Breakaway - The next CDU!

[tricha]

Guys could you please give me a little help on this One

Breakaway Resources - I put in a buy today, at .029c looking at all their recent data, looks promising and they have tenants around Kambalda.

Total gamble. All views, thoughts, and opinions appreciated,

Could this be the new JBM

Cheers [B)][}:)]

[tricha]

No views on this one, oh well I stick to this caculated gamble.

Wrote to Breakaway - regarding Eloise copper mine, which is now owned by Barminco which is a private company.

Breakaway sold it to them and gets 30% of any profit - reply from Breakaway is early 2006 Breakaway will start getting money, which will be a big help.

Lionore still interested in them and putting in more money.

Looks like they are now re-organised and it could turn around.

Only have to go to 6c and the rewards are 100%, and if they strike a good patch of nickel, the skys the limit!

Cheers[B)][}:)]

[tricha]

Hot copper -primed to go -Copper Royalties to Commence for Breakaway

Breakaway project locations


Base metals explorer, Breakaway Resources Ltd expects to accrue the company’s first copper royalty payments from the Eloise Copper Mine in Queensland, in the current September 2005 quarter.

The royalty arises as a result of Breakaway’s decision to retain a 30% net profit royalty when it sold the mine to Barminco Investments Pty Ltd in February 2004.

The commencement of the royalty coincides with the formal completion this quarter of the company’s major restructuring program. This has positioned the now cashed-up Breakaway as 100% owner of the Miranda and Kambalda West nickel projects, both in Western Australia, the Eloise royalty stream and 100% ownership of more than 300sqkm of prospective copper and base metal tenements around the Eloise Copper Mine.

The exploration tenements retained by Breakaway around the Eloise Copper Mine cover several major structural corridors along the eastern margin of the Mt Isa Block - one of the world’s most prolific base metal provinces.

“The royalty payments are a significant cash development for Breakaway and its shareholders and reflect the continuing strong market conditions for copper over the past 6-12 months,” Breakaway’s Managing Director, Mike Mulroney, said.

“With this underlying cash flow, combined with the $3.5 million investment in our company by LionOre Australia Ltd under the recently approved converting note issue, Breakaway is well placed as a junior company to aggressively advance its existing projects at Miranda, Kambalda West and Eloise while retaining the financial capacity to pursue new growth opportunities,” he said.

- 23 Sep 2005

[tricha]

Oh forgot to mention, expect Lionore to take them out real soon!

[tracker]

looking at this tricha, 4 seems to offer quite alot of resistance
Volume nothing spectacular at this stage, BUT a break of substance ie volume, strength etc might present an interesting opportunity
alarmed and watching

stops as laways

tracker
ps why the thought that Lionore might take them out??

[tricha]

Hi Tracker

sorry for the delay to get back onto this one

Lionore if they consider a bargain will as per usual buy the whole lot.

Missed something as per report on them recently.

Sold Eloise to Barminco in Feb 2004, with 15.1 million debt to be paid before any return from their 30% holding.
Because of the high copper prices as of June 30th, 14.1 million debt paid.

Bloody great going! In 16 months 14 million debt paid, so roughly $875,000 a month profit on operations.

So the 1 million left should be well paid for as of Mid August.

To the point -Breakaways earning 30% a month, will be about $260,000 a month on my calculator, in their bank.

Looking foward to their report next week!
Hence maybe more interest in them!

[Packersoldkidney]

Looks good, Tricha: am watching now.

Cheers.

[tricha]

Hi Packer

Cottoned onto this today, although a few months old, gives an idea of a speculative stock. When this was written, Cu about $1.65, now around $1.80
Makes interesting reading!

http://www1.breakawayresources.com.au/upload/docs/Breakaway_Argonaut_Equities_Research_6_August_05.p df

Cheers [B)][}:)]

[tricha]

Excellent result out today and at the current CU prices and a full quarter next time, considerable payment upside from Eliose.

They stll have all the tenants around Eliose and the new magnetic survey has pinpointed new priority drill targets.

Looks like they are getting their act togeher at last, all we need now is a find similar to JBM at Kambelda as well!

[tricha]

Eloise dividend from Barminco should be well over a million for this quarter at these copper prices.

Something is happening, price and volume slowly starting to move and no news.

With all these tenants aound Mt Isa, they must have some uraniun as well ???

[B)][}:)]

[yogi-in-oz]

:)

Hi folks,

BRW ..... "Gannsters" may soon be looking for some
signs of movement in this stock ..... :)

Up front, no measure of fundamentals has been used
in this analysis, so be sure to do your own research.

From ASX website:
"Mineral exploration and development for gold, nickel
and copper and production of copper, gold, limestone
and quicklime(?)."

-----

Technically, BRW listed on the December solstice 1993
and has had the usual roller-coaster ride in the share
price, experienced by many junior explorers.

Right now, BRW is priced at the same level it was in
May 2003, where it subsequently staged a rally of
about 150% to the high at 9.4 on 14102003.

Since then, the chart below tells the story, making
a rounding bottom out of the 2005 lows and setting
itself up for another rally ..... yes ???

http://www.ttrader.com/mycharts/display.php?p=38620&u=yogi_in_oz&a=Starcode%20Traders&id=674

Looking ahead, our PRICE targets will be 5.2 and
7.8 by 26 May 2006 ..... a high???

Our time cycle analysis will have us alert for
news/moves in February 2006, around:

14022006 ..... minor

24-28022006 ..... significant news ... finance-related?
2 positive cycles here.

BRW has more than 500m shares on issue and it
finished last week, ticking up on higher volume.

have a great weekend

yogi

:)

[yogi-in-oz]

:)

Hi folks,

BRW ..... nice announcement near the close today,
with another $2m in royalties to be in the coffers,
by 31032006 ..... !~!

happy days

yogi

:)

[tricha]

Not bad Yogi

She's on the move and moving with a great deal more emphasis on drilling identifed targets!

