Rainbow Rare Earths Phalaborwa project shaping up to be one of the lowest cost producers globally. Watch the video here.
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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.
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.
Sorry typo
“Couldnt finance this”
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.
Thought i would check all the trades today as I thought there were more buys than sells, yet we ended the day status quo against Friday. I backtracked all the delayed buys to the price at the time of the trade, and they were all fairly obvious if they were a buy or a sell. Results: Volume of 1,372,914 buys Versus 1,444,926 sells. A difference of 72,012 in favour of sells. So in other words, the MM's made a nice packet of dosh today trading 2.8m shares. lol
Yup all those that needed to sell gone today, back to a shortage of available shares on the market now much the way its been for at least 9 months. We at 15m market cap with some of the most exciting gold prospects out there and Mark Creasy on board.. unbelievable really. I'd of thought this market cap was cheap for the US assets alone let alone WRE which has outstanding proven potential and holding exploration potential as well. With gold prices where they are and unlikely to see any major decline I'd be suprised if we didn't see a quick and substantial repricing to the upside.
I hear you SJH. If you look at the trades yesterday, most of them were what I would call "junk trades", there was really no evidence at all of concerted selling by major holders. Just 1 X 200k, 1 X 150k and 1X 100k, on a volume of 2.8mn which is less than 1% of the company. This share is still very tightly held.
Someone was also questioning why WRE was put through business re-organisation. I have n idea about that as someone who has been through this process before,. If you are a sensible business person, its a very neat solution to quite a few things and cleans up very potentially messy situations. 1) Creasy, as the major creditor would always be in control of the process, but much more importantly re-organisation would achieve, 2) getting rid of all old debts to suppliers (if any) and 3) would ensure a sale of up to 100% of the company totally wiped clean of previous shareholders and potentially a useless Black Empowerment operator (and there are many of those in South Africa). This is great for Creasy, great for LEX. Clean clean clean!! The government sponsored process GUARANTEES a shiny new asset which has been totally laundered of any nasties. It will be interesting to know who LEX chose to become their BEE partner. There are actually some very good ones too.
Most reservations I've heard put to bed by the man himself.
[LINK REMOVED]
Not sure why my link below was removed but check out Vox markets interview with Bernard Oliver if one so inclined.
Agreed, However, you can't ever keep everyone happy, but I thought the bit about the depths of the prospects at 2-400m is very telling. You don't even need to put shafts in at those depths, you can spiral down and put a basic rail transport system in as I understand it. MUCH cheaper........... I am sure that we will hear more about this as things develop. But really, it seems to me that it is the absolute massive size of what we seem to be getting into that is fascinating, not to mention game changing. Going from 0.22mn Oz to potentially 37mn, is pretty bloody amazing.