YTC - YTC Resources

[mrgroundwork]

Surprised to find there are no threads on this stock... anyone holding or been watching?

Has obviously had a stellar performance since listing last year... it is also heavily backed by some shrewd Chinese investors that no what they are doing...

More surprisingly, all the drilling results so far have been extremely promising... unfortunately, they are not in the current flavours of the month (ie coal or iron ore) but they have got some good grades of tin and some other moire obscure metals... The market doesn't seem to have shown a huge appreciation for these results thus far, or perhaps they are just priced in...

Anyway I bought in, in the high 90's... I am pretty bullish on this one...

[mrgroundwork]

JORC resource of roughly 22,000 tonnes of tin... at current Tin price of approx $20,000/ton that is equal to $440 million resource...

With all the tin sitting very shallow in the ground it should be fairly easy and cost effective to pull out of the ground... and currently management look to tentatively be aiming to produce in 2010... it doesnt seem that this or the rising tin price have been priced into this stock...

anyone else following or just me? perhaps the heavy chinese involvement is scaring off investors? or the lack of liquidity due to the stock being so tightly held by management and major shareholders?

[Golf 16]

Hey Mrgroundwork,
another lonely thread. Bit like NQM.
Anyway, seems that YTC are making good progress on the Hera gold project. The info below is from 'the Aussie' last week.
Couple of brokers have coverage from memory.
A KEY milestone has been reached by YTC Resources with the completion of its resource estimate at the Hera gold project, located 100km southeast of Cobar, NSW. Hera now as estimated 560,000oz of gold equivalent using a cut-off production cost of $125 a tonne.

The resource breakdown stands at 2.18 million tonnes at 3.7 grams/tonne gold, 18g/t silver, 2.8 per cent lead, 5 per cent zinc, 0.1 per cent copper. The resource remains open at depth, and to the north and south.

Andrew Muir whipped out a note on YTC this morning continuing a “buy” tag on the stock. It is trading today at 24.5c with Hartley putting a valuation of 57c a share. He added that there is good potential for further upgrades.

He said this resource would be used to finalise the definitive feasibility study which is due in the final quarter of 2010, with the start of decline development potentially happening shortly afterward.

I do not hold but am interested. Wonder what others think??
Cheers
Golf

[happytown]

whilst ytc is currently concentrating on gaining mine permitting at its hera au-ag-pb-zn-cu project

its tin assets include

2 resource deposits
ongoing management fee from current tin operation
several tin projects

2 resource deposits:

Doradilla Project (NSW, earning 70%), jorc inferred resource 7.81Mt @ 0.28% Sn for 22,300t Sn, using 0.1% Sn cut-off - YTC hole outside resource area intersected 38.1m @ 0.53% Sn from surface, with at least another 5km skarn untested
Pound Flat Project (NSW, 100%), 1982 non-jorc resource estimate 642,180m3 @ 1.38kg SnO2/m3 for 8,860t SnO2 - historical drill results incl 98.5m @ 0.13% Sn from 13.5m, 49m @ 0.18% Sn from 1m to eoh, 49m @ 0.13% Sn from 1m to eoh

ongoing management fee

ongoing management fee (equal to 5% of Yunnan Tin Group Partners after-tax net profit) courtesy of YTC's involvement in the MLX/YTGP 50/50 jv in respect of MLX's Tas tin operations, incl Renison mine

tin projects

above-mentioned Doradilla and Pound Flat projects, as well as
Tallebung Project (NSW, 100%), late 2008 6-hole diamond core YTC drill results incl 1.2m @ 1.36% Sn from 1m, 1m @ 1.30% Sn from 143m, 3.3m @ 0.25% Sn from 103m, 24m @ 0.23% Sn from 163m, 17.7m @ 0.22% Sn from 186.3m, 5m @ 0.21% Sn from 11m, 10m @ 0.17% Sn from 62m, 16m @ 0.15% Sn from 31m, 15.9m @ 0.14% Sn from 52.1m, 31m @ 0.11% Sn from surface, 27m @ 0.11% Sn from 27m
Torrington Project (NSW, 100%), [approx 2km from Taronga Sn deposit, 46.8Mt @ 0.145% Sn] no expl carried out by YTC to date

current fully diluted mc @ .28 = $47.635M, $5M in bank

[mr. jeff]

ann out this morning;

FURTHER HIGH-GRADE COPPER RESULTS AT NYMAGEE
YTC Resources Limited (“YTC” or “the Company”) is pleased to announce further strong copper
results from its ongoing drilling programme beneath the historic Nymagee Copper Mine.
Holes NMD002 and NMD002W1 were drilled as a parent and wedge hole approximately 40m
and 60m north of the high grade copper results recorded in drill holes NMD001 and NMD001W1.
NMD002 and NMD002W1 recorded results of:
 NMD002: 11m @ 3.7% Cu and 15.7g/t Ag from 401m, including
5m @ 6.1% Cu and 27g/t Ag from 401m
 NMD002W1: 15m @ 1.6% Cu and 7.2g/t Ag from 346m, including
6m @ 2.7% Cu and 9.2g/t Ag from 355m

price up 11% on this news, was also strongly up yesterday, so that was nice for someone. Grades look very good.

