Company has 65M shares on issue and a mcap @ 8.0c of $5.2M. Current cash end of March is $4.0M. June expenditure is slated at $500k. This month they are starting drilling at Box Hole which is a Mississippi Valley Type Lead Zinc target. Interestingly the company has good outcroppings of mineralisation and has seen a correlation between geophysical drill targets and surface mineralisation.
Given the surface expressions and the presence of Galena ( Lead Sulphide) plus the correlation of geophysics, in my mind this makes for a decent exploration play for those interested in this sort of thing.
I have met Bill Hewitt (the MD) a few times and he is the right person for this task - a long time geologist who knows his stuff.
The Box Hole is located in the NT north east of Alice Springs.
A few drill holes with mineralisation would set the stock on fire and given the commodities market could see a mcap closer to to the $20M level depending on what they get.
They are putting down between 4000 and 5000 metres of drilling starting in a few weeks.
The company also has other base metal and uranium targets but in the near term Box Hole is the one to watch. It is unlikely given the drill targets and the galena at surface that the drilling program will produce completely zero results for lead zinc. Only drilling will tell.
For those that like a crack on near term base metal drilling on decent targets then this represents a good punt.
It is not dissimilar to the current action on Rey Resources insofar as drilling on good targets (albeit coal) is about to commence.
Good luck and cheers
omg
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