Time to start a new thread as the current ones are getting old and stale.
Have briefly looked at the posts over the last two days, I see that the same negativity and whining continues contrary to what information has been provided that suggests a Binding Off-Take Announcement may be made in the next month or so as we approach the release of the DFS. Although some may complain (@sinkorswim) that there has been a clear lack of progress and no binding off-takes have been entered into, the evidence suggests that negotiations are well advanced.
I posted this yesterday, but with the number of posts discussing buy-outs, lack of PR and such it was most probably overlooked. The March Quarterly (26th April 2016) contained some 'gold nuggets' including the following
"...Two phases of diamond drilling are planned, with the initial program of PQ Diamond Drilling designed to extract samples for further metallurgical test work related to the Definitive Feasibility Study (DFS), and to collect a bulk sample to create concentrate samples for product sales and marketing purposes...."
For those that may not be aware, creating a bulk sample is a fairly big job and takes time. Involving both the exploratory geologist as as well as the metallurgist, the concentrate sample would have been crushed, grinded and the resultant mix homoginised to provide a uniform distribution sample of particles so that each sample taken from the mix would represent the average composition. The following provides a run down of the process.
Now that we are approaching mid-June, it would be safe to assume that the bulk samples required for 'product sales' would have been provided and either already tested by the end user or close to completing the testing. From what others have suggested, several end-users have requested to enter into binding off-takes but were told to wait until the DFS is released. Should that be the case, its evident that they were impressed with what was provided to them.
On a related topic, pay close attention to the video above from 2:22 as it briefly touches on how drilling is used to determine the (1) mineable deposit (2) mid-grade ore and the (3) high grade ore. This is of significant importance as the current in-fill drilling that some consider to be worthless, will assist in determining the area that contains the above mentioned 'high grade ore'. This is made even more complicated as there may two Super Pits, each supplying a slightly different composition that suits the requirements of the end user (Techincal Grade Vs. Battery Grade etc.). It's not a simple case of digging out some dirt and passing it through a rig, hoping that the required specification of ore is released at the other end.
Most companies go through the process of creating a sample so that the user may test it to see if it meets the specifications of the manufacturing process. Variations away from the 'ideal' mix can cause significant problems to both the product as well as possibly to the manufacturing equipment.
Reading the posts from last week, I really feel like banging my head against the wall as it is clear as day that progress is being made and that 'Holy Sheet' moment that people are waiting for may come in the next two months. There have been many that groaned and complained about the lack of progress, eventually selling out in the low $0.03s. I'm sure it will happen again. The only thing is that those that sold out along the way are never heard back from again. I hope that for everyones sake that none of you become one of them.
I'll be sure to re-post this after the first binding off-take is announced and again for each one after.
@sinkorswim) that there has been a clear lack of progress and no binding off-takes have been entered into, the evidence suggests that negotiations are well advanced.
(20min delay)