In helping me do some research, as a base i used this post by Young Trader on ASF before topping up on friday. Have a look, and note that YT posted similar to this on MDX when it was at 10 cents about a week prior to it peaking at 39cents.
Well just like MDX, out of nowhere ACS have sprung to life, so here are the fundies again
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
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,
Grab samples have yielded some significant results so far though Moreover they have been doing alot of mapping and testing, I wonder if they have some target sizes already?
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 - Drilling to commence on both projects __________________ Note: I am not a Financial Adviser, nor are any of my posts intended to be financial advice, they merely express my own opinions
