Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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The Rc pit model will be released with tonnages when it’s done. There is an argument to say wether they will wait until market picks up but I don’t see that as the case. It will not affect the ongoing drill programme planning for Ascot either way.
Is likely will just see the new conceptual pit with the financial evaluation, it will not trigger an automatic buy back wether 2mt or not, so they do not need to wait for all exploration to be finalised to release it.
I understand it to be that all the licence is included in a sale too joeman
(Also confirmed by CB in another interview)
Joeman, I would agree that it would seem logical to sell Racecourse and continue exploring Ascot and Footrot. However, I do believe the buy back option is for the whole of the licence which includes the above. Hence the danger of selling us short and missing a potential cadia etc.
I believe ascot and foot rot do fall under buyback as under the same license. Happy to be corrected if I am wrong. I would be happy with a phase 3 drill programme though and park RC at whatever resource
Great reminder.... I think this was a great little interview and I was surprised there was little market response at the time.
But I disagree with your comment about Racecourse waiting for a phase 3 or a phase 4 drilling campaign before a sale. Notwithstanding that the final sale might easily take us well into next year to finally have ink on paper, I would be unhappy if Racecourse wasn't fully declared in the next couple of months.
As Ascot and Footrot (and any other anomalies along the way) don't fall under the buyback I think continuing drilling on them would be a great move.... there could even be a forward sale agreement defined on future value, much the same way that the buyback on Racecourse works....
But to take another 6 months to declare Racecourse after all the communications we have had to the contrary wouldn't be acceptable in my opinion.
Steve, the enormity now and financial implications of the project has clearly increased since the new round of geophys and subsequent gold intercepts. I don’t think it is any doubt it would have gone into next year anyway.
Is looking very much like Ascot and other anomalous targets will be the crux of a phase 3 when operations continue, after the break to evaluate the data from Ascot and to plan the new drill programme whilst working toward completing all the modelling for RC.
CB did say, “We’ll be ‘ending up’ with a near surface programme for both Rc and Ascot.” This may imply that these drills to bolster the higher grade early recoveries may even be in a final 4th phase!
It’s worth looking forward with an open mind and forgetting about any sale on the horizon for now. CB was clearly evasive when pressed by kev Hornsby on talking to AA at end of last midweek takeaway.
https://podcasts.google.com?feed=aHR0cHM6Ly9hdWRpb2Jvb20uY29tL2NoYW5uZWxzLzUwNjQ0MzcucnNz&episode=dGFnOmF1ZGlvYm9vbS5jb20sMjAyMi0wNi0wNzovcG9zdHMvODA5Njk4NA%3D%3D
If the 2mtCuEq does show to come from RC model alone, the overall resource estimate could well be on the way up to a billion tonnes of ore after a 3rd phase. Even better, if both the gold systems can be modelled with decent strike and mass, we could potentially have a billion dollar asset.
If this gets through, this will really kick copper off as well:
https://www.euronews.com/green/2022/07/29/surprise-climate-deal-could-be-the-most-significant-in-us-history-says-joe-biden
Copper prices are expected to rebound further in the coming months after heavy losses, a Reuters poll showed, as China unleashes more infrastructure spending and other stimulus for the economy.
News of more infrastructure projects and support for China’s property market boosted copper prices this week.
>> There is without a doubt huge value to be added from Ascot and would be absolutely irresponsible, even negligent of the BOD not to proceed with further exploratory work if it can take the project continually further up the value curve, particularly with the implications the gold will have on the financial model. Especially now with meaningful income to fully fund any necessary work.
Yes, agree with this conclusion. Also we probably need to wait for the market to improve, or at least the mining sector, before beginning the sales process, so we might as well drill rather than sit on our hands. The income means we can progress a lot further than other similar cap exploration companies, who will be reluctant to raise in the current market.
Been trying to pick up any clues from previous podcast comments and in RNS that would give further indication at what level of further exploration we could potentially expect from a third phase of drilling to follow on at Ascot.
It has been pointed out that all results are in for RC and so the model can be finished. My interp is the financial model will ascertain wether the high grade parcel will be extended up to 8+ years with a follow on, shallow drilling programme. This will be targeted to the north west of RC above the deep intercepts of holes 18 and 20.
From 10 feb RNS
>>> Follow-up drilling in this area will focus on the interpreted shallower and higher-grade 'crown' to the mineralisation<<<
Other clues I can find are, one is a comment made while discussing the gold system at Ascot in that they want to find out what’s above and below it. We know they did a deep drill to test below for the last hole in the programme. As for above it.
Also from 31st may RNS to support that
>>> Our assessment of the drilling results from Ascot is ongoing and we will focus on the potential to extend the gold intersections to shallower depths."<<<
( This is not the high grade crown they will also be looking for, but will add toward the early recoverable high grade ore that could be derived partly from this shallow gold )
from 26thJan RNS
>>> Mineral textures observed within the Ascot drill core could indicate that Ascot sits closer to a feeder zone for the system and the company intends to model and test this theory with further test work and drilling.
