VRE - View Resources

[kenworth69]

I just cannot fault this stock. It looks good on all fronts.


Gold pour expected soon and the release of the BFS due any day, which appears to be a given.


It almost seems bullet proof to me.


Further upside from undertaking contract processing, option over the 152,000 ounces up the road, good exploration upside, potential to jv further deposits through leveraging their processing capacity etc, hedged diesel, very respected MD.

It just seems to have all of its bases well covered.

 

[Gar]

A few stops would have been hit there I would imagine, a bit of a shake out before the bank feasability study?

 

[chops_a_must]

A few stops would have been hit there I would imagine, a bit of a shake out before the bank feasability study?

Yeah. I think a few people expected the BFS to be out last week, which would explain some of the selling. However, by my reckoning it is due out this week or next, looking at their announcements. But this often happens, you get the market makers shaking out nervous holders before a good announcement to drive the price down. Just look at AED. The important thing here is the speed at which it gets bought from its lows. There is never a shortage of buyers on the dip which is a very important sign.

Cheers,
Chops.

 

[surfingman]

The first gold pour at bronzewing announcement has been released to market..... a great day for VRE share price

 

[chops_a_must]

The first gold pour at bronzewing announcement has been released to market..... a great day for VRE share price

Yus. Looks like I was right with my above comment.

View pours first gold at Bronzewing
View Resources Limited (ASX:VRE) is pleased to announce that it has joined the ranks of Australian gold producers by pouring its first gold at the historic Bronzewing Project in North Eastern Goldfields of W.A. This event marks a significant milestone in View’s history as it moves towards becoming a mid-tier Australian mining house.

“We are extremely pleased with the progress that has been made at Bronzewing and this gold pour is the culmination of a great deal of effort.” said Managing Director Tim Gooch. “The entire team has worked extremely hard to achieve our stated goal of starting ‘on time and on budget’. In the current market this is an exceptional result and one that underlines the strengths and capabilities of both the management and operational teams within View”.

Mining commenced at Bronzewing from early April, whilst the plant refurbishment was completed and final staffing secured. The Bronzewing plant will ramp up to its full 2.3mtpa nameplate capacity within three months, ensuring the mine operates at its peak efficiency. The recent addition of a further 62,000 oz of reserves as reported in April has increased the initial Bronzewing cash returns to around $100M, with the overall cash margin increasing close to $300/oz. Based on current defined ore reserves the initial mine life will be 41/2 years, producing an average of 120,000 oz gold per annum. However, View fully expects this to extend via a combination of an aggressive exploration programme, ongoing reviews of existing resources and third party sources in the region.

With Carnilya Hill set to produce nickel within the second half of the year, the Company is well placed to be a multi-commodity, multi-site, producer by the end of 2007.

Why on Earth would you be selling this today? It has monumental volume... and just in case you had any doubts about Carnilya Hill, there it is.

Will now be looking for another strong run later today and tomorrow on volume.

 

[Gar]

Why on Earth would you be selling this today? It has monumental volume... and just in case you had any doubts about Carnilya Hill, there it is.

God knows chops, I gave up trying to understand the mindset of people a long time ago....

With Carnilya Hill set to produce nickel within the second half of the year, the Company is well placed to be a multi-commodity, multi-site, producer by the end of 2007

/\ I like the way they always slip gems like that into their announcements

 

[kiwiloe]

Could someone please confirm what the payup figure on the 2008 otions is? tried to research it today but hit dead ends everywhere.

 

[nizar]

Could someone please confirm what the payup figure on the 2008 otions is? tried to research it today but hit dead ends everywhere.

20c expiry in June 2008.

VRE looking good for new highs next week IMO..........................

 

[kiwiloe]

thanks, Nizar. I had read it was 20 cents, but thought it may have been more as the diff. between the options and main share price is usually a few cents less than the payup amount. In VRE's case, it's 19 cents at the moment (24 vs 43 cents).

Now going to do more research on whether they have promising prospects other than the ones coming into production, Bronzewing and ?Carnilya Hill

 

[Sprinter79]

Geez, its dieing in the **** today. Down nearly 5% today, and 10% in about a week. Low volumes though...

 

[chops_a_must]

Geez, its dieing in the **** today. Down nearly 5% today, and 10% in about a week. Low volumes though...

I wouldn't worry about it too much though. It's behaving as it should. Two times it has dipped and two times it has been snaffled up off its lows since the last breakout. Now a higher low is in place which is nice.

