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Big thanks to Andy Mills for doing the xtract piece and his/your efforts in getting the word out there through the social medias too. Top man.

It’s simply a win win situation to be in Andrew, however the resource is packaged it comes down to the strong probability that it ‘will’ be sold. And not be just another one of the many resource that gets parked up in the hope one day, a major will take it off your hands. So, I will be more than happy to be wrong in my evaluation if events don’t go to plan ;)

Suggestions that xtract are proving up the 2mt as quick as possible to hope Anglo turn it down. To then go into a further exploration programme to find more porphyries maybe with a fund raise (or not if income streams are meaningful)
That doesn’t wash with me, if xtract wanted to seek further value on their returns from this project. Would they not do it from the offset, prior to starting talks with Anglo?
Unless of course, Anglo confirm their intent to buy and are happy for Xtract to then continue taking all the risk to identify and prove up more resource for them. Is this likely? Not a chance, we would be puppets.
The other, if Anglo choose to buy what’s on the table, there could be an opportunity for a JV to explore the remainder of EL5574. If lowly xtract have the negotiating prowess to strike a ‘very’ good deal over a major. Then maybe! So probably doubtful given cb’s stance on JVs.

Is not so much the relevance of the June timeframe to approach Anglo. More the plan to do so, without a further lengthy drilling campaign to go into ‘a’ next exploration phase, of which he has now stated will not be needed to prove up Ascot . That my point being, CB has never given any indication they would go ‘long’ on exploration beyond the phase 2 directive of proving up the 2mt+ and to then offer it to Anglo. With Ascot being partially drilled to outline it with a strike length determined. Along with the geophys to compliment that data they will have, that I’m sure will add good value to the resource package on top of the 2mt, we get the meat with some gravy, Anglo get what’s left on the bone.
I would argue it’s just not the same as his predicted flow of assays calls. this was more a project directive call.
And maybe one that would still not change if Anglo did turn down the option to buy back and the size of resource package would remain the same to go on the open market.

Have shared your opinions all along and was more than willing to ride this out with faith in Colin bird to get the best return for investors. I’m sure Colin bird and the team would dearly enjoy the accolade in proving up a cadia ridgeway type multi porphyry system in LFB. The kudos and bragging rights they would get from it in the mining fraternity.
But, from his latest comments, this is not going to be the case if Anglo decide to take up the option in the timeframe Colin has laid out. On this occasion, and for the first real time he has given a clear indication of intent, and yet we still second guess him. It wouldn’t be just an over optimistic statement to give a June latest projection. It would be a lie, as it would no doubt be followed by a fund raise, why would he feel the need to stimulate the market, other than to get market cap up by making over optimistic comments. That would not go down well with shareholders after being lied to.

My initial feeling after cb’s latest interview was that this was now plan B. Switching from, a longer programme altogether that would have seen further drilling phases to identify and prove up potential multiple porphyries including footrot. Maybe because of the poor share price trajectory had hampered any chance of a further raise to take the project to the ‘next stage’. But alas, maybe I was blinded by a bigger pay day 18months to 2 years away. Listening back over the many interviews, cb has been consistent throughout in the 2mt threshold. Any clues or indications along the way Could easily have been misinterpreted when personal greed clouds that judgement. The obvious one being, ‘greater than 2mt’ in the buy back agreement. It does seem apparent now that maybe it was never the case to go long, or in particular, go into that 3rd phase of drilling that was discussed on the forum. Some other comments that could have been taken the wrong way looking back, were, “we are still in the early stage of discovery.” Taking on the JV’s to “fund the drilling efforts in oz”. And the “not stopping at a billion tonnes” comment.

Interviews are a great source for discussion after, but shows how you can read into them too much. Still not there just yet, but it’s looking very positive. Early retirement by year end is a possibility now, or put it another way, it was always likely a possibility. Doh!

CB mentions the requirements for a decision to mine from 9 mins

https://youtu.be/2WFUFdHX62Q

I shall try to track down the interview where he discussed it. Was probably around Q2ish if I recall
Posting history is unavailable at present.

My thoughts too ntm you never know what ur gonna get with cb.

The trigger to buy back
It would be seem unlikely that Xtract would play the decision to mine card Ella. Colin has made it very clear that xtract would simply not get the financing to go down that route, this is far too big for a small cap exploration mining company to take on to be credible. In the past he had said that the decision to mine would involve detailed mine planning, and something along the lines of, stripping off overburden to expose the ore body, partially. Sinking a shaft, partially. They would only realistically consider this if the 2mt is not going to materialise. Worth remembering that the 2mt threshold is copper equivalent, so made up from copper and gold grades, the gold converted into the equivalent copper grade to make up the one commodity. With racecourse still open ended to NW marginally, and to the South. If they felt the threshold will not be met they would still have the option to extend drilling to increase resource there. So wether or not they would still close off racecourse anyway, will be seen. Am confident target will be easily met from racecourse deposit alone. Potentially if Anglo bought it back, but did not want to actually develop the site, they could further increase its value by there own exploration to increase value to sell on themselves or JV with an oz operation. Potentially a cadia type system they will surely not turn it down.

