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  1. #1
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    Default HLX - uranium and gold

    I bought into these today - below is a copy of a posting elsewhere. The oppies are quite cheap but expire end of March.

    copied this from asf's by "young trader"

    Hope you dont mind mate.Apologies if you do.


    Thought it was about time for an update on assesment given recent changes


    HLX
    Share structure
    100m shares + 25m 14c 31/3/07 opeis,

    15c Mkt Cap = $18.75m
    20c = $25m
    25c = $32m
    30c = $37m
    35c = $44m

    Projects

    Tunkillia Gold, HLX is 49% Free Carried by MEP, OXR has taken an option to earn 25% as well, if the project stakes up OXR have expressed their desire to purchase it outright as with Prominent Hill

    This is the jewel in the crown,

    JORC stands at 10.5Mt@2.2g/t = 730k oz's Au
    However this is a 18month old JORC that HLX outlined, MEP has been drilling away for the past 12-18months and a new JORC is due out soon, the new JORC will probably be 15Mt@2.5g/t = 1.34 Million oz's Gold

    Cap Ex is estimated to be $30m - $50m for a 1Mtp.a. or 2Mtp.a. plant

    Cash operating costs are estimated at $400 oz which at a current AUD spot of $800 oz provides some very nice cash flow figures

    NPV of project
    Assumptions:
    Resource = 730k oz's
    Margin = Estimated to be $400/oz but use $300/oz to be safe
    Cap Ex = $50m

    730k oz's @ margin of $300oz = $220m less Cap Ex -$50m = $170m

    Net to HLX = $170m x 49% = $80m = 64c HLX

    Clearly alot of potential here and the most important factor that seperates HLX from other speccies is that a Proven Development company MEP are doing all the hard work to get the project going, thus funding is not going to be an issue, also as OXR has a back door option to buy into the project it spices things up a little. so its only a matter of time.

    EXPECTING JORC UPGRADE WITHIN 2 MONTHS (expecting 75% increase to resource)

    Glenburgh 100% Gold, W.A.
    JORC 1.1Mt@3.1g/t = 110,000 Oz's Au, they're targeting a minimum 500k oz resource for a stand alone project

    Lake Everard HLX 49% TOE (Toro) 51% Searching for uranium
    S.A. part of Tunkillia area

    Recent surveys by Toro Outlined several huge anamolies, they will be drill tested by a massice 1000 Hole Campaign in March/April



    Yallen 30% Free Carried by API, Pilbara W.A.

    The drilling confirms a mineralised
    zone of 2.7km x 900m, up to 30m thick and grading
    up to 60% Fe.

    2700x900x30 = 73m Cubic Metres Ore

    Now over at the YML thread gringokonyo and camaybay established that 1cubic metre ore = 4 tonnes

    73m Cubic Metres = 292mt Ore grading say 58% Fe



    Expect an update within the next 1 month as diamond drilling has been completed and results released by AQA but not HLX

    Summary
    This truly is one of the last few undiscovered GEM's, previously only Tunkilia provided true fundamental value, but now we can add Yalleen to the list as AQA/API JV are determined to get into production ASAP and will fully fund development if need be.

    The U grounds around Tunkilia provide HUGE SPEC UPSIDE!
    Chris

  2. #2
    FEAR n GREED JBmurc's Avatar
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    Default Worth checking out HLX 95c target -buying at 15c undervalued

    Helix Resources Ltd (ASX:HLX) is another small copper-gold-iron ore explorer that has exploded in the market over the last two months.

    In August, the shares stood at 6c and reached 16.5c on October 11 only to fall back to 14c on Friday.

    Helix Resources has also been exploring a lot harder over the past 12 months, indicated by the chairman's address from Greg Wheeler to shareholders in the annual report.

    Mr Wheeler said that during the period, Helix has focused on three concurrent strategies:

    * Monetise and/or progress development scenarios for our mineral resource assets, including divestment of non-core assets;

    * Identify and secure new ground in regions where operating mines and infrastructure are present and where drill targets have been identified; and

    * Review potential merger or project acquisition opportunities to create 'size' and/or synergy benefits.

    The scoping study completed for the Yalleen iron ore project reports technical and financial viability based on a 5Mtpa road haulage option to access the proposed API WPIOP rail infrastructure 70 kms to the west.

    The financial evaluation indicates significant operating margins can be achieved and detailed studies regarding development aspects have commenced.

    "We monetised our Glenburgh gold asset by vending it into the successful listing of Gascoyne Resources Ltd [ASX:GCY] in December 2009 and distributed in-specie to shareholders +80 per cent of the shares held valued at $3.2 million," Mr Wheeler said.

    "The Tunkillia Gold JV continues to be funded by Minotaur, with Helix continuing to dilute until value is seen in the Minotaur exploration and development initiatives regarding the asset.

