It comes to a bet on drill discovery. - I88 must convert very high grade soil samples, into a drill grade x length of drill x strike length = MRE. It could be high grade pockets, it could be bigger. Now that soil signature could be high grade shallow, thin / thick depth, or displaced from original source. They may have to drill here, there , and elsewhere to find the source rocks. Or it may just be in the soil displaced from somewhere. It is promising for sure, but the hunt for what / where beneath, or a soil / clay/ alluvial surface deposit remains to be risked. Exciting for sure. But the path to MRE has drill risk/ hunt fishing exercise to contend with. Grade x thickness.
- C29 already has a non jorc foreign resource nearing 9.85m lb, and many other hot historic drills that essentially have discovered targets to be out filled. Fatten all the single drills, to become satellite resources to the one that has predominantly been drilled out that makes up the initial MRE. That is a high probability fertile ground pathway, to convert historic single drills expansion into more MRE imo. Add that these drills are in trend 15km from USSRs largest U mine, and we could further blind drill outside of the known hot drill targets to expand. Add that we could be adding further contingent blocks to take out a larger foot print for a junior on the ASX. Which, is kind of like when the early days of a land grab for the iron ore majors in the Pilbara.
In the Webinar, was asked what was the minimum MRE to stand alone operation economics ISL, because also the costs of operation in Kaz are approx half that of WA, much cheaper than Canada - a poultry 20m lb could justify a multi decade operation. However, the prize would seem to be much larger, when you consider the non jorc foreign estimate is already half of that, and multiplies would come to mind with all of the above hot drills fatten out, upside extension drills and other potential blocks we could acquire.
So in one case, the we are virtually (non jorc historic foreign estimate) half way ISL MRE already to development ready base case, but could also not just stop there, but exceed to much larger things and potentially make us a takeover target.
We have to wait to see how our stewards are putting our greater foot print together as indicated in the webinar would be one of the initial directions.
Both companies will need to raise funds, and webinar suggested C29 we could achieve higher pricing before hand. If c29 has a high probability of historic conversion, into high grade news events. Then is a recipe for news flow momentum and price appreciation.
So coming back to converting risk. There is C29 historic drills, and there is I88 surface soil sampling.
It really comes down to the probability of high grade news flow to justify higher prices. I think that because we are a former copper play, we are largely unknown, and should re-rate just from market discovery into just a few news tickers to alert the market.
Also, i contend that C29 are further advanced, having historic drills in place and upscale. That justifies a higher MC that I88 soil drill risk IMO.
One could argue that C29 also has some risk on still for drills, but that would be an initial twinning exercise, and location is already determined. Just one or two twins, would confirm to the market what is historic, then we could focus on out fill drilling. You are also betting on, the high degree of diligence in record keeping that the soviet era would have militarily rigger. For mine, that is big confidence tick.
It is early days for both, and if I88 are able to convert soil samples into drills of substance, they could also be of significant scale. But i back the historic drill, over the unkown soil target drill until there is further clarity.
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