I’ve been trying to make sense of a discussion with Alex where he spruikied the benefits of further drilling atCamelwood, Cannonball and Musket.My skepticalresponse was that Rox has held the tenement for a decade and completed additional drilling during that time. In the23/10/18 investor presentation further drilling was estimated to increase the resource by 1/3.That would increase the resource atCamelwood, Cannonball and Musketby 26,000t to a total of 104,000t of nickel.
But Cannon is focused on far more than these pits. Sabre is also a Fisher target. Sabre was discovered in 2015 with promising high grade hits.An Exploration Target at Sabre of 2.0 – 2.5 Mt at 1.5 - 2.5% Nickel has been identified based on RC and diamond drilling and geophysics (EM). The second major target of Cannon is Collurabbie where the Olympia project has a 13,500t of high grade nickel with significant regional expansion possible on the 123 square km tenement.Collurabbie is also the most likely tenement to have a major newnickel, copper and platinum group discovery. Olympia already contains 9,300 tonnes of nickel, 6,800 tonnes of copper, 470 tonnes of cobalt and 43,000 ounces of platinum + palladium.
A few years back Rox proposed trucking Collurabbie ore to Fisher East to combine these resources. These are 70K apart and of sufficiently high grade to transport. The strategy of Cannon is now to combine regional nickel projects.
Fisher has a $2.9m planned expenditure and Collurabie$1.8m.
Camelwood Cannonball and Musket plus Collurabbie currently have 91,500t of high grade nickel. The near term and likely expansion is hoped to increase this to around 130,000t Ni. Chances of finding a major Ni, Cu, Co, Pt, Pd resource are considered very good.
Prices of all these metals are exceptional.
The steak in Cannon is the high grade JORC with a strong possibility that existing resources will be expanded, combined and commercialised.
The Cannon sizzle is finding a new nickel resource or more Ni, Cu, Co, Pt, Pd at Collurabbie.
A solid investment with sizzle imo
Note the following from DM1, a junior with a lot of sizzle (colourful pics of EM conductors and drill cores without assays) but no steak.
Desert Metals Limited (‘DM1’): Price and Volume Query
ASX refers to the following:
1.The change in the price of DM1’s securities from a low of $0.40 yesterday to an intraday high of $0.64 today.
The increase in the volume of DM1’s securities traded today
(20min delay)