From an article published Mining News last month it is interesting to note that Segue is actually ahead of the timeframes with regards to its aircore drilling , and has since had its successful completion of an oversubscribed SPP ....
An informative read for those looking for more info on Segue ... if you haven't read it already ....
" Moving fast in the Fraser RangeTuesday, 22 July 2014
Andrew Duffy
LIKE its regional rivals, Segue Resources has moved hard and fast on its Fraser Range holdings over the past six months.
Now the preparatory work is finished, the first drilling campaign is set to test the potential Segue may have in the burgeoning province.
Drilling is set to start this week or next, and marks a milestone for the company, which has worked hard over the past few years to build its ground position in the Fraser Range.
“We want to be a dominant landowner in the region with the majority ownership in each of our tenements,”Segue managing director Steven Michael toldMiningNews.
“That really stands us apart from the other large tenement holders.”
Higher stakes
Michael said Segue’s ownership levels, which include two 100%-owned tenements, formed part of its “x-factor”.
It’s a point of difference with other Fraser Range explorers, which acquired their holdings through joint ventures with the Creasy Group.
“The benefit of our ground was that the particular tenements we own were all part of the Plumridge gold project at some point previously and therefore they’ve basically stayed out of the Creasy Group,” Michael said.
“We’ve managed to get 100% of these tenements, and we want to keep that ownership interest as much as we can.”
But these holdings are only part of the wider Plumridge project, prospective for nickel sulphide deposits, withSegue also holding an 80% interest in tenements formed through a JV with Fraser Range Metals Group.
Under the agreement Segue needs to make a minimum expenditure to satisfy its stake. After that, FRMG can contribute on a 20% basis or dilute its share to 10%. Beyond that, its stake converts to a 1% royalty.
At this point Michael said it was hard to tell what the future split would look like for the JV, but the upcoming drill results would help guide Segue’s strategy.
“At this point in time we’re very comfortable with our 80% interest,” he said.
“It’s early days but if there was something through the drilling or subsequent to the drilling that we thought was very interesting then obviously we’d like to have 100%.”
Upcoming work
The upcoming drill campaign will start on the E21 anomaly, where multiple electromagnetic conductors have been identified.
That work is set to start this month, along with a detailed aeromagnetic survey on the newly acquired E39/1731 tenement which hosts E21.
In August, in-fill and extensional ground EM work will be done on the conductors identified in its phase one, to better define the data before air core drilling takes place.
First pass air core drilling on targets from the phase two work is expected to start in September.
All of this will go a long way to outlining the company’s fortunes in the Fraser Range.
It will also form part of a solid set of numbers that could make or break some of the hype that’s built up around Segue’s holdings.
Rising interest
Apart from drilling, the company has also been busy on the corporate side, and recently announced a share purchase plan and sale facility to address its growing retail shareholder base.
Further down the line, the company could consider a share consolidation, but Michael said that strategy depended on how the SPP worked out.
“Our register has a very large retail shareholder base which probably wouldn’t be interested in a share consolidation,” he said.
“But conversely, if we’re successful in exploration and we need to then go and raise $3-5 million to do a large exploration program we might need to think about consolidation.
“I think doing a consolidation just for the sake of doing it isn’t the right thing to do, it would need to be something where we think there’s compelling additional value and at the moment the jury’s out on that.
“There’s been a lot of consolidation that has ended up reducing shareholder value in the short term, and I think we’re very conscious of not doing anything in the short term that sees shareholder value being eroded.”
Whatever the outcome of the upcoming drilling and corporate moves, there’s no doubt Segue is one of the Fraser Range’s most important new players.
And with so much big news on the horizon, it will definitely be one to watch
SEG Price at posting:
1.6¢ Sentiment: Buy Disclosure: Held
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