(This may have been tested, there are some unidentified holes not yet reported )
From 10th may RNS
>>> Drill Hole BRDD-21-033 targeted an outlying geophysical anomaly to the east and intersected a high-grade gold interval of 15.5 g/t Au which warrants follow-up drilling to test for along-strike and down-dip extension
From 31st may RNS
>>> Geological data suggests that an equivalent to the best mineralised "crown" position above the porphyry at the Racecourse prospect, has not yet been intersected at Ascot.<<
( This will maybe need some initial exploratory boreholes to find it first )
The big question, if criteria are met to trigger the buy back, will AA be approached once the models for Racecourse are complete to persue a sale? Or will Xtract continue to use the safety net of having the binding agreement in place as a deterrent to fend of any corporate manoeuvrings while more asset value is added with each drill?
One thing is more clear to me now, my outlook has changed. There is without a doubt huge value to be added from Ascot and would be absolutely irresponsible, even negligent of the BOD not to proceed with further exploratory work if it can take the project continually further up the value curve, particularly with the implications the gold will have on the financial model. Especially now with meaningful income to fully fund any necessary work.
I’m sure you are probably right Butlerman I’m open minded, it again shows how wildly CB’s comments can be interpreted.
Howezap, I read it as the ‘decision ‘ being whether or not AA buy it. And if they buy it, AA develop it. If they don’t buy it, another big miner will, and they, themselves, will develop it. In this context, the ‘when’ refers to the timescale to sell it - very quickly if AA take it, after being given first refusal, or longer if they don’t take it, and it goes for sale on the open market. I don’t doubt that AA have the money, resources and capability to develop it themselves, if they take it.
That’s my interpretation of the statement anyway. Not saying you are incorrect - it’s just a different meaning from the words that I took.
On listening back to 26 Jan podcast, Colin makes a very intriguing comment!
CB >>>Anglo have got first right of refusal, their approach to this project, their decision will largely develop when the project actually moves on to a much larger company who can handle the very large project that we’re in the business of adding value day by day. <<<
It could suggest that Anglo may take Bushranger back, but potentially they will farm it out to a bigger company than Xtract that will be in a better position to de risk it considerably more to get it to the next level before Anglo then decide to step in. If I am hearing it right that is !! In which case, it’s seems unlikely they will pass on their option to buy back as they simply could not ensure they will be the preferred buyer to take over the more advanced project at a later date from a third party.
Unless, there is a sell on clause attached to an new agreement where, if AA decide to, or agree to pass at this juncture, Xtract agree to incorporate a sell on clause in a new sale agreement the new owners would inherit, when they aquire BR from Xtract. It would see them having to then give AA first refusal once a new increased resource estimate target or other specific level of geological confidence is reached. In return, Xtract agree to receive a future sell on royalty payment or other incentive of the ‘next’ sell on back to AA or other.
What do others understand from Colin’s comments?
Actual comment @ 4min 50sec but listen carefully too, from 4min he speaks freely as though he already knows AA’s intent
https://podcasts.google.com?feed=aHR0cHM6Ly9hdWRpb2Jvb20uY29tL2NoYW5uZWxzLzUwNTExMzMucnNz&episode=dGFnOmF1ZGlvYm9vbS5jb20sMjAyMi0wMS0yNjovcG9zdHMvODAxOTQyMQ%3D%3D
are you in or are you out
Think Lucky was saying, if the info on the model was released before the AGM happened then that should be good.
So on above we have up until 23 August for modelling info to be released.
LUCKY520, The agm came first. Is that good or bad?
"Well if everyone here wants to know if the final model is good or bad, you will know by which comes first, the AGM or the model!!"
At 3pm. The other agms out of the way earlier. Plenty of time for questions.
23 August Great Queens Street
Speaks volumes…
https://www.bloomberg.com/news/articles/2022-07-28/anglo-american-s-new-boss-sounds-warning-on-future-copper-supply
Not just BZT, but AFP and Kendrick. 9.30am, 11am and 1pm on 23rd August.
Bezant just released AGM calling notice
Surely we will get an RNS soon?
Today ?
Imminently? :)
"In the Zak team interview from December there was a lot of weight put on visuals from drill core 36, with mineralization from 11mtrs for 100s of metres, but no assays have been released for it."
Yes, 36 looked very promising.
Another example of a news void which could be interpreted in one of two ways. Either CB is keeping this result "close to his chest" as it will reveal too much good news , or despite the high hopes of the visuals, assay results are very disappointing?
The AGM is going to be very interesting and CB will surely have to give some clarity on a number of issues. That's unless we are soon to get that clarity before the AGM?
I think this is a big problem, people taking what Colin said nearly 12 months ago as still being true.
In the Zak team interview from December there was a lot of weight put on visuals from drill core 36, with mineralization from 11mtrs for 100s of metres, but no assays have been released for it.
Would Colin still tell AA where to go if they offered 10p a share today? Next week should see the AGM announced, so we might get some answers.
Looks like Biden is going to get his climate bill passed. Good for copper!
"The bill aims to tackle global warming by using billions of dollars in tax incentives to ramp up wind, solar, geothermal, battery and other clean energy industries over the next decade. "
https://www.nytimes.com/2022/07/28/climate/climate-change-deal-manchin.html
Lucky I look at the investors list every other day to see if there are any new purchases or sales, the last update was about a month ago and only change was Alex Terry he had purchased another 1,450,00 leaving him with a total of 46,450,000, I don't think there has been enough selling over the last month to create panic.
I remember him on the video. I'm just more sceptical because they bought in on only the length of the mineralisation, they didn't know the grades at the time.