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Ann: Exploration Strategy Overview - Olympic Domain Tenements, page-247

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hamilan911

188 Posts.

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25/09/22

18:25

Post #: 63868510
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Originally posted by Ignatz01: ↑

Haven't posted in a while but thought it would be worthwhile adding some insight. A lot of comments regarding lack of activity but as someone who consulted to Olympic Dam Operations (ODO) and worked in IOCG environments for some years (have 30 IOCG technical papers on my desk currently) you cannot underestimate the complexity of IOCG deposits. If I remember rightly, there has been somewhere north of 3 million metres of drilling at ODO and BHP employ some of the best IOCG experts in the world (Kathy Ehrig and Jesse Clark for example) and CHK have engaged Ken Cross (a superb IOCG subject matter expert) - and even then the experts don't all agree.

Mineralogy, petrology, whole rock geochemistry, alteration studies, age dating are not just nice academic pursuits; they are critical components to understanding IOCG systems and equally critical for good exploration planning. One drill hole can cost $400 K so it appears entirely logical to do this critical work to inform future drilling. Comments regarding core having been logged once and why do it again are ignorant. At the drill rig no one can possibly log core to the degree of detail needed to understand what is happening and in highly altered environments (such as these) many rock types can be masked by alteration features to the extent that it is hard to determine where you are in the stratigraphic sequence - this is why some holes can even pull up short - because it is extremely difficult to discern without significant detailed follow up studies where you are in the stratigraphic sequence. Good to keep that in mind.

As to the approval processes there is a lot of speculation about how long the process takes but I can certainly say that organising heritage surveys is entirely dependent on the Kokatha and they are currently stretched to capacity. This is entirely out of any company's control.

Having written EPEPR documents in SA and equivalents interstate I am sure most posters here would have no idea how complex they are and how heavily they are scrutinised by the respective State Government department prior to approval and that back and forth process can take many months in an of itself.

In relation to drill rig access I can inform based on a project I am undertaking interstate that drill rates have gone up across the board due to the lack of available drillers because most drilling companies are now operating 24/7. This means that access to rigs and drillers is at an all time premium and I would think it wise to do good planning as the unit cost per metre has also increased. The fact that CHK are awaiting a drill rig from interstate (as one poster mentioned essential services permits) is a strong indication of lack of rig availability despite so many drilling companies being in SA currently. An juniors do not get priority status when you have companies like BHP and OZ Minerals actively exploring n the same region.

An finally, and then I will finish my rant, information flow to the shareholders is heavily monitored by the ASX (as it should be) and there are some things that do not get released to the market - pure and simple - has happened to me on many occasions. Questions regarding what management are doing are always interesting because shareholders do not want to hear abut the day to day grind but this work in any junior company is critical to the proper functioning of the organisation but shareholders just want the big announcements and are not interested in the day to day which is what keeps the company functioning. Just the amount of governance and report writing in a junior listed company is huge but that doesn't excite shareholders but is vitally important. If you haven't been in that position can I advocate taking a more balanced viewpoint.

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I would encourage all shareholders, both patient and impatient, to read the insights shared by Ignatz01 in this thread.
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