ERN - Erongo Energy

[chris1983]

Hey guys research means nothing without results so hopefully the results come. It did look like there were some very large buyers waiting in the midst for that recent retrace though. A 300k buyer appeared this morning and I thought it was going to be a dummy bid but it wasnt. There are also quite a lot of buyers stacked at 63.

"The Company has acquired a scintolometer and will commence with ground surveys in February 2007 to better define high priority areas for follow up with regional sampling programmes. A hand auger will be used to collect samples in areas covered by excessive overburden which could mask potential
uranium anomalies.

The Company intends to fast track trenching and drilling programmes to test areas with known uranium occurrences."

So they would have commenced ground surveys etc..things will be getting underway. Will have to hold for a good 6 months I would think. Hopefully an announcement on the grades from the historics is released in the next month or so. Share price appreciation in my mind has to occur just with how the uranium sector is firing. Lets wait for some of those samples

 

[chris1983]

I have read over the quarterly report again and I havn't mentioned they do have results in there from one of the diamond drill holes which is from EPL 3453... one of the erongo granites licenses. They have actually hit uranium to 170 meters depth. It probably extends below that. There is an image on the 6th page showing the drill core. I dont know why I didnt mention it earlier. How many explorers hitting uranium at those depths guys? Bannerman have got some excellent depth on their results and look where the SP has gone.

I think Erongo just had too much info within their report..its very easily missed and forgotten when your trying to read fast to see if you should sell out.

"Two diamond holes in Area 1 were also drilled to evaluate the granite-uranium association. Yellowgreen secondary uranium mineralisation was observed from near surface in the weathered zone in the first hole. The near surface mineralisation ranged in value from 134 to 982g/t U3O8. Several zones of increased foliation at depth were also logged (refer drill log at Figure 2; hole was reportedly drilled to 170 metres). The second drill hole was drilled into a zone of intense vertical jointing 150m wide and returned a best result of 0.35m @ 252g/t U3O8. No other information in respect of these two holes is currently available."

 

[sydneysider]

I have read over the quarterly report again and I havn't mentioned they do have results in there from one of the diamond drill holes which is from EPL 3453... one of the erongo granites licenses. They have actually hit uranium to 170 meters depth. It probably extends below that. There is an image on the 6th page showing the drill core. I dont know why I didnt mention it earlier. How many explorers hitting uranium at those depths guys? Bannerman have got some excellent depth on their results and look where the SP has gone.

I think Erongo just had too much info within their report..its very easily missed and forgotten when your trying to read fast to see if you should sell out.

"Two diamond holes in Area 1 were also drilled to evaluate the granite-uranium association. Yellowgreen secondary uranium mineralisation was observed from near surface in the weathered zone in the first hole. The near surface mineralisation ranged in value from 134 to 982g/t U3O8. Several zones of increased foliation at depth were also logged (refer drill log at Figure 2; hole was reportedly drilled to 170 metres). The second drill hole was drilled into a zone of intense vertical jointing 150m wide and returned a best result of 0.35m @ 252g/t U3O8. No other information in respect of these two holes is currently available."

IMHO Erongo's quarterly was probably the most impressive of all the U explorers who are still in the very early stages of a project. Speculative upside here is enormous ans it is reasonable to compare with BMN at 50 cents. I think u are wrong when u say that one of the historic holes hit u at 170 m depth but they seem to have u absolutely everywhere based on the historic drilling and new radiometrics and they certainly do have targets at depth being the granitic source rocks for U. ERN will IMHO now become a spec "darling" and amaze us all.

 

[chris1983]

IMHO Erongo's quarterly was probably the most impressive of all the U explorers who are still in the very early stages of a project. Speculative upside here is enormous ans it is reasonable to compare with BMN at 50 cents. I think u are wrong when u say that one of the historic holes hit u at 170 m depth but they seem to have u absolutely everywhere based on the historic drilling and new radiometrics and they certainly do have targets at depth being the granitic source rocks for U. ERN will IMHO now become a spec "darling" and amaze us all.

Everyone is saying they think I am wrong. Go to page 6 of the quarterly report where they have the image of the drillcore. It seems to be pretty black and white to me?? Or am I just reading the image incorrectly?

Actually maybe I can even attach it. See quote..they state several zones of increased foliation at depth were also logged...and you can see the grades at depth which has one value at 460 ppm

"Two diamond holes in Area 1 were also drilled to evaluate the granite-uranium association. Yellowgreen secondary uranium mineralisation was observed from near surface in the weathered zone in the first hole. The near surface mineralisation ranged in value from 134 to 982g/t U3O8. Several zones of increased foliation at depth were also logged (refer drill log at Figure 2; hole was reportedly drilled to 170 metres)."

 

[sydneysider]

Everyone is saying they think I am wrong. Go to page 6 of the quarterly report where they have the image of the drillcore. It seems to be pretty black and white to me?? Or am I just reading the image incorrectly?

