KMN - Kings Minerals

[doogie_goes_off]

Haven't been following this one, but something to consider (from a geologists point of view) is that moly tends to form at the periphery of these systems so it would be foolish without drill results to assume the moly grades continue at depth, but the Cu-Au grades will probably increase and this is the critical part, because if you go deep you are talking underground mining and grades need to be high. The main thing is how much is open pittable and what are the grades? because this is where the cash flow comes from to make these things viable. Companies have a tendancy to drill deep to increase their inferred resources, but with this style of deposit it is a little irrelevant, the big potential is already proven by a couple of deep holes, they need to get significant indicated resources near surface. KNM looks like a winner, it may just mean I have to research this one properly. I hope all holders get 100Mt plus!

 

[doogie_goes_off]

I just did a real rough estimate on the moly intersections and came up with 33Mt so I'd say the other estimate was on the mark. The question will be how much extra tonnage is in the Cu-Au zone? 100% more?/200% more? Both seem feasible looking at the sections. It may well go close above 100Mt, but unless they can prove good grade continuity and project this down a bit below drilling, say 100-150m then i'd lean towards a figure 80-100Mt. Only time will tell and prove me wrong!

 

[Sean K]

I've been rambling on about how KMN is probably fairly valued on San Anton, and no value was placed on Kalman, but I may have got it wrong.

SNN (70% owned by Kings) have just released a presentation (thanks joooooles) which includes a breakdown of San Anton's value to SNN and MC to Ox Au Equiv comparisons.

As you can see by this, SNN looks to be pretty undervalued on this scale, and by association, Kings is as well.

WHY AM I PRESENTING THIS INFORMATION AND NOT KINGS?

 

[Sean K]

As expected - Placement. At 55 cents.

To who, no one knows. Even the company by the look of it.

As not expected, not on the back of a good ann.

Surprisingly, stock goes up a coupla %.



Where's my rights issue KMN?

 

[exgeo]

Is it that surprising that the stock goes up once it has money in the bank? Money isn't lying around for any fly-by-night outfit to pick up at the moment, post credit-crunch and so on. Now they have it, one source of uncertainty - future funding - is removed.

Perhaps the mystery buyers after casting an eye over the company decided that it looked so good that they should go to market and buy some more? The 55c issue price would tend to put in some support at that price. That often seems to be the case in my experience. Also they announced that they are bringing in another rig which will increase newsflow- another positive for this kind of stock as regular newsflow tends to keep people interested - so long as it's good news of course.

 

[Sean K]

Is it that surprising that the stock goes up once it has money in the bank? Money isn't lying around for any fly-by-night outfit to pick up at the moment, post credit-crunch and so on. Now they have it, one source of uncertainty - future funding - is removed.

I'm not sure if they have the money yet. Wouldn't they have said who the placement was with, or to who, etc...

The 55c issue price would tend to put in some support at that price. That often seems to be the case in my experience.

Yes, totally agree, and by the look of the chart 55 looks like just a little support.

Also they announced that they are bringing in another rig which will increase newsflow

Yes, good they're organising a diamond rig, but I'd wait till it's on the ground before getting excited. They've promised rigs before and nothing has come of it.


Chart wise, that floor at 55 is the bottom af a great descending triangle, will be nice to see it break out of the range to the upside. Please.? I live in hope.

 

[explod]

I'm not sure if they have the money yet. Wouldn't they have said who the placement was with, or to who, etc...

Yes, totally agree, and by the look of the chart 55 looks like just a little support.

Yes, good they're organising a diamond rig, but I'd wait till it's on the ground before getting excited. They've promised rigs before and nothing has come of it.


Chart wise, that floor at 55 is the bottom af a great descending triangle, will be nice to see it break out of the range to the upside. Please.? I live in hope.

Well I like it now so have gone in today. I believe the gold price will climb this week. The rhetoric last week on wall street held back a lot of the very bad reports. The truth will begin to be absorbed this week. But we will see.

Nice chart now:-

 

[Sean K]

Chart wise, that floor at 55 is the bottom af a great descending triangle, will be nice to see it break out of the range to the upside. Please.? I live in hope.

Looks promising, but I'm not going off the wagon till I see 70 positively broken. Then, I'll be backing up the CUB truck. LOL.

