Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
News, they are called a Cadastre; Burkina Faso, CDI and DRC each have one. I have been all over the CDI one to check out who is operating near to us. Like at Lake Kossou we have Koulou Corp to the North and Kobo Resources to the South.
The Cadastres are online.
DYYOR
Thanks
Https://www.lse.co.uk/rns/FMET/acquisition-of-sylvanite-gold-tailings-project-yz5d03su24ulw2k.html
Note 67,051 oz of gold: no 43-101 or JORC. Fulcrum is paying at least $340k.
The Macalder Tailings has similar gold in a Measured JORC plus silver and copper. If I remember rightly, it is 1.24mil oz of silver and 0.3% copper.
DYOR
No one would have believed it would have taken this long to sort out VUP.
Regardless the loss of value caused by successive raises will form part of the claim against Glencore. If Glencore had played things with a straight bat, things would have worked out a lot differently. If Glencore had dealt with RRR directly, as they should have done, then there would have been no fund raises over the intervening period. The loss of shareholder value is down to Glencore's behaviour.
DYOR
Https://www.lse.co.uk/rns/RRR/licences-obtained-at-bilbale-and-boulon-9vil2bnurpmn1uw.html
DYOR
Talkie, Stockbox interview re Burkina Faso
https://www.youtube.com/live/ICZSwt-tIU4?si=GACtw4frD_KGpHTq
DYOR
Talkie,
First of all RRR has not had it for years.
In the case of Bilbale our contract with the local landholder had to be renewed and with Boulon the licence had to be renewed. See the announcement below from January.
No one is doing any work on a licence without knowing that they can exploit it. Initially the work at Bilbale and Boulon was on the hard rock. Subsequently, after surveying they found they had alluvial at Bilbale.
The problem is how can you exploit it? You need kit on the ground and you need experienced staff used to operating in these countries; it is not as easy as popping down to B&Q. With Sam and Willem we have partners who know their way around these places. With the alluvial, you would only bother if it was substantial. They have done their surveys and Willem has confirmed the work. Hence, they are going to operate initially on four sites at Bilbale.
https://www.londonstockexchange.com/news-article/RRR/central-and-west-african-assets/16301442
https://www.londonstockexchange.com/news-article/RRR/asset-review-current-developments/16209620
https://www.rrrplc.com/wp-content/uploads/2024/04/2024.02.29_RRR_Burkina_Faso_Alluvial_Project_Presentation_2.pdf
Note the Moratorium has been lifted.
"With over 10 applications prepared for prospective ground once moratorium is lifted, to be ready to file immediate applications for further areas"
NB with also have alluvial in CDI at Yamassoukro/Lake Kossou.
If the alluvial works out okay at Bilbale, I expect that RRR will do the same elsewhere.
DYOR
Dukey, I really do have better things to do than meet up with you. I am going to be washing my DVDs that day: whichever day it is.
Though if Faso has confirmed its initial production figures I might change my mind. It would be nice to have you explain; why you are so wrong on Musonoi, why you were so wrong on Kenya, why you haven't paid what you owe to Christie's and why you are so wrong on Faso?
DYOR
Ah Dukey, the man who is not a shareholder and said he never would be, the man with the astonishing track record. Sold out of RRR at a super decent profit and bought back only to lose out; wrong on Musonoi said no one was interested in buying it just as Glencore was paying $430mil for it; said RRR would never get the Kenya licences reissued but wrong again; said RRR would never produce gold in Bilbale (about to be wrong again?).
The malevolence seeps out of letter and word you type. Not everyone is like you; someone who stated he would pay £1,000 to charity if RRR ever got its Kenya licences reissued but to date has never paid.
Morals and ethics; zero rating.
DYOR
Neighbours....
https://finance.yahoo.com/news/reconafrica-announces-operations-joint-venture-100000098.html
NB Elephant Oil has the Damara Fold Belt on its acreage too as does the JV between Monitor and 88 Energy.
DYOR
Https://www.gold.org/goldhub/gold-focus/2023/11/gold-miners-aisc-still-rising-slower-pace
DYOR
I don't know where this $2,100 has come from but I suspect it has come from our resident "partly qualified accountant." If it has, he is quoting AISC. AISC relates to hard rock not alluvial and is a valuation metric, it has nothing to do with FCF, profitability or alluvial mining. I have explained this but he persists. For instance take Soma Gold; they have stated that their marginal cost of production is a little over $900. They are in hard rock and mining at depth.
Alluvial is $300/$500 ish per ounce dependent on grade. It might initially be a bit higher at Bilbale because we are not fully mechanised.
https://digitalcommons.mtech.edu/cgi/viewcontent.cgi?article=1007&context=mine_engr#:~:text=All%2Din%20sustaining%20cost%20is,both%20investors%20and%20mining%20professionals.
