In my research for my confidence in ROB I learnt some important information why I think this is going to continue its uptrend. This is research only and could all be wrong.
The area in question has had a number of previous geological assessments. This is important because as much as the company says we have to survey, sample and drill targets you don't change course as a company into this area without a idea of the area and professional confirmation. Both of which the Board acquired and has since activated its option subject to shareholder approval, which is a pretty safe bet right now in my opinion.
1. USSR Academy of Science 1926-1949
Tectonic Characteristics of the Region.
2. 1952 regional scale - 1:1,000,000
Two Coal outcropping seams in the south part of the project area with samples taken.
3. Tsagaan Gol area 1987
Collected samples of coal and analyzed.
This Third Mapping is the critical information we need to see the true value of ROB. In my opinion as investors we need to know before we buy that the company is undervalued and has the potential for growing assets. In this case the coal in the ground, management (Back the Jockey not the Horse) Capital and Rising Demand. Coal is in a uptrend with close buyers!
Here are the 4 reasons why in my honest opinion ROB is undervalued.
1. Tsagaan Gol's coal strata has been reported to be 200m wide reaching for at minimum 7-8 km from east to west with the west with sediments 90-100m thick. Just one trench had coal intervals of 10m, 8m and 20m thick. Obviously this needs to be explored further but I think eventually we will see a sound resource here in my opinion.
2. The sediment bearing coal in the Tsagaan Gol region turns north and northeast as well inside the Upper Permian sediment. Subject to folding and faults heading northwest as well. Plenty of sites to drill deep and drill fast in my opinion this is exciting it is not a one trick pony like some licenses.
3. Tsagaan Gol sediment is very diverse reaching along the Ogtorgo River and extending past a ridge and another river for 10km known to be 600-700m thick and in parts extending 1km wide. Part of this is exposed within the licenses area in one place. Another potential site of a great deal of interest in my opinion.
4. In the 1987 geological and structural mapping; many excavations and trenching intersected a large number of coal seams. These range from 10-15 thickness, 40m thickness, 4 seams 1m thickness all intersected. Offering a good insight into this Tsagaan Gol region.
So because the License is a excellent asset in my opinion the company is right to take the path its is on and has the capital and experience to develop this license just in my opinion, DYOR!
One of the best areas in Western Mongolia the coal seams are both high and low volatile bituminous coal. Volatile matter = 14.8% to 34.4% and Moisture = 1.1% to 4.7% There are many more percentages like Ash and Sulphur and Vitrinite Reflectance and Calorific Value but in lamans term this is an excellent region to acquire and the geological experts all agree. ROB using a Geologist with more years experience then I have been alive.
Also before investing I like to see the potential for more licenses because that is the real asset here. They are in due course looking at new licenses in partnership with Cunningham Peterson Sharbanee Securities Pty Ltd.
http://www.cpssecurities.com.au/
"CPS Securities specialises in capital raising for mining and junior stocks and in the 2009/10 financial year raised a total of $167 million for these companies." - Website
"From a 27 June 2010 Sunday Times survey of six prominent broking firms, CPS Securities' portfolio as of 9 February 2011 was trading at a 112.21% return on investment in just over 6 months presuming an evenly weighted portfolio across the 11 suggested stocks. It must be noted however that past performance is no guarantee of future performance and returns. For this period our portfolio significantly outperformed the market and was also well ahead of the other 5 brokers surveyed." - Straight from the Website
Everyone can look for themselves but this alone is a massive tick in my opinion.
Food for thought isn't it?
What do you think bdabing?
PS - This research is pure opinion and Google searches and should in no way be confused with professional advice. I share this mostly because I enjoy research. I know rather dull but there you have it. Everything here could be wrong but I hope everyone finds something to their liking.
PPS - DYOR!
Kind Regards
ROB Price at posting:
2.2¢ Sentiment: LT Buy Disclosure: Held