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Agree with that totally gixxer, personally his commenting has given me the direction in which to steer my own research to substantiate and further understand.

Just looking back through Manica previous owners Auroch minerals news releases which confirmed on 5th july ‘13, there was significant continuation of gold mineralisation and multiple exploration targets which had 33 reconnaissance or scouting drill holes extend a couple of km across the shear from Guy Fawkes easterly toward Boa.
Results then justified an infill programme at GF, FB and Dots luck toward the DFS which all assays were returned by end of 2013. Into feb 2014 saw an environmental impact assessment delivered. Then the updated MRE the following month along with Metallurgy test results and scoping study.

Also in the busy month of March 2014 Priority exploration targets released which is of some interest (not drilled)
https://www.asx.com.au/asxpdf/20140327/pdf/42nn0zyvdqk3wv.pdf

Plenty of house keeping followed until the release of preliminary economic assessment on 11/06/15
https://www.asx.com.au/asxpdf/20150611/pdf/42z42n48gywmpr.pdf

Very soon after, the announcement of sale to Xtract under 3 weeks later 30/06/15
https://www.asx.com.au/asxpdf/20150630/pdf/42zhn3z6kyt93v.pdf

When it happens it can certainly be quick!

>>Big tail winds coming after Chinas fully reopen later in year? Could well be above 10K soon and nearer 11k by end of year.?

Agree with that tail wind Andrew
China had reported better than expected growth from last quarter of ‘22 adding to expectations of higher industrial demand. Will really kick start that recovery back to and beyond all time high.

>>Drilling at opposite ends of the shear, based on similar geological structural signatures, returned similar results, suggesting sound continuity along the shear.

Do we know if this shear was extensively drilled back then to confirm continuity or even to add to the ore reserves?

Is a very fertile region, and already having a good geological understanding is what gives the partners the confidence to add the sulphide plant extension. There is potentially a lot more to come from Manica now the initial plant is running.

Yes but only to a degree Billy , economic viability is essential for the decision to mine trigger point to force AA to either exercise their option to buy back in, or pass so Xtract can be free of the binding agreement and then offer to the global market. Getting to this key decision point is mega important for the project.

A low economic cut off grade is essential for economic viability, determined by how cheap it is to mine from factors such as the recovery rate and estimated mining cost etc. Although COG’s are not actually fixed, they constantly change for each block of ore that make up the resource as the economics improve as it is determined by the cost to mine that block and the price that a company can sell for.
An average grade is used for the assessment.

The JORC resource is looking to be in the region of 800MT+ with 1.5 to 1.6Mt of copper after infill and any further extensions with a pre feasibility study that will then show a ‘realistic’ economic study. It will be black and white as CB’s reputation becomes quite irrelevant when this point is reached.

The lower bulk grades that make up the majority of the resource can not be ignored. It will be these that extend mine life beyond the 20 years that the big miners want. The original conceptual study established that, the then current 71mt defined resource could deliver a positive NPV return at a 0.15% Cu cut-off with at a rate of 20Mt per year at a copper price of US$5 per lb.
It concluded that the >>Racecourse deposit contains significant low-grade tonnes of copper and gold which may be economically recovered at a copper sales price above US$4 per lb<<

Phase 2 delivered more than what was asked from that study to ‘increase’ economic viability by increasing the size of the resource.

It should be a big viable resource, how could it not be? Since then, stripping ratio will reduce, due to converting waste rock into ore, high and efficient recovery rate from metallurgy samples, and copper looking to rise further into the year that all have a positive effect on lower cut off grades.

I would certainly believe it will attract a far greater value than 10p per share!

London metal exchange has finally seen inventories reduce from just below 5 days to support global demand where it has sat for some time , as the demand over supply is starting to squeeze.

Copper futures eased slightly to $4.1 per pound after touching a seven-month high of $4.2 on January 13th as concerns surrounding lower global growth halted the rally triggered by China’s economic reopening. Still, copper prices have remained more than 9% higher since the start of the year after major industry players warned that worldwide production would be unable to keep up with higher demand as modern economies transition to copper-dependent renewable energy sources. Disruptions to mining activity in Peru heightened shortage worries, while top producer Chile forecasted its output to contract by nearly 6% in 2023. Inventories at the LME and SHFE warehouses fell to under 186.4 thousand tonnes, enough to support global consumption for just over two days.

* tradingeconomics.com

Or alternatively use stevemocals tried and trusted beer mat method of quantifying

Naughtygordie fair point you make, some clarity would certainly be welcome where this stands if there is a conflict.

https://www.lse.co.uk/rns/XTR/option-agreement-eureka-copper-gold-project-zambia-amhodt6e1ayqxty.html

https://audioboom.com/posts/7941767-traders-cafe-with-zak-mir-colin-bird-executive-chairman-xtract-resources

Search audioboom podcasts for xtract 14sept ‘21 if no link again

Andmillsy->> is Eureka a dud?

There is massive potential there, as there was with Kalengwa. The difference though being Eureka is placed to nearby processing plant with the dirt haul road that leads to the mine having been upgraded in Q3’21 to handle heavy vehicles to allow the transport of ore from site. So can certainly rule out any logistical or geographical reasons for not commencing operations.

A Zambia-based contractor would have been contracted for the initial open pit operation. But as yet there is no confirmation that mining has commenced again.

From final results 30th June ‘22….
In Zambia we have identified and modelled a potentially mineable resource at Eureka and are carrying out trial mining. The initial trial mining produced a very high-grade ore, but metallurgical testing proved to be very refractory. Further drilling and test mining has shown this to be a local phenomenon and we intend to commence operations during the 3rd quarter 2022.

