KMN - Kings Minerals

[Sean K]

These are due from Kalman:

Due I say!

And I am freakin out about this H&S. Surely not possible?



Perhaps the rhenium is being swept under the carpet at the lab?

 

[jooooooles]

POG $780.00 US / ounce

Rhenium$4200.00 US / pound

There are 16 ounces in 1 pound

Rhenium = $262.00 US / ounce

Conversion factor: 3 grams Au = 1 gram Re

PPM (Parts per million) = grams / tonne

From this we can conclude the following value for Re grades as per the last announcement from Kalman...

Hole Dpth (m) Re (g/t) AuEq (g/t)
K-1 62 3.8 1.3
26 9.1 3.0

K-4 47 1.4 0.5

K-17 115 1.6 0.5
20 2.7 0.9
7 7.5 2.5

K-18A 119 1.3 0.4
15 3.9 1.3
24 3.7 1.2

K-19 329 3.4 1.1
48 16.1 5.4
24 0.1 0.0
81 4.4 1.5
5 32.2 10.7
27 7 2.3

K-20 17 0.1 0.0
4 4.4 1.5
7 0.3 0.1
73 6.5 2.2
2 17 5.7

K-21 3 0.2 0.1
9 2.2 0.7
5 4 1.3
21 3.8 1.3
54 0.2 0.1
16 0.7 0.2
4 0.6 0.2
4 0.2 0.1
8 1 0.3
10 0.1 0.0

K-23 12 3.4 1.1
3 7.5 2.5
211 1.6 0.5
2 18.8 6.3
4 6.4 2.1
2 11.3 3.8
3 7.3 2.4
9 15.4 5.1
21 0.6 0.2
13 2.2 0.7

K-29 52 1.4 0.5
21 3.4 1.1
3 13.2 4.4
6 0.2 0.1

K - 42 2 1.2 0.4
2 0.8 0.3
2 0.1 0.0

AuEq was worked out by divind Re by a factor of 3

Some of those are huge in my opinion considerng the Re down there is a bonus really...

Like 6 metres @ 3.0 g/t Au Eq,
329 metres @ 1.1 g/t Au Eq,
48 metres @ 5.4 g/t Au Eq,
5 metres @ 10.7 g/t Au Eq,
73 metres @ 2.2 g/t Au Eq,
2 metres @ 6.3 g/t Au Eq,
9 metres @ 5.1 g/t Au Eq

Also form the 1/4 - looks like a capital raising is on the cards. Cash in the bank is 2 million, projected cash burn is > 4 million for the next quarter? Where is the money going to come from?

Also looks like some big dumpers were out in force, down 10% ouch!

 

[jooooooles]

That post didn't quite come out properly. To work out how much the Re is worth divide it by 3 and that will give you an AuEq grams / tonne

 

[Sean K]

Also form the 1/4 - looks like a capital raising is on the cards. Cash in the bank is 2 million, projected cash burn is > 4 million for the next quarter? Where is the money going to come from?

They're probably out with their hats now. Probably going to issue shares around the 50c mark I'd guestimate which is ordinary. I'm sure they would have preferred to be raising money around the $1.00 mark, where the sp was a few months ago.

I'm not sure what the financial situation is for SNN. I thought they had only budgetted up to the end of Oct for San Anton....

Mt Isa is definately going to need some funds to take it forward.

The management team must be wondering what they're doing. KMN is back where it was a year ago, and they've taken BSG from $3.40 to $2.70, while POG and POS are running to all time highs.....

I have just San Anton rating them as a Oz Au to MC comparison of $56. Not many developers lower than that!

The thing that troubles me is that they keep on coming out with what sound like good results.

24 Oct:

Kalman Cross Sections Show Considerable Upside
On 19 October 2007, partial drillhole results were released for the Company’s exciting Kalman Prospect.
Subsequently, cross sections have been prepared for Sections 5400 and 5635 illustrated on the attached figures.

From the figures it should be noted that:

• On Section 5400 a relatively uniform width of MoS2 mineralisation remains open at depth, within a Cu ± Au zone:
- On this Section, assays are pending for visually mineralised core either side of the reported zone;
- Here, Cu and Au are both elevated in grade eg the last interval assayed in drillhole K-51 produced 20m @ 0.75% Cu and 1.48g/t Au;
- Assays are pending above and below the reported zone.

• On Section 5635 a broad zone of continuous mineralisation with a true width of over 100 metres extends at depth with assays pending for the lower parts of drillholes K-23A and K-46:
- As well as the MoS2 rich core, evidence of a Cu-Au elevated contribution is illustrated by the 30m @ 0.34% Cu and 0.44g/t Au and a 1m interval of 10g/t Au.

Then they came out with the Re ann that did zip....


They have now mentioned in a few anns that the Kalman strike they are drilling is 1000m x 700m and the widths seem to conservatively 100m, so the initial JORC should be about 175 Mt at xx grades.

