LML - Lincoln Minerals

[mick2006]

I don't know whether it was good timing or not about an hour before the trading halt I grabbed 200,000 shares in LML.

I really liked the tennements they had managed to accumulated in the lead up to the listing on the ASX.

They have recently commenced drilling on their iron ore/uranium/zinc tennements with prime locations across SA.

I was really impressed by the location of their iron ore tennements right in between TRF and CXM which both have good iron ore deposits.

The focus for the iron ore drilling is eight hematite DSO targets, which as seen by the recent focus on iron ore has the potential to easily multiply the shareprice even if they hit the smallest amount of hematite iron ore.

As to the trading halt I find it interesting that a recently listing company with plenty of cash (around $6.5 million) would be actively seeking extra funds.

I get the feeling that the fact they are in discussions with 3 interested parties that they are likely to announce a significant JV with a large exploration budget. All that remains to be seen is whether it is their iron ore or uranium or zinc/lead tennements that are being fought over.

ZFX has already got a JV with TRF in the region it maybe possible they are one of the parties.

Also we know the Chinese want to get their hands on anything iron ore/uranium so maybe it might be them. Representatives from Baotou Iron & Steel have been visiting CXM over the last couple of weeks maybe its possible they have been casting their eye of LML.(thanks surfingman)

Thirdly TRF may want to be involved in the Gum Flat iron ore tennements as a continuation to their own iron ore projects.

All this is just speculation but I get the feeling LML has a couple of large companies wanting in and judging by the price action today news may have leaked, causing them to call a trading halt.

Would be interested to hear peoples thoughts on the wording of the trading halt announcement from LML!!

 

[Mousie]

Just as an aside to the opening intro on LML-they are looking for just about everything but recent drilling commenced at its Iron ore prospect and also its U prospect.The U prospect is in the same area as Olympic Dam-apologies but cant remeber what the Iron prospect is near to.Presume that news is related to hopefully one of its bigger neighbours.Anyone else have any info or speculation on who might be involved

The iron prospect is near Wilcherry Hill of IFE and CXM's Wilgerup.

Pure speculation as you say alan but much as I might like to see a three-way merger between all of them, to say that will be stretching things a bit too thin LOL! CXM and IFE are busy enough as they are on their own projects.

CXM has Baotou Iron & Steel and Shenyang Orient Iron & Steel signed MOUs to possibly invest, but I think it's still subject to due diligence. Given the proximity to LML's I'd think these are the main Chinese suspects but I'd personally like to see a bit more in terms of drilling results before anyone else gets to take a stake on the cheap. Then again if the shares issued are at a reasonably high price at this stage of the game it should set a floor on LML shares. I'm not holding my breath on that coming true though. I just hope they don't dilute LML's total outstanding shares too much. Fingers crossed on the business acumen of the LML board in these days; not much anyone can say anymore on this...

 

[alankew]

Mick think you could be on to something with the Chinese conection.There are certainly a few oriental names in the top 20 but none own really significant quantities but think from memory there was talk of Chinese involvement.Couple of the top 20 have significantly increased their stakes from 5% or so to 25%-companies are South Cove Ltd and Lodge Ltd-both share the same address.I also thought it starnge that they were getting an injection of money so soon after listing but would think this has to be a positive as in normal circumstances us shareholders would be up in arms.Another recent IPO that YT(bless him)put me onto was MRU and they did a placement and it did the SP no harm at all,as you say it put a floor on it.Fingers crossed fellas

 

[mick2006]

well it looks like LML have signed a JV with an Indian Company (Mineral Enterprises Limited) to help fund the exploration of their Gum Flat Iron Ore tennements.

With 8 drill ready hematite iron ore targets and plenty of funding available this is one to watch going forward.

Interesting to note that MEL have taken a stake in LML at a price of 30c a share which is a significant premium to the last closing price.

Once investors realise the significance of the deal it is likely to head forward and hopefully find a base above the 30c stake taken by MEL.

 

[mick2006]

Just goes to show how timing plays a big part in the stockmarket, if LML had released their news in regards the Gum Flat Iron Ore JV early last week we would have seen the shares surge higher on the news, instead with the current sharemarket woes the announcement barely even rates a mention.

This is one well worth keeping an eye on once the market settles down, it is about to commence a large scale iron ore/uranium drilling campaign in SA with some very exciting targets.

Below is a link to the media release in regards the Iron Ore JV

http://www.asx.com.au/asxpdf/20070801/pdf/313rs6dpcnz50y.pdf

 

[kevin eleven]

Interesting from pg11 of annual report re Gum Flat drilling.

