Just came back from presentation, CEO came across quite knowledgeable and confident of the revised strategy (moving away from Iron Ore). I also got to speak with Roger at the booth.
My key takeaways from preso - (these are only my notes and impressions)
*Exploring in the land of the giants, Carajas is the mineral province to be in(probably not completely understood by Oz market
*Looking to explore all assets this year (although Solobo unlikely after my chat with Roger)
Itapitanga -
*easy to explore, right along strike from Jacare, shallow & flat lying
*cheap entry
*initial results have confirmed their view that results will be similar to Jacare (high grade)
*rich red material easy to ID mineralisation
*southern target to be drilled after northern target, probably in a month, results to come soon on further northern target
*new targets under water probably drilled in July
*fantastic project, cheap entry, current MC has plenty of upside on this project alone
Pebas -
*Farm land easy to access
*INV metals previously hit large widths of low grade material they will focus on fault zone
*made comparison to Avanco with high grade +2%
*will be drilled after Itapitanga (July)
Solobo West -
*Solobo seriously big mine for next 50years
*Really spoilt to have this project as this area is and has been dominated my majors for very long time
*very cheap entry and have lots of data from Anglo that have saved lots of money
*historical hole by Anglo didnt reach the IP anomaly due to wet weather so no assays but end of hold did have mineralisation (he emphasised this point)
In closing - great assets , got the cash to exploit and management have skin in the game
Chat with Roger -
Itapitanga -
*Pretty confident grades and widths will be consistent
*I asked about the laterite layer getting thicker as we head north , he said nothing to indicate that he believes widths are fairly consistent with JAcare and will average about 12-15m, he said would of liked more +20m hits may come
*confident grade will be consistent it’s now juts about drilling out to confirm column
*should be completed by end of June with a resource out by August
*for a standalone laterite deposit needs to about 40mt cant see why it wouldn’t be
*was suprised with market response (i did suggest Solobo West news might have dampened things he agreed)
*swamp area is interesting, got the impression wont be drilled until after June/July they have enough areas for initial resource and its wet
Pebas-
Will follow straight after Itapitanga looks interesting not much else to say
Solobo West -
*He said as a geologist this is what he is excited about (he did give me that impression also)
*Geology looks really good
*delays disappointing but they are working on getting the approvals, he was confident they would get them this year but not so confident they would have enough time to drill before wet season (Nov).
*If they got them by august then they would but any later wouldn’t give them enough time (couple of months) to properly drill, they know where to drill juts need sufficient time to justify expense
*its jungle area so some prep is needed but certainly got the impression this is the one they are excited about.
*he did say he lived in Brazil for many years and is well connected and have the right people assisting them with granting
*nothing has changed in law so it’s about a new person (a greenie) interpretation , doesn’t make sense that they allowed the permit for exploration but now say no to drilling permits
*there are very big mines operating in the area so juts need the federal people to get involved
*Oz Embacy helping as we speak
Good guy, knows his stuff and is confident of the projects they have, I commended him on his social media presence
I came away feeling comfortable with how things are progressing, seems the current project will keep providing positive results its juts about whether they can get enough volume but he did say he couldn’t see why >40mt was achievable, I guess for me it’s whether the market is expecting more. Hopefully next round of results isn’t far away and can help get some momentum back.
Solobo West is a bummer as that is clearly the game changer, a few people at the booth seemed only interested in this project.
I hope I have reflected the preso and chat accurately but please DYOR.
Best wishes all
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(20min delay)