BFE-Black Fire Minerals-New Lithium Play

[Huang Chung]

Black Fire Minerals announced last week that they had acquired a 100% interest in the Karibib Lithium Project in Namibia (one of the safer African countries, more noted for its uranium potential). Lithium has been mined here on and off for decades, but it was fairly small scale. The project has never been subject to any modern exploration. An agressive exploration and drilling program is planned.

Share price has been steadily rising since the announcement. I got in today at 17c, when I should have acted last Friday when I could have got them for a few cents less. Such is life.

http://www.stocknessmonster.com/news-item?S=BFE&E=ASX&N=468852

They also may earn a majority interest in the Mystique Gold Project, which is part of the Tropicana Belt in WA (and hosting the 5moz Tropicana Gold Project). This in itself is quite an interesting prospect.

http://www.blackfireminerals.com.au/IRM/content/ourbusiness_mystiquegold.html

Only 100m shares on issue, along with 30m oppies exercisable at 20c.

Company website link attached below.

http://www.blackfireminerals.com.au/

[drillfix]

Hi Huang,

Mate, this stock has nearly doubled in a just over a week.

Yet the Ann re- Namibian Lithium only came out 4 days ago.

Inside story perhaps? Who knows. Although the story looks good all the same.

[Huang Chung]

Hi Huang,

Mate, this stock has nearly doubled in a just over a week.

Yet the Ann re- Namibian Lithium only came out 4 days ago.

Inside story perhaps? Who knows. Although the story looks good all the same.

IF I'd sold at today's high of 20c, I would have made just shy of 20% in 24 hours. Didn't sell, and the share price finished at just 17.5c after the market fell in the afternoon.

But unless you're buying for the lithium hype, this stock will really be about finding a decent lithium resource on the Karibib tenements. The lithium is there, no doubt about it, it's just a question of whether there's enough of an economically viable resource that will make the share price fly.

Here's hoping :rolleyes:.

[shasta]

IF I'd sold at today's high of 20c, I would have made just shy of 20% in 24 hours. Didn't sell, and the share price finished at just 17.5c after the market fell in the afternoon.

But unless you're buying for the lithium hype, this stock will really be about finding a decent lithium resource on the Karibib tenements. The lithium is there, no doubt about it, it's just a question of whether there's enough of an economically viable resource that will make the share price fly.

Here's hoping :rolleyes:.

Another company with lithium on the horizon (from my watchlist) is RDR.

Worth reading there recent presentation, they have a few projects too ;)

[Huang Chung]

Another company with lithium on the horizon (from my watchlist) is RDR.

Worth reading there recent presentation, they have a few projects too ;)

Shas, RDR has a far more mature project (with a market cap to match).

[shasta]

Shas, RDR has a far more mature project (with a market cap to match).

No worries, there aren't too many lithium companies around, & i like to compare grades etc ;)

[Huang Chung]

You know far more about Lithium than me Shas. Historic head grades from mining were apparently between 1.7%, and 3.75% LiO2. As I understand it, these grades aren't too bad.

Important to note that this is hard rock lithium, not the brine lakes more common in Sth America.

[Huang Chung]

The heat is coming out of BFE unfortunately.......

[Huang Chung]

http://crazyjimsmith.blogspot.com/


"At the beginning of this year I posted a blog about the emerging trend of electric motor vehicles, their use of lithium batteries, and the emerging technological advances of faster charging times of those batteries, making the possibility of mass produced electric powered vhicles a reality! In that particular blog I mention one particular lithium explorer called Galaxy Resources (GXY) .
Since then the share price for Galaxy Resources has risen five fold and those who took the chance and vested their money here would be sitting very pretty!

I expect the share price for Galaxy Resources and a number of other lithium explorers to continue higher but my preference is to jump onto stocks at a very early stage, and most of the big gains have already occured for Galaxy Resources.

So it was with great interest to me when Black Fire Energy (BFE) announced on Thursday that they had secured a lithium project called the Karibib Pegmatite Lithium Project in Namibia.

As you can see from the above chart, the intial reaction was strong but the share price collpased soon afterward with nervous traders taking quick profits.

Thanks to a fellow forum member, we were alerted of a turn around on Friday and the share price recovered most of the previous days fall to close at 16.5c.

The risks are very high here, but the project looks like it has serious potential and we should see strong gains being made here. For the longer term Black Fire Energy offers a multi bagger potential for those willing to take the risk and jump on early!"

