Markets often overreact on the up and down sides. Had a feeling DN6 and DN21 were not mineralised - ie they would have drilled more lines across it, announced it already, also there were no mineralized rockchips at surface as per Cade.
Cade and Davy is where the Value is here and with more studies & drilling to add more value. The recent shallow drilling on these pegs Imo will be mineralized - lets wait and see what assays to come back.
Its just what I wanted to hear from management. Scoping level studies, approvals and concurrent drilling programs with focus on
1. Diamond Drilling increasing the confidence level of the current resource (inferred to indicated) for development purpose to progress to a reserves to progress to mining. 2. Exploration on the South of our Permit to drill all those anomalies identified in earlier announcements to possibly add to Resource.
Drilling programs this Dec quarter so they are not wasting time.
IMO the resource is economic - Management probably know it, the scoping studies will spell it out. We can add resource any time to Davy and Cade by drilling deeper.
Eventually I see them designing an open cut to a level where it becomes sub economic and then mine underground to avoid high strip ratios.
Right now Spodumene supply is tight (and spot prices though the roof) - a couple years time the supply gap (according to all expert analysts) widens considerably for a very long time and ESS will be primed to mine.
ESS Price at posting:
17.0¢ Sentiment: Buy Disclosure: Held
