ALK (ASX) Ann: Kaiser Resource Drilling Includes High Grades Near Surface

Originally posted by Antipater_100: ↑

great stuff. I would like to add the below as compliment to your excellent post.

I argue for ALK to do both. Keep drilling Boda/Kaiser along with rest of NMPP and talk to JV suitors and keep drilling outside NMPP. Such approach should have been in place for years.
And I never proposed to spend big on other projects outside Boda/Kaiser and TGO while the former was being drilled for MRE and later is going through expansion. ALK should have spend around $2m per year over the last 3 years on Driell, Murga, Allendale and Rockley - for example. Yes, ALK would have had $6m less cash now but still would have been considered to hold healthy amount of cash. At same time, with some luck, could have been on the brink of another discovery.

Regarding NMPP, will be hard for ALK to do it solo for many reasons. We are looking at around $1.5b investment. And if something goes wrong, ALK will not have the cash to dig themselves out of the hole.
When things go wrong with such projects then we are looking at few hundred million $ at best or billion plus project blowout at worst - meaning it will be the end of ALK. Best to give it to a major to develop while ALK to carry 20% free stake and share of profit. Majors can also press Govs for faster approvals.

Regarding BoDs and the MD buying ALK shares - I don't claim it will push the SP higher but it will send message of confidence. The perception is different when an analyst reads ALK's statements and all they see is the chairman sells but no insiders buy.

Right now perception is ALK is a man with no plan and is reactive rather than proactive - chasing its tail. When building exploration pipeline takes time. Lot needs to happen before getting to the drilling stage - proper drilling rather than preliminary drilling like now.
At the start of the drilling one will only drill very few holes to test the hypothesis before deciding how to proceed - problem is ALK is at this stage with anything outside Boda/Kasier and TGO. If lucky they hit something with the first holes. Otherwise, it normally takes few drilling campaigns before narrowing down to the real target - if there is such.
One only needs to look at Boda/Kaiser for example - ALK drilling from around 2014. It took few explorers and more than few holes to narrow it down. ALK did not find Boda with their first couple of holes. They drilled number RC and few DD holes while studying lot of RIO holes. Then they drilled one diamond hole at Boda which did not return much excitement but did show enough promise.
Then they tried a zone between two RC holes they drilled back in 2016 (I think) with DD003 followed by 005 and rest is history. Took few years to get there.
The sequence of events may not be 100% correct but the point is one does not make discovery with the first 3 holes. Yes, can happen but when it does it is 90% luck and 10% science.

ALK now has better understanding of the faults, geology, what rocks to chase, etc.. which can help in selecting where to drill. But the further away they go from Boda the less the chance they will encounter similar settings - meaning, it will require some original thinking as chances are the new deposit (if present at all) will have unique features.
Even at Boda ALK are still learning new things - otherwise they would have discovered the causative intrusion 50-60 holes earlier. If anyone only bothers to check they can see there were few holes that were directed towards this zone but were stopped short by ALK - please don't tell me ALK did not want to make this discovery 12 months earlier so they stopped the holes short on purpose - I get the feel some will argue that just for the sake of arguing. lol

Expand

I must say this thread has some excellent thought-provoking information.
Thankyou to all contributing posters.

@Antipater_100 have you contacted the company at all about the upcoming Roswell mineral resource upgrade?
I asked Nic about the delay on LinkedIn over the weekend but yet to receive a reply.
The results were expected to be released to market late January.
Here we sit almost mid Feb and still no news.

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Last 55.8¢		Change 0.018(3.24%)		Mkt cap ! $334.9M

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56.0¢	56.5¢	55.3¢	$734.8K	1.315M

Ann: Kaiser Resource Drilling Includes High Grades Near Surface, page-16

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