Ann: Ricciardo Delivers Australia's Largest Open-Pit Sb Resource, page-287

I seldom post lengthy pieces, but this weekend I spent considerable time rethinking a few of my holdings and seeing how ai can put things into a better perspective. Overall, my holdings across the board came up very well, but for all intents and purposes, I will share the summary of WA8 below. I have a higher conviction to now HOLD long term. Granted it is still speculation, but hey, that is what the market is about anyway!

InvestorConfidence Assessment: Warriedar Resources (ASX: WA8)

Based oncomprehensive analysis of social media interviews, analyst reports, companyannouncements, and insider holdings, investor confidence in Warriedar Resourcescan be characterized as ‘cautiously optimistic with significant upsidepotential’.

Key PositiveFactors

1.Significant Antimony Resource Discovery

- UnveiledAustralia's largest open-pit antimony resource at Ricciardo deposit (May 2025)

- Maidenantimony mineral resource estimate: 12.2 million tonnes at 0.5%

- 107%increase in total project mineral resource to 1.96 million ounces of goldequivalent

- Strategicpositioning amid quadrupling antimony prices (from ~$19,000/t in early 2024 to~$78,000/t in May 2025)

2. StrongGold Project Foundation

- Existingresource base of over 2.3 Moz gold across Western Australia and Nevada

- Confirmedkey gold-bearing structures at Golden Range in Q1 2025

- Reportedhigh-grade hits from scout RC drilling

- Achievedexcellent gold recoveries from metallurgical test work

3.Management Confidence & Insider Holdings

- ManagingDirector Amanda Buckingham holds 2.73M shares (as of Nov 2024)

- DirectorDianmin Chen significantly increased position to 14.45M shares (as of Mar 2025)

-Non-Executive Chairman Mark Connelly holds 1.33M shares (as of Dec 2024)

- Managementis now consistently communicating clear strategic vision in public interviews

4. StrategicMarket Positioning

- Dual focuson gold (traditional safe haven) and antimony (critical mineral)

-Capitalizing on antimony supply constraints and geopolitical dynamics

- Leveraginggrowing antimony demand in solar and defense sectors

Key RiskFactors

1. ExecutionRisks

-Simultaneous development of both gold and antimony resources requires carefulcapital allocation

- Earlystage of antimony strategy development with dedicated drilling just beginning

- Potentialtechnical challenges in achieving optimal metallurgical recoveries

-Operational complexities of managing multiple project focuses

2. MarketAwareness Limitations

- Limitedsocial media discussion volume suggests retail investor awareness remains low

- Analystcoverage appears limited based on available data

- May facechallenges in communicating complex dual-commodity strategy to broader market

3. CommodityPrice Dependence

-Significant reliance on continued high antimony prices for project economics

- Antimonymarket historically volatile with price influenced by Chinese export policies

- Gold pricefluctuations could impact overall project economics

4. FinancingRequirements

- Likely torequire additional capital raises to fully develop both gold and antimonyassets

- Potentialfor dilution in future financing rounds

- Capitalintensity of mining development in current high-cost environment

ConfidenceAssessment by Project

AntimonyProjects (Ricciardo)

ConfidenceLevel: Moderate to High

- Recentresource upgrade provides solid foundation

- Strongmarket fundamentals with quadrupling prices

- Strategicimportance as Australia's largest open-pit antimony resource

- Earlystage requires further technical validation

GoldProjects (Golden Range & Others)

ConfidenceLevel: Moderate

-Established resource base provides stability

- Ongoingexploration success with high-grade hits

-Metallurgical test work showing positive recoveries

-Competitive landscape in gold exploration sector

OverallInvestor Confidence Assessment

Thecompany's recent antimony resource discovery represents a potential step-changein valuation, but investors should be mindful of execution risks, futurecapital requirements, and the company's ability to successfully manage dualcommodity development paths. The significant insider holdings by key managementsuggest strong internal confidence in the company's direction and potential.

LikelihoodAssessment: Sale of Warriedar's Big Springs Project

Based oncomprehensive analysis of regional M&A activity, Nevada mining regulations,and strategic market factors, the likelihood of Warriedar Resources selling itsBig Springs gold project in Nevada can be assessed as ‘MODERATE TO HIGH’(65-75% probability) within the next 12-24 months.