[B)][}:)]

[yogi-in-oz]

:)

Hi folks,

BRW ..... positive cycles kick-in, as per post
above ..... :)

Market wakes up and has BRW ticking up
nicely now, with good supporting volume.

happy days

yogi

:)

[yogi-in-oz]

:) :)

Hi folks,

BRW ..... another nice move, today ..... :)

Figure it will run into a brick wall, around
5.2 cents on Monday .....???

happy days

yogi

:)

[tricha]

2\3 thirds of this quarter gone with copper over $2.20 a ilb, expect royalties of close to 2.5 million this quarter if the price continues.

And now targeting quality drill targets. Only one way to go now ...........

Be interesting to see who their new CEO is or will they be taken out,totally by Lionore.

Cheers [B)][}:)]

[tricha]

Expecting Lionore to take BRW out soon, same as what happened to TIR today.
More consolidation about to happen. Breakawy has soom excellent ground around MtIsa , money pouring in from Eliose Copper mine and a recent magnetic survey has high lighted some excellent drill targets.
Lionore own about 20% already, BRW

Bring it on [B)][}:)]

Shanghai Copper Futures Rise to Record Amid Supply Shortfall, Disruptions
March 28 (Bloomberg) -- Copper futures on the Shanghai Futures Exchange rose to a record on speculation supply won't meet surging global demand amid mine disruptions and falling stockpiles.

Inventories monitored by commodity exchanges in London, New York and Shanghai slumped 7.7 percent last week to 190,236 metric tons, according to data compiled by Bloomberg. That's equal to less than five days of global usage. Global copper demand will grow 5.9 percent this year, exceeding production for a fourth consecutive year, consultant Bloomsbury Minerals Economics Ltd. said last month.

``Inventories fell because of real consumption and the economic growth in the U.S. and China,'' said Shen Haihua, vice president with Southwest Futures Co., by phone. ``There are not many reasons to be bearish.''

Copper for delivery in June gained as much as 430 yuan, or 0.9 percent, to 49,420 yuan ($6,159) a metric ton on the exchange. The contract traded at 49,140 yuan at 11:30 a.m. local time break. Copper for delivery in three month climbed as much as 1.6 percent to a record of $5,332 yesterday in London.

Global growth will expand this year by more than the 4.3 percent rate the International Monetary Fund projected in September, IMF Managing Director Rodrigo de Rato said March 15.

U.S. Economy

The U.S. economy will grow at a 4.7 percent annual rate from January through March, the fastest in more than two years, and then slow to 3 percent by the last three months of the year, according to the median estimate of 74 economists surveyed by Bloomberg from Feb. 27 to March 7.

Copper for cash delivery in Changjiang, the biggest spot market in Shanghai, rose as much as 250 yuan, or 0.5 percent, to 49,550 yuan a ton today.

Copper consumption in China, the world's biggest user, will rise 8.3 percent this year, according to a government forecast. The nation's period of peak consumption of the metal has started and will last until May as processors replenish stockpiles, analysts including China International Futures (Shanghai) Co.'s Cai Luoyi said.

About 1,000 workers left Grupo Mexico SA's La Caridad copper-molybdenum mine on March 24, the second strike this month, to demand better safety conditions. The strike entered a fourth day yesterday, union official Jaime Martinez said. La Caridad, Mexico's second-largest copper mine, produces 250,000 tons of refined copper a year.

Newmont Mining Corp., the world's second-biggest gold miner, said last week that 45 million pounds, or 20,400 metric tons, of its share of output at Indonesia's Batu Hijau mine will be deferred to future years because of unstable earth conditions.

Hedge-fund managers and other large speculators increased their net-long positions, or bets prices will rise, in Comex copper futures to 3,010 contracts in the week ended March 21, U.S. Commodity Futures Trading Commission data showed on March 24. Net-long positions more than tripled from a week ago.

Copper Imports

Imports of copper and its alloys into China plunged 50 percent in February, China's Customs General Administration said yesterday. The drop marked the fifth straight month of declines. Imports of the metal in the two months ended February dropped 43 percent to 132,308 tons.

Chinese traders have been reluctant to import copper as prices of the metal in Shanghai have been below the cost of shipping in the metal. In addition to the London copper price, Chinese users have to pay a 17 percent value-added tax, 2 percent import tax, premiums and freight charges.

Copper for delivery in three months on the London Metal Exchange was bid at $5,302 a ton and offered at $5,

[tricha]

BRW heading for astrospace as well - big move today and excellent volumes, maybe someone is going to put a block in on Lionore.[?][?][?]
Still operating without a CEO, imm, maybe they will not need one.

Profit from Eliose will be going up by the day with these prices and how many other Elioses in their tenants near Mt Isa.[?][?][?]
Hopefully will be drilling their new targets soon.

Copper ¬ Apr 10, 04:12
Bid/Ask 2.6566 - 2.6611
Change +0.0499 +1.91%
Low/High 2.5999 - 2.6747

Cheers from the not so [B)][}:)]

[tricha]

Another big day out today, 16 million shares, Imm must be getting close to an announcement of some kind.
Maybe someone will take a 10% stake and block a lionore takeover.
lots of maybe. Maybe the drilling next to JBM shows huge nickel in the cores.
One things certain,the way copper is going up, will make the dividend from Eloise go up even faster, all profit above costs.[B)][}:)]

Live Spot Prices

SPOT MARKET IS OPEN
closes in 6 hrs. 46 mins.
change since 19:00 London Time
Price: US$/lb


Copper ¬ Apr 13, 12:09
Bid/Ask 2.8040 - 2.8085
Change +0.0446 +1.62%
Low/High 2.7458 - 2.8108
Charts

[Sunshine007]

I have also been watching this one closely. Got a few at 5.3c. Price/volume action yesterday might be a reaction to news that copper price openned sharply higher in Shanghai.

[tricha]

Well Sunshine

I'm glad someone else has shares in BRW from this forum.


This is what will keep Breakaway going for a while, but if they hit paydirt ....................]Nickel, gold, copper and maybe U.

Copper Surges to Record for 7th Day as Demand to Exceed Output
April 13 (Bloomberg) -- Copper prices surged to a record for the seventh straight session in London on signs that demand for the metal used in wiring and plumbing will outpace production.