Actually maybe I can even attach it. See quote..they state several zones of increased foliation at depth were also logged...and you can see the grades at depth which has one value at 460 ppm

"Two diamond holes in Area 1 were also drilled to evaluate the granite-uranium association. Yellowgreen secondary uranium mineralisation was observed from near surface in the weathered zone in the first hole. The near surface mineralisation ranged in value from 134 to 982g/t U3O8. Several zones of increased foliation at depth were also logged (refer drill log at Figure 2; hole was reportedly drilled to 170 metres)."

Well done, I missed that one. Congrats on your interpretation and observation. U are right, there are u values at depth but not in the basement granite. This means that there are mutiple high grade u zones down to 145 meters. I suspect that ERN might really take off in the next few trading days. This is very bullish news.

 

[sydneysider]

I have read over the quarterly report again and I havn't mentioned they do have results in there from one of the diamond drill holes which is from EPL 3453... one of the erongo granites licenses. They have actually hit uranium to 170 meters depth. It probably extends below that. There is an image on the 6th page showing the drill core. I dont know why I didnt mention it earlier. How many explorers hitting uranium at those depths guys? Bannerman have got some excellent depth on their results and look where the SP has gone.

I think Erongo just had too much info within their report..its very easily missed and forgotten when your trying to read fast to see if you should sell out.

"Two diamond holes in Area 1 were also drilled to evaluate the granite-uranium association. Yellowgreen secondary uranium mineralisation was observed from near surface in the weathered zone in the first hole. The near surface mineralisation ranged in value from 134 to 982g/t U3O8. Several zones of increased foliation at depth were also logged (refer drill log at Figure 2; hole was reportedly drilled to 170 metres). The second drill hole was drilled into a zone of intense vertical jointing 150m wide and returned a best result of 0.35m @ 252g/t U3O8. No other information in respect of these two holes is currently available."

A quick calculation of "target tonnage" on ERN's area1 is 1000 x 800 m by 25 meters thickness = 40-60,000,000 tonnes (based on 63 RC drill holes). The Diamond Drill hole reported in this same area shows multiple u grades but has a thick zone near the base of the hole that is about the same thickness as the surface zone so the "target tonnage" doubles to 80-120,000,000 tonnes and increases the prospectivity of the "in between zones". IF my interpretation is correct the ERN shareprice should explode as this type of interpretation puts a price move into multiples of the current share price.

 

[Thadius]

Well done, I missed that one. Congrats on your interpretation and observation. U are right, there are u values at depth but not in the basement granite. This means that there are mutiple high grade u zones down to 145 meters. I suspect that ERN might really take off in the next few trading days. This is very bullish news.

Congratulations and well done Chris1983 for your attention to detail and Sydneysider for your sentiments.

I have been on Erongo since Louisiana days and from the story unfolding I have to agree with you Chris that the comparison to Bannerman is not at all far fetched at this early stage.

It seems nearly every U stock seems to have posters claiming their company is going to be next Bannerman. However the anomalies at Erongo and the team they have, give me great confidence that we are on a winner with or without the 5th tenement being granted.

I also have made a tidy sum on UNX but have being waiting for the signals on ERN to drop UNX and put even more into ERN.

I think the time is right now, although I still see UNX doubling this year, I see ERN as a real multi bagger.

Good luck to both of you and I really appreciate your intelligent posts.

 

[Halba]

my estimate is personally about 75mT+ in 1 area @ an average grade of 120ppm

This gives extractable u308 content 8400t or 18mil pounds in 1 anomaly

the company has stated there are 21 anomalies. The one i am most interested in is the anomaly where the historical drill bits broke, which was @ the centre of the anomaly.

Still early days but this is a likely 'producer' due to its location.

I don't see UNX as impressive. intersections were low meterage. ERN has 25-35m thick intersections at low grades.

Reference: Uramin. Their mkt cap is nearly 820million AUD dollars equivalent and they have about 500mT @ 120ppm inferred, but only 61mT measured and indicated(mineable). Of course other smaller projects in africa so they are diversified). See UMN they are listed in london and TSX. Total inventory is 139mil pounds. They aim to produce 1500t by end of 2008 and are the next U producer after paladin in the country.

If ERN gets up to Uramin standards in 12 months, thats about $15 a share in 12 months.

See Uramin:

http://ww7.investorrelations.co.uk/uramin/uploads/press/TrekkopjeFeasibilityStudyUpdate20Nov.pdf

Trekkopje uranium project

 

[LifeisShort]

my estimate is personally about 70mT+ in 1 area @ an average grade of 120ppm

This gives extractable u308 content 8400t or 18mil pounds in 1 anomaly

the company has stated there are 21 anomalies. The one i am most interested in is the anomaly where the historical drill bits broke, which was @ the centre of the anomaly.

