SDL - Sundance Resources

[Piggy Bank]

It was nice to have some positive news about the activities of SDL today with some increase in trading volume.

Reported in Corporate File 20 July 2007 - SDL Managing Director Don Lewis commented on exploration work for the June Quarter as follows:

"We have completed initial surface mapping of hematite mineralisation and received first assay results from this sampling. These surface sample results are very encouraging and will be reported to the market shortly."

"Wallis Drilling have mobilised the first two drilling rigs to site and drilling has commenced near the southern extent of the visible surface mineralisation. First core samples have been prepared and despatched to SGS laboratories in South Africa for analysis. We have also committed to construction of two additional RC rigs and manufacture of these rigs has commenced ready for mobilisation by the end of 2007. We are also now evaluating options to further increase our drilling capacity for our
proposed 2008 Bankable Feasibility Study."

I am looking forward to the imminent market release of the initial surface sample results and subsequent core samples. It will be an exciting time for SDL!!! Wonder how the market will respond?

 

[hangseng]

It was nice to have some positive news about the activities of SDL today with some increase in trading volume.

Reported in Corporate File 20 July 2007 - SDL Managing Director Don Lewis commented on exploration work for the June Quarter as follows:

"We have completed initial surface mapping of hematite mineralisation and received first assay results from this sampling. These surface sample results are very encouraging and will be reported to the market shortly."

"Wallis Drilling have mobilised the first two drilling rigs to site and drilling has commenced near the southern extent of the visible surface mineralisation. First core samples have been prepared and despatched to SGS laboratories in South Africa for analysis. We have also committed to construction of two additional RC rigs and manufacture of these rigs has commenced ready for mobilisation by the end of 2007. We are also now evaluating options to further increase our drilling capacity for our
proposed 2008 Bankable Feasibility Study."

I am looking forward to the imminent market release of the initial surface sample results and subsequent core samples. It will be an exciting time for SDL!!! Wonder how the market will respond?

This will give you some idea of what will be reported on from the drilling. This will be one huge iron ore project of exceptional hematite grades and very low phosphorous and alumina content (the secret). Another one with George Jones at the helm. Not long before he has the Chinese into this I would expect. Todays confirmed breakout from the long term support trendline was exactly what I have been waiting for. Uptrend remains intact and looking very strong indeed with very large buyers coming in today. Smart money seems to like what they see.

• Hole S1 64.9m @ 65.7% iron (from 16.5m below surface)
• Hole S2 36.9m @ 64.6% iron (from 23.5m below surface)

"Contaminants play a major role in marketing and pricing of iron ore. Drilling of the Metzivemin prospect gave averaged analyses of 0.056% Phosphorous and 0.67% Alumina. These are considered to be low and quite acceptable to major steel mills."

http://www.sundanceresources.com.au/documents/news/00202_SDL_11052007.pdf

 

[the barry]

Trading halt - hopefully this is good news. Am inclined to think that it has something to do with the chip samples, but we will see. Rumours on other boards about a potential merger with gbg coming at some point.

 

[Piggy Bank]

Trading halt - hopefully this is good news. Am inclined to think that it has something to do with the chip samples, but we will see. Rumours on other boards about a potential merger with gbg coming at some point.

Tend to agree with you there about the surface sample reports as the reason for the trading halt. Will be an interesting week for SDL.
Can you please post the links about the rumours on other boards about the potential merger with GBG?

 

[gfresh]

The main reason for the rumours seems to be that George Jones sits as Chairman at both companies. Whether there is any basis because of this anybody can guess.

 

[the barry]

Tend to agree with you there about the surface sample reports as the reason for the trading halt. Will be an interesting week for SDL.
Can you please post the links about the rumours on other boards about the potential merger with GBG?

It isn't so much a rumour, it is stated in the press. As the article states it is a matter for the future when it can be determined what synergies can be obtained by merging the two companies. Not sure wether they will as for mind it is hard to see the synergies created when the two companies are on oppisite sides of the globe. However, i think both companies have excellent prospects in their own rights, if they were to merge and get both projects on line they would certainly have a major presence in that sector.

http://news.ninemsn.com.au/article.aspx?id=161916
=============
Ex-Portman boss tips iron ore price rise
Tuesday Nov 14 17:02 AEDT

Former Portman Ltd chairman George Jones believes a 10 per cent increase in the iron ore price is likely next year with demand for the steel making material still very strong.

