Member Info for Dcat80

Westie - without doubt they’ll be money coming in from Arcm when deal is announced with AA. Multiple holders I know there are looking and have taken openers in Jangada with plans to add :)

Surprise from Luis sounds interesting and on top of our Christmas card from Brian :)

If Luis I suspect it’ll be more licence/legal orientated. As such my guesses would be
1) more tenements added. Swizz has commented before some are coming up for application
2) trial mining application. Was hoping to we have seen this already, but maybe some aspects feeding into the PEA need to be added before submitted
3) amendment to our licences to include other minerals. Outside of the VTM mineralization we have mafic/ultra mafic rocks which at the nearby Pedra Branca includes cobalt and nickel. Often suspected we might have such minerals at pitombeiras

I’m fully allocated on long term holds now with my trading pot being used for new conviction hold (another copper play with potential for drilling to be funded from legacy assets). Have to wait until I can transfer in funds from a company pension to my SIPP. Possible for a top up here then if timing allows! I’m frustrated Spreadex won’t allow any increases on my SB position at the moment, but will increase there if they open up the book again.

My average is circa 2p. As stated before I’ll look to reduce by 20% at an average of 20p to give me my stake back and same amount as banked profit. The remaining 80% no plans to cut, eyes on the dividend and SP re-rate to reflect say a 7% yield. Jan believe this is a life changing opportunity for me and key is holding tight

Thanks news. Lots on that presentation to try and digest and companies listed to look into further for comparison

Munchbox - previous CB company you referenced is Kiwara Plc. Anyone wanting to get a feel for how this played out can review the RNS history

https://investegate.co.uk/Index.aspx?searchtype=2&words=Kiwara

Different system entirely, but Kiwara spend $25m drilling what became the Sentinel mine now operated by First Quantum.

Lucky - you asked on timeframes for Bushranger. It’s hard to say when we don’t really know the other targets as yet undrilled. My best finger to the wind guess at the moment is drilling cost will be minimum $10m. As none of us want further dilution to some extend timeframes will be determined by success of our revenue streams.

Andrew - we’re quite well aligned on value, I use the 1%-5% range you reference however have just refined a little more for my expectations for our project. Being in Australia I’ve used a floor of 2%, being lower grade a ceiling of 4% with a long term average of $7500. Just tightens the band a little more and any valuation won’t be done on spot price on the day.

I’d be very surprised if racecourse gets to the 2mt contained copper. However as per page 6 on the bushranger presentation below there are multiple other targets within the same licence as racecourse.

https://xtractresources.com/wp-content/uploads/Bushranger-Summary-Presentation_April-2020.pdf

If Colin plays it smart he’ll stop updating jorc just shy of 2m. Then drill out another system or 2 getting us well over the 2m for takeover chat, if the copper is there (and there is no guarantee of that!) then we want to prove up as much as possible before AA have to make the offer. Also the more proved up the higher the likelihood of an offer.

If we don’t get to a size that AA are interested I doubt other majors would be, however there are plenty of mid tiers happy to develop projects with good economics.

We’ve lots of drilling ahead of us, some of the more exciting will be testing the other targets. What else is there? Do we have a number of porphyry such as Cadia?

I should also add Spreadex were no longer allowing any increases to long positions earlier as they are maxed out. Often a sign SB positions are being taken by those building stakes. Irritating for me as I only found out when wanting to increase my SB position!!!

Appears we’ve had someone putting in offers and buying up loose stock on Xmas eve and yesterday. Plus further block buying yesterday, only for what appears to be the same hurried selling we had in previous weeks with aggressive bid hitting.

Think we’re missing a delayed sell from between 8:15-9:30 as well.

Selling method is irritating, however friends often mine have picked up at least 500k between them which will be locked tight at least..

Think targets discussed today are more than reasonable.

One good aspect of the current XTR portfolio is there multiple reasons for an investor to buy. I’m clear I see bushranger as being the big value driver, however the income from the legacy assets is clearly another angle which will excite those not after a pure exploration play, or those that don’t invest in pre revenue companies.

Colin has certainly set the company up is a position where interest could increase substantially, just needs to deliver and one would hope with so many irons in the fire so to speak that at least some will start coming through even if others experience some slight delay

For those in twitter that see people post the snail rocket giff- a friend of mine suggested Brian should post that from the Jangada twitter account minutes after warrant expiration with no comment :) alas it did not occur, but I’m sure Brian wasn’t too unhappy to see them go unconverted in the end avoiding the dilution..

The asterisk are as lse doesn’t want anyone calling each other (s l a g s)- unfortunate when you mean it in the metal producing way l!!!

I should also add that our iron content within the magnetic ore is also of a grade that’s commercial as well. Ferric oxide is 70% iron content. Against the 95% grade it means are magnetic ore is circa 66%-67% iron content and therefore gets the premium Brazil 66% iron ore price. With the vanadium of 1.25% providing more credits. Quite handy specifically with iron prices at the moment, but also generally as the volatility when you’ve a mixed basket is useful. Needless to say it gives a more obvious offtaker option as well - the steel mills who when making surely from ore ore also produce a vanadium **** as part of the process as our ore contains vanadium...

O&W - it’s explained a little in the article I just posted.

You have the general handle on it, however it really needs to be looked at in the separate piles of magnetic and non magnetic ore. If the vanadium was evenly split across both and was at just 0.76% across the whole ore the economics would be much worse and quite possibly uneconomical. It’s why it’s reported in the manner it is.

You are correct though in that only about 30% of Largos ore is magnetic however that portion is very high grade.
Jangada on the other hand has circa 60% magnetic ore, which contains circa 1.25% vanadium

In a kind of way the largo and jandaga deposits are an inverse of each other on a way. They have smaller portions of high quality vanadium and higher quantities of ok grade tio2. We on the the other hand have larger quantity of ok vanadium but a smaller quantity of higher grade tio2.

The article below first helped my get my head round the numbers for VTM deposits as it does get confusing with the head grades then the grades post magnetic separation!

https://smallcaps.com.au/investors-guide-understanding-vanadium-deposits/

O&W

1) At stage 2, when the chemical plant comes into play processing the non magnetic ore into a high value tio2 pigment product then the tio2 will be not just the predominate revenue stream, but also the highest margin product. To put it into context Largo Resourcrs have the highest grade vanadium mine in the world with vanadium at 3.2% and tio2 at 13%. They say their tio2 will be just as important to them. Our tio2 is 33.75% grade (vanadium 1.25%). Don’t let that takeaway from the commerciality of our iron/vanadium, it’s just our tio2 is truly exceptional.

2) highest purity vanadium does get a premium. Largo market dome of their product as such for use in specialist areas such as aviation. We don’t know ours yet, however the main market is structural steel. As such whilst high purity would be nice it’s both unknown and definitely not a deal maker if nkt
3) the NI43-101 standard is much more stringent than a Jorc. It already considers what Sb be extracted economically and only reports on this basis

Hope that helps

Stage 1 possibly I.e. dig ore, crush, mill, magnetic separate and then transport the ore to offtaker. Think key is date Luis submits the trial mining application. Not sure if he’s waiting for the dry magnetic separation testing or anything else, however component parts of the PEA should fill in any gaps.

Most disappointment for me today - Colin not mentioning the carrot in today’s podcast ;)

For copper. Gold will be reported in lab adding to the copper equivalent grade. 2 articles were posted on this BB just earlier. Whether interested in XTR or not they might help educate you...

Clueless idiots posting on grade. Helps if you know the system being drilled, that gold will be reported at lab assays and it’s a porphyry system I.e. large tonnage, low grade play.