Morning all.
Up until now, we have all been discussing the positive impact of GAL's Callisto PGE discovery on CNJ and GSR, accordingly on their own potential PGE/Nickel/Rhodium discovery within the MTJV tenement number R63/4
If my suspicions are correct, on Friday (at the very latest), CNJ & GSR will announce that they have made their very own "major" PGE/Nickel/Rhodium discovery at their MTJV tenement number R63/4, i.e. the shoe could suddenly be on the other foot i.e. it may be CNJ & GSR who actually end up calling the shots within Mt Thirsty/Norseman Area, due to simple fact that CNJ & GSR may end up having the far larger and far more valuable "major" PGE/Nickel/Rhodium discovery in the Mt Thirsty/Norseman Area.
It is probably a bit too early to be 100% certain about this, however, if CNJ & GSR, over the next few months, do confirm that their shiny new "major" PGE discovery (within MTJV tenement number R63/4) is indeed 1.8 kms long (towards the south), and has a significant width (to the west), the situation that I have just detailed, just could become a reality.
Further, should CNJ & GSR make another "major" and entirely separate PGE and/or high-grade nickel to the west (as part of their Phase 2 drilling program), this would further increase the overall value of MTJV tenement number R63/4.
In addition, CNJ and GSR are already sitting on a fairly valuable and JORC/PFS proven Cobalt/Nickel resource (their MTJV Cobalt/Nickel Project) which is also within MTJV tenement number R63/4.
Therefore, although it is still very early days, it could actually be the CNJ/GSR MTJV tenement R63/4, which ends up being very much the "jewel in the crown" in the Mt Thirsty/Norseman Area.
Having said this, I would have nothing against GAL i.e. Mark Creasy and Brad Underwood, lead managing the further exploration and development of a combined Mt. Thirsty/Norseman Area Project. Although, quite frankly I believe that it will be IGO who, with their huge funding capabilities and mining expertise, will take over the development of the Mt. Thirsty/Norseman Area Project and turn it into a producing mine asap.
With regard to IGO specifically, there is clearly a big rush by major miners to secure an adequate supply of battery metals ahead of an already massive surge in consumer demand for electric vehicles. What a great time for CNJ and GSR to make a "major" PGE/Nickel discovery!!!!
Given that IGO's Nova mine is heading to towards the end of its useful life, I am sure that the Mt. Thirsty/Norseman Area Project is already on IGO's shopping list (even moreso if CNJ & GSR announce that they have made their very own "major" PGE/Nickel/Rhodium discovery!), In fact, such an acquisition would consolidate IGO's position as Australia’s leading independent nickel producer as well as immediately establishing them as a key PGE/Rhodium player.
Given that Mark Creasy currently owns ca. 10% of IGO, and also holds ca. 26% of GAL (and IGO already owns ca. 10% of GAL!), IMHO the serious entry of IGO into the Mt. Thirsty/Norseman Area Project picture very soon is not really a matter of if, but rather of when (IMHO).
It goes without saying that the serious entry by IGO into the Mt. Thirsty/Norseman Area Project picture, whether in the form of an ouright 100% acquisition, or as a major JV partner in a consortium (IGO, GAL, CNJ and GSR), would be a major bonus for all parties, and particularly their shareholders, due to the fact that the potential value of the entire Mt. Thirsty/Norseman Area Project would realised far earlier and thus also be significantly higher.
Let me explain why. Normally at the discovery stage (where exploration has revealed that there is a significant amount of mineralisation that can be mined), further studies need to be carried out to ensure that a mine is economically feasible (PFS). It has been my expereince that many investors exit "post discovery" or "pre PFS" (which I believe may have already happened at GAL). After the economic feasibilty of the proposed mine has been established, there is usually then a new set of challenges for the explorer i.e. construction and financing. However, by having IGO already on board with their major financing and mining expertise capabilities, the PFS process can be fast tracked, and mining construction can begin far quicker than would normally be the case.
Please note: the development of a mine is a rare moment, and most mineral deposits never make it this far! It is the involvement of IGO, which will massively increase the chances of the Mt. Thirsty/Norseman Area Project actually becoming a world-class PGE/Nickel mine.
Why will this sigificantly increase shareholder value and far earlier? If a company has already secured an experienced mining operator as well as all of the necessary funding for the development of the proposed mine (in this case IGO), major investors will immediately see the massive potential revenue stream that will flow from this mine (and for 20-30 years!). And this is precisely what institutional investors, pension funds etc. are always looking for (and only want to see!). Hence they will hop on board.
I hope the above shows how important it is to have a company like IGO "potentially" on board, for a "potentially" very exciting Mt. Thirsty/Norseman Area Project that all companies can profit from, including, their shareholders.
Let the games begin.
Wishing you all good fortune (whether you are CNJ, GSR, GAL or a IGO shareholder) over the coming days, weeks, months and years.
Disclaimer: This post is my opinion only i.e. it is not investment advice!
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