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EXT - Excite Technology Services

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ASX ann today
EXT 3:40 PM TTR ann: Resource Upgrade At NOA2 Gold Mine
http://www.asx.com.au/asx/statistics/showAnnouncementPDF.do?idsID=00694842

EXT management granted themselves 100 million shares for keeping this gold mine for 12 months only to be divested!!!!!!!!!!!

RESOURCE UPGRADE AT NOA2 GOLDMINE
Tectonic Resources NL (ASX: TTR) and its joint venture partner, Extract Resources Ltd (ASX: EXT), are pleased to announce the results of a recently completed JORC resource inventory following the suspension of mining activities at the NOA2 mine within the Burnakura JV (TTR 50% & EXT 50%).

The revised resource of 403,000t @ 6.9g/t Au for 90,000 Ounces Au, as at 1 January 2007, incorporates exploration drilling results reported in the quarter ending 30 September 2006 and new geological information gathered from within the underground workings.

The previously announced 1 July 2006 resource estimation of 351,000t @ 7.9g/t Au for 89,000 ounces was depleted by the extraction of 90,000 tonnes @ 7.8g/t for 22,000 ounces during the six month mining episode. This effectively equates to a 23,000 ounces increase in the unmined resource base as at 1 January 2007.
 
Can a gold mine with less than 100k oz au be feasible? Won't the plant and labour etc cost as much as the resource?? I thought it was more like around 1m +.
 
Tectonic & Extract have much more than the 90k oz mentioned in this release. Burnakura has six separate lodes, with a total resource base of 390k oz (Today's release is about the only site that is actively being mined - NOA2). The point of today's announcement, is that the partners have done all of the establishing of an underground mine, mined over 20,000oz gold in the past year, and the resource base has increased (rather than decreased).

When divesting, they can sell the resource base of 390k oz (with strong potential for much larger, as finds are open either in depth, or length), plus a processing plant capable of 180,000 tonnes throughput per year, plus a 90 man campsite. Then, if they decide to, they can also sell the Tuckabianna resource (at some distance from Burnakura, but also shared with Tectonic) which has 237k oz of gold. All a purchaser needs do, is hire the miners and begin work on mining (and extending the proven resources).

The main hurdle for Tectonic and Extract will be to prove that the high cash costs they incurred in extracting the gold $685 per oz most recently - are start up costs, rather than ongoing costs.
 
Burnakura can be run far more profitably that what has been seen in the first 12 months. Additional Capex on production facilities is needed to improve efficiencies with respect to work flow. Most small cap miners (particularly with underground operations) take most of the first year to reach optimal production.

$685 per oz cost is inflated in December quarter because of larger than expected amount of ore mined relative to gold produced. Profitability in current quarter will be spectacular and when final sums are done for the overall project to date it will show that Tectonic (as operator) has not done such a bad job afterall.

Word around the traps is that Burnakura may be floated rather than sold.
 
Breaking though 10 cents again. Now trading 11.5. Would be significant if it can hold here I feel. Will post a chart later.
 
Probably lots of resistance at 11. Would be almost a miracle for it to get through.
 

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i doubt it will touch 15c again like before though..
but today is a very great day for EXT..
lot big buyers jump in...
hope they wont sell soon...
 
powerkoala said:
i doubt it will touch 15c again like before though..
but today is a very great day for EXT..
lot big buyers jump in...
hope they wont sell soon...
Click to expand...
I totally agree.
 
powerkoala said:
i doubt it will touch 15c again like before though..
Click to expand...


Yes, but there is the consolidation coming up. What effect will that have when ten 0.10 shares become one $1 share? I'll be looking on with interest. How are other holders thinking of voting?

Still holding myself ...... in anticipation!
 
What will the combined market cap be once KAL and EXT are consildated. I'll keep an eye on these. I would expect initially there to be a drop..who knows..thats my guess though..in the end the consolidation is needed. Then they will just raise more money. Just watch.
 
Gurgler said:
Yes, but there is the consolidation coming up. What effect will that have when ten 0.10 shares become one $1 share? I'll be looking on with interest. How are other holders thinking of voting?

Still holding myself ...... in anticipation!
Click to expand...

Whilst people may say their are to many shares on the market, the fact of the matter is a million shares at 10 cents are is still the same market cap as 100,000 shares at a dollar. Even with consolidation, i would still be wary of the stock until they put the runs on the board. Having said that, i have a substantial holding and am quietly confidant about the coming 12 months.
 
this co has a mkt cap of over 100 million dollars without even a smidgeon of a resource

be careful - husab is a deep low grade moderate tonnage u resource
 
kennas said:
Probably lots of resistance at 11. Would be almost a miracle for it to get through.
Click to expand...

Miracle underway kennas et al......

To others.....(in particular Halba posted at 8:43)
The last few negatives posted on EXT are completely baseless and unfounded.

Firstly as for the consolidation...this will ensure EXT is undervalued and have minimal free floating shares to day trade (DYOR...this is fact acknowledged by analysts far better than us).