[mr. jeff]

For an update on YTC,

there has been no news released, excepting a BRRadio discussion which I haven't yet listened to (on the 20/12). There was negligible movement then, but yesterday YTC was up strongly (8-9% I think ) and again today up 4% this morning. Don't know why.

Chart shows strong volume recently. If anyone has any suggestions that would be interesting.

Cheers.

[mr. jeff]

Further to Tech/A's breakout post, just relating that to this thread, YTC has moved up through the 0.50 level - moving yesterday to a high of 0.55 and coming back 6% today on very light volume.

Is this light volume just a normal reaction to the big move up yesterday, and will a continuation follow ? I am wary of light volume at this time of the year, it seems that stocks move a little differently through this period sometimes...

Light volume on a down day following a strong move is a very good buy signal from what I have read. Anyone with thoughts ?

[arguls]

I remember i wrote message some time ago when this stock was 0.17 AUD and told this one will be tenbagger sometimes. MOD deleted my message.

[tech/a]

Anyone with thoughts ?

I see YTC's price action as pretty normal.
What we look for is Extremely light volume on a down day within 5 periods of a good up move.
Not seen "so Far" after this recent move.
Next couple of days will tell the tale.

[happytown]

good drill results continue form the hera project with today's ann of "bonanza grade" results of 10.2M @ 68.3 g/t Au from 520.2m [incls 4.2m @ 164 g/t Au from 522m]

extensive resource extension drilling continues

100% return in just over three months on this one

[springhill]

MC - $53m
SP - 21c
Shares - 252m
Options - 3m
Cash - $15m

HERA PROJECT DEVELOPMENT
Hera Project Permitting
The Part 3A Application for approval of the Hera Project Development has now entered final determination stage with the NSW Dept. of Planning.
YTC Resources has reviewed the Final Approval Conditions to be recommended to the Deputy Director General and is satisfied that the Final Approval Conditions are consistent with the Company’s expectations.
Accordingly, the Company understands the Hera Project Part 3A Approval is imminent.
Financing
YTC has substantially advanced negotiations on Project funding with a number of funding providers.
Development Contracts
YTC is close to completion of all key project development contracts including underground mining, camp construction and the EPC Contract for process plant construction.

DRILLING OF NEW EM TARGETS UNDERWAY AT HERA
YTC has also completed an extensive (‘DHEM’) survey at Hera with a number of high priority targets identified. Strong conductor targets were identified to the north, south and east of the Hera Deposit. All targets are considered likely extensions to the known mineralisation.
Drilling at Hera, designed to sequentially test each of these targets, is now well underway. The first drill hole in the programme, HRD040, intersected strong sulphide mineralisation with visible gold in the target zone. Results for hole HRD040 are expected shortly. The first hole testing the eastern targets (Kershaws) has also intersected strong sulphides in the target zone.
Drilling is currently completing a daughter hole above HRD040, before moving to test the targets identified at Hera north

ACQUISTION OF OZ MINERALS NYMAGEE TENEMENTS
YTC has reached agreement with OZ Exploration Pty Ltd (‘OZ’), a subsidiary of OZ Minerals Ltd, to purchase a strategic tenement holding immediately surrounding the Hera-Nymagee Project.
The OZ Minerals tenements represent a logical and exciting addition to YTC’s existing tenement coverage and increase YTC’s tenement holding along the highly prospective Rookery Fault Zone of the Cobar Basin to over 1040 km2.

NEW TARGETS IDENTIFIED AT NYMAGEE
A down hole EM (‘DHEM’) survey at Nymagee has identified new, high priority targets at Nymagee North, approximately 500m north of the existing Nymagee Resource.
Drill testing of these targets is expected to commence in August

Appointment of Mr Gary Comb as Non-Executive Director
On the 4th July, Mr Gary Comb was appointed an Independent Non-Executive Director of YTC Resources. Mr Comb is an engineer and mining industry veteran with over 26 years experience in the Australian Mining Industry, both with mining companies and in mining contractor roles. He spent four years as Chief Executive Officer of BGC Contracting Pty Ltd, the mining contracting arm of West Australian construction group BGC Ltd. From 2003, Mr Comb was Managing Director of Jabiru Metals Limited, taking the Jaguar Copper/Zinc Project from discovery through feasibility, construction to operations. Jabiru Metals was taken over by Independence Group Limited for A$532 million in 2011.
YTC is very pleased to have the addition of Mr Comb’s experience to the Board as the Company approaches the commencement of mining.
Retirement of Mr Richard Hill as Non-Executive Director
On the 11th July, YTC advised that Mr Richard Hill had resigned as a Non-Executive Director of YTC. Mr Hill has been a Director since before the Company’s IPO in 2007 and played a key role in the company’s development and in the acquisition of the Hera-Nymagee Projects. The Company thanks Mr Hill for his substantial contribution.

