KRC heading back to previous highs The great news for shareholders who have been patient and not concerned themselves with the volatility of day traders is that we are heading back to previous highs based on the strengthened position the company has been able to put itself into post 19c. Since 19c the following has been achieved:
1. Mt Remarkable has continued to come up with the highest grade results of any explorer so far this year, not just once but on several occasions, which is very significant, more assays are expected on another 25ish odd holes across the area very shortly. Drilling also continues for another 4 months.. those excited by gold need look no further than here as if this was all KRC was offering we would still be priced at these levels. The wonderful thing is that this is only a small PART of the story.
2. Fortesque have pegged the ground around us, very significant. We have also pegged more ground.
3. We have managed to achieve double potential output with our vanadium deposit from 6 mtpa to 12 mtpa and with a low strip ratio they have also reduced the costs, the way the deposit is situated is making it very easy to extract all very significant and a wonderful outcome. Not only is V extracted but also a high 99% purity titanium, iron oxide and a fluorspar deposit valued at billions also.
4. Having the largest deposit of Vanadium at 4.7 billion tonnes with a 1000 year mine life, the goal was to enter the renewables market. Only just in its infancy, vanadium is going to be one of the highest sought after commodities in this sector due to the way it leaves lithium for dead, not only a renewable but also used in steel strengthening especially by the Chinese (Compared to lithium-ion batteries, vanadium redox flow batteries (VRB) are non-flammable, environmentally friendly, have estimated life-spans in excess of 10,000 cycles and maintain 90 per cent of their capacity over 20 years, thereby lowering the total cost of ownership. By comparison, getting 1000 cycles of use out of a lithium-ion battery with full depth of discharge would be ambitious. To enter the renewables market means that you need to have a purity of 99.5%, it also means that the value triples from $40,000 to $120,000 US dollars. We have been trying for this all year and through a few different methods seem to have found a method that not only gets us there, but gets us there cheaper and more efficiently.
5. With the recent options being exercised and underwritten we have $7,400,000 in the bank. When we got to 19c I believe we had just under $2 mil. This leaves us fully funded to conduct all lab work, drilling, scoping study for a long time with the new option strike price of 12c we will see most of those taken up over the next 12 months- up to $49,000,000 worth.
6. Scoping study is very close, will be due within the next 8 weeks. Will open the door to plenty more JV partners and will also mean we will see institutional buying once they have the juicy figures in black and white.
7. A 99.5% purity will also bring in overseas buyers, especially Chinese due to the redox battery work they have been churning out. Next week is going to be a mad rush now that we have reached this magical figure (assuming of course that we have got there, safe to think so due to the trading halt)
To say that KRC is cheap at current levels is an understatement. With all that we have achieved since then and with MAJOR game changing catalysts coming up within the next 4-8 weeks.. the first of course is next week.. I call them the big 3 (vanadium purity, concept study, scoping study) and of course more gold assays due any day and plenty more over next 4 months. Scoping in particular is going to show eye watering figures that will be simply impossible to ignore. I would be buckling in and preparing for a SP 2 x current levels. Those sitting on the fence deciding when to pull the trigger to buy in I wouldn’t be wasting any more time. Very exciting weeks ahead.
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