mt. gibson from yt

Hey guys,

Here's my next Iron Ore play,

Whats funny is how uneducated/ignorant I was back in Jan re Magnetite, I didn't even know what it was thus 35% = crap grade for me, lol now I know anything above 30% is good for magnetite operations,

The big thing to remember here is that the issued shares were recently doubled by a placement to brokers etc at 12c, also the share price has run up very strong in the past 2 weeks,

It could either be a pump and dump by brokers - Which I doubt given the upside potential of the deposit

Or brokers accumulating with a research note or some significant news soon, which I think

Anyway the deposits real which is what I focus on




ACS


Mkt Structure

Shares
100m + 30m 20c Opies 30/9/09

Mkt Cap @ 20c = $26m Current
Mkt Cap @ 30c = $39m Target 1
Mkt Cap @ 50c = $65m Target 2


Cash
$6m + $6m when opies exercised therefore = $12m


Placement
It should be noted that 55m shares were placed at 12c recently, these shares from what I understand it were placed to Sophisticated Investors who are very unlikely to stag a profit, but may do so nevertheless,

Thus caution is advised when buying, the shares come one Friday 27th July, so it will be intersting to see what they do,



Projects


Mount Gibson Iron Ore, 80% maybe more, Mid West W.A. 5km's from MGX's operations
Although there is no JORC yet, drilling so far has shown 20m -80m thick 30% - 40% Fe Magnetite Ore from 16m - 30m down

From these drilling results, the potential strike length of 8km's and talking to the company, its clear that ACS have a very good chance fo firming up minimum 100Mt@30-35% Fe

Now adjacent to ACS's Mount Gibson project is Extension Hill, which was MGX's early Magnetite discovery of 240Mt's (unsure of grade) The Chinese (Sincom Investments Ltd) bought this off MGX. The problem is Extension Hill is only 240Mt's and minimum a standalone operation of Magnetite needs 400Mt's, thus you can see why ACS's Mount Gibson project is vital to Sincom.

It is clear the companies intention is to firm up a 100Mt resource and sell it to the Chinese (Sincom Investments Ltd).

Depending on the end result, I would expet a 100Mt@35%Fe deposit to fetch close to $50m = 50c ACS


While the project still doesn't have a JORC, I'm betting it will be a matter of time.



Katanning Ferro Vanadium, Up to 90%, W.A.
This project is an early stage AXO Aurox Balla Balla, its Ferro Vanadium and covers an Area of 500km2 so could b very very large,

However it is still very early days,

Grab samples have yielded some significant results so far though


Noresman Gold, 100%, W.A.
JORC 65k oz's Gold (grades 1.5 g/t - 2g/t Au) This deposit is too small to justify any sort of stand alone operation, however Toll Treatment of the Ore could net $5m+



Summary

- 100Mt Resource at Mt Gibson should be worth 50c to ACS
- Chinese interest in Mt Gibson as they desperatley need to get more Ore to make Extension Hill a viable project
- Katananning looks promissing
- Very large placement done recently at 12c
- Share price has run hard in the last few weeks,


Even though there was such a large placement done at 12c, I firmly believe that the recievers are in it for the Chinese deal and are unlikely to stag a profit, so I bought shares on Friday at 22c-23c I also bought options at 10c-11c,

Cheers
This is from YT ASF