NML is due its interrim results now, last year it was the 28th of this month.

They are setting up a new site to explore/research/analyse and all the equipment to do this should be on site now, and drilling should start soon, all this extra news should be covered in the interims.

does anyone have any further positive views on this company ??

I hope Endiama - being the regulator - does not now also become an agrressive competitor. The bribes alone will detract from the bottom line of any independent operators.

Also their plan to become a cutter as well concerns me - will they demand a monopoly on purchase from all operators. How will they develop the skill base needed to cut 7k carats of diamonds from nothing at a high enough standard to compete internationally? Will they end up lowering the perceived value of Angolan diamonds w/wide?

This and your previous report smack of a new social order in a recently stabilised regime effectively nationalising its main export and thereby stifling its necessary entrepreneurial skill/value development.

I always make the analogy of theatres which, seeing the nice profits made by franchisees, take over direct management of the catering function, only to make a thumping loss - it's a different business requiring different skills from producing plays.

Should government be directly managing 50%+ of its own natural resources? Discuss. You can imagine the profitability of Brownstones recovered from Downing Street Blairite, not.

SD

Dyna/dog,

Dia,I am not calling you a dog, its you and stockdog am posting to, will you be posting any photo's from the traders day on here ?

It depends what you're willing to pay, aldwickk! lol :-)

It depends on our far you are willing to go, LOL .

That was a silly question, your going as far as London.

Depends on whether he is a good doggy or a bad dog...At the moment he is a cross dog but I feel it is all good news for NML not bad. No time to post now though....got things to do!

I see the volume dipped today, and the large seller(s) are still there.

I feel some really good news is needed to breakout from the current trading range, I am waiting for them to declare they have obtained the mining permit, and the grades they are obtaining before making a decision.

Andy

Suggest you get in with half your money now before those two bits of news after which you will have missed the first rise. Then put the secon dhalf in with more confidence. You can always ditch first half
on lack of news without too much disgrace.

DYOR as ever

SD

Here is an RNS in this morning...now I read it that as they are in a position to apply for a licence they must have the necessary 5000 diamonds...Am I reading this right???

New Millennium Resources Ltd
11 April 2005




New Millennium Resources Limited
('NML' or the 'Company')

Kimberlite Licence Application

New Millennium Resources Limited (NML), the international diamond mining and
exploration company, announced today that following its successful progress to
alluvial diamond production the Company was in a position to make application
for a Kimberlite mining licence on its Rio Lapi C9 concession in Lunda Sul
Angola. The application has been made through its wholly owned subsidiary Angola
Resources Pty Ltd in JV with Endiama, the government owned diamond monopoly, and
a local partner Mombo Lda.

This application will not detract from the Companies main focus which is on
alluvial diamond production

There are a number of stages the kimberlite application must go through before a
kimberlite mining licence is granted. These steps include prospecting and
exploration. Kimberlite exploration carried out by third parties in the late
1970s and as recently as four months ago indicate that at least three
kimberlites exist on the Rio Lapi C9 concession. It should be noted that the
Company has not been given access to the results of this exploration at this
time.

New Millenniums Managing Director John Cross said;

'The Company's, Rio Lapi C9 concession is in a proven diamond rich kimberlite
area. The Rio Lapi concession abuts the Catoca Mining Society's lease and is
approximately 20km north of the Catoca mine which is one of the largest diamond
mines in the world. The Catoca mine is currently producing approximately 3
million carats per year and is due to upgrade its production to 6 million carats
during the first trimester of this year. The Catoca kimberlite has a surface
area of 63 hectares and a diameter of 900 meters and an economic life of 50
years. Unconfirmed and very early stage indications are that Kimberlites on our
concession are similarly resource rich.'

Kimberlite is the primary source of all diamonds. Known as kimberlite pipes,
alluvial diamonds are produced from the weathering and erosion process on the
kimberlite pipes. Diamonds are washed into river systems and are then referred
to as alluvial diamonds. Alluvial diamonds may be found many hundreds and
sometime thousands of kilometres from the kimberlite source. The largest and
heaviest diamonds are transported shorter distances and therefore fall closer to
the primary sources. To find alluvial diamonds and source diamond bearing
kimberlite on the same lease is unusual and if proven would yield substantial
reserves of diamonds and offer great opportunities for the Company.

It is the boards intention to carry out its own exploration and commission a
bankable feasibility study (BFS) on the kimberlite programme should initial
exploration support third party data.
Contact:

New Millennium Resources Limited

John M. Cross (Managing Director)
Tel: +61 414 375 758 Tel:

jcross@new-millennium.com.au

Shane M. Healy (Finance Director)
Tel: +61 414 809 010

shealy@new-millennium.com.au

Daniel Stewart & Company Plc

Alex Davies
Tel: +44 (0)207 374 6789

St. Swithins PR

Gary Middleton
Tel: +44 (0)795 160 3289

post from the other side;

Well, they've applied for the license, so that means they must have the necessary 5,000 carats. That's very good news, because it means there will be some revenue in the next few months.

