PMH: PacMag Metals Ltd

[stolwyk]

PMH: PacMag Metals Ltd: http://www.pacmag.com.au/

101.1 mill shares, 2.1 mill pp shares, 13.8 mill options, Nov 2006 @ 60 cents. Also 44.7 mill options (PMHOA), 31 March 2008 @18 cents. And 6.7 mill Man options, 2010-2012.
Current share price PMH: 54 cents and option PMHOA: 33 cents.

PROJECTS:
1. Ann Mason deposit: Nevada-Copper
4 Oct 2006: INITIAL PACMAG RESOURCE ESTIMATE (JORC COMPLIANT) FOR ANN MASON COPPER-MOLYBDENUM DEPOSIT
http://sa.iguana2.com/cache/b0d92709...PMH-336722.pdf

KEY POINTS: "PacMag's initial Ann Mason resource of 810 million tonnes @ 0.40% copper and 0.004% molybdenum (0.30% copper cut off) contains 64% more copper than previous estimate. • 3.2 million tonnes (7.1 billion pounds) of contained copper metal with an inground value of US$25 billion based on current metal prices".

"The Ann Mason copper deposit compares favourably in size and grade to a number of existing North and South American porphyry copper mining operations such as Teck Cominco's Highland Valley copper mine in Canada, Quadra's Robinson copper mine in Nevada and Phelps Dodge's Arizona copper operations at Cobre-Chino and Morenci.

"Ann Mason is also of a similar size and grade to other publicly reported resources and reserves from deposits under evaluation where detailed feasibility studies are in progress such as at Aur Resources' Andacollo sulphide copper deposit in Chile and bcMetals' Red Chris porphyry copper deposit located in British Columbia (Table 2)".

2. Blue Rose: Copper/Gold/Moly.
27 July 2006: Drilling commenced at Blue Rose copper project (50% owned): Three regional copper and one new uranium target to be tested.
http://sa.iguana2.com/cache/4d3f7235...PMH-329429.pdf

3. Uranium:
11 Oct 2006: New high grade Uranium zone: Olary joint venture.
http://sa.iguana2.com/cache/de80822d...PMH-337256.pdf

"The Directors of PacMag Metals Limited ("PacMag") are very pleased to report that recent reconnaissance rock chip sampling from the company's Olary joint venture project in South Australia returned high grade uranium results. PacMag is the manager of the Olary joint venture and may earn up to 75% equity in the project from Giralia Resources NL by the completion of a bankable feasibility study".

"...management is considering opportunities to maximise shareholder value from its portfolio of existing uranium projects".

3 Other:
http://www.pacmag.com.au/projects_ov...6.html#uranium

Gerry
Readers, please do your own research and you decide if and when to buy, hold or sell any stocks or metals/commodities.

[steve fleming]

I see that James Bone in the SMH in his 'Diary of a day trader' column ( which is pretty entertaining!) has sold his entire uranium portfolio and is now 100% in PacMag.

Up 150% in a couple of weeks.

[stolwyk]

Thanks for that.

From my previous post:
"...management is considering opportunities to maximise shareholder value from its portfolio of existing uranium projects".

Wait and see!

Gerry
Readers, please do your own research and you decide if and when to buy, hold or sell any stocks or metals/commodities.

[NoVice]

Anyone watching this Co. The Germanium interests me as a valuable side product. I see the Co. values it at US$1,000/kg in their project assessments.

"BISMARCK, North Dakota: A large and valuable deposit of high-grade germanium, a scarce silicon-like mineral used to make semiconductors and fiber optic cables, has been uncovered by an Australian company.

A consultant says it may be the first time a "significant" germanium deposit has been found in a coal seam in North America.

Formation Resources Inc., of Bismarck, a newly formed unit of PacMag Metals Ltd.,, based in West Perth, Australia, was granted a state permit in April to drill about 600 test holes for uranium in southwestern North Dakota. After completing 336 test holes, the company found germanium.

China and Russia mine germanium from coal seams, said Jim Guilinger, a PacMag consultant and president of Arvada, Colorado-based World Industrial Minerals.

