Some of the comments about today's results are off-target, perhaps deliberately so. In particular, the term "skinny", has been used to describe the 9.6 m vein of copper sulfide. This deposit has been classified as supergene with possibly the highest grades of copper in Australia. So what does that mean? I'll try to explain, and hopefully longterm investors in CCZ can see through the negativity. When a large underground body of igneous rock (liquid) cools, the pressure is likely to squeeze the liquids into cracks and weaknesses. Much later as erosion starts to remove layers, the sulfides in the deposits change to sulfuric acid and start to dissolved metals such as copper. Now as a solution, the copper ions trickle back down through the rocks and accumulate at a higher concentration - this is a supergene deposit like that at Cangai. The team at CCZ are hitting these veins of rich supergene deposits in the altered brecciated tuff (ie old volcanic rock that has undergone changes). The line of lode (Fig A3) appears to be a weakened area which has allowed for the deposit to develop. However, there could be other lodes which are separate to that outcrop and these lodes could be under soil cover, so the aero-magnetic survey will attempt to pinpoint likely targets. If we are lucky there will be other copper deposits. If it similar to other types of discoveries, the copper grades will eventually decrease as they drill deeper (ie they go beyond the supergene deposit). However they may discover a stockwork of veins and the size of the orginal source of the deposit will be larger at depth. It then depends on how big the deposit is at depth and its grade, which can only be determined by using geophysics to detect targets and then drilling to confirm. CCZ and its neighbour CZN have only scratched the surface. If these companies were substantial, they would be able to throw heaps of money and get the answers in a year or so. But we have to be realistic, these companies are small caps which are surviving on a year-to-year basis, and they depend on regular cap raisings until they start selling product. So, in one sense we are in a lucky spot. We can buy cheap shares or the SPP at 2c, before the real big discoveries are made (if we are lucky). Getting back to the thickness of the lodes and the copper levels. I was hoping that an announcement like this would have come out before we get the details of the offer. It confirms that it is a very rich deposit. Still some questions to be answered amigos, but its better than a poke in the eye with a blunt stick.
CCZ Price at posting:
1.8¢ Sentiment: Buy Disclosure: Held
