Very positive announcement. Basically restated that they had to do more drilling in order to move up the JORC categories to be able to finish PFS, which in turn they can go to market with. In the process, they met the objective of confirming the scale of the resource in the area drilled, and hit some higher grade, though thin 0.06% + areas. However the areas over 0.04% are thick, and pretty close to surface which is what will make this attractive to third parties.
Fact is the world markets are in a horrible place right now, and too many potential negative flashpoints, so enticing partners into this will be a big ask. Danger is it will be lowballed, and the last round of finance was very unpallatable. The resource is a monster, and unfortunately I see the only realistic and likely candidate being China, and the Company will get screwed on any deal. Unless the Swedes themselves get involved as they are keen on renewables, and that would, IMO, be a better option.
Will be interesting to see how this unfolds. Company has at least 2 cracking assets, but timing is everything.
AEE Price at posting:
1.0¢ Sentiment: Hold Disclosure: Held
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