Response from THX

Some asked a very good query about why does it take to long to get assay results and I have often wondered the same - even moreso since our neighbour TLM has produced a relatively quick turn around with theirs. I asked THX and Tony replied with the following.  

"Forget TLM when it comes to speed of assay turnaround– SFR is doing all the work and spending all the money at Monty.  TLM is currently spending nothing and only has 30% effective interest because of the SFR earn-in.
THX has 90% interest in its Doolgunna tenements and is in full control of what it does.

THX had $5M in the bank at end June.
SFR had $107M cash and deposits and is cashflow positive.

THX is watching every cent it spends.  
SFR no doubt does the same but has a stated $20+M exploration budget around DeGrussa this year.

THX has one full time geologist.  We engage contract geologists and casual field assistants on a campaign basis as needed.
SFR has ……… slightly more than that.  And any activities around DeGrussa have all the personnel associated with their mine activities theoretically available to lend a hand if things are urgent.

For THX to get assays done we have to collect all the samples from the drillholes, catalogue them, load them in a vehicle, drive them back to Perth, make sure we have extracted the ones we want assayed, include duplicates and blanks and standards under usual industry-best-practice QA/QC protocols, then deliver them to the lab.  If it’s core we have to source a core-saw and arrange time to have the core cut and sampled according to our instructions and to industry-best-practice QA/QC protocols.  If (as is usually the case) we are still drilling then field staff are tied up with that and the sampling preparation etc has to wait until the end of the drill programme when staff become available again.

For SFR to get assays it takes the core from Monty to the DeGrussa mine site (maybe 30 minutes); cuts the core there, I suspect (as they will have need of a core saw for the underground drilling programmes); and if – as is the case with many mines – they have their own lab on site, then they can rush samples through that and have results in a couple of days or less.  Worst case is that they fly the core from their mine airstrip on their aircraft straight down to Perth same night for delivery to a Perth lab with instructions for urgent processing, probably next day.  

Basically it is impracticable to compare turnaround times for a major mining company next to an operating mine site, to turnaround times for an exploration company trying its best to make every shareholder dollar count. "

I posed another question which I along with I suspect many of us have on our minds.  Is THX jumping the gun by directing funds for drilling at Allamber, given the potential at RB and CW.  Tony's response.

"THX conducts exploration on its other areas as well as Red Bore because it has a statutory obligation to do so.  Each State or Territory imposes minimum expenditure commitment conditions on its leases. THX will continue to evaluate all its projects in a systematic and rigorous manner until we conclude that we have exhausted all possibility of uncovering commercial mineralisation at that project.”

Tony concluded his response by saying:

"We remain very excited about what SFR has discovered at Monty and very gratified that its findings are confirming that the geology is not straightforward. All of us in the area know that full well.  But most importantly, it shows we are right to be persistent in our efforts and to continue to conduct our exploration step by logical step.  Broken ground is indeed indicative of faulting and faults often provide pathways for mineralising fluids.  They also mess up your drill holes when you want to carry out downhole surveys.

Hope that all makes sense,

Cheers
Tony”

IMO, I've seen how much the SP can move on low volume and as it is low volume at present I would expect significant % movement.  With the advantage of 20/20  hindsight, I fail to see too many areas in which I would have preferred to see THX do things differently.   The lack of positive emotion in ANN's is about all I can think of.  

I am not ramping nor down.   I posed questions and presented the responses.

In my case, I  am  comfortable to continue sitting on my hands and await the next ANN and  experience/learn from the journey - everyone needs to captain their own ship and it is no secret that exploration is very high risk.  Obviously, I hope we are suitably rewarded - soonish.