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H/T to Timber Trader on the GGP board. Region is red hot. Totally inconceivable that Newcrest isn't talking with wishbone.
An āunprecedentedā flow of cash into the high-risk mineral exploration sector has sparked a drilling boom that is causing huge backlogs at the laboratories whose assays determine success or failure.
More than $2.2 billion flowed into the 656 pre-revenue explorers on the ASX in the final three months of 2020, in a result that was 72 per cent higher than average and was described by advisory firm BDO as āunprecedentedā....
....The laboratory backlog is even more severe in Western Australia, where the state government was last month forced to extend a deadline for Rio Tinto to submit waste rock samples from its Hope Downs 4 iron ore mine because there was no prospect that laboratories in the state would be able to assay the samples before July.....
....Drilling company DDH1 Limited listed on the ASX on Tuesday and has its fleet of 96 rigs booked almost solid for the rest of calendar 2021.
DDH1 founder Murray Pollock said mining companies and explorers were starting to panic-book rigs the way households had hoarded toilet paper in the early stages of the pandemic.
āThe demand is enormous, we just cannot keep up,ā he said.
āI think there is a bit of panic out there and perhaps some companies are booking up rigs [because] they know they have to get in there, but they might not know exactly what they are going to do with them.
āOnce that starts it is a bit like the pre-COVID toilet paper rush.ā
DDH1 has drilled holes 2000 metres deep at Newcrest Mining and Greatland Goldās Havieron project in WA and 2500 metres deep at BHPās Oak Dam in South Australia.....
https://www.afr.com/companies/mining/the-2b-exploration-boom-quietly-under-way-20210309-p5796h
TS, I assume you refer to my post on the 'wider view' thread.
No risk to Newcrest for a few drill holes. The risk to them is having their Telfer mill under capacity. That's expensive.
No risk to Wishbone either. Newcrest is their only serious option.
I will add that Wishbone is in a completely unique position that I've ever seen for a junior explorer. For most the issue (once a target is found) drilling, funding, permitting, JV dilutions etc. Wishbone has none of those issues. If Redsetter has the grades, its a slam dunk, because all the infrastructure and JV is there. Newcrest will snap it up since its practically under their nose. I do not see any need for wishbone to dilute. And would be very surprised is they weren't negotiating with Newcrest already. Time will tell. But not much time is needed IMO.
Hi Bamps21,
Interesting; there's always a lot more and more steps involved than casual shareholders like me want to work through; I don't know how it normally happens for metal explorers, but it wouldn't surprise me if there was drilling to (hopefully) find something, then selling the license at a "premium", one lower than casual shareholders would like, for example.
laserbrain, that would be a development; surely it would be in Newcrest's interest to let Wishbone do the drilling and take the risk of finding nothing, and in Wishbone's interest to try and find something and increase their leverage and get more companies interested?
Good post Bamps, it is ridiculous to compare the WSBN license area to Havieron but i for one would love it to get to Ā£1 on the initial drill results. The MCAP would still be only a tenth of GGP's.
As it's in close proximity to Havieron then maybe more drilling could be funded by a JV with NCM and even GGP?
Hi TS
I'm not invested here but I do keep an eye on what's happening.
Looking at the web site modelling, the surface area may be larger than Havieron but you should be looking for the coincidence of the 2 surveys i.e. gravity and magnetic and that certainly isn't larger.
From what I can see your looking at a depth 100-200m , Havieron maybe around 1200m -2000 or more.
It may cost NCM/Ggp $200m by the time they finish they're current phase of drilling to prove up the mining plan.
I would like to know where the development/exploration funds will come from?
If they hit good gold grades this might get to a Ā£1 as you say but what happens after the first drill phase?
I'm all for small firms making a go of it and good luck to all of you :))
> Tasty Salmon, what are your thoughts on the SP based on this?
I'm too dumb to be making serious sensible predictions backed by proper calculations; If you just scale GGP's billion pound market cap, Wishbone's fewer shares in issue, Red Setter being proportionally larger, and assume an AMAZING FIND I get share prices into the Ā£30-40 region. That seems ridiculously optimistic, and I'd expect share issue and dilution to wind that down if nothing else. I'm hoping for Ā£1-4 by Christmas and think some good finds have a good chance of that. What's actually reasonable or likely, goodness knows.
Tasty Salmon, what are your thoughts on the SP based on this?
> How can $30bn be in reach and yet $3bn is a dream?!