 

[explod]

Looks promising, but I'm not going off the wagon till I see 70 positively broken. Then, I'll be backing up the CUB truck. LOL.

You can order the truck, looks pretty broken to me. Should be blue skies now. Nice for Christmas in fact.

 

[Sean K]

You can order the truck, looks pretty broken to me. Should be blue skies now. Nice for Christmas in fact.

LOL.

I hate calling things in the middle of the day. Been made to look foolish too many times. I will put out a warning order however.

Some info I've stolen from HC (thanks jooooooles)

New mineral exploration company, Syndicated Metals Ltd, which controls a portfolio of assets including advanced base metal projects in the Mt Isa region of Queensland, is set to make its debut on the Australian Securities Exchange in mid-December under the Code: SMD after closing its IPO early and substantially oversubscribed.

Syndicated lodged a prospectus offering 24 million shares at 25 cents each to raise $6 million in early November 2007. On listing, Syndicated will have 57.35 million shares on issue with a market capitalisation of approximately $14.3 million at the IPO share issue price.

The centrepiece of Syndicated?s portfolio is the advanced Kalman South molybdenum-copper-gold prospect, located around 60km southeast of Mt Isa, which is currently being explored by Kings Minerals NL. Kings has the right to earn a 51% interest in Syndicated?s 100% owned EPM 13870, which contains the southern section of the advanced Kalman Project, by spending $4 million on exploration, and up to a 70% interest by completing a final feasibility study.

Kings has announced a series of positive results from its intensive drill programs at Kalman over the past twelve months and has indicated in its releases to the ASX that it intends to announce an initial mineral resource estimate for the Kalman Project before the end of 2007.

Syndicated has also attracted the attention of one of the world?s largest zinc producers, Korea Zinc Company Ltd, which has taken a strategic 10.5% shareholding in the company through its subsidiary, Sun Metals Corporation Pty Ltd. In addition, Syndicated has granted Sun Metals lead and zinc concentrate off-take rights for the company?s share of any production from its tenements in North Queensland. The final terms of this agreement are yet to be finalised.

Syndicated?s other interests in the Mt Isa region include the Mt Remarkable Project, located around 60km northeast of Mt Isa. This project, which comprises mostly contiguous tenements covering over 900sqkm, is prospective for copper, copper-gold and sediment hosted lead-zinc-silver style mineralisation and contains some outstanding targets including the Barbara, Mt Margaret and Mt Hutchinson prospects.

I'm digging up a map with the ELP for interest sake.

 

[Sean K]

I'm digging up a map with the ELP for interest sake.

It's the Pelican tenament. I was wondering who owned the other bit of it. They've had some good drill results in the past there, hopefully we get a few more Kalman type intercepts. Will be interesting to see how the listing goes.

 

[Sean K]

Nice last hour. A nice change for KMN holders after 6 months of downward slide. Looks comparitive to the jump in April so far. Would be happy if that follow through happened again.

 

[imaginator]

Kennas,

Does this breakout mean you are going in to buy?
Its 0.745 this morning, now 0.78, volume 85,000.

Now 0.8 over 100,000 volume traded. Its moving fast!

 

[Sean K]

Kennas,

Does this breakout mean you are going in to buy?
Its 0.745 this morning, now 0.78, volume 85,000

I've been buying it all the way from 55 to $1.00 and back to 55.

Bought a few on the close last night and more on the open today.

PS, someone selling 250K at 81 will be a bit of a wall, unless it's a ploy, but I don't normally go for those manipulation ramps...

 

[lazyfish]

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?

Hi Kennas, sorry, I don't really know how to estimate that . Though I think at 700m the strip ratio might be too high to go open pit, given the shape of the mineralized zone is pretty 'thin' along strike. But of course this depends on the grade and I could be very wrong

 

[Sean K]

Hi Kennas, sorry, I don't really know how to estimate that . Though I think at 700m the strip ratio might be too high to go open pit, given the shape of the mineralized zone is pretty 'thin' along strike. But of course this depends on the grade and I could be very wrong

No drama LF, it's a very hard one to guestimate with what we have really.

Other news, SNN are taking on the costs for the 07/08 program.

KMN have announced this as 'pleasing' news, but I'm not too sure about that.

Goldcorp choosing NOT to participate and reduce their interest is something other than 'pleasing' to me.

