The BHP results were very very good but the very good grade hits were very deep - beyond 1000 metres in general. This is the table in the BHP quarterly
Whilst nearology is a good thing, and might be reflective of what CHK has the problem is these following sets of diagrams below, again from the BHP quarterly - especially if looking at nearology in terms of the 2.5 km from where BHP drilled to the border of tenement 5970 in your pic in your post. CHK's 5970 is to the left of AD26, AD26W1, AD27, AD27W1, AD28, AD28W1 and after the drills cut through the ore body on that side the end of the drills are 'nil' results where the drill ends (albeit what we are seeking is that the layering in the host rocks and structures transcend into 5970 - the extensions etc). This might bring uncertainty of what CHK has but I suspect CHK will have similar formations and likely to have good results as well, meaning I suspect the host rocks exten into hopefully parts of CHK's closest tenemnt been 5970. But they must drill, and I guess the market is asking about funding and their experience in drilling such deep depths.
Noting, it would appear based on CHK's work to date that the best prospects is anomolies on tenement 6183, where HWD01 was drilled eons ago) and that would appear to be more than 15km from where BHP is drilling on 5941. The further you are away from the strike, nearology whilst a factor in a probability sense reduces given the radius from 5941 to 6183 (formerly 5224) and what that means in a sense of where the other sweet spot maybe. The other sweet spot appear on 5970 (i.e. the black dot) and that is probably about 7 - 8 km away. The key nearology aspect is the gravity target - the red circle closest to Oak Dam West - about 2.5km away and offers IMO the best nearology play assuming the extensions from Oak Dam West transcend to the left of it. This is the map I am referring to from https://www.asx.com.au/asxpdf/20190430/pdf/444py7d71q6lfs.pdf
Looking at the last quarterly, suspect CHK has about $1.7 million to play with in a drilling campaign. Given the depth of drilling required here, that is unlikely IMO to be sufficient (including assaying) for drilling say even 4 holes - 6 holes diamond drills to a depth of 1500 for each hole IMO. The deeper you drill the slower the drill metres covered IMO, but obviously others may have an opinion. The optimal scenario is BHP farms into the arrangement and drills a couple of holes for CHK but I doubt they will be showing their hand anytime soon given BHP is doing further drilling in November - a key to that drilling is if it is even closer to the boundary of 5970 then maybe can get more excited, but at this stage management here IMO need to ride their own luck, get the paperwork done and focus on drilling some targets in the next 3 months to 6 months. Obviously, and unfortunately I suspect that might mean a CR and that might explain the hesitance of teh market on today's BHPB announcement (which was a good announcement btw). https://detcrc.com.au/2014/breakthrough-technology-will-cut-mineral-exploration-drilling-costs-by-85/?doing_wp_cron=1571319013.5241360664367675781250
Time will tell where this ends up, but ultimately it is up to the drill bit. At this end of the market, and given therisks of drilling a free carry strategy is a key IMO, but each to their own investment strategies. Hopefully I get an opportunity to free carry but that will require the ducks to line up.
All IMO IMO
CHK Price at posting:
1.4¢ Sentiment: None Disclosure: Held