Fundamentally there is no reason for it to be trading at the levels it is. Its market value is less than its NPV, and given it is now a producer, it theoretically should be trading on its projected earnings ratio. Which is between 1 (brokers calcs) and 4 (mine) at current levels.

Other than that it has bounced off some nice Fib levels, and this down move looks to be an exhaustive move on low volumes as you say. Looks to still be within the trend line, although in the lower half of it. And with gold and nickel bouncing on Friday night, I would be very surprised if this didn't do the same come Monday morning.

It appears to be under a lot of peoples radars though. And there is absolutely no value placed on the potential for future finds on its highly promising prospects, nor their large mill which has enormous spare capacity for the many juniour companies to potentially use.

Cheers,
Chops.

 

[chops_a_must]

Also, of note, is in the resource statement dated 29th March, the last drill hole (only 2 weeks ago) was the most promising, with further drilling expected. There is plenty of potential for resource upgrade on this mine (which MCR has a great track record of producing).

Hehehehehehe.

It now looks highly likely that the previous estimate of contained nickel (~16,000t) could now be increased by more than 50%. And even more drilling is expected. So this could end up being a hugely underestimated deposit.

Anyway, View's announcement on the subject (it also explains the delay in the BFS):

Major Extension to Carnilya Hill Nickel Mineralisation
Outstanding results from the current drilling program at View Resources Ltd’s (ASX: VRE) Carnilya Hill Nickel Project Joint Venture (JV) has opened up the possibility for a major resource increase. The latest drill-hole has intersected massive sulphides grading over 17% nickel.

This latest hole is 280m down-plunge of the last substantial intersection and 230m beyond the limits of current mineralisation on the known resource of 328,440 tonnes @ 4.9% nickel for 16,100 tonnes of contained nickel metal.

The results come as the JV moves towards a development decision at Carnilya Hill within the next four weeks. Tenders for the underground mining have been received and will be compared to a possible owner mining operation. The JV is still targeting an early next quarter start.

With this latest intersect at just over 600m vertical depth and no exploration beyond, Carnilya Hill remains one of the most under-explored Kambalda nickel tenements and remains an extremely exciting prospect for the JV. Drilling has already commenced to follow up this result.

View’s Managing Director Tim Gooch stated “This result shows a real potential to significantly increase the current nickel resource and more importantly it leaves open the real possibility of a further extension down-dip. Current defined resources are shallow in comparison to other successfully operating Kambalda nickel mines, many of which are down below 1000m. There is nothing to suggest that there is a natural cut-off so it’s wide open and in the current market we couldn’t have timed it better to target a mining start up next quarter”.

Drill-hole CMD026 is 280m down plunge and west of drill-hole CMD028W1 (2.79M @ 8.61% Ni) with a narrow zone of very high tenor massive sulphide mineralisation, indicating a major extension to the channel structure at Carnilya Hill. Down-hole electromagnetics indicate the presence of a strong in-hole/off-hole EM anomaly centred below the new intersection and extending both up-plunge and down-plunge to the east and west.

The new hole intersected 0.36 metres @ 17.55% nickel from 698.74 metres down-hole, whilst disseminated sulphides in the adjacent picritic ultramafic rock returned a further intersection of 1.28 metres @ 1.63% nickel from 700.50 metres. Both intersections are close to true width.

Gooch added, “With our Bronzewing gold mine already in production and Carnilya Hill following close behind, View is likely to be generating strong revenue from both operations by the end of the current calendar year. With positive cash flows in the short term, View is in an extremely strong position moving forward to achieve our strategic goal of becoming Australia’s next mid-tier mining house”.

MCR's slightly more informative announcement:

Step-out Drill Hole Intersects High Tenor Massive Sulphides 200m Beyond Current Resource
Kambalda nickel producer Mincor Resources NL (ASX: MCR) has identified the potential for a major extension to its
70%-owned Carnilya Hill nickel deposit in Western Australia after intersecting massive sulphides grading over 17% nickel down-plunge of the existing deposit.

The new result comes as Mincor moves towards a development decision at Carnilya Hill, expected within the next four weeks, as part of its aggressive nickel growth strategy in the Kambalda region.

Mincor said today (Tuesday) that it had completed a 792.4-metre deep diamond drill hole on a major step-out position at Carnilya Hill, with the new hole intersecting a narrow zone of very high tenor massive sulphide mineralisation some 230 metres beyond the limits of the current mineral resource.

