more ballsy claims from big kev

Having just got back from a field trip, excuse the lateness of this commentary, but really, there's a whiff of desperation about the release of these results on the Canegrass magnetite drilling.

I've seen two samples of magnetite ores from gabbros in my time - Windimurra's (WVL) and Balla Balla's (AXO). I can tell you this much - the photos of the gabbro Big Kev has let slip haven't got a shade on Balla Balla's magnetite deposit which is 80% magnetite, and look essentially similar to the Windimurra magnetitite ore.

Several caveats before you all get crazier than you already are for investing in this;

30-40% magnetite is fine as an estimate based on modal (visual) abundance for figure 4a. This is from the 30-40% zone shown in fig 7.

Note if you will that figure 4b is an end piece of core; there's no evidence that this 90% magnetite piece is any larger than that piece of core. Secondly, the 90% magnetite is in contact with a much coarser grained gabbro - to me this looks possibly faulted or otherwise disturbed rock. It would appear that this is his best looking bit of sexy core, and it's 5cm long. If he had a tray or five of 90% magnetite, he'd have shown a photo.

Secondly, the maths he appears to use to justify a Fe contant are a bit odd considering that this isn't pure magnetite.

eg; Pure magnetite is 70% Fe. If we assume his modal estimates are fine, 40% pure magnetite is 28% Fe. However, MXR is investigating titanomagnetite. They intersected titanomagnetite in their RC drilling, so for Big Kev to say 40% magnetite equals "32% to 42% Fe" is now saying that he has intersected a different magnetite unit to that which he has drilled already. This would then, logically, imply that he cannot show geological continuity and we should ignore his pretty maps and it trashes his 3Bt target.

Or, he's trying to pull a swifty and ignoring the fact he has titanomagnetite. I'll show you his real grades;

Looking at JRV, AXO and MXR's metallurgical testwork, it is clear that a purified magnetite concentrate from these ores is ~58% Fe, ~12% TiO2 and a smidge of vanadium, etc.

58% of 40% titanomagnetite is 23% Fe. 12% of 40% titanomagnetite is 4.8% Ti. So it is clear that Big Kev cannot do his maths properly.

Ignore his SG argument. Modal percentage is modal percentage; the density is irrelevant when your 100% magnetite concentrate is 58% Fe, 12% Ti and a smidge vanadium. The density of magnetite (SG 5.1) merely turns that 40% volume percent into greater tonnage than quartz (SG 2.67).

By saying his 40% volume percent rock contains 40% Fe he is saying, literally, his rock is 40% pure iron. This is crappy maths. Hence, his 3Gt target is probably a crappy target.

Please, feel free to whine and churn my maths and tell me this wasn't an announcement aimed at ramping the share price over 20c for the express purposes of getting the oppies exercised.