RE: Kalahari drilling15 Jul 2021 20:52
I agree with Billy 6p on good drill results is achievable. We are in a Copper Bull market, incentive is high for minors to achieve in copper. People are looking for the next XTR in the copper arena, sort of like the next gamestop (less exaggerated of course).
Xtr at the time of its rise was expected to have an asset (Bush ranger) of 71mt at approx 0.45% copper or 312000 tons of contained copper. In news of good drill results the market saw fit to bring the mcap of XTR up to around £75m. It dropped again and then raised again (before steadily falling over time to now). That's 2 bites at the cherry for approx £75m mcap. Can the market incentive be wrong twice? Copper up to 800m deep which I'll come back to in a minute
Compared to GLR
CCC zone 5 is 20km away, from PL040 where we are drilling now. 100mt at 1.95% copper! 1.95m tons of contained copper. 5 or 6 times as valuable as xtr........we have a dome and relevant geological features. So how similar is our pl 040? It only needs to be 1/5the size to be comparible with xtr for our 6p and only 60-100m deep so far more accessible
Sandfire offering us £80m for any pl sold containing 200k tons of contained copper. So sandfire value 200k tons of copper at £80m (leaving wiggle room for their own profit) , the market......as seen with xtr, values 312k tons of copper at £75m
The numbers aren't to dissimilar. So given market incentive and the above numbers 6p is very achievable on good drill results. Results which could come any day/week now..that is why XTR is a very good comparison to look at predicted sp movement.
(£80m asset devided by 1bn shares is actually 8p)
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