    "We have secured significant ground holdings in NSW targeting copper and gold, with initial drilling programs increasing our confidence that mineralised copper zones will be delineated of sufficient size and grade to consider hauling and processing at nearby operating mills with excess capacity.

    "We expect to have continuing news flow throughout 2010 from drilling programs on our NSW copper & gold targets," the chairman said.

    At the beginning of the month, Helix Resources gave a resource update on its Canbelego JV (HLX 51 per cent - and earning 70 per cent; Straits Resources 49 per cent), located 40 kms southeast of Cobar in central New South Wales.

    An inferred resource (estimated internally by the joint venture partners) confirms at a 0.3pc Cu cut-off -1.5Mt @ 1.2pc Cu, or at a 0.8pc Cu cut off - 1Mt @ 1.5 per cent Cu from the resource model at the Canbelego mine prospect.

    This initial resource provides a solid foundation for the project and reaffirms Helix's strategy to identify mineral resources near existing processing infrastructure with potential for access to excess capacity.

    The company is confident it can continue to build on this initial resource base with copper mineralisation open along strike and down dip at the Canbelego mine prospect, and by following up encouraging early stage results from numerous regional targets on the tenement.

    Additional RC drilling is commencing this week at Canbelego to test the Priority 1 regional targets and near-resource extensions.

    Helix expects assay results to be available mid 4Q2010.

    At the Restdown JV (HLX earning 70 per cent from Glencore International AG) RC drilling will commence (directly after the Canbelego drill program) on two greenfields gold targets - the Good Friday and Sunrise prospects.

    The +1,200m RC drilling program is targeting primary gold mineralisation associated with robust (+10ppb Au) gold in soil anomalies surrounding, and nearby to, minor historic workings (goldfield produced high-grade gold from quartz veins in the early 1900s).

    Helix expects assay results to be available in 4Q2010

    SHARE PRICE MOVEMENTS

    *********************

    Shares of Helix Resources finished steady at 14c. Rolling high of the year is 19c and low 5.6c. The company has 131.9 million shares on issue with a market cap of $18.4 million.

    Helix Resources is pushing ahead on advancing the Yalleen iron ore JV project located in WA. along with drill testing its NSW copper and gold targets.

    The Yalleen iron ore project is joint ventured with API Management Pty Ltd (50 per cent Aquila Resources, 50 per cent AMCI) and forms part of their West Pilbara iron ore project which comprises multiple JVs.

    The company also has several other mining projects including its NSW Canbelego copper JV and Restdown & Muriel Tank gold JV.

    It also has the Tunkillia Project, Gawler Craton uranium project and Olary project in SA and Booyeema nickel project in WA.

    One broker has given the company, which is in exploration stage, a discount rate of 18.7 per cent to arrive at a fair value of 95c for the stock.

    It also says the company has good potential for its most advanced Yalleen iron ore project and Tunkillia gold project.

    The company has broad expertise in bringing interested companies on board to further assist in achieving its desired goals through potential operational synergies.

    BACKGROUND

    **********

    Helix Resources Ltd was listed on the Australian Stock Exchange in 1986 and is focused on acquiring and developing assets within the bulk commodities, base metals and precious metals sectors.

    The Helix strategy is to acquire large tenement holdings in the prospective exploration regions of Australia, use of leading-edge exploration methodologies and techniques under the guidance of a skilled Board and management team, and create shareholder wealth whilst managing risks.

    Helix's most significant development asset is the Yalleen iron ore project situated in the Robe Valley in the West Pilbara region of Western Australia.

    The project has an inferred and indicated resource estimate of 84.3Mt channel iron ore with exploration upside.

    Helix released a scoping study on Yalleen development in August which was positive.

    The preliminary economic evaluation indicated post-tax NPV range of $900 million to $1.1 billion with two potential infrastructure solutions for transporting ore to customers.

    Helix is contributing 30 per cent of funding and recognises the benefits of a partnership with a focused, well-funded project manager and JV partner to advance this project.

    During 2009/10 the company accumulated significant landholdings in the Cobar/Girilambone region of NSW prospective for gold and copper with operating mines with excess capacity and excellent infrastructure.

    Drilling copper and gold targets will be the company's main exploration focus during 2010.

    This year Helix has gained exposure to Chile with a dedicated in-country general manager and geologist targeting prospective gold and copper regions.

    The company is accumulating tenements in its own right as well as joint ventures.

    Helix also has exposure to 800,000 oz of gold at the Tunkillia JV in South Australia, exposure to magnetite via the Bonython Metals Group Olary JV and has acquired significant landholdings in the eastern succession of the Mt Isa region in Queensland.

