I'm happy with OZM using the HL process due to their low grade resource, but NXM knows their Crusader project is capable of traditional mining as SAR mined their Wallbrook pit right next door.
I reckon had SAR still owned the Carosue Dam Mine themselves, NXM would've had a sale or jv deal done by now, but as part of NST, the dynamics have changed. It's looking likely a jv with someone like BML may be the only way forward.
NST has in recent times done deals with Strickland and Solstice which would lead most to think they'd just do similar with NXM, especially with a ready made project right next door, but it may simply be about personalities in the end. The other companies have dealmakers on their boards which seems to be the main criteria these days. BTR is an example and PTN the same, using 2 companies which not long ago had smaller market caps than NXM.
AT isn't a natural spruiker, letting results drive the company's fortunes, unfortunately about 2 years ago the deep drilling didn't live up to expectations and ended any real chance that NXM had another Carosue Dam on their hands.
The mre was well under expectations and the sp has retreated to reflect the new reality, rather than the broker driven hype that was predicting 80cps as fair value. Most mre estimates were in excess of 1moz and saw the sp rise above 60cps, but results over the last 2 years just haven't been worthy of the lofty expectations.
The eastern states foray has been a distraction more than anything else, though was worth the risk imo.
Now it's back to basics and feels like the company is where it was about 5 years ago, despite having an initial resource slowly progressing along in the background, whilst undertaking low level exploration close by.
They don't have the budget to go hard, though it could also be about not spending too much until the Pinnacles mining study is complete as I see that as a source of early monetisation as outlined later on. AT seems content to keep systematically working up the area in order of prospectivity rather than try to drill out the Crusader/Templar area to prove up the 750koz target estimate quickly to give the project more size.
The last 2 capital raises have been quite dilutory compared to when they were flying about 3 years ago, at one point raising $19m @.46 for only 41m shares, compared to the latest raising of $4.1m @.042 for 97m shares.
I'm not sure Pinnacles will get off the ground as NST has to buy the ore, so imo they'll purchase the project from NXM once mining studies are complete. I'd assume they'd rather control things and dig the ore up themselves rather than NXM having to bring in a partner.
It'd serve NXM better also to just sell the project for a fair price and put the cash towards Crusader. It may also open the door for AT to start a working relationship with NST, which could open dialogue regarding a jv for Crusader and Templar.
All just speculation on my behalf and probably well off the mark. Anything could happen
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