The result indicates a major extension to the mineralised channel structure at Carnilya Hill, with the new intersection located 280 metres down-plunge of the last substantial intersection (2.79 metres @ 8.61% nickel in CMD028W1) in
the mineralised channel. Recently completed down-hole electromagnetics indicate the presence of a strong in-hole/offhole EM anomaly centred below the new intersection and extending both up-plunge and down-plunge to the east and west.

The new hole (CMD026) intersected 3.11 metres @ 3.66% nickel, from 698.74 metres down hole. This includes 0.36 metres @ 17.55% nickel from 698.74 metres down-hole, followed by 1.47 metres of unmineralised ultramafic rock
and then 1.28 metres @ 1.64% nickel from 700.57 metres. All intersections are close to true width.

“This is an exceptionally interesting result, both in terms of the very high tenor of the mineralisation and the additional resource potential indicated by what appears to be an almost 50% increase in the length of the mineralised channel,” said Mincor’s Managing Director, Mr David Moore.

“Because of the potential to rapidly increase the resource inventory at Carnilya Hill, follow-up drilling has already commenced to confirm our interpretation of these new results,” he added. Mincor previously announced a Mineral Resource for the Carnilya Hill Project of 328,440 tonnes @ 4.9% nickel, for 16,100 tonnes of contained nickel metal.

The new intersection indicates that the dip of the stratigraphy at Carnilya Hill progressively flattens with depth, and is estimated to be only 15 degrees at the location of the intersection. Because of this shallow dip, the long section used to illustrate the geology at Carnilya Hill has been supplemented by the attached plan view, which assists in understanding the overall shape of the channel structure.

Mr Moore said a full owner-mining study was currently underway on development of the Carnilya Hill Project, and that this would be compared to the results of contract mining tenders – bids for which had now been
received.

“We expect to make a final development decision within the next four weeks,” he said. ”We are confident that we have a robust nickel project at Carnilya Hill, and – with this in mind – we have, after consultation with our joint venture partners, already placed orders for certain long lead-time items so that we can fast-track the development of this project during the second half.”

“Over the next few weeks we will select either an owner-mining operation or choose a winning contract-mining tender, with a view to starting mine construction early in the next quarter,” Mr Moore added.
...

And the miningnews.net article on the matter:

STEP-out drilling at Mincor Resources' emerging Carnilya Hill has returned grades of more than 17% nickel, extending the strike of the deposit by 200m in the process.

The latest hole at the project near Kambalda returned 3.1m at 3.66% nickel, including a 0.36m section grading 17.55% nickel.

The hole was drilled around 200m southwest of the current limit of resources at Carnilya Hill, which currently weighs in at 328,440 tonnes at 4.9% nickel.

While Mincor will formally make a development decision over Carnilya Hill within four weeks, a go-ahead appears to be a fait accompli.

Mincor managing director David Moore was in Sydney this morning and could not be reached for comment, but in an announcement he said the company had begun follow-up drilling in an attempt to increase Carnilya Hill's resources.

"This is an exceptionally interesting result, both in terms of the very high tenor of the mineralisation and the additional resource potential indicated by what appears to be an almost 50% increase in the length of the mineralised channel."

Mincor has already ordered "certain long lead-time items" to expedite the project's commissioning, while a decision over whether to use mining contractors will be made within weeks.

Mincor currently operates four mines – Miitel, Mariners, Redross and Wannaway – to the south of Kambalda, and has added to that position in recent times through the acquisition of the operating Otter Juan nickel mine and the advanced McMahon and Durkin nickel projects.

The company, which has produced almost 80,000t of nickel out of the Kambalda region since 2001, is aiming to achieve an annual production rate of 20,000t of nickel.

Obviously, I hold.

 

[Sprinter79]

He's up 12% on the day thus far. Go you good thing!!!

Is it enough to push through resistance? If I was a gambling man (hahahahaha) I'd put my money on yes!

 

[nizar]

Good action today.

Been sideways for the better part of 2 months now.

Needs to break a move but to do that we need breakout continuation 2mrw and a close above 45c.

THen its game on.

 

[nizar]

Good action today.

Been sideways for the better part of 2 months now.

Needs to break a move but to do that we need breakout continuation 2mrw and a close above 45c.

THen its game on.

Looks like its game on
Nice action today, blue skies now

Continuation of tuesdays candle and previous resistance at 50c didnt seem to be a problem.