 

[refined silver]

Hi Kennas,

Bought some today after doing a fair bit of DD. I agree the news today could be read either way, would have to check out Goldcorp's finances, project line etc, to maybe if there was any reason for not participating.

Re the earlier comparisons with BSG. A couple of points are:

1. On a numbers basis the BSG/PJO.V was one of the highest valuations around and many questioned its value. However it seems the reason is the quality of the project. It will mine at 14moz/a Ag Eq at first and then 17moz Ag Eq, and after Au credits at a cost of 41c/oz Ag. In other words its very low cost, very high production volume and theerfore very good cash flow. When CDE were searching for take-overs, they basically found the PJO.V project was the best new Ag project in the world fullstop. SO they merged. Thats quite a compliment from one of the biggest Ag miners in the world to say your project is the best one in the world.

2. Grades were exceptional, some came out >10kg/t Ag and had to be re-assayed using a different technique. I remember reading overseas chat sites when these grades came out, and most people were saying, how ridiculous, another pump and dump, scam promotion etc, yet these were real.

3. BSG always had plenty of cash, it finished its Georgia gold mine and then sold it and got another $40m, so it was always well-funded, never needing to raise cash

4. The BSG project is 70%Ag, 30%Au, which is very appealing for PM investors. The KMN is 50%Au, 25%Ag, 25% Cu (at current prices) so significantly

5. The project is well advanced. BSG were doing the unprecented of actually constructing the mine while the feasibility study was still underway, so sure they were of its viability! It also has more exploration potential.

This is just a few reasons why so few people understood BSGs valuation (and still don't)

Having said that, I also like the look of KMN (thanks for your posts) and so have bought in. Time will tell!

 

[Sean K]

Hi Kennas,

............

Re the earlier comparisons with BSG. A couple of points are:

.............................

Yes agree with your comparisons here RF. Thanks. San Anton still looks undervalued on the surface on a general comparison, for whatever reason. Hopefully just because it's undervalued....


I'm not usually one to commentate on depth and stock manipulation but it always intrigues me when there are unusually large orders placed in the depth. A couple of interesting bids include the buy on top of the pile 289000@.78 and the sell a little down the list 250000@.81. Those bids are higher than the last years average turnover I think.

 

[Sean K]

First JORC for Kalman is due this week. They have been stating they have drilled the deposit 1000m x (up to) 600m depth, and I've been assuming that this will be the basis for the JORC. The rumour of a 60Mt @ 1% Cu equiv mentioned in the papers a few weeks ago means to me that they may not be using the entire depth to get that JORC. That's if the rumour was true. The 3rd diamond rig should be on site now drilling to 2000m, which could bring exciting results on the true depth of Kalman. One of the last drill holes finished with 6m @ 3.08% MoS2 open at depth assays awaited which is an incredible grade for Moly. The deposit looks to expand at depth so drilling below 600m could see the potential of the deposit expand markedly. Or not, of course.


From the 30 Nov placement ann:

Proceeds of these funds will be used to accelerate resource definition at the company’s exciting Kalman Project in the Mt Isa area. A third dual purpose RC/Diamond core drill rig capable of core drilling to 2000 metres depth will be on the tenement area early December this year.

The 3 rigs and possibly more subject to availability will also drill test the northern and southern as well as depth extensions at Kalman which currently has a drill tested strike length of 1000 metres and to a depth of up to 600 metres.

Many prospects have been identified, some are drill ready and others await receipt of rock chip assays from the lab. The first resource estimate for Kalman will be released before the third week of December this year.

 

[imaginator]

sheet! Whats happening to KMN. Its 0.7 now after they release more shares today.

TIme to sell and run???
Whats the price of the new shares they released???

First JORC for Kalman is due this week. They have been stating they have drilled the deposit 1000m x (up to) 600m depth, and I've been assuming that this will be the basis for the JORC. The rumour of a 60Mt @ 1% Cu equiv mentioned in the papers a few weeks ago means to me that they may not be using the entire depth to get that JORC. That's if the rumour was true. The 3rd diamond rig should be on site now drilling to 2000m, which could bring exciting results on the true depth of Kalman. One of the last drill holes finished with 6m @ 3.08% MoS2 open at depth assays awaited which is an incredible grade for Moly. The deposit looks to expand at depth so drilling below 600m could see the potential of the deposit expand markedly. Or not, of course.


From the 30 Nov placement ann: