PSP - Prosperity Resources

[moneymajix]

Closed at 15c

Ann. 18 June

DETAILED MAPPING CONFIRMS STRIKE AT
WOOLSHED IRON ORE PROSPECT,
25 KM NORTH OF MT GIBSON, W.A.

Prosperity Resources Limited (ASX: PSP) and Mawson West (ASX:MWE) are pleased to
announce results following a recent detailed mapping programme on the Woolshed Prospect
as recommended by Hematite Consultants.
Present indications show a potential exploration target size of approximately 50-60MT of
prospective DSO
Prosperity Resources Ltd’s Managing Director, Mr Ric Dawson said “This detailed mapping
programme, which is testing an area with a strike length of 4 kilometres, will now progress to
drilling to test from iron enrichment at depth.”
Follow up iron analysis results from the mapping programme should be released in about two
weeks and in the coming quarter RC drilling will commence after sourcing a suitable drill rig.
Mr Dawson said, “With close proximity to Gindalbie Metals Ltd’s Karara Iron Ore deposits,
Mt Gibson Iron’s Extension Hill deposits and the existing road infrastructure, the
prospectivity for this area is significant.”

For further information contact:
Ric Dawson
Managing Director

 

[Bushman]

Hematite Consultants played a role in identifying the GBG Mt Karara deposit in 2005. Not much to hang your hat on but it is something.

http://www.theajmonline.com/informaoz/ajm/home.jsp?var_el=archart&art_id=1107874699447&seqnum=217

Mt Gibson Woolshed iron ore prospect: 50 to 60 MT iron with assay results grading up to 59% Fe. To quote the announcement, 'the potential quantity is conceptual in nature, there has been insufficient exploration to define a Mineral Resource'. Hence the company is planning a reverse drilling programme to test the enrichment @ depth.

Woolshed earnings - 60% PSP and 40% MWE.

Also has 2 further iron ore Mt Gibson prospects (Warriedar, Mummalou) along with minority interests in an Indonesian copper project. Woolshed though is the best of the 3.

Note cash per March 2005 App 5B is only $477k!

Very early days but worth keeping an eye on. No announcement yet as to the start of the drilling progamme.

 

[countryboy]

Bushman- have been looking at this stock for some time. I think they have spread themselves too thinly with a recent announcement about U in the Nt adding to a swag of metals they are chasing. It was enough for me to take my money elsewhere. I keep looking at it because its so cheap. Given its price could be worth a min amount as specy. Keep the info coming !

 

[Bushman]

Just an update on the cash position CB - new App 5B just released.

Cash at the end of the June quarter is now $2,771k. Sorry mate - missed the fact that they had a capital raising to '7 international institutions from Uk, China, Singapore, Aus & US' to place 50m ordinary shares at 10c plus rights to to options. All in this should raise $5m. They received half of it this quarter.

So now they have cash and some instos on board. No idea who these might be? Cash is to be burned on the Tennant Creek tenement and the Woolshed iron ore diamond drilling. Should be a few more years exploration left in them yet.

Current market cap = 93,775,373 undiluted shares @ 16c = approx 150m.

Some action at the fort perhaps CB? Will be keeping my out for those drill results and then jump on early if anything looks promising. It is the age of the Aussie iron ore explorer after all. Doing well out of POL at the moment.

DYOR though!!

 

[Bushman]

Current market cap = 93,775,373 undiluted shares @ 16c = approx 150m.

Sorry all - that mkt cap should obviously be $15m!! Must be a Friday or something....

 

[moneymajix]

Bush

Low market cap.

Lots going for the stock.

Not much followed stock atm.

Currently 15c.

 

[countryboy]

its always good to compare companies on a range of criteria to make sure you are getting value for your $$. IRM are about the same place in exporation and at last look were several cents higher in price, For my money (not that I've taken the plunge yet!) PSP have what appears better ground. (but who knows what is underneath!)past these two companies you move into companies in JVs and a diluted royalty from their projects. The market rarely rates these holdings highly eg Cullen. I'm still looking to park some $ for 6-9 mths...maybe lead producers are worth alook !

 

[moneymajix]

16c

Up over 10% today.


Very few sellers. Buyer interest.


Looking good. Nice overdue, I think?


Excitement building. Any thoughts, out there?


LOL to all holders.

 

[moneymajix]

Chomping through 17c.Up over 17% today.

Not much interest on this forum, it seems.

If there is any good news, watch it zoom up imo. Few sellers.

Iron Ore.

 

[Bushman]

Chomping through 17c.Up over 17% today.

Not much interest on this forum, it seems.

If there is any good news, watch it zoom up imo. Few sellers.

Iron Ore.

Chomping through 17c.Up over 17% today.

Not much interest on this forum, it seems.

If there is any good news, watch it zoom up imo. Few sellers.

