YML - Yilgarn Mining

[Mozart56]

nickel lost almost 4% today. I dare say speculation that it will drop even more is whats causing the sell down...

Question is how long will it take to recover from this? WIth nickel now 60% of what it was a few weeks ago and investors fleeing the market at a an exponential rate are we talking months or years here? Heard that Stewart from NAB say today that it could take 2 years to recover from this? You'd have to think that if Ni continues to fall further you can kiss goodbye to Carr Boyd or Irwin Hills on feasability... that leaves Marillana.

Who knows maybe by the time YML are ready to dig it up the market will have recovered by then. I think patience is the key.. if you sell know you may never know!

 

[Mozart56]

Ahh it seems so long ago ...just 20 trading days!

From The West

"Yilgarn runs hard among iron players"

10th July 2007, 8:00 WST

Size does not seem to matter. On a day when iron ore giant BHP Billiton marched steadily towards a historic $40 share price, it was a Pilbara minnow that stole the show.

Shares in Yilgarn Mining have almost doubled to 83¢ since last week’s announcement of a new chief executive, in the process turning the Subiaco-based iron ore explorer into a $53.6 million company.

Yilgarn’s soaring share price, up 28.5¢ yesterday alone, prompted a “please explain” from the Australian Securities Exchange, although all the company could muster was to point to favourable press coverage following its recruitment of new chief executive Wayne Richards “and a greater focus on the company’s iron ore prospects”.

“It is therefore possible that the recent trading in the securities of the company could be related to increased awareness of the company’s activities,” Yilgarn said.

Mr Richards, a former BHP Billiton Iron Ore executive, has been given the mandate to develop Yilgarn’s Marillana deposit in the Pilbara."​

Got to remind myself that the fundamentals behind this remain the same .. but boy hindsight is a great thing! How long before it gets back there?

 

[mobcat]

Some good news starting to filter through now this one on mine box today

Key appointment for Yilgarn Mining

Drilling at Marillana


Yilgarn Mining Ltd has announced plans to significantly expand its exploration and development focus in the iron ore business in Western Australia following the appointment of a highly accomplished senior executive from BHP Billiton Iron Ore Division, Wayne Richards, as Managing Director.

Mr Richards – who since 2004 has held the key position of Project Integration & Commissioning Leader for BHP Billiton Iron Ore Division, with responsibility for integrating projects across BHP Billiton’s three Iron Ore Business Sectors (Mine, Port and Rail) – will now spearhead Yilgarn’s plans to advance its 100%-owned Marillana Iron Ore Project in WA’s Pilbara region.

The company recently commenced a 40-hole RC (Reverse Circulation) drilling program at Marillana to in-fill the North-West Sector of the prospect and underpin an initial JORC compliant resource. Yilgarn has previously reported a “mineralization estimate” for the North-West Sector of 30 million tonnes grading 58.4% Fe (64% Fe on a calcined basis).

Yilgarn’s founding Managing Director, David Burt, will step down from the position with effect from 2 July 2007 after five years at the company’s helm.

Yilgarn’s Chairman, Ross Norgard, said the appointment of Mr Richards represented a significant vote of confidence in the quality and growth potential of the company’s strategically located iron ore assets in the Pilbara region by one of Australia’s most experienced and accomplished iron ore executives.

“We are delighted to announce that Wayne has agreed to join us as Managing Director to advance the development of our assets to the next level,” Mr Norgard commented. “His appointment is the culmination of a planned management handover after David Burt indicated his wish to step back from front-line executive duties after five years with the company and its predecessor, Yilgarn Mining Pty Ltd.”

Before assuming the role of Project Integration & Commissioning Leader for BHP Billiton Iron Ore Division, Mr Richards fulfilled the roles of General Manager – Operations and Deputy Vice President of Boodarie Iron, a company that is owned and operated by BHP Billiton, where he was responsible for the management and coordination of a wide range of strategic business units.

