Hi All, I keep hearing on Hot copper from many people saying...

Hi All,

I keep hearing on Hot copper from many people saying that SGQ doesn't have a resource. So I thought I would help out the new guys.
I have taken an extract below from an independent report from Bell Potter written 23rd June 2017 (approximately a year ago). Please go to the SGQ website for the full report.

Valuations based on exploration potential
Our valuation of SGQ (Table 2) principally reflects our assessment of the prospectivity of the Mt Alexander Nickel Project.  Key aspects of our Mt Alexander valuation are:  We estimate that there could be a potential total resource of at least 2.5Mt averaging 2.7% nickel, 1.1% copper and 2.8g/t PGM in the three prospects of Investigators, Stricklands and Cathedrals (but principally in Cathedrals) for about 67kt of contained nickel, 27kt of contained copper and 68koz of contained PGM, (which we have assumed is approximately 40% platinum and 60% palladium); From that resource estimate, we have estimated that there could be a potential mining inventory of about 2.1Mt averaging 2.45% nickel, 1.0% copper and 2.5g/t PGM containing about 51kt of nickel.  After development capital costs (including some contribution to nickel processing plant refurbishment) of $17m, this mining inventory is mined by shallow open pits at a rate of 350ktpa to produce about 7.5ktpa of nickel, 3.2ktpa of copper and 21.2koz of PGM in concentrate over a 6 year mine life starting in mid-2020 from processing at a nearby (approx. 90km by road) nickel processing plant on a toll milling basis.  Either a single concentrate, or if separate nickel and copper concentrates are made, the nickel and copper concentrates would then be sold to BHP under the terms of the arrangement with them and would be railed from Leonora to BHP’s Kalgoorlie Nickel Smelter;  We are using our long term forecast prices for nickel of US$7.10/lb; for copper of US$3.10/lb; US$1,300/oz for platinum; and US$820/oz for  palladium and our long term US$/$A exchange rate of 0.75;

A few of points that stick out.
1. A year ago Cathedrals was the principal target.
2. A six year mine life primarily at Cathedrals, the mine life would have now vastly grown.
3. The resource price forecasted for nickel in 2o2o is $7.10/lb we hit that today.
4. A metal that has not been mentioned is Cobalt you may have heard of it.

Did I mention that the founder of Western areas is the major share holder. Also did I mention that the man who setup both Flying Fox and Spotted Quoll mines for Western areas has joined the team.

You would have to be mad to sell this stock with direction the management team is taking the company and with the Nickel price reaching the price predicted for 2020 today.​

Good luck to all. ​