News that caught my eye this week No. 20

As many have said with what we have on the go, and the drills being paid for by S32 it could be seen as undervalued ... IMO

Ausquest is mentioned further down

News that caught my eye this week No. 20

Recapping a bunch of honorable mentions and a couple of new interesting targets

Nov 17, 2024

1

1

Share

The “Honorable mentions” section of these weekly pieces have proven useful for keeping track of all the targets and drilling campaigns that pop up as interesting.

Periodically, I revisit these to see how far they’ve gotten to and when I should expect a trading halt announcement pending results.

DeGrussa discovery trading halt. An oldie but a goodie.

In addition to some new interesting targets, this week I provide a rapid fire digestion of why of some of the Honorable mentions announcements stood out.

Ultimately, none, or few made me consider purchasing the stock, but they stood out as interesting enough to create the need to familiarize myself with the company, prospect and targeting rationale.

The reasons for this are very simple. All exploration results are contextual. A 4 meter Ni-Cu hit on a big EM anomaly in the middle of nowhere and the first to penetrate the target is transformative. The same hole drilled as infill on a flogged orebody turned into swiss cheese is a matter of supreme indifference.

Every good drill hit can therefore be both a genuine discovery or a director’s special. In the context of investing serious amounts of money, a genuine discovery is essential as it is not only a value transformation but also one of liquidity. Every discovery can look good at the start and improve (or disappoint) over time with every campaign bringing further de-risking, value, liquidity and the opportunity for staged entries (or exits).

When a discovery announcement drops it can take some effort to work out if it is genuine or not.

All this is getting too far into conversations of position sizing and risk-mitigation. The key is that when an announcement is released pre-open, one does not have a heap of time to place the “discovery” into context and ultimately having some foreknowledge of the company, management and prospects can provide the context and the confidence to act (or not).

Thanks for reading CrimsonCarp’s Substack! Subscribe for free to receive new posts and support my work.

Pledge your support

The Tracker

• YRL- Siona Discovery

• ENR drilling at Sandover

• GCM drilling at Boulia (Drilling completed awaiting assays)

Follow ups

None

Share

New interesting targets

Ausquest Limited- AQD- Drill targets confirmed at Balladonia

This is a project I have kept up with for some time. Its one of those wild undercover Greenfields targets I drum on about. That’s probably a fair description of all AQD projects across both Australia and Peru.

The company gets a lot of credibility from the Strategic exploration alliance it has with South 32. With the former spending a fair bit each year on AQD tenements.

Slide 3 from this the annual presentation

I don’t know exactly where S32 sits with their earn in on Balladonia but given they have 70% locked in should anything interesting materialize then 30% AQD equity is the number I am working with.

Previous drilling in the area encountered Broken Hill type prospective horizons along with some indication of carbonatites.

The announcement released this week reported results from the companies follow up of airborne EM anomalies with ground EM, commenting that the anomalies found could be reflective of massive base metal sulphides or graphite.

Finding another Broken Hill or Cannington (note the Ag grade) would clearly be a big win. The company will be drilling these targets in early 2025.

I watch with interest.