Thanks for the detailed info. Not helpful for me though. Thanks...

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EatTheRich

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20/10/20

19:18

Post #: 48246542
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Originally posted by Luka79: ↑

Just some thoughts,

The Drill results show a reasonable intersection. Grades from xrf can be highly variable due to size of area the xrays hit (literally a single mineral grain) plus all the accuracy issues associated with the way the gun is used. Would assume they did multiple measurements and averaged for a public release. Either way assays will tell. Need to be mindful of deleterious elements (Eg high arsenic) but they don't list any arsenic assays.

Size of massive sulphides is decent though not true width as from section it looks like they aren't drilling perpendicular to the ore. Just means the width of massive sulphides will be smaller. Reasonable development of graded sulphides above the massive zone, and well developed matrix sulphides can grade well too. The shallow holes aren't good grade but indicate stringers. So whilst they don't make it mineable they give more confidence in potential continuity of the main deposit intersections further down holes.

Downhole EM shows good signs something there, extents/continuity are still questionable.

The projection of potential ore deposit is reasonable but could also vary as it's a magmatic deposit so would be influenced by the boundaries of the mafic/ultramafic that it sits along the base of.

Depth can be an issue, undeniably it gets harder to mine at depth and you start having ground issues due to the nature of the ultramafics. It's all relative though, So 400m doesn't make it unmineable, but it will require geotech to assess as part of pre-feasibility study.

Location is good. Known prospective and fertile nickel grounds. Infrastructure nearby so that makes it more likely to be mined later if it is extended by drilling that shows its presence along strike/ up/down dip.

The few holes they have indicate something is there. The true size, grade and economics of that depend on a bunch of variables (including geological & economic data they don't have yet). The holes they have suggest it's not an isolated lense, as does the geographic location. But whether it will be big enough to mine and make money is the real question which depends on deposit size, complexity & grade.

They say it's magmatic style which means the shape of the rocks the magma flowed over can determine how continuous it is as well. Think like puddles, the heavier sulphides can drop out into the low points so it's hard to know if it'll be continuous along the basal contact or a series of little lenses/puddles.

Looking at that whole story I'd say 'there's something there'. It might take a while to work up, it may not end up being exactly how they're suggesting it is but there's something relevant there. It will get explored further, worked up for sale or mining as a JV (I'd say Estrella are a good candidate for a Gold Road style strategy). They will require 10s of millions to dig up the area, so expect some decent capital raising for further exploration soon.

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Thanks for the detailed info. Not helpful for me though. Thanks anyways.

ESR Price at posting: 17.0¢ Sentiment: Hold Disclosure: Held
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Thanks for the detailed info. Not helpful for me though. Thanks...

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