China Armco Metals Inc. (CNAM)

[bradford86]

I just sent them an email, but feel free to call during normal hours...

Why don't you contact them, ask, and let us know what you figure out... by all means, just because we have some big players does not mean that it's not worth pointing out things like this.

If you need my assistance to get answers to your questions, let me know.

http://www.armcometals.com/contact/


Armco Contact Locations

Armco Metals - U.S. Office
One Waters Park Drive
Suite 98
San Mateo, CA 94403

Tel: [phone]
Fax: [phone]

[e-mail]


Armco Metals - China Office
A, Jincheng International Plaza
66 Jing San Road, Suite 1706
Zhengzhou, China 450008

Tel: [phone]
Fax: [phone]

[e-mail]

http://www.armcometals.com/ir/contacts.php

Investor Relations Contacts
Corporate
Armco Metals
China Resources Building, Room 1407
26 Harbour Road
Wanchai, Hong Kong

Tel: [phone]
Fax: [phone]
[e-mail]


Investor Relations
Richard Galterio
431 Fairfield Dr., Suite 200
Deerfield Beach, FL 33441

Tel [phone] Ext 316
Toll Free 1.877.680.7333
Fax [phone]
[e-mail]

--------------------------

Email I sent: [e-mail]; [e-mail]

If you could answer these, I'd be glad to pass the response around to interested parties;

Some excellent questions and astute observations made by poster "wristshot" on the CGS board post #45573. After reading them I, too, would greatly appreciate hearing how those steeped in this company would respond to his concerns. At any event, since it's such a thoughtful post I thought it would be valuable to have on this board as well. Again, this is a post by wristshot that he posted on the CGS board:

"CNAM - I am not invested in CNAM in anyway but am looking to buy this stock shortly. However, I'm conducting DD on CNAM and am looking over the Apollo transaction. I'm not a mining expert but have had some experience with resource stocks, but not in iron. I have a few questions for anyone that has done the DD on Apollo transaction.

"The CNAM PR regarding this transaction states:

"Additionally, Apollo has agreed to give China Armco the off-take rights to no less than 15% of the iron ore production from its Mount Oscar Project. Based on Apollo’s estimated 800 million metric tons of iron ore reserves, the Mount Oscar Project could potentially provide China Armco with approximately 1 million metric tons of iron ore per year after refining which has the potential to generate revenue for China Armco in excess of U.S. $135 million annually at today's market prices."

I'm looking at an Apoolo PR with the following statement:

The Apollo PR is located at

http://www.asx.com.au/asx/research/companyInfo.do?by=asxCode&asxCode=AON

The actual pdf link is (you must click accept before proceeding to PDF):

http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01070399

The Apollo PR states:

"Apollo's 100% owned Mount Oscar project is located close to existing infrastructure and large iron ore projects in the Pilbara region of Western Australia and currently has an exploration target of 350Mt-650Mt at 30-37%Fe {Footnote 1}.

{Footnote 1}
"The estimate of exploration target sizes mentioned in this release should not be misunderstood or misconstrued as estimates of Mineral Resources. The estimates of exploration target sizes are conceptual in nature and there has been insufficient results received from drilling completed to date to estimate a Mineral Resource compliant with the JORC Code (2004) guidelines. Furthermore, it is uncertain if further exploration will result in the determination of a Mineral Resource.



"My questions are:

"1. First, it seems as though a resource estimate for the Iron has not been determined but the estimate is more in the form of an exploration target. I assume the JORC Code is the same as what we use here for estimating resources? We call it the NI 43-101.

"2. First thought here is that paying $3.6 Million for a potentially large iron ore reserve is well worth the risk. However, it seems that there is still a long ways to go in terms of drilling this target and estimating a resource. Based on what the Apollo PR says, they seem to feel confident CNAM will invest more in the future to fund exploration. Does this mean that CNAM will also fund a prefeasibility/scoping study, and metallurgy, along with development of a mine? This can get fairly expensive and my understanding is that to develop a mine you need a fairly large financial backer and they seem to think CNAM will provide this. I don't understand the financing or development of mining iron as I do for gold so any insights on the cost/issues for mining iron here would be appreciated.

"3. Given that it's still in the exploration stage it seems like the off-take is years away if significant development is necessary to extract the iron. Again looking for the timeline on this deal if anyone has insights.

"My main concern is here is CNAM's ongoing funding of Apollo's exploration activities that may or may not lead to the eventual off-take due to development costs or insufficient resource estimate to conduct a prefeasibility study. Someone from this board did do an initial estimates on earnings and hinted that the projections did not include the potential revenue from the Apollo off-take. However, given the early stages of the development of this resource the off-take could be many years away, assuming iron ore mining takes some time to develop. The revenues associated with Apollo transaction may not have any place in CNAM projections for many years.

"Any insight would be appreciated from those that have done their DD on this transaction."

Do Not Lose,

Glen Bradford
CEO ARM Holdings LLC
VP China Growth Partners
www.glenbradford.com
www.armholdingsllc.com
www.chinagrowthpartners.com



None of the above is intended as investment advice. I can't guarantee the information I gathered is from an accurate source. I may buy or sell any stock or security without prior notice.
Disclaimer: http://www.glenbradford.com/disclaimer.php