KOR - Korab Resources

[Buckfont]

24/2/10 Trading halt

25/2/10 Suspension from official quotation re ann. re maiden JORC code compliant mineral resource statement for Bobrikovo gold/silver project in the Ukraine.

Closing price $0.35c

Not sure which way this is heading, but with the assets KOR has the potential is there. See last posts.

Feel like I`m in on the desert island here. Any other castaways around? Otherwise I`ll stop posting.

 

[Buckfont]

24/2/10 Trading halt

25/2/10 Suspension from official quotation re ann. re maiden JORC code compliant mineral resource statement for Bobrikovo gold/silver project in the Ukraine.

Closing price $0.35c

Not sure which way this is heading, but with the assets KOR has the potential is there. See last posts.

Feel like I`m in on the desert island here. Any other castaways around? Otherwise I`ll stop posting.

New ann after temporary suspension.

Maiden JORC code compliant AU reserves at Bobrikovo of 960,000oz, with potential for further substantial mineralisation.

Mining to commence March 2010 to commence production Q2 2011.

 

[Buckfont]

Peter Switzer has KOR on his radar along with ADI. Both have had a ripper of a day. KOR up 25%, ADI up 46%.

New ann from KOR today :

http://www.aspectfinancial.com.au/d...Jyb3JwYWdlcy9wZGZkZWxheWVkLmpzcA==&popup=true

 

[packapoo]

Somewhere along the way there seems to have been a rather large hiccup in the share price. Any word on what went wrong?
I used to be in this security but seemed a little too volatile so got out. Recently looked to be on the up and up then fell over.

 

[BrightGreenGlow]

They have split KOR up into 3 different companies. KOR, and 2 gold spin-off. Both are meant to be worth over 20c when they are floated in the coming months. So in reality KOR is still worth .15c, +20c+, +20c+ = 55c+++

 

[Buckfont]

They have split KOR up into 3 different companies. KOR, and 2 gold spin-off. Both are meant to be worth over 20c when they are floated in the coming months. So in reality KOR is still worth .15c, +20c+, +20c+ = 55c+++

Jk that depends if the IPO opening price can sustain at the 20c level as many IPO`s have fallen below their opening price.

I got out of KOR late June on 34cps profit. Nice little earner for me. Might revisit if it gets to 10-12c and Melrose and Lugansk at a lower IPO price.

Will see how the gold price is but Im more than happy with the outlook for others as in IGR, RRL, and PRU.

 

[Trevor Perth]

Looks like the Rum Jungle project continues to hit a sweet spot!!
Up another 25% already today

 

[Sean K]

Looks like the Rum Jungle project continues to hit a sweet spot!!
Up another 25% already today

I haven't read their report on the rare earth potential at RJ yet, but the market action looks like hot air to me. Make the most of it if you're trading, watch for the inevitable sell off.

 

[Trevor Perth]

Thanks Kennas, good advice. I'm just watching at present, but REE are the flavour at present.

 

[flee]

Looks like all the hype is gone; even after another announcement regarding nickel sulphides, it pulled back from 50c to 35c.

Was good while it lasted.

 

[condog]

FOR months now Pure Speculation has been warning that rare earths is just the latest bubble - and, eventually, investors will be hurt.
Now everyone’s jumping on our bandwagon. Our lone voice has been joined now by newspapers and newsletters in North America and London.

This from the Globe & Mail in Toronto: “Although rare earth prices could stay high for a while (mines do not open overnight), new digging and new alternatives are likely to put an expiration date on this bull market.”

And this appeared in London’s Financial Times: “Fears about Chinese supplies of vital rare earth elements have sent the shares of small mining companies soaring, a surge that executives and analysts warn is turning into a bubble.” An index of rare earth company shares produced by Kaiser Bottom-Fish Online, a research service, has risen 12-fold since the end of 2008, and 35 per cent in the past month. The FT noted that “six obscure junior miners, based in the US, Canada and Australia, now have a combined market capitalisation of close to $US7 billion, even though none of them yet mine any rare earths, yet the total value of rare earths traded in a year totals about $US2bn“.

Start of sidebar. Skip to end of sidebar.
.End of sidebar. Return to start of sidebar.
And now let’s take a local example. At the beginning of last week, Pure Speculation reported thus:

“ANOTHER rare earths mania alert! Shares in Korab Resources closed at 15c on Thursday but were up by 105 per cent in the first five minutes of trade the next morning after Korab reported it had discovered rare earths mineralisation at Rum Jungle in the Northern Territory. However, there was no detail about the composition of these rare earths elements but, hey, who worries about that sort of thing anyway? Certainly not the punters as they leapt into KOR, the stock ending the day up 86.7 per cent on high turnover. If it's rare earths, it must be a winner, right?”

Our wonderment has now been followed by Peter Strachan in his latest weekly bulletin from StockAnalysis. He doesn’t hold back.

