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Solid progress
Nice statement
This is a significant milestone. In a little over a year and one exploration season, we have transformed a historical copper deposit into a large JORC Inferred Mineral Resource in an infrastructure-rich region. Our Company is now underpinned not only by its highly prospective exploration licences but by a significant critical metal asset in the ground.
"At over 20Mt, Verkhuba is in the top third of this style of VMS deposit globally. With copper at close to $10,000 per tonne and the prospect of a low capex, open pit development, we believe the Deposit to be of considerable value. In the context of East Star's current market capitalisation, and upside from other regional VMS targets and copper porphyry exploration supported by BHP Xplor, East Star is in a very good position to create further shareholder value in 2024."
Who said this who said that won’t change anything and most certainly won’t stop the share price hitting 7p plus in the next few weeks
Oh, one final point Crofton:
"I've seen his comments on the EST telegram group when he was challenged on this and clearly he's not just made a genuine mistake with the details."
Prove this. You're welcome to tag the comment in the group. Or apologise.
Crofton:
1. "East Star commissioned leading resource advisors AMC Consultants to determine an independent JORCcompliant Exploration Target for the Verkhuba Deposit. This work resulted in March 2023 in the generation
of an Exploration Target of 19-23 Mt at 1.0-1.4% Cu and 1.0-1.4% Zn (1.4-1.9% CuEq), defined by 97 drill
holes comprising 42,178 m of historical diamond core drilling, reviewed by the East Star technical team over
the preceding 12 months."
2. Correct - I put £ rather than USD.
"Alex clarified this explicitly on the presentation that there is no drilling at this stage" - What, you think they will spend $500,000 on solely identifying drill targets? Naturally they will want to get a hole in the ground for that money once they've identified a target.
3. " how many of the previous Xplor cohort got additional funding" - Like KRM on the ASX, it's all contingent on actually finding something that piques BHP's interest. That's the point in BHP funding these juniors.
4. "He lost me completely on spending the placing money to get cashflow soon. They still need to do the scoping study/PFS, it's a quick route to production but he seems to be over-egging it deliberately." - They're in talks with multiple parties. They don't need to pay for a scoping study if somebody wants to buy it, or if they end up farming it out.
And if interested parties want to purchase more advanced projects? Then they'll ask for something more advanced. But nobody is paying for or demanding a PFS on a project that has options for nearby tolling. The entire purpose is to AVOID these costly endeavours, to generate some sort of cashflow.
We'll re-visit this if/when the deal is announced.
I took the reference to cashflow soon to mean a likely farm in or JV.
Correct on the Jorc, tho, est at 5 to 6Mt on the open pit alone, not the 19 to 23Mt he quotes. And yes, unwarranted assumption on further BHP funding. Well pointed out.
Gets a few details wrong and flat out lies about a few things. 1) JORC is for the OPEN PIT only. I've seen his comments on the EST telegram group when he was challenged on this and clearly he's not just made a genuine mistake with the details. 2) The BHP grant is $500k not GBP. He says they're drilling with the grant money. Alex clarified this explicitly on the presentation that there is no drilling at this stage. Also, he alleges that BHP are providing further investment. Unless he's a BHP insider, there's no guarantee they will and how many of the previous Xplor cohort got additional funding? 3) He lost me completely on spending the placing money to get cashflow soon. They still need to do the scoping study/PFS, it's a quick route to production but he seems to be over-egging it deliberately.
Copper demand to boom as new technology drives power consumption, Trafigura says
https://www.reuters.com/markets/commodities/copper-demand-boom-new-technology-drives-power-consumption-trafigura-says-2024-04-22/
10 million tonnes more demand a year- an extra 40% demand.
Worth reading. Not a poster I'm familiar with, but he appears to sum up the case well.
https://x.com/GungHoStocks/status/1782146358280888828
Will shortly be £15 mill market cap plus
Ridiculously cheap with what’s to come
3.46 & 3.49 are actually sells. MMs can't keep this down any longer...
3.50 to buy atm
Https://open.spotify.com/episode/1GcB4wPKKLLPPRB0TXv2z7?si=VK3kpjftQcKGeFCNcA4TmA
Good mention on Sunday Roast towards the end
How the hell is this still so low on market cap lol
Good read on porphyries. https://www.mining.com/porphyries-deposits-holding-the-winning-trifecta-with-copper-gold-silver/
Why all this placing talk? A decent FO would take care of funding into 2025, or mb even longer.
Imo will be 10p plus
Placing jitters helped a few out to be able to buy. Simple fact is they raised last October to cover this year's drilling/field work. There's money from warrants if this goes high enough for them to convert and Verkhuba deal will give them plenty to kick on with. Alex knows how to get maximum value out of every quid spent.
A large spread so Monday looking good for news
Monday would be a good day.
Not many shares available.
MMS can level it up in a heart beat and they will next week when Jorc rns lands
Coming. Jorc rns next week hopefully
The material uncertainty is standard yes, but not many companies outright say they will raise funds- points for honesty I guess
The audit report is not qualified and is prepared on a going concern basis so the Auditors are happy that whilst the risk exists it is unlikely to crystallize especially bearing in mind the recent developments which supports that stance.
Alex Walker, CEO, commented:
"East Star believes the value of Verkhuba alone significantly exceeds the
current market
capitalisation of the Company and as such will only consider proposals that offer a fair valuation for shareholders and exposure to the near-term production potential of the Copper Deposit at a time when a multivear copper bull market is being predicted by most market analysts.
The open pit and underground potential of Verkhuba have been demonstrated by the modelling of more than 46,000 meters of drilling and numerous geological interpretations by independent resource consultants. There is around 1.4 million tonnes per annum of excess processing capacity from two third-party concentrators within 52km by road of the Copper Deposit. With power and water easily accessible on site, the opportunity for Verkhuba to be put into production quickly and with a low upfront capital cost is compelling and reflected in the interest received to date.
We look forward to undertaking this process while planning continues for the field season, including advancing a number of exciting VMS targets in the licence package towards drilling, and progressing
Our porphyry and sediment-hosted copper exploration strategies."