Prior to that, Mr Richards held key executive roles with Anaconda Nickel, including Project Technical Manager – Corporate and Plant Operations Manager for Anaconda’s Murrin Murrin Nickel/Cobalt Project, as well as spending over 12 years as Production Manager and Business Development Manager with Queensland Nickel (now QNI – BHP Billiton).

 

[Bullion]

Old article? It says David Burt will step down from "2 July" so the article must have been written before then?

 

[countryboy]

looked at POL and YML some time back and chose YML. Despite POls recent rise i still think i chose the right stock. YML give all the signs of FWL- serious about mining

 

[JJP]

Right up to date story from ResourceStocks....(which by the way is an excellant product - annual subscription is a good idea for a present). Thank you to them.

The open cut 51% owned Carr Boyd nickel-copper project will extend over a period of only 7 months......so this will generate revenues of about $500 million at todays prices. They then plan to go underground....I think Carr Boyd
has been discounted by investors, but when you have a close look at the economics of the project.....I mean its fantastic for the $43 million company.


Bits and pieces of new information here...even for investors who know the company well.

________________________________________________________________

Yilgarn's multi-commodity play


Friday, 3 August 2007

YILGARN Mining has an advanced multi-commodity exploration strategy that is expected to generate cash flow early next year to hunt the company's major objectives. By Mark Mentiplay - RESOURCESTOCKS*



Yilgarn's project map

Yilgarn Mining plans to have the old Carr Boyd nickel mine in Western Australia back in production before the end of the year to underwrite deeper development and two other advanced nickel and iron ore projects in the state.

The three projects are all being whipped along by record commodity prices, the Carr Boyd nickel-copper sulfide resource, 70km north of Kalgoorlie, containing 8500 tonnes of nickel and 2900t of copper worth about $540 million at current prices.

Veteran nickel man and Yilgarn managing director David Burt told RESOURCESTOCKS the objective was to begin openpit mining at Carr Boyd in September, get into paying ore later in the year and mine out the first stage 90,000t at 1% nickel and 0.48% copper within the pit in eight months.

The cash flow would be directed towards deeper exploration and development, depending on the nickel and copper prices, at the company's prime Marillana iron ore project in the Pilbara and the Irwin-Coglia nickel-cobalt laterite and nickel-copper sulfide prospects, about 100km southeast of Laverton.

It is a fast-track strategy that has some big, long-term potential prizes.

Carr Boyd was mined back in the 1970s by Great Boulder, which was taken over by Western Mining before the falling nickel price forced its closure.

The open pit will take the top off two parallel nickel sulfide ore shoots or breccia pipes and hopefully pave the way to the postulated deeper source of those shoots.

"The concept we plan to test is that the sulfide breccia pipes are derived from a deeper source, perhaps associated with one or more conduits of the Carr Boyd Intrusive Complex. That is the major target at Carr Boyd, but depth could be a problem," Burt said.

Nickel and copper prices have also risen dramatically since the company farmed into the project two years ago.

Yilgarn is earning 51% from Consolidated Minerals subsidiary Australian Nickel Mines by spending $3.5 million by June 30, 2009.

Openpit mining studies have shown the potential for a significant increase in value if inferred mineralisation adjacent to the old stopes in Shoot-1 are included in the optimisation process.

To this end, further reverse circulation (RC) drilling has been completed ahead of a reassessment of the openpit resource and a scoping study is being carried out by Barminco that will include a two-stage underground development. Both reports were due about publication time.

Burt said the most likely option is for a decline off the bottom of the open pit into Shoot-1 and Shoot-2, followed by the deeper Shoot-4, depending on nickel and copper prices.

The company has also been conducting metallurgical test work to establish the suitability of Carr Boyd ore for treatment at a third party nickel concentrator, with an offtake agreement to follow.

"This is not Kambalda style ore. It has a lower nickel grade, but higher copper content and slightly different metallurgy," Burt said.

