SFR - Sandfire Resources

[DVEOUS]

Sinking like a lead balloon, now that the euphoria is over.

Would anyone care to suggest a support price, and why?
~$1.50
~$1.20

I expect that any new "market sensitive" announcements will have less of an impact. Like the little boy who cried wolf.

Looking for a reasonable entry point.

 

[3 veiws of a secret]

Sinking like a lead balloon, now that the euphoria is over.

Would anyone care to suggest a support price, and why?
~$1.50
~$1.20

I expect that any new "market sensitive" announcements will have less of an impact. Like the little boy who cried wolf.

Looking for a reasonable entry point.

Could I suggest $2.59 I'm sorry about the whacky humour....
But as you have stated and Quote" I expect that any new "market sensitive" announcements will have less of an impact. Like the little boy who cried wolf" that comment just about sums up your desperation to get into a speculative stock....can I ask why or is it some kind of a catch 22 bait on the mouse trap ?

 

[DVEOUS]

Could I suggest $2.59 I'm sorry about the whacky humour....
But as you have stated and Quote" I expect that any new "market sensitive" announcements will have less of an impact. Like the little boy who cried wolf" that comment just about sums up your desperation to get into a speculative stock....can I ask why or is it some kind of a catch 22 bait on the mouse trap ?

You answer a question with a question.
I thought it was a straightforward and reasonable query I posted.
To easy to get burnt on specs like this.

Anyone else actually have an opinion on support price?

 

[3 veiws of a secret]

You answer a question with a question.
I thought it was a straightforward and reasonable query I posted.
To easy to get burnt on specs like this.
Anyone else actually have an opinion on support price?

Sorry I missed your reply thus late reply. Apologises ,no malicious intent whatsoever,to much on my mind at the time ,of course it does not make sense.
I could'nt fathom the logic as to why somebody was contemplating in re-entering into this share when it has been sliding from some amazing graph highs of $2.57???? & also the day traders have moved on.
I had traded SFR in the $1.95 > $2.45 zone some two weeks ago multiple entries per day ,but at $ 1.59 ???? as I remember today its of no interest to me whatsoever, in fact I have pidgeoned holed this share in the "too speculative " hard basket. There are better shares in my opinion ( & I'm always wrong) .....have you looked at the IVA on this forum? My ex stockbroker buddy told me today over a beer to research it and give him an opinion soon . G'nite

 

[spectrumchaser]

ASX RELEASE 23 September 2009

DOOLGUNNA DRILLING CONTINUES TO DELIVER


● Outstanding new intersections in DGDD‐007, 80 metres down‐dip of discovery hole
DGDD‐001:

o 50.1m @ 8.4% Cu, 2.9g/t Au (DeGrussa); and
o 8.9m @ 5.0% Cu and 1.5g/t Au (Conductor 1).

● Potential new mineralised horizon (“Footwall”) intersected on north‐eastern flank,
200 metres to the east of DGDD‐001 and approximately 100 metres (down hole) below
Conductor 1, with intersections including:

o 2.1m @ 4.5% Cu, 1.3g/t Au (DGDD‐005)
o 3.5m @ 5.1% Cu, 1.1g/t Au (DGDD‐005)
o 4.0m of massive sulphides – assays awaited (DGDD‐016).

● 35.2 metres of massive sulphides intersected in western‐most hole drilled to date,
DGDD‐021, 200 metres west of discovery hole DGDD‐001.

● Conductor 1 mineralisation now intersected over an east‐west strike length of at least
400 metres and is open along strike, particularly to the north‐east.

● 34.2 metres of oxide copper mineralisation (Conductor 1) intersected in northern‐
most diamond hole to date, DGDD‐020, located 200 metres NNE of discovery hole
DGDD‐001.

● 24.6 metres of massive sulphides (Conductor 1) intersected within a 34.7 metre
interval in hole DGDD‐019, 475 metres below the surface and 100 metres deeper than
the previous deepest mineralised drill hole (DGDD‐015 – Conductor 1).

● In‐fill and step‐out drilling continuing with three drill rigs currently operating.



SANDFIRE RESOURCES NL (ASX: SFR; Sandfire) is pleased to report further excellent results from its
100%‐owned Doolgunna Copper‐Gold Project in Western Australia, with drilling continuing to confirm
and extend both the DeGrussa and Conductor 1 Deposits.

