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After another listen on the move,
Sounds as though they are still looking at some small JV’s in Zambia. Could chongwa be one of them? My only slight disappointment was there was not a comment on any plan for deep drilling at eureka to test IOCG yet, unless I missed something. But it does seem as though now, with the task in hand to join up some strike, dip etc at Ascot to get some kind of resource to match racecourse in size, are we seeing a shift in the previous suggestion of having the conceptual pit AND what is there at Ascot by april/may to now it seems showing the 2mt from racecourse to Anglo and go from there to see what they want to do and to then continue drilling until Ascot has a meaningfull resource.
What did others read into Colin’s comments?

Great listen, Kevin and Phil bring out the best in Colin. Chongwa? Is producing in Zambia and eureka is waiting on the rains to pass. Really positive update on fairbride, does sound as though the company have had some firm updates on progress.
Colin confirms income will further fund the drilling efforts to continue to build the resource at Ascot . Was there a suggestion there that Anglo will be approached when racecourse is ready?
Will need to have a further listen later.

>>i thought that was common practice and also tartar sauce in plaster

Howdy cboney, be alright in a garden wall but for load bearing the mortar’s integrity can fail over time so is rather frowned upon. Don’t get me started on tartar sauce, yes it has some incredible properties and is used in a multitude of applications throughout the construction industry, but as a plaster ******er, Eazymix have gone to a lot of trouble and spent a lot of money in developing Extratime and has worked out the application rate for you and is supplied in handy little sachets. Colmans on the other hand are just lazy.
Yeeha

>>P.S. Head and shoulders is useless on pots and pans.

Likewise, Fairy liquid is useless mixed in with mortar when building a wall!
Caught a bricklayer doing just that on my site over weekend.
F***** his boys off site, had to condemn wall to be rebuilt.

The geophys is ongoing and should be complete by end of next week.
With the new drill permits hopefully granted last week too.

>>NSW Titles Management System is system still showing the decision date for the open application on EL5574 as 6 March. This is likely the application for new drill permits.
(Courtesy Andmillsy )

Hoping there would be no reason the drilling would have been interrupted and has continued fluidly as IP data has been fed back.

Little more than 3 weeks away for isa and sipp reset. We could well see an increase in volume then as investors perform some portfolio housekeeping or are waiting for the reset to increase their holding.

Is about all one can put any timeframes on at this point. But, it does show the schedule adds up and can be pieced together as news flow regarding increasing the resource has ‘arguably’ dropped right off.

There will be decent resource to offer coming out of this final exploration/definition phase. There is a clear objective and a buy back partner in waiting. There is a very good probability that the project will be sold on to a major, regardless of wether the 2mt threshold is met. Opposed to being another one of those resources that get parked up in the hope one day when there is a better economic standing for it to be sold.
Bushranger will be sold, of that I am confident, there is wealth of supportive evidence that points to a good outcome for investors now. Compare with Boda, which is a more typical, vertical multi porphry system that will be underground mined and so will have huge initial CapEx and has a ultra high grade breccia zone to thank to give it economic viability.
cadia, on the other hand, with its huge bulk of resource at below .3 copper average and with its open pittable initial production. Racecourse is in the same ball park. Albeit a more copper dominant body. Don’t underestimate, 2mt is a massive resource with or without Ascot.
So I think with the high probability of a sale and the expertise and experience of negotiating previous asset sales
along with the cherry on top in Ascot, it’s a case of ‘when’ and for how much. Not just ‘if.’

Accumulate, accumulate, accumulate!
Although, with SiPP and ISA allowances set to reset in a four weeks, the best of both worlds could easily collide! The ongoing uncertainties will no doubt factor and also the project is not likely to give us any significant news that will lead to a rerate by then.
Will it be worth waiting until April ‘if’ maxed out on allowances for 21/22.
I shall be, regardless of what happens up until then.

What would you say to Thisgoesdownigo if you came face to face with him?

Pump number 4 and two scratch cards please….

I agree Steve m, how I understand it though is that the bod can reject the independent valuation but it will then form the basis of ongoing negotiations.
Otherwise it doesn’t form a very water tight binding agreement if the valuation can be so readily turned down. The only way xtract will be free from the agreement is if Anglo pull out of it if they don’t want it.

The IP will do so much in understanding the southern extension, to then more accurately target a borehole or two to close off. Also to demonstrate that Ascot is as big as racecourse.
We cannot expect many more holes across the deposits if Colin’s aggressive internal, and project target are to be met on time frames alone. Let alone on budget remaining.
We will be looking at a complete turnaround if intension is to do anything more than what is planned and budgeted for. Will certainly then be a reliance on meaningfull income from fb to start to carry the project through if not or worse still…..
So I think folk are reading too much into what it is they are maybe planning or intend to do to close off racecourse and increase the geo confidence at Ascot beyond showing some strike, dip and width and that it is open ended in all directions.
That’s how I interpret.

