RHM - Richmond Mining

[Bushman]

Another big volume day with nearly 1m traded and a new intra-day high of 32c. Although it closed at 27.5c, most of the volume was around 30c or higher.

Speeding ticket issued by the ASX this afternoon, in response RHM states:

It can be noted that on a peer comparison, the Richmond share market value is
still much less than other Narracoota explorers and iron ore juniors and the
recent share price movement may reflect investors taking advantage of this
apparent disparity.

It still has a long way to go before it catches up to some of its peers in the region.

The volume yesterday was superb but there was obviously pent-up sell side pressure. Soaked up over 1m shares though. Today could be the lower volume break-out. But you never know with illiquid speccies as they can just as easily gap down and hammer you. Lol.

I am still tipping a pre-drill campaign re-rating a la other specs drilling in the region. Copper and gold are also two good targets given the coppers leverage to the recovery and gold leverage to the 'crisis' with paper assets.

All of this IMO, DYOR.

 

[kpas]

Even with the 40% ish gains over the last month, it's still only a $7 million dollar market cap, but with I think 3 weeks to go until we hear some news about their iron ore project and maybe 4 weeks or so until we hear about the copper/gold project near Sandfire Resources.

It is definitely a solid little performer, but still a speculative buy until they prove decent grades and volume at either project.

The next 3 weeks will probably make or break the share price.

 

[jonojpsg]

Even with the 40% ish gains over the last month, it's still only a $7 million dollar market cap, but with I think 3 weeks to go until we hear some news about their iron ore project and maybe 4 weeks or so until we hear about the copper/gold project near Sandfire Resources.

It is definitely a solid little performer, but still a speculative buy until they prove decent grades and volume at either project.

The next 3 weeks will probably make or break the share price.

I vote the former

Although I agree that the MC reflects the fact that they don't actually have anything in the ground yet - well now some low grade IO but we want something exciting like copper/gold!

 

[JimBob]

It has held and consolidated above the old highs of 26c well and has had had a crack today at recent highs of 32c. The buy depth has filled out and sellers have dried right up, so it is looking good for further gains as drilling at Narracoota approaches.

 

[kpas]

It has held and consolidated above the old highs of 26c well and has had had a crack today at recent highs of 32c. The buy depth has filled out and sellers have dried right up, so it is looking good for further gains as drilling at Narracoota approaches.

It's had a crack of 34c today and appears to be holding up, albeit on very low volume.

Sell depth has filled out so I think we're in for some consolidation at this point which is healthy.

Will be ~2 weeks until drilling announcements are due come this Monday.

 

[craigj]

with such a small market cap and with the nearology factor any decent finds from the narcoota volcanics should see the share price leap above its current level

good time to get set now

 

[kpas]

So drilling at Narracoota starts sometime this week - should be seeing some increased volume as punters start to take their positions.

Will definitely be a good result for shareholders if they strike a serious copper gold reserve.

 

[Bigukraine]

Interesting ann buy SFR that they will drill/explore the Doolgunna copper/gold

project over the next six months with a $8 mil min budget and using 4-6 rigs

at the same time. Might explain the mini sell off down today and the question may have to be asked if RHM have secured their rig yet ????

Had that feeling that the obtaining of a rig was going to be hard with all the action in W.A. at the min. .............. it might not be for the reason above but now we have to wait until early June (hopefully) before we start to drill.... this was delay no 2 ........... i feel no 3 in the air

 

[kpas]

Had that feeling that the obtaining of a rig was going to be hard with all the action in W.A. at the min. .............. it might not be for the reason above but now we have to wait until early June (hopefully) before we start to drill.... this was delay no 2 ........... i feel no 3 in the air

And you got it today. 1 more week delayed while the drill rig is mobilised.

Hopefully the last one.

Other thing of interest is they stopped the BV drilling early as they had confirmed the US Steel studies were good enough. They are happy that they can pull together 66% post-beneficiated Fe.

I think it may start to get a bit more market exposure on the back of a solid announcement regarding volume of ore & quality @ BV.

Almost starting to lean towards success @ BV being more important then even bothering with Narracoota. Not because I think Narracoota is a dud project, just that BV is almost a no brainer:

1. Well advanced mine
2. Well advanced study
3. Existing transportation

Assuming they got the volume, they'll fast track BV to a producing mine very quickly!

