Hi fellow BRB holders.
I have returned home to freezing conditions and am warming myself with a glass of red wine, a fire and a good read of last week’s announcement.
So first off, this little snippet that many others have already commented on:
“The visual indications from BBDD0020, drilled in a relatively weakly mineralised area under our
deepest intersection to date (BBDD0010), has the potential to be transformational if confirmed by
assay results … [BBDD0020] was completed to test below BBDD0010 which obtained Breaker’s previous deepest sulphide lode intersection (5.3m @ 7.07g/t Au). “
Now, I’m not trying to put words into Tom’s mouth but if he says ‘transformational’ that to me means something big is possibly about to be confirmed.
“The visual indications from BBDD0020 are encouraging and are a step closer to confirming the long term underground potential. “
Now I’m not sure if anyone has noticed or mentioned this yet so I’ll put it here.
“BBDD0020 intersected numerous lodes and assays are pending. Of particular note, BBDD0020 intersected 7m of sulphide lode with up to 8% sulphide from 152.9m (correlating with
the flat high-grade lode in BBDD0010), and 10.4m of sulphide lode with up to 15% sulphide from
315.8m (correlating with the high-grade west-dipping lode in BBDD0010).”
That’s 15% sulphide from 315.8m of visual logging.
If you go back to the announcement of 30
th May (and many others over the past year) and read the comments related to sulphides, you get references of up to 10%. Inserted here for continuity of reading.
From the 30th May announcement:
“The Bombora discovery is hidden below thin transported cover (typically 5-10m). Gold typically occurs as sulphide-rich lode and stockwork mineralisation in an upper, iron-rich part of a fractionated dolerite, the Bombora Dolerite. The sulphide lodes have three dominant orientations and represent sulphide-impregnated fault zones (fluid pathways) with up to 10% pyrrhotite and pyrite accompanied by silica, albite, biotite and carbonate alteration and (tensional) quartz-pyrite veinlets that can form stockwork-style mineralisation commonly associated with the sulphide lodes.”
But now we are being told there are
up to 15% sulphides. What does that tell us? We now have a much "larger concentration" of the hosting sulphides. That’s
up by 50% from Tom’s previous generalisations of around 10% sulphides. So the question is, what are the likely Au values with increased sulphidation? This is what I think may be transformational.
In addition, Tom stated a year ago that he had no doubt that the gold would extend at depth and if you haven’t noticed with recent deeper results, you might get a better picture when assays from BBDD0020 are released. What Tom has always believed and said is beginning to be shown as fact.
Bombora south
I’ve been banging on for about a year now about the previous Bombora south results having missed the mineralisation due to the orientation of drilling. Tom had suggested as much in Melbourne last September. So last week’s ann provided confirmation of what Tom suggested may have been the case with three East orientated holes intersecting minerialisation. BBRC0406 discovered the first primary sulphide lode mineralisation at Bombora South (4m @ 5.97g/t gold from 132m). A little more of the jigsaw puzzle falling into place.
The JORC
Tom has promised an initial JORC by the end of the year. I’m thinking that it may disappoint the market when it is released and that may present a topping up opportunity.
I say this because:
- Tom is conservative; and
- Tom’s comment from at least one presentation. [Sic] Nobody just finds a tier one resource, they develop over time. I think the market will want instant gratification with a large resource when the JORC is released and may not be prepared to wait around for the project to grow naturally over time. Perhaps if some estimates are released before hand it may take some heat out of the sp?
I guess the wild card is BBDD0020 and how ‘transformational’ it is. It certainly oozes a game changer. For those of us who have followed developments closely over the past 18 months and longer, we can read between the lines. Tom’s last announcement was putting the market on notice in his usual matter of fact way.
Ausdrill partnership
It would appear that this looks likely to continue. The initial waiver issued by the ASX on 4
th of November last year stated:
“The maximum number of New Ausdrill Shares to be issued is up to that number which, when multiplied by the issue price, equals $500,000. The issue price is to be the volume weighted average price calculated over the five (5) days on which sales in Breaker’s shares are recorded before the day on which the Company elects to pay any invoice received from Ausdrill Limited for drilling services via a mixture of cash and equity … The New Ausdrill Shares are to be issued no later than 30 June 2017, subject to the shareholder approval having being obtained.”
The Ausdrill shares were put to the last AGM in resolution seven (and subsequent application for an ASX waiver). The shares to be issued were in
part payment for drilling services, obviously the rest being paid with cash. If the arrangement is to continue, that will clearly preserve the cash that we have. The next quarterly should be out by the end of the month so we’ll get a clearer idea what is left in the kitty. (Perhaps the September quarterly or another announcement may also give us an idea if we will dig up some of the shallow stuff and process it to raise funds rather than do another CR – bank balance depending).
The benefit of a partnership with Ausdrill is rigs may be made available when required. A fourth rig will be on site in two weeks, throwing
more popcorn onto the footy field J Furthermore, assays are performed by minanalytical (a company formed by Ausdrill in 2010) keeping everything ‘in-house’.
When I was looking up the conditions of that 850,000 trade the other day, I came across a ‘loaned shares’ report on the ASX.
View attachment 641709
Someone smarter than me might be able to suggest why you would want to loan shares and how that works. My first though was perhaps to short them however when I went looking for that report, I found that only 3,014 BRB shares were on the short list.
https://www.asxonline.com/content/dam/asxonline/public/reports/2017/jul/shortsell_gross_20170707.txt
I also wanted to get back to pinto’s question first regarding what we may be worth? I threw up all sorts or scenarios (including the images in the Brisbane presentation that showed Sirius and Sandfire’s sp in the discovery stage) but in the end, I think trying to predict where the sp may go next week or in a year’s time is a fruitless exercise. There are so many variables. In the end, I reflected on where I would be happy to see the sp by the end of this year and in three years based on my original reasons for buying and on developments since and those imminent. I’d be happy if my shares were worth $1.50 at Christmas and $4 in 2020. I guess any hole on any day could turn things on their head but one thing is clear, the project is continuing to give and as yet (and probably for some time) it is not clear exactly what we have yet. I’m sure there will be many opportunities along the path to production and beyond. As I was told when I first entered the market, a decision of when to buy or sell should be made before you enter a trade. Have a plan that will guide you and allow for some flexibility when opportunity presents itself.
Have a great night all,
Perdy.