YTC Resources is reviewing its Board composition as it transitions from exploration to mine development.

[Bushman]

Actually took a position in YTC today. Over 2m of shares flushed out today.

Near-term catalysts -
Hera 3A approval (imminent)
Hera financing (imminent)
Further exploration results esp downhold magnetics.

Been hammered due to market worries over the financing of the Hera capex ($73m). Overdone esp as Glencore is a major investor @ 6%. Gcore knows the region well having made plenty on the CSA mine.

Oversold despite the very challenging capital markets for juniors. IMO, DYOR.

[springhill]

Overdone esp as Glencore is a major investor @ 6%. Gcore knows the region well having made plenty on the CSA mine.

Hi Mate, do you mind providing what you know of Glencores involvement with CSA mine? May serve as a template for their involvement with YTC

[Bushman]

Hi Mate, do you mind providing what you know of Glencores involvement with CSA mine? May serve as a template for their involvement with YTC

Glencore bought Golden Shamrock (listed coy) in mid-1990s - GS owned the CSA mine which is in the Cobar region. If you read some of YTCs presentations, the geological model they are pursuing is that they are sitting on another CSA type deposit. That is why the downhole electro is important ... CSA has lots of blind deposits that were found over time.

The other advantage is that Glencore can also provide project finance contacts.

They have also just brought on a new director whose expertise is bringing mining projects on-line.

So, on that basis, I've had a crack. DYOR, IMO ...

[springhill]

HERA PROJECT APPROVAL


YTC announce that it has today received Project Approval for the Hera Gold Project from the NSW Department of Planning and Infrastructure (DP&I) under Part 3A of the NSW Environmental Planning & Assessment Act.
The Approval provides conditions for the construction and establishment of an underground mine and surface processing operations consistent with the Company’s objectives under the Hera Definitive Feasibility Study.
As advised to the market on 26th July 2012, final Approval conditions are within the Company’s expectations and no adjustment to the DFS capital expenditure is anticipated.

The Hera Project will deliver a financially and technically robust underground mine and processing plant producing gold and silver doré bars and a bulk-lead-zinc concentrate for sale.

Key metrics of the Hera Project, as per the DFS, include:
 High margin, low-cost gold production at A$395/ounce (after base metal credits)
 Ore Reserve of 423,471 Au Eq. ounces at average grade of 7.0g/t Au Eq.
 7.3 year mine life producing 391Koz Au Equivalent
 Gross revenue of $510 million, and a pre-tax operating profit of $94.8m (based on A$1,450/oz gold).
 Gross revenue of $572 million, and a pre-tax operating profit of $152m (based on A$1,750/oz gold).
 Gold recovery of 94%
 Pre-Production Capital Cost of $73.5m

In addition the Company is close to finalising all key development contracts including;
 Underground mining contract
 EPC Process Plant Contract, and
 Camp Accommodation Contract

The Project Earthworks contract has already been let for the completion of the Stage 1 earthworks

[mr. jeff]

Perhaps not a huge operation but with those low costs and great prospects for extensions - and having enjoyed the previous gentle up move, it looks 09-08-2012 2-24-34 PM.png like YTC has some way to go.

[mr. jeff]

Perhaps not a huge operation but with those low costs and great prospects for extensions - and having enjoyed the previous gentle up move, it looks 09-08-2012 2-24-34 PM.png like YTC has some way to go.

Some way to go up that is. Good action so far.

[burglar]

Results from Hera North:

http://www.asx.com.au/asxpdf/2012081...36472zk5dd.pdf






I do not hold

[mr. jeff]

Well considering they have struck massive sulphides, nothing like the reaction for PEX. Nevertheless, promising drilling and extensions to come. Looks like they have some good ground and things are moving well. As far as the chart goes, volume is dropping away and waiting for a signal of whether the buying will continue or whether this was just a major churn. As I hold I will remain optimistic - whilst attempting to remain objective.

[mr. jeff]

Well considering they have struck massive sulphides, nothing like the reaction for PEX. Nevertheless, promising drilling and extensions to come. Looks like they have some good ground and things are moving well. As far as the chart goes, volume is dropping away and waiting for a signal of whether the buying will continue or whether this was just a major churn. As I hold I will remain optimistic - whilst attempting to remain objective.

I have stood aside until more is known about the potential extension and site plans. The trend remains intact, but looking fragile and better to take the profit off the table and look for more in the future. Again YTC has delivered.