This CHZ quarterly is very well presented. There's a clear recap on drilling results and many new details. I will quickly share some of highlights:
1. The more I look at it, the more I really wonder how people are disappointed with the drill results, particularly in phase 3. I don't think I need to share anything specific here, because it's all presented right from the beginning. Just look at the 1st page, and then pages 4-8. You should start to realize Area A is a very exciting target that is begging for further step-outs, especially towards Barrick's Bambadji project, adjacent to the east.
2. I really like the maps on page 10 and 11. Read these for details. I'll highlight the map that includes key neighbors:
This shows how Chesser's Diamba Sud project is literally in the middle of an exciting, emerging region. CHZ, Barrick/Iamgold, and Iamgold/Oriole should all be drilling simultaneously over the next few months. A lot of people still don't realize Senegal will potentially become the hottest place in West Africa. I think they will start to realize this over the next year or two. A more positive perspective on Senegal will provide a further boost for CHZ.
3. A really important section on "cost reduction initiatives" on pages 13-14:
I applaud the company for taking action here. This is very significant savings (approximately $100k AUD/quarter), and perhaps more important than just direct insider buying in this environment. Helps maximize dollars going into the ground.
4. The next phase of drilling is what this is all about. Also from page 13:
While I would love for an even larger program, 4000+ meters of RC drilling is plenty, and would be great to complete prior to the rainy season. Importantly, there are multiple targets: Area A a #1 priority, but Area D a very good #2, and the Western Splay a potential "wild card" as a 3rd area, untested as of now. That's a great mix.
Discoveries are being rewarded even more on the ASX than the TSXV in Canada. This is a great environment for CHZ to build on an exciting discovery, perhaps with even better intersections. We just need CHZ to start drilling. I am guessing 1-2 weeks from now. Holding for the last few months has been a rollercoaster, with some agony to boot! But the coming months should be an exciting time to hold shares.
Cheers,
MBG
CHZ Price at posting:
6.3¢ Sentiment: Buy Disclosure: Held