    It has sufficient funds to carry out its exploration and development programs, whilst maintaining a watching brief on acquisition opportunities that may arise in 2010/2011.
    "With a good perspective on history, we can have a better understanding of the past and present, and thus a clear vision of the future." — Carlos Slim Helu

  3. #3
    FEAR n GREED JBmurc's Avatar
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    Cool some buying of late looking good going forward On the buy more list

    HELIX EXECUTE MOU COVERING THE ‘SHERPA PROJECT’ LOCATED IN MARICUNGA BELT - CHILE
    SUMMARY Memorandum of Understanding [MOU] signed with Sherpa project Vendors whereby Helix, through its Chilean subsidiary, has a right to explore and acquire 90% of the Project for US$2.7M in staged payments over 4 years
    The Sherpa target is gold associated with the porphyry systems of the Maricunga Belt, located in the shadow of the Barrick/Kinross Cerro Casale JV 23Moz Au deposit and the same belt as Exeter’s Caspiche Project (26 Moz Au).
    Helix is currently undertaking Due Diligence procedures and the 1st Option payment of US$60,000 is due and payable 15th January 2011
    "With a good perspective on history, we can have a better understanding of the past and present, and thus a clear vision of the future." — Carlos Slim Helu

  4. #4
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    Default

    I agree JB.

    Yalleen is the jewel in HLX's crown...but has some really interesting gold and copper exposure/plays.

    reminds me a bit of GIR

    Hold HLXOA
    Share prices follow earnings....buy EPS growth!!



  5. #5
    FEAR n GREED JBmurc's Avatar
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    Default

    [QUOTE=steve fleming;328090]I agree JB.

    Yalleen is the jewel in HLX's crown...but has some really interesting gold and copper exposure/plays.

    reminds me a bit of GIR

    Yeah a very undervalued stock If my AMU get brought out I'll be shopping for some HLXOA/HLX a pretty safe play in Jnr explorer ranks IMHO
    "With a good perspective on history, we can have a better understanding of the past and present, and thus a clear vision of the future." — Carlos Slim Helu

  6. #6
    FEAR n GREED JBmurc's Avatar
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    Been buying more HLX of late a takeover target if their ever was Yalleen a very nice asset I'm sure others are keen on the expected large cashflows
    going off the RB Milestone Research report HLX will need 181mill CAPEX 70% debt based so HLX will need to raise round 30mill to pay for their 30% share to bring Yalleen iron ore mine into production(HLX have a good set of J.V deals an good exploration grounds that will likely be sold to help with the 30mill)

    the life of the mine 12yrs average production 5mtpa iron ore --cashflows after costs=$317,750,000 per year (HLX earning 30%)

    Yalleen Upside -resource base increases/I.O prices increase Downside-Iron ore prices falling costs rising etc
    Last edited by JBmurc; 22-12-2010 at 07:37 AM.
    "With a good perspective on history, we can have a better understanding of the past and present, and thus a clear vision of the future." — Carlos Slim Helu

  7. #7
    FEAR n GREED JBmurc's Avatar
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    Default

    HLX Qtr report looks like a screaming buy IMHO --CFE should take them over HLX major asset their Iron ore mine J.V is just south of Cape lambert plus the fact they have a large amount of great J.V & tenements 30-40mill takeover.

    http://www.aspectfinancial.com.au/do...A==&popup=true
    Last edited by JBmurc; 29-01-2011 at 09:19 AM.
    "With a good perspective on history, we can have a better understanding of the past and present, and thus a clear vision of the future." — Carlos Slim Helu

  8. #8
    Legend shasta's Avatar
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    Quote Originally Posted by JBmurc View Post
    HLX Qtr report looks like a screaming buy IMHO --CFE should take them over HLX major asset their Iron ore mine J.V is just south of Cape lambert plus the fact they have a large amount of great J.V & tenements 30-40mill takeover.

    http://www.aspectfinancial.com.au/do...A==&popup=true
    Cheers JBMurc

    Been reading the presentation, & i like what i've read so far, they have some big resource companies as neighbours, & a mixed bag of projects across different metals

    Will dig a little deeper

  9. #9
    FEAR n GREED JBmurc's Avatar
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    Quote Originally Posted by shasta View Post
    Cheers JBMurc

    Been reading the presentation, & i like what i've read so far, they have some big resource companies as neighbours, & a mixed bag of projects across different metals

    Will dig a little deeper
    yeah IMHO market value doesn't at all represent their assets--- much does depend on RIO cutting a good deal on using their railway for HLX biggest asset their 30% interest in the Yalleen iron ore mine (300mill+ earnings p.a est)
    "With a good perspective on history, we can have a better understanding of the past and present, and thus a clear vision of the future." — Carlos Slim Helu

  10. #10
    Legend shasta's Avatar
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    Quote Originally Posted by JBmurc View Post
    yeah IMHO market value doesn't at all represent their assets--- much does depend on RIO cutting a good deal on using their railway for HLX biggest asset their 30% interest in the Yalleen iron ore mine (300mill+ earnings p.a est)
    Yeah teaming up with AMCI/AQA is a bloody good JV partner to have, i've always been impressed with AQA's coal & iron ore projects, but its already a large company & i'm looking at the < $20m mcaps, low EV companies

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