The latest results have also highlighted a potential new zone of copper‐gold mineralisation on the
north‐eastern flank of the discovery, lying 100 metres stratigraphically below the Conductor 1 Deposit.

A total of 21 diamond core holes have been completed to date at Doolgunna, with diamond holes
DGDD‐022, ‐023 and ‐24 currently in progress (see Figure 2 attached – Doolgunna Diamond Drilling
Program). Three diamond drill rigs are currently operating at site.

 

[Zird]

Bell & Potter Brokers report 09/07/09 - Speculative Buy with 12 month SP Target in 12 months of $3.50. Go you little beauty. I hold a few but wish I had 10xs that amount.

 

[Zird]

Bell & Potter increase SP price target to $4 but increasing with copper
devel0pments
We maintain Speculative Buy recommendation and raise price target to $4.00
Incorporating the additional drilling results we have raised our assessed value to $3.97
(previously $3.38), and we now set a 12 month price target at $4.00 (previously $3.40).
We continue to highlighted the strong growth potential of the Doolgunna mineralisation,
and we would expect our assessed value to increase accordingly as drilling continues. In
addition, our assessed value has significant leverage to a stronger outlook for the copper
market, with our assessed value increasing to an upside case of $6.04 if we use a copper price of US$3.00/lb in line with the current spot price.

SANDFIRE ENTERS INTO MANGANESE AGREEMENT
WITH MINERAL RESOURCES
Sandfire to retain free-carried interest in ongoing exploration & development of prospective
NT Manganese Project and receive 30% of future profits before interest and tax
Sandfire Resources NL (ASX: SFR; Sandfire) is pleased to announce that it has entered
into an agreement with mining services and contracting company Mineral Resources
Limited (ASX: MIN) to fund the ongoing exploration and development of its highly
prospective Borroloola Manganese Project in the Northern Territory.
The agreement will see Mineral Resources – through its wholly-owned subsidiary, Process
Minerals International (PMI), which has a successful track record in the manganese industry
– solely fund and operate an exploration and development program at the Borroloola
Project, which covers more than 10,000 sq km.
Mineral Resources/PMI will also solely fund the full cost of any mining operation (including
all capital costs) established at Borroloola as well as meeting all associated operating
expenses of any manganese operations.
In return, Mineral Resources/PMI will be entitled to 70% of profits (before interest and tax)
flowing from the future sale of manganese products.
Essentially, under the agreement Sandfire will receive 30% of the profit (before interest and
tax) from all manganese operations undertaken by Mineral Resources/PMI and importantly
at no risk or cost to Sandfire.
The deal also provides for full accommodation of Sandfire’s agreement with Korean steel
maker POSCO, under which POSCO is entitled to buy 30% of all manganese produced from
any operation. POSCO is Sandfire’s largest shareholder with a stake of 17.5%.
The arrangement with Mineral Resources/PMI relates only to the manganese (and any other
minerals associated with the manganese at the time of extraction/production) and
importantly Sandfire maintains 100% ownership of all these tenements and 100% of the
rights to any other commodity on the tenements.
Sandfire Managing Director, Karl Simich said the agreement with Mineral Resources/PMI
gave Sandfire substantial exposure to the immense exploration and value potential of the
manganese at Borroloola at no cost. ........

KARL SIMICH
MANAGING DIRECTOR

 

[spectrumchaser]

15/10/9 7pm ASX release 7 pages
-key points
New Intersections confirm high-grade broad widths
of Mineralisation

*Maiden Jorc aimed at completion by early Q1 2010

*Drilling underway to test deep conductor 4

*Drilling to start next month on five strong
EM anomalies within 5km of DeGrussa,
they may contain repeats of Degrussa.

Next update from Bell and Potter will be interesting

 

[MOSSuMS]

I like the SFR story, but missed the dip to buy in. So I got into a small position in ALY next door instead after SFR noted three potential massive sulfide targets in their tenement.

I wonder how far these smokers could go and what opportunity there is for SFR to get more acreage? Anyone know who has the surrounding rights?

 

[MOSSuMS]

I like the SFR story, but missed the dip to buy in. So I got into a small position in ALY next door instead after SFR noted three potential massive sulfide targets in their tenement.

I wonder how far these smokers could go and what opportunity there is for SFR to get more acreage? Anyone know who has the surrounding rights?

