Hi Thanks for the tag. Not sure the context as 'good' and 'risk...

Hi Thanks for the tag.

Not sure the context as 'good' and 'risk verse reward' are often subjective.
However, if we assess results based on economic viability then my general rule of thumb for REO in Clays is;

-500-1000ppm+
-Thickness of hits the same or thicker than it is deep
-150-200mT resource size
-If all 3 of the above are true, needs to be ionic (Ph4 leach test and get 30-50%+ recoveries.)

So obviously there are a bunch of other factors, but these are probably the 4 key ones which at a high level will help one to gauge the likelihood of viability.

Of course, if you had 2000ppm or 3000ppm then it doesn't need to be as thick. If the recoveries are awesome then doesn't need to be as high grade etc etc. There's only a handful of published feasibility studies for ionic clays and you'll find that all 4 categories need to be true. Furthermore, at todays REO price, even deposits with all those 4 facets as true may still not be economic.

So let's have a look at the drill results here;

Maybe 4 of the holes look ok, the rest are too thin and deep.
To re-iterate this is only the case if the deposit is ionic, if it's not - then none of these will cut the mustard.



Is their upside? Sure - market seems to be loving this stuff at the moment and the company could be a good risk vs reward based on this project or others.

Do i think the deposit is likely to be economically viable - Based on current info/data - No.
To be viable you need the whole deposit to be over 1000ppm and be thicker than it is deep. This shows that the saprolitic/clay profile is quite variable and the REO grade along with it. This mean you are unlikely to have a large enough resource which will meet the criterion even if met tests shows the deposit as ionic.

Just my 2c - and only providing it because of being tagged.
Great ROI for those that held before today - for everyone invested i hope it keeps going.

SF2TH