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Real-Time news about Kiwara (London Stock Exchange): 0 recent articles
|addict: Surprised to see such a muted response in the share price on this update.Huge momentum building here IMO.DYOR|
|share_shark: Here we are folks. I am not a holder.
Recommended today. From UK.An.
020 7562 3371
Kiwara Plc* Two Potential Company Makers:
Speculative Buy at 14p
Total no of shares
12 Month Range
Colin Bird, Chairman
Tel: +44 (0)207 581 4477
AIM and JSE listed Kiwara has demonstrated during the past three months that it has two potentially company making prospects in Zambia a nickel discovery at Kawako and the Kalumbila copper project where a SAMREC (South African Mineral Resource and Mineral Valuation Committee) compliant resource estimate is likely to be delivered within two months. The company has a solid balance sheet with sufficient cash to fund most of its 2009 operations and an experienced management team well positioned to create value and incentivised via significant personal equity holdings.
Kiwara's operations in Zambia are owned via an 80% interest in a joint venture with LM Engineering Ltd, Kalumbila Minerals (Kalumbila-M). Kalumbila Minerals holds the exploration rights to a 2,842 square kilometre licence in the North West of the country covered by Ministry of Mines Prospect Licence 267. Kiwara built its interest in the joint venture through an earn-in agreement that required US$2.2 million be spent on exploration. Licence 267 and the surrounding area are historically known to contain copper, nickel, cobalt, iron ore and uranium, and although the licence is due to expire in September 2009, the Zambian Mining Act allows further renewals.
Kalumbila-M is currently focused on 3 projects within licence 267 Kawako, Kalumbila and Kawanga.
The recent nickel discovery at Kawako means that it must be regarded as the most interesting project/target. Sitting 12 kilometres North West of Kalumbila the presence of nickel had been confirmed through soil geo-chemistry and the assaying of rock chips. However, recent drilling results show long intersections of high grade nickel high close to the surface. The two drill holes assayed so far are wide apart and both mineralised, suggesting the possibility of a large deposit. An infill drilling programme is now being scheduled. While it is still early days, the potential of the site is clear, and with few new major nickel discoveries having made in recent years, Kawako has the clear potential to be a company maker.
Kalumbila is at a more advanced stage of exploration with 31 bore holes drilled by previous operator Roan Selection Trust (RST) and Kiwara having drilled 31 core holes and 20 Reverse Circulation (RC) bore holes of its own. Showing good results for copper and cobalt, the Company is currently completing a JORC compliant inferred resource estimate which we expect to be announced in March 2009 and will precede a scoping study.
Kawanga is a uranium play which Kiwara is currently re-assessing following completion of an initial drill programme as well as conducting various geological surveys. Although at an early stage, the exploration programme aims to establish a SAMREC compliant U308 mineral resource and subsequent pre-feasibility study.
Kiwara is rapidly progressing its activities at Kalumbila with an extensive drilling programme pushing for a JORC compliant resource estimate in early 2009. Kawako has received more attention given its recent exciting discoveries but is less advanced in terms of its development, while Kawanga, being the least developed prospect, remains an interesting play on Uranium. The key point is that there are strong indications that both of the two most advanced prospects will be commercially viable and both have the potential to be 'company makers'. Valuations across the junior mining sector have been depressed in recent months and Kiwara has not escaped completely unscathed, although the dramatic progress made on both of its lead prospects has limited the damage. The potential of either is not discounted in the current share price and, at 14p, our stance is speculative buy.|
|vanbrussel: Kiwara Could Be Sitting On Top Of The Next Voisey's Bay
Minesite London by Alastair Ford (September 25, 2008)
In these bleak markets there have lately been two types of share price graph much in evidence for junior miners: the difference has been whether traders have chosen to send any given company into inexorable decline or into an outright tailspin. On a first pass, Kiwara's shares look as though they've had the somewhat dubious privilege of falling into the former rather than the latter category. Certainly that was the impression over the summer. But there's been a recent and highly significant spike. What's more, if you go back the full twelve months a simple salient fact glares out at you. Kiwara is actually up on the price it first traded at following its listing in the autumn of 2007. And not only is it up, it's up by roughly 20 per cent. Now that's not bad going in this market. How many other mining companies are showing a gain of 20 per cent over the last 12 months? None spring to mind, but readers are welcome to email in with their own happy stories we could do with a few more right now.
