KRE-Kimberley Rare earths..

[JBmurc]

KRE was put of with what was going on with NAV but after some study time I'm very bullish on KRE at these low levels with its Negative E.V and over the last week have been buying up with a much higher SP target in mind..
Exploration wise .....
"Hellman (2009) noted that there is an obvious high‐grade north‐west trend of mineralisation that was not closed off..." which you can see on valuation chart

Current market cap-$13.68mill---125mill shares
Cash-$17mill
Asset-Cummins Range 25%- Inferred Resource containing: 72,000t of rare earth oxides 460,000t of phosphate 780t of uranium oxide Rare earth oxide blend similar to Mt Weld
Warwick Grigor is a top 5 shareholder

www.kimberleyrareearths.com.au

-recent valuation report-
www.kimberleyrareearths.com.au/files/files/66_KRE_Report_-_June_2011_-_Final_2011-06-17.pdf

Kimberley Rare Earths listed on the Australian Securities Exchange in May 2011 having raised approximately $18.2m under an oversubscribed IPO. KRE owns 25% of the Cummins Range rare earths project which has a JORC compliant inferred resource of 4.17MT at an average grade of 1.72% TREO together with advanced exploration targets. KRE plans to pursue an aggressive $10m exploration programme over the next two years to increase its equity in the project to 55%



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Now there has for certain been a negative taint come across from massive crash from the RMB debt call in NAV which IPO- KRE

Many think if NAV fails it will affect KRE well it really won't IMHO an if anything may end up being much better for KRE as RMB will then likely deal with KRE first on the project an likely sell the other 75% for a much discounted price.

ENCUMBRANCES ON TITLE-from prospectus
RMB Resources Limited currently holds a fixed and floating charge over the Tenement. Transfer of a 25% interest in the Tenement and KRE’s earn-in rights under the Joint Venture Agreement are conditional upon RMB Resources Limited providing its consent and releasing its charge over KRE’s interest in the Tenement.(which KRE now has)
RMB Resources Limited will retain the charge over Navigator’s interest in the Tenement (45% once KRE’s minimum funding obligations have been met). There is a risk that, in the event Navigator defaults on the terms of its funding arrangements with RMB, RMB may enforce its charge. As a result, the Company may have to proceed with the Joint Venture with a partner other than Navigator, and whose business priorities may differ to those of Navigator.

Now if NAV go belly up 50/50 at this stage RMB will take over NAV assets they will then work too get their 10mill debt back like any bank would on a moragtee sale of a house etc as KRE holds 25% they would for certain be first party that RMB would look to deal with to get debt paid off.

[JBmurc]

- rare earths prices doubling -

www.bloomberg.com/news/2011-06-17/rare-earth-prices-double-on-china-industrial-minerals.html

Cummins Range REO deposit located in the Kimberley region of Western Australia. Highlights include: The project is valued in the range of A$20 million to A$30 million and the resource is estimated to contain $US6 billion in contained value at a 0.5% REO lower cut off grade. 25/10/10 (12billion value at present ?)

[JBmurc]

On days like today when holders are happy to sell their cheap KRE I like to remember..

At April 2011 prices (~50% increase from March prices), the Cummins Range resource is estimated to contain 120,000 tonnes REO or US $12.4 billion in contained value at a 1.0% REO lower cut off grade.
-KRE will gain 55% on spending 10mill within 4yrs 80% on DFS

there is every reason to see the REO resource to increase on drilling work underway

We have the cash to get through to 55% ownership of a 12.4billion resource ,no need for cap raising dilution etc

Buying more at this levels no brainer

[JBmurc]

SIGNIFICANT NEW RARE EARTHS DRILL TARGETS IDENTIFIED AT CUMMINS RANGE

http://www.kimberleyrareearths.com.au/files/files/76_KRE_ASX_Announcement_-_Significant_New_Rare_Earths_Drill_Targets_Identif ied_at_Cummins_Range.pdf

First 5,500m RC drilling program to commence by 7 September; PoW submitted for additional 11,000 metres of drilling.

