Ann: Acquisition of Green Bay Copper-Gold Project, page-30

Does Steve Parsons have the magic?
My very first investment in a mining company was Bellevue Gold not long after it released its maiden JORC resource in late 2017. I suppose I got lucky as I held it for a few years then cashed in at around $1.30 per share.
Yesterday’s announcement has got me thinking about Steve Parsons. Has he done it again?
Is Green Bay Copper Bellevue 2.0?
For historical context let’s look at how Bellevue Gold (BGL) has performed since 30^th June2017
28^th Aug’16 - Draig Resources (later renewed Bellevue Gold) announces of Bellevue Gold Project (underground mine had been closed for 20 years and only had a depth of 450 metres)
31^st Mar’17 – New Executive Team lead by Steve Parsons announced
31^st Aug’23 – Resource 3.1m oz gold @ 5.8g/tonne
31^st Aug’23 – Share Price $1.69 vs 30^th Jun’18 Share Price $0.17 is a 894% gain or +58% p.a.
None of the underground infrastructure at Bellevue had little value apart from the shafts and drives.
There was no existing JORC so all current resources are due to drilling since Aug’16.
New gold production on track for Q4 2023.

Let’s compare to Green Bay Copper
Mine closed in Feb’23 due to Voluntary Administration (only 6 months ago)
Current (non JORC) resources - 39.2Mt at 2.1% for 811,000t CuEq1 , of which 68% is in the Measured and Indicated category
Only mined down to 750m (underground mine) vs other similar Canadian mines down to around 3,000m. A huge opportunity to expand resource by further intense drilling (same as Bellevue).
Green Bay Copper in a world class mining district that welcomes mining (same as Bellevue)
Significant processing infrastructure worth $250m included (better than Bellevue)
Significant mine infrastructure in place, including hydro power (better than Bellevue)

What else is Steve Parsons looking for?
Turning AUT into a mid tier copper producer on the ASX. Very few available to invest in at present (SFR, 29M, CMM, AIS) despite the very bright future for copper as an in demand commodity.

Wanting to create value from a brownfield through the drill bit (same as Bellevue)

This $53m capital raise allows Parsons a very fast start to the project and allows drilling to start immediately.

If I were a betting man I would give it 2 years to grow the resource and confidence levels and then see a buyout by a big producer as getting new copper mines up and running usually take between 10-15 years. In two years the resource would be confirmed and mining and production plans would be in place ready to go; perhaps with just another couple of years before the first copper concentrate is produced, meaning a new large mine up and running in about 4 years ready to match the timing of significant copper deficits forecast for the end of the 2020’s

My view is that Steve Parsons has put together a brilliant plan to get a good mid tier copper producer up and running and the only risk is that exploration drilling does not find a large enough resource to attract a big existing producer to a takeover. Given the ground and the existing resource I reckon that risk is pretty small and I reckon Steve Parsons thinks the same.

GLTAH. For full disclosure I will be applying for shares in the SPP, enough to maintain my relative %holding.
Cheers…….D