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Fair points news. I can understand more your reasoning now after explaining.
The main body of the agreement that states ‘greater’ than 2mt. Would potentially have numerous updates on way up to 3,4,5 mt to underpin exploration to date would it not.
I believe where CB is concerned he has mentioned it’s up to him to get value for investors and without a proven resource we would not be in a position to seek full market value. That’s not to say it could not happen, my opinion is doubtful without a proven resource

A revised JORC will certainly underpin a stronger mc. But not to be misled in believing a JORC is a valuation of the asset. Doesn’t quite work like that.

So what is of more significance in terms of investor confidence,
JORC updated, reaching threshold of 2mtCuEq, or confirmation of significant income from other assets?

Both concurrently would be nice!

However that may be interpreted, any final evaluation would have to be in accordance with JORC code.

Is industry standard for reporting of mineral reserves

Willem middlekoop by memory

CB >>Mission objective to get to 2mtCuEq open pit mine. The only significance of that 2mt is what the agreement says. That doesn’t prohibit you from having 3,4or 5mtCuEq. We keep talking about 2mt as it’s the trigger point, as it’s still open ended in all directions we have not got a pre-supposition that we are going to struggle to get to it as it is still untested.

That confidence is being backed by fact now as results prove what Ip and em signatures are showing.
Just missing now is a 1DAYMAYBE “Strap on” battle cry
Btw Steve4077 enjoyed the wiki fact earlier and the idea that you actually researched it :)

Some sensible questions andmillsy, a good start.
CB is a Wiley ole’ fox he will be on top of anything that is thrown at him.
I would ask you could get as much understanding of the terms in the agreement and the relevance of the 2mt as we are now heading for a much bigger resource.
The objective of this phase was to get to the 2mt which has not changed. So beyond that target assuming it is reached, a new objective will be set, what will that likely be?
Could we ask for clarity on JORC requirements and if full feasibility is necessary for independent valuation? One would assume so.
My views on requirements have not changed, I would like to add that infill drilling to the point the resource is proven would not require holes drilled at 40, 50 or 100m centres over the “entire” 3+ x1km. But, sufficiently enough to gain the geological confidence for the geologist to have in the ore body along with all the supporting evidence in place. Previous drilling, surveys etc. There are no doubt some differing opinions here with this matter.
Look forward to you guys reporting back with your findings. Would dearly like to go but cannot!
Many thanks

Also bear in mind, the overall strike length could yet compare with boda. Have yet to fully understand the system and if further intrusions are evident along the corridor leading to footrot, 7km further to south east as these porphyry deposits are typically found in clusters and in linear belts. Is potential that Footrot is part of the same system.
We await confirmation of a recon drill into footrot,maybe at the very end of this phase if CB or the phase 2 objective to do so has not changed.
Be good to know what is there, and typically with the ‘inclined’ nature of what we have found so far wether footrot is shallow to surface.
CB has stated a possible billion tonnes, that is just from the potential of what has been identified by IP and EM surveying to date!

Steve, probably the most sensible post this morning.

Btw…. Unless you are a Man U fan ;)

As many folk would have listened to the midweek takeaway with Zak Mir on the 29th sept you would have heard CB personally commend theiceberg for his ability to understand the geology of the system. If you haven’t read theiceberg’s blog already I would seriously recommend spending the time to read

Midweek takeaway- https://www.youtube.com/watch?v=PDv0OEknsLk

Blog- http://icebergshares.blogspot.com/

If you are new to Xtract or considering taking a position is worth starting with the webinar first, that gives a good understanding of the Racecourse project and the potential

https://youtu.be/GBSaqFttIyY

https://xtractresources.com/wp-content/uploads/Bushranger-Summary-Presentation_April-2020.pdf

Hope this helps anyone as there is a lot out there,

DYOR as always

If the 2mt threshold option is potentially triggered by AA, is an offer, subject to independent valuation? It doesn’t say this in that part of the agreement. Nether the less, it would have to be a considerable offer as if was rejected they would then lose the right to buy that forms the remainder of the agreement. So the agreement is very relevant. If AA seriously want Racecourse they will let it play out
As the agreement is legally binding, If xtract want to be free from it, AA will need to withdraw from it.
Colin did say that if AA are not interested he hopes they would let us know so we are free to offer it to the market (words to that effect) He probably knows we could get more on open market.
Otherwise, in AA, we have a really good buy-back partner with an agreement in place. We just need them to confirm their interest in the project.
It may even be CB would negotiate a deal with AA outside of the agreement.