[JBmurc]

boardroom radio
"We are very exicited on new large targets" Tim MD KRE
http://www.brr.com.au/event/85606

NatGeo-Rare earths-
http://www.kimberleyrareearths.com.au/files/files/78_National_Geographic_-_June_2011.pdf

The REO demand shows no signs of abating. In
2015 the world's industries are forecast to
consume an estimated 185,000 tons of rare
earths, 50 percent more than the total for
2010.

[JBmurc]

KRE latest presentation also on BRR --A great spec BUY if your keen on a longer 5yr hold till production we'll the SP should be min 10x current value

http://www.kimberleyrareearths.com.au/Investor-Centre/ASX-Announcements

[JBmurc]

APPOINTMENT OF GENERAL MANAGER – PROJECT DEVELOPMENT
KEY POINTS
 MICHAEL CHAN, highly experienced rare earths metallurgist and commercial manager appointed as GM Project Development
 Cummins Range Preliminary Evaluation study planned for completion by July 2012
Kimberley Rare Earths (KRE) is pleased to announce the appointment of Michael Chan as General Manager – Project Development. Michael will commence with the company on 12 December 2011.
Background Summary
Michael Chan; BSc (Hons) Minerals Engineering, AIMM, MIEAust, CEng(UK)
 Malaysian born Australian citizen of 26 years  Metallurgist with 35 years industry experience in senior operations, project
development and commercial roles  10 years of extensive rare earth project experience including complex
metallurgical flow sheet development  Co‐author of technical papers on Mt Weld rare earths project  Residential country experience in China and Malaysia  Language skills in Mandarin, Malay/Indonesian, Cantonese, Hokkien  Well versed in Asian commercial dealings
KRE Managing Director Tim Dobson, himself a metallurgist, said he is absolutely delighted with Michael’s appointment to this crucial role.
“It is no secret that rare earths metallurgical expertise is almost non‐existent outside of China. Michael brings world class rare earth project experience and critical Asian network connectivity to the role. His appointment strongly supports our resolve to differentiate KRE as a serious and capable rare earths project development company that is committed to the rapid but disciplined development of Cummins Range”.
Context
One of KRE’s three strategic objectives is to evaluate the flagship Cummins Range rare earths project for the purpose of achieving near term commercial development. This objective has been developed into a strategic business plan, now budgeted and approved by the board, and requires the services of an experienced rare earths project manager to lead the three phases of studies;
 Preliminary Evaluation Study for delivery by July 2012;  Pre‐Feasibility Study with forecast completion in 2013; and  Bankable Feasible Studies with forecast completion in 2015.
Reporting to the Managing Director (Tim Dobson), the General Manager – Project Development (Michael Chan) will work alongside the General Manager – Exploration (Geoff Collis) in an organisational structure designed to efficiently achieve KRE’s strategic objectives.
Michael Chan – Key Role Experience
MT WELD The Mt Weld rare earths project is being developed by Lynas Corporation as one of only two rare earths mines outside of China that are near production. Whilst rare earth deposits around the world are hosted in a complex range of geological and mineralogical settings, KRE’s Cummins Range deposit shares a very similar setting to the Mt Weld deposit and is located in the same Australian state (Western Australia).
Michael’s experience with Mt Weld commenced in 1989 when he was Manager ‐ Metallurgy/Process Engineering for the project with Ashton Mining Limited. During that time, Michael developed a unique process flow sheet for the complex Mt Weld metallurgy and co‐authored a technical paper on this subject with Dudley Kingsnorth1.
Later, in 2006, Michael joined Lynas Corporation as Senior Commercial Manager/Country Manager Malaysia (an expatriate position based in Malaysia) where he established Lynas’ presence in Kuantan, Malaysia. Lynas has since gone on to build their $270 million downstream rare earth metallurgical facility at Gebeng in Malaysia.
NOLANS BORE The large and complex Nolans Bore rare earth deposit in Northern Territory is being developed towards production by Arafura Resources. Michael joined Arafura in 2009 as Procurement/Supply Chain Manager where he has worked until joining KRE
CHINA As current supplier of 97% of global rare earth production, and a near monopoly on rare earth separation and product technologies, it is strategically important that non‐Chinese rare earth projects are able to access Chinese expertise and markets during project development.
Fluent in Mandarin, Michael established the first WFOE (Wholly Foreign Owned Enterprise) for Millennium Chemicals Inc. in Shanghai along with subsequent warehousing and supply chain facilities, and numerous commercial contracts in China during his 12 years with the company as as General Manager Business Development & Marketing ‐ China/Asia.
1 Dudley Kingsnorth (IMCOA) is recognised as a leading authority on rare earths metallurgy and the global rare earths industry.
ASX ANNOUNCEMENT
2
Further to this, Michael has established networks in Chinese rare earths technology and metallurgical testing companies and it is KRE’s intention to ultilise these connections to minimise the process flow sheet development time and expenditure for Cummins Range.
Cummins Range Preliminary Evaluation Study – Scheduled for delivery in July 2012
The number one priority for the General Manager – Project Development is to deliver a Preliminary Evaluation Study (sometimes referred to as a Scoping Study) for the near term commercial development of the Cummins Range rare earths deposit. The Preliminary Evaluation Study will be an order of magnitude estimate designed to assess the commercial viability of the project with an accuracy in the range of +/‐ 35% to 45%.
KRE’s focus during the September quarter was to advance the scale and geological understanding of the deposit, at the same time generating a suite of new samples for metallurgical testwork. The key unknown for the project is the extent to which the deposit will respond to metallurgical concentration and separation techniques. Whilst the geology and mineralogy are similar to the Mt Weld deposit (for which a viable process flow sheet has been developed and constructed for full scale commercial production), a critical component of the Preliminary Evaluation Study will be to test metallurgical responses at a high level.
Along with new resource modeling incorporating the latest drill program results, the Preliminary Evaluation Study will also assess viable mining inventory (ore reserves), process flow sheet and facility options, mine life and production rate, approvals and regulatory aspects, community aspects, utilities and infrastructure aspects, rare earth product options and markets, high level operating and capital costs, product pricing assessment, and finally an economic assessment to support the immediate commencement of the Prefeasibility Study works.