Yilgarn also has a 40% interest in a joint venture with Murrin Murrin laterite nickel-cobalt mine owners Minara Resources and Glencore company Glenmurrin, at the Irwin-Coglia project area, which has indicated laterite resources of 18Mt grading 1.07% nickel and 0.13% cobalt.

Pilot-scale cobalt upgrade test work is expected to be concluded shortly.

Yilgarn's prime Marillana iron ore aspirations in the Pilbara are well placed – a mineralisation estimate of at least 30Mt of plus-58% iron, hemmed in on all sides by heavyweights BHP Billiton, Rio Tinto, Hancock Mining and Fortescue Metals.
The project covers about 100 square kilometres, with the North West Sector mineralisation open to the northeast and containing relatively low combined impurities.

The BHP rail line runs right through the middle of Marillana and the BHP spur line to the Yandi iron ore deposit is just a couple of kilometres to the west.

Burt plans to meet the infrastructure owners in the region and says he is encouraged by the written comments of BHP Billiton iron ore president Ian Ashby recently that new producers in the region should consider the option of mine gate sales and rail haulage arrangements, under which BHP Billiton could carry other miners' ore using its locos and wagons.

A 40-hole infill RC drilling program is planned to begin in early June to lift the estimate to an initial JORC compliant resource by the end of July this year and test the northeast extensions.

Burt said the grade estimate, with an equivalent calcined grade of 64%, is comparable to existing mines at nearby Yandicoogina and Yandi, and Pannawonnica.

An independent preliminary openpit mining assessment has indicated a stripping ratio (overburden to mineralisation) of about 4:1 and an overall mining cost of $7.50/t, which takes into account the free digging nature of the valley-fill material overlying the mineralised zone.

The company also plans a sonic core drilling program in the North West Sector in June to collect core samples for ore characterisation and metallurgical test work to assess processing options.
Yilgarn has received several preliminary enquiries from Chinese steel mills regarding sales and possible direct participation in the Marillana project.

"This sonic drilling and ore beneficiation evaluation will allow more serious approaches to potential customers," Burt said.

Other targets within the licence will also be drilled, including areas where limited historical drilling by the previous owners, Rio Tinto-owned Hamersley Iron, yielded up to 6m at 63% iron.

On the gold front, Yilgarn is reassessing the remaining palaeo-gold potential at its 100%-owned Credo prospect, just north of Kalgoorlie, extending along the palaeochannel north of the old Rose Dawn minesite from which the company and co-venturer Placer Dome extracted a fast 40,000 ounces last year. Yilgarn's share of cash flow was a very useful $6.6 million.

The open pit is now mined out, but Burt said Rose Dawn was an important stepping stone for the company, which floated in August 2004, and there could be more.

Now, the company is hoping to repeat the successful quick cash flow strategy to fund the exploration and development of Yilgarn's larger nickel, copper, cobalt and iron ore projects.

 

[Mozart56]

What will come first? Announcement on CB or JORC for Marillana? Maybe Irwin Hills off-take.. so many irons, one must come out of the fire soon

 

[shinobi346]

The price took a hammering today. Anyone know if that 100k order put in early this morning for 52c went through or was pulled?

I was expecting it to be up by now with the ex BHP guy on board.

 

[noirua]

Starting to look interesting are Yilgarn as they trade at just 40.5 cents. Many small mining stocks are being slaughtered whatever their pedigree. Problem is, "catching the falling knife".

 

[gringokonyo]

Hi all. I'm just going back to something I was questionning some time ago, namely the SG value used by YML to calculate the 30MT. I was intrigued that FWL's JORC compliant magnetite resouce 25% Fe has an SG of 3.2, yet YML had only used an SG value of 3 for 58% Fe.

Anyway, Surferstu on HotCopper provided the following insight - 'The density of almost pure Hematite (around 69%Fe) is a little over 5. The density will trail off as impurities (Silica) are added but a guess for 60% Fe hematite would be around 4.5.'

