So, lab assay confirmation of the HandXRF readings that set the...

So, lab assay confirmation of the HandXRF readings that set the stock running last month. Still think it's disgraceful the ASX and explorers have this cosy deal going where companies can choose if or not to release clearly material, if not definitive, results. Makes it tough to buy and hold knowing so many are front-running good news like today... or maybe bad news tomorrow?

Anyway, a good start in the sense it proves carbonatite in the west Arunta is Nb fertile given it keeps coming up Nb rich in multiple areas, and laterite weathering consistently enriches this Nb when it's near surface. I'd be careful chasing these results, although they are obviously much more attractive than 16m at 0.6% N2O5 from 350m EAL001. My reasons include:

wait and see where all the insiders take this price jump back down to as they take profits, knowing they probably have the same source to get back in later if the next round of drilling comes up trumps.

The Elephant Fault line of carb hits are all moderately skinny and intercalated, overlain, basically mixed up with various non-carb sediments. That means deep carb is not weathered, enriched or thus uneconomic. Skinny carb dykes and intrusions along the fault proper may not have the size and low mining strip when enriched near surface, when/if they persist to the surface? WA1's Luni carbonatite pipe complex has the sort of size at surface that provides tonnage and grade... skinny fault intrusive carbs may not.

Numbers I ran on WA1s (under thread Econ 101) agreed with Argonauts analysis of Luni that projected a mining inventory of 14Mt @ 2% Nb2O5. I don;t think 1% Nb2O5 will do it in the Arunta even though it can make bank elsewhere. Elsewhere meaning; existing operations in much lower cost, better serviced locations, debt free and running long time on a cash-cost-only basis. Location matters a lot to capex and opex, new projects need to carry and rpay large debts plus interest in addition to cash-costs.

That said, it's early days in a new exploration area. Find a large enough Nb rich carb that comes to surface and is supergene concentrated at shallow enough levels to sufficient tonnes/grade and ENR is away. Looks more like an exploration play than deposit discovery so far... bring on the next drill program, plenty of targets along and beyond the Elephant Fault.

GLTAH