For those that are interested see the analysis below from Young Trader.
YML Fundamental Analysis
Mkt Structure
Shares
60m + 20m 25c 30/6/07 options
Fully Diluted Mkt Cap
@20c = $12m Current
@30c = $24m
@40c = $32m
@50c = $40m
@$1 = $80m Target
Cash
$4.5m + $5m if options are exercised
Projects
1. Rose Dam
Used this Gold project to generate $6.6m in cash, good cash cow and shows management knows how to get a project going
2. Irwin Hills JV YML-40% MRE-60%, Nickel, In W.A.
JORC 20Mt@ 1%Ni (Nickel) + 0.12%Co (Colbat)
High levels of Chloride so having trouble getting MRE to agree to Toll Treatment at its Murrin-Murrin Plant, although its Laterite Nickel its not that bad as MRE is the Laterite King!
MRE stated in their last Qtrly that "Preliminary mining studies are underway to determine the viability of direct trucking of ore to Murrin Murrin plant"
The cobalt upgrade pilot scale testwork is proceeding and will be reported upon once results are to hand
3. Carr-Boyd YML earning 51% from TIR (Now part of CSM Cons-Min) can earn up to 90%
JORC 600Kt's@ 1.4%Ni + 0.5%Cu all within 100m of the surface so open pittable!
Using an EV of $5 lb Nickel and $2 lb Cu this first pass JORC gives the deposit an In Ground Value of over $150m
The Company expects to receive the results of this Study by early May
4. Marillana 100% interest, Iron Ore, In W.A. 2kms from BHP’s Brockman Deposit 225Mt@ 60% Fe This project is the SPEC KILLER! Its an Iron Ore tenement 2kms west of the Brockman Deposit (225Mt@ 60% Fe) Its old Hamersley Ground who outline a STRIKE OF 10KM's! Grading an avg 60% Fe! Width is probably 350m avg and thickness of the Iron Ore is 15m.
Initial JORC Estimate was [email protected]%Fe but this was from a very small portion the lease, I estimate it could be as big as 10kms x 350m wide x 15m thick = 240Mt@58%Fe
The in-fill drill programme, with the objective of establishing a JORC compliant resource in the North-West Sector, is scheduled to begin in late May, 2007. The current mineralisation estimate for the North-West Sector is 30Mt grading 58.4% Fe.
Mining Study
An independent mining consultant has carried out a preliminary open pit mining assessment with the objective of indicating stripping ratios and mining costs that could be applicable to the North-West Sector (based on the current mineralisation estimate). The assessment indicated a stripping ratio (overburden : mineralisation) of approximately 4:1 and an overall mining cost of $7.60 per tonne (i.e. per tonne of the 30Mt mineralisation estimate). This assessment takes into account the “free digging” nature of the “valley-fill” material overlying the mineralised zone.
The Company has received several preliminary enquiries from Chinese steel mills regarding ore sales (DSO and beneficiated products) and/or possible participation in the project.
5. Other Spec projects
East Sunrise 100% interest, Gold, 35 kms south of Laverton
Historical exploration has returned promising drill intersections including 14m at 10.2 gpt gold. Further drilling is planned for early 2007. Just food for thought.
Kanowna South Earning 70%, Gold, W.A. Drilling to commence shortly,
Plumridge Earning 60%, Mineral Sands, W.A.
JV with Western Areas
Looking to do some drilling in 2007
Byro Farmed out 70% Free carried 30% up to $1m exp, Nickel & Copper, W.A.
Mithrill farmed in and should do some drilling by 2nd Qtr 07, following up on oxide intersections of Nickel & Copper,
Ravensthorpe 100%, Base metals, W.A. Grounds near BHP's Ravensthorpe project, apparantly prospective for Zinc/Lead,
Attributable Value
Irwin Hills @$2.50lb Ni =$50m, YML 40%= $20m
Remember Laterite (low grade) No Cap-Ex as can be treated at JV partner MRE's Murrin Murrin Plant,
Carr Boyd @ $5lb Ni + $2lb Cu = $150m, YML's up to 90%= $135m
JV with Cos Min, Excellent Open Pittable Options and scoping study due very soon!
Marilliana 30Mt @ $15t= $450m,
Elephant Ground, possibly only 5% of total size, excellent Infrastructure with BHP Rail Running Straight passed deposit! 50m of top soil, drill results due soon. Current Iron ore prices $75+/t estimated cost = $7.6/t Margin = $65+ t yet I'm only using $15
Total = Approx $600m or $7.50c a share
Attached Images
YML
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