"It's a major find in our mind, and it's definitely a whole new wrinkle on the project," Guilinger said. "It's a lot more rare than uranium."

Guilinger said PacMag Metals tested for germanium because of a brief mention in state documents studied by company officials.

"There was a reference in a geological survey from the early 1950s that mentioned evidence of germanium in the same area where we are drilling for uranium," Guilinger said. "We looked for it, and sure enough, it was there."

The U.S. has never had a germanium mine, Guilinger said.

The United States used 66 tons of germanium last year, up from 22 tons in 2003, the U.S. Geological Survey says. But its domestic production of imported germanium has remained flat over the past five years at about 5 tons, the agency said.

Germanium in the U.S. comes from imported material, or from scrap. It is recovered as a byproduct from zinc mines in Alaska and Washington state, and is processed domestically at refineries in Oklahoma and New York, according to the USGS."

This is a tightly held Co. 145m shares with top 20 holding 51% Largest S/H is GIR with 11%. $29m market cap. They appear to be a well run Co. that just get on with doing the job. Only $2.5m in the bank & I think are currently burning $1m / Qtr so a SPP may be in the cards.
I'm looking to get in but I'm still to learn to spot the right entry point though I'm getting better (I think).

[Huang Chung]

Hi NoVice, and welcome to Sharetrader.

I'm certainly keeping an eye on Pacmag, and hold stock indirectly via a sizable stake in big brother, Giralia. Their projects are big, but will require plenty of moolah to get up and running. New Meadow Valley copper project in Arizona appears to be at the right address, and could be quite an opportunity for them.

http://www.stocknessmonster.com/news...E=ASX&N=461025

Giralia has held a 10.4% stake in PMH since 2005, after spinning a number of projects out to it. Mike Joyce, the PMH Chairman is the GIR MD, and they work out of the same office in Perth (PMH has a service agreement with GIR). GIR seems better positioned than anyone to understand the PMH story, and provide the necessary support if and when its required.

I'm happy to keep playing PMH indirectly for the moment, but any good drilling results at Meadow valley will probably see me take a direct stake as well.

Here's the link to the Pacmag website:

http://www.pacmag.com.au/

[corporateraider]

I agree with you NoVice that this looks an interesting story. The share price has been in a steady uptrend for a while. Of course some of that is the increasing price of copper. Commentary suggests Cu will appreciate more over the next couple of years due to predicted shortages.
The Hot Copper thread is well worth a read regarding this stock. Make your own mind up on how balanced the posts are but the information is good.
The company has a huge resource of low grade copper and there is a strong suggestion that they will replicate this at Blue Hills. As Huang Chung says it will take a huge investment of capital to unlock it and now is obviously not the time.
The high grade Shamrock which is currently being drilled is much more exciting and coming results could give the share price another (huge) boost.
And when to get in? I first bought at 7 cents this year, continue to accumulate and plan to continue. But I am not a trader! But it doesn't seem that it will get any cheaper

[corporateraider]

The share price just keeps slowly climbing higher and higher. An announcement regarding the germanium is imminent and the price is underpinned by the huge resource at Anne Mason.

[NoVice]

I can't say I'm thrilled with the t/o offer - seems very opportunistic to me.

Anyone else got a view.

cheers

N

[corporateraider]

NoVice, I have the same view as you.

[Huang Chung]

Yeah, probably opportunistic, but who can blame Entree for having a go.

Giralia will surely be accepting (considering the PMH Chair is the Giralia MD), so that accounts for 10% of the stock right there.

Whilst Pacmag's major projects look good, they will require tonnes of capital to get off the ground, so the choices would be taking on a mountain of debt (if they could find someone willing to lend them the money), doing JV's this dilluting their interest in these projects, or doing substantial capital raisings (also dilluting existing shareholders), or some combination of the above.

At least with this deal, you're getting some Canadians to make a stand and offer you more than players on the ASX are willing to. Considering you'll retain exposure to these projects, plus gain exposure to some new ones, its probably not all that bad. Best of all, Entree have plenty of money to get one or more projects moving.

Who knows, someone else might come-a-knockin' before this is all done and dusted.