YML - Yilgarn Mining

[spottygoose]

Refocused Yilgarn aims high
Mining News

Thursday, 30 August 2007

YILGARN Mining is escalating drilling at its Marillana iron ore project in Western Australia's Pilbara, in an effort to define a 100 million tonne resource.


Investors reacted favourably to the announcement, with shares in the company up 12c to 66c in morning trade.

Yilgarn also announced it will seek approval at November's annual general meeting to change its name to Brockman Resources to better reflect its Pilbara strategic focus.

Managing director Wayne Richards said the work completed had demonstrated the potential for mineralisation extensions in the project's north-west sector.

"Based on (completed) drilling, the board is confident in setting a target of identifying an iron ore mineralisation potential at Marillana of at least 100 million tonnes over the next 12 months," he said.

"We expect to be drilling continuously between now and the wet season [in northern Australia] and we are confident of taking some important steps towards achieving this objective during the balance of this calendar year."

Yilgarn also reported drill results from 13 of its 43-hole program, which demonstrated an average iron content of 58% with an average interval width of 18.3m.

The company has previously reported a mineralisation estimate for Marillana's north-west sector of 30 million tonnes, grading 58.4% iron.

The present drilling program is 75% complete and a JORC-compliant resource estimate is due to be announced in October.

The project is just north of Newman, in the heart of WA's Pilbara region, on edge of the Hamersley Ranges.

Tenements owned by BHP Billiton, Fortescue Metals, Rio Tinto and Hancock Mining border the 96 square kilometre project.

 

[gringokonyo]

"We expect to be drilling continuously between now and the wet season [in northern Australia] and we are confident of taking some important steps towards achieving this objective during the balance of this calendar year."

QUOTE]

I wonder if this means they've made signifincant progress towards restarting Carr Boyd later this year? It was meant to be the cash cow to progress Marillana.

 

[spottygoose]

Tonight SMH:

Yilgarn Mining shares jump

August 30, 2007 - 8:09PM

Yilgarn Mining Ltd has a bold exploration target at its Marillana iron ore project in Western Australia's Pilbara region after receiving encouraging drilling results.

The company aims to confirm an iron ore mineralisation potential of at least 100 million tonnes through expanded drilling programs over the next 12 months.

Most drilling to date has focused on a zone called the north-west sector.

Yilgarn, which recently appointed managing director Wayne Richards, said an initial resource for this area was scheduled to be completed by October.

Before taking the helm at Yilgarn, Mr Richards was the project integration and commissioning leader for BHP Billiton's iron ore division.

At the company's annual general meeting in November, shareholders will vote on a name change to Brockman Resources Ltd.

Yilgarn shares closed 15 cents, or 27.78 per cent higher, at 69 cents on Thursday.

 

[JJP]

Significanr story here from the Wall Street journal from last week end.....not picked up by the local press. Says that spot iron ore price are double that of contract pricing......ie prices paid for BHP, RIO and CVRD exports.

"....Spot iron ore prices have touched $100 mark for the first time. At the moment there is 100% difference between long-term and spot prices. “There will be substantial jump in benchmark prices in FY08,” he said...."


http://www.livemint.com/2007/08/26144316/Iron-ore-exporters-seek-benchm.html

YML is a little company with a lot of iron ore. Contract iron ore pricing effective from 1 st April 2008 may exceed the best expections of so called experts. Way undervalued.

From their web site....here is some info on cost of production.

Mining Study

An independent mining consultant has carried out a preliminary open pit mining assessment with the objective of indicating stripping ratios and mining costs that could be applicable to the North-West Sector (based on the current mineralisation estimate).

The assessment indicated a stripping ratio (overburden:mineralisation) of approximately 4:1 and an overall mining cost of $7.60 per tonne (i.e. total cost per tonne of the 30Mt mineralisation estimate). This assessment takes into account the “free digging” nature of the “valley-fill” material overlying the mineralised zone.

 

[powerkoala]

any comment on today's sp? it seems flat today.
looks like seller try to push price down.
is it just profit taking?
regards

 

[Mozart56]

any comment on today's sp? it seems flat today.
looks like seller try to push price down.
is it just profit taking?
regards

Funny games being played... looks like an acquisition and accumulation strategy to keep share price at around 70c.

