lol.

Wish i knew what was driving this.

Some really strage trades too this arvo.
Like 1 share bought at 14c

 

[SGB]

Wow up 150% now.

Gee im almost at a 50% loss now..lol.

Wish i knew what was driving this.

Some really strage trades too this arvo.
Like 1 share bought at 14c

Your right about the strange trades GN.
What could it be?

It could be a technical issue

SGB

 

[Pat]

I always check on ERN just to see how well its disappointing me and thought to myself when it closed at 10c yesterday that this was kinda bullish.

Go nuke I check ERN every now and then to remind me of the good decisions I've made. I hadn't checked for so long I thought "what a dog stock" and WOW!!! Whats that big candle doing there.

As always,

 

[Go Nuke]

Go nuke I check ERN every now and then to remind me of the good decisions I've made. I hadn't checked for so long I thought "what a dog stock" and WOW!!! Whats that big candle doing there.

As always,

LOL. Well yes thats one way of looking at it.
I guess you see a glass half full too

Oh well, time will tell.

 

[Pat]

LOL. Well yes thats one way of looking at it.
I guess you see a glass half full too

Depends if your empting the glass or filling it. If you found the glass like that? Then its a glass with some water in it.

ERN's come back as expected, but no volume. Some buyers still seem interested.

And no speeding ticket?