JUT jutt holdings limited

a bit of sober commentary

  1. 4,673 Posts.
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    Hi guys, I don't hold, and thats partly because I have no money, and partly because I think this stock is becoming overcooked and its starting to steam through the cracks.

    Number one, I won't comment much on Onslow except to say that the higher the grade, generally the smaller the tonnage, especially for shear-hosted sulphide deposits. You might get lucky, but you might be disappointed in the long run. I'll wait and see and give you my thoughts for what they are worth when the news comes out.

    Number two - money. How much does JUT have now? 3300m of RC and diamond would probably have cost them a good $400k. Justified expenditure, but a steep impost for them given they raised only a million bucks last time. So they'll be back out with the hat very soon, so keep this in mind when you write "20c by breakfast, smoke me a kipper". iIf Ayaz is smart he'll let it get to 20c for 3 days and dump a million buck share placement on you all at 15c in a jiffy. If he's a slow boy, he'll waste that opportunity and you'll be seeing him sell shares at 10c again, so he has to be ruthless like that. Either way, there's a dip coming your way soon.

    Thirdly, Evelyn-Quamby may have 41 conductors, but remember the company flagged only a few of them as high priority and there is more out there than simply zinc-lead-copper sulphides, especially
    Note the wording of the announcement carefuly - did they say 85% of holes had hit sulphides, or that 85% of holes had hit copper-zinc-lead sulphides? Remember, too, that a lot of the holes are dipping and there are several thin intersections. If these don'[t all have +5% copper in them, its not going to be a ball-tearer by any means. Depending on how it pans out, this could reduce the size of the strike fof mineralisaion from 900m closer to 300-400m.

    Finally, there is no guarantee they'll repeat this at quamby, or or all the other conductors. They'll be very lucky if this is a Besshi style VMS, to get this over 1Mt - and extremely lucky to get it to 5mt. 10Mt would be pushing the best a Besshi style has ever got - and all other Besshi deposits aren't hosted in ultramafics, so the rules of the VMS game don't necessarily apply.

    In summary...take a deep breath and trim your expectations. Look what happened to NSL recently, don't get too carried away, set yourself a goal (a reasonable goal, even 10% in this market is a fine return) and don't overcommit.

    Finally, the reason they haven't shown you a tray full of goodies from the 6m massive sulphide intercept is because it probably wasn't pretty. Technically, something with <30% sulphide can be called "massive". However, the 20cm bit of 100% sulphide they did show did contain some stringers of copper sulphide, and either massive pyrite or iron-poor sphalerite. So we can at least infer that that intercept will go 2% Cu and...possibly...high grade zinc. Unless it was pyrrhotite.
 
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