Interesting announcement today. Will have to wait for more details regarding the drilling program and where the hole locations will be but thoughts are: 1) NW Razafy puts them into 25605. This expired long ago but I am aware that the company is confident in getting it renewed. I do have concerns with permits lodged in 2011. But if the company is drilling there then you do have to assume they have assessed the permit risk as low. 2) 5k strike length inludes SE Razafy (and NW Razafy) which crosses into 39751. On a risk based approach, I would be inclined to exclude resources and exp targets over anything but 5394 - but thats my view only and clearly at odds with the company. The company quotes 20.2mt @ 6.51% in the latest announcment. Again, I would be inclined to ignore Haja until a PE has been granted. For a DFS they will be aiming for a measured resource probably followed by a JORC Reserve report - no surprises there. However Im not sure this drilling program is intended to feed into the DFS as it doesnt specifically make reference to it. Does anyone have any views on this? 3) no reference to the number of holes but 1000m will probably be around 10-20 holes (guesstimate). The question will be how deep they are going. 4) The grades in NW Razafy look promising. There is no doubt there is quantity and quality in the area.
BEM Price at posting:
13.5¢ Sentiment: None Disclosure: Not Held