So how has Kiwara managed to keep its head above the water? There are many ways to answer that question. The simplest answer is a near-surface intercept of 53.5 metres grading 1.07% nickel. That's a result you don't see every day. You don't see it many times in a decade. But for precisely that reason, it's worth taking a deeper look at Kiwara's makeup to see how the company got here, and in particular at the experience of the man at the top, chairman Colin Bird. Not only is Colin a seasoned mining veteran who boasts on his CV stints at Anglo American Coal and Costain and time as the mine manager at the Selebi Phikwe nickel copper mine, but he also knows a thing or two about financial markets, sitting, as he does, at the top of the tree at Lion Mining Finance. He also runs Jubilee Platinum, and as such is well-known in London and Johannesburg, and well-liked. He's also a very good promoter, so good that it takes you a long time to realise it.
Nonetheless, Kiwara shares haven't spiked because of Colin's promotional abilities. These are not markets that respond well to froth and empty rhetoric. What Kiwara really owes to Colin is his vision in putting the company on the ground in north-west Zambia, which, he says, is a region that may one day replace the established Copperbelt to the east as the key mining area in Zambia. Less than 40 kilometres away from Kiwara's properties, Equinox have already got the ball rolling at the Lumwana copper project, which is currently working through the last of a few teething issues before commissioning can be completed next year.
The northwest of Zambia has been recognised as prospective for many a year. The way Colin tells it, though, the occurrences and grades were there, but the grades were nevertheless on the lower side of attractive, and, which was more of a project killer back in the day, there was no ability to handle oxides and transitional metals. "Paradoxically", says Colin, "that's now what we want". So Kiwara staked its ground on the premise of prospectivity for base metals, and took some historic numbers on a uranium prospect on the ground as a nice little bonus to tuck away for later. At the moment there are two key mineralised zones that are taking up the bulk of Kiwara's time: the Kalumbila copper prospect, formerly drilled by Anglo on a hunt for nickel, and the Kawako nickel prospect, which was also investigated by Anglo in a campaign in the mid 1990s, the results of which are unknown.
We know the results of Kiwara's own drilling on Kawako, though we've just quoted the best of the results above. It's that intercept which really set the markets alight, in a month where good news has been thinner on the ground than the hairs on Colin's head. Not only has the company intercepted that 53 metre intercept at 1.07% nickel and let's be clear, this is a sulphide orebody we're talking about, not a pesky laterite but within that there was also just over 20 metres at 2.16% nickel. A second drill hole 870 metres away from the first showed up 5.58 metres grading 3.2 per cent nickel, and separately and slightly further down, also delivered a second intercept of just under 11 metres grading 6.73% nickel. Well.... it's early days yet, but the whisper understandably goes round London that the likes of these intercepts haven't been seen since the early exploration news was coming out of Voisey's Bay, a project that was eventually sold off in a multi-billion dollar deal. That stacks up well against Kiwara's modest £35 million market capitalisation, and is a nice chip in the game for Colin to hold onto when he comes to think about future funding.
For the immediate term, Kiwara isn't in dire straits. Cash in the bank stands at around £1.5 million, so that should be enough to keep the lights on, and the dreams alive. What Colin would really like, though, is a chunk of funding of the order of £4 million or so to get the drills really turning, though he's not fool enough to think that he'll get that on the equity markets at the moment. The likelihood is that Kiwara will look for a strategic partner to come in at a premium to the market place. Wishful thinking? Well, one or two such deals have been done in the very recent past think Kalahari, AusQuest and Goldminex, as also reported on Minesite today and Colin himself has also delivered a similar deal to Jubilee in days gone by. RAB has never been on the register, so the Philip Richards sword of Damocles won't be hanging over anyone who comes in. Indeed the Philip Richards affair might all be done and dusted by that time, given that RAB's crucial meeting is due on 29th September, and so the market may already washing out another weak link by the time Colin signs up his partner.
It will take a little while to get going on Kawako, though, as the rainy season starts in November, and while the rains didn't hold up drilling too much last year, with the money not yet in place it will be a while before we get any further inkling as to whether the next Voisey Bay is actually in the northwest of land-locked Zambia or not. So anyone in a hurry for news should rest assured that an inferred resource on the Kalumbila copper project, prepared in consultation with Snowden, is due out in February. So far, says Colin, Kalumbila has shown good grades over good widths. But looking ahead, unless Kalumbila can match the quality of results that Kiwara is hoping for from Kawako, it very much looks as though Zambia's new Copperbelt might be something of a Nickelbelt too. We shall see.
|anna faelten: Hey All, here is a GECR note on Kiwara [url=http://www.sharecrazy.com/share2607share/share.php?epic=KIW]KIW[/url] , out today. I should declare the Kiwara is a corporate client of RSH, for whom I work, but I thought this note would be of interest.
