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Hi there Panda, re your point about he Jelani JV with Harmony being too deep. That is not an issue, there is already a mine , 3 mineshafts in place with all the ventilation etc. Go to Harmony's annual report and look up the Target 1 mine I think it is. As to the others, the RNS states that the targets are between 300m and 1200m deep. Its the Jelani JV with Harmony that is deep, I am sure that the company will clarify the depth of the others sooner rather than later, but White Rivers was quite unabashed to say it was looking for shallow mines or mines with infrastructure already in place.
Someone else mentioned dilution, as I said earlier, if I am getting a 16,000 times potential uplift in reserves from what we have already, I don't really care if the dilution is 75%. I've still got more money in the bank. Worth also noting that there has been lots of drilling there already. If it can be proved that the old drilling is accurate by punching a few holes nearby that match the old results, you are allowed to use all the old results for JORC purposes. Therefore, it may be nowhere near as pricey as you think to get serious upside from here.
As to Creasey's motivation to sell, well I am not a mind reader, but he is getting on a bit, 78. and he still has a ton of stuff on his plate in Australia from what I can see. But really, perhaps we should be focusing on the fact that he still wants in, hence the option, which he is PAYING for.
Anyway, time will tell. It will all out in the end!! I am still massively excited by this and am looking forward to learning more.
What is the current cash position as the company will presumably need to spend a large amount on drilling and feasibility studies to prove up the licences?
Great to see the SP continuing upwards and this makes sense considering the potential increase in reserves.
However, I do have quite a few initial concerns...
Oh no, it's in Africa again - I remember all the troubles in Tanzania. I can't see RSA being much better. I have shares in Thungela and even for lowly valued coal in comparison with gold, they have infrastructure and crime problems aplenty.
The reserves are only independently verified, not JORC.
How aligned are the goals of WRE and BBBEE - is this likely to be the cause of future friction?
Looks as if no open-pit mining, so extraction costs will be higher.
Issuance of additional 110m shares, conditional admittedly, will dilute us nearly 40% - we need a high confidence level the reserves are as stated.
Do we really want to get into possibly mining?
WRE was in business rescue - why was this and why isn't the wealthy Creasy able to bail it out himself?
On the plus side, BoD members have experience in RSA and the tenements do seem rich.
What an outcome. I'm on a free ride now - big congrats to all those the held there nerve over the last 12-18months.
Sorry typo
“Couldnt finance this”
Panda1 good post how come super rich Mark Cresay couldn’t find this or anyone else I mean look at how much drilling has already been done is it the risks of local organised crime in mining or the political move towards BRICS and how much dilution coming to fund both projects.
The millions of gold oz could be there but it has to be proven and then extracted or sold on I would like management to fill in the gaps before I add.
Deep mining. very expensive. other SA mining listed in UK struggling on v cheap valuations.
I had a quick look at the lead prospect on the licences where there is a JV but the gold resource appears to be 1km to 2km below ground. A deep underground mine would be very expensive to develop, possibly in the $billions. Has anyone managed to find details of the scoping studies that are mentioned in the RNS as that would provide some interesting details? It's good to do a bit of research on the potential transaction before jumping in, especially when the share price has risen so much already. It would also be interesting to know why WRE has been in business rescue proceedings since January and wasn't able to secure finance.
I have now picked myself up off the floor and I can confirm that I WAS NOT Hallucinating when wrote below. Its real!!!!!
See below the presentation from 2017:
http://www.shango.co.za/wp-content/uploads/2018/08/White-Rivers-Exploration-April-2018.pdf
Fantastic news
🧢 off to all LTH
Enjoy the ride folks
👍
Wowweee!!! I am just picking myself up off the floor after a brief scan of the announcement. So they were not joking late last year when they said they were talking with parties interested in doing things with LEX. And guess what? Its in South Africa, where CEO Bernard is from and where Chairman Ed Nealon had some of his big breaks with Aquarius. Rumour has it that he knows the Witwatersrand from days at Aquarius Platinum. In a nutshell:
1) LEX is acquiring White Rivers Exploration, previously owned by Mark Creasy, Australia's most famous private prospector. Most of the listed vehicle he invests in "turn to gold". He has an incredible track record!
2) We are acquiring 5 properties which have had varying amounts of drilling on them in the past.
3) They reckon around 37mn Oz are in place though needs to be further confirmed as a JORC compliant resource.
4) One of the prospects, Kroonstadt, has up to 60+ million oz, and is effectively a new gold field.
5) The geology of this area is some of the best known in the world.
6) There is a joint venture already in place with Harmony Gold at their Target Mine.
This is mind blowing. We are morphing from a junior miner with only 220K oz, to potentially a monster with nearly 40mn or possibly more oz. There are only about 10 companies that have 25mn oz plus in the world. We potentially could slot in at No 8. And yes, there will be dilution, potentially up to 40%. But if that is the price for upping our reserves by 16,000% from 220K oz to 37mn oz, I will happily take that.
Strap on your seat belts!!! Oh, and yes, Fill yer boots!!!!!
Crikey the ask is now 9p. I was quoted 8.3p to sell just after those 2 x 50k buys went through just before close. This share is amazing, such little free float available. 11p broker target hopefully reached very soon, especially if news lands. Any sale news would be very welcome too...
Hahaha Doggy!! I actually have brokers that speak real words too as opposed to a computer screen!!! If Laurel and Hardy have a number, would live to have it, then I can have a broker that not only is human (Yes!! Really human!!) but also has a sense of humour!! This would be an unbeatable combo. And yes, of course, the suggestion that the fundamentals of gold as a commodity could be driving this move as well as the "PH" factor, could be bang on.
Rose ,who are your Brokers , Laurel and Hardy.
Rosetinted,i reckon you had been on the Rose a little too much. Your brokers contacting you. That was funny.
I think, looking at the macro, gold is becoming more scarce. Looking at the way China, Russia and other BRICS nations are buying it and so are all the central banks. I think a gold standard currency is on the horizon. Closer to home, maybe some people see the potential with that in mind GLA
A couple of my brokers have been in touch with me and said they reckon MM "PH" are short..... and have been bidding it up. Can never be sure, but even MMs get it wrong sometimes!!!
There are 2 'unknown' trades totalling about £30k according to the trades page so if they are actually buys then that might explain the big shift. It is odd for such a big move on no news, even for LEX. I will be a happy boy if this really is the beginning of a change in fortunes as I've been here since 2009 and my patience is wearing a bit thin.
20% + on no RNS, something leaky ?? Or just about time, 👍
35k shares being bought made the share price rise 0.5p (from 7.5 to 8p)....bonkers
8p on the Ask... ive been quoted 7.6 to sell (which i wont be doing!)