Ok, I've found TLM on the other side of SFR to ALY. SRI is next to the east and ENT metals is to the south. Any other listed players there?

http://markets.news.com.au/Announcements/2009/1023/01002019.pdf - page 12 for map.

 

[MOSSuMS]

Ok, I've found TLM on the other side of SFR to ALY. SRI is next to the east and ENT metals is to the south. Any other listed players there?

http://markets.news.com.au/Announcements/2009/1023/01002019.pdf - page 12 for map.

A couple more - CYS is to the south east of SFR and PEK to the north west.

Strikes me that there is great opportunity for consolidation/co-operation in this highly prospective area with similar prospects - will SFR have a big enough lead and market cap over the others to drive that post their JORC?

 

[drillinto]

March 03, 2010

Sandfire Sets Early 2012 As The Target Date For First Metal Production From Doolgunna
By Our Man in Oz
www.minesite.com/aus.html

“The flag has dropped, let’s build a mine”. His metaphor might be slightly mad, but the message from Karl Simich is crystal clear. Sandfire Resources, the tear-away Australian copper and gold explorer he runs, has found enough material at its Doolgunna project to allow Karl to start counting down to first metal. It’ll be 10 quarters from now. If he is correct, and Simich hasn’t missed a beat since Doolgunna first hit the headlines less than a year ago, it will be one of the fastest developments in Australian mining history, and will bring back memories of the time when the old Western Mining Corporation discovered nickel at Kambalda in the 1960s and was mining there little more than a year later.
What’s making Karl so confident is a two word phrase that every miner dreams of hearing: “high grade”. At Doolgunna he has it, as confirmed in the all-important first official resource statement released last week. Measured at an initial 7.13 million tonnes of ore grading 5.2% copper, plus 1.9 grams of gold and 15 grams of silver a tonne, Doolgunna will start life with 372,000 tonnes of copper, 439,000 ounces of gold and 3.4 million ounce of silver. It is effectively an orebody grading the equivalent of 6.2% copper, or 12.3 grams a tonne of gold, under the rules of the Joint Ore Reserves Committee (JORC).

There will be more, though that’s a point that’s eluded some investors, perhaps under the influence of a nit-picking campaign being run by pencil pushers at the Australian Stock Exchange. In the hours after the release of the first JORC-code compliant resource Sandfire’s share price retreated from almost A$4.00 to as low as A$3.34. It has since recovered to around A$3.80, even allowing for the extra weight of a subsequent big capital raising, and in spite of a curious query from the ASX.

The exchange regulators were not interested in the content of the resource statement, just its timing, with the inference being that someone had leaked something. What particularly got up their noses was a small story in the Australian Financial Review newspaper that appeared ahead of the statement. The story came close to the mark on estimating the tonnes and grade at Doolgunna. Nothing then came of the ASX query, though, as the ASX seems to have overlooked the fact that some journalists are capable of adding up numbers themselves without waiting for someone else to do it for them. And it is interesting to speculate that a series of ASX queries that have been directed at Sandfire over the past 12-months might have had the effect of putting off some investors, potentially costing them profits as the stock has soared on an almost unbelievable trajectory, from a share price of just A5 cents at this time last year.

Undeterred, and certainly unrepentant, Karl is using the his first JORC-code compliant resource statement, compiled by independent experts, as the basis of a new pitch, as he heads off on a tour of North America and Europe to explain Doolgunna to investors, outlining its future as a mine and as a project with plenty of exploration blue sky. “Not too many people in Australia understand VMS [volcanogenic massive sulphide] orebodies,” Karl told Minesite’s Man in Oz, before jetting off. “It’s a style of mineralisation better known in Canada, which has a long history of developing VMS structures.”

Of the many events which occurred last week the most important from an investors perspective was not the tonnes, grade, share price or even the ASX query – it was the simple fact that Sandfire has its official resource statement in hand. That single document, which does not include results from 23 additional holes drilled into Doolgunna since Christmas, means that the clock is now ticking on the development of a mine, as new processes are initiated. One such is the obtaining of a mining lease from government, a trigger which starts the heritage and native title process, and sets a timetable on environmental and formal project approvals. That’s why Karl used the racing car analogy: “The flag has dropped”.

