Hey fella's just reposting this on this thread also - my research on HLX
EV (post iron ore asset sale) around $14 million at 4 cents
Cash (post iron ore asset sale) as of today $2.5 million estimation also there is another lever they can pull soon being the Chile copper assets which will likely yield a reasonable cash pile.
Like many successful resource hopefuls before them HLX is remaining under the radar and very underrated by the market they simply don’t need the hype as something tangible on multiple fronts is potentially upon us as Pitt and creasy would suspect. This along with long term tail winds on our side in the commodities we chase is quiet compelling. I understand MD Mr Wilson is travelling this week one would assume its to the region where all the main assets are assessing the multiple activities that have or are about to start as flagged by the company end of last year.
To explain this, I would like to make a post explaining the company’s upside potential especially from this SP point on a holistic level and one post. To do this I will be breaking down the assets one by one and comparing value against others.
ALL THE BELOW PROJECTS ARE SEEING DECENT EXPLORATION IN THE COMING WEEKS NOTING THEIR AGGRESSIVE EXPLORATION STANCE COMPARED TO THE LAST FEW YEARS WHERE THEY WERE VERY EFFICIENT WITH THEIR LIMITED AMOUNT OF MONEY WHICH TO ME SAYS THEY ARE GOOD OPERATORS NOW ITS TIME TO RAMP UP.
Copper (Collerina)- Arguably the most advanced asset and IMO the way the announcements are reading they are certainly closing in on the conductor that is below the central zone and has already demonstrated very good grade and width from close to surface. This exploration is ongoing right now and there is a certain degree of persistence this time to realise the true potential value of this asset most likely some big holders have influenced them to stay course on a significant programme. So, me personally this Is one area which could potentially see large value add come in any day/week. Providing this comes through it has very favourable metrics given the mineralised system is so shallow and infrastructure is very close and modern along with major copper tail winds.
Copper(Mundarlo) – A very large concentrated EM plate with an ideal geological setting and strong conductance about to be drilled any day now to meet the Feb 18th deadline for min two holes. This is a greenfield site but again with a setting like this the potential for another good find is very reasonable within the next few weeks on top of Collerina.
MUNDARLO PROJECT - Helix’s initial program targeting VMS-style base metal systems at Mundarlo has defined a discrete bedrock EM Conductor:
A moderately dipping plate has been modelled with a conductance level of 200- 400 Siemens (within the base metal sulphide response range).
The conductor plate is positioned down-dip of gossanous chert horizons within a north-west trending mixed volcano-sedimentary basin sequence.
. The top of the conductor plate models at a depth of approximately 100m below surface, with a strike of 780m and a dip extent of 460m. - Helix plans to complete close-spaced soil geochemical surveys along the projected surface strike of the EM conductor prior to drill testing of the target. - Helix has satisfied its minimum expenditure and has the right to earn 60% equity by completing a two-hole drilling program within a $100,000 expenditure commitment by 18 February 2018.
Cobalt/Nickel- Collerina project
This is the cream on top for them and this project has the potential to achieve rapid value add for little expenditure as the company put it which is good considering their quiet conservative normally.
Now to put perspective in this CLL is valued at 75 million and has been as high as 90 million and they have the homesville find on EL6336 we have exclusive rights to the rest (terms below) and have 100% rights along strike in almost every direction. Now given how prospective this area is are is there should be some more speculation value here as to the probability of a good find is reasonable and given our neighbours valuation and ours not even considering our core copper value let alone this you can see where the potential large upside is with helix.
About the Collerina Project Agreement Helix holds exploration rights over the Collerina Project tenement (EL6336) under a split commodity agreement with Collerina Cobalt Limited (ASX:CLL), formerly Augur Resources Ltd. These include Helix’s exclusive right to explore the entirety of EL6336 (or any replacement tenements) for:
1. precious and sulphide-hosted base metals;
2. laterite-hosted cobalt-nickel deposits outside of CLL’s designated areas of interest (refer Figure 2). Other key terms of the agreement regarding lateritic cobalt-nickel exploration on EL6336 include: q Helix must notify CLL of any lateritic cobalt-nickel discoveries made on EL6336 outside of CLL’s designated areas of interest within 30 days of making such a discovery.
3. CLL then has 30 days from the time of such notification to elect either: a) To take up a 49% equity interest in the new discovery, with new discoveries to be advanced in partnership under such a Joint Venture structure (51% Helix and 49% CLL); OR b) Not to participate in the new discovery, whereby Helix retains a 100% interest in that discovery and can progress it on that sole basis. Summary: The Collerina Project tenement (EL6336) is the most advanced tenement in which Helix holds an interest for laterite-hosted cobalt-nickel.
4. However, Helix also holds 100% ownership interest for all minerals in the tenements located along strike, north and south, from the Collerina Project tenement (EL6336). These tenements are also potentially prospective for laterite-hosted cobalt-nickel mineralisation and have only been subject to limited historic exploration to date.Geophysics and drilling is planned as part of regional exploration.
HLX Price at posting:
3.9¢ Sentiment: Hold Disclosure: Held
(20min delay)