You need to DYODD on the company (as always) because I have two vested interests:
1) Vena sponsors ths blog
2) I like the company and how it’s going about its development program under tough market circumstances.
But there’s no doubt it’s cheap, and there are far, far worse pennyflip possibles out there. Have a look at the PR, and if you want to investigate further here’s a link to the VEM.to website
Vena Acquires Coal Producing Property and Updates Corporate Structure
Wednesday December 17, 4:22 pm ET
The Company also would like to extend its gratitude to James Fairbairn who recently resigned from the board of directors as well as to Rod Ogilvie who recently resigned as Vice President, Engineering.
The Oyon Coal Property – The formation containing the coal seams corresponds to the Oyon formation of the lower Cretaceous age. The main structure controlling the location of the identified coal seams corresponds to an asymmetric syncline with a north-south bearing; the coal seams outcropping along its west and east flanks. A number of coal seams have been identified within the mining concession with thicknesses that vary between less than one metre and exceptionally reaching four metres, all of them hosted in dark gray slates and gray sandstones of the Oyon formation.
The Alexia and Micaela seams are the most outstanding due to their geological characteristics and their relative continuity outcropping for over 670 metres, their average thicknesses being 4.0 metres and 2.0 metres, respectively. The Alexia seam has been partially exploited but the old workings are currently collapsed due to the inadequate mining method previously used.
The results obtained from chemical analyses of channel samples taken show that ash content ranges from 6.0% to 31.5%, volatile matter content is moderate to low, ranging between 8.8% and 16.0% and fixed carbon ranges between 58.3% and 82.5%, whilst sulfur contents are all below 1%.
Historical Resource Potential – Non 43-101 Compliant
A preliminary field evaluation and review of historical production and exploration records, including mine development plans and an EIA application submitted to the Peruvian government by the previous operator performed by Vena’s consulting coal geologist, Dr. Rolando Carrascal PhD, has so far identified estimated historical coal resources in the range of 620,000 TM to 700,000 TM and a prospective additional tonnage ranging between 130,000 MT and 150,000 MT. The Company plans to conduct an exploration program based on Dr. Carrascal’s guidance leading to a NI 43-101 complaint report in 2009.
Dr. Carrascal, PhD Geo is acting as Vena’s qualified person for all coal related projects. He has not completed sufficient work to classify the historical estimate as current mineral resources, and it should be noted that Vena is not treating the historical estimate as current mineral resources and that the historical estimate should not be relied upon. The Company would like to caution readers that the potential quantity and coal quality is conceptual in nature as there has not been sufficient exploration to define a mineral resource and it is uncertain if further exploration will result in discovery of a mineral resource.