ENK recently posted news stating they have increased their reserve estimate to 590,000 tonnes of nickel, an increase of 35% over their original estimate.
The ore is shallow meaning they plan to extract it using cheap open pit methods, also they have developed a cheap technique of leaching to extract the metal.

BLT (presumably) on hearing this news have increased their stake in ENK to 8.9%.

With Nickel prices currently at approximately $15000/tonne and a market capitalisation of 39Mil surely this company is due for a sharp upward correction?

Does anyone share my opinion?

Any views on a company called Zambezi Nickle, new to the market, but it has two great mineral deposites (according to Investors Chronical)...
Mitaba Prospect:
The Mitaba Project occupies a total strike length of 11 kilometres, within which occur two main complexes of successive ultramafic (komatiite) lava flows, 3.3 kilometres apart.
Paulwi Prospect:
The pear-shaped Paulwi intrusion has been gravity-differentiated into a gabbroic upper portion of 3,000 metres depth and basal serpentinised dunite portion of 2,000 metres depth... [goes on to say] comparable to the deposit being mined at the 11 million ton per annum operation at Mt Keith, Western Australia.

European Nickel PLC

New Chairman Appointed

David Whitehead to join Board in September

LONDON: 27 July 2006 - European Nickel PLC ("ENickel" or the "Company") (ENK.L)
is pleased to report that David Whitehead, former Chief Executive, Exploration
and Development, of Billiton plc, has accepted the position of non-executive
Chairman of European Nickel PLC from the 1st September 2006. Felix Pole, the
current Chairman, and one of the founders of the Company, announced last year
his planned retirement once the Company had substantially completed the
financing of the Caldag nickel project in Turkey.

Mr Whitehead is a seasoned senior international mining executive with experience
in all phases of exploration, mine development and operational management. He
retired from BHP Billiton in 2002 having held senior exploration, operational
and business development positions in Europe and North and South America over
his distinguished 35 year career.

After qualifying in geology from the University of Dublin he had a prominent
career in mine and exploration geology in Ireland and South Africa before
joining Billition in 1976. At Billiton he held various technical and business
development roles that culminated in his appointment in 1997 as Chief Executive,
Exploration and Development, of Billiton plc, responsible for the company's
worldwide exploration and development programme. Following the merger of
Billiton and BHP in 2001 Mr Whitehead became responsible for the integration and
rationalisation of the two company's exploration, development and R&D functions
into a single focussed unit.

Following his retirement from Billtion, he held the position of non-executive
Chairman of the Kalahari Diamonds group, leading up to its sale to Petra
Diamonds, and was formerly non-executive Chairman of Latin American Copper. He
was a non-executive director of Brancote Holdings prior to its acquisition by
Meridian Gold and is currently a non-executive director on the boards of
Latitude Resources and Tertiary Minerals.

Simon Purkiss, Managing Director of ENickel, said today: "Felix Pole and I have
worked together during the entrepreneurial stage of the Company's development
and I wish to thank him on behalf of the Company for his leadership over the
last four years, and personally for his trust and friendship over the time since
we established ENickel together.

"In David we will have a Chairman who brings the benefits of his experience in
the development of large scale projects. While at Billiton David led some of the
industry changes in thinking on exploration. I look forward to his input on the
development of our exploration portfolio and working with him in bringing the
Caldag project into operation."


Note: Additional Information concerning David Whitehead

Age: 64

Current directorships:

Glebekinvara Management Services Limited
Latitude Resources plc
Kalahari Diamond Resources PLC
Tertiary Minerals Plc
Tertiary Gold Limited
Tertiary (Middle East) Limited

Previous directorships:

Billiton Canada B.V.
Billiton China B.V.
Billiton Exploration (Alaska) Inc.
Billiton Exploration (Nevada) Inc.
Billiton Exploration (Minnesota) Inc.
Billiton Exploration (USA) Inc.
Billiton Holdings B.V.
Billiton Indonesia B.V.
Billiton International Development B.V
BHP Billiton International Development Limited
Brancote Holdings Plc
Compania Minera Altiplano Ltda
Compania Minera Dona Ines de Collahuasi Ltda
Fairview Consolidated Mines. Limited
Finneth B.V.
Kalahari Diamonds Limited
Montague B.V
Petris Capital Corporation
Scallop Development Inc.
Sociedad Contractual Minera Villacollo
Sundry Holdings N.V



There is no other information that is required to be disclosed under paragraph
(g) of Schedule 2 of the AIM rules of the London Stock Exchange.