'Furthermore, they've announced an intention to explore the kimberlites themselves. There will be sufficient cashflow to enable this. It also means that they can drive a hard bargain with any major and/or they would be able to go for it alone and become a very juicy takeover target. I also like their honesty, that the source kimberlite might be further away and not on the license. I think the subtle hint is that the source is Catoca. We don't know the size of the NML Kimberlites, but the company is hinting that they are similar to Catoca. Without further exploration, we can not verify this.

Positive RNS in my view....

Onwards and upwards....'

Bought my last lot of NML today at 4.88p, would like to hear from Andy regards the RNS and if this what he is waiting for to buy in again.

Check out Eureka mining thread 10x by christmas!

Di,

That post by anomolous is INCORRECT, they are not declaring thay have the 5000 carats!

In this RNS, They are applying for a KIMBERLITE licence, whereas the 5000 carat parcel refers to the ALLUVIAL one!

I suspect this is a prelude to a placing, we shall see.

aldwick,

Not on this RNS I'm afraid, as I have thought since last November they will do another placing, and as I said above, this MAY be a softener for it.

If I'm right, the price will dip, if I'm wrong I'll miss the first few points of any rise, but if NML really are going to some of the price targets that are mooted from time to time, there will still be an opportunity for me to make a decent albeit reduced profit, but at a reduced risk.

Stockdog,

Not a bad suggestion, and I always build into positions, but I would have to sell another stock to buy, and that would be a tough decision today to b honest.

I know I could T trade it, but the spread is too great IMHO.

Andy

The spread is outrageous! I also think the RNS is mixed, but they do seem to say that there is definitely kiberlite within their licensed area - not sure how many diamonds in it though. Anyway, being nearer to the source (probably Catoca), let's hope they dig up some bigger diamonds.

Not sure they need to raise funds for the kimberlite exploration, by the time the licence comes through from clubby old Endiama, they should be generating revenues from the alluvial mining operation.

On balance it's positive, being another prospect run from the same overhead and processing base.

However, the SP seems to have bowed its head with respect for this news.

SD

First things first; we have had no reprot back from di and sd about Traders day, their meeting and whether they found a diamond deposit. Do they still have stars, sorry diamonds, in their eyes?

I've been away playing golf plus watching the Masters so just catching up. All seems good news. But lets keep our feet on the ground. First, Shares give NML credit for putting in th4e roads and bridges infrastructure. Second, the deposits in the initial production site are proven: production will commence at 10000 carats per month and rise to 20,000 carats per month within 'the next 12 months'. US$18.2m profit for year to June 2006 (RNS 16 November). The measured resource is 235,000 carats (report by geologists on website).

Since production has already started and should be at 10000 carats per month pretty well straight away, the implication is that no additional funding will be required. Profits could well be lower as they will be ploughing money back into exploration. It seems reasonable though to value NML on a 5m pa profit. At a pe of 10 that is a cap. of 50m against the current cap. of 6m. So we are looking to an sp of 40p.

What is the downside? sd is concerned with political risk. For better or worse, Endiama appear to be both partner and licensing authority; the plus is that the government is effectively picking up 51% of the revenue. Second, Healy and team do not seem to be rated in the city; I suspect this is why the current sp is so low which actually means its an opportunity. OK, he and otehrs on the team are Australian but we know they are good at grapes, so why not diamonds. From the above, Australia is top volume producer of diamonds.

Like others I just don't have the uncommitted funds to increase the stake. SEO remains top dog, with CFP, ASC (for recovery - just starting to move), NLR and YOO. Unfortunately can't use CFDs or I would apply some of the SEO margin to increase the holding.

Eric

Eric

The big difference between grapes and diamonds is that the one are all uvial and the other are alluvial.
LOL

SD

That dog is very clever! I wouldn't call it humour but it is clever. Still doesn't say what he got up to with di however! Wasn't she nice to you? Is it because she reckoned you weren't a thoroughbred; not good enough for an Essex girl? Do you agree my evaluation projections? I think they are in line with di's figures, if not figure!

Eric

Eric
Production will not be 10000 carats straight away, but will be ramped up
over the first three months.

I concur with your PE of 10 and a market cap. of approx. 50m.

As to a placing, I'm not sure, but would suspect that the chances of this are
very high. We do not know how near to the first 5000 carat parcel NML are and
how quickly these can be realised as income.