I now the old holders of KDR might have seen this before, but thought this article from The Australian in August last year might have some relevance to new holders, or potential buyers:
Kidman comes up smelling of roses BY:BARRY FITZGERALD From: The Australian August 22, 2012
THE punt that the originally NSW-focused Kidman Resources (KDR) took back in April with its $2.5 million cash-shares acquisition of the Home of Bullion (HOB) copper project in the Northern Territory has paid off handsomely.
Since the acquisition, Kidman's shares have just about doubled to the 20c on offer yesterday. No wonder. Kidman has just released another batch of holes from an initial drilling program at HOB with high-grade copper hits, along with other base metals and handy gold and silver counts. It all points to the company doing what it said it would by having an initial inferred resource in the bag by the end of the year.
Latest polymetallic drill hits from the drilling program included 5m at 6.5 per cent copper, 53g a tonne silver, 0.63 per cent lead, 2.75 per cent zinc and 0.61g/tonne gold from 174m. If you want to give the non-copper a copper equivalent value, you're looking at 5m of 8.4 per cent copper. Results from a further 12 holes are pending, so the newsflow in the next couple of weeks from Kidman will be as good as it gets among the juniors at the moment.
There has long been a suspicion that HOB would be worth having in the modern era. It has been mined on and off over the years in a small way. But there was nothing small time about the estimated head grade in previous campaigns of 20 per cent copper.
Obviously, that was hand-picked material. But as a pointer to something bigger potentially going on, 20 per cent copper can be as useful a vector as ever there was. It comes in two parts, the Main Lode and the less worked Southern Lode. Water-handling issues back when pumps weren't like the pumps of today forced a halt at the Main Lode, and work in the Southern Lode was halted in the 1950s after a miner died in a rockfall.
Drilling by previous owners in and around the old workings showed that the mineralisation continued at depth. More importantly, it also showed that high-grade material continued beneath the supergene enriched zones closer to surface. Due to lack of funds, various deals falling over, and pressure from the Territory government to relinquish the lease, the prospector owners were quick to do a deal with Kidman when it came knocking a second time. Kidman had made inquiries a year earlier but was muscled aside by OZ Minerals and a Chinese consortium that was sniffing around. By March this year the prospector owners were still without a deal, allowing Kidman to strike the April deal.
HOB lies 350km northeast of Alice Springs. It is not as remote as it might sound. An all-weather airstrip is 25km away, the Adelaide-Darwin railway passes 10km to the east and a natural gas pipeline is within 50km. Those that prefer to drive need to turn off the Stuart Highway for the 30km run along a bush track to the old mine site.
After its recent doubling in share price, Kidman's market value has grown to $20m. The initial push at HOB is funded by remaining proceeds from the $4m raising that accompanied the HOB acquisition. Should HOB's upcoming deeper drilling program continue to produce high-grade hits, raising funds for a bigger push won't be an issue.
