Petro Matad funded for its drilling programme which should see production start next year. Watch the full video here.
While there is so much more to explore with the extensions in every which direction from the central resource to hopefully expand the pit size. So as it’s not as likely the decision to mine option will be the catalyst for the buy-back, this may have some way to go yet as the resource is methodically increased. Once the open pit has been maximised to its full potential, the dream is a 400mt resource, maybe then, we will see what happens with Anglo or at least have a better understanding of the project value as a whole.
I prefer this as a more realistic approach than to try and second guess grades and cut off values.
After all, we are still just scratching at the surface of this discovery and drilling will continue after the estimated 2mt is proven and until racecourse deposit is successfully explored. Footrot will be the icing on the cake.
Agree Steve very optimistic and enjoying the story unfolding.
Along with our super yacht we could be looking at a small fleet of ships looking at the signature again from the IP and the 3D model. I would be very surprised if the grades were disappointing overall and we didn’t exceed 2mt by some margin. Looking beyond this, the next steps will be to realise any potential at Footrot which it seems to have a positive vibe about it. It could be the mother of all porphyry in the shape of an Aircraft carrier with its huge flat deck shallow to the surface.
Then only the aero survey will tell us what is in the corridor……sorry, shipping lane between the port of racecourse and the bay of footrot. Ahoy there captain Bird, watch out for theiceberg, or is it yet another porphyry! Hit it and you will be rowing to safety with your prospect ‘oar’ unless you’ve sold it already, in which case give that man a inclined cigar as I would have retired early by then.
Hey! It’s possible…and not just a silly analogy.
Ok I’m done :)
I would say inferred would be sufficient to see what AA wanted to do. But ultimately any resource would be infill drilled and have all the supporting evidence in place to get a JORC compliant revision worthy of third party valuation.
This appears to be the intention with reference to start infilling if grades are good.
I certainly don’t profess to be an expert but understanding is they would maximise the full potential of the existing resource inside the margin of the current pit model. A revised JORC would then underpin the work done to date.
Then, “if” recon holes in the adjacent anomalies show they have the potential to add to the open pit. Then the model will be updated and further infill drilling will be required and so on.
As for the amount of infill drilling then that is a grey area as only the lead geologist will understand the required intensity to be geologically confident.
Ella. That was how I recalled it that the aero survey was to cover more ground to try to understand if further porphyry were evident. Geographically it makes sense to identify anything in between racecourse and Footrot.
Certainly of interest as to when this is completed. Will have to wait until then I guess to see the extent of surveying.
Lucky520- your first question got me thinking as to what the below paragraph taken from the Footrot update RNS, actually refers to.
>> We plan to undertake further geophysics using drone technology over the Racecourse “project”whilst identifying the best drill site to test the Footrot geophysical signature."
I believe this would include the 7km in between that you question.
What do we know?
Bushranger project covers all tenements including the ones not included in the buy-back agreement. The Racecourse ‘deposit’ is what we already have that includes the existing JORC resource and is this deposit alone that needs to hit target of 2mtCuEq as per the agreement.
Now, someone tell me if I’m wrong, but the Racecourse project refers to the overall tenement that includes Footrot and covers the whole 500sqkm within.
If I am correct and it is their intent, then we should soon get an indication if further porphyry are present.
Footrot I’m hoping will be surprisingly good as the insistence from Colin to stick a recon hole in it regardless of what is found at racecourse. Even if all the remaining drilling is used to start infilling to realise and increase the existing open pit potential. They ‘still’ want to stick a hole in there. There seems to be an air of confidence about footrot. And as these type of porphyry are found in clusters the Hope would be to find further in between along the 7km corridor. All easily accessible from racecourse by cave mining further down the line. (If economics dictate)
Footrot I’m hoping will be surprisingly good as the insistence from Colin to stick a recon hole in it regardless of what is found at racecourse. Even if all the remaining drilling is used to start infilling to realise the existing open pit potential. They ‘still’ want to stick a hole in there. There seems to be an air of confidence about footrot. And as these type of porphyry are found in clusters the Hope would be to find further in between along the 7km corridor. All easily accessible from racecourse by cave mining further down the line. (If economics dictate)
Conservative estimates in calculations are returning good numbers back that must be outside of most ‘earlier’ investors expectations considering the confidence of the team this will exceed 2mt now.
Bear in mind we are not just selling a mineral resource but an ore reserve that will be open pit-able. Are there any variables that are used for calculating the value of such? I would have thought it would be of a higher premium value added, considering the lower CapEx required to initially mine, as against were just selling minerals in the ground.
Could be it is dished up on a very large oval shaped serving platter if the extensions to east and south east can be incorporated into a revised pit model if proven to be of suitably shallow and of economic grade.
