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Hi Jamie's cakes,
I came to the same conclusion as Steve, after reading the RNS and looking at where hole 8 lies on our long section model and the direction it is being drilled in. I can't be certain and considering the debate here we certainly need more clarity.
Hi Sq52
I think the current JORC is 0.44% CU and 0.064 g/t AU so approx 0.48% CU equivalent, no mention of silver in the headline figures I just glanced at.
So on the surface yesterday’s figures where an approx 5-6% increase on what we have currently, I’m far from a geologist but without knowing what had been included in the geological model for the area drill 8 targeted I don’t get how Steve can suggest hole 8 will substantially increase the CU in the existing JORC? I would be delighted to be wrong of course, and quite easily could be.
I read the below quote from CB as hole 8 has proved up our concept and future holes will add the value to what we have
“These results support our plans to design and develop an open pit in the Racecourse porphyry region. These initial results suggest that the crown area has a propensity to carry good grade and will continue to add value to the conceptual open pit. A number of holes in the drill programme are outside the current resource and thus our conceptual pit modelling”
My thought process is that the SP won’t budge much until the market see the value of work being done e.g. an updated model or material income comes online.
Cheers
James
Hi SQ52,
I'm obviously missing something but where does the 0.41% come into it?
I'm not a geologist and could be completely wrong but if the high grade area is in the crown you would need to calculate the depth by the width and then by the length. This thing could be 3km long so one drill doesn't sound great but if the layer goes the length of the porphyry it creates massive tonnage. ??
Maybe it's one for iceberg to explain!
>> 1.2m tonne = 0.41% prior = 5 tonne copper, 0.51% new = 6.3 tonne copper
Isn't 0.51% of 1.2m tons over 6000 tons of copper (an extra 1000 tons) ?
Hi Steve,
That was my reading of the RNS but it probably could have been made a little clearer.
Very rough calcs, but my take on it and rough stab at a theoretical increase:
184m x50m x50m
460,000 cbm
1.2m tonne
0.41% prior = 5 tonne copper
0.51% new = 6.3 tonne copper
Difference 1.3 (ish) tonne of copper
Nice to have, but in the scheme of things after processing etc, not setting the world on fire.
However, increase this over the next couple of assay results and fantastic.
Hole 8 confirmed the presence of a high grade 'crown', which has not been hit by previous drilling, and will substantially increase the amount of Cu within the existing JORC area and the conceptual open pit as a whole. It also confirmed there is a second porphyry system containing gold, also within the conceptual open pit.
All adding more towards the magic 2mt of contained Cu Eq target. A target they are aiming to now hit within just the conceptual open pit area. The massive anomalies to the SE are yet to be factored in at all (perhaps 150% bigger than what's in the current open pit foorprint?) and a 1km long anomaly at Footrot too.
Really surprised there aren't more researched PI's seeing the opportunity and driving the SP up but, alas, it would seem that researched PI's are almost as rare as world class discoveries!
Hey-ho. Payday for me tomorrow and if others don't want to take a share of what's coming, I'll take a bit more.
Seemingly a shallower start though?
Jamesiecakes, hear what your saying and that’s where my heads at.
Great result, but what does it actually add?
From length and angle, it’s not adding any extra width, just a slightly higher grade.
I think an update on how much revenue each project is bringing in when it arrives will add a lot of value to the SP!! But until they confirm it's hit the bank and will continue to do so, investors won't take any notice of the predicted revenue.
Colin has stated that three alluvials operations are in progress, and that guy fawkes, the contractors are ramping up production, also Kalengwa, with presumably Eureka starting this week, this week.
Which would suggest we do already have some income, but to date there have been no RNS to say diddly sqat about it.
Then by end of November, Fairbride itself should be in production.
A scattering of announcements about these between the Bushranger news will stir intrigue I feel sure, esp if they all add up to a little bit more than the current amount of next to sweet Fanny Adam?
I am hoping tomorrows 7am RNS about grades in the 2nd porphyry unit will help.
Isn’t it just a case of yesterday’s assay results were from a drill in the existing Resource (my understanding) and the grades were very much inline with existing Grades (0.44% CU and 0.064 g/t AU) so despite being a positive RNS there wasn’t a lot of value that the market could easily add without knowing exactly what the forecast was for the hole (grades / metres etc)
I think option 3 woud be the most worrying, but also the least likely as the reason behind the sluggish SP. It isn't that I don't think a placing is possible, because it may be on the cards at some stage. However I don't think that will be soon and it will (I guess) happen at a significantly higher SP, so investors now would probably be well in the black before any placing occurs. I believe (hope) that a few more good RNSs over the coming 4-6 weeks will break the dam of investor reluctance. Personally I would be suprised if the SP wasn't double by Christmas, although I think a lot of investors (incl some on this board) will bail once they are well in profit and so the SP may struggle to achieve its true value in the short term. That may not happen for 6-12 months or even more.
We need the income
F100
Lack of trust .
CB just needs the income from the African projects to come on line imo..most companies don't have the possibility of three other programs supplying a good cash stream to fund the other probable monster resource.
Poss, history attached to CB?
I think your point 1 is more likely the reason,
F100
Imo Only four possible explanations for the SP inaction we are seeing:
1. Bigger Investors wanting more evidence of grading across the deposit so standing back
2. Overhang of shares in the market to be cleared
3. Placing coming
4. V Large order being filled
I’m hoping it’s 2 or 4 as they’re both v short term
Anyone else got any other theories?
Hard to fathom how the SP can be below where we were before yesterdays' RNS reporting great grades over a long intersection. When this thing finally pops it is going to be explosive.
This could also be of use in a few weeks time.
https://twitter.com/mining/status/1442896556751872000?s=19
https://www.mining.com/peru-road-blockades-forces-mmg-to-halt-las-bambas-copper-mine/
More problems in copper rich countries where the poor suffer and the rich mining company's as well as the government's prosper. We're already seeing revolt in these countries from the poor standing up for themselves. Unfortunately this problem has been around for years and will continue.
It does benefit us in that Australia is a safe jurisdiction.
If that free spin says ‘IOCG confirmed’ then surely the market would go bat **** crazy.
It’s like having an heir and a spare as our flagship asset
Likewise I’m wondering if I have the ballons to hold beyond 20p !
Obviously it depends on the news flow but if we are continuing on the expected trajectory and this is indeed becoming a monster in Australia and then again in Zambia then a £300m market cap is in no way OTT.
Wil probably sell down a bit at about 12p and hold the significant majority for 20p plus .
If you think about it there is much more realistic detail filled in at bushranger since the roar in January, plus you get a free spin of the wheel at eureka