 

[Bigukraine]

And you got it today. 1 more week delayed while the drill rig is mobilised.

Hopefully the last one.

Other thing of interest is they stopped the BV drilling early as they had confirmed the US Steel studies were good enough. They are happy that they can pull together 66% post-beneficiated Fe.

I think it may start to get a bit more market exposure on the back of a solid announcement regarding volume of ore & quality @ BV.

Almost starting to lean towards success @ BV being more important then even bothering with Narracoota. Not because I think Narracoota is a dud project, just that BV is almost a no brainer:

1. Well advanced mine
2. Well advanced study
3. Existing transportation

Assuming they got the volume, they'll fast track BV to a producing mine very quickly!

I agree but the problem is that they will have to take up the option and pay up and with the drilling at Narracoota about to start, BV fast tracking will need a cap raise and the way finances are in the world today not really an optimum time to try unless with a heavy discount........ mmmm, will have to wait and see how it unfolds

 

[craigj]

options exp in dec will create cash they need

at 20c strike price only needs to find anything at naracoota to be well above price

 

[kpas]

Great news out of BV recently with some really good iron grades.

RHM still seems to be flying under the radar with speculators waiting for the early news out of Narracoota drilling.

 

[Bigukraine]

Great news out of BV recently with some really good iron grades.

RHM still seems to be flying under the radar with speculators waiting for the early news out of Narracoota drilling.

Yeah, great news on something RHM still have to execise the option on to buy(BV) and early news on Narracoota.... Phffffff ! can't get news re the rig being on site let alone drilling... prob with delays with rig and unfortuately the weather north of Meekathara after the 17th June looked very average.... part of exploration these delays and i think we will have to wait longer... good to see shareholders holding firm though !:sleeping::sleeping:

 

[kpas]

Yeah, great news on something RHM still have to execise the option on to buy(BV) and early news on Narracoota.... Phffffff ! can't get news re the rig being on site let alone drilling... prob with delays with rig and unfortuately the weather north of Meekathara after the 17th June looked very average.... part of exploration these delays and i think we will have to wait longer... good to see shareholders holding firm though !:sleeping::sleeping:

Sorry bit of a confusing post - do you think its a good or bad thing that they are getting good drilling out of BV?

 

[Bigukraine]

Sorry bit of a confusing post - do you think its a good or bad thing that they are getting good drilling out of BV?

went into this in depth on that other site hc, US STEEL spent a heap to get their info and last report on" seven rock chips" Hmmmm... RHM in short will have to put 2 out of 3 projects on the back burner and put all energy into one, thats why the drilling and testing of Narra is very important .... waiting like everyone else...

p.s sent you a PM on the subject hope it helps

 

[JimBob]

Drilling has commenced at Narracoota.

http://www.asx.com.au/asxpdf/20100623/pdf/31qz68fjfj46xk.pdf

Drilling it to test seven high priority VTEM anomaly targers within the Narracoota Volcanis, the same rocks hosting Sandfire Resources DeGrussa copper-gold discovery. Share price up 10% after the announcement to 26.5c

Current market cap $8.8million with a bit over $2million cash in the bank.

 

[craigj]

if ever there was a time to get into richmond mining this is it. drilling results show anything good and there wont be a holder prepared to sell cheaply

 

[kpas]

if ever there was a time to get into richmond mining this is it. drilling results show anything good and there wont be a holder prepared to sell cheaply

26 days later & we are still waiting on the news.

Hopefully they have just been waiting to release it with the quarterly announcement. Will be a disapointing wait if we have to go into next month with still no drilling news on narracoota.

 

[jonojpsg]

Yep, I've been watching this too - waiting, waiting... my thoughts would be that results are @&#! and they are hoping to get something positive out of Buena Vista to counter the disappointment??

WHo knows though - could be simply waiting for assay results before announcement?

 

[Bushman]

Yep, I've been watching this too - waiting, waiting... my thoughts would be that results are @&#! and they are hoping to get something positive out of Buena Vista to counter the disappointment??

That would be in breach of ASX listing rules re continuous disclosure about news material to the share price.

Weather delayed the drilling campaign so news has simply been pushed back. Nothing more sinister than that IMO.