Empress new March presentation released. Nothing exciting on Manica just confirms Q2 to commence production.
Presentation itself very bland and beige.

https://empressroyalty.com/site/assets/files/6241/empress_royalty_-_presentation_-_march_2022.pdf

>>>..it's kinda like being handed free cash, or an already known winning lottery ticket. Its crazy however you look at it!

It does seem that way rob, although initially there was a big risk still that shareholders took that nothing else was there to add to the 71mt. To be then tied to the agreement and not be able to sell it on elsewhere.
Different story now though!

Just out of curiosity, I had another listen to podcast from beginning of feb. In that one he mentions everything being in track, the modelling and the ‘tonnage’ modelling.
Don’t think it would be remarked upon in both these podcasts if there were doubts of there being enough.
Certainly does hint to being on target with 2mt/+
Tonnage estimate falling short is certainly the number 1 concern, so anything to favour is worth a shout.

For balance, as there will be those that would agree that Colin will say whatever suits his agenda blah blah.

https://www.vox markets.co.uk/articles/traders-cafe-with-zak-mir-colin-bird-executive-chairman-xtract-resources-cb79ec3

After a second listen to the podcast not sure if anyone picked up on it before without trawling back through posts. Colin mentions eventually finding out the copper content, starts with , “ is it 2million, 2….”the sounds then cuts for a second or two and you just hear what he ends with being “.8”
There has been a fair amount of debate recently with concerns that there will not be 2mt with grades being reported.
Was this Colin’s response to those concerns as, earlier in the interview he mentions following the boards to see where the uncertainty is.
I would assume everyone else is hearing it cut for a second or two, I would say the range he states would likely be in the two’s up to 2.8mt.
@ 5mins

Traders Cafe with Zak Mir: Colin Bird, Executive Chairman Xtract Resources - Vox Markets

Hi rob I see where your coming from now regarding news, I made a similar suggestion over weekend (27th @ 10.15) but rather agreement related was more because of current share price disparity over potential sale price why news relating to increasing the resource appears to be being held back.

The JORC code is just a minimum industry standard for resource and reserve reporting. There is a mandatory system for classification of tonnage and grade estimates according to geological confidence and, technical and economic considerations that the competent person in the company follows. It also provides definitions and guidelines and doesn’t create the estimates from data.

Hi rob just to clarify,
AA have a once only opportunity to to make an offer before the identification of 2mt which if price is not agreeable it will not go to 3rd party valuation so xtract can turn it down and then Anglo lose their first right of refusal that forms the main part of the agreement where if a ‘deposit’ greater than 2mt is ultimately identified……
It’s not likely they will be exercising their first option, they will want xtract to take all the early risks to get to a maiden ‘JORC’ resource estimate They have a responsibility to their own shareholders.

Jezzoo The project objective has always been to identify 2 million tons to then see what anglo wanted to do with it. This figure is just a threshold that triggers the buyback and will likely be exceeded with the discovery of ascot. The intention is to get a loosely inferred resource at Ascot that shows it is open ended in all directions and will add value to the project but will be quite heavily discounted. The 2 million ton requirement needs to be from racecourse deposit alone, which will be part indicated and part inferred resource. The evidence that we are seeing of a multi mineralised Porphry system indicates a similar type resource to Cadia and is likely to have multiple porphyry which are typically clustered together and not isolated. The company has a clear directive to prove the resource up to the buyback requirement and show to a major that there is the geological confidence for them to take it on and expand the resource even more. Xtract will not prove up anymore then they have budgeted for and will be far too big an operation to mine ourselves, they would never get the funding. What we prove up is what they will buy and pay for and not just the 2 million tons. Only a major mining company will have funds to mine and further explore it to its full potential.
As Colin has stated, it defeats the natural evolution of a resource.

PP
The agreement is legally binding, giving Anglo first right of refusal, an agreement inherited when license was acquired from them in 2020. The only way to be free from it is if Anglo back out. Another major will not be able to make a serious offer before.
The 50% part is for sale of the other tenements that make up the bushranger copper gold project and not EL5574 that hosts racecourse, Ascot etc

Gixxer thanks for the candid reply, I can agree there have been times from end of phase 1 where direction or objective has shifted. We were led to believe footrot was going to have a fly by with the EM to target a borehole. No doubts though, this would have been carried out if Ascot would not had been found. There was also the statement we would have the interp model released ages ago. You couldn’t have even called it conceptual. At the time I didn’t see the point and don’t believe for one minute it would have helped to drive market cap up without grades applied. Was prob just decided was a crap half arsed idea.
With Hills and Reid’s credentials. I agree it gives the project some serious credibility and with things like the reasoning behind the metallurgy work for instance giving us a positive indication project is on track.
Will keep open mind I guess