PNN - Power Minerals

[absolut-advance]

Its a goodie, IMO, rather volatile and great way to make $$ fast.

Their NICKEL Prospect which is PACE Funded is very good.
If they strike nickel could be a 20 Bagger.

Extract:
"PepinNini Minerals Limited announced that
laboratory tests on surface samples from its Becaroo Prospect in the
Curnamona Province had returned very high uranium grades ranging up to
2.1% U3O8 – the equivalent of 21 kilograms per tonne.

Uranium can be economic at grades as low as 0.03% depending on the extent and type of mineralisation with most of South Australia’s leading uranium projects averaging between 0.04% and 0.18%.

check out there website and read for yourself:

http://www.pepinnini.com.au/

 

[absolut-advance]

Re: PNN- PepinNini Minerals

great rise for PNN today looking forward, depth looking great could see a fast sprint tomorrow

 

[absolut-advance]

Re: PNN- PepinNini Minerals

up 18% + today hope some of you saw the positive gains, look forward to the weeks ahead, stops as always. Happy trading.

 

[GreatPig]

There seems to be some heavy accumulation of this stock going on at the moment.

On Friday, a large buy order of around 150,000 shares at 37 cents appeared before opening, with the day eventually closing down at 36 cents. This morning there's another 150,000 buy order at 37 cents (from one buyer). All other buy orders in the queue are less than $20K, down to 31 cents where there's a 100,000 buy order.

I'm guessing the two large buy orders at 37 cents are from the same buyer, but even if they're not, someone seems keen to hold a lot of stock at that price.

Cheers,
GP

 

[56gsa]

not much said for a while - is this the best value uranium stock?
mkt cap $12.5mJORC defined uranium resource of 6740 t which gives it an EV of less than $1

 

[shinobi346]

Do the states they're exploring allow mining for Uranium?

no unfortunately

 

[56gsa]

Still doubt I guess but the February Paterson report suggested NT and SA were most favourable - PNN's deposit is in Sth Aust.

Friday 31 March 2006
PEPINNINI SET TO MOVE QUICKLY ON URANIUM AFTER ALP POLICY CHANGE
PepinNini Minerals Limited (ASX Code ‘PNN’) could be the first new uranium
mine development after a change in Labor Party policy, Managing Director, Mr
Norman Kennedy said yesterday.
Speaking after addressing the 2006 Uranium Conference in Adelaide, Mr
Kennedy said the Company’s objective was to be in position to move quickly if
the ALP adopted a more flexible policy at its next national conference in April
2007.
“I believe the Labor Party policy will change next year to allow additional
mines and we want to be in a position at Crockers Well and Mt Victoria to
open a mine and produce uranium,” Mr Kennedy said.
“The Crocker Well-Mt Victoria project will not be a huge exercise but it
certainly will be a profitable exercise and a worthwhile development for South
Australia. We also have a lot of potential for expansion after the Company has
a core project underway.
“As long as the PepinNini has finished a bankable feasibility study, our
scoping indicated that it would take 15 months to complete all the required
permitting and statutory requirements to start production.
“Between now and the next ALP national conference we want to complete a
bankable feasibility study so that we know what the economics are and that
the project is ready to go.
“In that light, we are very encouraged by the support for a change in ALP
policy by Federal Shadow Resources Minister, Martin Ferguson, at the
conference today,” he said.
PepinNini’s Crocker Well-Mt Victoria project is located in the Curnamona
Province in SA’s north-east.

 

[shinobi346]

2 announcements and a massive jump in the price today. I wouldn't buy it for the uranium prospects for the reason I gave earlier but the other minerals look promising. Am holding here.

 

[tech/a]

In myself at 51c

 

[56gsa]

Support for this over last month moving from 26 to 42 cents

PNN would have to be one of the few uranium hopefuls with a feasibility study for a JORC resource? (although on the border of economic viability at current U prices)

 

[56gsa]

Aside from AGS, PNN is another bolter (10%) today from the U308 stable - only slightly higher than average volumes and not clear why... no announcement? They recently announced initial drilling results for nickel-copper but nothing major, and no new developments on U308 holdings... someones interested though.

 

[56gsa]

PNN continues to rise - up 3c today to close at 0.48, but again only slightly higher volume than average, and no announcements.

