Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
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As a point of interest:
Tweet from Solgold, 10 hrs ago re: MRE [18 holes] at Tandayama.
Screen shot shows: " OPEN PIT - CUT OFF GRADE 0.16% cu eq.
Underground Cut Off - 0.28% cu eq."
Link: https://twitter.com/SolGold_plc Tues, 19 Oct 2021.
Comment:
XTR*s Scoping Study shows 0.15 % cu cut-off once copper reaches $10,000?
Currently, copper price is US$11,000.
A much discussed topic in the past but now the above MRE also shows that open-pit cut off is around this grade although 0.16% cu eq.
Hello, FTF, if you are still reading, you are a follower of Tandy, that will be a
text book case and for the early folks who said 0. 33% cu eq is NOT good enough grades for open pittable and at 233Mt only at this stage for 18 holes ONLY.
Note : Eq which means NOT all is copper cu but some gold presumably = copper grade is assumed to be lower than 0.33%.
That*s the proof out now.
Tues 19 Oct 2021.
The subject of discussion ie Tandayama:
1] MRE based on 18 holes.
2] 233 Mt @ 0.33% CU EQ.
3] Potentially OPEN-PITTABLE- 201.7 Mt @0.33% cu eq. Higher grade zone 10.6 Mt @0.41% cu eq and 5.2 Mt @0.45% cu Eq.
My Comment:
As said, Dr Rohlach Phd, Chief Geo said at inception that 18-23 holes are sufficient for a Maiden Resource Statement. 2ndly, OPEN PITTABLE 233 Mt @0.33% cu EQ
Joeman1 / Steve4077 - I think it is the buyback clause that makes this situation unique. In most circumstances, I agree, a company can pick and choose when to update a JORC estimating a resource. But in this case, when XTR know they have 2mt, they also know there will be a buyback negotiation with AA and that's information the market has a right to know. Just ask yourself the question... would anyone be selling today at 5.1p if they knew XTR was going into negotiations with AA re a buyback?
https://www.mining.com/copper-price-surges-through-11000-on-supply-squeeze/
I would imagine that an independent valuation would be based on the forward curve
Yes Steve, the 3% value came from John's mining journal and he said it was Conservative.
I know nothing of valuing a mine but he has a lot of experience so I'll go along with him for now.
>> I don't think we should use 10k per tonne unless it's at $15k per tonne.
Yes, you are right - I was getting a little carried away then :)
On the other hand, we are all assuming that 3% is the max for in-ground. Given jurisdiction, nearby infrastructure and low cost of extraction, maybe we are being to pessimistic on that factor.
I don't think we should use 10k per tonne unless it's at $15k per tonne.
No major will pay the near peak price for an asset.
They and Colin know when their at the poker table, copper price might fall..... and Colin will say.... its going to 20k due to the shortage of copper. Eventually they will come to a deal and it will not be based on the highs we're at now. All imo.
>> Equally I cant see why there is anything to "legally" force XTR to produce a JORC at any time.
That is an interesting question. This is an unusual situation in that it may be in the long-term benefit of the company to be slow to produce a JORC, when most companies would try to get that information out as soon as possible. The question of 'delaying' a JORC probably never arises. You could argue that knowing the AA buyout is more likely to happen is material information.
If the original agreement with AA had stipulated that AA would determine when the JORC was produced (after verbal indication from XTR that drilling had surpassed 2mT Cu in their opinion), and that AA would fund the JORC expense, then clearly, AA would be in the driving seat. But as things stand, with a less than concise wording, XTR can delay the JORC to its preferred timing.
I'm in no rush for the JORC. The more drilling we do before updating the JORC, the greater the total ore and the higher the eventual sell price.
As for potential share price, 2mt at 10k per ton x 3% is £435m ($600m). Assume 1b shares (current 845m) and that is a share price of 43p plus Africa assets
Even if we use 2% and $8000 for copper, which I think is very low-ball, that is 23p. And that is assuming the total is only 2mt.
Let's use $7300 x 2mt at 3%. 1 billion shares in issue.
SP 33p
Hi Steve,
Equally I cant see why there is anything to "legally" force XTR to produce a JORC at any time. I agree they cant withhold the drilling and assay results (although they could change their position and issue all at the end of each campaign), but ive never heard of a company being compelled to complete a JORC when they didnt want to.
Ok thanks joeman and Steve then holding this and boil for 4x from here Minimum
Im expecting 20p as a minimum when the JORC is issued and /or the decision to mine is RNS'd, which Im expecting by Q2 2022.
I know there has been no hard and fast date given for this, however with the expectation being that we will reach 2mt with the existing drilling campaign and this campaign concluding by the end of the year, and assays returning in around 8 weeks, I think we will have the information to update the JORC by the beginning of Q2....
Of course if we go into that JORC assessment with the tonnage ....even on an inferred basis to say take us up to 3mt or 4mt..... then we could be moving towards your upper target... but who knows.
Im going for 20p nailed on at the moment but that is just my opinion.
@pepemartinez
I highly recommend reading through all the RNS for 2021. That will give you a good understanding of your investment and the potential returns.
Joeman1 - There is nothing stopping XTR releasing an updated JORC and then carrying on drilling until they are ready to come to the negotiating table with AA.
I would also question the legality of sitting on such information when it would clearly have a significant impact on the SP and investor decision making.
I can't see xtract owning racecourse in 2023.
The phase 2 drilling will be completed in January I think. The assays will all be back by mid March.
Then let's say 3 months for updated modeling and jorc etc. Maybe June 2021 we will have over 2mt and a share price of minimum 20p.
However I think it may all happen a bit quicker.
Also depends if there is a phase 3 and when that starts.
I really don't want to wait to 2023!
Joeman you are speaking of more than 20p???? When 2023 when they can sell resource? And thanks for answer
Morning Shorn,
solg is over half a billion and tbh out project is bigger, higher quality and in a much better place I am not expecting a great response from solg, for them it's all about cascabel.
It would be nice for the market to respond well though!
I'm hoping the JORC comes after we are well into a phase 3 of the drilling campaigns, that include even more of the other targets.... that way when the 2mt is triggered in the JORC the actual value any offer will need to be based on will be MUCH bigger.
Add a zero on the end of that pepe.....
Certainly aspirational but achievable
So thier using around $7300 per tonne for copper.
I did think using the current copper price to estimate value was too much, I started using $6000 a tonne to be realistic. Very pleased they are using $7300 pt.
"The cut-off grades used for reporting have been based on up to date third party metal price research, forecasting of Cu and Au prices, and a cost structure from mining studies currently being reviewed. Costs include mining, processing and general and administration ("G&A"). Net Smelter Return ("NSR") includes metallurgical recoveries and off-site realisation (TC/RC) including royalties and utilising metal prices of Cu at US$3.30/lb and Au at US$1,700/oz. "
and
"Low-, Medium- and High-Grade shells equating to CuEq cut-off grades of 0.15%, 0.30% and 0.45% respectively."
Lots of nice snipets all showing how on the money we are, but in a much better lower risk environment and potentially better grades and this is just in our existing PIT scenario. We have the other SE and SW extensions which imo will show some thing bigger and better more like solgs porvenir.