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STM - Sunstone Metals

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Damuzzdu

Joined
25 April 2006
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All,

Stock has made a nice move today. Listed in March 07, and has not done much until past few days.

Wonder if it is do with this presentation which was done by David McSweeney (MD) (Ex GBG) of Avalon Minerals at AMEC 2007 Mining Congress on 8th June 2007.

http://www.ameccongress.com.au/docs/16a David McSweeney Avalon Minerals.pdf

Nice paper and although very early in it's life, AVI might have some interesting ground.

Couple of interesting points to me:

Very tightly held. 40M shares on issue, 20M in escrowed. 11M options with excercised dates thru to 2010.

Market capital, just $12M on a fully diluted basis (incl options), $12M not including options.

Reading the report, c32M is held by the Top 20, directors etc, so about 8M is the real free float.

Cash at end of March 07 $3.478M – that is worth 0.08c alone. (on an undiluted basis)

The bit on p19. They have ground near Findlay Hill and Horse Spring Range – gossans up 34% Zn equ.

Need to run some more DD on this, but the areas they are targeting looks promising from an historical base.

Cheers
Muzz
 
Looks like this share is finally getting somewhere....

MEDIA RELEASE 30 May 2008

AVALON DELIVERS MAIDEN 26.6MT COPPER
RESOURCE AT VISCARIA PROJECT, SWEDEN

• Maiden Inferred Mineral Resource estimate to JORC-Code reporting standards of 26.6Mt
comprising:
o ‘B’ zone Inferred Mineral Resource of 24.1Mt @ 0.8% Cu for 182,000t of contained copper
o ‘D’ zone Inferred Mineral Resource of 2.5Mt @ 1.6% Cu for 40,000t of contained copper
• Excellent potential for further resource upgrades including modelling and initial estimates for the
‘A’ zone expected to be completed in August 2008.

• Unmined intersections within the ‘A’ zone include 5m @ 3.3% Cu, 13.8m @ 2.2% Cu and 15.9m @
2.5% Cu.

• Size and continuity of copper resources significantly larger than anticipated.

• Excellent infrastructure including existing rail connection, hydro-generated grid electrical power and proximity to the nearby town of Kiruna.


Australian-based international exploration company Avalon Minerals Ltd (ASX: AVI) has taken a major step forward in its ambitions to establish a significant copper production business in the Nordic region after today (Friday) announcing a maiden Mineral Resource estimate to JORC code reporting standards of 26.6 million tonne for its Viscaria Copper Project, located in the Norrbotten area of Northern Sweden, approximately 1,200km north of Stockholm.

The Mineral Resource estimate comprises an Inferred Resource of 24.1 million tonnes grading 0.8% Cu from the ‘B’ zone and an Inferred Resource of 2.5 million tonnes grading 1.6% Cu from the ‘D’ zone for a combined 222,000 tonnes of contained copper. The resource estimate was carried out by the Company’s geological consultants, CSA Australia Pty Ltd (CSA) in accordance with current JORC-Code Reporting Standards.
 
Another upgrade announced:


With a very interesting statement further down:

 
They haven't seemed to have taken this forward terribly much in the 2 years since the last post. Taking hints from Wayne McCrae perhaps.

Looks quite undervalued on the surface of it from a cursory look at its resources to MC.

Worth watching.
 
AVI released a positive PFS today and stated that they will have further upgrades to the already big resource on the way as they continue to drill through November.

Definitely looking undervalued if you consider the resource it currently has, little alone what they potentially will prove up with further drilling.
 
Hartleys have a speculative buy on AVI as of today.

Their valuation is at 58c, with current share price at 21c.

Given the recent attention a few stocks have recieved after similar reports, it will be one to watch tomorrow.
 
I have been following AVI for a while now as a big fan of David McSweeney and his ability to get a world class project.. AVI has been very quiet for a while trading around 22c even after Hartleys put a target of 58c back in 2010... It now looks like AVI is getting some attention of the directors and also the market.. Recent cap raising to finance finalising the bankable feasibility study.. resource upgrades and directors buying, new drilling program..

Last month volume has been slowly increasing and last few days has peaked and price looks to have definetly broken out.. (shares are drying up fast at the moment too)..

It looks like directors may be giving this project some serious attention now and it could be getting ready for a real run..

Current market cap $44m (seems pretty cheap for JORC reportable more than 66.2 million tonnes of both VMS and Skarn-type mineralisation for 601,000 tonnes of contained copper and 2.4 million tonnes of contained iron.)

Drilling program to increase the resource was announced in October 2010. (no results yet so wouldnt be surprised to see this in the next week or two with current increase in buying activity)...

Will start buying today with hope of this turning into an AKM style project for these guys.. Next announcement the result drill results, then the bankable feasibility study, then a major partner taking a large stake..

Looking at the shareholdings from what I can make out its pretty tightly held which should be benneficial also...

From the projects I have seen David McSweeney in they have been serious resources and I dont expect much difference on this.. aside from this is next to existing infastructure and transport and as such should get off the ground much quicker than the Gindalbie GBG or Aspire AKM ...
 
Just had a quick look and it appears that the underwriter for the last cap raising has now sold some of his stock, which may have been allotted to him during the raising ( a Malay holder, Tan Sri Abu Sahid Bin Mohamed)

Reducing his stake from 19.9% to 17.3 %.

Don't know whether this is a good thing, but suggests that the cap raising was under-subscribed. Current action is enthusiastic, big volumes as you say adobee.

