Was a very informative interview that went for just under an hour with questions.
Took notes so here they are.
As Paul was speaking I took notes in point form so tried to capture wording best I could whilst moving along.
Kaninko is the standout in PDI’s 10 year history.
Power Auger drills down to 20m into oxide mineralisation showing considerable intercepts of mineralisation.
A lot of the market recognition was due to Kaninko being 100% owned by PDI.
Discovery is in absolutely virgin territory no drilling whatsoever in the project area.
Seeing similarities with the 10M oz Siguiri Mine, deeply weathered oxide mineralisation
Good place to explore with no farming and very little artisanal working.
NE Bankan sits on a laterite plateau so should be able to drill right throughout the wet season.
Siguiri has operated for a long time sub 1 gpt because of thick consistent mineralisation.
NE Bankan should be free dig in soft saprolite, low stripping ratio, good comminution, recoveries of 90-95%. Mine from surface.
Which is why you can profitably mine at sub 1 gpt like at Siguiri.
Currently drilling 5th DD hole. Seeing basaltic volcanics, granitic dykes, minor quartz veining.
Cutting the core now and will be sending all 5 holes to the lab together, so say 10 days
Seeing similar geology to the fresh rock at Bankan Creek
DD is getting into the fresh rock at about 60m at NE Bankan
Grade is likely to be better in the fresh rock like at Bankan Creek
Bankan Creek was seeing quartz veining but not so much as much at NE Bankan
Could be mineralisation at NE Bankan down to 200m
Northern lines drilled north of high grade power auger last announcement at NE Bankan are in the lab now and expecting results very shortly.
Will be seeing results all through July.
NE Bankan currently 5 rigs, 2 RC, 1 DD and 2 power auger
8000-10000m of drilling at NE Bankan next 2 months
Will do more systematic drilling once clarity of geology, scope size mineralisation etc
Aiming for maiden resource above 1M oz by mid next year but will not be a global resource by then so obviously scope for much bigger.
QUESTION TIME
Q. Will PDI be sharing pics of the core?
A. Yes but NE Bankan is a very fine gold system so no expectation to see visible gold in the core.
The geology will illustrate that.
They did pan fine gold in the power auger
Q. About drilling
A. Drilling will be focused on NE Bankan throughout the wet season.
Will be drilling a DD hole and Bankan Creek shortly, just waiting on rig to be moved.
Seeing a broad style of alteration in DD at NE Bankan and hopeful in the fresh rock they will see the same.
Seeing granitic dykes and mafic intrusives and what appears to be a large disseminated system.
Typically you see good continuity in disseminated systems.
Seeing some cross structure/controls as opposed to just the North South trending mineralisation.
$6M was for 50,000m of drilling. Raised $9M so plenty of gas in the tank.
We need to understand the Beast we’re dealing with.
Sees it as a 2 stage development pit.
First oxide pit low capex etc.
Similar to Siguiri.
Doing inferred drillout now on 80m lines with 50m centres due to the consistency of mineralisation should be sufficient to get to an inferred Jorc number.
Expecting to discover more oxide mineralisation around the tenement.
Q. Was asked about drilling rig availability.
A. Not really an issue. Could add rigs now if he wanted to but doesn’t want to waste money until they get more clarity of the beast!!
Has got access to 1 RC and 1 DD from Karoussa mine for $200k per month that will get you 4000-5000m of drilling.
Cheap drilling and very cheap DD drilling .
Q. About other companies moving in.
A. Mentions Volt and some other ASX shells looking to pick up ground.
PDI were there 18 months ago doing that I think he said.
Depth of fresh rock is about 60m vertical so 80m down hole.
Planned depth of DD 130m vertical so 180m down hole.
Seeing lots of variability so quite interesting
RC planned 100m down hole so 76m vertical
Should be able to drill 150m RC with a booster and water doesn’t appear to be an issue for wet samples.
Talked of potential takeovers.
Need to organise yourself to build a mine.
When time comes stand aside to appoint a mining engineer but if in the interim you were to receive a great offer well we’ll sell, but you need to position yourself to build a mine. Put it up for sale you can lose value but start to build towards developing a mine you add value.
References Ian Middlemass and what they did and B2B buying them out.
CLOSING COMMENTS BY PAUL ON WHY BUY INTO PDI.
Believes we’re on the cusp of something special. For two reasons
It’s a greenfields discovery.
Not often you come across something with broad zones of gold mineralisation.
Kaninko is both.
His mission is to go fast but also intelligently to add significant value.
Said that Jaypol should just get over crying about spilt milk and get on before it’s too late!!
(lol….I’m getting tired but haven’t lost my sense of humour)
That’s it folks.
Don’t take my word for it as it’s late, I’ve most likely made mistakes and misquoted but not intentionally, but you’ll have the luxury of listening to it yourselves as it can be viewed on replay once it’s uploaded which is likely once you all wake up.
Cheers
PDI Price at posting:
7.7¢ Sentiment: Buy Disclosure: Held
(20min delay)