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RNS 19/11/19 - "Reverse circulation ('RC') drilling will be employed to provide quick progress at reasonable cost. & Approximately 800m of drilling is planned at each locality and assay results from both properties will be reported as they come through during the next few weeks."
Now at least the full expenses and profits will be All Xtract. Whomever starts the hard rock what ever the deal Xtract slice will be Xtract’s So in the end whatever will be will be looking forward to mine starting.
Hello Andrew, that is one of the reasons that I also quoted CB but then I had a meeting with him and he said the large boulders couldn't be processed so were left in situ and these were the Rocks that get in the way. Then the grindings resulting from processing have to go somewhere so are spread over the area they came from. Consequently there is little benefit obtained from the alluvial works.
I guess they could drill exploration holes between scarification and tilth repatriation, but that would probably take more organisation than is actually practical?
I remember many people saying the same thing (including myself) some time ago but , having looked into the legal obligations needed for ongoing alluvials production, it seems this is not the case. In simplistic terms the surface is sacrificed, ground into small particles and returned to the same area it was taken from The displaced families that made way for the work to be carried out then return to their land which is now much more cultavatable as there are far fewer rocks and boulders, so the alluvial production is actually beneficial to the indigenous population.
When I comes to it, any rubble covering hard rock excavation targets can very easily be removed (because it is not a production target) and any alluvial work done above the hard rock target just makes it easier to remove the finings that are the by-products of the refining process.
So, yes refined surface tilth is better than boulders, but not a defining factor for enabling hard rock production.
Speaking of which, I certainly hope a definitive RNS is on its way with an update on the progress with initial hard rock production.
Before Christmas would be good for shareholder's morale.
Sorry, just seen your post. Been away. Nexus arrangement was a legacy issue going back some time. Can't remember the full details. I think we owed them some money - but had none so made the arrangement!
Nexus going doesn't mean the alluvial production is about to go south. If Sino Mk2 went then that would be more significant. Don't forget the alluvial work was not done to generate an income stream for Xtract, its what we have to do as an enabler to do the hard rock mining.
I'll top up and average down when this hits .6 again. Didn't the last time but wish I did as a few days later it hit 1.8 lol. Wish I was a trader and had the balls to sell out but unfortunately I am an optimist and also set my outs too high. Have a good weekend all.
Nexus were in only for the alluvials, due to some jiggery pokery at time when they had seemingly been looking to buy the whole concession/ had carried out some proprietary work, bought(hired some equipment?) at end of the Jan days. Thereafter a thorn in the side to an extent, but not involved in anything but the alluvials.
Andrew, as you obviously know more about xtract than I, can you explain to me what Nexus brought to the table? Also the RNS is a contract for Alluvials so are Nexus still involved with any other contracts with xtract? Cheers
Your more negative view is a welcomed alternative perspective to those that can't see any possible down side to this. And for balance it's welcomed.
That said, the perverse 'advantage' we have with alluvial income is that its so low that if it doubles or halves it will not make a significant difference to the rerate possibility or share price - as we saw this afternoon with the RNS.
Lets say you're right and alluvial income falls. Current Alluvial income will have to fall significantly for the future net levels to be worse than the current 50% deal. I doubt that will happen. And even if it did we may be looking at a few $K a month less profit (not revenue). Here's a Brucy bonus that many may not know. We still have over $100K of unsold gold (check all RNS for quarterly figures and you'll see)
In addition, Nexus can't 'know' what the future alluvial grades will be as by definition, alluvial income is random and a lottery. Moreover, and this probably is the most important point, If it was as bad as you say then Sino MK2 would be the ones leaving. I bet they are more than happy to stay looking at the money they are making. Alluvial production is very profitable and plenty of money is being made - Just not by Xtract or Nexus!! I see it as simple as this. Its small beer for nexus so they are off to make more money somewhere else.
Any future rerate will be driven by FB. Detailed, DFS, robust, costed, known project. Copper plays are unknows which may or may not be profitable.
Good evening all, I take the RNS to be bad news!! If there was money to be made then why would they have terminated the contract??? I assume the Alluvials are bad, possible getti g worse and they are cutting away before they lose money! Maybe they have a better prodject elsewhere, who knows. I'm starting to think CBs buying was just him trying to give confidence to the market.... Well it didn't work and I for one am starting to get a little impatient with CB and the company. I think we will not see any good news this year or next untill about Feb/March. I'm afraid all my optimism has gone and I'm now becoming sceptical. I'm losing trust now. I still believe there is some good stuff to come but I don't think this will have a decent effect on so until the second half of next year. GLA hope this isn't followed by problems at kelengwa which is supposed to be above board!!!!!
An RNS which heavily implies that income will increase must be good news - so the RNS is good news. I say implies, as we don’t know what the future alluvial income figures will be.
However, the reason for just only one small buy after the RNS is probably because most now realise that the alluvial income is peanuts and will never be the driver for a rerate- even when that income potentially doubles ! The catalyst will be Fairbride income, not money found down the back of the sofa.
We also have the possibility that we have to pay over $100K in settlement. However, even IF that happens it will only mean that the potential extra money (from the doubling of the share agreement) is delayed a few months. So even in that worse case scenario - it isn’t that bad.
So why did nexus terminate the agreement. The alluvial income is so small beer that it isn’t worth continuing with this arrangement. They may have been waiting and hoping for production and grades to improve but they now know that’s very unlikely - so have gone.
All in all this this a positive RNS, but nowhere near as good as some would like to believe. The fact that there was just one small buy after the RNS says it all.