After 3 days with only a few hours of power each day due to the cyclone triggering power grid issues in western Fiji we finally have power back again.
Todays announcementThe result today is exactly what was expected. I would like to have seen a bit more of a breakdown of the results as I have a hunch there is a high grade copper sulphide breccia zone (as shown in the photos of NLDD042) that can be matched to that in
NLRC017 which had
[email protected]% Cu including
[email protected]% Cu but also included
[email protected]% Cu and 1.2g/t Au, exactly the same grade as the
[email protected]% Cu and 1.2 g/t Au in NLDD044 (within the
[email protected]% Cu and 0.5g/t Au). I will try to draw and post a long section of this if the power holds out for a couple of days.
Capital raiseI would not be going for a capital raise until I had drill another line of holes further SW into the copper sulphide zone from NLDD044 and into the main part of the IP anomaly. I see that CNB have planned to drill a hole either side of NLDD044 on the same section line and another hole to complete the section line of 3 holes of which NLDD042 is the central hole. CNB has more than enough cash to conduct the detailed IP survey and drill quite a few more holes. If the line of holes SW down plunge of NLDD044 hits the spectacular grade copper sulphide lode, and based on the IP anomaly we think the thickness might increase in this direction, then the share price stands a good chance of being higher than today. Why raise now when you don't need to and you are fairly confident the next holes will confirm your discovery as a major discovery?
Selling sharesThe grade and thickness of copper-gold at NilDesperandum is certainly looking economic. Really high grade shoots will be important to the overall economics and will probably make the difference between a good mine and a very profitable mine. There has been high grade zones in most drill holes and the copper sulphide lode in NLDD044 is spectacular. This lode is also open and could be of considerable size, the IP anomaly supports this. How can we know what is a fair price for the shares when we think there will be much more of the 4-11% copper located very soon. We just don't know how big this will get. CNB keep saying major discovery and significant IOCG deposit. Once we know the limits to the deposit we can make an estimate of the fair value of the shares. If this really is a major IOCG discovery then the shares will seem cheap at the current prices.
Magna Lynn @thetestytrader The Magna Lynn Metabasalt sits at the base of the Argylla Formation and the younger Corella Formation. We know that Tick Hill is probably located on the contact zone between the Argylla and Corella Formations with small lenses of Amphibolite and Quartzite (Ballara Quartzite?) in the ore sequence. It appears that the calcsilicate rocks of the corella formation are important to mineralisation. My guess is that the drilling at Nil Desperandum has suggested that the Magna Lynn Metabasalt may form some sort of footwall to the deposit and that the contact zone is the locus of the mineralisation or the mineralising fluid pathway. The wording of the announcement is not intended to give much away and certainly does not explain how the Magna Lynn Metabasalt is important to the IOCG at Nil Desperandum. Perhaps CNB have found some other reasons to pursue the rock unit. CNB are talking about favourable structural corridors for IOCG deposits, not something I have heard of before but makes perfect sense as the mineralising fluids need pathways and perhaps related to lithology as well. DYOR and take responsibility for your own investment decisions.
(20min delay)