Ann: Lake Roe Gold Project Mineral Resource Update, page-112

Hi @Countrywriter,
Apologies for my tardy response (I did start last week but got side-tracked with some research whilst looking at Capricorn … Director connected) and also for my ambiguous comment regarding the GL1 shares that BRB hold but are the subject of escrow. I am aware that they will stay there until the end of March at least.

I indeed had a good holiday, venturing to north Queensland. Plenty of cooking, some mango picking and mud crabbing, which you would appreciate, was fun for me! I hope you are well on the road to recovery and that 2022 is a much better year for you.



I had a good look at CMM. The main difference between CMM and BRB is that the former acquired a project whilst the latter made a greenfields discovery.

Capricorn Metals Ltd (previously Malagasy Minerals Ltd) acquired the Karlawinda Gold Prospect, which included the Bibra deposit, from an unlisted company called Greenmount Resources Pty Ltd. Bibra had a JORC 2012 compliant inferred resource of 18mt @ 1.1g/t for 650,800 Oz Au with a cut-off grade of 0.5g/t which was initially established by ASX:IGO in 2013. The project is located 65kms south of Newman in the Pilbara.

The announcement of the deal came on 26/10/2015 and required shareholder approval, as Capricorn (CMM) was to issue almost 172m shares to Greenmount in payment for the acquisition, an amount that represented the entire share float of CMM. At that time, Capricorn also spun out their graphite projects via an in-specie distribution to shareholders.

Once the deal was approved, two Greenmount Directors joined the CMM board (notably Heath Hellewell whom I’ve come across many times, most recently CXO, DKM and more recently DCX amongst others) and Peter Thompson. Shortly afterwards, Neville Bergin was appointed project manager of the Karlawinda Gold Project.

I looked at the capital raisings as you mentioned them:

Capital Raisings

	Column 1	Column 2	Column 3
0	Date​	Amount​	Notes​
1	08/12/2015	$1.5m @ 3.3cps	Discount ~8% Regis Resources buying >38m shares (9.9%)
2	29/04/2016	$12.6m @ 13cps	Discount ~10% to 5 day VWAP
3	06/02/2017	$10m @ 11cps	DFS on track for mid 2017 (Was released 23/10/2017 – 21Mt @ 1.06 for 713Moz)
4	30/11/2017	~$9.14m @ 5.2cps	Placement and SPP ~10% discount to 5 day VWAP
5	04/02/2019	$3m @ 6.3cps	SPP
6	04/04/2019	$10.1m @ 6.5cps	Equity raise
7	03/06/2019	~$18m @ 6.5cps
8	13/08/2019	$65m @ 16cps	Cash in bank now ~$90m
9	Dec 2019	Reconstruction of capital	1:5 basis. ~1.6b shares becomes ~324m
10	29/07/2020	$32.3m @ $1.90 per share

I also see that Heath Hellewell looked at selling his CMM holding to Regis Resources back in 2018 but another substantial holder signalled they would not support the buy-out attempt.



I have mixed feelings about the Manna sale.
Initially I was very happy as it delayed a CR (which everyone knew was coming) but, further payments are tied to milestones and we can’t count on the next $23m being in the bag just yet.
I also missed my buy order for GL1 to maintain some additional exposure.



GL1 has doubled in SP since the ann, whilst BRB has dropped from 29.5cps, from 30.5cps since the on-time resource update and from 41.5cps since late November. I note the comments made by another poster here regarding other gold companies who have done (and experienced) the same sp reaction. I understand the focus on gold alone but if we get good results at Ullaring. will we flog that off also? (Too soon to know).

Basically, the market is not buying or liking the BRB story. Why is that? Is there more behind the sp action than meets the eye? Certainly, closes in the CSPA based on the sale of 45 shares may suggest that. But the constant drilling with no known map forward allows this. There is time to play these stupid games as there is no urgency to commit to your holdings.

Someone mentioned progressing a PFS (or DFS) in the thread above. The PFS was well advanced back in 2018 so one would imagine completing it would only need to include subsequent results and tying up loose ends.

I don’t think the Lassonde curve is really relevant to BRB as we are still in the exploration stage and speculators have long since exited the market, over many years and several times!



Maybe this has something in it for us?
https://www.visualcapitalist.com/visualizing-the-life-cycle-of-a-mineral-discovery/


After nine years (and I’m not going anywhere soon) I just want action that doesn’t move in geological timeframes! 2022, Peter and further promises of upgrades and drilling results will provide this. I long for the day that BRB actually realises its potential and the sp runs to $3 (with or without at RE). Maybe we can start digging up dirt from around BBRC0142 and start an income stream?

Anyway, good luck long timers, we deserve it!
I believe we are seriously undervalued at these prices but the market seems not to agree.
Perdy