[tobo]

It's a long hard road ahead, but what a great choice in Michael Chan, especially what he did for Lynas
"Michael developed a unique process flow sheet for the complex Mt Weld metallurgy and co‐authored a technical paper on this subject with Dudley Kingsnorth"

Currently the only REO I own is Lynas, through concerns that the other contenders have too much of an uphill battle to get to production, but I have held LYC for about 4 years, and maybe this (KRE) is the place to get in on the ground floor, with the price not yet blown out like some of the others.

[Crypto Crude]

JB,
I dont understand,
how can this company come out with great news, but the SP trends downwards...'
such a huge resource for such a mini, where has leveraged been priced...
even the hope of a spark of such upide should have SP rising or bobbing....
or is this not a project the market believes will eventuate?
:cool:
.^sc

[tobo]

In the Rare Earths sphere, having the resource is one thing, but also need the management that can get it through facility design, and then approvals, big funding, construction/commisioning.
There are a few other explorer/developers out there but there was a bit of a run of wannabes that declare potential resource who were never doing to develop. Combine that with a cooling off of the RE price, and the entire junior spec area globally being very undervalued on a longterm average. Also risk of succeeding in developing an economic process for this resource. (I think I read somewhere hard versus soft ore type.)
Two things would help
1.building confidence in the company by steady progress accompanied by good communication
2. (gradual) improvement of global economy and hence confidence in speccies

[JBmurc]

Yes REO not in the market favour as it once was, still at under cash backing KRE which is crazy when you look back at very successive IPO @20c now with the likes of Chan on board,and other good progress you can get on board near half the IPO ...I think of course why we have seen KRE lack buying interest is the fact the market doesn't like the wait till a maybe production or the NAV connection (after NAV's dealings with SH.s) ....overall I think the risk is worth taking as cummins range is only 1 of 20 JORC REO's in the world currently so your not buying into 1 of thousands but a very small elite club that could well turn into a billion dollar marketcap darling...