World copper use will rise 5.4 percent this year to 17.9 million metric tons, exceeding output by 10,000 tons, Goldman Sachs Group Inc. said in a report yesterday. Demand rose 1.7 percent last year, the bank said. The metal will average $5,587 a metric ton in 2006, up 16 percent from a previous forecast, Goldman said. Prices have gained 37 percent this year after climbing 40 percent in 2005.

``We have enormous demand from customers this year, which is much higher than expected,'' said Peter Schubert, marketing manager of Germany's MKM GmbH, Europe's fifth-largest copper fabricator. ``Our stocks are very low.''

Copper for delivery in three months climbed $7 to $6,110 a metric ton at 2:24 p.m. on the London Metal Exchange after reaching $6,135, the highest ever. Prices have climbed 6.7 percent this week, the biggest such gain since late January.

On the Comex division of the New York Mercantile Exchange, copper for May delivery gained 1.85 cents, or 0.7 percent, to $2.79 a pound after reaching a record $2.803. A futures contract is an obligation to buy or sell a commodity at a fixed price for a specific delivery date.

Prices have been buoyed by a decline in global inventories and strikes at mines. A 20-day strike at La Caridad, Mexico's second- largest copper mine, may force Grupo Mexico SA to suspend May deliveries to clients, the Mexico City-based company said yesterday. The mine produces 250,000 tons of copper annually.

LME Inventories

Copper stockpiles in warehouses monitored by the LME dropped 100 tons to 111,650 tons today. That's equal to less than three days of global consumption. Inventories have dropped 8.4 percent this month.

As much as 11,775 tons of LME copper stockpiles are under ``canceled warrants,'' which means the metal has been bought and will move from warehouses, according to LME data.

Copper has also benefited as hedge funds and other investors seek investments that have delivered greater returns than stocks and bonds. The Standard & Poor's 500 Index has gained 3.2 percent this year. Benchmark U.S. Treasuries have lost about 1.5 percent, according to Merrill Lynch & Co. indexes.

``There's so much money in the market coming from the investment community,'' said Bo Samuelsson, president of Sweden's Elektrokoppar AB, a copper-wire producer. ``The market is no longer reflecting consumers and producers.''

[Sunshine007]

Thanks tricha. On Friday I was watching the screen and noticed big jumps in both SP and volume in BRW, and at roughly the same time a news headline "copper price opened sharply higher in Shanghai". Whatever the reason, BRW has been a good pick and I expect it to keep going higher.

[tricha]

Well Sunshine007 - I would say you would be very happy with this penny dreadful.

Well I wouldn't sell just yet, rumours circulating of a takeover in the W A News. Something real is happening because volume and price on the move.

Hot, Hot, Hot

Also more rumours abound of a decent strike at Kambalda next to JBM's deposit.
Remember all, they hold tenants along the same strike zone right next to JBM.

Cheers [B)][}:)]

[tricha]

P.S Could this be BRW's next result! Cheers[B)][}:)]

Note - This is just out from JBM

Good Results From Alec Mairs

Alec Mairs (The decline was named in honour of Mr Mairs)


Recent underground drilling at Jubilee Mines NL’s new Alec Mairs Lower Exploration Decline - part of its Cosmos Nickel Operations in Western Australia - has returned encouraging initial results.

Jubilee completed the Alec Mairs Lower Decline during the March Quarter to provide enhanced exploration access to the highly prospective area, which now forms part the existing underground mine infrastructure at Cosmos Deeps. The company has established several underground diamond drilling positions, with two underground diamond rigs now in full operation on a 24-hour basis.

The company’s initial focus of exploration was the general area down-plunge of the currently defined Alec Mairs deposit, and an area 250 metres to the south where previous wide spaced drilling intersected multiple zones of high-grade, high-tenor massive nickel sulphides including 0.66m @ 17% Ni and 3.1m @ 7% Ni. Jubilee’s recently completed underground diamond drill hole AMD145, which was designed to target this position, has returned four significant intersections, namely 3.05m @ 20.24% Ni, 1.0m @ 13.72% Ni, 1.71m @ 5.21% Ni and 3.77m @ 9.7% Ni.

The results form part of a positive overall quarterly performance for Jubilee, with the company reporting continued steady nickel production and confirming that it is on target to achieve production in excess of 11,000 tonnes of nickel-in-concentrate for 2005/06.

Cosmos produced approximately 2,700 tonnes of nickel-in-concentrate for the quarter, with mine grades at 4.95%, plant feed grades 5.16%, recoveries running at 95.5% and plant availability 94.4%. Mining operations have now moved into a higher-grade phase in the central stopes of the mine.

Jubilee's Executive Chairman, Kerry Harmanis, said the March quarter saw significant progress by the company on several fronts, including the announcement of a revised resource at Prospero, completion of the Lower Alec Mairs Decline, solid progress with the Helene Decline at the new Prospero/Tapinos mining centre, and advancement of studies on a potential future upgrade of nickel production at Cosmos.

"Jubilee is currently in one of the most exciting growth and development phases in its history, with our organic growth strategy stepping up a gear as we progress development of the new Prospero/Tapinos mining centre, 4 kilometres south of Cosmos, and move into an intensive phase of exploration in the Alec Mairs area and elsewhere," Mr Harmanis commented.

"Nowhere is our commitment to organic growth clearer than in the major near-mine and regional exploration effort currently underway. At present, we have nine drill rigs at work on a 24-7 basis, including two underground diamond drill rigs at Alec Mairs," he continued.

"The initial results from Alec Mairs are very encouraging and, while it is early days, confirm our belief that this system is part of a larger, extensive complex surrounding Cosmos and Alec Mairs which contains widespread ultra-high grade nickel mineralization. We are only just beginning to open up this area following the completion of the Alec Mairs Lower Decline, and I personally believe that we haven't seen the best of this system yet."

- 27 Apr 2006

[tricha]

Exciting news just out, Eloise Copper mined.

This Quarter 16,024 tons verus last quarter 11,594 tons = $2.1 million royalties.

So huge increase in tonnage and copper price = a lot more than 2.1 million.

Number to be released soon.