“Over the past couple of years, Korab has variously portrayed itself as a gold company, phosphate, uranium, base metals and cobalt (company), more recently as a rare earths company! Whew, how does this company keep up with itself? … Gee, it must be hard to make discoveries like this without doing a bit of drilling or even soil sampling”. There’s plenty more, but we’ll let his subscribers enjoy that.

Strachan also comments on Korab’s Monday announcement. That was the one where the very highest nickel grade from a 102m intersection was just 0.18 per cent nickel and the lowest was 0.01 per cent - but the junior nevertheless saw fit to suggest similarities to the huge Voisey’s Bay nickel deposit in Canada. We think the term “drawing a long bow” probably fits this one.

http://www.theaustralian.com.au/bus...ad-it-here-first/story-e6frg9ex-1225944148371

 

[Hal2000]

I took a very good look at this Co (KOR) over the IPO's it had on issue.
Now past the 4th Sup, looks like NO HOPE IN HELL of raising cash, not much in the bank AT ALL from the markets (Ok, I exagerate, perhaps a 3% chance).
Probably TECHNICALLY INSOLVENT pending a loan from god knows who.
Looks like the company may not be able to maintain its self after the next time the tea lady stocks up on dunny paper and tea bags and milk.
Now at 15 cents (god only knows why).
Kor looks in dire straights.
YOU would have to be nuts to hold right now
Now in a Trading Halt??????????
Good news or bad news??????????

 

[Hal2000]

Re: Korab Resources.....KOR.....

Cant help but think your post is a bit of a spruik for KOR...but anyway...I was going to buy this stock in the float but decided against it when the prospectus was extended. I can't believe how the stock has traded since listing. I'm definitely keeping an eye on it

KOR is in deep brown
Apparently KOR shares are about to be severely diluted by about 100,000,000 as a consequence of the failure of the Melrose and Lugank IPO's.
What's worse is that the company is cash strapped, is a year ot two behind schedule, and is currently going absolutely no place in particular.
For all the inflated embellished nonsense spruiking and ramping of shares this company has engaged in over the last 3 years she's a right proper dud.

 

[Hal2000]

This comany just announced "extreemly encouraging high grade" results from its drilling at its Melrose Project.
Hole DD001 was pretty much the same, nothing theresave for another anomolous assay at 32.7-34.4 meters @13.05 g/t.
And that folks, is that.
WHAT UTTER BULL****!
When I read the other results it was all appalling low grade, in fact, "O" grade.
Totally uneconomic in anyones language save for two tiny insignificant intersections.
WTF, total crap!!!!
Seems like this company is total BS.
How about the Trade Practices Act?
Is this some kind of con?

 

[springhill]

SPECTACULAR COPPER RESULTS FROM ASHBURTON DOWNS

● Significant new copper complex in the Ashburton Basin south of Paraburdoo comprising North Mount Elephant, Green Elephant, East Elephant and Mount Elephant
● Green Elephant copper anomaly covers two square kilometers (2,000,000 square meters) with some 970,000 square meters of visible copper mineralisation
O Multiple assays grading 5% to 20% copper
O Four trenches of over 10m length each averaging greater than 5% copper
● Up to 45% (450,000 ppm) copper assays in rock chip samples at Mount Elephant
● EM surveys show 2.5 km long conductor coinciding with high grade copper assays

Whilst previous exploration was very promising, the relative remoteness of the Ashburton Downs project area, coupled with the lack of modern exploration tools such as helicopter borne VTEM surveys and mobile metal ions sampling (MMI) to assist targeting, led to previous explorers failing to follow through on their prospective results with significant drilling programs.
Korab intends to follow-up with an MMI program accompanied by helicopter electromagnetic surveys designed to delineate discrete drilling targets, followed by a preliminary drilling program.
Initial work to facilitate this program has already been completed during recent site visits, with additional field work planned to commence next week. This drill hole targeting program is expected to take approximately three months to complete, with results expected in 3Q 2012. Timing will, to a certain extent, be weather dependent, with parts of the area subject to occasional flooding.

If the potential resource is hard to get to, imagine how hard it will be to get out!
Add to that flooding, I find it hard to see this ever getting off the ground.
Complex and expensive challenges.

The management hasn't changed in KOR at this point.
Can't argue there is copper there, but then again I guess you can trench and rock chip in the areas you want to maximise results.
Will be worth watching to see what comes of the eventual drilling campaign, even if it's just to see what's there.

 

[springhill]

HIGH GRADE GOLD IN FINAL ASSAYS FROM MELROSE PROJECT

● Encouraging results from final batch of half core assays from Melrose Project
● New intercepts include 7.16 g/t gold over 1m at end of hole from 119m and 3.16 g/t gold over 1m from 112m
● Metallurgical and leach testing continues

 

[Hal2000]

Management designed the spin-off in a very smart way, trying to get a ARU style jump in the share price - and its working.

