Member Info for Cornishknocker

https://www.asx.com.au/asxpdf/20181127/pdf/440ntqfns5l6np.pdf

The latest results from Redmoor are absolutely mental! I have never seen an intercept quoted at nearly 30%Sn Equivalent.

Tomorrow should see a jump up in the share price for certain, these grades are enough to make the whole base metal mining industry look up.

I think we are likely to see the PFS around May. The first step is a revised resource plan, followed by a review of the mining options, bearing in mind I think we are now looking at a much bigger project.

The Aussies love their gold! They seem to prefer Otago to Redmoor. Otago at present isn't even as far down the road as CARE, which is very early stage! If they sold off Redmoor and Lochinavar, they would literally have nothing.

Yeah, it's a weird one that, as that seems to be in spite of the evidence. The fact that NAE and SML share Alan as chairman and that statement suggests to me Redmoor is the primary focus.

NAE have now made an announcement, it appears they are selling off Lochinavar in order to ramp up Redmoor, interesting times.....

Originally Redmoor was NAE's project, who made very little progress until we got involved, in effect we have driven the progress made to date, as far as guaranteeing nae share of exploration costs. Kairos could change the drive.

I would say so. This year's NAE share of drilling at Redmoor was ultimately paid for by Kairos, with the way this year's results are going, they are going to want a slice of the project. It's definitely not a coincidence. Another one that potentially muddies the water is the receiver for wolf uk had set a deadline of Friday 9th November for final offers for Drakelands mine. RCF are a major shareholder of both NAE and Wolf, it's not beyond the realms of possibility that they could use NAE to buy Drakelands

Well unusually for here it's been nearly a month without any updates, which I guess means it's coming anyday! The results for holes 25, 26 and 27 at Redmoor must be imminent (It's over a month since drilling was completed. Leigh creeks results must also be imminent......

It's a copy of the last RNS with an additional paragraph inserted.

It's not new, it's just clarification on that it is turning into a tungsten project - one of NAES new directors is a director if a tungsten company

It's a shame London's such a long way from Cornwall....

If you read the hotcopper bulletin board, you can see there has been a lot of frustration from private investor about slow progress when you consider we are profitable here, but there is still frustration at slow progress you can see why. NAE have nothing close to production.

I think so.

The thing to look at is who has been bought in, I like you have always liked Gary's interviews and am quite sad to see him go. The first new director is also a director of Kairos minerals, who own nearly 10% of NAE. The second new director is also a director of speciality metals, an Australian Tungsten company and the third specialises in corporate structuring and funding.

Personally I don't think it's the right move for SML, but I am wondering if we are about to get involved with Drakelands. My belief is last week's decision to place it in administration, is in effect a takeover by RCF, who are the major shareholder and secured creditor. It just so happens that RCF are the major shareholder of our partner at Redmoor (NAE).
As well as being our partner, NAE also share our Chairman (Alan Broome). Overnight Gary Feitz was removed from NAE, with a new board of directors installed, with a new MD/CEO to follow.
Our Board are in Cornwall this week (30 minutes from Drakelands) For a board meeting, our board also has a unique insight at Drakelands, having the former operations director on the board - as I understand it Jeff's involvement with the plant design was minimal, the operational mining side at Drakelands has never been an issue.
I can't see a direct link between us and Drakelands, but there are an awful lot of indirect links.... just a thought....

That's a production cost per MTU, not per tonne. WLF were producing 43000 Mtu at a cost of $10 million Australian (just over $200 per Mtu, - tin credits), which is too high. The point I am making below is an open pit mine has to move significantly more material to get the same amount of final product, as they have to move all of tge waste material as well as the ore, you can't compare the economics.

Just to put some figures on why comparing an underground operation with a surface operation doesn't really work: -

In the last quarter, Wolf moved 2.5 million tonnes of dirt, producing 550,000 tonnes of ore, grading 0.2%WO3 and 0.04%Sn. So 2 million tonnes of waste rock produced to start!

From that the mill produced 42000 MTU APT and 70 tonnes of tin, generating total sales of au$12.7 million.

As a 500,000 tonne per year underground mine, we would be looking 600,000 tonnes per year (including waste from development), hoisting 500,000 tonnes at a head grade of 1% Sn equivalent, producing approximately 3500 tonnes of tin metal equivalent, realising sales of approximately £50 million per year (about twice what hemerdon are managing).

With regards to should we be concerned, no I don't think we should be, the ground at Hemerdon is very different to what we are dealing with, Hemerdon is a Stockwork in the kaolinized granite, Redmoor is a more convential Lode structure and Sheeted Vein System located in the country rock (If you look at NAEs report last week, we have only just got into the granite at depth, which is unlikely to be kaolinized anyway.

My suspicion at the moment is this is in effect a takeover bid by RCF. Its no secret that Drakelands has been haemorrhaging money. It is apparent that the recoveries and throughputs have been increasing, which along with an increase in tungsten prices has bought it to just about break even point, on top of that they are getting tinto the harder ground (Year 3 was the initial plan). However the mine will never make money with the amount of debt it has hanging around its neck - only in July RCF put in another 4 Million - they could have cut and run a long time ago - so they must have had a plan.

BY placing it into administration, they can effectively buy it out with a CVA in place - as the main shareholder and secured creditor they can overrule everybody else when it comes to accepting the terms (Liquidating it will return next to nothing). That would put them in position as the outright owner, without the debt servicing it will be profitable and they can keep 100% of the profits.

That's my take on it anyway...….

Just seen that, he is struggling to hide is excitement....