Expect a big gain in price next week.

cheers [B)][}:)]

[tricha]

What the hell do u make of this, nuts. If BRW repeats 16,000 tons this quarter, nuts ;)



Live Spot Prices

SPOT MARKET IS OPEN
closes in 7 hrs. 43 mins.
change since 19:00 London Time
Price: US$/lb


Copper ¬ Apr 28, 11:14
Bid/Ask 3.3044 - 3.3066
Change +0.4800 +16.99%
Low/High 2.8199 - 3.3249
Charts

[tricha]

[}:)][B)] Guys could you please give me a little help on this One

Breakaway Resources - I put in a buy today, at .029c looking at all their recent data, looks promising and they have tenants around Kambalda.

Total gamble. All views, thoughts, and opinions appreciated,

Could this be the new JBM

No Help but who cares! 10 cents on the way, cause royalities will be 4 millon plus [B)][}:)]


P.S upside huge!;)

[tricha]

10 cents on the way, cause royalities will be 4 millon plus.

Did I say that, got it hopelessly wrong again, 5.06 million from Eliose in royalities for the March quarter.

15 million traded today and now 9 cents a share.

I am not going to predict last quarter, but we are half way through it and copper has nearly doubled in price.

Can imagine Barminco trying to ramp production under these circumstances.

Cheers not so [B)][}:)]

P.S Not so bad for a penny dreadful.

[nelehdine]

Bgt 300,000 at 9.1c late this afternoon ... this one has run hard but if copper stays at these sorts of levels then the P/E for the next 12 months is about 2 ... that's value in my book , interesting when it goes to 10c and the bid offer jumps to .5c from current .1c ... never held a stock at <10c so will be interesting to watch that first 10.5c trade.

[tricha]

A P\E of 2 did u say Nelehdine.

Thats not bad, I take it u have a few, thought about taking some profit, expect a correction for a while, but the closer we get to the last quarter with these copper prices, imm.

And the exploration potential, thats what I was in for, Eliose an absolute bonu.

Actually the report - Aegis - quarterly exploration review, March 2006 gave them a very good report.

I honestly thought Lionore or Barminco would has taken them out by now.

Cheers not so [B)][}:)]

[Misc]

Im hearing rumours of a very favourable rights issue to be announced on Monday . Funds to be used for purchase of a major minerals play (producer?).
Lets see.

I hold.

Misc

[tricha]

Spot on the money Misc

I do not know if it is a good or bad move.

Shares taken a hammering, but havn't all mining shares.
Time will tell, holding for now.

Cheers not so [B)][}:)]

[Packersoldkidney]

quote:Originally posted by tricha

Spot on the money Misc

I do not know if it is a good or bad move.

Shares taken a hammering, but havn't all mining shares.
Time will tell, holding for now.

Cheers not so [B)][}:)]


Will be green tomorrow is my prediction, Tricha.

[tricha]

What does green mean Mr Packersoldkidney - The good the bad or the ugly [?][?][?]

[Packersoldkidney]

quote:Originally posted by tricha

What does green mean Mr Packersoldkidney - The good the bad or the ugly [?][?][?]




'S good. We'll see if it happens or not starting in about 5 minutes or so.

[tricha]

Well Mr Packersoldkidney - I take it u hold breakaway shares.

It's good,price going back up, like all metal stocks, no news out,what is supposed to happen [?][?][?]

What are your thoughts on Lionores re-modeled Breakaway, [?][?][?]

Can't be to bad or Barminco would not agree to it, or are they some how related.[?][?][?]

Anyway this hasn't changed, royalities were 5.1 million last quarter.

Copper still way up there and we r past halfway this quarter.

Royalites this last quarter, if Cu carries on at this rate will nudge close to 10 million.

Example - $1 a ilb to produce, $2 average price last quarter, if we average $3 a ib this quarter, profit doubles.
Thats if production is maintained, but expect Barminco will be flogging the hell out of this horse at these prices.

Cheers not so [B)][}:)]

[Packersoldkidney]

Yeah, I've got a couple of these, Tricha: its a good stock that will really start to earn its keep when it hits 10 cents.

[tricha]

Have you got your copper[?][?]

If the copper price keeps up and it looks like it will, then a 10 million dollar royalty from Eliose, this quarter is well on track.
Equals nearly 2 cents a share, might not sound much, but BRW at only a little above 6 cents, hmm.

A few rumours and only rumours coming out of Kalgoorlie is Barminco have hit juicy copper extensions at Eliose. Time will tell.

Not so [B)][}:)]



Copper in Shanghai Gains as Declining Inventories Prompt Supply Concerns
May 30 (Bloomberg) -- Copper futures in Shanghai rose a third day after a decline in stockpiles heightened concern production will lag behind demand this year.

``Supplies are tight,'' said Wang Zheng, a Shanghai-based trader with Dalu Futures Co. by phone today. A three-year rally in copper prices ``hasn't come to an end, and traders here expect London prices to gain further,'' he said.

Copper for delivery in August climbed 1,220 yuan, or 1.6 percent, to 76,980 yuan ($9,590) a metric ton on the Shanghai Futures Exchange, and were traded at 76,680 at 10:35 a.m. local time. Today's increase takes to 84 percent the gain in prices since the year began.

Stockpiles in London Metal Exchange warehouses fell for the fourth consecutive day on May 26, dropping 1.1 percent to 105,625 metric tons, the lowest since Feb. 21 and the equivalent of about two days of global consumption.

Prices for the metal used to make power cables have more than doubled in the past year as a strike stopped production at Grupo Mexico SA's La Caridad, Mexico's second-largest copper mine. Freeport-McMoRan Copper & Gold Inc., which operates the world's No. 2 copper mine in Indonesia, in April said output was lower because it recovered ore with a lower metal content.

Four out of nine traders, analysts and investors polled by Bloomberg News on May 25 and 26 said copper would rise. Three forecast a drop and two little change in prices.

``There's been good demand but supply has been very, very constrained,'' David Thurtell, a commodity strategist at Commonwealth Bank of Australia Ltd. in Sydney, said yesterday.

On May 24, Codelco, the Chilean state-run miner that supplies about 11 percent of the world's copper, cut its 2007 forecast, and said this year's production would fall.

Chilean Copper

Copper output in Chile, the world's biggest producer, fell 1.4 percent in March from a year earlier. Antofagasta Plc, the London-based owner of three copper mines in Chile, said on May 25 output in the first quarter dropped to 107,000 metric tons from 118,900 tons a year earlier.

