FRS - Ferraus Limited

Looks to be breaking up.

Probably associated with the news on China sniffing about in the papers.

Trading halt regarding a 'significant strategic agreement with a large-scale Chinese state-owned enterprise.'

Read: we are going to give away half our company for a offtake agreement.

lol

Should be good for them I imagine.

Wonder if the other infrastructure partners will get a boost.

kennas said:

Trading halt regarding a 'significant strategic agreement with a large-scale Chinese state-owned enterprise.'

Read: we are going to give away half our company for a offtake agreement.

lol

Should be good for them I imagine.

Wonder if the other infrastructure partners will get a boost.

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Wondering also about UMC and RMC this morning as well. Bugger, I sold all of my UMC. Still holding all of my FRS though. That was lucky....

Still holding this as my only iron ore junior (oh, I still own some DMM, and nearly back to break-even there.)
Breakup today, but buyers got a bit afraid. Had a good run though. Pity I didn't keep GIR and BRM - could have made some more dollars - oh well. Still cashed up if the opportunity arises....

mate the juniors are all exploratory and don't have any contracts with steel producers.
pure speculation on take-out w/ re to recent run-up.

Ferraus has had a good run in the last few sessions - up 28% in 4 days on the back of no news! Got to love the volatility of these small caps!

Some nice news coming in today (a new formation found to the east-6km strike length). Nice to go east because that is where the rail line ends.
Goal of 230 mill tonne of DSO by mid 2010. These guys never disappoint the market with their high grade iron ore. I don't doubt them one bit. A bit of buying coming in with UMC in TH..... It would be nice to break up from here.

eddyeagle said:

Ferraus has had a good run in the last few sessions - up 28% in 4 days on the back of no news! Got to love the volatility of these small caps!

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I only just saw your post. Was it a leaky boat prior to announcement today, or the speculation going on in iron ore juniors with UMC in trading halt? I guess we will never know.

grace said:

Some nice news coming in today (a new formation found to the east-6km strike length). Nice to go east because that is where the rail line ends.
Goal of 230 mill tonne of DSO by mid 2010. These guys never disappoint the market with their high grade iron ore. I don't doubt them one bit. A bit of buying coming in with UMC in TH..... It would be nice to break up from here.

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Sorry about the directions, can't work out my east from west living on the other side of the country. As FRS are in West Oz, the deposit is to the West. That is where the rail line ends at Jimblebar (to the West), so it is the closest deposit so far. Could be within 20kms now from rail end. This will be the first deposit mined if it all goes sweet IMO.

Ferraus has been flying the last two days with a big increase in volume. Hit 89c at one stage today! Has had an excellent 6 weeks! Anyone got any clues why?

ps. I love it when my stocks get speeding tickets

So - Announcement out yesterday:

- Drill results confirm discovery of substantial iron mineralisation
- Significant intercepts of up to 76m @ 60.3% Fe
- Additional potential for detrital ore
- Maiden resource expected to be confirmed during first quarter

Share price jumped 12%!

I find it quite amusing that the share price started running 3 days before the announcement, and then also that the company claimed they had no knowledge of why it might be rising etc.

Probably because of IO prices and this:

14 Jan

RESULTS CONFIRM MIRRIN MIRRIN AS NEW DISCOVERY

FerrAus Limited (ASX: FRS) is pleased to announce further exploration success at its East Pilbara exploration project, continuing the flow of high grade Direct Shipping Ore (DSO) results from its Davidson Creek area.
The Mirrin Mirrin Prospect is located two kilometres north west from Python Resource and is the closest of the FerrAus prospects to the Jimblebar rail head (approximately 30 kilometres to the west).

Best results include the following intersections:

DCRC0622 56 metres @ 59.3 per cent Fe
DCRC0650 60 metres @ 58 per cent Fe
DCRC0651 76 metres @ 60.3 per cent Fe
DCRC0661A 54 metres @ 59.4 per cent Fe
DCRC0663 48 metres @ 60.2 per cent Fe

The initial identification of the Mirrin Mirrin mineralised trend was announced in August 2009 after an 18 hole drill program. A further 39 RC drill holes, completed towards the end of 2009 for a total of 5,556 metres, outlined iron mineralisation over a strike length of 800m.

Managing Director, Mike Amundsen, said this new resource, together with updated results from other areas drilled in the fourth quarter of 2009, is expected to be announced during the next month.

“We are seeing a rebound in iron ore demand and spot prices, as well as strong customer interest and support in new emerging projects with substantive resources,” he said.

“In recent months we have received visits from major Asian steel mills expressing interest in FerrAus.

“We have already identified more than 166 million tonnes* in total resources, concentrated within a 20 kilometre radius and have just commenced an aggressive drilling program for 2010,” Mr Amundsen said.

The Mirrin Mirrin Prospect has a mineralised trend of some three kilometres strike extent and is still open to the east, west and down dip. This drilling also intersected zones of detrital ore, which have not been closed off.
Results from this drilling program, covering approximately one third of the total Mirrin Mirrin mineralisation trend, will form the basis for a maiden resource. Further drilling on the remainder of the Mirrin Mirrin trend is planned for the second quarter of 2010.

