Tombu, I understand what you are saying as I have been watching TON and KNL a few times. I shared conversation with Tony on this.
What you said was correct; but he elaborated on the presumption that discovery is an 'either/or scenario'. Tony replied "In other words, if we discover graphite then we can’t discover copper at Red Bore. That simply is not true. We can get two positive SP reactions: one from good graphite grades and flake size; and another from good drilling results at Red Bore. Or anywhere else for that matter.
I agree with the supply/demand snapshot, but if battery technology continues to improve at its current rate, and demand for non-conventional (“green”) energy generation, with its associated requirements for battery storage capability, also continues to increase and so will change current supply-demand dynamics exponentially too, then new graphite discoveries will be needed. Plus any in a first world country will have benefits over those in a third world country where there is the ever-present temptation for and risk of expropriation.
Exploration isn’t production. Biggest share price reaction is to discovery; next phase is proving up and BFS / construction when the SP falls again; before eventually trending up again upon commissioning and production. All of that is years past any discovery. So what I’m saying is that good discovery parameters now, in any commodity that is catching the market’s eye (as graphite certainly is) will translate to shareholder value through share price uplift, and/or through a corporate transaction.
Basically “graphite is not the only (Tony, emphasised this) mineral we want them to find” would have been a better comment. But finding graphite should in itself be a good thing and it in no way impedes or prevents our endeavours at Red Bore from coming up with the goods there too."
Just to recapp the last ANN, the company concluded by saying;
A total of nine holes are planned: six at Little Mount Isa and three at Ilmars. The programme has significant merit;
* firstly in that it tests the graphite potential of an area known to host graphite mineralisation and that has been a focus of recent corporate and exploration activity;
* secondly, it follows up the known base metal (zinc) mineralisation; and
* thirdly it satisfies statutory expenditure commitments needed to keep the projects in good standing.
As a fellow SH, I am comfortable they are not putting the blinkers on and not just focussing solely on the very exciting RB.