Copper may rise as much as 50 percent in the next year as demand exceeds supply, according to Sucden U.K. Plc, which trades on the LME. Sucden is one of 11 companies that trade on the floor of the LME, the world's biggest metals bourse.

Copper prices on the LME have surged 87 percent this year, and reached a record $8,800 a ton on May 11, driving some users to seek substitutes.

China's refined copper net imports rose 25 percent in April over March but fell 49 percent compared with April 2005, Scotia Capital said in a report yesterday.

China

``High copper prices are prompting some Chinese electrical cable and wire makers, who account for 40-50 percent of the country's copper consumption, to switch to aluminum,'' analysts Na Liu and Eric Yan said in the report.

``This suggests good potential for China's copper apparent consumption to rebound strongly later this year, once de- stocking ends and substitution reaches its maximum,'' they said.

Aluminum for August delivery traded unchanged at 21,980 yuan a ton in Shanghai at 10:08 a.m. local time. It rose as much as 0.3 percent and fell as much as 0.6 percent earlier. It has gained 14 percent since the year started.


To contact the reporters on this story:
Xiao Yu in Beijing at
yxiao@bloomberg.net; Claire Leow in Jakarta at
3021 or cleow@bloomberg.net

Last Updated: May 29, 2006 23:05 EDT

[tricha]

Well Folks

We send an email to Breakaway asking them what the hell were they up to. It was great to get a response!:)

Their response, draw your own conclusion,


Dear Tony and Nick


On behalf of Breakaway’s Chairman, Mr Jon Young, I would like to take the opportunity to respond to your email dated 2 June 2006.



As you are aware, Breakaway has the opportunity to acquire LionOre’s exploration assets for A$10.5m and for a mix of equity and convertible notes (which can be redeemed by Breakaway). They are quality assets that I have developed for LionOre over a number of years to position that company in projects offering sound discovery opportunities. As you will soon learn from the Notice of Meeting documents about to be mailed to you, the Independent expert values LionOre assets several times greater than the agreed price. According to the expert this should translate to a higher share price.



In regard to the capital raising this is not being undertaken for the benefit of LionOre but rather for all of the shareholders to enable Breakaway to fund its projects at a meaningful level to generate success. LionOre has imposed a condition that Breakaway raise at least A$15m by way of a placement to ensure that the company has the financial capability to generate success for all shareholders.



Eloise has generated an excellent royalty stream to date, however we have to be realistic and cognizant of all of the risks associated with a deep underground mine. I would hope that the operation might generate a A$20m royalty over the next two years. There are risks associated with mining at depths of >1000m, in particular the high thermal gradient and pressure on ventilation and need for additional ground support. Also, the decline development rate is lagging behind the vertical advance of production and could therefore constrain the production rate. All of these factors combined could contribute to higher capital costs.



In view of the capital and depth risks, it prompts a need to increase funding sources and undertake a raising while the market is buoyant. It is a case for being opportunistic while conditions allow.



In closing, the acquisition of the LionOre assets provides Breakaway with a wonderful opportunity to increase the opportunity for discovery success and growth of the company.



I would be more than happy to discuss the subject further with you if you forward a contact phone number.



Kind regards,



Peter Buck

Manging Director

Breakaway Resources Ltd

Ph: +61 (0)8 9278 6444

Fx: +61 (0)8 9278 6449

Mobile: +61 (0)411 554 099

Email: peter.buck@breakawayresources .com.au

[jasper_88]

Hi Tricha and crew,

Been looking at this stock lately, and like what I see, IMO.

Purchase of Lion Ore assets, IMO, can take BRW the next step, primarily because;
1. Lion Ore, a market cap of greater than $1,400 million, will hold post consolidation almost 20% of Breakaway :) got to be good sign for shareholders
2. Royalties alone won't grow the company, as Tricha has mentioned, depth of copper mine etc. makes Eloise a diminishing asset (copper price aside). Growth via new, purchased Nickel mines though...
3. Lion Ore have safeguarded their investment by Peter Buck's new role in management in BRW
4. Even though consolidation is -66% to share price, vis the 1:5 consolidation BUT earning capacity is two fold thanks to 125,000+ tonnes of nickel
5. Money in the bank, $$$$$$$$$:D gives ability to upgrade plant, and fuel new operating costs
6.See, IMO, post consolidation $1+

Question to me is when to buy in...now or post consolidation?

[Misc]

Jasper , buy now at 5.5c or put your hand up for part of the 72m share placement (if you are an SI) , Buck is very credible and realistic , refreshing for this sector.
Any junior minor trying to get any significant project to production stage without $20m or so in the bank is dreaming.
The Eloise has ventilation problems at present , so dont expect too much from this quarter ..($3m??) but its all free c/f to BRW and sets them on a very sound basis for serious growth , management is the key here.
misc

[tricha]

Hi Misc - The Eloise has ventilation problems at present, great to know that!
Imm to know that, sounds like you must be a Barminco Employee or associate.
Nothing like working at the coal face. Thats a huge positive!

Buck mentioned in the letter above they were having problems at 1km deep.Did not specify why.

You sound like you have a lot of faith in Buck.

Would you care to edify us please.

Because one of the 1st priorities in choicing a great company, is great management.

Cheers Not so [B)][}:)]

[Misc]

Barminco employee NOT !! Its like the Secret Service in there , even BRW struggle to get info from them! Yeah , got alot of confidence in P.Buck , he is certainly of the highest quality and has a good team around him , and seriously good assets to 'play' with!
The Eloise ventilation issues will be sorted (maybe already done) , the point is that hold ups will occur whilst sufficient ventilation to 1km depth is installed , so dont expect another $5m payout from this quarter , or future quarters as production rates slow.

With more details (Buck presentation??) to be announced shortly from the company , it would seem these s/p levels represent an excellent medium to longterm buying opportunity.

misc

[jasper_88]

Thanks misc. Appreciate your thoughts.

[tricha]

Good reply Misc! thanks for the insight.

So you rate Peter Buck as top class management and 1st class Geologist.

Thats golden rule # 1, top management.

Backed by Lionore, that's got to be worth something as well.

