Healthy Bid at 6.8c, page-29

I am a longtime Sipa lurker but previously never an owner, reason being was the Thaduna target was a Cu sedex style deposit like Nifty in the Patterson province.

The problem with a Nifty style deposit would have been the grade - 1.5% cu ballpark target. The grade in itself is good if its an open pit job. But it was clear whatever is going on at Enigma was going to be deep and because of this those type of copper grades for an underground mine would have been marginal. A marginal mining proposition usually would have a low enterprise value.

The bht -pamwa, magmatic ni - akelikongo and oregenic gold targete in Uganda all have potentially very large enterprise values in the ballpark in excess of a billion dollars. See SIR has an EV of a billion for their ni magmatic deposit, IGO has only 30% of an orogenic gold deposit and the bulk of their 1 billion valuation is attiributed to this. BhT deposits well these guys can be way way over a billion dollars cannington broken hill etc. Something like a nifty target that is deep and an underground mining proposition in this cu market would have an EV in the ballpark of 100 million.

Anyway its not hard to see why Thaduna was jettisoned, the risk reward just wasnt there for a cu sedex deposit, in my opinion only - with the most respect possible.

Also the tenements in Uganda are basically an entire section of a mobile belt, it is rare for a junior to get hold of a contiguous landholding that has not been subjected to modern systematic exploration. This is the key point, In any belt there will always be an entire spectrum of undiscovered deposits from huge down to the tiny. It is the huge ones at surface that typically get found first, reason being is they are outcropping (or close enough to surface they have geochemical expressions in the regolith) and because the first order deposits are large they have the largest anomalies that typically dont get missed.

In short I can understand why long time holders are jacked off they werent consulted selling off Thaduna, but in my humble opinion it was absolutely for the best.