Ann: Assay results confirm extensive mineralisation at Cangai, page-64

The market cap is starting to look ridiculously cheap now particularly in relation to recent assays from 9 drill-holes confirming an extensive mineralisation system @Cangai Copper Mine which extended beyond the existing Jorc parameters . Significant sulphide mineralisation was intersected throughout the whole drilling campaign and when this is blended with the legacy high grade Supergene ore IMO it will significantly increase the existing Jorc of 3.2Mt @3.35% Copper which is already one of the highest grades in Australia . Another 9 assays results are imminent to wind up the first round a very successful drilling campaign which are expected to deliver sulphide mineralisation and be in line with the first assays . So Ccz geology team has every reason to be delighted as their objective of targeting sulphide mineralisation to materially increase the current resource size was accomplished .
As the current phase of the drilling program has focused on sulphides, the next round is focused on shallower supergene ore near the historic workings, which should further underpin expanding the overall resource.
IMO the historic stockpiles have serious potential to supply the company with early cashflow to help future Capex and I’m sure management would be focusing closely on this . A third party processor could become involved and take a percentage of the profits which would be expedient.
As the price of Cobalt rockets to new highs CCzs Broken Hill Project which neighbours COB really is an ace up the sleeve and this alone has the potential to drive the current 23mill market cap up many multiples particularly as the geology team uncovered more extensive cobalt mineralisation at surface then previously envisaged. In addition, a review of updated geophysical imagery highlighted new aeromagnetic anomalies trending south-west across the Broken Hill tenure that have not been tested – this is a priority target for incremental exploration in 2018.
I’m expecting MC rerates as the Cangai Copper Mine project derisks and further developments on Broken Hill Cobalt unfold . Gltah