Contacts:

Simon Purkiss, MD 020 7495 5055 / 07798 836 225
European Nickel

Keith Irons 020 7367 8873 / 07885 356 639
Simon Rothschild 020 7367 8871 / 07703 167 065
Bankside Consultants

Is this the one your after C?

I too think this company has a very promising future, not only because the high price of nickel is likely to continue, but also because of the company's tie-up with BLT .... The significant institutional holdings are also encouraging.

Cynic, interesting to see that you back this one. For comparison's sake, Ridge's Sheba's Ridge project has 586,000 tonnes of nickel - of which RDG has a 61.5% interest, i.e. 360,000 tonees. Ridge is valued at only 20 mil at present. Blue sky, for my money :o)

Are you saying that Ridge is currently just blue sky?

Sorry, maybe I've misunderstood/misapplied the term.

Let me be categoric: I think that Ridge is currently being rated way below its potential and that it is a multibagger in the making. The co is getting close to production on two decent-sized projects and the realisation of these ought to see a rapid re-rating of the share price. The rationale behind investing RDG is not based on wishful thinking or jam tomorrow, but rather on solid prospects.

However, I agree with you about the time factor you mentioned yesterday.

Hope that clarifies.

I am slightly puzzled that this share has been overlooked given the continuing strength of nickel ...... I used to hold this stock, and think perhaps I should get back in.

For those who may not be aware, nickel is an important and expensive element in the production of stainless steel. In fact, it is this element that is a prime factor in the price.

Somewhere on the "metals" thread I think, Dai has kindly posted a chart of the nickel price, but I can't find it ...... However, I am pretty sure i am right in saying that from a low of $8k per ton a couple of years back, it is now at a staggering $31k (down from recent all-time high of $35k)...... physical stocks have plummeted though there is now a minute uptick ..... a recent post of Dai's reckoned the price could fall to $14k in the next 12 months or so, but my own informed sources reckon it is unlikely to fall below $17k.

The tie-up with Billiton, giving psychological and actual strength to the company, should also not be overlooked.

for the charts, go to
http://www.kitcometals.com/charts/nickel_historical.html

Update

http://www.enickel.co.uk/__data/assets/pdf_file/58719/Canaccord_Daily_Letter_250408.pdf

Nice share movement today.

I remember the good days. Makes you wonder. Are 100's of AIM companies going bust? If not then on their recovery in the future traders are going to be able to make a hell of a lot of dosh.

very surprisingly, 200 dma has yet to be hit ....

greed is a very seductive siren .... thus, it is exceedingly tempting to dabble in KAH and/or ENK or similar ..... MXP (for me) proved to be a very interesting example, in that i got in late but, on the back of the impetus (and the sheep!), i managed to make and bank a decent profit ..... had i hung on, that profit would now be pretty much if not entirely wiped out.

decisions, decisions!

durrrr, that's how you have to make money in this market!! Be a follower and trade the flyers whether they look worthless or not. Buying on fundamentals was so 2006 darling! Now back to that little fictitious business of yours and make Mummy a cuppa as well ;-)))

mummy is still alive and well (for her seriously advanced age) and living in england ... pro tem i am in dubai ..... no i have not been suck(ered) in here, and shall resist doing so, at least until there is a significant retrenchment/consolidation ..... this stock just has a nasty feeling of being currently oversubscribed by the lemmings so shall prob just stay with ORE (qv) as a miner

don't tell me you're roughing it at the Burj??

Of the numerous times hubby and I have been to Dubai I've never found the urge to sit on a bulletin board on a Sunday evening!! Either you're boring and stuck in on your own or you're not there! Get yourself off to the Buddha bar you miserable old trout!

burj has no appeal at all; am trying out Al Qasr which is actually not bad, though rather over-run with tinies at the mo due to half term ..... buddha bar has been highly recommended by a genuine local (not an expat!), so may well jump in a cab tomorrow evening and go up there ..... have expensive client and expensive dinner already schduled for tonight

Al qasr very nice place, went there when it opened a couple of years ago, nice place for the lazy as one can get a boat everywhere. Best follow some of my tips as Buddha very expensive.