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It’s a given the company will need to do a lot more drilling beyond phase 2. We are still in the early stages still as quoted by CB.
Infilling has been suggested already using all, or some of the next 12000m if the grades are supportive. They will be sticking a recon hole in footrot too if that plan has not changed. I believe they will aim to get a revised JORC for the increased central part of resource which should underpin the work to date. This being one catalyst for a rerate that should ensure less dilution if further fund raise is required. Confirmation of income from other assets being another catalyst.
Using the term dilution comes across as a negative. Fund raises are part and parcel of exploration mining. There are two types of fund raises. The first is where a company is generally just keeping afloat. In our instance a ‘potential’ further raise is to add overall value to the company, investing in itself to turn that 1-2% into multiples of that, that would not be achieved without that cash injection wether it be from a raise or from money lenders. It’s not ideal if it happens but not unexpected if revenue incoming later in Q4 falls short due to delays or otherwise.
The resource I believe will then be methodically increased, next being the extension to south east and then to east with JORC revisions being classified accordingly and remodelling of the open pit plan.
My opinion of course but makes sense to be able to put progressive firmer valuations on the project as we enter into latter stages of exploration.
Ok, points taken and phase 3 hasn’t been mentioned.
I look forward to the next stage of phase 2 after the 8k meters (ish) has finished - phase 2.5?
Was sort of hoping Footrot would be drilled shortly, but if phase 2 covers the full 20k meters, might have to wait a little longer.
Just wondering if we may get caught in a position where we need to conduct a lot more drilling to get to a good JORC standard and that if that is not achieved then the % of the net value (as specified by an independent expert) of the resource to a third party would be lower than we, as shareholders would expect.
In this regard, as the resource gets larger it's becoming more expensive to prove it up to the required standard. Does anybody else have any thoughts on this as it's currently my only concern - effectively dilution due to the need to continue drilling. Yes, Africa should help but have not seen anything yet.
Agree, another 12,000 metres to drill in phase 2 yet, Phase 2 is for 20,000 metres and 25 to 30 drill holes, all in the July presentation, as far as I know a phase 3 has never been mentioned.
Hopefully XTR will have decent income from Africa later in the year and early next year, that opens up new options regarding future funding, ie take on debt and not issue more shares.
https://www.rns-pdf.londonstockexchange.com/rns/9333G_2-2021-7-29.pdf
From the 2/08/21 RNS "well-mineralised 173m interval of copper mineralisation from 239m depth" no the wonder CBs frustrated at the share price, fingers crossed for some nice assays this week.
SQ52, it's not open to interpretation! Phase two we were told is for 20,000 metres. Don't start confusing people by calling the second half of phase 2 phase 3 unless the company start calling it phase 3.
As with most things to do with Xtract, I guess it’s open to interpretation. I had phase 2 down as the 8k meters (give or take) and phase 3 around 12k meters. Giving the total 20k drill length ie most recent raise.
If we’re needing further drilling after that, then raise could be needed - all depends on the length of time for next phase / income stream / number of drills / targets and ultimately how quick CB wants to prove and move.
There’s still plenty to go at across EL5574 and don’t forget the top left of EL8585 that featured as a potential area of exploration by another company as well.
Xtract as it stands at the moment is an absolute no brainer, but it looks like market isn’t moving until some cold hard numbers come in.
"No need to raise for phase 3 and that’s been reflected in the tone coming from CB and the team"
I think depends on what you mean by phase 3. If you mean phase 3 is the next 12000m taking us to 20,000m, then I agree. But I see that as still phase 2 as 20,000m was the scope of phase 2.
If you mean phase 3 being after 20,000m has been drilled, then i think another raise will be required. That said, that should be at a sp over 10p and not more than £2M or £3M due to FB income - so not much dilution.
Just over 7200m drilled so far. No mention of hole 18 so I imagine this is the last hole of the 8000m start of phase two. Phase two being 20,000m. Maybe in the next few weeks we will get another presentation with updated drill locations?
As we approach the end of phase 2, been thinking what the end of the phase would look like and how it would transition onto phase 3.
No need to raise for phase 3 and that’s been reflected in the tone coming from CB and the team.
From all the info available, phase 2 was all about making sure we’ve got a viable mine. Phase 3 will be all about expanding into new territory.
We’ve probably only got another couple of weeks of drilling and there’s plenty on analysis to do on hole BRDD-21-014 and awaiting assay results. These will be needed to plan out phase 3 before the drills start spinning into new sections.
Wouldn’t want the team standing around whilst we wait, so could we be seeing the final one / two holes of phase 2 going into the far south east on Racecourse and/or into Footrot?
Also, the Footrot RNS from July did say Footrot was in phase 2 and there’s not many holes left to go!