Drillhole locations and assay results from the above project is presented in Figure 1 and a summary of the results listed in Table 1, below.

* 166.6 million tonnes (23.8 million tonnes – Measured, 43.2 million tonnes - Indicated, 99.6 million tonnes - Inferred). Resource estimates are in accordance with AusIMM JORC Code 2004 reported in ASX announcement 3/6/2009

This has been flying under the radar for some time on a comparitive basis and is still trading at just 79c a ton DSO.

GIR at 1.09
SDL 1.30
BCI 1.32
IOH 3.17

And BHP takeover of whatsitsname done at $1.20.

With these results and likely addition to DSO tonnage down the track it will only become cheaper, unless the sp appreciates as it should.

Major break up in June on vulume was the start of the climb. Resistance accross 90c but the fundamentals say higher.

Well, this was the only iron ore junior I hung onto. I ditched BRM, GIR and UMC. One certain thing I have learnt, you can not always get it right.

Anyways, this deposit is shaping up nicely and I think they will get to their 500 million tonne of DSO eventually. Got to be worth a bit to someone seeing it's not far from the rail end.

grace said:

Well, this was the only iron ore junior I hung onto. I ditched BRM, GIR and UMC. One certain thing I have learnt, you can not always get it right.

Anyways, this deposit is shaping up nicely and I think they will get to their 500 million tonne of DSO eventually. Got to be worth a bit to someone seeing it's not far from the rail end.

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I reckon you would have done quite nicely out of those three Grace. Nothing wrong with leaving some on the table for the next person to pick up and run with for a bit. Well done on holding FRS, looks great to me. If the markets continue to generally behave then this will naturally keep appreciating as the raw figures show on the spreadsheet - undervalued still. Good luck!

Still in a nice uptrend from March 09 it seems. Looks to be an attempt to go higher here. Nice volume today. I'm still holding this one.

Recent news could be adding to the momentum....

FERRAUS MOVES TO PRE-FEASIBILITY AFTER SCOPING STUDY INDICATES POTENTIAL A$1.1 BILLION NPV
FerrAus Limited (ASX:FRS) today outlined a robust development evaluation for its iron ore project in the Pilbara Region, located some 35km east of BHP Billiton’s Jimblebar Mine in Western Australia, with the completion of a positive Scoping Study that indicates a potential A$1.1 billion Net Present Value (NPV) for a project ramping up to 15Mtpa.

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Well, there you go. I didn't even know there was a mine at Jimblebar. I guess that could be the reason why the rail line ends there.

Anyway, as always, this one never disappoints the market with news.

FRS quite buoyant at the moment - not a lot of volume, but has it's exciting moments

Looking for a little more volume tomorrow as I see it has hit an entry level on one of the advisories I subscribe to - let's see what tomorrow brings.

Aha! - 66% increase in reserves

Nice little eye opener for this morning. The insiders knew already.

FRS looks like it will be going places.

WOW, DSO resource recently upgraded to 315Mt. That's a decent number!

Trading at 35c a ton.

That can't be right, I must have missed a capital raising or something.

Should be trading at over $1.00 a ton really.

Hmmm

kennas said:

WOW, DSO resource recently upgraded to 315Mt. That's a decent number!

Trading at 35c a ton.

That can't be right, I must have missed a capital raising or something.

Should be trading at over $1.00 a ton really.

Hmmm

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Haven't got time to check the exact figures, but it is still significantly undervalued and always has been, and I'm not really sure why. It is a decent deposit and I'm confident it will make it to 1/2 billion tonne of DSO. Great position near the rail line too and next to BHP's mine.

grace said:

Haven't got time to check the exact figures, but it is still significantly undervalued and always has been, and I'm not really sure why. It is a decent deposit and I'm confident it will make it to 1/2 billion tonne of DSO. Great position near the rail line too and next to BHP's mine.

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Much has been said from me about this one lagging the rest of the iron ore sector so I shoud do some figures to support this.

FRS have a Manganese and Gold deposit which are forming up nicely but I will value those at nil for this exercise.Cash $22mill.

316 mill tonne of 50-55% Fe

210 mill tonne of the above is avge 58.5%

All DSO (correct me if I'm wrong)

Shares on issue 210 mill
Options to be converted 7.5mill (that will bring in some cash too)

Total fully diluted 217.5 mill shares
@ 82.5c
Market cap = $179mill
less cash of $20mill
MC = $159mill for iron ore, manganese and gold

So just attributing value to iron ore
$160mill / 316mill tonne
= 50c per tonne of DSO

This has got to be one of the cheapest around at the moment surely.
It is a great position not far from the rail line and BHP's Jimblebar Mine. It has some Asian interest Wah Nam at 19.9% and China Rail at 12.61%.

It is part of the Alliance with Brockman etc etc.

I just don't understand why this is lagging at the moment.
Can someone tell me? Recent drilling not yet in certified resources has been brilliant as usual.