Ann: Ridgeline Continues to Deliver Stong Nickel Mineralisation, page-38

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Basumal

700 Posts.

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02/11/22

15:22

Post #: 64548305
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Originally posted by RoyE: ↑

IMO the drill results today were quite strong - combined Ni plus Cu of 1.5%+ is quite good. The depth may be a bit of an issue, I'm not a geo so its hard to make an informed judgement.
For me the jury is still out on this one. There are numerous real positives:

- building a significant inventory of Ni and Cu
- excellent region to be drilling, Australia, low sovereign risk, permitting should be no problem
- recent metallurgical work shows very good Ni and Cu recoveries to concentrate
- strong management (AR) who know about exploration
- possible upside from Lithium
- outlook for Ni and Cu demand is very strong in the medium and longer term
- there are likely to be as yet unidentified deposit/s in the area which would add further critical mass to a 'hub and spoke' strategy

Then on the downside:

- part of the resource is deeper (not open pittable) - given the grades is this portion of the resource economic to mine?
- significant cost (and therefore potential dilution) of drilling and then possibly PFS, DFS etc to progress to a decision to mine
- not sure of the infrastructure requirements

So, in summary there is a lot to like on this one. Maybe some geos/mining engineers etc could add some commentary re economics of the deposits.

GLTA & DYOR

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How much Ni inventory is Ridgeline actually going to add though? We will know soon enough with the resource but at this stage it just looks very small and deep. Will add incrementally to the project endowment but won't change the overall economics. At these grades, one of those other prospects needs to come in at a shallower depth.

Bas.

AZS Price at posting: 26.0¢ Sentiment: Hold Disclosure: Not Held
3 Upvote

1 Great analysis

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