Thank you for the couple I missed there Steve.

Are 25 holes if you include 37 and 38 that have been completed and are yet to have assays back. The latter holes potentially not yet sent for analysis.
Holes 7-12 averaged 9 weeks from completion to assays reported. The last and only other hole with assays reported was hole 15 that was approx 15 weeks between completion and assays.
Holes 13 and 14, have been 18 weeks today since completion of holes. These are the next due back.
Chances are, they could just be simply delayed at lab. Alternatively, could be batching them to be reported together, and are due shortly.
The other possibility, if is legitimate, could be collating the assays as they get them back, into the interp pit model, to be reported when completed.

The grades will be mixed good and bad, overall average will be more than adequate. In line with the current inferred resource of 71mt @ .44. Very unlikely grades will just drop off the cliff.
I think Colin has been conservative with estimates on tonnage anyway, so worst case I would say, would we only just hit the lower end of his estimate of between 400 - 600mt for racecourse.
Footrot is a mystery, not even a consideration of drilling if the latest interview is to go by.
To hit his timeframe to approach Anglo there is not enough time to drill it to any meaningful amount before then anyway, so worst case no value is attributed to it.
Something left on the bone maybe, private negotiations could well be under way.

Seems plausible to assume that prospectore will be bought out and would include the other tenements in the bushranger copper gold project. If AA want it they will want it all.
I would hope somehow Xtract can retain exploration rights in LFB some way, maybe to work with AA in a JV but would think doubtful.

I believe that it what is meant, the cash payment/dividend will go to the acc holding the shares and will then be subject to capital gains tax if not held in isa trading acc.
Will not be a cheque in the post!

A post over on ADVFN by Thediddymen at 7.15am explains the process of returning the proceeds of purchase to shelareholders.
Pop over and take al look, I know a few have asked the question.

Now there is a clearer directive from the company in potential timescale. One of the potential market perceptions that this would have taken 12 to 18 months plus to prove up, also the funding that would have been needed over the multiple targets. Would clearly have put off many in taking a position. Many on here who are well researched, including myself believed this had some way to go. This latest interview will hopefully change the minds of many watchers to now decide the time is right for investment in xtract resources.

Bump to the top
A must watch!

https://audioboom.com/posts/8006238-the-sunday-roast-presents-12-stocks-for-the-12-days-of-christmas-episode-10-xtract-resources

Could this latest revelations regarding drilling soon coming to an end and a resource package being put to Anglo by the middle of this year have anything to do with the lack of buoyancy that we’ve seen in the current share price. I wonder if the share price had of surged on, we may have seen a placing to further fund more extensive drilling to identify more resource. After all it was only a short time ago that Colin was talking about taking on a couple of African joint ventures to help ‘fund the drilling efforts in Oz.’ That kind of doesn’t hold water, with what we now have been told. He has shown great disappointment in the share price trajectory up to recently too, with many suggesting he was after funds. I wonder if we have reverted to Plan B and he has been in contact with our buyback partners now, to get this sold quicker due to the economic constraints. He did say we have lots of optionality, maybe he is exercising the best option available now.
Still however you look at it, is fantastic for shareholders, and would then hope the next drilling phase can progress at our other exploration project at eureka to test IOCG theory.

Thanks iceberg for clarity on MRE. Happy to be wrong. Now makes sense!

Just a bit on the JORC resource too.
There have previously been some suggestions that an MRE will only be needed for a sale but there is a requirement in the agreement, as Steve4077 says, for resource to be JORC compliant. Colin has clearly stated that they will use internal estimates to put to Anglo when the time comes, but it will still then probably go for 3rd party valuation, which we also heard
him say. (If no deal is agreed which I think is likely)so ultimately will require JORC compliant resource over MRE to comply with agreement. Maybe to confirm Anglo intent first?
We know they are doing the Metallergy work to determine the separation at processing. This will go toward conceptual mine planning and help evaluate a commercial cut-off value and would certainly go toward scoping/PFS that is ongoing and would support a JORC compliant resource.
So if the clear intent is to not proceed with any more drilling other than what Colin has suggested, then there would be no reason not to update the current JORC when assays are in.
Would there??

Cygnus,
I think with the geological similarities that porphyry intrusions will likely have that are clustered close together, it may not be as necessary in normal circumstances to prove up to the same level of geological confidence to racecourse. With the comparative geophysics along with the recon drilling into ascot, it will give a good degree of confidence in the deposit. As for a valuation, we can only second guess :((
just my opinion of course