Mr Jones said ramp-up plans by established producers were taking time and were not keeping up with increasing demand.

"I think the price rise will be more modest than in previous years, the 71 per cent caught me by surprise but the nearly 20 per cent last year didn't," Mr Jones told a briefing in Perth on Tuesday.

"CVRD have put up their hand for 40 per cent, that will be ambitious, I think at least 10 per cent is achievable and highly likely."

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Mr Jones made the call while spruiking his latest venture, Sundance Resources Ltd, where he has recently been appointed non-executive chairman.

Sundance's key asset is the Mbalam iron ore project in Cameroon which has an inferred resource in excess of 800 million tonnes, including 218 million tonnes grading more than 60 per cent iron.

The project is located about 550 kilometres from the coast in an area with no established infrastructure.

Sundance is planning to complete an $18 million pre-feasibility study on the project by mid-2007 and is aiming to bring the operation online by about 2010.

The company is intending to raise $20 million through a share placement to finance the feasibility work.

A scoping study completed by Australian-based Promet Engineers last year estimated it would cost about $US2.5 billion ($A3.29 billion) to bring onstream.

Mr Jones said it was likely the company would bring in a partner down the line to assist with the project's development.

Mr Jones also hinted at a possible merger between Sundance and West Australian iron ore hopeful Gindalbie Metals Ltd, where Mr Jones is executive chairman.

"Whether there are any synergies in the future between the two, that will be for the two boards to determine when they both get further down the track."

"Going forward it may make sense to put them together ... there is a lot of work to be done before we concern ourselves with that."

Mr Jones was formerly chairman of iron ore miner Portman prior to its takeover by US-based iron ore producer Cleveland Cliffs Inc in 2005.

 

[hangseng]

IMO the merger is not far away.

Jones was in China again recently (according to reception) and has just returned in the last 2 weeks. He made that comment in the press last year for a reason. Again IMO only, I think the merger will to turn out to be reality and it is no coincidence that GJ became the chair of both companies.

This man is nothing short of brilliant, the reason I follow his dealings so closely. His success in turn has bred (my) success. Looking at where this man started out in life to what he is now achieving is such an inspirational story of real life.

How big would the new entity be? Literally one of the worlds largest Fe companies and a share price to match. I watch the coming months with much interest.

 

[Love Zn]

If this trading halt was related to a merger with GBG, then you would also expect GBG to be in a trading halt.

It is more likely results from samples or they have signed some sort of an agreement with a company.

Was doing more research over the weekend and was hoping to get some SDL shares next week when funds clear. I just hope I don't miss the boat when it opens trading again :bonk:

 

[hangseng]

If this trading halt was related to a merger with GBG, then you would also expect GBG to be in a trading halt.

It is more likely results from samples or they have signed some sort of an agreement with a company.

Was doing more research over the weekend and was hoping to get some SDL shares next week when funds clear. I just hope I don't miss the boat when it opens trading again :bonk:

I wasn't suggesting this announcement has anything to do with a merger. What you state is correct it would require GBG to be in halt simultaneously. I was generalising as to SDL and where all of this may be heading.

IMO this news will be the initial drill test results and I am expecting this to be excellent.

 

[Love Zn]

I wasn't suggesting this announcement has anything to do with a merger. What you state is correct it would require GBG to be in halt simultaneously. I was generalising as to SDL and where all of this may be heading.

IMO this news will be the initial drill test results and I am expecting this to be excellent.

Sorry Hang, misunderstood.

Is it drilling results they will report just now? From Open Briewfing 20/07:

"We have completed initial surface mapping of hematite mineralisation and received first assay results from this sampling. These surface sample results are very encouraging and will be reported to the market shortly."

"First core samples have been prepared and despatched to SGS laboratories in South Africa for analysis."

The core samples were despatched in June, would they be ready to report just now?

 

[Fab]

Sorry Hang, misunderstood.