Thats gold no record date for the entitlement - means KOR will be stronger for longer.

Korab has turned out to be a real FIZZER.

ALL SPRUIK AND NO IDENTIFIABLE ACTION.

 

[springhill]

Korab has turned out to be a real FIZZER.

ALL SPRUIK AND NO IDENTIFIABLE ACTION.

That is all a matter of perspective. If someone had a piece of the 116% rise in the chart I am sure they are more than happy with KOR performance recently.
Chart software is lagging so does not show the retrace back to 9.2c.

123m shares, 44m options and up to $33m incoming subject to conditions being met. Can't think of any specs off the top of my head with that set up, IF it pans out that way.

High risk, but a slice of KOR at current SP could pay nicely if this scenario occurs.

 

[skc]

Here's an example of what KOR did to its shareholders in the past.

http://www.asx.com.au/asxpdf/20120319/pdf/4253dbrmf7hsqt.pdf

A blatant lie then an attempt to change history. Trust management at your own peril.

A quick google of the supposed acquirer showed that it's a Zimbabwe entity with questionable history/ethics.

And they did a placement today to un-named gold fund.

Would not touch it with a 10ft pole, and still can't believe ASX let them get away with this kind of BS.

 

[Buckfont]

Haven`t had much to do with KOR for quite awhile, but this article quoting David Baker, from Baker Steel CM, may put a rocket under KOR. It is in a trading halt till Tues pending an an ann. The management have been far from transparent in the past so it`ll be interesting to see what they have up their sleeve.

To quote from the Age / SMH....

David Baker, a co-founder of London-based Baker Steel Capital Managers, is responsible for investing more than $1.2 billion in gold mining companies, so you would be surprised to hear that one of his favourites has a market cap of only $11 million.

He cites little-known ASX-listed Korab Resources as one of his favourites. Sure, he likes the fact that the company is sitting on a 2 million-ounce gold resource in the middle of the Ukraine, which is “at a decent grade, which could be mined cheaply”. He also likes that it has assets that it is trying to sell for $15 million.

But what really impresses Baker is that this month the company said that once it becomes a gold producer, in addition to “dollar” based reporting it will report its production results in terms of ounces produced, and net ounces retained after cost of production.

Korab goes further than this and says it will give shareholders the option of receiving their dividend in gold, which is in many ways equivalent to delivering investors a royalty.
Advertisement

This is music to the ears of David Baker: “If you buy gold shares, the miner goes to a lot of effort to dig it up and convert it to gold, which is what the ETF holders want!

“It gives investors more clarity and makes mining companies realise that their focus should be on maximising ounce returns to shareholders. If this happens maybe more people might buy them.”

ETFs, or exchange traded funds, whose movements are based on the price of gold, have been soaking up the vast majority of investors' dollars since they came onto the scene about 10 years ago.

Their popularity is based on investors looking for access to the yellow stuff, which is in increasing demand as the world becomes a more uncertain place, and currencies get debased by monetary policy.

Consequently, the gold miners are finding it harder than ever to attract funds. In the past five years the FTSE Gold Mines Index has declined about 17 per cent. In contrast the gold price, which the ETFs trade in line with, has more than doubled.

Gold miners are now cheaper than ever. Before the financial crisis, gold producers routinely traded at big premiums – on price earnings ratios of 20 to 30 times, versus the market average of 15 times. These days they trade on single-digit PEs.

Big money to be made if gold miners get it right

Should the gold price rise, these miners are more leveraged than ever. For example, if the gold price climbs 15 per cent from its current level of US$1635 (A$1578) to its record high in September 2011 of US$1920 an ounce, he estimates his fund could run up more than 50 per cent if this happens.

Gold companies are victims of the US dollar, which is a “flawed currency” according to Baker, because its value is being undermined by “quantitative easing” or QE, which has led to trillions of greenbacks entering the system.

Once upon a time (in the 20 years following the gold peak in 1980) it was sensible for a gold producer to forward sell its gold production to take advantage of the US currency's reserve status.

Now, it is clear that the US dollar is depreciating as the gold price rises so forward selling makes no sense. And Baker laments that gold companies “still feel compelled to sell the precious commodity immediately having been mined and then to convert their margin into depreciating dollars”.

While dollar costs are going up for miners, these same costs have stayed steady as a percentage of ounces mined. For example, the capital cost of a new gold mine is around 10 per cent of its gold reserves; while mining the gold costs around half that gold.

What is left for shareholders is 20 per cent of the gold in the mine, according to Baker's analysis. Of this, he says that companies should be paying out 5 per cent of their gold reserves in royalties.

The majority of gold companies may never adopt Baker's suggestions, but it is hard to disagree with this statement from a man who has more invested than most in the yellow stuff:

“To produce an ounce of gold takes a lot of blood, sweat, tears and hard work; to produce a dollar takes the pres of a button.”