The recent qtrly report does mention they are looking at options for feasability study of Crocker Well uranium project - including more drilling of other areas as well as bringing inferred resource into measured category. But with only $1.4 m in the bank perhaps they are talking with potential backers?

any thoughts?

 

[56gsa]

I think this is slowly being re-rated. News could also be in the pipeline re JV or something.

With 49.5m shares (21m restricted), and a 6740t U JORC resource in Sth Aust with a completed BFS, this still only has an EV of $1.84. Most other U explorers with similar resources have EVs of $4 to $5 (VUL, SMM, NEL - and these are in less friendly U-mining states).

Even at $1 a share, PNNs EV is still only $3.

Will find resistance at these levels, all-time high is 69 cents so will need more volume to test those levels.

 

[56gsa]

trading halt - all will be revealed

thats was strange - comsec showed announcement from 10am but announcement wasn't on asx until 1025 so there was some volume this morning - does this always happen with trading halts?

 

[shinobi346]

I thought something was going to happen as the price was steadily rising over the past week. I wonder what the news could be.

 

[mick2006]

just announced a memorandum of understanding for the development of the Crocker Well and Mt Victoria Uranium deposits in South Australia with Sinosteel from China.

might be worth grabbing some and holding for a while

Anyone with any thoughts?

 

[56gsa]

IMO this would appear to be very significant - although market may be cautious given the falling out of JV between Sinosteel and the iron ore company (?)

very rough numbers so don't trust these - but am i right that if all pushes through as per the agreement - with all the cash payments, share issues etc, PNN will end up having approx 140m shares and $40m in the bank? If share price stayed at 60c, they would hv mkt cap of $86m.

What is normal explorer cash/mkt cap ratio? this would seem low....

downside is if agreement falls thru PNN get the immediate $1.65m for 3.3m shares and between $1.5 - 2.5m for more shares @ 50c.

they now work on approval of Oz & China governments including FIRB - would be first invest of China company in Oz uranium - will get a lot of press

 

[Halba]

their deposit is borderline uneconomic

low grades, no guarantee of being able to extend the deposit, poor recovery rates(but of course can be improved)

what are chinese doing with this, they must be desperate...AGS is much better, or MTN

IMHO not many quality U deposits in australia...beverley is easily the pick of the bunch and only exposure is through AGS

 

[Archinos]

their deposit is borderline uneconomic

low grades, no guarantee of being able to extend the deposit, poor recovery rates(but of course can be improved)

what are chinese doing with this, they must be desperate...AGS is much better, or MTN

IMHO not many quality U deposits in australia...beverley is easily the pick of the bunch and only exposure is through AGS

Halba
the only figs I can go on at the moment are from PNN rpt 31 July06:
"....JORC compliant resource estimate of the Crocker Well Uranium Field and Mt Victoria Deposit and
determined an Inferred Resource of 12.65 million tonnes at an average grade of 0.053% containing
6,740 tonnes (14.85 million lbs) of U3O8 using a cut off grade of 300ppm. If a cut off grade of 250ppm
is applied the resource increases to 8,576 tonnes (18.9 million lbs) of U3O8 with an average grade of
0.048%.
A scoping study for the development of the defined resource at Crocker Well was completed by
GRDMinproc Limited in March, 2006 and identified a mining and process concept to produce U3O8.
The process design was based on a 5.7Mt/annum mining operation producing 1.725Mt/annum ore
from which 585t/annum of U3O8 would be produced. At the current U3O8 price of A$62.17/lb and an
estimated average mining and processing cost of A$27.75/lb the project has the potential to generate
a cash flow of A$44 million per annum. Capital cost to establish a processing plant, mining contractor,
waste disposal, water supply and rehabilitation could be as much as A$160million...."
I must be missing something. From my reading of this (assuming they're true to their word...), with 11-14 yrs mine life, $43-44 +ve cash flow yr (covering cap costs in 4yrs) what's borderline about that? Add to the mix the $30+ mill if the chinese deal goes thru. These are big boys, they'd be privvy to things we aren't, hasn't it got to make some economic sense to them to have progressed a deal this far? Eitherway, I see this deal as a great template for future deals (not necessarily the same chinese co) with other companies trying to develop U3O8 projects.

 

[56gsa]

If approvals go thru and agreement is put in place then Sino will spend $6m on exploration but not for uranium - why would they specifically exclude exploration of uranium with Sino monies? Anyway they must see potential in PNNs other assets as well...