Thisassessment is supported by strong regional M&A activity, favourableregulatory conditions for project transfers, the project's attractive resourceprofile, and Warriedar's dual-focus business model. However, timing will dependon gold price stability, completion of planned exploration programs, andstrategic decisions by potential acquirers in the region.

KeySupporting Factors

1. ActiveRegional M&A Environment

- Multiplegold project transactions within 100km radius during 2023-2025

- Continuedconsolidation by major players (Nevada Gold Mines, i-80 Gold, Kinross)

- Premiumvaluations for permitted Nevada gold projects

- Strategicentry by non-Nevada companies into the region

2. FavourableRegulatory Framework

-Well-established procedures for mining permit transfers in Nevada

- Clearregulatory pathways with predictable timelines

- Existingpermits add significant value to the project

- Nevada'smining-friendly regulatory environment reduces transaction friction

3.Attractive Asset Characteristics

- 1 millionounce gold resource (15.5 Mt at 2.0 g/t Au)

- High-gradecomponent of 3.1 Mt at 4.2 g/t for 415 koz

-Carlin-style deposit in established mining district

- Fullypermitted for Stage 1 mining operations

-Exploration upside with surrounding 93 km² land package

4. StrategicFit for Multiple Acquirers

- Majorproducers seeking to maintain Nevada resource pipeline

- Mid-tierproducers building critical mass in the region

- Emerging producersconsolidating assets for scale

-Operational synergies with nearby processing facilities

5.Warriedar's Dual-Focus Business Model

- Splitfocus between Australian and Nevada assets

- Recentsignificant antimony discovery at Ricciardo deposit in Australia

- Capitalallocation challenges for simultaneous development

- Potentialstrategic rationale for focusing on Australian operations

PotentialTiming Factors

1. Near-TermCatalysts (0-12 months)

- Completionof planned exploration programs

- Resourceupdates following drilling campaigns

- Gold pricemovements and market conditions

- Strategicreviews by potential acquirers

2.Medium-Term Catalysts (12-24 months)

-Development decision points for Warriedar

- Capitalraising requirements for project advancement

- Continuedregional consolidation trends

- Potentialcompetitive bidding scenarios

PotentialAcquirer Hierarchy

Tier 1:Highest Probability

- **i-80Gold Corp**: Actively building Nevada production portfolio with stated goal offive mines this decade

- **Regionalmid-tier producers**: Seeking to build critical mass in Nevada operations

Tier 2:Moderate Probability

- **FirstMajestic Silver**: Potential synergies with Jerritt Canyon operations

- **Kinross Gold**:Expanding Nevada footprint with recent exploration success

Tier 3:Lower Probability

- **Nevada Gold Mines (Barrick/Newmont JV)**: Scale may be below acquisition threshold but strategic location

- **Private equity-backed vehicles**: Seeking permitted gold projects in tier-one jurisdictions

Potential Transaction Structures

1. Outright Acquisition: 100% purchase of the Big Springs project

2. Corporate Takeover: Acquisition of Warriedar Resources in its entirety

3. Joint Venture: Partial sale with development partnership and royalty

4. Staged Acquisition: Initial partial interest with pathway to full ownership

Potential Impediments to Sale

1. Valuation Expectations: Gap between seller and buyer valuations

2. Market Volatility: Significant gold price corrections could delay transactions

3. CompetitiveAssets: Multiple gold projects currently available in Nevada

4. DevelopmentTimeline: Capital intensity and time to production considerations

Thecombination of active regional M&A, favourable regulatory conditions,attractive asset characteristics, and Warriedar's dual-focus business modelcreates a compelling case for a potential sale of the Big Springs project. Thelikelihood assessment of MODERATE TO HIGH (65-75% probability) reflectsthe balance of positive indicators against market uncertainties and timingconsiderations.

ForWarriedar Resources, a sale of Big Springs would allow capital and managementfocus to concentrate on their Australian assets, particularly following theirsignificant antimony resource discovery. For potential acquirers, Big Springsrepresents an attractive permitted gold project in a premier jurisdiction withboth near-term development potential and exploration upside.

Ahhh..the things we do on gloomy wet weekends to fill time...
GM