QOL - Queensland Ores

[jman2007]

Can't see any real reason why this should have gone through such a dramatic re-evaluation. Most of the major financial and regulatory hurdles have been overcome at Wolfram, and cetainly no other Australian Moly/Tungsten hopeful will be producing ahead of QOL.

Although the Wolfram mine life and overall grades are not world class (significantly less than THR's Molyhill, and marginally higher than VML's Watershed), there is potential for resource upgrades as people have mentioned. According to Far East Capital in June last year, QOL's strip ratio was anticipated to be 5.4:1, compared to the latest 8:1 ratio quoted in the latest Feb 08 presentation, so there have been some increases in mining costs here = less bang for your buck. It also mentions in the latest presentation "Starter Pit base constrained by former workings and rapid increase in stripping ratio" so perhaps a bit of a unforseen cost blowout initially, but surely nothing that would derail the project at this stage.

If the MC is currently equivalent to the capex to set Wolfram up as Prawn mentioned, I am fairly comfortable in saying that this does look undervalued atm, not only will QOL be able to take advantage of the high tungsten prices, the additional moly credits, and potential from Mt Cannida might not even be factored into the current price!

Might have to climb aboard afterall, hehe

jman

 

[Synergy]

Another positive ann out this morning with the final drilling results from Cannindah being released...

The final drill-hole returned an intersection of 29m (estimated true width 22m) at 1.35%Cu, 0.34g/tAu and 19.2g/tAg from 201-230m.

The deposit is approximately 200m long and the mineralised envelope is around 50m wide on average. Drilling has shown the deposit to extend at this width beyond 200m below surface.

A new resource estimate based on the latest data from the Project is being
undertaken by Golder Associates and is scheduled to be completed before the end of the quarter.

So hopefully in a few weeks we should see a Cannindah resource estimate.

 

[jman2007]

Another positive ann out this morning with the final drilling results from Cannindah being released...

The final drill-hole returned an intersection of 29m (estimated true width 22m) at 1.35%Cu, 0.34g/tAu and 19.2g/tAg from 201-230m.

So hopefully in a few weeks we should see a Cannindah resource estimate.

Yeah I saw the release too...

Some nice Au grades for sure, 19.2g/t for 29m?....cripes!

But mineralisation sitting at considerable depth, would prefer something much closer to the surface, but hey, I'm sure investors and QOL will be reasonably happy with the width of the intersection regardless.

jman

 

[urgalzmine]

Hey guys/galz

I was reading their quarterly activities and to me its concerning.

They have had delays on their Wolfram Camp, according to the prospectus they were meant to be the first Australian company to have a mine for tungsten and Molybdenum producing. They were meant to produce Jan 08 and then it was May 08 now its July 08. It has a life for about 5 yrs ( just top of my head) I hope they find some big reserves soon.

The bright side is that they got a buyer, Citic for a year


The second mine Mount Cannindah had some ok results ( refer to ann 29/01/08) drilling 1m at 10.25g/t AU and 3m 14.8g/t but they need approval from the QLD goverment to use water otherwise this mine aint gonna happen. <--- thats a little concerning.


The third mine they have is Bamford HIll which has no news....

Overall they have potential but the delay of mining the Wolfram Camp has killed the sp. They may have all flocked to HSK? what you guys think?

cheers

 

[jman2007]

Hey guys/galz

I was reading their quarterly activities and to me its concerning.

They have had delays on their Wolfram Camp, according to the prospectus they were meant to be the first Australian company to have a mine for tungsten and Molybdenum producing. They were meant to produce Jan 08 and then it was May 08 now its July 08. It has a life for about 5 yrs ( just top of my head) I hope they find some big reserves soon.

The bright side is that they got a buyer, Citic for a year


The second mine Mount Cannindah had some ok results ( refer to ann 29/01/08) drilling 1m at 10.25g/t AU and 3m 14.8g/t but they need approval from the QLD goverment to use water otherwise this mine aint gonna happen. <--- thats a little concerning.


The third mine they have is Bamford HIll which has no news....

Overall they have potential but the delay of mining the Wolfram Camp has killed the sp. They may have all flocked to HSK? what you guys think?

cheers

Just be patient mate....

The delays experienced at Wolfram Camp are symptomatic of the delays that the entire industry is currently facing. These are due to a whole host of reasons, such as extensive waiting periods for drilling rigs, long turnaround times for assay results (usually 5-6 weeks), scarcity of trained technical personnel etc. And of course lets not forget the not insignificant contribution the weather can have.