[tricha]

You are on the right track Huang, lithium, but which company, ADY had a gem and blew it, :confused::confused::confused:
The Outlook for Lithium Production

Lithium Battery Market To Hit $15 Billion in 2010

By Ian Cooper
Tuesday, November 17th, 2009

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There's simply not enough of the element to go around.
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And, according to Brian Hicks, if you're skeptical or concerned that fuel efficiency alone is not enough to entice Americans to buy electric cars, consider the Silicon Valley company Tesla Motors. While their roadster is the first production automobile to use lithium-ion battery cells and travel more than 200 miles per charge, it is also capable of going from 0-60mph in less than four seconds.
Not only will the Roadster leave most sports cars in the dust; the car recently set a distance record in April 2009 when it completed the 241-mile Rallye Monte Carlo d'Energies Alternatives with 36 miles left on the charge.
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But just remember, the Tesla — as well as every other electric car — needs lithium. And demand for lithium is skyrocketing. . . and will continue to skyrocket.
With limited supply and all this demand, what happens to the price?
It'll easily take off.
And as more than four million electric cars could be sold in coming years, there's not nearly enough supply. And it's not nearly enough to meet these projections:

Deutsche Bank sees 70 new electric car models by 2011, for example;
We're talking big numbers — and a big demand that may not be met quickly. But it's great news for any company involved in finding lithium.
Here are some of the companies that should benefit. . .http://images.angelpub.com/2009/35/2808/lithium-chart-wd-826.png
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[Huang Chung]

Very little information around on previous lithium mining at Karibib.

He's a bit of info on the Rubikon mine (which is part of the land package BFE acquired), and some interesting pics....

http://giantcrystals.strahlen.org/africa/rubicon.htm

I would gather from the article that mining ceased as a result of hard rock lithium being uncompetitive against the brine ponds of South America. Sounds like some of these long forgotten mines are being rediscovered as a result of the ever increasing demand for lithium.

[drillfix]

Very little information around on previous lithium mining at Karibib.


Hi HC, looks like this BFE run has eased off and is falling like a rock.

I know you hold this stock, but whats your thoughts/targets over the mid term on this one?

[Huang Chung]

Hi HC, looks like this BFE run has eased off and is falling like a rock.

I know you hold this stock, but whats your thoughts/targets over the mid term on this one?

Drilly, have you got your chart upside down or something?

BFE seems to be travelling just fine. I don't have any targets, because there is not enough info available to make an assessment. But, if they get some decent metres of 3%+ lithium, I think you'll see BFE rerated considerably.



Disc: No longer holding, but picked it in the Sharetrader ASX Comp.

[percy]

I have been looking to buy,have been waiting for drilling results before deciding but the share price has been trending upwards. The dilling results are due.

[drillfix]

I have been looking to buy,have been waiting for drilling results before deciding but the share price has been trending upwards. The dilling results are due.

Results out now Percy,

Whats your thoughts on the results there HC, Im no Lith expert, anybody care to share thoughts?

[percy]

Results out now Percy,

Whats your thoughts on the results there HC, Im no Lith expert, anybody care to share thoughts?

I should wait for HC's expert advice,however I was hoping they would be better than expected.This is not the case,so will let others enjoy the pleasures of owning this company.Going by the SP drop it looks as though the market was expecting better.

[Aotea]

down 25% today, and to think I was about to buy in today!
I have to say to describe the distribution of LiO as sporadic concerns me enough to keep well away.
As for the Ta, Cs, Au etc...they dont provide enough leverage to get my money...


Anyone have any sage advice on other Li plays....?

[drillfix]

Anyone have any sage advice on other Li plays....?

Aotea, this is total spec crap, and yet another YT Hotcopper Ramp stock, IMO.

But to answer your question, I think if you want a quality Lith player, you gotta pay for one, simple as that.

I could be wrong though, BFE may have something worthwhile, and to be honest, I dont know too much about the co, except that the market doesn't like what it see's ATM.

[Huang Chung]

HC's expert (sic) advice, Percy......move on to another stock.

Disappointing drilling results and certainly no sign of that 3%+ Lithium I was looking for.

[shasta]

down 25% today, and to think I was about to buy in today!
I have to say to describe the distribution of LiO as sporadic concerns me enough to keep well away.
As for the Ta, Cs, Au etc...they dont provide enough leverage to get my money...


Anyone have any sage advice on other Li plays....?

Dont forget GMM from the thread you started a while back

[percy]

HC's expert (sic) advice, Percy......move on to another stock.

Disappointing drilling results and certainly no sign of that 3%+ Lithium I was looking for.

Thanks HC, I was waiting for the drilling results before buying.What did surprise me was the SP moving up so much,from I think 13c to at one stage 22c.I kept thinking I should have brought the people in THE KNOW are.I held back thinking if the drill results were that good most times the SP does come back a bit before heading north again.So was best to wait.

[drillfix]

Percy, did BFE not state in another Ann or quarterly something about there is another zone they are targeting as well, perhaps this could be just to weed out holders?

Personally, I dont think so, yet in these markets you never do know at times.

[shasta]

Results out now Percy,

Whats your thoughts on the results there HC, Im no Lith expert, anybody care to share thoughts?

BFE now languishing at 10c has made the Shasta "Low EV list"

Market Cap @ $0.10 = ~$11m

Less: Cash @ 31/12 = $3.7m

Listed Investment: = $1.9m (7.25m shares in ASX:PDI @ $0.26)

Leaves an EV of $5.4m for projects covering Lithium, Tantalum, Gold, Tungsten & Copper + a small stake in an oil exploration permit!

Very much an early stage explorer, although the new Tungsten/Copper project (BFE hasn't taken up the option yet) will have an agressive exploration program to get a JORC resource once finalised