the quarterly report will be out soon with this info plus more, but in the meantime, here is some of what I was told and have remembered !
1) SNU still waiting on drilling results from Hindmarsh re Challenger West. Same 'ol culprit ......waiting on results from the lab. Hindmarsh has indicated that it wants to continue exploration at Challenger as JV manager, so one would have to assume that they, (Hindmarsh)think that the tenement is highly prospective
2) Basically it has taken 3-4 months longer to get the show on the road than anticipated, due to..... moving of offices, availability of drilling rigs, sufficient personel on the ground etc, etc. This has meant that little real activity has taken place, so sp has drifted down...and down
3) Some drilling targets have now been identified by gravity surveys, and drilling should now start in Sept quarter
4) One of the problems encountered whilst organising the exploration campaign at the Bird Swamp (real name is profundity on h/c, and cant use it) /Oak Dam prospect, has been the fact that the Woomera leases had been temporarily transferred to the Commonwealth Govt to administer, who stipulated that only 2 week permits could be issued. This meant holding crews on standby while wating for approval so they could move quickly. Imagine completing gravity survey work first, then organising drilling rigs/ crews all within 2 week blocks. Anyway the jurisdiction has now been transferred back to the SA State Govt with its standard exploration schedules, ........so should speed things up considerably.
5) Management has admitted to being frustrated with all these delays and acknowledges that without the planned activity (and the resulting information stream), the sp has taken somewhat of a beating........but that this should be rectified in the Sept quarter,with an aggressive drilling campaign
6) I asked whether they were still on target to drill 13,000 metres (aircore) of palaeochannel / roll front targets and 2,600 metres (percussive / diamond) of IOCGU and Unconformity targets in the first year (as per IPO prospectus)...and the general response was that they were 3-4 monhs behind, but were working hard to indentify suitable targets and drill them asap....with Bird swamp the first cab off the rank.
7) said that offices were moved from Adel to Brisbane so that they could persue the aquisition of non-Suth Australian tenements /opportunities
Overall was impressed with honesty and transparency of management and definitely got the feeling that management was very capable, and dedicated to achieving results...................well time will tell !
This is definitely a spec play, but with Talbot ?Citic / Southen Gold collectively holding some 48% of shares, this one will move fast on exploration success........ and remember they do hold some 11,000 km2 of highly prospective U ground in the Gawler Craton SA (one of the best U addresses in the world
cheers
SNU Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
