Member Info for Dibs61

Very quiet here this morning. Anyone going to the AGM today?

And we must keep in mind that Colin and his teams experience and knowledge of this area is growing on a daily basis. By Colins admission Hole 1 was something of a stab in the dark but, in his words, they ‘got lucky’. Since then they’ve increasingly been making their own luck. I think we’ve had one dud (hole 4) if you can call it that - they collared the hole and changed orientation. Other than that every hole has delivered mineralisation to one degree or another.

I strongly believe we haven’t yet seen the highest grades. I think they’re to come as they have shown great accuracy thus far in their drill location selections.

Exciting times without a doubt and much more to come. No hanging around for months waiting for snippets of news here. If you want positive news flow this is the place to be. And I don’t care if I get accused of ramping.

Stevemocal - well the simple answer is we don’t know for sure until we get the drill results and assays. That said, the evidence is mounting in favour of the 6mt range rather than 2mt which now appears to be the very bare minimum we can expect. I suspect that we will be looking at 2mt in the rear mirror by the new year latest.

6mt would make Racecourse a truly world class deposit in a superb location in a great jurisdiction. I think all the majors are going to be clamouring for it. Newcrest for sure. Why wouldn’t they? Maybe that’s a more pertinent question.

I think Colin is going make sure AA don’t pick this up on the cheap. He’s a wily Old Bird. ;)

Ben - I agree that realistically EL5574 would form the deal in the buyback option. Which is why I am happy to wait for them to extract maximum value from it (if possible) and it’s evident there is potentially a lot more value in it. And if AA want the rest of the acreage (the other three licences) then they will have to pay top dollar for them. They cannot ‘force’ XTR to sell. However I don’t see why they would want it because - as often previously stated - majors don’t do exploration anymore. And let’s face it, once XTR has hundreds of millions of pounds sitting in the bank, they will be funded to undertake massive exploration campaigns if they chose to do so.

Ella - Agree with you about warrants. Not convinced about sufficient revenues in time for when they’re needed. But not concerned like other because by then demand for the stock will be so strong they will be absorbed quicker than some believe. Same thing happened at GGP (big warrant issues) and it all turned out pretty well there SP wise didn’t it.

There was much discussion yesterday about how the sale of the deposit would eventually be transacted. One suggestion was that Australian registered company ProspectOre of which XTR own 100% could be sold in its entirety - possibly for tax efficiency reasons. Which I must admit I did not entirely understand. But setting that aside for one moment (the tax issue) my question is why on earth would Xtract sell ProspectOre in its entirety when it holds FOUR complete exploration licences in the LFB of which the deposit in question - Racecourse - only forms a tiny part of one of the licences EL 5574? They’ve barely scratched the surface of the 501km2 acreage that ProspectOre (ie.XTR) actually own.

My questions would be:

a.) why would a major buy all that exploration acreage (that XTR own) when we all agree majors don’t do exploration anymore - and Colin himself has confirmed this.
b.) why would Colin give away all that prospective exploration acreage for nothing when property in the LFB is now worth substantially more than the bargain £1.25m that XTR picked it up for?

It makes no sense whatsoever. So I think we got ourselves a bit tied up in knots discussing tax affairs when the above forms the bigger picture. I’ve posted the link below which illustrates the Exploration acreage we 100% possess:

https://www.rns-pdf.londonstockexchange.com/rns/8649O_1-2021-10-12.pdf

Look at the sheer size and scale of the acreage. It’s mind boggling what else could be out there. And all held by ProspectOre ieXTR. The idea we would give all that away is bonkers.

Imo just the Racecourse deposit ie.the actual JORC defined deposit area would (or should) be sold.
And folks that is only a tiny tiny portion of the Bushranger licences with plenty of remaining prospects that could yield further deposits.

UK Tax or Australian Tax we are in a very tidy position indeed.

No SF YOU are pathetic. Using brand new User ID is sooooo transparent. And Posting statements as though they are fact when they are indeed fantasy.

Bring something constructive and that will be welcomed.

The last drilling and/or assay update was now 12 days ago - not far off two weeks. We must surely be due another update ‘imminently’. Colin releases such RNS’s at literally any time of day going back through time releases of previous announcements so hold onto your horses.

This SP needs awakening from its recent slumber and, of course, any announcement is certain to be followed by a Zak interview.

I don’t really get this argument about issuing too many RNS’s. After all what is ‘too many’? I don’t see anything in AIM rules ref this matter. And you only have to look at Paul Johnson @ Power Metal (POW) for example they issue RNS’s on every separate project. Sometimes daily, sometimes more than one per day. They will be subject to same rules. Companies pay for issuing RNS’s, what difference does it make?

POLY delivering within budget and ahead of schedule. How many other miners do that?

Should that surprise us Steve? The market is as bent as a nine Bob note! I remember a conversation I had a while back with an ex MM and he readily admitted as such. It’s not in our favour as we well know and there are many other snouts in the trough before we get our turn!

That said we CAN make money, of course we can, but it’s just that we are always going to be back of the queue when it comes to day to day trading. If there is stock to be had, or to be sold, we will often not be able to get the price we want. I would say our biggest advantage as PI’s is that we can at least get in early on this micro companies because the II’s mostly can’t because the companies are quite simply too small for the sums of money they are investing.

Since we heard that drilling on holes 20 and 21 was underway. Another couple of very long holes then and news surely ‘imminent’?

….and you can pretty much guaranteee MM’s will try and guide lower if they can on v low volume (buying shares back cheaper)

Looks like we need that next RNS for renewed impetus. Colin, over to you…

SL - yes you could just as likely be correct, that makes sense. We’ll soon find out but in the meantime interesting to speculate!

I think the market is more ‘open’ to respond to better results than it perhaps was a few months ago.

This was in the RNS dated 28th September:

‘ Phase 2 drilling programme at Racecourse continues with BRDD-21-020 and BRDD-21-021 underway.’

So, over two weeks now since that statement. Drilling results due before end of this week plus hole 9 assays? Surely Colins going to want to have more to comment on on Thursday.

Hole 20 will be v interesting as it’s being drilled from the same pad as hole 18 which is outside the JORC Deposit.
Hole 21 is from the same pad as hole 8 from what I can see and I assume they will drill westwards to test extended mineralisation outside the JORC deposit.
Therefore both holes are going to tell us more about the extension of the resource.

As I’ve mentioned before this has been rocked by the POLX FDA rejection and infuriatingly this has barely recovered whilst POLX, although still way down from its pre rejection high has recovered more from its low. Seems to have spooked investors a bit. Which is illogical because there is no comparison whatsoever between the two.

The daily Gold smash on the comex. Between 8-10am NY time - smack - gold sinks. It’s way beyond any coincidence. It’s so transparent. When is this game going to end?

Yes I think the uptrend has NOT been broken by the recent correction. If you look at both the 3mth and 6mth charts the price bounced off the lows so sequence of higher lows was not broken.

Set for another leg up.

MTM - yes nice chart - shows up that sequence of higher lows ever since the start of July nicely - looks very bullish. So, because I’m not an expert chartist is that a bullish wedge or divergence? Or neither!

The other thing is I don’t suppose all the MM’s in XTR will do the same level of business/trade in thestock. Maybe Cantor carry more stock, do more trade than the others - and once that batch of stock (@5.2 for example) is sold that’s when the ask ticks up.

Anyway we’re up again so all positive

Off topic interest this morning the market gave a raspberry to GGP’s Havieron RNS - classic sell on news scenario. Traders get in for the ride and exit when it reaches that station post. We must always remember that’s the way the modern market works UNLESS your results exceed expectations. Theirs clearly didn’t.