Hey guys,
Not one for huge posts but had chat with management last week and happy to share some information that might help or assist people. Nothing too out of the ordinary from the report and may not surprise anyone, but thought people may like to know.
The AR (aqua regia) testing was conducted from the original samples and proved to be acid soluble with high %’s extracted. This was to be part of the mineralisation process and i was informed the same kind of test was also used by another major rare earth company in the lead up to prior announcements. The results as shown in the report were most pleasing. It was extremely important as the company explained that had the REE’s not been readily soluble, then the remainder and future of the project was bleak. Was this the million dollar news that most investors were after? Probably not.
The next step as people are aware is a salt and variety of PH tests to determine the Ionic exchange effect/degree acidity/acid consumption of the REE samples. Optimal results at a PH of 4-5 would be what the company would like see. Other final %’s were given, and I am sure that people can draw their own conclusion once results are released. It does get pretty technical so have tried to keep it simple. Many people including myself, asked why this could not have been done concurrently and identified at the same time of the previous AR test. Main reasons given were the costing, set up of labs to co ordinate a separate test and the fact that the samples were almost 5 years old. My observations and understanding is that a proper and thorough process needs to be followed, and the best way to do that would be to use the fresh samples extracted in the next drill campaign for the most accurate results. So my understanding is that there were several reasons for this, and not an attempt to bide time or mislead people. Personally, what is misleading to me, is companies that identify their project as “Ionic” or “IAC” and later get caught out when it is proven not to be or the project is in the too hard basket. The last report from MRD to my knowledge did not claim such terms.
Gavin Argyle was discussed as a welcomed addition to the MRD team and most valuable stakeholder. The company explained he now has a very influential and “hands on” role in the scoping of this upcoming project. He and the company also have internal researchers which provide information, insight and direction of the future of the project. In any case, he has purchased nearly 10% (options included) of the company before the full extent of the mineralisation has been identified. Not to mention the other investors who have contributed. I guess people can draw their own conclusions from there.
Government grants have not been applied for yet, but is most definitely on the agenda. It was explained that there are different types of loans and support for companies with a focus on critical minerals. Loans could be given for a variety of reasons ranging from research to funding a project. So it seems there is plenty of opportunity for MRD to reap the benefits of future government support. If successful, this financial assistance also addresses pervious posts which are concerned about SOI and future CR’s. So there are many potential benefits to all involved.
The company hoped to have its first drill completed by the end of the year. Given the Xmas period, bookings, breaks and nature of that time of the year, it may/may not happen. People need to be realistic. Remember that the company has already raised these funds for drilling and do not now have to conduct another CR. This would only add more time taken to start the campaign. Circumstances/costing could always change, but that is my understanding of it.
A very upbeat and positive vibe in the conversation, and remember that all companies keep their cards close to their chest. My view still is that there is too much smoke to ignore the signs and nothing has changed. The SP may decline a little over the next month or so at worst, but that is largely due to the modern investor and lack of patience imo. As the drilling commences, I expect another sharp rise which may in turn be bigger as the build up to a potential discovery is hopefully announced.
One step at a time re next news and maybe a little early to worry about SOI/JV’s and future CR’s. A quality discovery with government funding will take care of most things i feel. If the discovery is made with favourable extraction, then MRD will be the ones in the box seat. 100% ownership with high tonnage and close to port will potentially already save the company millions of dollars before a ball is kicked. Time will tell if it can get off the ground….
No expert here, but hope that helps a little!! Others will obviously have their own opinions, views and outlook of the company but thought they were the best to ask.
Comments appreciated …
Good luck to all holders
Ddog
DYOR
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