Ferret's Stock to Watch: KORAB RESOURCES LTD 09:11, Monday, 26 March 2007
A COMPANY ALREADY CASHING IN ON SOME OF ITS URANIUM ASSETS
Sydney - Monday - March 26: (RWE Aust Business News) ****************************************************
OVERVIEW ********
Korab Resources Ltd (ASX:KOR) is a diversified resources company with a portfolio of gold, uranium, magnesium, copper, cobalt and zinc assets.
Investors have been combing through companies with encouraging uranium prospects in the light of a change in policy relating to the use of uranium power plants in Australia.
Last week the Labor Party announced a review of its anti-nuclear policy and the acceptance of new local uranium mines.
Korab has been currently restructuring its uranium assets.
Among Korab's 10 projects on its plate are:
* Maitland project, which adjoins the Lake Maitland uranium deposit in Western Australia, contains several extensions of this deposit and has a potential to host commercially viable calcretic style uranium mineralisation;
* Batchelor project in the Northern Territory covers the same stratigraphic horizon that hosts a number of nearby uranium, polymetallic and gold mines and resources. Korab has already developed a number of advanced uranium and gold targets that it expects to drill test in the near term. Batchelor project contains the Winchester magnesium deposit which as a JORC compliant resource of 16 million tonnes MgO which is sufficient for a mine life of 25 years with annual production of 50,000 tone of magnesium metal; and
* Green Alligator project near Batchelor covers an area of over 100 square kilometres of highly prospective ground. It abuts the Woodcutters zinc/lead mine and contains several gold anomalies as well as radiometric highs.
Following numerous enquiries from sharebrokers, shareholders and prospective investors, Korab Resources has offered the following information to the market:
* Transfer of the uranium rights from Korab Resources to its wholly owned subsidiary Uranium Australia Ltd was settled on February 27.
* The in-specie distribution of Uranium Australia shares to Korab Resources shareholders will be put to a vote by Korab shareholders at a general meeting yet to be called.
* The distribution record date for the in-specie distribution of Uranium Australia shares to Korab Resources shareholders has not been set as yet.
* At the time of an in-specie distribution of Uranium Australia shares to Korab Resources shareholders, any Korab shareholder who holds Korab shares on the Distribution Record Date will be entitled to receive between 1.61 and two free Uranium Australia shares for every one Korab Resources share held.
* The entitlement record date for priority allocation of the shares in Uranium Australia during any initial public offering of Uranium Australia shares has not been set as yet.
* Any Korab shareholder that holds Korab shares on the entitlement record date will be entitled to a priority allocation of shares during any IPO of Uranium Australia.
SHARE PRICE MOVEMENTS *********************
Shares of Korab Resources on Friday edged up 0.5c to 80c. Rolling high for the year is 98c and low 20c. The company has 30.7 million shares on issue with a market cap of $24.5 million.
Meanwhile the most advanced of Korab's projects is Melrose gold project where Korab is focusing on bringing to production an established JORC compliant gold resource of 306,000 ounces.
The resource includes higher grade near-surface supergene zones and high grade shoots assaying up to 211 g/tonne (over six ounces of gold per tonne of ore).
Melrose project lies in Wanganoo gold belt in Western Australia 500 kilometres north of Kalgoorlie and 40 kilometres east of the Yandal gold belt which hosts around 18 million ounces of gold in several multimillion ounce deposits, including Jundee, Bronzewing, Thunderbox, Darlot, Centenary and others.
Recent review of the $10 million database of geophysical, geochemical and drill data acquired as part of the Melrose project purchase has produced structural gold targets stretching over 30 kilometres within the Melrose project and increased the potential of the Wanganoo gold belt to host a multi million-ounce gold deposit.
Close proximity of Melrose to existing processing infrastructure at Darlot and Bronzewing provides Korab with an early development opportunity.
Korab has arguably one of the best portfolios of uranium projects in Australia.
In addition, Korab's portfolio of projects includes advanced projects in Western Australia and the Northern Territory with potential for polymetallic mineralisation including gold, copper, uranium, zinc and magnesium.
Korab is led by an experienced management team with proven project acquisition and development skills.
As at February 28 the company held equity or was earning equity in 10 projects in Western Australia and the Northern Territory.
In December the company opened an office in Beijing, China.
The operating loss after income tax of the economic entity for the half year to December 31 was $482,728 (2005: $188,471).
The economic entity's basic loss per share for the year was 1.07c (2005: 0.49c).
Since February, the company and its wholly owned subsidiary Uranium Australia signed a binding, unconditional agreement to transfer to Uranium Australia the rights to 90 per cent of uranium and thorium mineralisation within projects where Korab has or is earning an interest.
Consideration is $2.63 million, which will be satisfied by a cash payment of $2 million and an issue of 90,000,000 shares in Uranium Australia.
On February 27 the company and Uranium Australia settled the transfer of rights.
BACKGROUND **********
Korab Resources Ltd was listed on the Australian Stock Exchange on August 31, 2005.
The company was formed in March 1998 to explore projects within Western Australia and to seek advanced exploration and resource development opportunities within Australia and overseas.
The company brings together an experienced Board and management team with a strong record in the acquisition, exploration and development of resource projects.
To maximise the benefits of this experience and in recognition of the risk and speculative nature of the junior resource sector, Korab limits its exploration and acquisitions to those projects which have the potential to return significant rewards to the company and its shareholders.
Korab's portfolio includes:
Those projects, whilst having significant merit in their own right, also provide Korab with the strong exposure to the exploration sector thereby assisting the company in securing other advanced projects, both within Australia and globally.
* The Melrose project in Western Australia which contains an open at depth resource of 306,000 ounces of gold plus several targets ready for drilling.
* The Mt Elephant project contains several volcanogenic base metal and gold targets. Recent drilling in the main area of outcrop produced 3 metres @ 1.32pc Cu from 105 metres. At the same time a number of sub-cropping gossan zones have been identified up dip from this horizon and will form early targets for further testing.
* At the Darlot East project our consultants have identified exploration targets for structurally controlled deposits that formed synchronously with the Darlot deposit. Aeromagnetic surveys and geochemical sampling have produced several targets for drilling.
* Throssell project covers an area of anomalous magnetics and gravity adjacent to the interpreted northeast limit of the Yilgarn Craton. This project provides potential for the discovery of buried greenstone belts in an under-explored locality.
(20min delay)