Yes, it's all about Grants at the moment. If we discover any decent holes elsewhere with phase 2, that's a bonus.
Focusing on Grants, the approximate maximum dimensions so far (from 30/01 announcement using the 50m scale - note they appear to have put an incorrect 100m scale in the phase 1 on 20/10) are:
250m length x 30m width (true) x 97m depth (47m - 144m true using 55 degree angles of FRC018 from 58m & FRC036 to 176m) = 727,500 m3
With more results imminent, the following additional maximum extensions could occur:
Length extension of 60m south with FRC076
Depth extension of 58m (true) with FRCD005 (to 247m)
If these are decent extensions, then Grants would have an updated maximum of:
310m length x 30m width (true) x 155m depth (true) = 1,441,500m3 (or 98% increase)
Okay, so this is best case scenario above. Obviously, width, depth and grade will vary along the strike length to reduce the size of the deposit. From the announcements, it appears that the intersections start to reduce in width and grade at the current southern and northern boundaries; however, FRC040 (north) and FRC076 (south) will help define these limits a bit more. Depth looks more promising and there are plenty of assays (including diamond drilling) awaiting these extensions (FRCD005, FRC039, FRC041, FRC043, FRC044). Once again, we would rather have shallower length and width extensions, than depth extensions. Grade will be important so we would hope for high grade intersections at depth. Once you remove the overburden (any ideas?), a continuous high grade ore body is what we are after.
After all this, it really comes down to one thing: metallurgy. Anyone following KDR would know how quickly you can get slapped down with poorly received lab results. Whether a DSO operation at Grants is possible given the ore body size will be irrelevant with poor metallurgy results. We are also receiving metallurgy from BP33 (which the company states appears different than Grants) so I'm not sure how much the pegmatite composition varies across a region such as Bynoe (any thoughts?). Great results would only be beneficial for where we are heading as a company.
My view is that Grants has already turned out to be a major find in the fact they could use it to:
- Raise $10m at 9c
- Gain credibility with their additional actions to date, along with trust in management through regular announcements
- Create attention for the company and Bynoe region (with LTR, KSN and MOX all planning activity)
- Conduct metallurgy work
- Engage specialists in the field
- Consider the financials for what represents an economic deposit in the area
- Possible DSO for additional funding
- Justify further investment in exploration, drilling and nearby tenement packages
We just closed above 9c for the first time since the SPP shares were issued, with high volume being traded this week and plenty of news to come.
Metallurgy results will be the key news I will be awaiting and hoping that this sets up the Grants deposit for possible DSO whilst Zola and Ringwood are being drilled (where good results could trigger the possible next re-rate for the company).
Keep it up CXO.
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