Member Info for Cygnus7

Silver's currently on a rip: up 5.5 % and still rising.
Related to the SVB issue no doubt.

The African income has got to get a shot in the arm with the current gold price.
Just dosn't seem to feed through to the sp.
Although to be fair the Cu price is back below $4 /lb as I write.

I had hoped that there would be a steady trickle of news in the new year but seems like we are on a starvation diet at the moment.....

Funny how one big buy can spur others into the field.

Ma, the podcast does not mention any cash raise. It does mention further drilling which I always thought was a good idea as I didn't want to pass on undiscovered resources to a third party - even if those resources are only known to a low level of confidence. So, the drilling needs to be paid for. My hope is that African gold will cover it but my next best option is a loan financed by the African income and then lastly dilution via a raise. At these sp prices it could be a substantial number of shares to enter the market. Hopefully we can avoid that.

Ma,
Sorry to interject but my take on the info I had read over the last day or two is that the concentrator will enhance the garade. They use sensors (probably conduction or magnetism) to detect when the grades passing through the intial sorting process to reject the very low grade material. This is why some Cu will be rejected. AA are using this technology. The one reason AA may reject BR is that the total amount of Cu is too small although grades may also be important. But, more drilling is to be done so that may not be an issue in the fullness of time.
The current analysis, in my understanding of the situation, is that existing drill cores are to be tested to see how applicable the sensors are at sorting the ore.
The forthcoming drilling is, in my mind very valuable but the question of how it is to be financed is as yet unannounced. Hopefully it will be via African income.
Hope this helps.

My take on the RNS is that it is telling us that with the concentrator, the project will be profitable (even if it wasn't so without it) - but there could be a case for dilution. I think that's why the sp has taken a bashing.
However, with regular income I would have thought a loan would be the obvious way forward.

Well I picked some up at 1.629 which I thought was a great price but I see others have managed to undercut that. Always difficult to try and pick the bottom. But the way I see it is that with the income and potential they currently have, the current price is somewhat silly. All down to sentiment - me thinks.

Steve, I don't want to get into a '*** for tat' arguement so this will be my last message on the matter.
It seems that the first two points you make are solved by your own arguement that copper prices are on their way up (if one assumes that the big miners believe likewise). With the way the world is changing it's difficult to imagine that the big miners are not of the same opinion.
On your third point, yes, there are better grades/prospects around the world. No body is argueing that BR is a world beater. But it's already (and will grow) a reasonable amount of Cu without the hassle experienced in other parts of the world. Would seem strange if it get left alone because ... well, can't think of a reason to finish the sentence.
In reality, it looks bad to many because it did not live entirely up to the hype. But that does not mean it's not valuable.
Ultimately we all vote with our wallets.
I hope your strategy works for you.

"Do you seriously think that if the model came back as non-viable, XTR would just release a clear RNS to that effect? Instead, they would prevaricate and obfuscate, like they and many other AIM companies do all the time. Eventually the project will just quietly disappear like Kalengwa, Eureka, etc.. Why do you think there is a new distraction in Zambia?"

Steve: That conclusion does net explain why there's a plan to continue with the modelling and to return to drilling.
I repeat, there is no way they are agoing to leave 1.3MT+ of copper in the ground in a convenient location in Auss.

Thanks 3Card.
Dyslexia rules KO...

Question is, why did LSE pick up on my spelling mistake. Normally it just uses the writers error... unless it thought I was being rude!

The reason the price is falling is due to the increased delay that this development introduces.
However, for LTH that want to build a position, this is good news. The RNS suggests that this is economically viable but you'll have to wait for your money.

LSE clearly doesn't like the word f a r s e .

f*** should read f****.
Don't know where that came from...

I think we all knew that the grades were towards the bottom of the global range. However, in recent decades the way to solve this problem is to use a concentrator. Why it took around 3 months for the modellers to reach this conclusion is beyond me, just hope they're not changing top dollar for this stuff. Anyway, the concentrator is the obvious way to go.
Those who think this is an admission that the prospect is non viable then you need to ask why continue with the f****? That doesn't make sense to me. The modellers have to find the most economic way forward and the concentrator is that solution. In the mean time more drilling will take place. Sounds good to me. Nobody is going to leave 1.3M+ T of copper in the ground in a convenient location in Auss. It's just going to take longer than we planned. The question for me is whether the cost of the drilling will come from dilution or be financed from Africa? See attached link on concentrators.

https://www.mogroup.com/insights/blog/mining-and-metals/the-environmental-and-economic-benefits-of-pre-concentration/

I think it's very useful to explore the manner in which any company could hit a wall. Having has my fingers burnt in the past with 'sure things' it helps me to evaluate the real risk involved. This company (or more accurately, its predecessor Arian) is a fine example. It had lots of nice photos of the mill being built in Mexico with a huge silver resource under its control. They were spending money on more exploration and production was just weeks away. Then you get an RNS telling you that they have not met their committment to the loan company and that the mill and resource is now owned by them. Things do come out of the blue even when you are least expecting it. Arian then evolved into Alien. I held those shares which were worth very little but then to my surprise saw that with the passage of time Alien started to have prospects. I have since doubled down. At one time may break even sp was about 80p but have managed to get that down to about 3p which, should things pan out is not unrealistic. It's not comfortable putting more cash into something that was so painful but it's relatively little money compared to where I was so I can justify it.
The positives here are the lack of debt although I think there may be the possibilty of some dilution and the size of the resources combined with the small amount of investment required to get things up and running.
So, alway willing to hear the down side to any investment because there may be something I haven't thought of.

When Ascot was discovered one of the distinghuising features of that resource, which allowed it to be identified as a new porphyry was the presence of molybdinum (Mo). I see that the price of Mo, which had been roughly 4 times the price of copper not too long ago has recently reached around $90,000 per short ton. Now maybe the Mo detected was merely traces of the metal which were not present at RC but at that price you don't need much to make a big financial impact. Think about it, with the price heading in the direction it currently is, you only need to find 10 tons to generate $1M! Now, I accept that different milling equipment may be needed which means a big investment and also the ore has to be processed but it is already being dug up and processed for the 6.6 lbs of Cu that would be found in a ton of 0.33% grade ore.
At some point the trace Mo present has to start becoming economically viable but we have never heard what levels of Mo are present at Ascot.
Just wondering if this metal will play a role in any miners sums when it comes to deriving a value on BR.

I wonder if an external company has been comissioned to produce presentations (they all look very similar in style) for Colin Bird's companies and when completed they have simply added them to the websites wthout letting the parent companies know.

The presentation that turned up on the XTR website also didn't have any notification.

Disapointing to see the sp fall after the RNS but this is AIM. The presentation simply confirms that nothing finacially beneficial will happen for months so the traders go looking for the next shiny thing with a view to come back here when the cash is due to flow. Suits me. Allows me to get in at a low sp: I'm the patient type.