What could „exploration target should be easily double“ and...

First 5 Last

Share
Profile

Follow
Maigret1

1,529 Posts.

429

19/11/17

03:19

Post #: 28924328
Share

Originally posted by BobbyKennedy ↑

Here’s the final paragraph that I think sums it all up:

Price Target Under Review as the Asset and Cobalt Price Surprise to the Upside

a. The initial exploration target exceeds original Aesir estimates. Additionally, the
grades from recent drill holes are suggesting the deposit is higher grade than
originally forecasted. Both variables will dramatically increase in-situ rock value.
b. Met work suggests that the processing may be simpler than even originally conceived
thus lowering capex and opex requirements
c. According to Borg, the most recent discovery carries some large implications for the
scale of the mineralized system.
i. “This discovery of deeper and more intense mineralisation is an exciting
development for the Project, as it demonstrates significant potential upside to
the scale of the mineralised system. This is the first occurrence of semi-massive
sulphides at the Project and adds weight to our theory that a more significant
feeder system for the mineralisation may exist”.
ii. Demonstrates size upside (exploration target could easily double)
iii. Should be higher grade based on visuals of the drill core
iv. Better, more intense sulphide zones still to be uncovered (this most recent hole
was not targeted at any geophysical anomaly)

Expand

What could „exploration target should be easily double“ and “should be higher grades based on visuals” mean in figures ?

Original exploration target was 33-41 mt with 0,13%-0,17% Co.

80 mt and a grade on the upper end of original target = 0,17% seems imo conservative based on this bullish outlook from Brendan.

CLA 80 mt * 0,17% Co = 136k Co

In comparison AUZ and CLQ figures for their flagship projects Sconi and Sunrise:
AUZ 89 mt *0,11% Co = 98k Co
CLQ 109 mt * 0,14% = 153k Co

With this estimation CLA would have at least for the time being more Cobalt than AUZ and would be not very far away from CLQ’s magnitude.

I won’t make any marketcap comparisons.
AUZ and CLQ are some development steps ahead and to be fair their scandium/nickel is some $ more worth than our copper. On the other side Sconi and Sunrise are laterite projects and CLA should have capex & opex advantages due to simple sulphide ore.

Well, all in all CLA is looking damn good compared to these two significantly higher valued and nevertheless extremly promising Peers...

CLA Price at posting: 9.2¢ Sentiment: Buy Disclosure: Held
39 Upvote

0 Great analysis

Reply