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Hi ShandyP,
In my view the tone was positive but definitely prospective, hopeful and cautionary at the same time.
As Burleigh said you would be best to decide yourself by listening to the full webinar.
No matter what the current status is I firmly believe that all the past missed deadlines and failure to deliver (with valid reasons mostly) is what is holding this back.
Great news if you are fully confident in the next plan for Menzies & Eclipse as you’re getting in with plenty of upside but after 5 years here I can’t afford to plough in yet again so it’s sit and wait.
That’s nothing to do with what was said, but rather personal experience over the years.
GLA
ML
Also thanks Manlord - really helpful.
Was the general tone upbeat??
No shortage of cash, 2 potentially nice assets and an mcap of £6m. Plenty of scope for the share price to rise from here imo....
Thanks Manlord! Really useful posts. Answered a couple of mine…. Will listen later
Closing: EEE now creating new focus in gold fields, 2 extremely prospective projects. Putting money to best use with drilling targets. Important to realise where we sit now and where the next few drilling programmes leave us but optimistic Eclipse will extend resource for bigger mine plan. Menzies - area of many deals being done with small scale operations and we can do exactly the same. Have govt support and can bring into production. Shaun is positive we have two great assets.
Right that's all guys.
Happy enough with the updates and thanks to the EEE team for taking the time to present.
ML
Total expenditure spend on drilling, employees etc
Generally about 65% of spend is operational (drilling) with the rest being admin
Is current labour rate increase a concern?
Will have a knock on affect over time but biggest concern is fuel costs which will have a bigger impact. expect prices to increase but Aus dollar is still weak against pound & US $ so we have a hedge there.
Austrian Assets
No divestment as of right now but one very interested party (Australia based) seem to be progressing with international travel opening.
Is Menzies drilling close to historical drilling from Dela Costa?
5 holes close but none twinned. drilling within 50m radius which may or may not be close enough to see if we hit that shoot he did. We're stepping out to see what's happening to the N & S.
What constitutes take up of option on Menzies?
Assays and data produced is still prospective and we need to wisely chose where to drill to test targets
Shareholders bought late 2020 now down significantly - whats the plan as we did not hit timelines communicated?
Not walking away from Eclipse or think it won't add value, very hopeful of upside and connections to targets not previously identified. If we pull a bigger resource Shareholders will be happy we didn't go in with small scale mine which would have steralised the area. Confident they made the right decision and early 2022 will hopefully show that.
Andy M - Whats the success case & time frame for existing shareholders?
Gold explorer with Aus focus and secure assets for gold, hopeful to demonstrate exploration can deliver resources into economic mines. Roadmap from exploration to development to milling to pouring gold is extensive. lots of partners would be interested if we get a discovery. Junior gold producer is the plan - not a short term plan - 18 months +
My own question: Thoughts on last 5 years in this company as it is hard to believe anything will be completed given the history.
Moved into Georgia 2015, 50/50 venture Russian partner and spent $6m dollars and Russians pulled the plug so EEE in litigation. Uncooperative partner, lost time and money. Divested and that took almost 12 months so we are now planning to focus on new area and picked up projects and new team, new strategy and how we will get there. Disappointing for all involved but we came out the other side, fully funded and good to advance the company.
Jack T - Are you looking to explore the nickel potential?
Not at the moment
Andy M - Why EEE with so many good gold opportunities out there?
Good experienced team in EEE, areas are good addresses for gold and we are well placed to make a discovery.
Closing: EEE now creating new focus in gold fields, 2 extremely prospective projects. Putting money to best use with drilling targets. Important to realise where we sit now and where the next few drilling programmes leave us but optimistic Eclipse will extend resource for bigger mine plan. Menzies - area of many deals
*Option can be taken up using cash resources - GK made a specific point of that.
*In terms of legacy assets in Austria - maintained regulatory licenses for another 5 years. Discussions ongoing to acquire these projects and are for sale. No additional work planned by EEE, one group has done some extensive DD but with Covid restrictions things taking longer than expected. Hopefully a disposal deal to be confirmed in time.
*Catalysts - Focus on 2 exploration fronts - Menzies & Eclipse (significant upside). Demonstrated high grade and now drilling focus is there as we go forward. 9000m of drilling (80% in top 20m), drilling into fresh rock (80m-100m) we need to understand the area and how they link. We must find main targets and then go drilling into where our time is best spent.
