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Strategies & Market Trends : Winter in the Great White North -- Ignore unavailable to you. Want to Upgrade?

To: marcos who wrote (7265)	12/10/2006 4:24:47 PM
From: marcos	Read Replies (1) \| Respond to of 8273

bmc.v - in re concern that Brilliant's 25% of Lanfranchi is only a minority interest and they could get blindsided by a surprise cash call, or screwed out of it in any similar way - i think this unlikely, due to the connections bmc enjoys - The Junk brothers, who were vendors of Donegal, who remain centrally involved with operations, and who hold considerable paper in Brilliant, were the original fire behind the whole JV, and other successful Kambalda JVs before it ... here's a piece from The Age, 21.10.03 - '... David Moore is managing director of Mincor Resources, the company that led the rebirth of Kambalda when it bought two of WMC 's mothballed mines three years ago. The mines have been a runaway success but only in the past six months have Mincor shares taken off, pushing Moore's stake to about $5.5 million from $1.2 million. When Moore did the WMC deal he knew he needed local knowledge, so he turned to former WMC senior managers Ian Junk and Leigh Junk, who had years of experience in the eastern goldfields. The brothers took a 12 per cent direct stake in the mines and ran the operations before cashing out last week for about $10 million. They now hope to repeat their success with another two former WMC Kambalda projects for junior View Resources - and take a share of the profits. View's involvement in nickel has led to its share price jumping from 1¢ to 7¢ in the past six months, lifting managing director Derek Lenartowicz's stake from about $400,000 to $3 million. ' theage.com.au From the Sally Malay site - 'Lanfranchi Joint Venture The LJV captures synergies between the Kambalda operating experience of Donegal and the corporate and project development experience of Sally Malay. Donegal, through its principals Ian and Leigh Junk, has a strong history of developing and managing underground nickel projects at Kambalda. Donegal was involved in the successful bid for the Miitel and Wannaway Projects, and played roles in the successful planning, development and operation of these projects. Donegal has developed an industry reputation for its mining engineering skills and provides the LJV with hands-on operating experience and local Kambalda knowledge.' sallymalay.com.au 'Ian Junk and Leigh Junk Donegal Resources How it started ... Brothers Ian and Leigh formed Donegal Resources in 2000 after purchasing a nickel mine in Kambalda. How it grew ... Ian and Leigh employed innovative mining methods to mine a higher grade ore - increasing the average grade by 1.5 per cent. This profitable operation allowed Donegal to expand to other mining sites. How it looks today ... Donegal's market capitalisation has grown to $6 million in two and a half years and the company plans to have a net worth of $50 million by 2008. How they think ...Ian and Leigh have made an ongoing to commitment to sustainable mining from both an environmental and socio-cultural perspective. They were instrumental in reviving the Kambalda community by employing local people and using local suppliers.' 72.14.253.104 Lots more out there, i got those googling with 'ian leigh junk kambalda' ... i really don't think anybody is going to blindside these two in Kambalda, and as long as they're on board with Brilliant, i feel fairly comfortable ... current market cap of bmc is ~50m, they're already producing over 100t/mo net to their interest, and when the hedging runs out in july [there is only roughly 500t left hedged at this point, 460t for all of 2007 if memory serves], and Winner starts streaming metal right about then too, the cash flow is going to make fifty millions look pretty cheap ... in rough numbers, 200t/mo to bmc's interest at say usd20k/t after mining costs would be 4m/mo, or 8% of the 50m - per month Then there is explo upside, of which Deacon is the most recent example - there is a whole lot more to Lanfranchi than has ever been touched, and if/when the 'folded dome' theory bears out, this will be a lot bigger mine complex yet - even without it this whole side of the fold remains largely unexplored ... i don't know how much cash they have, some is being used at the moment to develop Winner of course, real rough guess about cdn4m in the kitty today .... there should be financials along fairly soon, last ones posted to sedar 29.08