There are two problems with this ASX release. First, as you...

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acceler8

90 Posts.

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18/07/23

14:41

Post #: 68845604
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Originally posted by 2ic: ↑

Who buys this sort of release up 40% on a completely predictable and meaningless MRE... charities or some old rich dude giving away his fortune? Drilling results there to see and the project area is literally regional in scale, and more of the same from other explorers in the region (albeit maybe thicker and higher grade than most). Surely people understood the number would be big, how big depending on how far the resource geo extrapolated each hole's influence. Look at the resource wireframes, strips of clays running along very sparsely drilled roads... just imagine how many tonnes by the time they start drilling across paddocks and join it all up Going to be HUGE, so BUY right.

Wrong. Those previous absurdly strong acid leach results (25g HCl/L pH=0.16, 100g HCl/L pH= -0.44) are worthless, and until they can demonstrate at least fair and clean recoveries at weak acid (pH2 or higher) with low contaminants and low acid consumption OD6 is likely to back to zero and vend into the next good thing project. Hint... ANSTO know what they are about, especially this Esperance region, and reported leach results were not conducted and released as some wild random first pass effort imo.

GLTAH

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There are two problems with this ASX release. First, as you point out, they are consuming acid which indicates it is not a true ionic clay (but unclear what it actually is). Acid is expensive to produce or buy, and then the acid will consume the host material which increases subsequent processing complexity and therefore cost. Second, the overburden is significant and will add materially to mining costs compared to similar projects in Brazil which are mineralised from surface. Conclusion ===> nothing today suggests bottom quartile costs

Last edited by acceler8: 18/07/23

OD6 Price at posting: 24.0¢ Sentiment: Sell Disclosure: Not Held
4 Upvote

0 Great analysis

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