*Menzies high prospective - 6 drill ready targets (RCD) but waiting on assays to pin point next specific targets. High optimistic of discovery.
*Selling Assets in Austria is also a focus - need to sharpen the company and move forward.
Boom in Australia - delayed assays, drill rigs, labour etc but 2 more drilling programmes in next 6 months. We are well funded and have cash to advance projects if we take up the option to do so. Shaun is determined to build a strong talent pool with specific skill sets.
King West Geologist (unnamed) has also been brought in to assist our gold mineralisation discovery quest.
If we find any other areas that we feel have potential we will try to add to our licence area as it is a well sought after address. Can build a substantial gold portfolio and look for other opportunities.
Questions:
Which Project is main focus?
Menzies
What did historic drilling at both sites say about grade & scale?
Open pit mine feasible but not doing so as small scale. High grade intercepts at Eclipse point to bigger resource than first thought so need to take our time rather than go in for small scale low margin pit. Grade and size too early to say but no doubts about grade allowing underground operation (See Kingwest update from near us). point being they can have it at 3g/t so we can also do so with higher than 3g/t.
@Menzies - good discoveries near us (100,000 oz) so whilst not mega profitable we would be highly optimistic about both targets.
What are the mineralisation characteristics?
Gold is located in the area, you see iron banding which indicates mineralisation
When are assays expected?
2-3 weeks if we can fast-track and have paid extra to prioritise. Database will be updated then.
How had recent appointments affected EEE?
Ed has vast experience in identifying targets in the region. Ed is supporting the team in strategic direction. Louisa is focusing on the science behind the geology and it all comes together to indicate geo's for chemistry. Essentially where is most prospective to drill next rather than just punching holes. Using their skill sets to build portfolio.
Excuse my spelling and punctuation - writing as I listen here. It is recorded but this is hot off the press.
*Initial focus for Shaun when he got his feet under the table on building a expert team and not paying 3rd party consultants. Ed & Louisa filled that gap and delighted to have them onboard. Jesus also used as technical advisor and fully engaged in Australia.
* 336m shares in issue with 5.7m market cap
* 75% interest in Eclipse, NE of Kalgoorlie. Looking for loads mineralisation running off major fault zone. Recent important work is looking at historical finds and within a few Kms were beside producing mines with solid grades. Still an under-explored area and need to get our data right before we head off in any particular direction. 754oz Au found @24.6g/t. drilling programme has confirmed presence of parallel veins. Very interested how these deposits are related and what controls this along strike length - where are we best served to drill next? The extensions of high grade zones but holes not drilled deep enough yet to know. What we now need to do is determine just how much gold mineralisation is present at depth.
*900m of drilling - whilst narrow it's high grade and deeper we go better the grades. How do these zones hang over our tenement so need to justify resource by using mining studies and we're very excited about the upside at eclipse.
* Further drilling programme in early 2022 to link up with Jacks Dream area. When continuity is found decisions to be made or larger ore body.
*Menzies - option to acquire 75% (expires Feb 2022) and main focus is here right now due to deadline and assessment of first drill programme. Excellent location and significant potential for gold loads and into production. Kings West latest update is near us and also Resources Energy also recently had positive news and all in close vicinity to us. Exciting prospect but work to be done to confirm a discovery of size.
*Area not only prospective for gold but also nickel and could be part of discovery.
*Historical Geo review, drone surveys, blast drilling, RCD (Dela Costa) all completed and now keen to see how it all links.
*2400m RCD completed - stepped out strike length 500m - Did trend extend N & S? Large number of nuggets found and now looking for extension from Menzies sheer coming through the nugget patch area. As we speak still collecting assays and data to be updated - announcement due shortly after for grades and intercepts.
*Results from surface Sampling were very encouraging - high grade zones hit, 5 holes in close proximity (stepped out 500m) with significant anomalies. Prime target (T1) parallel to nugget patch and indicates gold to the S-SE. Entire tenements covered by soils with depth undetermined as of yet. Keen to drill to see if we have an extention to gold trend and would extend the 1.8km gold target.
*Menzies - early phase but very exciting.
*paid a nominal fee + $500,000 Aus spent by Feb and hopefully we take up the option.