BRB haven't commenced a DFS yet. They are still doing 'Resource...

BRB haven't commenced a DFS yet. They are still doing 'Resource Drilling Evaluation'. It is the Maiden Resource Estimate that has been delayed. Yes, Mr Market wasn't pleased with a delay in announcing the MRE and took the opportunity to sell the SP down. There were 2 main reasons why the MRE was delayed as far as I can see and IMHO.

1. The size of the main mineralised zone has grown and needed more infill drilling to be done.
2. The geometry was difficult to model and needed more infill drilling to be done in order to define the layout and profile of the various vertical and horizontal lodes so a competent person could be confident to sign off on the MRE. BRB has often referred to drill results as "floating in space" and that means more drilling to determine the geometry of various lodes and veins.

The recent high grade drill results were from inside the main mineralised zone and not outside like your post queries. There was some scout drilling recently announced that is outside the main mineralised zone to test for possible extensions. I don't see anything wrong with that as it is all about juggling current work with future planning. The length of strike is now up to 8km long and the width is still not determined accurately. BRB has already informed the market that Resource Drilling will need to continue for some time after the announcement of the MRE. BRB have also informed the market that the main mineralised zone is now about 2km along strike with options for both open pit and underground mining being considered.

I expect that the MRE will not model the whole 2km of the main ore body because that would require lots more drilling. There is also the question of depth extensions to consider as the drill results indicate many holes are open at depth. I expect that the MRE will be a big slice of that area though, but we are talking about a huge amount of dirt and rock that will equal huge tonnages in the end.

So at this stage it is anybody's guess about how large the MRE will be. It is true that Mr Market will sell down the SP if the MRE disappoints vis a vis any pent up expectations. I guess that is an additional factor justifying the delay of announcing the MRE by BRB....... they are aiming to do justice to this large discovery that could end up being a globally significant greenfields deposit...... in the fullness of time and in due course.

One needs to understand that a MRE only needs to have 'X' amount of Resource Drilling completed before being announced in accordance with the JORC 2012 rules. This is the Phase called 'Resource Evaluation' of the Exploration Stage.

The announcement of initial 'Ore Reserve Statement' requires the completion of a Feasibility Study. That is either a PFS at the minimum or a DFS as the ultimate level of confidence. That work culminates during the 'Economic Evaluation Phase' of the Exploration Stage. One also needs to be mindful that the 'Stages' of exploration are not lock step and the work from Prospecting Stage to EEV Stage over laps and parlays into each following stage. There are 4 stages during exploration....... Prospecting, Target Drilling, Resource Evaluation, Economic Evaluation.

The amount of ongoing drilling needed to complete Resource Evaluation and the follow on EEV will determine if and when another CR will be required. No doubt funds will be needed one way or the other, especially when EEV commences and most certainly if BRB decide to move into the 'Development Stage'. Selling equity by doing a CR is not the only way to raise funds. There is debt funding and/or selling assets or portions of assets (JVs) that are options for fund raising. Debt funding for junior explorers is a rare occurrence and seldom do financiers back these juniors with such facilities. Plus debt funding when having no income producing assets is a slippery slope to insolvency.

So, there is still plenty more work to do yet before the true potential of this discovery is realised. One needs to be mindful that most 'major' discoveries and certainly globally significant discoveries do not get developed by junior mining companies...... they get taken over or bought out. At best the junior might stay involved as a JV partner, but even that is rare. Watch this space over the next 12 months.

Cheers