Good Morning Fellow Shareholders,
I had a chat with Rob Tyson yesterday and was very encouraged by what he said, in particular regarding Wirlong. Potentially drilling will recommence there next week but is subject to a meeting he is having with the JOGMEC partners in Sydney this week (tomorrow I think). He stated that JOGMEC are very excited about the results at Wirlong and their ongoing participation in the JV is highly likely to continue. He emphasized the size of the mineralized system at Wirlong is in excess of 3km long - this is based on surface geochemical anomolies, exploration drilling as well as surface and downhole geophysical testing/modelling. Importantly all forms of testing are showing strong corelations which indicates the huge potential of the prospect. The next round of drilling is designed to test along strike (north and south) as well as up and down dip from WLDD001 (9m @ 8% Cu) and WLRCDD015 (
[email protected]%Cu). The hole that had to be abandoned due to bad ground (intersecting a major fault) was 400m along strike from WLDD001 and WLRCDD015. This next round will be a lot closer at 100m north and south of the two discovery holes. I asked why not tighten up a bit more to 50m north and south but was informed that all the data is pointing to genuine targets in these areas which is indicative of the potential size of this orebody.
I have purchased another parcel of shares this morning and I suspect the seller is HHM - they have dwindling cash reserves and have probably dipped into some of their circa 12 million shares.
In regards to Mallee Bull I was informed that drilling will possibly resume in May but is depends on our JV partner CBH who have had some operational issues having to significantly reduce its workforce at the Endeavour Mine north of Cobar. Rob stated that the next phase of drilling will be designed to chase possibble extensions to the high grade T1 lead/zinc orebody. Beyond that they are looking at options to move towards developoment with a possible open pit to exploit T1.
Lastly the Apollo Hill results are a bit delayed due to the level of activity in the gold sector in WA at the moment. Best case scenario appears to be announcement of results towards end of next week.
The current copper price is obviously not helping our share price but with the probability of further success at Wirlong I am aimng for the share price to establish a floor of 25 cents within 3 months. When copper inevitably recovers to somewhere above $5,500 per tonne that floor may be 40 to 50 cents.
God luck to all holders.
CB
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