ERN 0.00% 0.5¢ erongo energy limited

resource estimate for namibian u3o8, page-2

  1. 2,086 Posts.
    Chris1983....a few comments in regards to your previous post.


    "The drilling identified an apparently broadly flat undulating zone of mineralization 25 to 35m thick over an area of 800m by 250m."


    I noticed in your resource calculations that you have used the upper limit of a 35m thick zone....as always, it's probably safer to take the middle ground ie to use 30m....giving a very rough estimate of 3600T or 8.2M lb.

    The market wasn't blown away by today's announcement.....I realise it was a bad day, but the market always likes great announcements, and money will always come regardless of the prevailing conditions if news released demands being noticed.

    ERN's announcement today was good but not sensational....historical results are never that well received....one only needs to look at the depth today for confirmation of that....a few reasonably sized bidders just above 0.60 but that's all.

    Oil assets in Lousiana, whilst they are producing cash flow, are fairly insignificant really....and I don't think that comparison to BMN at this point is a good idea. BMN's resource MIGHT be lower grade, but it is shaping up to be enormous, with the strike length going on and on and on.

    All that said though, ERN probably has some life in it....taking off the rose-coloured glasses though, it has to be said that, as always, real appreciation (not unsustainable hype) will only ever come when favourable drilling results from RECENT drilling become available.

    I always become a little suspicious when a company goes into a trading halt for something like historical results, which isn't exactly trivial, but nothing huge either.

    All of the above IMO....and I do hold a small position in ERN.

    :)









 
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