Given that COVID restrictions are in the process of being eased in Argentina, and that the Company has been submitting additional information as requested by the Argentina authorities and the permits are already at an advanced stage,
https://hotcopper.com.au/threads/ann-field-exploration-update.6112031/~ sort of rolls eyes as in March the permits were anticipated to be granted shortly ~ hence why the company expected the drilling to start late March.
https://hotcopper.com.au/threads/ann-king-tut-project-drilling-contractor-appointed.5965792/but hopefully once the mining department is back to full normal working conditions the permits will be expedited, Argentina needs to get international companies, local industrial and commercial activities progressing to aid the economy which is currently on the brink of ruin and to provide work to families amid a steep rise in poverty that has stricken the country due to the pandemic.
The neighbours "estimated" timeline for drilling results (Easter) may be a little pessimistic, but maybe not unwarranted given that the company:
(a) has shifted from conventional drilling methods and the need for extensive civil works for access roads and drill pads (as per the Prospectus) to engaging a drilling contractor that can supply a fit for purpose modular drilling rig, but
(b) the relocation of the drill rig to each site will be labour intensive, but that will also ultimately support local communities through employment opportunities - albeit temporary.
~ The estimated timeline for the 6 x (circa) 150 metre drill campaign will take approximately 8 weeks to complete, a guesstimate of 6 - 8 weeks for assay results - rough guess circa 4 months from the start of drilling.
~ Given the topography as described in the Sangster report as
being extremely rugged,
IMO, any follow up larger drill campaigns will also encounter extended time to complete but the Company at some point will need to build the access roads if the initial results are indicative of a viable project and they envisage moving to mining.
~ Although the Company had circa $3.4m cash/cash equivalents at the end of the June quarter (most of which is allocated to the King Tut project), the Working Capital and Administrative budgets will need to be replenished.
~ There is also segments of IPO budget overruns (totalling $380,000) that may have an impact on the overall King Tut budget or what may need to be trimmed if savings can't be found from other segments.
~ Still has been no indication if a base camp has been erected, but it appears prudent (or Covid assisted) that it hasn't until any results from the drilling campaign are released.
~ Along with the depleted budgets the dispute with Airguide (if the defence of the claim is unsuccessful) some sort of fund raising maybe be needed, will not be to much of a issue utilising the ASX Listing Rule 7.1, Company's 15% placement capacity (circa 8.5m shares could be issued without shareholder approval) - Although the company has covered re-allocation of budget funds (section 5.7 Prospectus) Will any loss of claim against Airguide be considered or covered under that section?
Good luck in your investment journey .....
cheers
