Ann: Quarterly Activities Report - June 2021, page-2

Note - most Ni stocks up today especially PAN IGO after NP hit 9.00 overnight.

Some big differences in the QR.

PH said "The next six months look incredibly exciting for the Company as we look to deliver the maiden Golden Swan resource, continue drill testing the very prospective Southern Terrace and move towards an FID on our high grade nickel inventory at Black Swan.”


"The Company has engaged NewExco to undertake an exploration target review of the project. Substantial progress was made on this report over the quarter with findings to be received during the next quarter. Following receipt of NewExco’s report, the Company will continue to explore a range of strategic options for the Lake Johnston asset including ... updated restart studies and recommencing exploration... The remaining expenditure [$3.2M] includes support services for works being undertaken at Black Swan, care and maintenance costs at Lake Johnston and Windarra and corporate costs"

Summary -
Cash as expected $8M & rehash of prior stuff.
$100k for the BS restart study no. 2 now going.
Q1 cash spend increased to $6.5M
mention of ST & SS drilling with SS starting August ie next week
mentioned LJ drill target review substantially progressed by Newexco
Thats a heck of a lot of drilling, you could do 2 x DDs with that.

Analysis -
They have increased the drilling budget from $2M to $3.2M & tripled the "support service" budget so  another spending allocation confirmed for the secret restart around $2.5M.
Another review of LJ drill targets so looks like more LJ drilling around high grade AR coming up.

Now that the scoping study has confirmed the 2014 DFS results, way lower capex & faster than thought then BS mill restart is looking like progressing faster & cheaper.
The 2014 DFS clearly stated $230M capex savings on BS mill restart so now looks more like a $400M capex saving.

Why spend $800M in Canada on this rather than $32M in Kalgoorlie for double the size & double the grades & in a quarter of the time? Nuts. Give it to BHP.

Why double up drilling, triple support service budgets & get geos to target LJ drills if they are not going ahead with :-
- BS mill restart circuits 1 & 2 (secret restart)
- LJ AR drilling expansion
- keeping LJ
- SS ST drill expansions

Thats a massive budget for drilling, support services & new programmes for SS ST & LJ drilling.
What do you need $3.2M for BS support services for? Restart works imho.

Bullish report.