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I think it was a good question to ask, had the due diligence not come back as good as it did, they wouldn't have proceeded to exercise their option to buy.
Timber Trader is also correct in that you do have to commit to a certain level of exploration work as this prevents all the Majors coming in sweeping up all the licences and simply sitting on them.
The present system works well to enable juniors to explore prospective land holdings and as we've seen recently with the likes of EEE and Azure minerals operating in the same region as WSBN, it only takes one decent drill program and 10x 20x 50x returns can be seen quickly.
I actually think the potential here from such a low market cap / oversold position could be a lot more with such a battered down share price.
Initial Target price of 8-10p+ by summer with some decent drill results coming in isn't unreasonable imo.
Then, If we then drill down to 800m-1000m + at Red Setter (well below the permian cover) similar to those Havieron drills (as is planned) that hit decent grades over wide intersections then sky's the limit really for year end SP targets.
Strong buy from these levels.
GLA
OK makes sense. Thanks for your answers
WSBN had already signed their option to aquire the lease before they undertook their due diligence
That means the licence holder was obliged to sell this ground to WSBN for the agreed option amount regardless of what they found.
WSBN got the geos onto the license and as results have come back so good they exercised their option.
The tenements are within the Mosquito Creek Basin area which is attracting heightened exploration interest from several companies, include Novo Resources.
Novo's exploration leases, which have had successful recent exploration, have several major structures which continue into the Wishbone leases
Their market cap is £58m
I'm only guessing, but if you don't explore/mine, or further explore/mine, a tenement, over a certain period of time, then you often have to surrender it. I'm not saying that's the case here, but it's one possibility.
If it is so prolific in gold nuggets, why was it sold to WSBN?
Just as a side point, as an investor in any gold mining company, I always like to check with them, on a regular basis, like shareholder meeting, where any gold nuggets are located, stored, and inventoried.
"Due diligence at the site revealed "significant gold nuggets" of up to 78.5 ounces, and historical chip results at Mosquito include 117 grammes of gold per tonne of ore"
If there are significant gold nuggets already discovered of 78.5 ounces
@$2050/oz present price of Gold.
The company has already recovered gold nuggets valued at $160,925 from just the initial field work and due diligence whilst collecting surface samples.
Clearly an exciting prospect indeed and undoubtedly within a highly endowed gold region.
I'd say the chances of ongoing exploration success at Mosquito Creek look really very promisng here.
Cashed up now for the next planned drill program
located in the prolific gold area of Mosquito Creek, in the Pilbara Region of Western Australia.
Due diligence already completed ahead of drill program
· Geologists confirm the presence of significant gold nuggets on and within the Crescent East tenement package.
· The tenements are well endowed with gold, with historical rock chip results from within the project area that include:
o 95.5g/t gold ("Au"), 91.8g/t Au, 117g/t Au (original + 2 assays) (#800284)
Crazy cheap market cap here atm considering all the various land packages and cash held + Government grants.
Managed to grab some ORR recently on its lows around 3m m/cap when no one wanted it.
It's flown up 400% since.
Won't be surprised to see the same SP reaction here as we head into the next sessions fieldwork and even then at 12m m/cap will still be cheap.
Expecting Gold and Silver to go on a Major rally as rate roll over this year and funds pour back into these junior Goldies.
Happy to be loading up down here.
GLA
WSBN to follow this route in time imo
https://twitter.com/GreatlandGold/status/1753297802812121389
Well small caps do need to raise cash to survive. In fact it's their raison d'etre to be listed on AIM, so any placing above the current depressed prices is good imo. Let's face it everyone has had the opportunity lately to acquire stock at ridiculous levels (imo) recently compared to historic prices. :o).
Sounds like a strategic corporate investor
GLA
Wishbone Gold Plc (AIM: WSBN, AQSE: WSBN), is pleased to announce it has raised £300,000 gross to one corporate investor at a price of 1.2 pence per share and will be issuing a total of 25,000,000 new Ordinary Shares of 0.1 pence each (the "Ordinary Shares").
This small placing will provide additional working capital for the Company but importantly will primarily be used to initiate exploration operations at the new Mosquito Creek property in the Pilbara.
Richard Poulden, Wishbone Gold's Chairman, stated:
"When raising fresh equity the board is mindful of dilution especially when share prices are depressed but has decided to do this micro-placing to secure the exploration funds needed for the recently acquired and very exciting Mosquito Creek gold and lithium project in Western Australia. The summer season, which is both hot and wet, is coming to an end in the Pilbara and we are preparing to mobilise our exploration teams back out into the field as the weather starts to cool down. We see Mosquito Creek providing real value to Wishbone Gold shareholders in 2024."
Application will be made for the 25,000,000 new Ordinary Shares, which will rank pari passu with the existing Ordinary Shares in issue, to be admitted to trading on AIM and the AQSE Growth Market ("Admission"). Dealings are expected to commence on or about 8 February 2024 and the issue is subject only to Admission.
There’s the code 1 RNS
Raised 300k to single investor at premium 1.2p
The old 1 code trade! News next week or weaner finally buying in 😂
The location of operations with WSBN is a brow raiser when you compare with GGP
Also WSBN operating out of the same camp
Can't be the only one that's noticed that these ridiculous orchestrated drops in AIM company MCAPS are becoming the norm. Pushed so low on nothing but lack of overall liquidity that a technical bounce on news becomes obvious. Been buying here and Kod but it could've been BMN, or POW or many others in the mix on my hit list. GLA. :o).
Just done the same
Ridiculously low sp, IMHO!
The WSBN tenements in WA alone, with absolutely nothing, are worth considerably more than this sp, and, what's more, in the most desired, prospective, gold/copper areas in the world right now, and the safest jurisdiction. Topped up again @ 1.09p. No brainer!
Technical bounce possible here.
They are looking to finance the project in two phases
-phase 1 spent US$ 4 billion
-phase 2 spent US $ 3 billion
Yes- billions
compare grades with tethyan copper company now jointly owned by barrik gold and anto***aasta on their****sstan project.
- indicated 3 billion tonnes @ mere 0.26 g per/t
- inferred 2.9 billion tonnes @ mere 0.18 g per t
they have 51 years mine life
they want to produce 40 million ounces with such low grades
it's their reko diq project on tethyan belt
somehow can't copy their presentation on barrik site
Looks like some are losing patience
GLA
The more I look at Redsetter, somehow feel that this could become another Telfer - or possibly even bigger!! One thing for sure, I could simply not be not invested here.
GLA
Decided to top up 423,193@1.19p - time will tell if this was the rock bottom price!!!!
Newcrest will take a long while to decide what to do with this but in the meantime as long as we can keep drilling we might provide resource for them or the new owners!
It’s too expensive to mothball or shut down so keep looking guys. There is something down there somewhere.
GLA GT1