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It would be disappointing if we ended up doing a deal with Caracal.

Potentially, Migori is a multi million ounce resource. To do it properly we need a better partner than Caracal.

DYOR

$1,827

Much better!!

No idea what other people think. I have a reasonably large position here, just under 3% and am currently down a bit but that is okay.

I go off what the facts are not what other people's opinions are. I then analyse the facts.

One fact is that the junior markets have been weak and the junior resource sector has been weak in the junior market. Look at all the news that POW has put out. It was at 3.2p without all of the news and progress and is now much lower. Same with other companies.

Partly this is the gold price being lower. Last year it was just over $2,000 and now just over $1,800 having been lower. I keep reading that banks are buying lots of physical gold, are printing money with gay abandon and inflation is picking up. Eventually these macro factors will feed through.

In the meantime, RRR is much further on that it was a year ago. Partly to do with local factors and partly to do with COVID. Ideally RRAL would have been last year but it didn't happen.

DYOR

Do the research and the reading. The recent RNSs have been clear enough.

I expect we will hear on the initial drill samples at Luanshimba tomorrow or Monday. I suspect Monday because Friday is a bit of a dead day for RNSs.

I expect another week to ten days for the first sample results from Migori.

In the meantime, RRAL is proceeding along and other companies are doing well in Victoria.

Elephant should be listed before the year end.

Juno will be awarding contracts for the contract mining before the end of September. I expect them to be mining at the start of Q2 22. After that, they will give attention to the haematite in the transition zone between Mt Mason and Mt Ida. I expect them to come out with news on the transition zone mid 22 and that will likely trigger the first of the $4mil payments due from Anglo Pacific.

All going well as far as I can see just a bit slower than we would all like.

You should always read everything: in the broker note yesterday on page one it said this.

"The Company currently aims to create two significant listable JVs in other major gold provinces, thereby creating further upside"

So IPOs: RRAL one or more IPOs (a lot of licenses and could be more than one IPO), Elephant Oil and two others.

Fingers crossed.

DYOR

Good news for Elephant.

https://www.eni.com/en-IT/media/press-release/2021/09/eni-announces-major-oil-discovery-block-ci-101.html

It will increase the interest in its Benin asset.

DYOR

Good news for RRAL. It looks like ECR thinks they can construct a mine just to the north of some of our licenses. Any good news for Victoria, is good news for RRAL.

https://www.lse.co.uk/rns/ECR/property-purchase-within-the-creswick-license-area-d1f1w9r2x59g3im.html

https://twitter.com/RRR_RedRock/status/1433389795657588744?t=c-AjYTcdS14IWVT4zjmUww&s=19

PS as we add ounces, move indicated up to inferred and improve grade by working in the areas of high grade we make the project more attractive to a funder.

It will be a trade off between spending more money on drilling to improve the grade and increase ounces but not improving the value of the asset. At some point spending more money makes only marginal difference to the value of the project.

I don't know where that changeover is but it is not here or near here.

DYOR

https://www.newswire.ca/news-releases/soma-gold-achieves-record-production-in-month-of-august-819661795.html

Some interesting stuff in there.

Uses $1,700 for gold (rounded down to the nearest $100). Current gold price is $1,813 and so as of today they would use $1,800. They use 1.5% of the spot price for inferred.

On that basis each 100,000 oz of inferred add is valued at $2.7mil. AB has given numerous interviews where he states that RRR can and should find gold at a cost of $10 per oz: industry standard is $30 an oz.

So on the above basis each 100k of new inferred resource should cost $1mil and be valued at $2.7mil.

Moving the indicated up to inferred at Migori adds about $5.5mil.

So the two big steps forward are moving indicated up to inferred and adding ounces.

After that, it is the feasibility study.

DYOR

https://twitter.com/RRR_RedRock/status/1432996669096878090?s=20

https://twitter.com/RRR_RedRock/status/1432612639914532866?s=19

Yawn II

https://twitter.com/CaracalGoldplc/status/1432303198673543168?s=19

Neighbours of ours in Kenya.

DYOR

https://twitter.com/darrenhazelwood/status/1432266147626356739?s=19

Gold on a bit of a tear up.

Correct. A JV with a private partner and a listed partner would be much more difficult for a potential funder to deal with. From a funder's point of view much better just to have to deal with a listed company. Various undertakings will have to be given which Valkor probably wouldn't want to give and the debt funder probably wouldn't want to accept from a private company.

As an example lets suppose the funder wants to take equity in the borrower upfront or equity in the event of certain milestones being hit, how does it do that if one of the partners is private? If they did take equity, what is it worth in a private company?

The transaction makes the funding package more likely, not less likely.

Further, Valkor probably sees its way forward as a contractor for the design and delivery of plants to third parties. Much better for Valkor not to be actively involved in competing directly with the potential clients.

DYOR

ECR

https://www.proactiveinvestors.co.uk/companies/amp/news/958565?__twitter_impression=true

If you bother to go back and check you will see that the aim with the Cypress well was not to drill deeper but shallower.

The adjacent well is one drilled by Strand (on their acreage). The Cypress well has been drilled higher on the same same structure than the Strand well and so it will drain reserves that the Strand well cannot reach. The Cypress well also means that the Strand well will cease production sooner than it otherwise would do.

The purpose of the next Cypress well will be to access reserves that our existing Cypress well cannot access on the same structure without cannibalising our existing production. So Cypress need to be careful about how they position the well.

You will remember that Cypress also acquired a lot more acreage for the farm in and that NTOG kept up its corner. There is plenty to go at on that farm in. NTOG was postulating 3/4 wells before they took on the new acreage.

I expect we will hear soon on the new drill and something on the Permian farm in.

Fingers crossed.

DYOR

https://twitter.com/graddhybpc/status/1430140040777289749?s=20