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RR you said what have they been doing for 3 months. I really don’t know about contracts for ceos of aim listed miners in oz but....(and I’m not by my notes)
In the last interview I saw with Craig he mentions meeting with the board to decide the next steps...
Suppose he’d been approached by someone at this point but was in a fixed term contract with cobra. In the last 3 months perhaps he’s been in discussions about breaking a contract and the board have been looking for suitors. It seems that 6 months ( from memory) is a long time to give as a resignation period, mines 3 and they’ve invested substantial amounts in training. Perhaps the board have known of his ‘intention’ to leave and have been working behind the scenes to make it as seamless as possible.
Knowing Craig was going isn’t an ‘ok bye’ situation and the next day you carry on as Normal. They must have been working out logistics based on his departure.
Fully agree with you there Richy
I also take it that we have around 4,000 metres left on the present drill contract so all those costs have already been provisioned for.
It would have been nice if they could have got out there sooner, but we are where we are. Virtually every contractor is tied up at present so its good news to hear they are getting back out there finally.
A update presentation to market which covers all of this as that seems like the next sensible step
As you say the full development of a IOCG target is a giant of a task, but best to see what the initial ground work throws up from these first three targets firsts,
If they show any promise we won't struggle for interest. Either Andromeda would jump in or one of the majors will takeover and it will just be a pay day for all shareholders here.
I’m pretty certain the initial drilling agreement was for stage 1 drilling for 10,000m at a fixed cost for 33% paid in equity.
We only drilled 6,000m in stage 1 so I’d imagine we still have 4,000m left as part of the agreement.
Thereafter who knows what the cost/agreement is.
Jury is out on using pathfinder analysis. If it was so accurate then why were Baggy Green results so off!? 2 out of 3 had very positive drilling results so so far give them the benefit of the doubt.
We need a clear 2021 plan showing timescales going forward like we had for 2020. I’m stunned we’ve not had this already given we’re approaching mid April! I really thought we would have had the plan mid February and been drilling by now to keep momentum going to be honest but hey ho.
IOCG - exciting but one drill (no make that at least 10 deep drills to 500m minimum!) doesn’t make an IOCG deposit.
What’s the strategy for the IOCG targets and how the hell are they going to pay for it? How long before they actually drill the IOCG targets?
Too many unanswered questions. I’ve emailed asking for info and now all communication has stopped, why!?
Pro's and Con's of using the drill contractors we have on board are as follows as I see it.
The bad news is that when they are contracted onto other projects, unless we go out to market at great expense to contract an alternative crew or purchase our own rigs you pays your money and takes your choice.
I'll try and post up the info later on the drill contract we have negotiated, from memory the drill contractors have agreed to take payment of 30% of the costs upfront in shares and have committed to a fixed price per metre.
Looks like they announced work started last week and I agree with you that the methodical approach is not only sensible, its also crucial in building up the necessary data set to formally increase the resource size.
The Gold targets are becoming more and more developed and understood and at a market cap of just £7.5m Cobra is already undervalued per oz of Gold in the ground vs sector peers.
I agree the IOCG Targets are the unknown quantity here, im looking forward to the company updating on these.
As far as I can find out the field work commenced last week with scrubbing work to clear the ground for the geo work that should be commencing this week, I noticed the South Australian aerial mags were only just made available end of last month so I'm sure they will be tapping into this additional data.
Looks like we have confirmation that the tracked rigs will be going out to Laker and Benauld and the standard rigs will be hitting Clarke, Barns and White tank where they look to be drilling to deeper levels to test if these are indeed open at depth.
I tend to agree more with your line of thinking Saint rather than with Christo but he/she does have some valid points.
I don’t believe it’s taken almost 3 months to analyse the drilling results, 5 months if you consider late November for the Clarke results given the actual amount of drilling involved.
What the hell have they been doing for 3 months!?
The latest news is we are finalising the next round of drilling with geo chem work starting next week once necessary approvals have been granted etc with a very sketchy plan for the year with very little detail of what’s being done and where and at what cost.
I’m excited by the IOCG targets but again we need more info and exactly what’s planned rather than just using the IOCG carrot to generate interest.
Methodical approach makes sense but it’s taking a lot longer than it should to be pushing this project forward!
Its not just me that has 'Got You' I think everyone else on here has :-))))
Good news for actual holders here is that we have £1.4m (GBP) cash in the bank.
Stage2 exploration costs are fixed at £879,000, nothing hidden there.
This 'fixed cost' increase our percentage of Wudina to 65%. Something that is certainly not yet priced in here.
We therefore have a defined 'value unlock' from the completion of stage 2.
If the JV is then formalised we will have cash coming in from Andromeda to meet all further exploration costs, and they have plenty of clout.
If we decide to increase our stake of Wudina to 75% and do a fund raise at the end of this year it would be accretive, i.e adding value by effectively taking us to 25% higher equity in Wudina than we hold now. None of this is priced in here. So yet a further additional value adding activity.
It will also crystallise the JV on a 75/25 position and Andromeda are then obliged to start commiting cash towards the project once we have fulfilled our contractual obligations under the farm in agreement.
