The early Arrow minerals holes and subsequent initial Red Dirt (Delta) holes indicated that grades were highly variable and tended to increase at depth. Given the huge swarms of pegmatites that Voltaic found in those first areas, all one could do to truly test them was to drill. And they only did around 5000m of shallow exploration RC holes - that is nothing in the scheme of things. 5,000m is a rounding error for some company programs. If they didn't drill, then the market would be equally complaining! They did all of their geochemical homework with respect to the rulebook for lithium targeting - elemental ratios, fractionation, etc.
Those with experience understand that pegmatite exploration is vastly different to base metals. There are so many punters who dabble in early stage exploration speculation expecting the lottery ticket to come good when they don't understand much of anything with regard to how the science of exploration works. Its like those who buy lottery tickets with no clue about probability theory or statistical maths and get angry when their magic numbers don't show up!.
With the cash in the bank, VSR is already miles ahead of most early explorers out there and should have a great 2024 when liquidity comes back into the speculative stocks. It appears that the US Fed will likely have to start cutting rates at some point in 2024 due to the parabolic increase in interest expense from the recent rate hikes, not to mention the off balance sheet liabilities like Medicaid, Social security, college debts, pensions and hidden war funding (which is ever increasing)... If stagflation is truly at play when that happens then hopefully a huge tap of capital will flow into commodities, and hence, some back into the speculative explorers.
My Fund Manager likes VSR, mainly due to the credibility of Walsh the CEO, his skin in the game and the no-nonsense way he comes across compared to many of the other peers in the market. They have a large package of ground across WA, cash in the bank and a very solid management. All we need now is the animal spirits to come back into the market when they start delivering their next round of results. Hopefully they time this with some thought in mind. Granted, the froth has truly been removed from the battery metals and REE thematics. However, that is the inherent boom-bust nature of this game...
The beauty (or curse) of this industry is its cyclicality, and most of us can never time or predict it. I have trimmed most of my exploration stocks from my portfolio in the last 6 months and retain VSR as the most promising for multibagging based on the performance of the last run up.... good luck to all fellow genuine long holders. Now, back to my Gin and Tonic.
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