Still early days but this is a likely 'producer' due to its location.

I don't see UNX as impressive. intersections were low meterage. ERN has 25-35m thick intersections at low grades.

Reference: Uramin. Their mkt cap is nearly 700-800million dollars and they have about 125mT @ 150ppm.

If ERN gets up to Uramin standards in 12 months, thats about $12 a share for ERN holders!

Then on those figures BMN should be $50

 

[Halba]

yup bmn will go to $50 i hold as well

Also look at forsys metals on CAD. thats another producer in namibia. Code is FSY. Mkt cap $400m AUD, has about 20,000t u but at 200ppm.

 

[chris1983]

my estimate is personally about 75mT+ in 1 area @ an average grade of 120ppm

This gives extractable u308 content 8400t or 18mil pounds in 1 anomaly

the company has stated there are 21 anomalies. The one i am most interested in is the anomaly where the historical drill bits broke, which was @ the centre of the anomaly.

Still early days but this is a likely 'producer' due to its location.

I don't see UNX as impressive. intersections were low meterage. ERN has 25-35m thick intersections at low grades.

Reference: Uramin. Their mkt cap is nearly 820million AUD dollars equivalent and they have about 500mT @ 120ppm inferred, but only 61mT measured and indicated(mineable). Of course other smaller projects in africa so they are diversified). See UMN they are listed in london and TSX. Total inventory is 139mil pounds. They aim to produce 1500t by end of 2008 and are the next U producer after paladin in the country.

If ERN gets up to Uramin standards in 12 months, thats about $15 a share in 12 months.

See Uramin:

http://ww7.investorrelations.co.uk/uramin/uploads/press/TrekkopjeFeasibilityStudyUpdate20Nov.pdf

Trekkopje uranium project

Hi Halba..Just wondering..how did you come up with the 120ppm avg grade with really no results to go by? Just a guess?

 

[Halba]

I looked at that drill core they provided and extrapolated it for about 25-35m of the core.

A lot of the numbers are around the 150ppm level, where there is mineral. Some are 300, 200 and some higher, but average looks 120 or so. I then extrapolate this over the entire deposit(strike length). Of course lots of assumptions but what else do we have?

 

[chris1983]

I looked at that drill core they provided and extrapolated it for about 25-35m of the core.

A lot of the numbers are around the 150ppm level, where there is mineral. Some are 300, 200 and some higher, but average looks 120 or so. I then extrapolate this over the entire deposit(strike length). Of course lots of assumptions but what else do we have?

Thats sounds about right after I looked into it. I hope the other historic drillholes bring some slightly better grades. Based off what we have which isn't much to work with (1 drillcore with results) I think some reasonable and hopeful assumptions have been made. We'll be able to work it out a lot better once these other historic drill results come out..if they ever do.

 

[Halba]

boy look at the support on the share price

and No i don't expect to find the results from drill holes. Africa 3rd world won't keep those results. However atleast we know where it is ,so that would be a logical 1st drilling program. the 2nd drill program i would do at the 3000m x 1000m anomaly where the drill bits broke.

 

[towie]

Thanks for the posts over the weekend folks, we dont have much to go on as far as drilling results go for this one but your posts have helped my research and though ive been holding and buying for a few weeks, Im more confident we have a chance of being in on a great story here.
Look out for some news from the company in the last week or so of this month.

 

[chris1983]

Guys what is a ERL license.

I found out that "corporate resource consultants" have a pending ERL license..what is the difference between ERL and EPL?

I posted this on hotcopper and others believe its for their mineral sands project.

"Mineral Sands Project
The Company also acquired an interest in tenement applications in respect of a potential heavy mineral sands project south western Namibia. The Company will assess the prospectivity of this project upon the granting of these licences."

 

[chris1983]

"An ERL entitles the holder to an exclusive right and a preferential right over the area held."

 

[Sanhedrin]

Chris I would of expected fairly firm resistance at 60 cents
whats your view of the short term price action say 2 weeks or so??

 

[chris1983]

Chris I would of expected fairly firm resistance at 60 cents
whats your view of the short term price action say 2 weeks or so??

It looks to me that buyers are coming in when ever they do go below 60. Current bid atm is 60 and the ask is 61.5 so it does seem to be holding. I dont know how big that bid is though because I dont have market depth..but buyers seem to jump in at around the 60 level.

It is also 36 EURO on the berlin exchange but only 70,800 shares traded hands. The ask is 40 euro over there which is 66.5 cents australian..I dont think it will fall down too far..but hey..anything could happen. In the overall trend I believe it will be up though..the short term fluctuations dont bother me. All I'm hanging out for is news on the fifth tenement because it is still pending. I hope they get it because IMO thats the one to make the sp fire in the short term unless they get some of the historical data and it looks quite good.

 

[mmmmining]

Chris,

What is your comments on the weakness of the ERN? The new placement is nearly out of money. Very interesting.