Potential Multibagger, page-37

Hi @Timb89

i'm a pretty speculative type of investor who is drawn to explorers. I currently view my investment style as being a bit of an explorer/prospector but rather than being a geologist (i'm not) looking for deposits in the field, I'm looking for the work of geologists leading to deposits in the field.

I committed to KTA because I really liked what I understood of the potential of their geology, here at Mt Clere and also the portfolio they've built up in the Lachlan Fold Belt in NSW. At the time I was looking at rare earths and also copper explorers. Renewable energy themed stuff - KTA ticked both boxes. Frankly I went too hard too early which is a regular problem for me ie forecasting a future but not the time taken to get there. I could also have managed my position a lot better. A look at our long term chart shows how risky it is holding explorers yet to make a decent discovery - up and down with the drill bit.

On Mt Clere, i liked the data from historic sampling, which I confirmed by reading back through the mining department records. Although I was looking at it for the rare earths anomalies, I've been invested in heavy mineral sands in the last decade and this data had close affinities and it showed good, even exceptional grades. It did display significant thorium and uranium anomalies, which are problematic in sand deposits but they are also an indicator of monazite and zircon sources and the prospective area we hold is huge. I formed an early opinion that at the least Mt Clere had a good chance to demonstrate good resources of heavy mineral sands and monazite and that, if we are lucky, it might have economic rare earths content. (rare earths - proven, economic - not yet)

In NSW I initially was attracted to their Belgravia prospect, which picks up ground adjacent to GCR's Copper Hill porphyry deposit that includes part of the geology that hosts their deposit. I figure that whilst essentially undrilled, Belgravia could be viewed as brownfields and it has half a dozen very interesting targets. Since then they've acquired the Rand project which I'm pretty keen on. It might be into a REE clay discovery as well but is initially a gold/copper project. As with Mt Clere, I did a fair bit of digging into historical records for these sites to gain confidence in them. We have other projects but they interested me much less than these, although Dalgaranga has grown on me.

But it was all early stage and pretty optimistic speculation. And it's still early stage. We've got reasons for some excitement but we also have to recognise there's a lot of work to be done yet before the turkey's ready to come out of the oven and it could come out completely unpalatable.