I said "30bn is _a_ reach" meaning that I think it's far away, hard to get to, you have to reach a long way to justify it.
$3Bn is a good dream, if there's gold in Red Setter and it compares to Havieron on size and quality and GGP results, $3Bn market cap could happen from that alone. If there's silver and copper production from White Mountain, Wishbone II, and Cottesloe - there's a lot of ways to get to $3BN in time - not this month, but in a year of drilling and results it's a nice dream that could happen.
> I'd be extremely happy with that! I'm not greedy!!!
I'd be pleased with ten bags from here, but when I said Red Setter targets are 3x the surface area of Havieron, I was wrong, they're more like 6x the surface area. $300m would mean less gold than Havieron, spread more thinly, or lower quality, and nothing from the other projects. That would be a bit of a sad result when the potential is so high.
I don't get your post.
How can $30bn be in reach and yet $3bn is a dream?!
This share could easily hit Ā£300m, which is 10x now. I'd be extremely happy with that! I'm not greedy!!!
3D inversion of the Red Setter ultra-detailed magnetics has delineated 3 highly magnetic bodies over an expanded area now covering 3km x 1km.
Ā· Largest individual priority 1 magnetic target has a 1500m strike length with a width of 400m and starts at around 75m from surface.
Ā· Magnetic survey reveals that all magnetic targets are much shallower than 150m-250m depth previously modelled.
Ā· The relatively shallower target depth is strongly advantageous both from an exploration and future development potential perspective.
Ā· The Red Setter Project is located 13km south-west of Newcrest Mining's Telfer Gold-Copper Mine and 60km west of Newcrest and Greatland Gold's Havieron discovery.
https://www.lse.co.uk/rns/WSBN/high-grade-silver-acquisition-in-patersons-range-7jk13trd795edq9.html
Rock chip geochemical sampling results reported up to 298g/t Ag
Mineralisation trends interpreted to be over a 12km strike
Wishbone Gold Plc, the London listed precious metals trading and exploration company, advises that it has signed an exclusive deal to acquire 100% ownership of the 92.19 square kilometres Cottesloe Project in the Patersons Range region of Western Australia (the "Cottesloe Project"). This proposed acquisition will more than double Wishbone's exposure in the well-endowed gold province of the Patersons, increasing Wishbone's tenement holding to 159 km2 from 67 km2
https://www.lse.co.uk/rns/WSBN/excellent-initial-results-from-exploration-zhrx83uwzmp9o2i.html
Grades up to 44 g/t Au (grams per tonne gold) returned from NE Workings from stream sediments.
News rich period to follow. Funded to drill both cottesloe and red setter were either will be trasformative for WSBN going forward with Newcrest seeking new local high profit project's -
https://bmo.qumucloud.com/view/2021-gmm-newcrestmining#/ around 16mins in.
+ Futher results due from the white mountains.
> Over Ā£3BN MCap?? hahaha keep dreaming
GGP got to ~$1BN market cap with Havieron, and that's 500x300 metres. Red Setter's targets identified by Terra Search are 2400x400 metres, or 3x surface area. Wishbone also have White Mountain and Wishbone II restarting drilling since September, an extension to Wishbone II licensed applied for, the recently acquired Cottesloe silver project.
$30BN is a reach, but $3BN? OK, we'll keep dreaming.
Actually 30! Even better.
Over Ā£3BN MCap?? hahaha keep dreaming
Why years when they are fully funded to drill now? No doubt they are making it happen as we speak.
Why say that? Fully funded to test drill. What would hold them back?
Could be waiting years to discovery the direction of travel unfortunately, letās see ????
I've read the RNS on the Red Setter targets and the planned two drills. Do we know when those are likely to happen?
The highest priority magnetic bodies within Red Setter (Referred to as Targets A, B and C in Figure 1) cover an expanded area of 3.5 km in strike length and 1 km in width. The highest order Target A occurs over a strike length of 1500m with a width of 400m and occurs within 50-75m of surface. Results of this modelling shows several north plunging magnetic bodies within this anomaly of equivalent susceptibility (possibly pyrrhotite alteration) to that evident at both Newcrest Mining and Greatland Gold's Havieron and RioTinto's Winu discoveries.
Following the positive developments outlined in the recent Red setter RNS and now today's wonderful news of WSBN's silver resource acquisition, this seems to be a sleeping dragon rising from slumber, surrounded by literal giants. Today's close @ just above 15p is a strong finish. As a fresh new investor here, I'm very much looking forward to the days and weeks ahead.