A big element of AISC is the cost of replacing what you have mined. In alluvial mining you simply mine what is there and then move on.
DYOR
News, if you check out one of AB's interviews, he states that he thinks Berringa could be brought into production in about 18 months. To do that RRAL would need a JORC, a mine design, a PFS and a BFS. To move that forward in the time frame means drilling now.
AB thinks that he can see a route to a quick JORC through accessing the Level 2 Adit. He has also said that he thinks that there is between 200k oz of gold at Berringa and 2mil. How can he say this? Well the last drilling they did was not for grade and quantum, it was for structure. Before they drilled they created a 3D model of the Berringa deposit. The drilling was designed to prove that the 3D model was correct and the drilling did confirm it.
So having confirmed the 3D model the next step is get the JORC proved up. Note that the drilling was open as to depth and along strike. What does that mean? It means that the deposit is bigger than postulated: hence the variance in AB 's estimate.
https://www.londonstockexchange.com/news-article/RRR/drc-and-australia-gold-asset-update/16332837
DYOR
Nike. Victoria gold stocks were hot post Fosterville South. It took too long to get the licences issued, largely because of COVID.
Post COVID the brokers' appetite for listing Victoria gold stocks was less on AIM, ASX and TSX. That has now changed for obvious reasons.
My view is RRAL will list on ASX: they will sign up a broker, do a pre-IPO fund raise circa USD500,00 and then IPO off the back of the drill results.
I expect to hear something shortly.
DYOR
Dukey, tell me again how no one was going to buy Musonoi at any price and how RRR was never going to get licences in Kenya reissued!
As I said flow: revenue is a flow and capital is a stock. Accounting 101 numpty: even the partially qualified resident accountant that can confirm that.
Bilbale is in three phases: phase 1 the flown in kit, phase 2 the kit sent by ship, phase 3 post issuance of the production permit. Phase 1 & 2 are test production. Once phase 1 & 2 are in place revenue will tens of millions per month.
It won't be optimised till phase 3 is in place and we have installed a crusher. Some gold will be fixed, hence why we will need the crusher.
I may be wrong; I did say no one is as dopey as you make out to be, I may be wrong.
DYOR
Anyway, chin up folks something has to happen soon whatever that may be. Burkina Faso has been valued by DL as worth $10 million to Red Rock about the same as Musonoi is worth. DLs' Mining company, he is Chairman of Down Under, might just be thinking of interesting themselves in NBGC we shall see. My feeling is that AB has it at the back of his mind.
Found this on ADVFN; how he would know that DL has valued Burkina Faso at $10mil is beyond me.
DYOR
News, it was my suggestion that DL get involved with RRAL. If he wants to take it forward, then great. We need some of these things off AB's plate.
I am not sure why he would put a valuation of $10mil on Bilbale or how he would get to that figure or even why he would want to put a figure on it.
Do some numbers, look at the spreadsheet in the Faso presentation on the RRR website. Once we have the production licence we can step the production up. In the meantime, we do the test mining to identify areas of high grade and map the resource. The licence is 180 km2 and so is large. The alluvial deposit was created by the Black Volta which used to flood the whole area. https://en.wikipedia.org/wiki/Black_Volta
https://www.graphic.com.gh/news/general-news/black-volta-overflow-over-5000-people-displaced-by-buipe-floods.html
My view of value based on what can be produced is significantly higher than $10mil but as I said no one is going to pay you $10mil for it.
DYOR
I can't see the post you are referring to but....
Willem is a production geologist not a valuation analyst. I have not seen his report but likely he will be commenting on how much gold he thinks is there: alluvial, colluvial and hard rock. What needs to be done to bring the alluvial into production and the best way to go about it and a mine plan or development plan. They said, there are at least four areas and so there there is a lot to be done. Likely it will be a HQ camp and then satellite camps.
Each area will need its own pond and maybe or maybe not need a bore hole.
There are problems with a valuation for Burkina Faso: in my view a valuation will be irrelevant. The best way to realise value is to simply produce the gold and sell it. I doubt that any valuation or offer for it will come anywhere near what can be realised by producing it.
Another issue with a valuation is that the alluvial is likely a short life project 3/4 years and so you wouldn't get the higher valuation you would on similar assets with 7 year plus life. Alluvial is also not regarded as "sexy", I don't know why in my book money is money.
The best valuation you could make is estimate the gold in place, estimate what it costs to recover it and then do a DCF based on an assumed gold price. No one is going to give us the DCF price though.
NB it is likely that the hard rock is several times larger than the alluvial. To max out the gold recovery we need a crusher to recover the "fixed" gold. You must also remember that we have another five licences in train.
DYOR