I've done a quick run through 35 of their drill results to try and get an average grade of Cu, Mo, Re and it comes to something like:

0.46% Cu, 0.32% MoS2, 5.43% Re

Of course that doesn't take into consideration widths, so maybe that's pointless.

Even though I have been extremely disappointed with the sp performance and the tardiness of the company in advancing these 2 projects, I still see significant potential. Note the potential tonnage and grades above to the biggest Moly mine in the world, from one of Kings presentations:

•The Henderson Mine (Phelps Dodge) near Denver Colorado is arguably the richest Mo
mine known:
• reserves around 160 Mt @ 0.35% MoS2 (No other significant economic metals)
• mineralisation starts ~1,000m below surface
• ore zones generally 5 – 30 metres wide

My calcualtaions have Kalman at 175Mt at 0.32% MoS2 plus the other metals.....What the hell am I missing here??


On Cerro del Gallo, they have completed some expansion drilling around the deposit and the assays are pending. From the Qtly:

To date a total of 9 diamond core holes and 12 RC holes have been completed, with assay
results still pending.

Will be very interesting how much they can expand the 10.19m oz au equiv from this drilling program. There were 3 or 4 drill holes completed to the SW and one of them intersected native copper, so it could increase the resource base quite a bit.

 

[Sean K]

Beautiful downtrend here. Woof.

Support at 55 ish, and maybe we'll see a descending trangle breakout.

I'm clutching at straws.

 

[Sean K]

Another 'good' ann and the sp goes......no where.

These Mo grades really are world class. Compare to the Phelps Dodge grades mentioned above.

 

[Sean K]

Just out of interest, I've decided to compare MOL to KMN in terms of Moly potential.

Moly Mines are in the final stages of financing to push on to mine construction and development at Spinifex Ridge.

MOL have about 80m shares fully diluted @ $4.45 = $356m mc
They have 314Mt@.06 Mo for 194Kt contained Mo.
This is almost a final resource estimate...

By my rough calcs KMN (may) have:
370m shares @ .60 = $222m mc
They currently may have 175Mt@.32% Mo for 560Kt contained Mo. (by my pluck)

The deposit is open along strike and depth...

Then, then have 30% ish of 10.19m Oz Au equiv in Mexico going into development.

This is vexing me.

 

[lazyfish]

Hi Kennas,

I think 0.32% MoS2 is only around 0.192% Mo. Regardless if your calculation is correct, a world class deposit indeed.

 

[bvbfan]

I'm buying up Moly stocks but I'd like to see more drill results. One hole doesn't instill much confidence.

BTW MOL has about 270K tonnes of Moly and I think targetting about 11K tonnes per year of Moly production.

I was waiting for mid 50's to in. Have to wait and see if this correction happens soon

 

[Sean K]

Hi Kennas,

I think 0.32% MoS2 is only around 0.192% Mo. Regardless if your calculation is correct, a world class deposit indeed.

AZS announce a significant upgrade to their Moly prospect with the results below.

AZS goes up 10%.

Then check the first pass drill holes from KMN underneath.



The story of my life.

 

[Sean K]

To work out how much the Re is worth divide it by 3 and that will give you an AuEq grams / tonne

6 metres @ 3.0 g/t Au Eq,
329 metres @ 1.1 g/t Au Eq,
48 metres @ 5.4 g/t Au Eq,
5 metres @ 10.7 g/t Au Eq,
73 metres @ 2.2 g/t Au Eq,
2 metres @ 6.3 g/t Au Eq,
9 metres @ 5.1 g/t Au Eq

Joooles, what you have said here is correct by my understanding. At the current Re price, KMN have come through with the above Au equiv results, just on Re. I don't know any gold miners coming up with 329m @ 1.1 g/t. Maybe LGL at Lihir?

This does not include the Mo, Cu, U that is also contained throughout the deposit.

 

[jooooooles]

I'm buying up Moly stocks but I'd like to see more drill results. One hole doesn't instill much confidence.

One hole? Maybe you need to go and visit the announcements from the last 2 years of drilling at Kalman!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

 

[jooooooles]

I posted this on another forum - but what is todays announcement @ 3.08% MoS2 worth in AuEq? This is what I came up with.

3 % MoS2 strike is huge, its frickn monsterous. I have never seen a molly company yeild higher assay results than that. That is an absolute huge find and its still open at depth (assays pending)

Great find !!!

According to my calcualtions thats about AuEq 50 g/t - but do please check and confirm.

3.08% MoS2 = 1.85% Mo

Mo = US $ 33 / pound
Au = US $ 770 / ounce = US$12,300 pound

1 part Mo = 370 parts Au ($ value)

1.85% Mo = 18,500 ppm = 18500 g /t

18500 / 370 = 50

Therefore 6 metres @ 3.08% MoS2 = AuEq 50 grams / tonne!!!

 

[Sean K]

I posted this on another forum - but what is todays announcement @ 3.08% MoS2 worth in AuEq? This is what I came up with.

....

According to my calcualtions thats about AuEq 50 g/t - but do please check and confirm.