Imagine ‘a fleet of super yachts’. ‘As per Zak’s comment’
Try this news- https://audioboom.com/posts/7914222-trader-s-cafe-with-zak-mir-colin-bird-executive-chairman-xtract-resources
Don’t think that will be the case Castaway. He has made it quite clear in a previous interview that ““With what we’ve got, we already have a viable mine, we are not just looking to sell this, we are doing the responsible engineering concurrently as we look for more and more.”
Consider initially when phase 2 drilling was planned prior to the IP results showed the full potential of an open pit. The estimate of between 16k to 22kmetres of drilling was to get to the target of 2mtCuEq. This was before the extensions to the east and south west were fully known at that time. Colin was confident back in early April that drilling would be getting towards the 2mt.
Bit of a misconception to think that we will be way off that after this full 2nd phase. He has spoke in this latest interview that if grades are supportive of an open pit then that is where the drilling will further target inside the current model to infill. This will undoubtedly be the best scenario for the project as will be vastly more economic to initially mine and be of greater value and hopefully be reflected in the share price.
This is where the need to understand the implications of triggering the option to mine would be of great help regarding further exploration.
Colin seemed particularly upbeat. Is very promising that he he has confirmed the frequency that news items will be released. Certainly more than I was expecting so could not be happier. He is keen to address some of the uncertainties that are evident whilst being totally transparent with the market, it’s quite refreshing. In particular, the drilling phase outcomes as to wether the decision to mine option will be met and could be ‘knocking on the door of their buy-back partners’. Potentially clearing up the suggestion, for now at least that other majors could be preferred over Anglo.
Any uncertainty of what would happen with the ongoing exploration of the remainder of the project and how funding would work if, the decision to mine option is met by Anglo, could maybe be something you could give an answer to please Colin, or maybe offer a scenario or two on to help with understanding the mechanics of such a deal.
Xeiger- That reminded me of an old post of mine back in April.
>> Think the giveaway clue to a further fund raise is when Colin starts using inanimate objects to refer to the size of this pawphry... like mountain or glacier.
Instead of root vegetables, mammalian or fruit.
We now have moved upscale to a “super yacht” so let’s hope the budget will take the project onwards to end of this phase.
Steve- >> 'no news is bad news' situation. Please, no. Just no.
Could almost give Lennon and McCartney a run for their money as a song writer if the investment goes **** up ;)
Just an observation.
Is now very apparent, after comparing the IP data we we originally prior to the presentation. (The one that had the couple of lines to the south that were unable to be done at the time due to operational problems.)
The survey team must have returned to site and completed scanning. The signature that is now shown on the presentation is shown to be significant in terms of the increased scale and extension to south east in comparison.
That was a terrific presentation so well done and easy to understand. Very glad they have shared the drill plan for this phase. Comment Colin made about, if the grades are good then they may start infilling (in next block of holes one would assume. ) Could be to get a JORC revision. Would certainly get a rerate and give a new support level.
There is no point spending money on a study that is based on estimates. You have to start with what we have already as in the inferred resource. The point was to prove viability of open pit technically and economically to pay back the pre-production capital expenditure needed to put the overall project into operation. It was concluded that, as a stand-alone open pit mine it would potentially do this with only the current inferred resource. Then essentially, the model was to show how it would then facilitate underground block cave mining taking into account all of the surface infrastructure and processing plant already paid for.
It has given a firm baseline to start from considering that the added results from this and the previous drilling results will only increase the commercial potential as we know already it is viable. No of course no major is going to throw 1.5billion at this at present. The purpose of the study was not done to be able to tie a bow round it and sell it on.
Scenario 10 with a total ore tonnage of a mere 162mt will easily be smashed with the current estimates if, yet to be tested targets are shown to be shallow and of half decent grade.
Couldn’t hope for a better start going into this next exploration phase.
The International space station is over Sydney tomorrow
Date: Sun Jul 25, 5:26 AM
Visible: 1 min
Max Height: 17°
Appears: 17° above S
Disappears: 10° above SS
Give them a shout, one of the crew might be willing to take a peek out the window if it tracks that way ;)
At this point the second rigs location is still a mystery. Just looking back into the footrot update RNS
“We plan to undertake further geophysics using drone technology over the Racecourse project whilst identifying the best drill site to test the Footrot geophysical signature."
Can realistically rule out the 2nd rig has headed to footrot to drill the all important recon hole as only allows 3 days or so to get the drone over footrot and then to analyse results to plot the hole. Clear fell any trees if needed, remove stumps and construct a drill pad. Then a day to get rig in place and set up support. Not enough time!
So must be over at racecourse.
My thoughts are that as both pics of the rig on Twitter are taken from different angles. The 4x4 has gone in second pic so either on his way in or out of site to the road to the east he had stopped to snap a pic on same day. Just posted on Twitter days apart.
Does it really matter where 2nd rig is?
Yes of course if they are targeting gold rich mineralisation to add to the economics for the modelling to create open pit.