The end of quarter cash position was $4.05M at the end of 30September 2022. I’d guess the remaining cash balance would depend heavily on if the $633k spent on exploration and evaluation last quarter included any payment for the 62-hole Victory Bore drilling campaign. If no upfront payment was needed, or none of the work was invoiced during the quarter and if we assume $50/m ($50/m is a guess for Reverse Circulation drilling) of 5,189 m drilled, that’s approximately $260k outflowing. I believe the cost is most likely higher though, the 2,754 m of RC drilling completed at Yidby in June was most likely paid in the September quarter.
The announcement mentions some of the analytical methods but doesn’t explicitly state if all methods were conducted on all samples.
“The analytical technique utilised the Nagrom KM-2209-064256 method for Al, Al2O3 Co CoO Cr Cr2O3 Cu CuO Fe Fe2O3 Ni NiO PP2O5 S SO3 Si using Method XRF104 for result units as percentages. LOI used theTGA 002 method to percent units.”
I’m assuming Nagrom and LOI are the laboratories used or is LOI an acronym? (IF LOI is a laboratoryI assume it is a secondary laboratory for quality analysis and control) If we assume $25 per method and we know from the 2,594 samples submitted that at a minimum that many analyses will be completed, that’s approximately another $65k, or if two methods were conducted on each sample $130k.
I’d guess that the combined staff, administration and corporate costs will be approximately $300k again (previously, 332k and 304k for the quarters that ended in June and September, respectively)
Add in the possible additional exploration expenses of the five diamond drill holes at Yidby, the flora and fauna schedule at Perenjori if it has been carried out, and any other scheduled work I’ve missed. Based on the pure speculation above I wouldn’t be surprised if the quarter or work in the quarter cost $1M and I’d hope they have $3M left at the end of this quarter.
I think they definitely need to pick one deposit and focus on it, focusing on the four is going to see a massive cash burn especially with both pre-feasibility studies scheduled for the VictoryBore/Unaly Hill project and the Perenjori Iron Ore Project. In addition, they have drilling planned for the Perenjori PFS, further drilling at Yidby once the diamond core program is complete and the results are interpreted alongside theRC drilling results, and geochemical sampling, ground-based EM surveying and drilling at the Kooline High-Grade Silver-Lead Project. Another round of cap raise at this share price will easily see us above 2B SOI. I definitely agree, if they can get a big player onboard in the form of a joint venture, that possibly may be the way to move forward.
Keen on hearing everyone’s thoughts.
NFA
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