Sumitomo have a 3 year US$30m earn in period from June 2019 into the Egina Project to achieve a 40% interest in the Project. The Project includes 100% Novo owned tenements and the Novo/ESS JV. I see the potential interest in the Novo/ESS JV as being Sumitomo 28% (40% of 70%), Novo 42% and ESS 30%. Sumitomo and ESS will have a majority voice of 58% which I hope would have some impact on how the JV progresses.
The proof really will be the quality of the lag gravels within the ESS tenements. There should be no reason for not “cherry-picking” any swales in any section of the overall Project (including the JV) as the mechanical sorters can move in, extract, rehabilitate and move on at what appears to be very low capex, very low operating costs and significant profit.
We at least initially need to see some strong announcements from Novo highlighting the potential of the ESS ground. The market doesn’t care at the moment given there has been no positive move in the share price given nearology to all Egina Mining Lease information released to-date.
Our CEO is due to visit Kangan with the Novo CEO within the next week. ESS need to find a way to push this story without deflecting responsibility to Novo as we all know how inadequate that has been. Hopefully not just some happy shot photos for Tim’s personal photo album.
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