Iron Ore.

What do you think is happening here MM? 17% on no news. Is it the market waking up to the potential? Instos buying into a good news story post capital raising?

Advantages:
- Woolshed good ground (next door to Mt Gibson & Gindalbie Karara deposit);
- Money in the bank with instos funding company $2m in 4th qrt;
- Some good buying action going on. Someone is waking up to this one.
- 60% holding in potential 50 to 60 MT iron ore deposit with top assay result 59% Fe.
- low market cap ($15.8m on today's prices) so room to move.
- additional projects iron ore and gold.


Disadvantage:
- 50 to 60 mt is not based on any confirmed drill results. Rather it is inferred from rock chip samples.
- Low profile

Unkown - mgt. Anyone know anything about Directors?

Agree with MM - it will run if anything is firmed up. Not sure if it is wise to buy in on a spike with this one though. Very low trading volume so it runs hard when there is some action. Pick your entry point and make sure you are comfortable with the fact that no drill results have yet been released on Woolshed. High risk, potential high reward iron ore play.

 

[moneymajix]

Hi Bush

If I were to guess, there may be some good news coming and the cat might be out of the bag. I think there is some results expected which are overdue. Please correct me if I am wrong.

If there is good news, this should move up quickly. Not much in the way of sellers.

Close of 18c - up over 24%.

Very nice for holders and great to watch today.

LOL.

 

[countryboy]

Finally took the plunge and jumped in around 16c, The 50-60 million t DSO from Woolshed talked me into it! The PSP website is up for an upgrade with the page being 1/2 the size of an A4 sheet.(compared to FWL) I do believe they could create some interest if they were to concentrate on one project and given U and iron ores upside at the moment....but hey what do I know. I have been a share holder for less than 24 hrs !

 

[Bushman]

Finally took the plunge and jumped in around 16c, The 50-60 million t DSO from Woolshed talked me into it! The PSP website is up for an upgrade with the page being 1/2 the size of an A4 sheet.(compared to FWL) I do believe they could create some interest if they were to concentrate on one project and given U and iron ores upside at the moment....but hey what do I know. I have been a share holder for less than 24 hrs !

Yep took the plunge yesterday. It was haunting me that 50 to 60 MT @ 59% Fe in the Mt Gibson hot zone. Damn speccies...

 

[moneymajix]

Hi guys

Good luck to you. I am a holder and think we will all be rewarded in due course.

Will I get in trouble if I say this is going over 50C?

Currently 16c.

 

[j4mesa]

Hi guys

Good luck to you. I am a holder and think we will all be rewarded in due course.

Will I get in trouble if I say this is going over 50C?

Currently 16c.

Hi moneymajix,

I am interested to find out why you mentioned "we will all be rewarded in due course", is there anything coming inthe line ?

 

[moneymajix]

J4

I don't know anymore than I read in the anns. etc.

I am confident of this stock so I believe holders will be rewarded in due course.

Small market cap and potential to be an iron ore producer.

LOL.

 

[j4mesa]

Well , good luck to you.....

I am just watching from the sidelines....at this moment because this share does not have a high liquidity according to me

 

[countryboy]

i watched from the side for a month,,,my main concern which i have said in previous posts was the spread of metals they were chasing. This is still a concern. The lack of liquidity i do note but i'm hoping that is from a tightly held share registry. FWL does not have many shares for sale the result is an inflated share price. Hope this happens to PSP

 

[Bushman]

i watched from the side for a month,,,my main concern which i have said in previous posts was the spread of metals they were chasing. This is still a concern. The lack of liquidity i do note but i'm hoping that is from a tightly held share registry. FWL does not have many shares for sale the result is an inflated share price. Hope this happens to PSP

Hey CB & MM;

Just had a look at the top 20 and they hold 63% of the issued capital.

Investors of note include:
1. Prufrock Partners - a Bahamas based hedge fund. Own 15%.
2. Thorney Investments ie Dick Pratt's investment vehicle. Own 5%.
3. Sinom - 3%. Iron ore traders who I think might be the owners of Mt Gibson Ext Hill magnetite ore project. They paid $52m to MXG for this in 2003. I am confirming some of this research on the ACS thread. I will update if anything further comes to light.

Mo Munshi is the Chairman and he has worked with Ivanhoe Mines in the past.

I agree with all the posters that the stock is very illiquid at the moment. So it could go anywhere. The next announcement should be crucial. From the Woolshed ann, the rock chip assays should be due anytime now.

As always, just my thoughts on this.

 

[countryboy]

survived today in reasonable shape.thanks for the info on the top 20. if the dow goes lower tonight i think i may be in the market on monday for quite a few stocks including PSP.

also bought YML which has a near jorc of 30 million t i think at 62 c.

i would assume the 50-60 mill t DSO is hermanite(spelling!) and not magnetite ??