1. For sure, this is a testing time... losing money always is!
2. And no-thing needs correcting in the @ozcosmos post... long story short, OAs not converted at the end of this month is a kick in the guts to LTSHs and puts management in the cross hairs (see point 1).
3. So, all the saliva being spat atm is understandable and to be expected... but let's face it, the back drop ain't great either; change of management, cone of silence media policy, exit of the pigs, pandemic, inflation, floods, commodities downtrend, (nuclear?) war in Europe (see point 1).
4. Sure, all the above seems bleak, but something never changes and that's what's in the ground... we all know that East Tennant Creek has huge potential. The world class science is sound, with known deposits to the west and east AND the fairway in-between has show mineralisation in all 8 holes drilled so far by us as first mover. Again, 500m of iron in hole 7 and 800m of sulphides in hole 8 is no-thing to be spat at (see next point).
"To achieve such a major technical success – the discovery of a blind, large-scale IOCG system – in a greenfield, frontier terrane through the use of geophysics is an outstanding achievement at such an early stage of the Project’s evolution."
5. Make no mistake, altho technical success means no-thing to this market, it means everything to big majors who have cut their exploration budgets over the decade long commodities bear market. Majors are now looking for the next gen blind targets with JVs explorers who know what their doing (4 experiences geos) with a track record (previous JV with s32 - only 1% achieve this) and are resilient (to survive this long you in a decade bear market you have to be).
"What the market and impatient shareholders look for in drill results is different to what majors, who are looking for opportunities to secure ground, which is prospective for the Tier 1 style/type of deposits they seek. The majors have a good understanding of what the signatures of these sorts of deposits are and what are early indicators as to whether the area might have potential. In my opinion I consider that the sort of early results reported today are of the positive nature that may prick the interest of majors looking for the opportunity to secure a position in an early-stage exploration program."
6.Fact is, now that OAs are dead money, BOD will have to work extra hard to get a major to come on board as JV to drill out ET (8 holes down but probably another 30 or so holes for a discovery hole). Remember, so far only NDIBK04 (400m) and hole 7 (1000m) have been assayed. That means majors will have to travel to Mt Isa to view our 8km of $10mill drill cores in the INCA shed... and word has it, they have been.
In short, we're a resilient explorer who's survived the test of time, with plenty of geo experience and much skin in the game. Altho it's a tough time for the company, SHs, SP, world and markets, we know that what's in the Mt Isa shed is attracting attention of majors. And although we have $5mill in the bank it's not enough for ET and our other stella OZ projects that are drill ready. Lastly, the needed cash probably won't be from another CR with attached options... because of all the above reasons!
Poet
#IoCG #JV
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