Secondly resources....(you must be kidding Halba! a throw away line if ever I have read one...If you truly believe that then Rossing (rio), PDN, BMN, DYL and Valencia (forsyth) are all about to go broke)

EXT has resources so significant you need to diligently spend the time to research and understand what they actually have. No resource???? (to the poster who said as much..Halba) you have no idea what you are talking about and I openly challenge you to substantiate your claim. Word of warning....I have done my research on ext leases, grades, location, history and resource potential (all based on publicised fact) and you have a formidable opponent...bragging No...I just know this particular subject intimately.

Knock yourself out....I wait in anticipation of your well educated and well thought out response.
 
hmmm..talking it up a bit I think. Did you do your research on other Namibian explorers? You should of got into some of the others. I was in Extract but took my profits and ran at 8.7 cents. Put it into other Namibian explorers with less shares on issue and just as much or more potential than what Extract have. most of the day traders IMO will want out before the consolidation. Thats just what I think.

Overall I think you will make money on these I just think the management team have taken too long to act. They continued to raise more money..diluting your share base..now they will consolidate and dilute your share holdings again when they raise more money. I'm waiting for the right time to jump in. I think all long term holders will be rewarded eventually..but I also think a guy jumping in 1 week after the consolidation will get rewarded just as much as you guys will. So its all about timing for me. But hey..I think you will be on a winner and will get some good returns for your long term support in the share.
 

Chris I wasn't talking EXT up, my comment relates to the resource in the main and the incorrect statement that ext have nothing, clearly unfounded....and yes I did compare with all others in the location.....I am not disputing the balance of your comment.

I wait patiently for the resondents substantiation of his lack of resource claim.
 
points to consider:

*996 million shares on issue and confusing share structure

*Referred to the anomalies for the Ida dome licenses-look patchy at best when compared to the bigger anomalies at goanikontes/rossing

*Referred to the main intersections, most of which 100-200ppm @ ida central, which occur over 200-250m deep. The economics are far less than the peers. Needs to prove up at surface mineralisation over an extensive strike length

*Company mngmt - look a bit slow and need to be more aggressive

*in short lacks the WOW factor necessary for people like me and chris to be in


This post summarises it all re: EXT:

"I'm afraid to say that EXT is going too slow. By the time they pull their finger out the "uranium boom" period will be over and many holders will be holding worthless shares imo.

When do u think EXT will start mining the stuff???? Takes them forever to drill a few holes....

do u honestly think they can turn the company into a mining one???

I really dont think so."
 
So, with all that research done, what's their likely inferred, indicated and measured JORC resource?
 

*996 million shares on issue and confusing share structure - soon to be 167m shares on issue with most held tightly in the top 20 listing. Leaving only 57m to play around with. Confusing share structure? I assume is reference to PMc owning both EXT and KAH shares? fox in with the chickens or just plain smart? Time will tell.

*Referred to the anomalies for the Ida dome licenses-look patchy at best when compared to the bigger anomalies at goanikontes/rossing - Ida east, south and central anomolies and drilling have proven the resource potential of this location. Historic (Anglo) drilling in the Ida south zone (EPL3439 adjoing the DYL leases) also confirms resource grade and potential. Rossing has a grade of 330ppm...EXT to date have recorded an average of 700ppm. Goankanites of BMN I have no argument are better than ext (atm) however....as indicated by EXT "Ground radiometric surveying was carried out over the Goanikontes East locality during the quarter. A significant target for primary alaskite hosted uranium has been identified in the Hildenhof Zone. Moderate to strong surface anomalism is evident over approximately 2 kilometres of strike, with the possibility of extensions under cover to the east." EXT report 20/10/2006

*Referred to the main intersections, most of which 100-200ppm @ ida central, which occur over 200-250m deep. The economics are far less than the peers. Needs to prove up at surface mineralisation over an extensive strike length - rossing south zone will prove this as will Husab which is an extension of surface mineralisation from rossing south. Rossing has a grade of 330ppm...ext to date have recorded an average of 700ppm. your reference to 100-200ppm was only from the last 2 drill holes...you missed quite a few. Also this zone is being 'masked' as has also been recorded. If you believe their is no U here then DYL and valencia are in big trouble as we are talking of extended strike zones btween these locations.

*Company mngmt - look a bit slow and need to be more aggressive (no argument)

*in short lacks the WOW factor necessary for people like me and chris to be in (your subjective viewpoint of which you are entitled to.)

When will they go to mining? I have no idea and won't even try to guess.

Kennas EXT are on record of targetting a resource +35m pounds of U at at average grade of 400ppm...to date grades are averaging 700ppm from all drill results (excluding the ida sth zone epl3439, the old Anglo lease). They have recorded 2.7kg/t (2700ppm) and one drill result of higher again which is not included in the 700ppm average calc). "Husab - Strategic Objective Targeting +40mt @ 0.4kg/t= + 35m lbs U3O8= + $2.0b metal value" At this point no jorc compliant statement in place to confirm inferred or otherwise.

My point gentlemen is simply to state they EXT have nothing in the way of an economical resource is quite simply misleading and false. EXT main leases are encapsulated within Rossing, Valencia, BMN, DYL, PDN leases and you don't believe this is a large U zone?

EXT is going to be far more than just IDA...watch for further updates on the RAB drilling of rossing south zone and HUSAB, which has commenced and lets not forget the Goankanite location Hildenhof, EXT haven't.

All readily available for all to read.
 

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