Re rate happening, page-2575

Point 4 you made (Phase two drilling in November) interests me too.

Their announcement of 18 September this year has in it at page 4, when discussing the outcropping pegmatites on Morrissey Hill:

"● Phase 2 drilling remains set to commence this year pending receipt of regulatory approvals."


Their drilling commencement at Morrissey Hill announcement of 14 August this year has at page 1:

"● The Company is fully funded to complete a significant drill program at Morrissey Hill and uponany success, would quickly look at expanding its activities in the area"


The release of 9 August this year (lithium soil sampling results) has at pages 3-4:

"As reported previously (see ASX release dated 23 June 2023), the Company is set to commence itsmaiden drill program next week at Morrissey Hill which is along strike of Delta Lithium’s Malinda LithiumProject, Yinnetharra, Gascoyne Mineral Province, W.A

The program will include ~8-10 RC holes to approximately 100m to 300m depth and another 8-10 DDHto similar depths for ~4500m drilling in total. Holes are planned to assess grade, size and scale of themapped pegmatites and test for the presence of “blind” sub-surface pegmatite bodies (Figure 2)."

--> I couldn't find an ASX release dated 23 June on their website which is odd (does anyone know about this, seems like a typo and isn't of consequence, in any event):




Anyway, from the announcement timeline, from what I could see, RR1 first explicitly mentioned the November drilling (or at least "phase 2"), in September this year. Although, they do say "remains set to commence" which indicates a second-round of drilling was already in mind by this time.

The follow up drilling in November could be included in the "drill program" wording mentioned earlier.

As to what conclusions to draw, I don't think it's a case of their Geo "finding something" and deciding more drilling is needed to prove a hypothesis.

Rather, I think that a decision was made earlier on to drill in multiple areas. Either way, the outlook should be bullish. For my view, you wouldn't go in with a "pre-booked" secondary drill program (each round costs a lot) before knowing what the results of the first drill round are, unless you're confident the goods are there.

The counter is the wording of their 14 August announcement, that if successful they'd look to expand the program. Potentially, their geo had a look at the cores and thought "yep, let's keep going"?

I'd be interested in your opinion mate, if you have one on this.