Hi John, great work by the whole team, I feel this current drill program is defining in many ways and has brought a lot of excitement and anticipation back into the stock. Perfectly timed with the nickel depletion.
I just have a couple of questions
1. If indeed west end and or fish hook intersect massive sulfides will you continue to drill those out so they could be added to any JORC resource estimate announcement.
2. I'm a little concerned we may need to do a CR soon again, will you be looking at continuing drilling, especially Fish hook before a CR is arranged. With the right factors in place i feel with more significant hits, higher nickel price shortly etc if we wait that little bit longer a CR may be able to be done well in excess of 20c. As a long term SH I would be grateful if this could be achieved.
3. Have you been getting any more interest from overseas enquiries with regards to the Nickel, I remember you mentioning this a couple of years ago.
In regard to your 3 queries:
- Yes, we will drill at West End and Fish Hook before going to a JORC estimate. Both of those prospects could add very significant volumes to the potential resource. If all goes well we will be drilling at these prospects this year.
- We will try to minimise dilution to existing shareholders with the next CR. I would like to see a share price above 20c. We need to see how our exploration evolves and the status of the markets, and take the opportunity when it presents itself. We can’t wait too long as the market will see us as ‘cum raising’ and the share price will be held back – I have received calls from other major shareholders with concerns along these lines.
- We have received very serious interest from both foreign and local players for a strategic stake in St George. Hypothetically, one potential deal could be a strategic investor taking a 10% placement in St George for $10m. We are continuing discussions. With the nickel market tightening, I think our chances of striking a very good deal – if we choose this route – are improving.
Regards
John
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