KMN - Kings Minerals

[Sean K]

OK.

I am very confused.

Kalman Drilling Significant Intersection

The Directors are pleased to announce a highly significant intersection from ongoing drilling within the Kalman deposit located within the Mt Isa project.

Highlights Massive chalcopyrite intersection in drill hole K-106A of 7.65m @ 23.4% Cu, 0.51g/t Au, 20g/t Ag from 581.65m

7m at 23% Cu?

Plus other credits....

Perhpaps I have NFI?

Incredibale intersection.

 

[alankew]

Meanwhile at the nearby Xstrata site the miners on site are compalining about low water pressurelol

 

[TheAbyss]

It is not a typo that is for sure. Spoke with the company today to confirm things for myself.

The rest of the assays results for kalman Sth out in a few weeks which, with any luck will give an indication of a pretty decent resource. No way the rest will be at 23% (i wouldn't mind) but even if they are 3-5% which is what they are thinking, then we are looking at something pretty decent.

Positive is that they will be able to derive income down to 400 metres or so on the previously known 50mt rsource which is about to be revised also prior to going full underground to get at the good stuff.

They are fast tracking an internal scoping study prior to committing to a green light but the signs are very good. They will need to do something soon though as they have $7m in the bank and are spending $1m a month in costs so watch them move fast.

Of course should an investment bank get involved on the back of the good mexican study then this will relieve the pressure somewhat.

The revised resource announcement due to adding in the uranium could see this stock turn the corner on the back of good announcements which is what it takes.

1. Further assay results Kalman Sth
2. Revised resource announcement
3. Mexican announcements - investor plus highlighting things like good strip ratios etc to increase the NPV
4. Kalman Nth is going to deliver some value which KMNB own 100% of

Watching with interest.

 

[dubiousinfo]

Well that explains the jump in price.

I want to be one of the people that get to hear about the news and get set a few days before its released. Its not like ASIC cares

 

[Sean K]

Call be a skeptic, or logical negativist, but are KMN doing the ramp thing again with the cartoon they produced with the last ann.

The deposit seems to be widening quite significantly under the initial resource estimate.

Yet, they only have one assay result, as shown.

Perhaps the 'deposit' outlined is further visually identified mineralisation.

If it is, then the initial JORC might be upgraded a tad. A tad.



It's deep, but 23% Cu!!!

Cripes.

 

[TheAbyss]

When i spoke to them they said that they could see the huge vein of copper in that assay so rushed that particular test. So in a form it is a ramp i guess but if you see it why wouldnt you prioritise that?

Rest of the assay results are 2-3 weeks away so we shall see. They didnt see anything else that looked like 23% but i will settle for anything that makes it worth progressing to defining a resource worth further progression.

 

[Sean K]

When i spoke to them they said that they could see the huge vein of copper in that assay so rushed that particular test. So in a form it is a ramp i guess but if you see it why wouldnt you prioritise that?

Rest of the assay results are 2-3 weeks away so we shall see. They didnt see anything else that looked like 23% but i will settle for anything that makes it worth progressing to defining a resource worth further progression.

I'm a little skeptical of these guys due to their past ramping.

For eg, intitial Kalman JORC was a third ish of their continued projections.

Or, maybe I just didn't look at it conservatively enough.

Whatever, that intersection (23% Cu, WTF!!) is off the reservation.

If they get 1% over that cartoon projection then they are sitting on an incredible resource.

Like maybe 10 times their initial JORC, at a pluck.

Never seen anything like that intersection before, although I'm just relatively new to this game.

 

[cariemas]

With the massive 'ramping' down in the past due to the financials (credit crunch, forced selling from margin loans and opes prime selling of 20m shares), Kings shares are way oversold.
I think we can handle a little bit of good news with this new discovery.
The financial aspect has darkened the increasing promising fundamentals of this share for fall too long.

 

[Sean K]

One of the reasons why this has been punished is because San Anton (TSX:SNN) has been smashed. All time lows. What looks to be happening at the moment is some stabilisation, and maybe even a potential bottom forming. Too early to tell.

What the price weakness has done however is make SNN look very cheap on a peer comparison with other explorers and developers.

I've taken this off their most recent presentation. As you can see, undevalued compared to peers, but maybe for a reason. Grade is the issue I feel, along with gold recovery. Stip ratio is very low however, half of many others.

KMN need SNN to start picking up a bit.

 

[Sean K]

One of the reasons why this has been punished is because San Anton (TSX:SNN) has been smashed. All time lows. What looks to be happening at the moment is some stabilisation, and maybe even a potential bottom forming. Too early to tell.

What the price weakness has done however is make SNN look very cheap on a peer comparison with other explorers and developers.

I've taken this off their most recent presentation. As you can see, undevalued compared to peers, but maybe for a reason. Grade is the issue I feel, along with gold recovery. Stip ratio is very low however, half of many others.

KMN need SNN to start picking up a bit.

SNN still tanking on the TSX. I am at a loss to why it's been punished when it has such a project going into development. Or, perhaps it's not going into development. Perhaps the SS being conducted determines that the grade is too low and metallergical studies are crap.

The failure of KMN at 30 c major resistance is bad darts and is telling me something, although it is still making higher lows and highs. So far.

From left field a potential reverse H&S forming up. Left field...

 

[Sean K]

The failure of KMN at 30 c major resistance is bad darts and is telling me something, although it is still making higher lows and highs. So far.

From left field a potential reverse H&S forming up. Left field...

I'm out of this for the minute while the market goes pear shaped. Looks to be tracking sideways now, and not down and the suspect H&S could be in play. 30 major resistance.