Particularly in the moly/tung sector, there have been delays across the board. In QOL's case, they will be producing a commodity for which there is a demand, the project is fully funded (?) (can someone confirm flyboy's comments please?), and all things considered to be shipping their first concentrate in July will be huge milestone. And as I've said before, there will be no moly/tung hopeful going into production ahead of QOL.

I have no idea about investors flocking to HSK, which incidentally is a matter to be discussed on that thread

jman

 

[prawn_86]

Well i just bit the bullett and threw a tiny amount at QOLOA.

All or nothing play, and i think that if QOL meet all its targets then there is some good leverage out of the oppies.

They expire 30/nov so i guess i'll know before too long...

 

[flyboy77]

QOL - CITIC Off take deal

To clarify an earlier poster's remarks re the CITIC off take deal.

The deal is for 1 year PLUS a 3 year option (QOL's option) and they are allowed to market to other potential buyers in the interim.

It really irks me (to be polite) the rhubarb some people write in these places as if they are gospel truth....

 

[prawn_86]

Mt Cannindah Resource upgrade released today.

72000 tonnes Cu
91000 oz Au
3.6mill oz silver

My quick calcs put the insitu value at $360 million.

Considering they plan the first shipment of moly from Wolfram camp in July, and that Wolfram has enourmous upgrade potential, its looking better and better all the time.

Im holding for Wolfram production, but the other projects add a nice bonus.

now the market just has to take up my view...

 

[AnDy62]

I share your view if it's worth anything Prawn . Took a little nibble at these today and will bottom draw this boy unless there's some wild movement (preferably upwards lol). Looks very promising to me, Copper grades are solid if not spectacular and Wolfram looks exciting. Nice ann today I thought too...

 

[JTLP]

Let's give a huge round of applause to Prawn.

Managed to sneak a 100% return in about 2 weeks.

Golf Claps all round :

*seriously well done!

 

[prawn_86]

Not really JTLP

Only $1k worth of oppies at 2c went through and there are still more sitting as a sell order there, so if i wanted to offload i wouldnt get that price.

But it is nice to see someone buying at that price, even if it is just a small amount

 

[JTLP]

Not really JTLP

Only $1k worth of oppies at 2c went through and there are still more sitting as a sell order there, so if i wanted to offload i wouldnt get that price.

But it is nice to see someone buying at that price, even if it is just a small amount

You know what im saying

Just undercut by .001...you miss out on a bit but bam you make some nice returns

 

[AnDy62]

Grabbed this excerpt from Wiki (I know... but it is sourced). Also noticed that the Book Value of QOL is $0.24 as of mid 2007. Talk about oversold, once it gets up and running... I'll be a very happy man.

Supply and Demand-

Although current molybdenum production meets demand, refiners, or roasters, are expected to run into a shortfall between 2009 and 2015, depending on demand.

A roaster processes the moly into a fine powder, pellets, or other forms. Total world moly roaster capacity is currently 320 million pounds per year, barely enough to meet demand. There is not much excess roasting capacity, and no one is actively permitting for the production of any new roasters in the United States. Global roaster capacity also looks limited, and a future roaster shortage is predicted. The data above are based on the assumption that mines will be able to increase output.

Western demand is projected to increase by around 3% annually, while China and the CIS demand is projected to increase by around 10% annually, increasing overall global demand by around 4.5% annually. Increasing demand can be attributed to two main factors. Hydroprocessing catalysts are becoming essential for crude oil. The other contributing factor is the increase in nuclear reactor construction. There are 48 nuclear reactors to be built by 2013, and approximately 100 are to be built by 2020. The International Molybdenum Association (IMOA) says that an average reactor contains about 520,000 feet of stainless steel alloy. Some larger reactors contain over 1 million feet of stainless steel alloy. Unless moly mine production picks up at a rapid pace, shortfalls of the metal are expected to arrive around 2009. [25]

http://en.wikipedia.org/wiki/Molybdenum#Supply_and_Demand

 

[AnDy62]

