WMG 1.10% 22.5¢ western mines group ltd

Recently retired again, for how long? This means that I can now...

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    Recently retired again, for how long? This means that I can now comment on WMG. I don't hold and I have been investing spare cash into IMU, including the recent SPP, so I will have to wait.
    From my perspective nothing has changed since I first invested in WMG except the potential for large bodies of low grade sulphide nickel, similar to historic drill intersections, has now become reality. Sure more drilling to meet JORC resource standard but I see this as just a matter of time. A very large low grade open pit nickel sulphide body has a natural home with BHP or another large nickel producer. With BHPs nickel infrastructure in WA I am sure that they are watching. They don't need to do anything but wait for WMG to spend the money to drill it out and do the metallurgy.
    The thing that will make a huge difference to WMGs options is a high grade discovery, say 20m@1+% nickel or a series of 10m@1+% nickel hits showing the potential for a high grade mine. This may get other players interested and provide an in house mine option to generate cash to support the larger low grade open pit mine.
    From what I can see WMG is working hard to find a high grade zone, it is also progressing well with delineating the large low grade open pit mineralisation.
    Can't argue with their approach and I hope they find the high grade zone or two.
    I have no share price prediction because it is not just exploration results that will determine it, the nickel price, cost inflation and general market sentiment play a huge role. Sufficient to say that finding a high grade ore body will help the share price and the companies strategic options
    DYOR Not investment advice
 
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