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19th Dec 2022
Further Plans
Now that the maiden Ascot Prospect Mineral Resource has been estimated and the Racecourse Prospect Mineral Resource updated with all the Phase 2 drilling data, Xtract has again contracted independent consultants Optimal Mining Solutions (Pty) Ltd to update the Bushranger Project open pit mining study. The update to the open pit mining study will examine the economics of a 25Mtpa open pit mining operation extracting both the Ascot and Racecourse Mineral Resources. Xtract estimates that the update to the open pit mining study will be completed early in 2023. Following the updating of the open pit mining study, Xtract will determine the optimum way to further advance the Bushranger Project and advise shareholders and the market early in 2023 of the Company's plans for the Project.
>> Xtract will determine the optimum way to further advance the Bushranger Project and advise shareholders and the market early in 2023 of the Company's plans for the Project. - Bird stated, verbally so sack of salt required, there would be more drilling based off the results/guidance of the open pit mining study.....
"What would prevent getting on with the drilling immediately? Cash flow? Availability of rig? Lack of motivation? Weather?"
Maybe awaiting the ES report to know what "gaps" need to be filled and where best to do the infill drilling? Of course lack of funding and waiting for FB to keep ramping up could also be a reason ?
If further drilling was to be embarked upon, which is seen as a possibility since being floated getting on for 2 months ago, would drilling not have begun already? And if drilling had commenced would we have been told it was underway?
Any views on historical precedent from prev drilling campaigns?
What would prevent getting on with the drilling immediately? Cash flow? Availability of rig? Lack of motivation? Weather?
What can be expected in terms of cost and time to complete the next drill campaign?
From ascot MRE podcast, CB quoted that drilling will be targeted toward adding to the resource, targeted toward adding value, …..‘or’….,targeting to parts of the resource that need further infill.
Say an 8k metre campaign, 10-20 holes dependant on depth at cost of $250 per metre drilling and a realistic drill target of 2,000m per month that would cost about $500,000 per month for 4 months then another 2-3 months assays and modelling. so about $2m plus other costs associated for a further drilling phase taking approx 6+ months.
We can assume assay labs will be quieter relating to the market values of companies in the mining sector being down affecting that ability to generate funding to progress projects. There will be a slow ramp up in activity in ‘23, I would guess.
The …or… comment is the interesting one. I expect infilling to the higher grade 0.33%Cu parcel for early CapEx pay back that will be subject of a PFS so is potentially required to be converted to indicated on top of the 50mt current indicated resource that is only at 0.25%Cu
Initial mining phase for CapEx payback stated as about 4yrs so 20mtpa x 4yrs = 80mt indicated resource is the minimum that needs to be converted to a probable ore reserve from the high grade crown that a PFS can be based to satisfy AAL we have the ability to head toward funding.
As for cost of a PFS, a simple search would imply anything from 0.5% up to 2.5% of overall project value and can take a further 3-5 months to complete.
Is only my opinion of course based on what is already known so far.
Any thoughts?
Hi Eastern, I do think the main arguable point being is that CB has done a ‘necessary’ job in keeping shareholders interested with heightened expectations to get the market cap as high as possible to minimise share dilution from the fund raises that were had in ‘21 and any subsequent needed to follow on with a third phase. Potentially why he continued to suggest that the 2mt was achievable well into Q3 ‘22 as there were no guarantees up to a certain point that Fairbride was going to go into production.
There is no doubt the global economic downturn has been the single most contributing factor to the share price drop through ‘22 and in part, toward the market reaction when resource statements were released, along with the resulting disappointment from CB’s previous rhetoric of not seeing the 2mt.
With more income now from Africa, we do seem to already be seeing, and hope to continually see, a more pragmatic approach with reporting from CB as there should not be any further need to exaggerate optimism, particularly ‘If,’ the treasury can support the next drilling and other technical work required to get to the next decision point.
Howezap, how does that saying go ? 'In vino veritas.' You are correct, we waste time listening to CB's comments on Roast or another media platform. He has no credibility, his wishful thinking and optimistic statements simply do not bear out. All we can trust are the numbers in the RNS and even then, that is a qualified comment as they can be vague and conflicting, especially when you look at the quarterly mining updates.
I remain invested in various of Colin's companies but admit l don't have a clue which projects will provide the best investment and which will fail. These days l just remind myself they are all just holes in the ground. But hopefully one will be the 10 bagger .......
>>>Either way seems they are only interested in rampy comments
Exactly, I really don’t see the benefit, which is why I have never bothered. I understand it is actually a good platform as you can post pictures and charts etc to share research. But without, I would guess any challenging opposing views that create healthy debate which is normal on a public forum. It is not for me.
Much prefer the amateurish forum fodder we get here from rinsing as much as possible out of another of CB’s puzzling comments from the latest paid for promotional podcast.
In jest of course, p issed again
After listening to so many of the roast "interviews" on many of CBs companies, its clear to me that the roast boys are nothing more than CBs "head of public relations". Couldn't agree more A4444.
