maximisation of value at lance

With the acquisition of the data package validating the results of the $60 million drilling program (at today’s prices) to the extent that WIC have advised that all 5,140 holes can be used for JORC purposes ,I am looking forward to management announcing a revised strategy at Lance in the ensuing months, to accelerate its development.

I don’t think the market has yet factored in the significance of this acquisition in allowing for the accelerated development of the project at a significantly reduced cost, validation of the existing mineralisation, nor the ability to accurately target the expansion of the known mineralisation.

Whilst the combined current mid point target for Ross/Barber is 15 million pounds, the combined mid point target for the other 11 project areas (of which we have mineral title over 9) is
a further 48 million pounds.
As per the announcement dated Sept 4 2009 “The database contains numerous roll front maps which demonstrate the trends of the mineralised zones at the Lance project, which will serve as a vital guide for planning the drill program designed to expand on the known mineralisation”.
As per Hangseng’s excellent post earlier today we have ticked off many of the requirements to validate Lance as suitable for low cost ISR production.

The company now needs to maximise the leverage from the acquired data to accelerate the development of Lance in a prudent fashion.

If development is not accelerated I am sure the brothers Simpson are only too aware that we could be subject to takeover at a price that does not reflect this projects true value, let alone the potential at Karoo.

I look forward to participating in a further capital raising in the medium term (hopefully after the Ross/Barber jorc announcement) as the exponential returns from a vastly increased JORC deposit will far exceed the effects of further dilution.

2011/12 could be a great time to execute long term supply contracts.