Events will now accelerate at Sandfire. It has cash in the bank courtesy of the latestA$50 million fully-underwritten share placement to professional investors, including the company’s major shareholder, the big Korean biggest steel maker, Posco. Posco is chipping in A$9 million to retain its 17.6 per cent stake. An additional A$15 million is also likely to come in from smaller shareholders, who are being offered a share purchase plan. Funds raised will pay for the pre-feasibility study which is getting underway, now that a JORC-compliant statement is in hand. That study, set for completion in the middle of the year, will almost certainly morph seamlessly into a definitive feasibility, leading to a start on mine development in the first half of 2011, and to first metal production in the first half of 2012.

Talking through the timetable gets Karl somewhat wound up, and three points arise from his enthusiastic exposition. First, that Doolgunna will get bigger simply because the initial resource statement does not include work already completed, let alone what’s underway now with a three drilling rigs on site. “What we have now is great, but it’s going to grow”, he said. Second, that Doolgunna will be a very profitable mine, yielding copper at a cash cost of somewhere between US60 cents and US$1 a pound, as a function of its grade, plus the gold and silver credits. “We can smell the cash”, continued Karl. Thirdly, that the Doolgunna orebody and its multiple mineralised lenses, is highly unlikely to be an “orphan”. Such is the nature of VMS discoveries elsewhere in the world, which contain a series of mineable structures, that Doolgunna is unlikely to be alone. “The completion of our maiden resource is a landmark event for Sandfire,” Karl said. “It provides a strong foundation for what we believe will rapidly progress as a high quality, long life mining operation in this emerging copper-gold province.”

Looking ahead, it won’t be long before the second resource statement comes in. This will include the results from the high-grade Conductor 4 deposit and extensions to the known ore lenses. There will also be ongoing drill results from the discovery zone and from regional work examining a series of look-alike structures, which, not to put too fine a point on it, represent the blue sky factor in the stock. Then will come the results of the scoping study currently underway, news of regulatory approvals, metallurgical test work, and the formal go-ahead for the pre-feasibility study that’s set to start in the middle of the year. All of which adds up to a news flow sure to keep the fire burning under Sandfire.

 

[BrightGreenGlow]

These guys rose again for a few days straight and today was around 7-8% I believe. I have heard a few mates say they are a great stock to get on and their latest drilling's have been finding a lot of gold.

 

[prawn_86]

These guys rose again for a few days straight and today was around 7-8% I believe. I have heard a few mates say they are a great stock to get on and their latest drilling's have been finding a lot of gold.

Any reason as to why they are so 'great'? The more analysis and details you provide the more discussion it will generate. Could one argue that they may be due for a pull back?

 

[jonojpsg]

Don't know what they're likely to try pulling out of the ground each year but as a comparison, PNA (PanAust) produce 60k tonnes eq of Cu a year at around $1/lb cash costs - even total costs are only $1.50/lb which means they've been making a cool $1.50+/lb or $200m a year.

If SFR can pull that off, that gives them a PE at current MC of about 3. So given the growth prospects and the quick potential lead in time to production, I wouldn't have thought that a PE of 8-10 as a target by end 2011, mid 2012 is unreasonable. Makes for a tripling in SP over the next 2 years which seems like a good buy to me.

In fact I think I might have talked myself into a punt - thanks Prawn

 

[johenmo]

Any idea as to what the trading halt could be?
DISC: have a few.

"Does it come with Wafers?"

 

[oldblue]

Any idea as to what the trading halt could be?
DISC: have a few.

"Does it come with Wafers?"

Announcement says ".....pending announcement of a resource upgrade."

Having a nice effect on OZL's Sp at present!

 

[johenmo]

Oops. Too quick a read (at work). Sounds good. Got out of OZL long ago - once my OXR shares got beaten to death.
Thanks

 

[alexc2005]

Good writeup in today's Eureka report.

They are apparently extracting copper so rich that it doesn't need processing before being sold.

Current share price: $6.93

Forecasted SP: $9.10-$11.50 12 month target.

Not holding, holding OZL though- and regretting that decision...

 

[notting]

And Now For Something Completely Different

Sandfire Resources NL (ASX: SFR – “Sandfire” or “the Company”) is pleased to announce that it has
signed an agreement with juwi Renewable Energy Pty Ltd (“juwi”) to construct a 10.6MW solar power
station at its DeGrussa Copper Mine in Western Australia

Good on em for having a go.
There's plenty of sun there!