The 'pointy end' is fast approaching here and we've been told the updated SS would drop by end of June or there about (can never be certain on these things). Will the updated SS provide the shift in sentiment we're all looking for....? Perhaps it will be the new drill program results.....? Or something unexpected at Corona....?
Regardless I'm thinking many here are extremely interested in what the updated SS will tell us, whether they are holders or just watching on the sidelines. In the last update we were told "The Central deposit will be further reinforced by the results of the scoping study due out later this month". So it's time for recent appointment Dr Nick Lindsay to earn some stripes in this respect......"Nick’s expertise in metallurgy and commercial development of copper and silver projects in South America will bring a massive value add to the Valor team." Here's hoping, because since his appointment as Non-exec director on 19th Feb we've seen very little in terms of a "massive value add", maybe Dr Nick has been 'saving it up' for the SS results . Can he produce a massive value add in this one document? Well we'll know soon enough.
"His enhanced technical guidance will be invaluable to our team on the ground as we begin to commence the follow up drilling campaign at Berenguela, update our scoping study and push towards a project feasibility study before the end of financial year".
The impending need to fund raise along with the delayed/updated SS is probably a big reason for current mcap and 'sentiment' situation imo. There is $3.2mill US ($4mill Aus approx) left to raise by 13th Nov to satisfy terms of the deal with SSR after all. We can only hope that VAL wont be left trying to raise these funds with prices sitting around current levels, and a strong scoping study should definitely help this situation.
During the last drill campaign VAL increased the total resource at Berenguela central (BC) by 80% and offered up the first 'measured' JORC figures (7.706mill ton grading 1.6% CuEq for approx 120,000 ton CuEq.....just a cool $800mill worth, give or take, at current spot). Yet here we sit, sub $15mill mcap, pretty much back to square one like it never happened. Surely they must be able to generate some sustainable "value" from this deposit.......second time lucky perhaps..........once we're backed up by a positive SS?
I've pondered this before but I'd like to see some numbers re Mn in this upcoming study (doubtful imo)......As to why include Mn?? There's approx 2.3mill ton of Mn in the current quoted global resource, and while VAL have stated they are/have moved away from the EMD production route, it's there, and what else will they do with it to really drive value? (fertilizer additive has been mentioned in terms of a Mn sulfate).
The extracts below are from a recent AXE ann re EMD and provide some context to an argument for including Mn.....(Val haven't promoted this aspect of BC in a while).
"EMD is a high value manganese product which is a critical component within various applications, especially for lithium ion battery cathode material for electric vehicles"
"The global EMD market is forecast to grow at a compound annual growth rate of 6.34 % during the period 2018-2022"
"There is also significant potential in the emerging Lithiated Manganese Dioxide (LMD) Battery (which contains 61% Manganese by weight). LMD batteries are currently being used in the Chevy Volt and Nissan Leaf".
EMD production from BC is a real possibility, but perhaps capex/opex considerations have left that idea on the cutting room floor (for now). BC clearly has great potential as a "very compelling stand alone" Ag play (127mill oz 'total' so far) ..........a poly-metallic play producing EMD along with other metals (Cu Zn Ag)........or a simpler Cu driven play (350,000 ton Cu 'total' so far) with Ag and Zn credits and Mn sulfates on the side.
They have numerous options to follow and thankfully the new SS will detail which route they'll be going down and outline some figures for us to ponder. I certainly hope it can provide a strong foundation to drive a rebuild in the sentiment surrounding Valor. Not much more you can say until it drops and details are provided.
For comparative purposes (once they release the new study) I've included links to the 'old' SS release and the 'retraction of' statement below.
And in a shameless piece of promotion here's a link to those ultra high grade hits that got everyone talking (what might this second drill program turn up?)
. Can he produce a massive value add in this one document? Well we'll know soon enough.
(20min delay)