I think the ASX misinterpreted this. They answered the ASX query perfectly, and in fact, some quite interesting information in there.
I think people confused them with a NCM or EVN major drilling to JORC an already explored asset.
The market should remember we are less than 5 holes into our first pipe - this is early days.
The goal is to spend exploration money wisely and get as much value add for $ spent - the thing that will add value the quickest is additional pipes, not JORC'ing pipe 1.
This current drilling program is designed to confirm the boundaries and dimension of pipe 1, not to get a JORC.
I think all here are smart enough once we have that dimensions to work out the rough volume of the pipe and then do their own resource calculations, given the consistency of the grade.
I don't think anyone would argue against Geosun's 3Mozs minimum in pipe 1, hence why they are not drilling to define a JORC. Even my early back of the napkin calculations came in around the same figure.
With the few $M the company has to spend on drilling, I am sure all holders would prefer them to conduct further deep drilling on other pipes and targets that the 3DIP will hopefully highlight as opposed to drilling out pipe 1 to bring it to JORC standards.
If you have potentially 5+ pipes spread over 600m, much more bang for your buck deep drilling each and confirming A) they exist B) their grade and C) their dimensions.
Why spend money proving up Pipe 1 to 3Mozs+ (which most agree we have) when you could potentially drill and prove 5 pipes exists and have a conceptual target of 10-15Moz
I would much rather have 5 pipes, all with similar strikes to Hobbs 1 to prove a huge deposit exists, but only have a 'conceptual resource target', then a 3Mozs JORC for pipe 1.
The additional pipes bring the 'blue sky value', not a JORC.
SOC Price at posting:
20.0¢ Sentiment: Buy Disclosure: Held
