ALK (ASX) Ann: NMPP Regional Exploration Update

Originally posted by speculator101: ↑

Cheers for your thoughts Anti.
If I can hazard a guess regarding why instotutions are not knocking on ALKs door... it's their production profile and... a small part to do with management (warranted or not). As I look at OBM and the incredible share price appreciation since the current MD stepped in.

As for the mine plan, very detailed project, I am just keeping it simple. ALK seem to make extremely good money mining U/G, they have a good team that actually mine, so... while the open pits are likely also profitable, the large upfront capex, negates much of that. If they can extend Roswell.... then I really struggle to see why they would contemplate the highway diversion etc (until the U/G ore runs out anyway).

Here's hoping you are right about Driell and Boda 4.

@Joelstar - that Crux interview annoys me a little, I would have preferred Nic to 100% own the fact that ALK is going to miss it's first guidance in many many years. Clearly more redundancy should have been built in to ensure either stockpiles, or more fronts were open/available at the older U/G mines to take up any slack for underperformance elsewhere in the business.

A question which probably will go unanswered, is... if the capex for the highway is $100m+, where could that capital go instead to produce similar results?
Drill out all the known deposits around Tommi for extensions? Purchase nearby stranded deposits and truck (hub and spoke).

Though I cannot deny, it's quite an impressive undertaking if it does go ahead.

Perhaps my highlighted sentence supports my view on the open pits... ALK have time, lots of it, before the permitting expires.

Could ALK look again at Peak Hill... the grades are higher than Roswell.... It's only 10km to the south.

Just some musings to pass the time and NOT think about the paper market moves in POG

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IC hinted at another look at Peak Hill in the past as there are lot of advances in metallurgy tech which brings costs down when treating refractory ores.

Also, deeper Peak Hill orebodies may not be refractory. There is potential for Peak Hill to host porphyry deposit too. But it needs to be tested.

I did spend some time to review the report again and it seems Driell will attract lot of focus - along with Boda 4 and Boda2/3 to some extend.
ALK recent RC holes there defined the zone of focus and it looks to me DRC02/03 marked the boundary of the prospect. Same with DRC005/06/07 which also seem to be indicating moving away from the target.
One the other side DRC010 showing some signs of getting closer to potentially higher grades. The distance between 007 and 010 is about 1km or bit over. And this is the area ALK will probably target with deeper holes. It appears the mineralisation is trending on the northeast side of Stoney Fault (DRC007/004/010 showing that) so ALK will stick with targeting that side of the S Fault.
Regarding the Lithocap, ALK's previous holes look to be too shallow as from what I have seen from other explorers Lithocaps need to be drilled deeper for search for feeder zones that can be very high grades.
Normally porphyries appear further away from the Lithocap (not always though) while the Lithocap can contain epithermal deposits with very high grades. There are many examples from South America and some from Indonesia and Philippines.

If ALK does decide to test the Lithocap for such deposit while still searching for nearby porphyry, and if ALK gets lucky and find one very high grade orebody then this will be that catalyst that will attract many majors to the NMPP as such discovery will not only mean even longer LOM but will also mean very short payback period.
In blue what I think ALK will be focusing on at Driell.