I was recently been removed from the Roasts Telegram forum for responding to a question 'Would you invest in another CB company' - I, surprise surprise, responded no and gave reasons based on my experience here which were around Bird's failure to meet deadlines and over exuberance (misunderstandings) RE:2MT in the bag.
I asked them why on the GLR forum and they claimed ignorance....Perhaps it was Bird himself! Either way seems they are only interested in rampy comments there which I guess is fair enough considering they are probably pulling in $$ from CB (us)...
I can't fault the logic of assuming we may be in the queue of this PR campaign, but tbh I'm not that bothered even if we are.
After listening to so many of the roast "interviews" on many of CBs companies, its clear to me that the roast boys are nothing more than CBs "head of public relations".
They are doing what Alistair Ford should have done. And doing it better than he ever did.
All great PR, but it will offer nothing to anyone already invested and for many on here we know to take, not just what Cb says with a sack of salt, but also the comments of the roast boys. They seem to get just as excited as CB when talking about the projects and never challenge him on any of his failures ( timescales or output deliver)
It should be seen for what it is -- a paid for promotion.
>>>CB having a PR drive of his various companies, with podcasts in fairly quick succession- ?Kendrick 1st feb ?Galileo 3rd feb ?African pioneer 6th feb
Another Galileo podcast this morning, who’s next??
Tick Tock
Hi howezap
Quite right to include all the permitting costs and time. These could just be estimates from recent ones done for nearby mines. End of life sometimes also includes environmental remediation. For example, an old mine or quarry might make a nice boating lake and nature reserve afterwards. I think you are right though, the actual permits would be obtained as part of the DFS not the PFS
Not me Gixxer :)
but I am adding 100K once a month if under 2p
Sorry to say but those two 2.1m trades look like two transfers to me as ask / bid hardly moved. Buys or sells, I thing they would have significantly changed the bid / ask if they were genuine buys or sells
I was hoping we were going to get an RNS saying CB has bought again.
Steve's back :)
A4444 buying up the company!
A couple of big rades amounting to £80k went through an hour or so ago and they look like buys to me. Surprised there's no reaction to the sp.
Maybe Cela looks at the xtr share price every 6 months nowadays.. towards staying in line with the pace of diclosure Mr CB has - 'decided to' - set here in more recent times :-)
Such pace for additional Bushranger disclosure I somewhat get, albeit grudgingly.
Such pace for Manica 'ard I'm genuinely annoyed by. I understand that it's a slow(er) ramp up, but it's a live production situation and so more colour than the recently offered 6 monthly update is a very - very - small ask imho.
That Manica 'ard revenue is the key progress driver here in 2023.. not least as the pace of its grow out dictates the pace of Bushranger further resource discovery.
In the afore context, I can't be overly annoyed at where the s/p is at around now.. albeit I think 2.5p ish around now would be fair and reasonable.
Sub 2p or not, It's not about the current sp, as an investor it should always be what is achievable from asset potential and Market capitalisation.
Some people have slightly slower reaction times than others it seems.
Oh and, Merry Christmas !!
erm ... its been under 2 since before Christmas.
Is your 'shock' a little disingenuous maybe?
---> "Carnt believe this in now under 2 now and probably heading to 1.5 shocked"
‘As for POC tankng by 20%. Thats exactly why the majors do their calcs, before a buyout offer, at discount to current POC. Cadia new resource used $7700 POC in their calcs when POC was much higher’
My point is that delaying release of a PFS or whatever on the basis of the POC means that we could have to wait for 12 months, 24 months, who knows? After all the current POC is historically high. This is not a sensible strategy. Can’t believe this is what Colin is up to or planning
Carnt believe this in now under 2 now and probably heading to 1.5 shocked
Hi zaphoid thanks for sharing the geo for investors article. What I found of interest, being a part time eco warrior and environmentalist was this….
>>>Environmental protection, permits (legal and social), and the eventual closure of the mine must all be considered during this phase (PFS)<<
An Environmental Impact Assessment is a requirement to ‘allow’ continued development and for during the eventual mining of the ore reserves. It usually involves ‘many’ specialist consultants from areas such as archaeology to flora and fauna to potentially geo hydrology as there is a stream that crosses the deposit that would potentially have to be diverted or other.
Its aim, will be to show a baseline for a company to monitor and manage its environmental impact on the ecology, the environment, as well as on the local community throughout development and operational stages.
However, an EIA is usually carried out prior to a definitive feasibility study as is not a necessity at Pre feasibility level, so is unlikely one will be required by Xtract as the project is looking to be sold after a PFS and not be further developed.
Only mention, as EIA’s are rather expensive as will be the PFS, which I believe could be a trimmed down version that focuses more on the economics and mine planning phases. Just a hunch could be wrong.
https://www.geologyforinvestors.com/starting-a-mine/
Some more information on feasibility studies for newbies, and less experienced resource investors. We were all there at some point.