From half year report 30th September ‘22
Previously reported drilling by Xtract confirmed continuity of the shallow mineralised zone over about 300m of strike, with pockets of exceptionally high copper grades in a partially oxidised supergene zone. A second, possible stratabound mineral style may also represent a target of interest. (IOCG)
No further exploration was undertaken at Eureka during the period pending consideration of options for possible future development.

So being a significant undertaking, with maybe wanting to streamline the contractual obligations of the mining and exploration activities. is likely the company is just holding back due to limited resources.

The principal activities for the 12 months from last sept to sept’23 that resources have been allocated from recent half year report.
 
? Operating alluvial gold mining segment - Mozambique
? Mine Development - Mozambique
? Exploration
? Investment and other

For interest, last podcast dedicated to Eureka from back in sept ‘21

The Traders Cafe with Zak Mir / Traders Cafe with Zak Mir: Colin Bird, Executive Chairman, Xtract Resources

Mining update article from John Cornford. A fairer reflection than the October article before it. This latest is still a bit hit and miss though.

https://masterinvestor.co.uk/commodities/december-mining-update/

Was from 1st December but I’m sure it was missed on LSE at the time. So apologies if was posted before

Very unlikely yet to be in talks with AA.

Colin buying may not necessarily be based ‘only’ on his confidence in the economic assessment for BR. The company generally is in a very strong position going into this new year.

Majors buy success, at present there are only the resource statements to quantify contained copper and rock mass. The mining/financial study will show potential viability and recommend what’s required to maximise that potential from additional targeted drilling to open pitable areas that will follow. It will be ‘after’ this necessary phase that the project will go to pre feasibility that AA or any major is very likely they will want to see first before making any considerations.

Hi NtM
>>>To me, this s/p decimation feels more and more about CB's credibility than the assets here, alas

?Had considered this too but as has been commented on throughout the s/p decline, the sells against buys doesn’t reflect a big sell off. There is a post over on the dark side about the stock being shorted. What do you reckon?

>>>…..MM's use XTR as their personal money box . Spiking the Share price so they can short XTR for as long as they want without a care what production figures are and yes XTR are a gold producer as well as an exploration company with a Market Cap of just over £15m . Doesn't sound logical when you tot up the assets , revenue producing fair brides , 100% wholly owned prospect , in Mozambique does it . Alas , to a shorter it would though especially if that shorter wanted the Market Cap to go as low as possible believing the MM's will give clues as to when to close their short ..... :-)
I've seen it all before and thankfully made a fair bit keeping an eye on the assets rather than Market Cap which is determined by the MM's

Although just recently stated, the global economy is "perilously close to falling into recession", according to the latest forecast from the World Bank. Regardless, copper is looking good, continuing its recovery.

Copper futures crossed the $4.1 per pound mark in January, the highest since mid-June with continued support from expectations of stronger demand and looming supply concerns. Top producer Chile forecasted its output to contract by nearly 6% in 2023. Major industry players warned that worldwide production will be unable to keep up with soaring demand as modern economies transition to copper-dependent renewable energy sources. Consequently, mining giant Glencore estimated a cumulative supply shortfall of 50 million tonnes until 2030, and Trafigura warned that current global inventories can supply world consumption for less than 5 days. In the meantime, Chinese authorities reopened mainland borders with Hong Kong and relaxed quarantine for incoming travelers, further moving away from its strict zero Covid policy and raising expectations of higher economic activity and increased in demand for industrial inputs.
* tradingeconomics.com

Lucky. Fri 10:44
>>Colin was saying something about the cost to process is now down to about $10 per tonne.?At 0.1 cut off you are breaking even.?Better to process the ore and break even than spend $5 to remove waste and dump it. <<

For MRE reporting, cut off grades tend to be rounded up to ensure that material with no economic significance is included in the resource. Which means with a COG of 0.1%Cu, material of that minimum grade will be profitable!

Give it a rest kwak, but congratulations anyway, you have just highlighted the typical business model of most fledgling, small cap, junior exploration miners which usually, often throw all their energy and resources behind maybe a couple or usually, just one project. Without any regular income stream which is typical of most juniors, share dilution through allocation of new shares is harsh reality in what is, the most risky sector to fund these growth opportunities to advance a project, so is all the more important, for the future of that business.

With Xtract, the production side of the business is maturing to the point that it will potentially now pay for further exploration, along with its partners to also increase ‘current’ mineral reserves and plant capacity. Without the ‘eventual’, or need for further placings the company has great potential to now grow, under its current strategy.

Observers must simply ignore Kwadoku’s share price examples as they do not take into account current market capitalisation, any share dilution including value of assets acquired in that time and the obvious economic downturn.

Both I guess eastern, what is alarming though is I thought the bit about wanting to strangle my puppy would invoke a response !

Disclaimer-
No puppies were every harmed while structuring this apparent poorly executed joke and any implication was for comedic effect.

Just to be clear! Now where’s my coat.

Brilliant analogy Andrew very funny end, I compare being invested in Xtract with Colin Bird at the helm to getting my pedigree working ****er Spaniel pup.

I often think what the hell was I thinking at the time when I picked him up. He too, can send me through every emotion from joy, frustration, anger and disappointment. All within one day! But ultimately, we love our over exuberant pup and could not give up on him, even though sometimes I feel I could strangle him!

So from our research into the breed, given patience and time..I’m certain he will eventually bring us the happiness we crave and satisfaction in choosing him. But also for not deciding to pick up a mongrel just because he was going cheap.