My opinion on this, FWIW, is that companies in this situation should be spending their scarce resources on scoping out and demonstrating what the potential might be rather than allocating a lot of money to the detailed drilling required to JORC the deposit.
The reason is that both equity investors and potential acquirers/JV partners can easily do their own rough numbers on what the scale might be.
For example, I feel that CDU would have been better to apply their funds to demonstrating the potential of their other prospects (Wilgar, the SW tenement IP and amphibolite targets, other targets) than spending all that money coming up with a JORC resource.
A matter of judgement, but I know which way I vote. If I were advising ABU I would be saying put 5 holes into 100 prospects rather than 100 holes into 5 prospects. I think that these guys understand the game, which is one of the reasons that I am a shareholder.
ABU Price at posting:
6.3¢ Sentiment: LT Buy Disclosure: Held