No doubt they'll be a wall of cash coming in at that stage as having Andromeda formally involved is a highly attractive proposition and totally different ball game. In the meantime we keep growing both our equity and the known Gold resource which they intend to see a minimum 5 fold increase in ro at least 1MOZ+.
At this stage you'll be looking at a market cap of circa £50m not taking into account any increase in the price of gold.
Should they find a hit on one of the IOCG targets then your looking at a potential 100 bagger.
So I'm very happy with my position here thanks. As a minimum I'm looking at 500% gains from here, with the potential of a lottery win should one of those IOCG targets come in, and now we have confirmation that work started on these last week, should they drop an RNS at any stage confirming success on these, the non holders will be kicking themselves that they could have got in at this bargain level.
Good luck with your other investments.
ST, you got me, and I have to correct myself!
The COBRa will wake up in the following order:
1. New MD is appointed.
2. New drilling campaign is announced.
3. Placing before the drill bit starts turning.
And I won't even tell you to buy Aviva, because I think you're useful addition to every bb you're in!
Your continuous efforts(ramping?)to protect your investments in every share you're in are well appreciated by the shareholders of these companies bb's.
However, I think that even you wouldn't have called the highlight of the RNS from Christmas Eve-1 meter of 3.54gpt from 21 holes drilled (over 2000 meters drilled in total) significant gold intercepts!
The last RNS before Good Friday basically says that, instead of working on new JORC resource they haven't been doing much since November, and this will continue until new MD is appointed. Taking into account the level of activity in WA this is a daunting task. We have no data whatsoever on the cash burn, but we all know there are salaries and licences to be paid. Drilling is expensive, and they will have to raise. I'm not objecting it at all, it is the nature of the exploration business. I just disagree with Greg Han****'s statement that the current drop represent a buying opportunity. Nope, it isn't! I actually think this is another shameless statement, because he knows the cash burn rate which we don't. I hope that I'll be proved wrong, but with this lot- I doubt it very much. I don't mind volatility, I think it's great. I do mind PI's being treated as dirt with shameless disrespectful statements as above.
According to your last post on this bb COBR were going to do a placing before starting this present drilling campaign? Well ifs started now???
if you go around stated a placing is coming on every exploration company bb eventually you'll be correct as that's why explorers list in the first place, what one needs to grasp is, are the funds being used to add shareholder value, such as acquiring new licences or funding a development program, or are they getting wasted on spurious activities?
COBR have already instructed the drill contractors on a fixed price agreement, no cost overruns or unknowns and our dril contractors were happy to accept part payment in shares upfront.
A smart move eh? Ensures the contractors won't be slacking and they'll sure as hell be focused on proving up our Gold Targets.
We already had more than sufficient cash for cover the costs of this round of exploration work which will take us to 65% of the farm in agreement.
We'll possibly need to fund raise at the back end of this year, but depending on Results it will likely be accretive in nature. Which is what you want in this sector..
Ideally the SP appreciation triggers the warrants adding more cash into the pot.
No issues here.
Moving onto ECR..
If you'd checked their proposed costs of the sum total of their full drill campaign ECR have already communicated that they plan on spending up to £30m on drilling, yes.. thats correct, £30M.
I stated ages ago that unless they secured the JV that they would need placing after placing to get through this ambitious programme.
At ECR they have adopted a wildcat nature of drilling, where they may choose to extend the scope of each drill targets and depth pending initial results. This is the same approach Artemis are doing on their licence ground surrounding Havieron.
The idea being, you are close to an existing deposit, so just go at it with the drill hoping to hit something similar.
Cobra are doing nothing like this, first of all we have significant data covering 22 Gold anomalies previously identified by Newcrest who already did the hard yards at Wudina and spent millions scoping out the targrts and from this initial work the first 211,000 o/z maiden Gold resource was able to be established, Cobra just need to develop these already known deposits to increase the resources.
ECR don't yet have a maiden resource.
Rather than just going mad with a drill trying to find a needle in a haystack, Cobra have detailed 3D models of the target anomalies, now these don't prove the grades, but they prove the gold exists in whatever quantity the drills then reveal.
Gervais H from GGP isn't a shareholder in Cobra on a flyer.
If you can't handle the volatility get out of this space and stick to Aviva shares or something better aligned to your risk profile.
Cobra will wake up in the same way as ECR- with placing, I'm afraid. ECR kept silence for months before today's RNS, even in case that they had a lot more cash than our COBRa.
Looking forward to the next leg up here.
Have a good one.
I watched it a few times ST .. very comforting .
Always good to have a refresh and look back over the info that brought you here in the first place..
Have a great weekend ... Looking forward to the coming weeks here.
Just re watched the video.
Sounds like core part of tbe RC drilling programme will be testing the deph extension at Clarke.
If the mineralisation carries on down hundreds of metres that would be a game changer.
Also like the part where Greg states around about 6m.30 in that shareholders will look back at this as an opportunity to have added and "Good projects always attract quality individuals"
Hopefully this is the classic case of hinting that some other good news is on the way shortly..
Cobra is asleep in the sun waiting to strike at the most unexpected time :))
News next week please.....