83 aircore and slimhole RC holes were drilled for a total of 4418m. Massive hematite-geothite rock or hematite BIF was intersected at four of the targets, H3, H4, H5 and H6. No assays area available yet.

Anyone have any thoughts on this?

 

[mick2006]

looks like the cats out of the bag, couldn't believe it last night when I was reading the annual report, LML have confirmed they have discovered 4 seperate zones of visible hematite iron ore (confirmed by drill cores, just awaiting assay results to announce to the market)

unlike IRM and GNL which have surged recently due to iron ore rock chip samples, LML have confirmed hematite iron ore by way of a substantial drilling compaign.

below is a piece taken from the annual report yesterday see page 11

Six hematite targets (H2 to H7) were identified
for aircore and/or shallow slim-hole RC drilling
which began in August 2007 following an
Aboriginal heritage survey. 83 aircore and slimhole
RC holes were drilled for a total of 4,418m.
Massive hematite-goethite rock or hematite BIF
was intersected at four of the targets, H3, H4, H5
and H6. No assays are available yet.


Compare the drilling locations to the map on page 11, in particular pay attention too locations H3 and H6 they are at the base of a major magnetic fault zone.

Also of importance is the strike length of the Gum Flat tennement of over 35km with the possibility of several major iron ore discoveries.

Also very important is the location of the Gum Flat tennement close to rail/port infrastructure and in a location with historic hematite iron ore production of 200 million tonnes.

Given the current market reaction to iron ore results the upcoming news from LML is sure to send the market wild, I couldn't believe what I was reading in the annual report, hitting 4 different hematite iron ore locations in the one drilling campaign, remember this is not rock chip sampling this is drilling.

Remember with the iron ore sector running white hot a couple of 60% FE hits may send this one wild.

Below is links for the annual report and a recent boardroom radio interview.

http://www.asx.com.au/asxpdf/20071009/pdf/3150tdmnprrjd9.pdf

http://www.brr.com.au/LML

 

[ta2693]

looks like the cats out of the bag, couldn't believe it last night when I was reading the annual report, LML have confirmed they have discovered 4 seperate zones of visible hematite iron ore (confirmed by drill cores, just awaiting assay results to announce to the market)

unlike IRM and GNL which have surged recently due to iron ore rock chip samples, LML have confirmed hematite iron ore by way of a substantial drilling compaign.

below is a piece taken from the annual report yesterday see page 11

Six hematite targets (H2 to H7) were identified
for aircore and/or shallow slim-hole RC drilling
which began in August 2007 following an
Aboriginal heritage survey. 83 aircore and slimhole
RC holes were drilled for a total of 4,418m.
Massive hematite-goethite rock or hematite BIF
was intersected at four of the targets, H3, H4, H5
and H6. No assays are available yet.


Compare the drilling locations to the map on page 11, in particular pay attention too locations H3 and H6 they are at the base of a major magnetic fault zone.

Also of importance is the strike length of the Gum Flat tennement of over 35km with the possibility of several major iron ore discoveries.

Also very important is the location of the Gum Flat tennement close to rail/port infrastructure and in a location with historic hematite iron ore production of 200 million tonnes.

Given the current market reaction to iron ore results the upcoming news from LML is sure to send the market wild, I couldn't believe what I was reading in the annual report, hitting 4 different hematite iron ore locations in the one drilling campaign, remember this is not rock chip sampling this is drilling.

Remember with the iron ore sector running white hot a couple of 60% FE hits may send this one wild.

Below is links for the annual report and a recent boardroom radio interview.

http://www.asx.com.au/asxpdf/20071009/pdf/3150tdmnprrjd9.pdf

http://www.brr.com.au/LML

I can not agree with you more. The trading behavior tells me professional traders are accumulating it. I think it is going to have a run at close.

 

[mick2006]

Got to love a company that gives you all the info you need without stating the obvious.

Looks like the sellers were about to run out completely.

LML has the potential to run as hard or even harder than IRM depending on results, but it is encouraging that the hematite iron ore has been confirmed by way of visual results from the drill cores, so we know its there the only unknown is the grades.

And taking a line through IRM and GNL if we get some 60% FE hits it will run and run hard.

 

[Spar]

Seems to have hit the intra-day high and on its way down now. Who knows what tomorrow brings.

When are the assay results expected to be released?

 

[mick2006]

They started drilling on the 13th of August so some 8 weeks ago, so I would expect to hear something in the next week or 2 at the outside.

Just wait for the wider investment community to pick up on the fact they have hit 4 zones of hematite iron ore with around 50-60 holes drilled into those 4 combined zones surely the chances must be good of getting some 60% FE hits and if they have done that it will likely run hard like IRM.

Alot of traders wait for the confirmation before buying in, where by that time the smart money has already been buying, also important to point out their major JV partner from India to a stake at 30c so obviously they are aware of the potential.