This has the possibilites of a very interesting company, a year or two down the track.

[tricha]

Copied from Kalgorlie Miner today.

Mr Buck recently resigned from the longstanding position of director of geology and exploration for Lionore in Australia.

He played a key role in developing the growth of the company, from a junior with a market capital of $50 million US to a leading mid-tier nickel producer with a market capitalisation of more than $US1 billion in seven years.

The new JBM - anythings possible with this man [:)

[Misc]

Tricha , Based on very recent 'info' , I would like to rescind my comments above , regarding the Eloise June Quarter royalty. I now strongly suspect it may indeed be not far away from the payment achieved last quarter :) If so , perhaps a scaling back of the placement is in order??
Still very happy to buy mid 5's and/or take placement stock.
Misc

[tricha]

Well thats great news Misc.

I based 10 million dollars this quarter, if they did the same tonnage.

With the copper price now averaging $3.20 US a ilb, for this quarter.

Would effectively double their profit from the last quater.

So the big question is how many tons did they do this quarter[?][?][?]

But even if only 5 million this quarter, plus the 5 million last quarter, thats 2 cents profit on a 5.5 cent share,in six monthes. Pretty good really [:p]

[tricha]

Ding, Ding Ding, Eloise from memory is in Cloncurry, ding, where BRW hold big tenants, where a recent magnetic survey pin pointed some hot spots well worth drilling.

AUM's mine site is in Cloncurry, ding.

[?][?][?] is BRW related to AUM through copper related tenants [?][?][?]

[tricha]

Borrowed this reply from Kempeman of Hotcopper, his conise reply.[B)][}:)]

Yep, the Eloise mine site is about 50 minutes drive from Cloncurry.

I worked there as a Senior Underground Diamond Driller for Barminco doing deep underground exploration holes from October thru January of 04/05. I thought it had very little mine life left then, however, things may have changed since I left. It was a deep, old, very hot and unsafe operation then. If they are ramping up their prospects or operations I could only imagine they have found another ore body close by and intend to develope another mine altogether. Or they may, feel or have found subsequent ore bodies (i.e missed something on the way down) hanging off or close to the main structure.

It is a geographically rich and exciting area for mining companies, of that there can be no mistake. Afterall, there aren't too many great old classic mining towns like the very near Mt. Isa (while nothing compared to days of old) left.

All the best,
K-man :D

[Misc]

Hmmm , Buck is very excited about a couple of 'leads' up Eloise way , he visited the area last month Im told.
Now wheres my placement shares? ;)
misc

[Tok3n]

I'll be happy if BRW finds something and does a run similar to AUM :)

[tricha]

And why shouldn't they be another AUM

If you care to read BRW's presentation in November, they had already found 15 significant new untested anomalities, defined outside Alinta and Eliose.
No other than in the "Cloncurry region"

Another of BRW's cousins - Royal find boosts investor interest in Kings

Bring it on Mr Peter Buck

Michael Quinn
Thursday, July 20, 2006

INVESTORS have again backed the Cloncurry region of Queensland after Kings Minerals drilled promising zones of copper-molybdenum-gold-uranium at its Kalman project.



Shares in King jumped as much as 42% on the back of two holes that hit 40m grading 8.34% copper equivalent and 20m at 7.14% copper equivalent (plus 28m at 5.85% copper equivalent), with the intervals located at around 300m depth.

Metal prices used were $US3 per pound copper, $24/lb for molybdenum, $600 per ounce for gold and $42/lb for uranium.

Kings managing director Dudley Leitch told MiningNews.net that Kalman was looking like a zone system, starting with copper-gold and moving down to molybdenum, and then molybdenum-uranium. The "more pervasive mineralisation is copper-gold", he said.

The company said it drilled four holes 100m apart at Kalman, with all "significantly mineralised".

Assays of core drilled below three of the holes are awaited. Significantly "all displayed continuing, though variable, visual mineralisation".

A reverse circulation and core rig has been booked for September.

Leitch said an inferred resource could be calculated by early next year.

Kings picked up the ground at Kalman around two years ago, with previous drilling by MIM Holdings hitting high-grade molybdenum – 14m at 0.66% molybdenum. Native Title agreement was reached in the second half of 2005.

Leitch said Kings has around $1.5 million in cash. Earlier this month, the company announced a plan to spin off its 51% interest in the 11 million ounce (gold equivalent) San Anton silver-gold project in Mexico into a Canadian listed company.

Shares in Kings were up 7.5c (20.3%) at 44.5c in midday trade – having earlier hit 50c – capitalising the company at around $155 million. The stock was trading below 20c in June.

[tricha]

Ding, Ding, Ding

And why did they go up today!

You need to read the Western Australian news.

Good news out today, BRW are now drilling 75 km from CDU on one of their 15 defined hotspots.

And the big plus is, they have the backing, management and money to do it!

[Misc]

And a further $6m royalty from June qtr ??? Geez , who said it would only be $3m ??? Ooops , that was me , sorry ;)
The royalty figure and news of further 'step-outs' at Eloise will put a rocket under this , 50c + very soon.
misc
nb. Currently trading under code BRWDA , post 5:1 reconstruction

[tricha]

Good one Misc - u reckon 6 million cash.

It would be great to know exactly the tons produced by Eliose this quarter Misc. I guess it will be released real soon.

I rated it close to 10 million profit for this quarter , because of the huge increase in copper price for the whole of this quarter.

Ok we will split the difference 8 million, would be OK, around 6.5 cents a share profit for a quarter [:p]

I believe they will hit some big copper strikes soon and that will be it. Zoom.

God nows what will happen when they hit nickel as well.

Already a 2 bagger for me, could go a long way towards ...........

Cheers not so [B)][}:)]

[Misc]

Tricha , there were/are ventilation issues at depth (refer todays quarterly). This is hindering production but will soon be rectified , the step-outs are exciting , as is the Pb prospect at Altia , not to mention the Zinc. You will get another 2 bags easy short term IMHO.

misc

[tricha]

Breakaway Receives Copper Royalty

Breakaway Project


Base metals company Breakaway Resources Limited is set to receive an exceptional royalty payment for the June 2006 Quarter from its 30% net profit royalty in the Eloise Copper Mine in Queensland.