[JBmurc]

14 November 2011
KRE PROJECTS UPDATE
 RC drilling program at Cummins Range completed for 2011.  Drill assays expected to be completed by late November/ early
December.
 Metallurgical samples en‐route to laboratory.
 Malilongue Project (Mozambique) legal due diligence due for completion mid‐December.
KRE is pleased to provide an update of activities on its Cummins Range (WA) and Malilongue (Mozambique) projects:
CUMMINS RANGE (Western Australia)
Field activities at Cummins Range are currently being wound up for 2011 due to the onset of the northern wet season including regular thunderstorms and scrub fires.
RC Drilling
Following the successful completion of the suite of geophysical and geochemical activities carried out at the Cummins Range rare earths project between August and September, an RC drilling program was carried out between 10th September and 18th October. A total of 4,230 metres of drilling was completed in 77 holes designed to commence the upgrade of the existing Inferred Resource to Indicated status and to explore for extensions to known mineralisation.
Each of the five high priority aeromagnetic targets T1 to T5 (see ASX announcement dated 25th August 2011) defined previously within the Cummins Range pipe were subjected to scout drill tests. Drill sites were selected by combining the gravity and geochemical data to prioritise the more prospective zones within the five aeromagnetic targets.

[JBmurc]

FINAL DRILL RESULTS CONFIRM QUALITY OF CUMMINS RANGE DEPOSIT
KEY

POINTS
Final drilling assays from Cummins Range return further broad, high- grade rare earth intersections.
New intercepts include:
Intercept Grade From Hole ID Hole Type Length (m) (% TREO) (m)
75 1.16 4 KRC158 Infill
39 2.15 2 KRC159 Infill
39 1.81 21 KRC147 Infill
31 1.52 19 KRC149 Infill
10 3.04 25 KRC130 Extension
22 0.90 6 KRC131 Extension
20 0.97 44 KRC153 Infill
8 2.19 45 KRC168 Extension
14 1.01 39 KRC170 Extension
TABLE 1 – Selected TREO intercepts.
REE mineralisation remains open to both the NW and SE (along strike) as well as at depth.
Three of the five aeromagnetic targets (T1-T5) returned positive intercepts.
Work commenced on new resource estimate



more at : http://www.kimberleyrareearths.com.au/files/files/110_20111219_ASX_Drill_Assay_Results_2_FINAL.pdf



China's rare earths ban a fillip for rival miners

Read more: http://www.smh.com.au/business/chinas-rare-earths-ban-a-fillip-for-rival-miners-20111218-1p0ug.html#ixzz1gwsyHpRq

[Aotea]

Hey JBM,
Yes nice infill and extension...love the shallow resources too. I see you have them in the 2012 comp- it could be a good pick.
KRE should progress nicely over the next year towards production. Good management and plenty of cash makes it a winner any day!

[JBmurc]

Hey JBM,
Yes nice infill and extension...love the shallow resources too. I see you have them in the 2012 comp- it could be a good pick.
KRE should progress nicely over the next year towards production. Good management and plenty of cash makes it a winner any day!

yes I like the fact they will not need to raise capital in 2012 an should move to 50%+ ownership of Cummins range which is one of the few REE JORC resources in the world (an soon to be increasing JORC resource ..) well worth listening to "The Emerging Trends Report" Managing Editor Richard Karn on Hotcopper KRE thread ...backs up why I'm invested in the likes of KRE and many other resource & Energy plays