worth a little research

Venture Minerals Limited (VMS) could be worth some research in the light of its ASX announcement (14/10/2009).
Positives:
1. Mount Lindsay Poly-Metallic Project (Tin/Tungsten/Magnetite) is 1.6KL from sealed road & 23 KL. by sealed road to existing rail with spare capacity.
2. Scoping study highlights at 4.4 MT annual production, an Average Annual Net Revenue of $109M at full production, based on annual operating revenue of $241m & costs of $132m. (refer Annual Report 2009).
3. Metallurgical tests indicate all three commodities (tin/tungsten/magnetite) can be extracted using simple and cost effective magnetic separation and gravity techniques.
4. Major high grade tungsten zone at Mt. Lindsay which suggests multi – million tonne targets (ASX 14/10/2009). Tungsten sells for US $15,500 per tonne (2.5 times copper). China controls 75% of world production & prohibit export of tungsten concentrate. It is 50 times rarer than copper & its unique features limit substitution.
5. Experienced management team several of them associated with Gryphon Minerals.
6. Renumeration of management team very fairly paid relevant to similar operations.
7. Relatively small market capitalization with not a large number of shares on issue.
8. VMS have approximately $10 million in cash after recent placement much of which will be used for diamond drilling the Mt. Lindasy Project.
9. Huge exploration potential situated immediately adjacent to current resources.
10. It appears to be the last exploration company in Tasmania’s north west that is not Chinese controlled (refer Savage River, Avebury, Roseberry)
11. Excellent breakout on the charts.
12. New Yearly High just established for VMS, which is always a positive sign.
Negatives:
1. Estimated capital expenditure of $255m. required for the project so probably will need a Chinese partner at some stage.
2. Some of the recent placement stock could come out at the current prices, given the placement was done fairly recently at 20 cents.
3. Gap on chart may need to be filled.
References:
1. Recent ASX announcements
2. Annual Report 2009
Please note no investment advice is given on VMS please do your own research.

Regards
Buffett