 

[mick2006]

the company just issued a response to the asx price query, basically stating what we knew was contained in the annual report about the discovery of 4 hematite iron ore zones, but also more importantly stated they had begun to receive the assay results and would be in a position to release a statement within a week.

then this is where it gets most interesting the fact they stated that no director/company member had been buying shares, what this leads me to believe they have some bumper iron ore results to announce, and they were covering their own **** against any ASX action due to the increase in shareprice and volume today.

wouldn't surprise to see LML surge again in the morning we now know the results are due within a week and there is also the chance the results are going to be exceptional judging by the company's response to the price query.

 

[greggy]

They started drilling on the 13th of August so some 8 weeks ago, so I would expect to hear something in the next week or 2 at the outside.

Just wait for the wider investment community to pick up on the fact they have hit 4 zones of hematite iron ore with around 50-60 holes drilled into those 4 combined zones surely the chances must be good of getting some 60% FE hits and if they have done that it will likely run hard like IRM.

Alot of traders wait for the confirmation before buying in, where by that time the smart money has already been buying, also important to point out their major JV partner from India to a stake at 30c so obviously they are aware of the potential.

THe Indian JV partners at Gums Flat are very keen indeed having taken up shares at 30c each. Its amazing how IRM ran so hard on the basis of rock chip sample results yet its the drilling results that matter. Should the results be encouraging it will interesting to see the reaction on LML's share price. Hematite iron ore is generally much better than magnetite. I mentioned this stock (as well as PSP) on the IRM thread yesterday as one of the few overlooked stocks left which has iron ore exposure.
Today strong performance reflects bullish buying by traders. I hold neither LML nor PSP at present.
Good work once again Mick.
DYOR

 

[Bushman]

Cheers for the updates Mick.

I saw that the 52 week high is at 42c so thought it was worth chasing today given its hematite and drill results are not too far away (I noticed its a week away as well). I have actually sold my POL shares to buy these as I believe the short term potential is better. Will jump into POL again later when the drilling campaign bears fruit or when the Lion Group announces an off-set agreement. Will see if this was a sensible decision (if there is such a thing when chasing speccie's) in a couple weeks time. Go with the momentum.

I'm with you Mick. 60% Fe drill results should see this fly. However, currently there is nothing out there that suggests the grades will be that high at the moment. Or nothing that I've seen anyway. Please correct me if I am wrong as I am fairly new to LML.

(PS: glad PSP is rating a mention again. I've hung on to it throughout the recent correction based on the Fe potential).

 

[mick2006]

I not 100% sure but I think hematite iron ore grades are 55% FE plus, so if they have discovered 4 hematite zones hopefully somewhere they will get up to the 60% mark.

also they were targeting DSO so hopefully they have found it which means 60% plus.

either way it will be an exciting week for LML leading up to the release of the results, I missed out on IRM but I definately won't miss out on LML.

 

[krisbarry]

I had a look at LML yesterday and I like the location. Very close to major rail and port infrastructure.

This could really be quite the stock if the drill results come back as impressive.

The ASX queried the stock yesterday for its hard run of late, but this will not stop people buying in with results due out within the week.

Its a watchlist stock for sure

 

[mick2006]

looks like the increased profile of LML is on show again today, with some good volume going through again already.

I still believe that it is heading higher before the iron ore assay results are released within a week.

I would be interested to hear the thoughts from anyone who has read the asx price query response from last night, I just get the feeling by the way the company distanced itself from the increase in volume/shareprice that good news is on the way, they were infact trying to avoid attention from the ASX if the stock ran further after the drill results were released.

 

[Mousie]

Hey mick,

Little to add really, my LML (and LMLO) has not been for sale at any price under 30c thanks to MEL's take-up and am looking for a significant premium above that for me to even consider selling.

Had a fair go at available heads at sub 16-17c before and after the Aug correction and am waiting it out

Natural for management to distance themselves from improper conduct while hinting at very probable release of positive results. Now is the time to see if the results justify the trading prior to its release.

 

[krisbarry]

What they are really saying in the ASX query is that no directors nor employees traded any shares BUT....what they forgot to mention was they told Sally the receptonist, Peter the water boy, and Mike the air-conditioner repair man.

Those people told their mates and so on and so forth, its so obvious that insider trading takes place...and this is yet another fine example.

Great... they announced partial drill results are back from the lab. I assume by the share price increase and volume, that some conclusion can be made by these partical results, but of course more denial from the company.

There is only so long that you can deny good drill results

 

[mayk]

Well I picked some stocks at today's lowest price. I am hopping that this stock is a runner . Seem to have good potential.