Just watching this one at the moment as fully invested elsewhere.
They have a great ground position in what is a well endowed (from a minerals perspective) area with a long history of mining. I spent a few years living in Cobar and working in the industry and have a reasonable understing of the potential of the area.
I would expect from what I have read that the size of the resource will increase significantly over time as they the follow up drilling, the biggest risk around this one is that there will most likely be several dilutionary share issues as they will need to secure funds for future drilling and the development of the resource.
Another risk to the project may be securing adequate water supplies (I am unsure as to how much they need) from the Cobar Water Board, as there may be limited pipeline capacity available.
On the flip side they are located near a well equipped town with an experienced workforce and local authorities that have a history of supporting the development of the industry.
Will watch on with interest.
CCU Price at posting:
15.2¢ Sentiment: LT Buy Disclosure: Not Held