Must be an ann out soon with the additional assays from Kalman. I'm still amazed at that copper intersection, but just holding off till the market settles. If it settles.

 

[Sean K]

Must be an ann out soon with the additional assays from Kalman. I'm still amazed at that copper intersection, but just holding off till the market settles. If it settles.

Their quarterly activity report should be out today that may give some clues to current drilling at Kalman.

Lots of assays due that surrounded that 34% copper intersection, and they were going to drill down dip from that intersection immediately (7 Jul) to see if it extends. If it does, could be a watershed for the project.

As I said above though, I'm out for the minute waiting for confirmation of direction change, or stability anyway.

 

[Sean K]

Their quarterly activity report should be out today that may give some clues to current drilling at Kalman.

Lots of assays due that surrounded that 34% copper intersection, and they were going to drill down dip from that intersection immediately (7 Jul) to see if it extends. If it does, could be a watershed for the project.

As I said above though, I'm out for the minute waiting for confirmation of direction change, or stability anyway.

Well, not surprisingly, they have failed to get any new assays out, that were drilled ages ago. Yes, the labs are busy, blah blah blah.... Nothing new in the quarterly.

 

[Sean K]

They still haven't got those assays out! The lab must receive their samples and see 'Kings' written on them, and automatically put them to the back of the pile. They would have to be the slowest at getting any assays out on the entire ASX, and TSX!

Back down to it's long term bottom, and I have to have a nother look at them for a trade.

They are specifically drilling under that 34% Cu intersection to see if it continues. If it does, then could be a nice bounce. If not, well, can it go much lower? I suppose in this market aything's possible.

So, with the other assays due, extention of that intersection being drilled and resource upgrade imminent, I might put some on 5 red....

 

[Sean K]

They are specifically drilling under that 34% Cu intersection to see if it continues.

Well, they haven't managed to get any other results out except for the entire drill hole that hit the 34% Cu intersection somewhere down near the core.

Good hole whatever the case.

I'm sure the market in this environment will shrug.


Kalman Drillhole K-106A Significant Intersection

The Directors are pleased to announce the complete results for drillhole K-106A that includes the highly significant massive chalcopyrite intersection previously announced on 4 July 2008.

Highlights

K-106A 232m @ 1.33% Cu, 0.50g/t Au, 0.06% MoS2 from 548m
including 7.65m @ 23.4% Cu, 0.51g/t Au, 20g/t Ag from 581.65m
including 51m @ 1.07% Cu, 0.69g/t Au, 0.25% MoS2 from 667m
including 59m @ 1.11% Cu, 1.24g/t Au from 718m


232m @ 1.33% Cu, 0.50g/t Au, 0.06% MoS2

Haven't the time to put that into au equiv for comprehension but it looks pretty decent.

 

[doogie_goes_off]

For those without KMN on your list you missed an upgrade in resource at Kalman (Mt Isa). The gold content is ... yawn, but the Molybdenum component is seriously impressive. Even at a ten year average price ($35k/t), the open cuttable Moly alone is worth $1 billion and Re is about half that but not sure of supply/demand constraints. Copper grades are OK and compliment the moly pretty bloody well. Once they have some metallurgy I think this one wil run, it's a buy and put in the bottom draw job for me whilst the market takes a dive.

 

[shag]

kennas
do u think kings can survive in this monetary environent?
like will a lot of these smaller ompanies have a rights issue to gain cash?(hnr are doing one soon-a fat profits pick).
hell you think that if the field has some near 50pc copper then it should be a big resource.
i like how aus has so many good mineral prospects, unlike new zealand where there are very few onland. nz has the southern basin tho which could be one of the last large energy finds in the world.

 

[Sean K]

A lot of explorers/developers may fail shag, or turn into dot coms, or biotechs....

It's hard to tell how much further the financial crisis has to run, and how much demand is going to slow (stop) for resouces.

SdG is pretty advanced, open pit, low strip ratio, Mexico, so opex shouldn't be too much to handle.

Kalman on the other hand might be initially open pit to get to the close to surface Moly and Re, but looks like it'll have to be underground. The current intersections they're promoting are 6-700m depth. They'll have to improve the grades I think for it to be economic. Just a pluck though...

A while ago I threw up a chart with this H&S identified and said 'impossible'.

I also called a bottom at 17c I think..

One fugly chart here, like most of the sector I suppose.

At 12c I'm tempted to take a punt and dirty the fingers, but who's to know in this environment. I'm feeling much more content with cash in the bank at the moment...

 

[Sean K]

Ok with Cu @ 8250 tn, Au @ $880 oz, Ag @ $17, current IGV of San Anton:

Cu = $5,395,500,000
Au = $3,960,000,000
Ag = $3,434,000,000

Total = $12,789,500,000 IGV

Current MC about $80m

Wonder how much they will be able to produce and at what costs to make this take shape.

Now $10b ish IGV at SdG with Kalman looming.

At 12c I'm tempted to take a punt and dirty the fingers, but who's to know in this environment. I'm feeling much more content with cash in the bank at the moment...

Cripes! Now trading at 10c.

400m on issue at .10: MC down to $40m...

With IGV of $10b ....

They went through $4m last quarter and had $4.6m left in the bank so raising on the cards. In this environment, with sp hammered, eeeeek!

Couldn't imagine a takeover coming when the likes of OZL are sitting there saying eat me.

 

[Reealjrd]

Seeing the volume of shares on friday it seems as on Monday the market will be down. But cannot say what issues come in the market and were it can take it. But it seems as the Monday market will be down.