After digesting last weeks news and a disappointing SP (Have taken about a -45% hit on a decent multiple 5 figure amount)
I wanted to compile a few key points to understand the next few months ahead, I have also emailed Charles seeking some clarification on the entitlement offer as its not very clearly explained.
The raise: Confusing, not well spelt out. Possibly in need of clarifying since announcements conflict. Email sent to the company.
2 Substantial directors are fronting short term loans to continue progress which will be returned on entitlement funding. Also taking up full allocation. It’s good that Directors are putting their own money up.
The projects:
Bitter Springs - 4 holes drilled for 1500m returning 1000+TREO + up to 33% MREO (Magnetic REE)
Shallow, near surface, along a 30km strike, now extending another 22 RC holes up to 3000m (10% of strike)
My view they should have spent more resource here rather than taking a stab at mount Webb and missing. At least the next drill campaign will lengthen and stay in bitter springs. Based on quantum’s 2015 drilling + these recent results, id be expecting similar grades of 1000-1500ppm REE with 1/3 MREO. Still a very valuable and viable resource as they are shallow, and very close to access.
Mount Webb granite - 16 holes drill. Flop, waste of time.
Bali - Copper/gold.
33 holes up to 3886m. Bali Lo, east & south returned reasonable grades up to 5% Cu, Bali High returned low Cu grades with Zinc, PB, and very high grades of Silver up to 21g/t
What was exciting about Bali is the wide intercepts with assays between 3% up to 11.2% Cu.
What I really think will move the dial and get us to a more fairly valued MC is drilling out the Deep South area which according to Rock chip assays has some extremely high grade Cu.
10 holes planned to start shortly
Its frustrating seeing the SP get smashed, I don’t think it was justified and the company is not doing itself any favours with they way they planned the first drill campaigns, the way they worded the announcements, and the recent confusion on this raise. However im hopeful management will listen to and become a little more focused in targeting high value area’s first and not wasting funds as they wont get many chances tapping us at a low MC - We need to see an initial return to continue supporting the company. Catch 22 as they need these funds to drill the below. The positives are Directors putting their money where their mouth is, and we’ve now also tested a couple of area’s so we’ll hopefully see some stronger results after this next set.
I’ll be participating as I think we were oversold, it’s undervalued, and these options can’t be flipped. Plus its supporting funds all ready invested at this level.
Its our right as shareholders to email the company and seek clarity or help guide so if there’s things that are needed to be asked please add them in here and im happy to be a central voice to reduce noise and get a better chance of reply.
Cheers
