N1 or NI = Good News for AllanaDash you are correct....it is the same thing...NI 101 or N1 101. Which ever way you say it is is coming soon lol...3 short months from now and AAA will prove it has the goods and will be at a much higher level....hole #7 results are a deal maker and complete a 3 kilometer box !! If hole #8 is positive it also completes a 3 kilometer triangle for estimating the measued and indicated resource....
Wonder why Allana's share price continues to move up? The answer may be in the calculation below and the anticipation for results from holes #7 and #8.....
There is still along way to go for AAA to match the analysts targets. In my prelim calculation from the actual results from holes #1 thru # 6 I have calculated 235 million tons in the measured and indicated, and if we use results from hole #3 as a reference for holes #7 thru #12 I project another 233 million tons in the measured and indicated categories.
That will =
468 million tons in the Measured and Indicated Categories and over 400 million tons in the Inferred Category.
Over 800 million tons when all is said and done. Dundee appears to be close to the mark in their projection below. I guess in 3 months we will all know just how big this animal is....an elephant in the desert?
Farhad was correct, we do not need Sainik land or resource....we will have enough of our own to mine!!!
At a conservative 18%KCL from the 468 million tons we get over
80 million tons of KCL from the projected Measured and Indicated. Dundee assumed 40 million tons of KCL.
If you apply the K + S Germany purchase of Potash One you get 80 million tons x $3.25 per ton "in the ground" measured and indicated = $260 million dollars / 150 million shares AAA =
$1.73 per share just for our resource...
If you refer to page 5 and 6 of the Sept 9th Dundee Report you will see that their Model assumes:
(page 5) 40 million tons of KCL with a 40 year mine life (1 million tons per year) =NAV of
$1.56 per share..
(page 6) 80 million tons of KCL with a 40 year mine life (2 million tons per year) =NAV of
$4.98 per share..
Dundee Rating & Recommendation - BUY
We are confident in Allana's prospects and management team and believe that we have been rather conservative in our valuation assumptions so far. The resource has the potential to be proved up tenfold from the current 105 million tonnes and could possibly support a 2 million tonne/year operation for over 50 years.