Hi all.
@LawyerTraderThanks for the tag mate.
Yes, quite ironic that we find the interest in another stock that we share a positive view.
I held this back in Feb when they showed the cores and results of the initial discovery.
This accompanied their opinions of the importance of the Sinter.
I am not sure how many of you understand that importance and I am not sure that I can translate the points with any element of justice.
At the time of that discovery, I am thinking that being a penny stock, we will see many multiples in the SP.
This however was an anticlimax at the time bought about by the JV with Newmont.
As most of know, when a penny stock finds a major discovery, it is the stock to hold but the opposite occurs when the same event takes place with a large cap like Newmont.
What we can also see is the loss of Autonomy with the major calling all the shots.
Due to this view, I sold back then and it wasn't until @LawyerTrader tagged me that I had another look.
Hence the reason for the delayed response.
The findings of Sinter again at Black Range changes the ball park for me again.
Why?
Chris spells it out very considerately and specifically in all his announcements and it just needs a careful slow read.
Well if your as thick as I am, it can take reading it over and over again.
There are so many compelling aspects to this announcement as you can see by my underlining.
As I understand it, the previous holders of these projects had the view that the erosion that has taken place over the millions of years has resulted in the erosion of the potential prospectivity here.
From what I interpret however, is that the Sinter lies at the top of the boiling zone and indicates that the goods could remain somewhat intact below this level.
From my experience, the goods are not far below this and could suggest that a deposit is now in the shallows, which will be confirmed by drilling.
There is of course questions that arise and the main risk being, How many events have occurred and what this may mean for the current interpretation?
This pic could give a great possibility to why the Sinter could be of the greatest importance.
At this understanding and now having the similar signature 65km away, I considered taking a position again.
Checked the bank and we will be getting very close to a CR.
If there is a CR soon, the Q that arises is, "Will current holders get a chance to participate"?
Can't answer that but didn't want to miss out so I bought in and kept some dry powder.
What do I expect now?
Well, I could try and participate in any coming CR but also will have opportunity if there is and SPP.
Fingers crossed.
The train of thought I have here is-
Black Range is multiples of Bauloora yet Bauloora attracted Newmont.
Why would that alone discourage anyone else to be as interested?
It leaves LGM with control of the exploration program which is a rare event by a major.
It also provides a 30% free carry for LGM and the financing which will be supplied by Newmont and repaid from profits once production commences.
Where is the risk in that?
Now we have Black Range which could be much larger with the same compelling attractive exploration potential.
We have drilling underway at Bauloora and I would anticipate that drilling at Black Range will be soon.
I hope that spells it out without my usual optimistic rose coloured views.
So why was this project dumped by Newcrest back in 1992?
Well they had a little distraction up the road called Cadia.
This has been left untouched until our little penny stock here has done some further investigation and then attracted a $31B major.
Optimistic? Can't help myself here.
Kind regards, Wack
(20min delay)
