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Dianella 68

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08/04/20

23:40

Post #: 43960912
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Originally posted by speculator101 ↑

Hey Jim,
cheers for the link.
I tried hard to find anything noteworthy in the report other than the brief mention of Penny North but.... (not saying I don't appreciate you sharing the report). Perhaps Hartley's cannot think of anything to add right now. They don't seem overly excited about the new acquisition.

Yet, whilst I am still not excited about the premium they paid for SPX, the reality is, the project, once brought online, in conjunction with Eridanus, is going to push Mt Magnet into a new era of higher production (let alone combining it with the other deposits it has available).

One think I was going to ask other for commentary on, is the continuing distance in valuations between RMS and SLR.
I do think that SLR made a very savvy purchase of Deflector (DRM), which has basically enabled them to push past RMS.
I do think this is going to change, as RMS is getting very close to the end of their high capex spend to bring all their satellite deposits into production.
Its been a long time coming, but... I do feel that this goal is in sight, versus, always being pushed further out with more and more aquisitions.
That being said, I do think Penny North will require a decent amount of capital, but... most likely only a quarter's worth of 'profits' on current production rates.

Regarding your second post and Eridanus and the possibility of a much larger pit potentially including Lone Pine and O'mera, I wonder if RMS is already undertaking further drilling on the two old pits...? There is obviously some logic in incorporating the old pits, especially if it supports the economics of a larger pit.

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Hi spec

I notice the Mineral Resource snapshot you posted was as at 30/6/2018.
As at 30/6/2019 the Mineral Resource for Lone Pine and o'Meara shows a small increase to 42k ozs and 27k ozs respectively.

I just found the following statement in the 2019 Annual Report re Eridanus.
"The gold mineralisation is best developed within the competent east west trending Eridanus Granodiorite but
numerous lodes are seen to extend well beyond the granodiorite and are hosted by the surrounding Boogardie Basin felsic porphyry rocks."
We have been told the Eridanus Granodiotite extends for 500 m but the above statement implies to me that the open pit has the potential to extend even further than that.

Little wonder the LOM hasn't been produced yet as they calculate a possible further upgrade to the Eridanus resource.
AIMO I might add.

Jim.

RMS Price at posting: $1.03 Sentiment: Buy Disclosure: Held
8 Upvote

3 Great analysis

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