The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
This is perhaps one of the most interesting findings from the scoping study (especially for our resident "expert" porvenireal who has made some sweeping statements recently):
"The economic cut-off grade derived from the Scoping Study is 0.20% copper and 0.15% copper at copper prices of US$7,500/t and US$10,000/t, respectively."
James - a previous operator performed a very early stage scoping study on the Bushranger resource. This provides some back of the fag packet figures which might be helpful for your calculations. The big caveat being that the scoping study was performed in 2011 so numbers are well out of date - since then the resource has grown.
See: https://hotcopper.com.au/documentdownload?id=tuE7JrfFgm%2FOGe3kZXCYEW%2F2TEVf4Ai%2Fzw311o9YkqsjTevSSYocXApvbUamxg5J3z8ubI5McZuzod3LAIw3yeEjZA%3D%3D
pyo88 - why? This is an early stage AIM explorer - not every drill campaign will hit the mother load. GGP has some great examples of this. Newcrest previously drilled the Havieron target, missed and gave up the licence - they didn't go deep enough. GGP picked up the licence cheap, drilled several holes, then hit big with their fifth hole. GGP also have had their share of misses - their recent campaign at Scallywag (next-door to their Havieron discovery) looked incredibly promising (right location, encouraging geo results) but has drawn an almost complete blank.
Compare that to Bushranger - we've hit long stretches of copper in every hole. We have a very large mineralised system and we know there are economic grades within the system from the existing jorc. The second drill campaign, due to kick off in Q3, has several targets not previously drilled.
I noticed in an earlier post you didn't know that Bezant was an entirely separate company to Xtract - perhaps you should get up to speed with the basics and understand what you have invested in before telling everyone else how you feel sorry for them?
Except there is already a jorc with considerably higher grade at shallower depths and geo physics suggesting this higher grade material may extend for over a large area. It’s still early days looking at this asset. I’m not sure armchair analysts sitting at home have the data to make sweeping conclusions about what will happen here.
Hello Ella, I am Peter. I tweaked my holding marginally a few weeks ago to rebalance but I am not selling now - I now hold just under 3%. The 500k tranches are nothing to do with me - probably forward selling of the warrants just announced this evening. I will hold my shares until the next drill campaign is complete. Lots of news due over the next 6 months. From my perspective no major worries here now - we’re cashed up and the Aus drill targets are now predominantly near surface, so cheaper and faster to drill than the phase 1 campaign. I held GGP for quite some time and it followed a similar pattern - quite the roller coaster up and down close to 50% moves until the market finally appreciated the size of the system. It’s obviously a very different bag here, but once again the market seems not to grasp the potential of Africa assets and Bushranger. It will just take time, a strong constitution and strong copper and gold prices (which I fully expect to see).
It’s worthwhile taking a look at Caravel’s most recent presentation here:
https://caravelminerals.com.au/wp-content/uploads/2021/02/2021-02-24-Investor-Presentation-Raising.pdf
Key takeaways:
- Similar low grade high tonnage porphyry play on the other side of Australia
- Grades are low (many intercepts are lower grade than XTR’s Jorc) - a lot of intercepts are comparatively short and in the 0.2%’s
- Caravel use 0.15%cu cut off when quoting contained cu in the deposit - this roughly doubles the contained cu from the 0.3% cut off level (gives an idea of the possible uplift in recoverable cu resources that xtract could be looking at just be moving to a lower cut off to reflect market conditions)
- share price is absolutely roofing it over the last few weeks as the market is rerating this lower grade high tonnage plays in a safe jurisdiction
Good find Steve, thanks.
Worthwhile also revisiting the Apr-20 presentation for Bushranger at this point, as a reminder what an interesting asset Colin acquired:
https://xtractresources.com/wp-content/uploads/Bushranger-Summary-Presentation_April-2020.pdf
Slide 8 is particularly interesting in light of yesterday's conference call and comments by the goes - those adjacent and south east potential additional porphyry bodies detected in 2014 appear to have been re-confirmed by the latest IP and no doubt will be included in the next drilling plan.
More lengthy copper intersections very early in the drill campaign significantly expanding the known mineralised footprint - what's not to like?
Phase 1 was shooting blind to some extent - heavily reliant on computer models using limited historic data. The fact that they've hit several hundred metres of copper mineralisation in both holes is very positive. The new IP survey results should allow them to tighten up on targets and focus on the areas most likely to contain higher grade material - extensions to the higher grade material at shallow depths would be a nice bonus.
This is clearly a very sizeable deposit in a fantastic location. Copper is the place to be over the next decade. Everything still to play for.....
Ted, not sure why you are compelled to post about your South American “gems” here over and over again with your dual aliases.
Not sure the majors will be queuing around the block to finance new developments in Chile any time soon with a proposed total tax burden exceeding 80%. Ouch!
https://www.bloomberg.com/news/articles/2021-05-06/in-top-copper-nation-chile-a-giant-tax-hike-moves-a-step-closer
Count of monte Cristo has posted some useful links on the 'other' XTR board - worth checking out. It seems Alkane Resources who have the Boda discovery up the road in Aus have hit some very nice intersections which has caused their share price to increase by significantly more than the total market cap of XTR.