The operator and owner of the Eloise Mine, Barminco, has said that the royalty payable for the June quarter is $6.07 million, subject to standard year-end audit review, based on the production of 10,091 tonnes of concentrate.

Breakaway’s Managing Director, Peter Buck, said: “The exceptional June Quarter royalty further reinforces the value of the royalty asset to the expanded Breakaway group following our recent acquisition of LionOre Mining International’s premium Australian nickel exploration portfolio.”

“With the completion of the recent oversubscribed $13.5 million share placement and with current cash reserves of $8.8 million, the June Quarter royalty will increase Breakaway’s cash position to well in excess of $25 million, providing a very strong foundation to pursue vigorous exploration and project development programs to unlock the value of our key projects,” Mr Buck said.

“Drilling has recently commenced to test several priority targets at Eloise on our 100% owned ground surrounding the Eloise Mine, including the Levuka North prospect on the Levuka Shear, some 15 kilometres north of the mine,” he said.

“This represents our first drilling program as an expanded group, and heralds the start of an exciting period for Breakaway.”

Mr Buck also said that the company is well prepared to commence exploration, including drilling, on the nickel exploration programmes in the Eastern Goldfields.

- 01 Aug 2006

[tricha]

Spot on with your info about production Misc! Can they pick it up again this quarter or is it still go slow with problems for a while Misc.

Copper tonnage well down from the last quarter of 16,000.

To 10,000 tons, but profit up, due, to very high copper prices.

Can Mr Peter Buck repeat what his team found for Lionore[?]

That's the million dollar question [?][?][?]The good thing is, if anyone can Mr Buck and his ex Lionore team can.

Time and patience required, although if they have good drilling results around Eliose, hmm, could change over night.

Money will not be a problem with the regular cheques from Eliose.

Cheers not so [B)][}:)]

[tricha]

Are you out there Misc.

Whats the oil on Eliose [?], are they back on track, or are they still being slowed because of the ventilation issue.

Hopefully back on track, with Copper up there, huge potential for a ripper of a quarter, nearly 1\2 of this quarter gone.

I guess being in bed with Barminco, they will have priority for the drilling they are doing close to CDU, can't wait for the results.
Then we will see some fireworks.

Cheers not so [B)][}:)]

[tricha]

Have you got your BRW shares yet, already earning from copper, a bit of a lift today, for some strange reason [?]

Drilling next to CDU and if drilling results are good, it will be all over.

If drilling results do not stack up, already earning 6 million cash, a quarter, so its a no brainer.
Personally I can't see how you could lose, its a win\win situation.

Worth while reading up on and making your own decision.

Cheers

[tricha]

Breakaway Completes Makeover Deal




Breakaway Resources Limited has completed the acquisition of LionOre Mining International’s premium portfolio of Australian nickel exploration assets, enabling it to escalate exploration across its entire project portfolio.

Major drilling programs are scheduled to commence shortly at all three of Breakaway’s project groups in Queensland and Western Australia.

Commenting on the significant milestone, Breakaway’s Chief Executive, Peter Buck, said: “With the integration of the Breakaway and LionOre assets nearing completion, a strong cash position to underpin our exploration activities, and a committed, talented and focused group of people steering our exploration efforts, this is a very exciting time for the company.”

Completion pursuant to the Asset Sale Agreement with LionOre Australia Pty Ltd was achieved on Friday 18 August. Under the Agreement, Breakaway has acquired a select portfolio of Australian base metal projects for a total consideration of $10.55 million, to be satisfied by the issue to LionOre of 4.8 million Breakaway shares and converting notes with a face value of $9 million.

The transaction with LionOre has also seen 15.56 million Breakaway shares issued to LionOre following the conversion of existing converting notes with a face value of $3.5 million. Following completion of the transaction, LionOre holds a 19.8% relevant interest in Breakaway.

With settlement of its recent $13.5 million capital raising and expanded portfolio of premium exploration assets, Breakaway has been repositioned as one of Australia’s leading mid-tier nickel and base metal exploration companies.

With the completion of the LionOre transaction, it plans to escalate exploration activity on three fronts, at its 100%-owned exploration ground surrounding the Eloise Copper Mine in Queensland, at its nickel exploration projects in the East Kimberley region of WA, and at its nickel projects in the Eastern Goldfields.

The company has allocated a minimum exploration budget of $6 million for its 2006/07 exploration programs. The program and budget has been distributed between the Eloise Project in Queensland and the Eastern Goldfields and the Kimberley regions of Western Australia.

“We will shortly have a total of about 4 diamond, RC and aircore drilling rigs active across the country once contracts have been secured, testing priority copper, nickel and base metal targets located in the heart of some of Australia’s most prospective exploration acreage,” Mr Buck said.

- 22 Aug 2006

Breakaway Completes IronOre Deal




Breakaway Resources Limited has completed the acquisition of LionOre Mining International’s premium portfolio of Australian nickel exploration assets, enabling it to escalate exploration across its entire project portfolio.

Major drilling programs are scheduled to commence shortly at all three of Breakaway’s project groups in Queensland and Western Australia.

Commenting on the significant milestone, Breakaway’s Chief Executive, Peter Buck, said: “With the integration of the Breakaway and LionOre assets nearing completion, a strong cash position to underpin our exploration activities, and a committed, talented and focused group of people steering our exploration efforts, this is a very exciting time for the company.”

Completion pursuant to the Asset Sale Agreement with LionOre Australia Pty Ltd was achieved on Friday 18 August. Under the Agreement, Breakaway has acquired a select portfolio of Australian base metal projects for a total consideration of $10.55 million, to be satisfied by the issue to LionOre of 4.8 million Breakaway shares and converting notes with a face value of $9 million.

The transaction with LionOre has also seen 15.56 million Breakaway shares issued to LionOre following the conversion of existing converting notes with a face value of $3.5 million. Following completion of the transaction, LionOre holds a 19.8% relevant interest in Breakaway.

With settlement of its recent $13.5 million capital raising and

[tricha]

The no brainer - If this quarters production, same as last quarters production, another 6 million cash, or the quarter before would be equal to 10 million cash, in the kitty.(THAT'S THE NO BRAINER, can't lose)

The big if! If they hit Cu and remember only 75km from CDU! In Mt Isa teritory.

