Small Caps Monitor:

This article comes with the kind permission of Australasian Investment Review – (AIR) You can subscribe for their free newsletter at www.aireview.com.au

CZR Looks Set To Diversify
October 31st. 2007 - Australasian Investment Review – (AIR)

Coziron Resources (CZR), a Western Australian – based company, looks set to diversify its base metal exploration activities, after signing an agreement to acquire a 60,000 litres per day ethanol plant in Malaysia.

The news sent the shares up 5 cents or 31% to a high of 21 cents during intraday trading. They then eased down to close at 17 cents, a 6% increase on previous day’s close.

“The directors believe that the acquisition of this renewable fuel plant will contribute a significant revenue stream to Coziron by the first half of the 2009 financial year and will add significant value to all shareholders,” the company said.

Under the terms of agreement, Coziron will pay A$45 million for all the issued capital of Empee, via the issue of 225 million Coziron shares, at a deemed price of 20 cents each, to the vendors or their nominees.
Empee is the registered holder and beneficial owner of all the issued capital of Empee Sugar & Allied Industries which is the owner of 60,000 litres per day ethanol plant to be constructed in Malaysia.

The land on which the plant will be built has been secured and a company has been commissioned to design, engineer and manufacture the plant.

It is expected to be shipped to the site in Malaysia in March 2008.

Coziron says it will continue its geological assessment of its tenements in Indonesia.

At the end of the September quarter, the company had a cash balance of $982,000 after reporting a quarterly operating cash outflow of $573,000.

Territory Finds More Ore

Territory Resources (TTY) rose by as much as 24% today after the Australian resource company said it had discovered further high grade iron ore at its Frances Creek project in the Northern Territory.

Territory changed hands in high volumes, with 5 million shares changing hands, five times its average daily volume.

The company said it had achieved outstanding drilling and assay results at the Jasmine Central and Helen 11 project areas at Frances Creek, where it has undertaken about 3,000 metres of drilling at priority iron ore targets.

“These results confirm the continuing high grade iron ore potential of our Northern Territory tenements, and we are now working toward a redefinition of our resource base during the next quarter,” said Territory Operations Director, Bruce McFadzean.

“As part of our drive for exploration excellence we are continuing to aggressively explore our near mine targets to extend known ore bodies and our northern tenements for new ore discoveries.”
Territory said that result from 14 holes drilled at Jasmine Central confirm significant iron mineralisation over about a 200m strike extent, and to a vertical depth of about 50m below the pit floor.

At its Helene 11 deposit Territory has also drill defined mineralisation over a 100m strike length.

Drilling is continuing with a resource estimate anticipated by the end of next quarter for both project areas.

Through continued significant exploration, Territory is aiming to double the current five year mine life at Frances Creek.

Territory rose by 18.5 cents to close up at $1.34.

JHX Under US Housing Market Pressure

James Hardie Industries (JHX) joined a string of high-profile companies afflicted by the US housing crisis, after it said it plans to suspend production at its US plant in response to the current US housing market conditions.

Shares in the building materials company fell by as much as 27 cents, or 4% to close at $6.47. More than 6.8 million shares had changed hands, double its daily average.

The factory was acquired in December 2001 when James Hardie purchased the operating assets of its former US competitor, Cemplank Inc., to meet growing demand for fibre cement in key regions in which it did not have local manufacturing capacity.

James Hardie’s CEO, Louis Gries, said: “Although we have continued to partly offset the impact of the US housing downturn by concentrating on market penetration against alternative materials, the further deterioration in market conditions led to today’s decision.

“We successfully reset the US business in late 2006-early 2007 in anticipation of reduced demand and, consistent with this reset, we continue to focus on cost efficiencies and balancing our production with market demand,” said Mr Gries.
The company said production has been suspended at this plant because it is the least cost-efficient of the company’s ten manufacturing plants in the US, which have a total annual production capacity of 3.4 billion square feet.

In its FY07 Annual Report, Mr Gries commented on the difficult market conditions:

“Our market development efforts have become more difficult in a declining market as builders have been resetting their business models and have been intensely focussed on cutting costs.

“Since our products are generally more expensive than those that we compete against, this does not play to our advantage. The challenge we currently face is to refine our segmentation model to reflect current conditions.

“In this market we need to continue to work on delivering cost-efficiencies to builders currently using James Hardie® products.

“We also need to reach builders who are using vinyl siding, and who might be receptive to making a product decision that involves a cost increase that is offset by a significantly greater value increase they can market to home buyers.”

BRW Rises On Discovery

Breakaway Resources (BRW) rose by as much as 17% today after the nickel and base metal resource company said ongoing drilling at a newly discovered zone at its Scotia Nickel Project, located 65 kilometres north of Kalgoorlie in Western Australia, had returned a broad intersection of nickel sulphides.

These intersections have now confirmed nickel mineralisation within this zone over an area measuring 100 metres along strike and 100 metres down-dip with the zone remaining open both along strike and down-dip.

Territory said the results are considered to be highly significant, further upgrading the newly defined southernmost zone of nickel sulphide mineralisation on the Western Contact Trend

Breakaway is currently focusing its drilling activities within this southernmost zone, although it is planning to start follow-up drilling at two other recently announced zones located between 200 to 500 metres further to the north

Last Friday, Breakaway also announced that it had intersected nickel sulphide mineralisation at its recently discovered Saints Western Contact Trend, also located at the Scotia Nickel Project.

The company had previously assigned a high priority exploration focus to this area, so the discovery led support to this.
Breakaway’s Managing Director, Mr Peter Buck, said this new intersection represented the first wide intercept to be returned from the current drilling at Saints and highlighted the potential for the newly discovered zones to continue to expand with ongoing drilling.

“We are very encouraged by this excellent result, which has further upgraded the Western Contact Trend as our priority exploration focus at Saints,” Mr Buck said.

“Nickel mineralisation intersected at Saints on the Western and Eastern Contacts extends over a strike extent of 2 kilometres, making this project a highly attractive exploration opportunity for the Company,” he added.

Breakaway also holds a 30% net profit royalty interest in the Eloise Copper Mine in Northern Queensland, which generated approximately 15.5 million in royalty earnings in 2005/06.

“With a strong cash position in excess of $16 million and a continuing cash flow from the Eloise royalty, Breakaway is well placed to realise its vision of targeting the next generation of major base metal discoveries in Australia.”

Almost 1.7 million Breakaway shares changed hands today, more than six times its average daily volume.

The stock rose by 6 cents to close the day at 60 cents.

Copyright Australasian Investment Review.
AIR publishes a weekly magazine. Subscriptions are free at www.aireview.com.au




	
banksy graffiti · barack obama · banksy art

macbook parts · macbook reviews · cheap macbook

fairey obey giant · peter max art