7 April 2008
APPOINTMENT OF EQUITY CAPITAL MARKETS ADVISER CONFIRMS
COMMITMENT TO MOVING INTO PRODUCTION
Queensland Ores Limited (ASX Code: QOL) has appointed financial services firm
BBY Limited as its exclusive Equity Capital Markets Adviser.
Queensland Ores Managing Director Taff Greenwood said the appointment was
another demonstration of the Company’s commitment to bringing its projects through
to production.
“The Company plans to advance a number of activities in its project development and
explorations program in the short-to-medium term,” Mr Greenwood said.
“These activities - including completion of the Wolfram Camp mine development, the
extended exploration of the Mt Cannindah project and the accelerated exploration of
the Bamford Hill prospect – will require capital.”
BBY will assist Queensland Ores to communicate its business strategy to domestic
and international institutions and Sophisticated Investors and explore future capital
raising opportunities.
The agreement with BBY provides Queensland Ores access to world equity markets
which should over time expand the shareholder base, adding value for existing
shareholders.
BBY has offices in Sydney, Melbourne, London, and an equity stake held by major
US Investment Bank, Jefferies Inc - a global investment bank and institutional
securities broker focused on growing mid-sized companies.
Mr Greenwood said Queensland Ores’ relationship with BBY is another endorsement
of the quality of the Company’s asset portfolio.
ABOUT QUEENSLAND ORES
Queensland Ores Limited is a listed resources company focusing on developing quality resource
projects in Queensland. The Company trades under the ASX code QOL.
The Company’s asset portfolio includes advanced specialty metals projects such as tungsten and
molybdenum and copper/gold.
Queensland Ores’ two key projects are the Wolfram Camp Project, developing one of Australia’s richest
tungsten and molybdenum deposits near Cairns; and the Mount Cannindah Copper Project, advancing
the areas surrounding and including the former Mount Cannindah mine, located about 100km south of
Gladstone.
For further information contact:
Mr Taff Greenwood
Queensland Ores Ltd
Chief Executive Officer
Tel: 07 3230 2000
Media:
Ms Anna O’Gorman
Principal Consultant
Three Plus
Tel: 07 3503 5700

 

[AnDy62]

Well the market has been hammering QOL

Found this bit interesting;

The agreement with BBY provides Queensland Ores access to world equity markets which should over time expand the shareholder base, adding value for existing shareholders.

Is it common practice for companies to effectively say that the share price should go up in the future? I didn't see anything negative about this ann, maybe it has instilled fears of future delays? Any thoughts people?

 

[jman2007]

The market is certainly shunning QOL atm...

Although I am presently sitting on a modest loss here, there hasn't really been any concrete evidence to support a negative view of the company imo, and I am happy to keep holding.

Probably the market has been somewhat exasperated by the delays across the board, that almost every company has sufferred at one time or another in this sector. Getting to production status, which is really only the start line, will be a major hurdle overcome, especially in QOL's case.

If they can infill/step-out drill along strike at Wolfram Camp and improve the resource figure, this should hopefully offset the decision to mine at a slightly higher cutoff grade, which has had the effect of increasing the waste to ore ratio and subsequently increasing the operating costs. Potential exploration upside appears reasonable to good.

Obviously Wolfram camp if their prime focus, but not much attention has been paid to Mt Cannidah either. QOL have been quietly working away in the background and have come up with what looks like a well-constrained and robust resource figure and model. It basically looks like an enriched oxide cap with a fair bit of supergene enrichment. They seem fairly confident that they can extend the mineralisation down plunge, but whether this could still support an open cut operation is still being explored. I'm unsure how they would go about co-extracting the Cu and Au, since with conventional cyanide leach circuits, the Cu would basically gobble up all the cyanide. Maybe two independent circuits? Looks like an interesting project anyway.

Cheers
jman

 

[jooooooles]

QOL has finally bottomed out.

You won't be seeing 13 cents and sub from now on. Over 1 million traded today all of the Opes selling seems to have finished confirmed somewhat by the announcement today as well. Increased volumes over the last week would suggest that QOL has finally bottomed out and the selling has finished.

Just my opinion.

Wolfram Mine looking to be commisioned next month

 

[AnDy62]

That's my thinking too Jooles. I'm going to wait for some technicals supporting a move upwards then accumulate at these low prices

 

[prawn_86]

Well they are starting to pump out the proce sensitive anns now.

They have released 4 in the last fortnight, all with decent news, plus emphasisng the fact that their mine is nearly being commisioned, and that the first shipment will be gone in July

Latest ann saying they have recieved an extra 2 exploration licenses next to its current Mt Cannindah tenemants.

The following is actually from QOLs original prospectus, where they talked about surrounding tenemants, to prove Mt Cannindah was in a good area:

number of former workings including, from west to east, the Monument, Lifesaver, Dunno and Appletree.

Appletree skarns also account for anomalous soil gold values

A small Exploration Permit for Minerals (“EPM”) over a portion of the Appletree prospect area in the south eastern portion of ML 3209, is excluded from the Cannindah Project area as it is held by another party.

Not anymore

 

[doogie_goes_off]

1 MILLION SHARES ISSUED FOR A SMALL epm

This much dilution should not be a worry and 140k equivalent in shares is worth it, however I would like to see more details on appletree before I think this is a great deal, but I'm glad it doesn't affect the cash position as they need the $ for plant commisioning.

QOL should start a bit of a climb once the plant is complete IMO.