The volume was there as well.

Chops you must be having a good day with ESG/VRE performing.

Im looking 4ward to next week. Should run being a blue sky break.

 

[Gar]

Today was great, 46c didn't pose much of a challenge at all really

I wonder what the deal is with Daniel Tuckers resignation though?

 

[chops_a_must]

Looks like its game on
Nice action today, blue skies now

Continuation of tuesdays candle and previous resistance at 50c didnt seem to be a problem.

The volume was there as well.

Chops you must be having a good day with ESG/VRE performing.

Im looking 4ward to next week. Should run being a blue sky break.

Oh I've had a great week. Was in Melbourne for a week, and my portfolio goes up over 10%, mainly thanks to VRE. Should have stayed there longer! Lol!

VRE looks to have been a good one for the stock tipping contest, apparently at one point giving me third, lol! But everything looks to be travelling according to plan, the wave count looks to be valid so far... and I would be looking at an end in this run somewhere between 59 and 64c. Of course I don't think that is where the fundamentals will eventually leave it... but it might be the short to medium term technical stumbling block.

Cheers,
Chops.

 

[Col Lector]

Re the VRE trading halt today....any thoughts?? I have been expecting Mincor to make a move on VRE to mop up the 30% of the Carnilya Hill project. Other alternatives?
I also noted that WSA came out of trading halt having raised $225 mill see the below. Are they interested in the smaller Kambalda players?They have a history of wanting to expand within Oz having originally taken a stake in Fox Resources...before changing their minds

Western Areas raises $225m through bonds
June 19, 2007 - 1:56PM
Western Areas Nl says it is looking at possible acquisition opportunities after the nickel miner raised $225 million through convertible bonds.
The West Australian miner said the funds would be used for "possible nickel project and corporate opportunities", along with exploration, restructuring of the hedge book and the potential construction of a concentrator plant.
"The success of this convertible bond underlies Western Areas' growth potential and the financial markets bullish outlook for nickel," managing director Julian Hanna said.
Western Areas' core assets are the Flying Fox mine and surrounding deposits in the Forrestania Belt of Western Australia, but the company has been slowly building its presence in Canada.
The company began production at its flagship Flying Fox mine in October and is ramping up to produce as much as 12,000 tonnes of nickel-in-concentrate during calendar 2008.
"This transaction positions the company to assess and bring on potential additional production at Diggers South and New Morning/Daybreak (in the Forrestania Belt)," Mr Hanna said.
"Additionally it allows Western Areas to expand into other strategic and quality projects in both Australia and Canada."
The convertible bonds carry a coupon of eight per cent per annum and are convertible into Western Areas shares at an initial conversion price of $8.16 per share.
The bonds are due by 2012.
By 1338 AEST Tuesday, Western Areas shares had dipped 10 cents to $5.53.

© 2007 AAP

 

[chops_a_must]

Re the VRE trading halt today....any thoughts?? I have been expecting Mincor to make a move on VRE to mop up the 30% of the Carnilya Hill project. Other alternatives?

Doesn't look like anything is happening within the country Col.

Just got a friendly call back from the investor relations person thingy dingy.

Call him yourself on 9382 8300 if you want confirmation of the following.

I am assured it is nothing disasterous, bronzewing is still producing gold, and everything is progressing nicely.

HOWEVER, and this seems strange to me... VRE will likely remain in this state until the end of NEXT WEEK as the MD and the other key board members are overseas... And it appears the announcement has something to do with this fact.

So perhaps we are looking at a serious capital injection? I wouldn't be completely impressed... but they could make it work if they got into gear chasing new projects. That would be ideal. Management hasn't disappointed yet, and I would assume they would understand development as an imperative.

Project number one may become altering their hungry mill to accept different ores for processing. Given the amount of juniours in the area needing processing. Not sure if this could be done though...

Anyway, cheers,
Chops.

 

[Col Lector]

Interesting Chops! Unless they have had something sprung on them whilst OS, and they are having such a good time that they are unwilling to return. The VRE board werent on Packer's wedding invite list??
WSA (see previous post) does have a big Canadian presence these days...but that is flimsy speculation.
I did notice MCR had a fair bit of buying interest and volume this morning. Despite the nickel price tanking overnight...again....they were up over 2% at one stage. Down 1.35% now. The last few days has seen significant buying in the afternoons erasing morning losses. I know...because I offloaded a parcel into the falling market the other day!