And u do not own shares, u will have missed the boat, as simple as that.

(Odds are they will find more Cu, already have it at Eliose and magnetic survey identified numerious hot spots)

There u have it in a nut shell, a calculated gamble, cheers not so [B)][}:)]

[tricha]

Got your BRW shares yet.[?]

Better management (Peter Buck, top geologist), better financed ( $25 million in the bank and Eliose royalites every quarter) and better backed ( Lionore)than CDU.

And if they find copper next store to CDU ( already have it with Eliose), u will have read it and been too late:(:(

And we could have a double banger with nickel tenants, right next to JBM.

Yes, should be another excellent dividend coming to BRW from Eliose this quarter, at these copper prices.

Copper September 05,06:26
Bid/Ask 3.5819 - 3.6045
Change +0.1483 +4.32%
Low/High 3.4290 - 3.6045

Cheers not so [B)][}:)]

[Tok3n]

I topped up before the consolidation

Haven't really kept up to date, but I take it they haven't started drilling yet, so still plenty of time to top up or get in I guess.

[tricha]

Break Out today

Well Tok3n

You are lucky to have topped up.
Maybe times running out very quickly, have not fiqured when or if drilling has started, at Cloncurry [?][?][?]

But Mr Buck did say drilling to start as soon as possible. Very interesting times ahead.

Cheers not so [B)][}:)]

[tricha]

Copy Misc "Hmmm , Buck is very excited about a couple of 'leads' up Eloise way , he visited the area last month Im told.
Now wheres my placement shares? ;)
m

Have you heard any more about Eliose lately[?]

Thats one frustrating thing about BRW, not much news coming out regarding how Eliose production is going this quarter.

Have they got a drill rig into Cloncurry yet [?][?][?]
They need two drill rigs at least, maybe a whole flock of them, with all the great targets they have !

Good to see a continuation of a Breakout today!

[Tok3n]

Yer pretty quiet from them thats why i haven't kept up to do - nearly forgot i owned some hehe, looks like the new management has inherited some of the old management bad habits :)

luckily the SP hasn't been that quiet lately.

[tricha]

Tok3n - " pretty quiet from them thats why i haven't kept up to do - nearly forgot i owned some hehe, looks like the new management has inherited some of the old management bad habits :)"

Dead right Tok3n, management quiet, why are they going up, have they finally found a dril rig.[?][?] they need 4 of them.

The next CDU in the making!

God loves a tryer!

[tricha]

The next CDU, odds are they could be.

Already have copper with Eliose and found, from a magnetic survey, hotspots in the area.

Do your own research and check their tenants next to CDU.

This could be my retirement fund.

[tricha]

Did you get your BRW this week, 20% gain and no news.

Or did the driller buy them [?][?][?]

[tricha]

Hint - "The Altia lead-silver-zinz prospect which has similar features to BHPB's Cannington mine"

"Is decribed by Breakaway as a sleeping giant"

[sparrow]

Copper royalty ANN. for Sept QTR must be close. Any one heard of any more problems at mine? and how many years of mining left ?

Guess only Barminco know the answers.
Sparrow
Hold BRW

[MrDevine]

No, but sp weak at the mo.

I sold out at 52c, perhaps to my chagrin?

On my watchlist however.

MrD

[sparrow]

I'm topping up on BRW today.

The next few weeks and months should bring some favorable news from either:

1. All the exploration they have in progress, only needs one good result for BRW to take off.

2. Copper royalty announcement from Eloise due late Jan or Feb, hard to predict depending on the problems Barminco have had with ventilation etc.

3. BRW had at least 10 cents worth of cash per share last time I looked.

And 4. I'm not a charting expert, but all the signs I follow look good at the moment for a breakout soon. Maybe a charties could comment on this. TRACKER?

Sparrow

[FarmerGeorge]

Well I guess the royalty wasn't what anyone was hoping for... or was it? I've held these since about 3c pre-cons, would love to hear anyones opinions on this latest development. Long term, this looks to be a fantastic thing as they will be getting free money from royalties for much much longer than we thought. Short term obviously a downer. Anyone with the stones to stock up right now?

[tricha]

I did the same as Mr Devine, bailed at 47 cents( bought average 20 cents a share, so excellent profit), after sending\recieving email to Peter Buck, his reply was not inspiring.
News has been a bit of a disappointment since as well.[xx(]

Still watching and at a little bit lower could be a good time to re-enter.

Cheers [B)][}:)]

[tricha]

Still watching on the sideline.

Times getting on and no major anything, at least copper back up there, so Eliose should be making hay again soon.

Pretty disappointing exploration results so far.

but you never know, things have a habbit of changing in a instant.[:o)][:o)][:o)]

[FarmerGeorge]

Could anyone offer some elightenment as to todays price explosion? I read the recent exploration update and was quite positive about it but did not find anything to explain so much movement.

I may haved posed that question prematurely: the investor presentation on the BRW website looks to have some useful information regarding drilling prospects and future growth.

[Tok3n]

Probably this article

http://www.theage.com.au/news/business/explorer-breakaway-sitting-pretty/2007/05/06/1178390140597.html

[sparrow]

Plus the price of copper now up to $8,375 a tonne

[FarmerGeorge]

Thanks for the replies, I appreciate the pointers.

[sparrow]

Also the takeover talk concerning Lionore probably got some traders excited about BRW as LIM Australia hold about 20% of BRW.

Not sure of the connection between LIM Australia and Lionore Canada, though, without doing the research.

Nevertheless, happy as a pig in mud to see the SP sitting around 70 cents for the last few days, took the opportunity to lock in some gains.

[FarmerGeorge]

Thanks sparrow. I recommend all read the investor presentation. It makes quite interesting reading and certainly explains the recent volume. Todays bust up through 85c is rather 'exuberant' though.

[Tok3n]

Locked in some gains as well, holding the rest for the long term.

Just bad memories about management etc this one a few years back lol.

[FarmerGeorge]

Also sold down a few. Ninety cents was certainly too high. I do rate their management though Tok3n, must have a short memory!