Been going through all the Lao announcements dating back to 2006. Some few interesting things:
1. The Yuqida tenement is 589 square km. The JORC resource is only within 67 square km. There's still a lot of areas to drill to test for resource. I haven't married up the drill holes for this round compared with last round (not sure if that's available, but I'll let someone with more expertise to do that).
2. SARCO only has 35% of Yuqida tenement at the moment, but in the original agreement, they have the right to earn up to 85%. They must go through 3 stages. First stage is surveying stage; second stage is feasibility and mine development planning; third stage is mining production and processing). They are currently completing stage 2. It does not say how much more interest they will earn by completing stage 2.
3. It is intended that LSI will be mined first as it is closer to infrastructure.
4. In November 2006, there was proposal to build a trans-asian railway network that links Lao, Cambodia, Vietnam, China (and others) together. This was going to be overseen by UN. I wonder whether it has been built. That's next on my research list.
5. They were also going to apply for an additional 599 square km in senekham. This was back in 2007/2008. I wonder what's happened to it. Anyone knows?
6. And this is perhaps one of the most interesting one. NFC valued their interest in SARCO back in 2007. They valued this at 336m yuan. This was even before the maiden JORC resource in 2008. Assuming that value has stayed the same (alumina price now is much the same as it was back in 2007), this would make Ord's interest in SARCO approximately 46m (using 1:7 fx rate). Seems to me that company is drastically undervalued.
Still going through announcements and if I discover anything more insightful, I;ll post further.
psyber
VAN Price at posting:
9.3¢ Sentiment: Buy Disclosure: Held