Yep but it was only a few meters:

Kalman Drilling – Partial Drillhole Intercept Update

The Company is pleased to announce that a series of assays has been received from ALS Townsville.

In summary, the results have provided the following downhole intercepts for the diamond drillholes.

K-53:
14m from 238m @ 0.96% Cu, 0.31g/t Au
9m from 252m @ 0.32% Cu, 0.46% MoS2
35m from 270m @ 0.46% Cu, 0.02% MoS2
K-57:
4m from 313m @ 0.81% MoS2
K-58:
42m from 260m @ 0.74% MoS2
6m from 291m @ 3.08% MoS2 (open at depth, awaiting assays)

They are still great Mo grades and as you say, and the company amplifies, open at depth. They have the mineralisation down to 700m now and there seems every chance this will be extended.

JORC before the end of the year too! Hope this isn't delayed....

sp, still languishing.

 

[jooooooles]

That's the same as 100 metres @ AuEq 3g / tonne! Excuse me!

 

[Sean K]

That's the same as 100 metres @ AuEq 3g / tonne! Excuse me!

That does sound good. Wonder if the market is ever going to wake up!!

What's your pluck for the initial JORC Joools?

I'm going for about 130Mt@2% Cu equiv.


A reminder of some of the early holes:

329m @ 0.46% Cu, 0.23% MoS2, 0.22g/t Au, 0.01% U3O8 for (2.51% Cu Eq)
73m @ 0.22% Cu, 0.43% MoS2, 0.13g/t Au, 0.09% U3O8 for (4.96% Cu Eq)
339m @ 0.54% Cu, 0.11% MoS2, 0.29g/t Au, 0.02% U3O8 for (1.79% Cu Eq)

kennas

 

[jooooooles]

The figures i've come up with tend to suggest that the deposit is easily over 100 MT. Grading who knows. I'd guess around the 3.5 % CuEq. Lot of gold credits, since gold is having a nice run atm this will boost the CuEq up. The Re will have a large impact too.

 

[tech/a]

Down 15%. Any ideas?

One trade (I think) at 14.22 of nearly 400K shares went through...That's a lot of dough for any small time investors/traders...

Since it broke $0.75 just a few days ago, it's just being smashed.



The facts haven't changed. This thing is sitting on a massive resource!

Just following and looking at some history.
Thought Id post this up in the hope that it may help some in the "Timing" of and the analysis of this current move.

The charts are from a year ago. When Kenna's posted that in quotes.The analysis can be performed on the chart now.

 

[lazyfish]

That does sound good. Wonder if the market is ever going to wake up!!

What's your pluck for the initial JORC Joools?

I'm going for about 130Mt@2% Cu equiv.


A reminder of some of the early holes:

329m @ 0.46% Cu, 0.23% MoS2, 0.22g/t Au, 0.01% U3O8 for (2.51% Cu Eq)
73m @ 0.22% Cu, 0.43% MoS2, 0.13g/t Au, 0.09% U3O8 for (4.96% Cu Eq)
339m @ 0.54% Cu, 0.11% MoS2, 0.29g/t Au, 0.02% U3O8 for (1.79% Cu Eq)

kennas

I am getting 39MT for just the Mo Mineralized zone. This is just the Mo Zone, and the Cu-Au zone is significantly larger, at least on section 5635.

My calculations based on the 2 available cross sections (excluding possible northern extensions)
Section 5635, cross sectional area for Mo Mineralized zone = 13061m2
Section 5400, cross sectional area for Mo Mineralized zone = 13386m2
Strike (without northern extensions) = 1093m.

Volume = 1093 * (13061 + 13386) / 2 = 14453285 m3, using density of 2.7, we get 39MT of Mo. The Au-Cu zone should be larger than the Mo zone, so I think it's unlikely that we will see below 100MT, unless they are using a very high cutoff. Possible northern extension should also add significant upside.

Please DYOR.

 

[Sean K]

I am getting 39MT for just the Mo Mineralized zone. This is just the Mo Zone, and the Cu-Au zone is significantly larger, at least on section 5635.

My calculations based on the 2 available cross sections (excluding possible northern extensions)
Section 5635, cross sectional area for Mo Mineralized zone = 13061m2
Section 5400, cross sectional area for Mo Mineralized zone = 13386m2
Strike (without northern extensions) = 1093m.

Volume = 1093 * (13061 + 13386) / 2 = 14453285 m3, using density of 2.7, we get 39MT of Mo. The Au-Cu zone should be larger than the Mo zone, so I think it's unlikely that we will see below 100MT, unless they are using a very high cutoff. Possible northern extension should also add significant upside.

Please DYOR.

What's the average grades of Mo you think we can apply for IGV lazyfish?

Yes, the Cu/Au halo is much much larger by the cross sections.

Any chance of you applying those magic forumlas to the cross sections to 700m?

Chart wise, just a little descending triangle formed to 55 long term support.

I am confounded to the lack of interest. Perhaps it's a turkey?