On this basis, YML's 30MT is quite possibly going to be quite a bit more. No wonder they said at least 30MT. It appears they're being very conservative on estimating their initial resource in the northwest sector.

Shame I'm in no position to top up as I topped up last week when 52 cents seemed good value. Oh well, longterm a few cents here or there aren't going to matter too much.

 

[nioka]

The price took a hammering today. Anyone know if that 100k order put in early this morning for 52c went through or was pulled?

I was expecting it to be up by now with the ex BHP guy on board.

According to the westpac daily chart there were no sales over 42c so I suspect it was an attempt to ramp the stock and the order cancelled last thing.

 

[shinobi346]

You must be looking at a different day. I was asking about Mondays trade and I know the price went over 42c because I bought it for 53, which in hindsight I caught a falling knife. I was just wondering if that person caught a bigger one.

Oh well, either way no regrets. I love YML, with 2 reports on the way and a ex BHP head as MD it should do alright when the market stabilises.

 

[nioka]

You must be looking at a different day. I was asking about Mondays trade and I know the price went over 42c because I bought it for 53, which in hindsight I caught a falling knife. I was just wondering if that person caught a bigger one.

You are right. I thought your post was todays, I was looking at todays sales where the top was 42c. YML will have to come up with some good news for there to be any improvement.

 

[Gurgler]

Article in today's Age entitled "Yilgarn gets $750m line from China"

Yilgarn said Chinese groups, including the steel producers Sinosteel and Ansteel and the infrastructure builder China Railway Engineering Corporation, had committed to provide $750 million in equity funding if it wins WA Government backing for its plans.

The equity is a crucial part of a funding mix for Yilgarn's $3 billion in planned infrastructure that includes a rail network connecting mines east of Geraldton to a company-developed port at Oakajee, 17 kilometres north of the mid-west town.

Let's hope this encourages enough interest to spark a recovery in the SP.

Source: http://www.theage.com.au/news/busin...line-from-china/2007/08/19/1187462083526.html

 

[Crash]

That news is for a different Yilgarn company is it not? Yilgarn Infrastucture perhaps? May be some small flow on effect i guess.

 

[Bullion]

Ummm... That is Yilgarn Infrastructre, not mining...? Completely different group I believe?

But good day for YML (as most stocks today)

 

[Gurgler]

Sorry guys, jumped the gun. In the back of my mind I had that a change of name was on the cards - but forgot to engage the brain, before releasing the keyboard fingers!

 

[JJP]

Company say they will release results of their infill program which commenced in June......around August/Septemeber. So we are very close now.

A JORC iron ore deposit of at least 30 million tonnes, has this company placed really in front of all other 20 or so iron ore exploration companies in West Australia. Once you have got a JORC compliant resource, a deal can then be put in place for railfeight of the iron ore to port. Negotiations can commence for funding, they have Asian interest already.

A bankable feasible study can commence and firm contract put into place. All this with their JORC out within days.

What other of these small companies in WA has that. At least not using rail with one of the big playes in the Pilbara. MMX and MIS acknowlege that profits are very much capped by road transport of iron ore to port. You need rail, other forget about it.

I don't know whats wrong with this stock. 30 million tones already is worth about $1.6 billion. YML have a BHP rail line going right through their holdings, and FMG new rail is 20 km to the north.

 

[tibby]

I don't know whats wrong with this stock. 30 million tones already is worth about $1.6 billion. YML have a BHP rail line going right through their holdings, and FMG new rail is 20 km to the north.

Hi JJP.........as a holder I love looking at the Marillana Valley on a map...great neighbours, BHP railroad runs right thru valley, and if needed--major road network also running right thru the region. Makes everything just that little bit easier!!

 

[Mozart56]

Hi JJP.........as a holder I love looking at the Marillana Valley on a map...great neighbours, BHP railroad runs right thru valley, and if needed--major road network also running right thru the region. Makes everything just that little bit easier!!

Some frenzied after 4pm buying today... anyone else see the volume take out at 59.5c? Sentiment building on this one now.