USL (ASX) Ann: Acquisition of Sierra Blanca project

Originally posted by binwood: ↑

While some might consider this a bit of a nothing announcement (and its somewhat muted by how long it took to get done) I think this is a good move.

Consolidates the whole vein field at Pinguino adding an extra 25km of vein strike and giving us a larger land package for placement of eventual infra.

Some nice previous hits and 18,000m of previous drilling done. We will likely have to do some relogging and maybe poke some holes in but it will add to MRE.

Now that our share price has finally moved IMO it should be considered like this. We are currently trading at ~$50m EV for 92Moz of AuEq. That is 54c an ounce. That means that rounding up and the fact we might have to drill a few holes 3-5Moz in this new land package makes this an accretive acquisition (based on $750k of scrip + maybe some drill expenses)

If you look at this long section, the red/pink areas are the obvious areas of interest.

The section in the Charla vein is about 200m long and 75m deep and lets call it at worst an average drill intersection of 1000 gm (we'll call it 200g/t x 5m thickness). That would give us 200 x 75 x 5 x 2.5 (specific gravity) = 187,500t and grade at c. 6/oz per tonne. That gives us 1.125Moz.

Using similar logic maybe 100-200koz at Chala and 1.5-2Moz at Achen + the wider spread low grade stuff. I think just off previous drilling there is probably enough to cover cost of acquisition and some future drilling.

The rest of the ground is all upside.

Expand

Morning all.
@binwood
Great overview of this transaction mate.
Just wanted to add a couple of points.
After watching some exploration in the Lachlan Fold Belt, namely LGM,
The importance of preservation in the geology is important.

With my limited understanding of what is inside that Red Circle is Sinter.
It is usually found just sitting atop of a preserved Epithermal system as it is in Hishikari for anyone that wants to google it.
Lgm have it in all their projects but that's for the LGM thread.
It can be exciting in the search for these systems but spells how close the goods may be.

We already know from these historic drill results that we have just that, A HG Epithernal Vein deposit.
We may not understand what this means for drill success and what grades we may find.
I think these historical intersections are spelling it out for us.
Not only that but these veins have a much higher Gold and Silver only mixture which is more valuable than the previous drilling in our project area imho.

The age of these drill holes also suggests that if there was a resource calculation done here,
It is pre 2012 so there is a lot that would need to be repeated to use it to recalculate the resource.
To me that spells, our up coming drilling is very high certainty of hitting the goods and multiplying the resource rapidly.

This pic is from AGD and explains their conviction to hold it.
At this point, I think it warrants a congrats to Todd for negotiating this acquisition without leaving us in any need of a CR.
Matter of fact, we now have the bucks for drilling so get ready to ** hold of your hat.

For anyone not understand ing the geological descriptions of the pic above, here is a screen shot that may help.

Everyone now knows that silver has broken out but when the price hits above $50US, that real game begins and let's hope we are drilling or very close to it by then.

Excuse my enthusiasm and dyor.

Kind regards, Wack.