Kiwara* Kawako Drill Results a company maker? Strong buy at 23.5p.
Total no of shares
12 Month Range
Colin Bird, Chairman
Tel: 0207 581 4477
AIM and JSE listed Kiwara has today announced its initial drilling results from its Kawako prospect in Zambia which raise the very real possibility that this nickel find could be a company maker. On the basis of two boreholes one cannot draw firm conclusions or valuations but the potential is clear and the shares have already surged by more than 50% on the news. However there is still huge potential upside and on the basis of today's results we initiate our coverage with a stance of strong buy at 23.5p and will be publishing a second, more detailed, note shortly. These early results suggest that Kiwara's shares have the potential, even in the current climate, to multiply in value.
Kiwara was formed after the reverse takeover by AIM listed Wadharma Investments Plc of Kiwara Resources Ltd. The new entity reincorporated as Kiwara Plc in August 2007 and obtained a secondary listing on the JSE in April 2008. Kiwara operates in Zambia in a joint venture with LM Engineering Ltd in which it has an 80% interest. The venture known as Kalumbila Minerals owns the exploration rights to Licence 267, a 3,500 square kilometre licence in the North West of Zambia. The company's interest in the licence was obtained via an earn-in agreement with the conditions that around £2.3 million be spent on the licence predominantly via an exploratory drilling programme. The area in and around Licence 267 is known to contain copper, nickel, cobalt, iron ore and uranium, and although the company's exploration licence is due to expire in September 2009, the company's current and proposed activity comfortably meets the activity programme necessary to renew the licence.
Kiwara is currently focused on 3 projects within licence 267 Kalumbila, Kawanga and Kawako. Kalumbila has over 8 kilometres of strike along which 40 drill holes have been sunk. The highlights of the campaign to date are 224 metres at 0.59% copper and 0.04% cobalt, (including 39 metres at 1.25% copper and 0.024% cobalt), 55 metres at 1.15% copper and 46.3 metres at 1.39% copper. Understandably the company is excited by these results which have been achieved close to the surface. The next steps are to define a compliant inferred resource, before a scoping study details the project's economics.
Kawanga is a uranium prospective site which was identified in the early 1970's by Italy's AGIP. Access to the historical database is yet to be obtained, so Kiwara is re-drilling the known mineralization together with conducting a ground radio-metric survey. The highlights of the drilling program to date were 6 metres at 0.118% U308 and 1 metre at 0.87% U308. The ongoing exploration work hopes to establish a SAMREC compliant U308 mineral resource, which if obtained will lead to pre-feasibility studies being undertaken in 2009.
However it is now Kawako which is the focus of attention. The world has not seen a major nickel find for many years and as such any large discovery is bound to attract real interest. Kawako is located 12 kilometres North West of Kalumbila, and Kiwara had already established the presence of nickel through soil geo-chemistry and the assaying of rock chips. Today's announcement shows high grades of nickel with the longest intersections of 53.5 metres at 1.07% nickel, 10.87 metres at 6.73% nickel and 5.58 metres at 3.2% nickel. The 10.87 metre intersection included exceptionally highly concentrated lengths of 1.2 metres at 17.41% nickel and 0.93 metres at 15.37% nickel. The two drill holes announced today KW1 and KW1 are 870 metres apart, which when combined with their near-surface status and high grades, means that - if infill drilling confirms a continuity of strike - this prospect could well become a large open pit mine. The first two results have prompted Kiwara to instigate an accelerated drill program to further delineate and categorise the resource.
While Kalumbila was the company's leading project, today's announcement at Kawako has caused the company to re-think its strategy. Given the high nickel grades, distance between drill results and proximity to the surface, the potential for a major nickel discovery is very real. While the company is currently only sitting on about £1.5 million in cash, the nickel announcement has come at a good time as it is certain to ensure that any capital raising to accelerate exploration work is well supported. GE&CR will be writing a more detailed note on the company shortly, but even heavily discounting the potential value of Kawako to account for the modest data accumulated to date, the shares looks materially undervalued. This prospect has the potential to be a company maker and at 23.5p we rate the shares as a strong buy.
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Rivington Street Holdings|
Kiwara share price data is direct from the London Stock Exchange