Tragic24 Apr 2019 13:04
Just checked out your latest opus.
Not grooming anyone. I know you find it difficult but follow the logic through but here goes.
Nzurri sold 85% of Kalongwe for about $79mil. Nzurri was not as far along as Musonoi, the numbers are similar but in my view and in AB's the numbers are better at Musonoi.
In DRC they refer to these copper/cobalt assets as fragments. At some point these minerals were laid down in strata like other rocks. However, in DRC because of geological upheavals they have been twisted out of shape and are now localised in vertical or inclined fragments. It is possible to analyse them to see if you have the full stratum in place and if you have identified where it is all is. Similarly, it is possible to identify if some of the fragment is missing.
The key is then to find out where it is.
At Musonoi the fragment has been partially mined down to 100 metres and then partially backfilled. At KOV Glencore reckons that the fragment does down to 600 metres. There is no reason why the same does not apply to Musonoi: AB has hinted that the working theory is that the fragment at Musonoi goes down to a similar depth or deeper. RRR has created a 3D model and can idenitfy the shape of the fragment, which bits have been mined, what is left in place and if there is any of it missing.
My view is that the resource at Musonoi goes down to 600 metres and maybe 1,200 metres. The next step is the JORC report but in the meantime RRR will be constantly adding information into its model. Before the JORC report can be completed, RRR needs to identify all the cores that were taken at Musonoi, sample them and then send them for Metallurgical analysis. Once that is done, hopefully, they can get the JORC report signed off.
My view is that the JORC will report will say that there is 100,000/120,000 tonnes of copper in the oxides and maybe 25,000/30,000 tonnes of cobalt. It will also recommend that further drilling is done to identify the geographical extent of the fragment and that deeper drilling is done to identify the how far down the sulphides goes.
The JORC report should be out maybe end of June/early July. An updated JORC can be done once the further drilling has be done but that will be expensive and we have the rainy season to contend with. It may or may not be possible to get an updated JORC report done this year. To update the JORC report, drilling will probably need to be commissioned in July with the update due maybe November.
In the meantime RRR is a sitting duck. There is enough information around for another mining company to able to assess what is there. If the market capitalisation is £4mil what does the BOD do if a bid comes in for say £12mil?
AB has said he thinks Musonoi is worth north of £100 mil; if that is true how long before a bid comes in? As things stand it would be cheaper to buy RRR than buy Musonoi.
DYOR IMHO
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