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20.5¢ wiluna mining corporation limited.

Ann: Trading Halt-BLK.AX, page-36

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a13

219 Posts.

17/08/16

12:02

Post #: 18537670
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Originally posted by speculator101 ↑

Now that I have had some time to ponder....
My guess is the cash is to drill the hell out of the sulfides. Convert say 500k of the resources into the reserves category in time for approx Mid 2017 which will allow them the sign off the FID for upgrading the plant and ramping up production to 200k+ p.a. (That would see BLK have a reserve base of over 1m ounces). The sheer amount of drilling that will be brought forward could be very impressive.

This would see BLK bump up the scale of producers from the 100k bracket, towards the likes of SAR and RRL. All from the 1 plant. If this is the plan, then I cannot help but think that money will be thrown at the company. This would also, at least for me, make BLK more of a target for acquisition. Yes its still early days, but when the likes of DCN have a market cap double BLKs, or the liks of RRL which has a market cap 2billion or, almost 8x the size of BLK, I think the ability for the likes of SAR or RRL to jump their production profiles above NST (500k+) for a pittance in cash/shares seems very compelling to me.

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For what it's worth I reckon to raise 25M at between 95c and $1.00

BLK Price at posting: $1.15 Sentiment: None Disclosure: Held
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0 Great analysis

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