No drilling news at all which is quite interesting. At least now that they have cash, and drilling results pending with strong price action, you could interpret what some of the market knows with a little use of the force.
 
I dont think thats a major concern.. he put up a lot of cash and I am sure has other interests as well.. the fact he has underwritten the placement he must have confidence it doesnt mean he wanted to take out the lot..

A few of the directors have been buying for a long time and also moving shares into super which I hope is so they can take advantage of super tax savings on huge gains..

I have bought 200k shares today.. if it goes below 25c I will buy more else I will sit on the fence until some more news comes out...

If any chartists can give an interpretation of the chart that would be really fantastic..
 
Quarterly update -
3 drill rigs currently on site (since Nov)
Environmental Impact Study due for court approval March 2011
Mining lease application due early 2011
Drill results due by June 2011
Bankable Feasibility Study due Sept 2011
Further exploration in Gordon Kitchener start March 2011 (Rock chips 7% Boulder samples 12% copper & zinc)
Information on Iron Ore targets June 2011
Update on use of current infastructure and transport

Avalon's flagship asset is the Viscaria Copper-Magnetite Project, located 1,200km north of Stockholm, where the Company has delineated a global resource of 66.2 million
tonnes of mineralisation, containing 601,000 tonnes of copper and 2.4 million tonnes of
iron. A Bankable Feasibility Study is currently underway at Viscaria targeting ore
delivery in the first quarter of 2013.


Looks like alot will be happening 2011...

Market cap seems good in comparison to other copper & zinc plays in Aus whom arent even close to this sort of developement or stage in their projects; even if Sweeden is cold and snowy, delivery in 2013 is a very close target too..
 
Current Copper Rally should hopefully get people looking around at who has a major copper resource and is going to be able to actually get it out of the ground to sales in the near term.. Currently round $10,000 / T
 
Heard Fosters Stockbrocking has started coverage on AVI .. Will try to get the report or if anyone has it please post ..

AVI is the cheapest ASX copper stock within our ASX listed copper universe on an US$ EV/lb resource basis.
 
Fosters Stockbrocking Initial Coverage on AVI:

Avalon Minerals Limited (AVI.ASX)

• Market cap $50m and cash $11m
• Recently raised $10.4m through a placement/rights issue to fund the BFS on the flagship Viscaria Cu-Fe Project in Northern Sweden, which currently has a resource of 66Mt at 0.9% Cu for >600ktpa contained copper across three primary zones.
• Viscaria is well located with respect to infrastructure and LKAB has a large 20Mtpa Fe concentrate operation nearby.
• Met test results have indicated that copper concentrate and magnetite concentrate can be expected to be produced from Viscaria with Cu recovery of 90% with concentrate grade of 25% and magnetite grade of 69.5% Fe with low impurities. The magnetite will be recovered and processed from the flotation tailings and is expected to be sold at mine gate to LKAB.
• A PFS has previously been completed highlighting a 'development case' of a 3Mtpa open pit operation for 10 years assuming additional discoveries are made this year. That would result in forecast production of ~19ktpa Cu and ~750ktpa of Fe concentrate.
• Forecast C1 cash costs are US$0.61/lb, capex is estimated at ~US$160m and the NPV based on the ‘development case’ is US$126m, which compares favourably to the current market cap of <$50m.
• Results of the BFS are expected late 2011 prior to financing and development in 2012. Production will begin in early 2013.
• Drilling results are expected to be ongoing throughout 2011 from the three zones at Viscaria where the company is targeting an additional 30-50Mt. Regional drilling will commence later this year following a geophysical program.
• Experienced management and Board with David McSweeney (ex MD and founder of GBG, current Chairman of AKM), Andrew Munckton (ex GBG) and Stephen Stone (MD of AZM).
• AVI is the cheapest ASX listed copper stock within our ASX listed copper universe on an US$ EV/lb resource basis.

View attachment Graph.pdf
 
Copper price still cracking, surprised nobody has really taken notice of AVI yet.. I think it is just a matter of time.. As with GBG, AKM and Mongolia McSweeney was well ahead of the pack in getting to the front of the line to take out best possible land holdings in a new province.. I think it will be the same deal with AVI.. Sit and hold and wait ..
 
Gidday all , a question if anyone has done further research.
On the company website there is mention of the rediversion or relocation of a railway line that the company says it is working closely with the authorities on.
Has anyone seen anymore information regarding what is involved with this?
I don't hold stock but may soon.
 
Looking to enter. Do you think it will retrace due to CR. Thank you for suggestions, (I only just bumped into AVI, didn't have time to research well)
 
shanti said:
Looking to enter. Do you think it will retrace due to CR. Thank you for suggestions, (I only just bumped into AVI, didn't have time to research well)
Click to expand...

couldnt tell you .. the holders I know are applying for more than their entitlement and have no intention to sell at current levels however I would expect there will be a few people who have to sell a few to take up the offer ... My gut feeling is that it wont and that there will be some good news out not long after to pump it up further here in .. Alot of the guys I know who have made big money out of AKM (McSweeneys other project) have taken profits and moved them into AVI for the long term.. I am hoping that Hartleys will also come out with new coverage / upgrade to their coverage target of 58c shortly ..
 
Thank you Adobee, got in first thing and am happy to.
And really appreciate you mentioned AVI on SEA thread.
(Hold SEA, EKA, AUT, SDL and more)
 
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