 

[marklar]

any comment on today's sp? it seems flat today.
looks like seller try to push price down.
is it just profit taking?
regards

Yeah, it's because I picked it in the tipping comp : Just give it a month and the price will really move!

 

[juw177]

Funny games being played... looks like an acquisition and accumulation strategy to keep share price at around 70c.

And can you explain how you come to that conclusion? Otherwise, it just sounds like a ramp to me. Why does there need to be an explanation when a share price doesnt rise other than the simple fact that there are not enough buyers to sustain the rise?

 

[powerkoala]

well, all i see here is someone, somehow keep selling 30,000 shares to push the price. dunno if it just my imagination.
regards

 

[Mozart56]

well, all i see here is someone, somehow keep selling 30,000 shares to push the price. dunno if it just my imagination.
regards

As soon as one seller at 70c is bought out another one magically appears. Anyone else have any idea what is happening here? Are we imagining this? Is that the same seller and buyer, just churning through and picking up the die hards along the way?

 

[juw177]

well, all i see here is someone, somehow keep selling 30,000 shares to push the price. dunno if it just my imagination.
regards

First, you dont know if its just one person. And second, the simplest explanation is probably right: that person sells because he does not think the SP will go any higher.

 

[SevenFX]

Based on what I know a share will some times fill time when it rises to quickly, hence ping pong between buyers n sellers given they are equally matched.

I don't follow YML, but that may be whats happening as sp tracks sideways...

SevenFX

 

[Mozart56]

Based on what I know a share will some times fill time when it rises to quickly, hence ping pong between buyers n sellers given they are equally matched.

I don't follow YML, but that may be whats happening as sp tracks sideways...

SevenFX

Could be just that the recent annoncement hasn't set the world alight like many of us hoped it would. Decent volume today too. What happened to Carr Boyd? All very quiet there - perhaps it has been put on ice until the Ni price recovers?

 

[GOOGOOJEE]

Does anyone knows what happen to today's sp? dropped down to 65c???????!!!!!!!!!!! Why ppl selling at such a low price when the spec when the future of YML looks good............

 

[Mazrox]

This sat at the 68-69c level for most of the day. It's such a tightly held stock that it can move a long way up or down on not much volume. Most of the volume traded today happened this morning, so I suspect the drop this afternoon is just day traders who took a punt and lost.

Not everyone who buys and sells is looking at the long term outlook...

Maz

 

[Bullion]

I sold yesterday at .69 but been holding for a few months now. Figured I would take the money and maybe buy back in as I'm a bit weary of the volatility these days.

 

[Mozart56]

This sat at the 68-69c level for most of the day. It's such a tightly held stock that it can move a long way up or down on not much volume. Most of the volume traded today happened this morning, so I suspect the drop this afternoon is just day traders who took a punt and lost.

Not everyone who buys and sells is looking at the long term outlook...

Maz

Looks like it was an option holder who evercised 1.5M shares then dumped enough to cover the cost. Let's hope it wasn't a director. Most likely a seed investor who got some of the Dec 08 options

 

[tibby]

Looks like it was an option holder who evercised 1.5M shares then dumped enough to cover the cost. Let's hope it wasn't a director. Most likely a seed investor who got some of the Dec 08 options

So will we see a change of holding notice tomorrow? Directors have to pay the bills as well but it would be a little weird to see a director sell when we are so close to the JORC....all the great info we received in last announcement.....I just cant see it being a director......If you are after a top up this may well be the chance many have been looking for as this stock is so tightly held.... Market cap way undervalued and we cannot be to far away from the re-rating this one is will get (IMO)........

 

[powerkoala]

well, it is called volatility.
been in and out in 65-74c area.
today's market seems hard to predict.
that's why not many ppl hold for long term though.
ps : if director is selling, then sp will slide further for sure.

 

[kransky]

dont think its anything to do with YML.. i think market jitters have people nervous so a few sellers results in a falling SP..

a fair bit got sold today.. but there were people happy to buy at 68-69 cents all day.. its only late that it fell to 65.

i am waiting for the next set of drilling results. i hope the exploratory holes in the other gravity targets come good.. that will see the 100Mt target move much much higher!

holding and topping up with spare cash