In today's RNS the company have now confirmed the existence of the University of Dar es Salaam report that I found online over a month ago - see link here:
https://docslide.net/documents/geol...te-deposits-in-lushoto-district-usambara.html
They say in the RNS that: "The presence of the Lushoto bauxite deposits were the subject of a University of Dar es Salaam report in 2003 which confirmed bauxite mineralisation of between 40-60% Al2O3 based on historical drilling data and surface geological mapping. The results of the recent sampling program undertaken were in line with the conclusions of the 2003 report and will greatly assist Lindian in obtaining a maiden JORC resource scheduled for Q4 2017."
Essentially they have confirmed that there will be a minimum of 37 million tonnes of JORC reserves announceable before the end of this year. However, I strongly suspect that given the developments in mining technology over the last 25 years will see the recoverable ore increase significantly.
Also when you consider that when I was originally looking at the university report the company only had a license area of 53km2 wheras it has now increased this to 243km2 the play will significantly increase.
The 37 MT is cast in stone now IMO but with the license increases and the additional 3 deposits announced today this has the potential to announce 100MT+ of bauxite at a 51.75% grade when the JORC comes out before the end of the year.
Just to put this into context: Metro Mining have 237 million tonnes at a 50.2% grade and their market cap is $283,000,000!
Factor in the point that the Lindian assays show that their deposit has almost 90% less total silica and only 20% of the reactive silica compared to MMI and we are looking really good for an even higher grade of resource than Metro have.
The market has not noticed this yet and the herd have not yet arrived, which is why the market cap is where it is now.
Finding shares like this is exactly why I play the market. There is still risk here until the JORC comes out obviously, but the existence of the university report mitigates this significantly. At 37MT reward levels from the current share price are at least a three bagger and if the JORC shows 100MT then we are talking Disallowed by Jan 2018.
Every announcement Lindian puts out makes this look more and more like the next MMI to me and this is why I have sold out of my CAY and ABX and put the money in here. Lindian today IMO is MMI in Jan 2015 when the market cap was also $8 million. I missed that boat by 2 years and I am sure as hell not going to miss this one.
Only time will prove me right or wrong but it is when the risk is high that the big money is made - you just have to weigh up the risk vs reward and for me, on this one, the scales are firmly weighted towards reward!
(20min delay)