Is it drilling results they will report just now? From Open Briewfing 20/07:

"We have completed initial surface mapping of hematite mineralisation and received first assay results from this sampling. These surface sample results are very encouraging and will be reported to the market shortly."

"First core samples have been prepared and despatched to SGS laboratories in South Africa for analysis."

The core samples were despatched in June, would they be ready to report just now?

I was exactly waiting for that. I am expecting these results to boost the share price. A friend of mine who work for worley Paterson in the Kimberley mentioned to me that he talks to SDL contractor people on a daily basis and said to me buy this share about 5 weeks ago as expected that it might go to $1 if the results were good and possibly more. We will see

 

[nikki]

Hang, can you tell me what else george is involved in? like your posts by the way. have you been watching ADY. any comments on that!

 

[Piggy Bank]

I was exactly waiting for that. I am expecting these results to boost the share price. A friend of mine who work for worley Paterson in the Kimberley mentioned to me that he talks to SDL contractor people on a daily basis and said to me buy this share about 5 weeks ago as expected that it might go to $1 if the results were good and possibly more. We will see

Given that the market was already informed last Friday at the open of trade that "surface sample results are very encouraging and will be reported to the market shortly" could there be something more to the trading halt than just positive initial surface results? Or maybe the results are just unexpectedly extremely good? Is it possible that a JV partner has been brought to the discussion table at such an early stage in the piece by the Magician G Jones during his recent visit to China? The mystery will all be revealed by tomorrow morning...whatever the reason it shall be an interesting days trading! Expecting huge volumes tomorrow with hopefully a share price to match!

 

[winsol]

the reason for the halt was capital raising - see this mornings west australian newspaper

Sundance raises $40m for Africa
George Jones-led iron ore junior Sundance Resources is believed to have secured major new overseas backing ion a $40 million capital raising overnight, as investors warm to the potential of its rich Mbalam hematite project in Cameroon.

 

[Fab]

the reason for the halt was capital raising - see this mornings west australian newspaper

Sundance raises $40m for Africa
George Jones-led iron ore junior Sundance Resources is believed to have secured major new overseas backing ion a $40 million capital raising overnight, as investors warm to the potential of its rich Mbalam hematite project in Cameroon.

If that is the case I am not too sure this will put a rocket under the share price tomorrow. Anyway we will see.

 

[Piggy Bank]

the reason for the halt was capital raising - see this mornings west australian newspaper

Sundance raises $40m for Africa
George Jones-led iron ore junior Sundance Resources is believed to have secured major new overseas backing ion a $40 million capital raising overnight, as investors warm to the potential of its rich Mbalam hematite project in Cameroon.

Thanks for the info! Have you got a link or copy of the article in this mornings West Australian Newspaper?

 

[hangseng]

If that is the case I am not too sure this will put a rocket under the share price tomorrow. Anyway we will see

This raising will have a positive effect on the sp, very positive. The raising at .40 will be held by large investors who are in no hurry to sell a stock that is heading for much bigger things. People have focussed narrowly only on the 1b+ tonne Mbalam prospect, the other within the Cameroon leases will make SDL one very large Fe company mining high grade hematite ore.

This announcement is no ordinary cap raising, look at the recent report. This project will be fast tracked and is sure to attract our friends in China.

GJ is also chairman of MUN and GBG, two other success stories in the making.

 

[Piggy Bank]

winsol,

I found a link to the article you referred to that speculates about the capital raising. I have posted it here for other interested parties.

http://www.wabusinessnews.com.au/en-story/1/55124/Today-s-headlines

 

[winsol]

re link - see http://www.wabusinessnews.com.au/en-story/1/55124/Today-s-headlines

the actual article (not on the internet) says that they could have easily raised $80m if they wanted to. There is huge interest.

 

[hangseng]

re link - see http://www.wabusinessnews.com.au/en-story/1/55124/Today-s-headlines

the actual article (not on the internet) says that they could have easily raised $80m if they wanted to. There is huge interest.

There most certainly is, I for one am extremely excited about this.

I also read with interest that GJ had meetings with UK and US interests and the Cameroon Govt has displayed strong support. He has also just recently returned from China (again). What has he been up to, are we also about to see the Chinese on board?

I would love to have his 1st class frequent flyers