The way I understand it, if AA want to trigger the buy back earlier in the discovery phase, when the 2mtCuEq threshold is met they have an ‘opportunity’ to. Not a right to. If they do try, it is a one time only opportunity before it falls away. They will then lose the right to buy with that, first refusal later on. Of course Xtract do not have to accept as is looking though it’s going to ultimately be double this at least.

>>Anglo have a once-only opportunity to exercise the 80% buy-back whether the opportunity comes through the discovery of 2 million tons of contained Cu equivalent or a decision to mine

So as the resource is going to be in way excess of 2mtCuEq the initial main part of the agreement will apply

>> Under the terms the Bushranger Acquisition agreement, if a deposit of greater than 2 million tons of contained Cu equivalent (e.g. 450Mt @ 0.45% Cu equivalent) is ultimately identified, Anglo may buy-back 80% of the Racecourse deposit at fair market value as determined by an Independent Expert in accordance with the JORC and Valmin Code

Seeing what AA wants to do that was quoted, could well be a way of giving AA the chance to make a realistic offer. But as Colin has now stated they are not stopping at a billion tonnes! Is it even likely they would make an offer?
We have 8 million in the bank and will have funding from incoming revenue from satellite mines. If we didn’t have the funding it may well be an option to make a quick sale.

I would not disagree Cygnus7 the anticipation of what those rock masses will bring to the table is unbearable. But for now at least I can understand the potential gains in confidence that confirming AA’s intent would give the market and big investors knowing a major mining company gives credibility to what you are reporting and is viable.
Market cap from there will soar.

No doubts lucky it will take a few more millions to prove up the resource to a measured JORC for the final evaluation.
The return on that expenditure will be hundreds of millions.

Seeing what AA wants to do, which has been quoted by Jeremy Reid in the webinar and with CB speaking about the 500mt target, or the decision to mine. Both options that would trigger their intent. Would, at the end of this exploration phase, require an updated JORC to confirm with AA that threshold of 2mtCuEq minimum. If they can show also, an updated open pit model for a resource of 500mt to support a mine within, the planning and costings to show economic viability then that is fantastic. It had been suggested the current inferred classification would also convert to indicated which can be used for more detailed mine planning and greater economic evaluation, which would support the decision to mine option as up until now, the aim is for that 500mt cut mine.
Seeing ‘what’ they wanted to do could be a simple yes or no wether AA are interested in setting up and moving into the region to mine or not.
The overall eventual size of resource, be it 2mt , 3 or 4mt+ eventually found, is not relevant at this point as the agreement states anyway that, ‘if a resource of greater than 2mtCuEq is found.’ With CB’s comment that, he’s not limiting it to 500mt and not stopping short of a billion tonnes! Drilling will later confirm if the larger main body to the south east will form part of a super mine 3-3.5km long overall, be a separate open pit mine or cave mined. Is clear intent though, xtract will continue increasing the resource size from the point that AA decide they want the project or not.
No, we are not interested would allow the company to offer it to other majors when the time is right. Resource building could be planned to best market the project going forward.
Yes, we are interested would mean they would go on to continue exploration maybe more methodically, possibly with more progressive drilling campaigns, employing more rigs to get the project proved up quicker, until the potential of the Racecourse deposit is successfully explored as per the agreement and in line with CB’s comments.
I’m sure that’s not far off the mark!
He did say they would stop to re-evaluate the drilling of the remaining holes. Could this be to start the infilling that he had stated previously they would do if the grades were good or supportive. In this latest interview he is now sure they have the tonnage to hopefully support the pit concept. So if they decide to start infilling this decision could well be a big one!
Would be a pivotal moment in the project, early in Q1 ‘22 ‘if’ or when AA confirm their intent. Another being confirmation of decent incoming revenue by end of Q4 ‘21. Another still, is confirming IOCG event at Eureka
All big news bombs to come.
Not forgetting Ella’s gold!

My simple overview and opinion from what’s been said.
How do others interpret what is happening?

Certainly a lot clearer to me now, the direction this is going, and that’s up!!!

Will look into understanding this big rock thing tonight using stevemocal’s scaling up method. Rumours are that pubs are now running low on beer mats thanks to Steve.

Not only that Steve, the other assets held justify the current market cap alone! As has been discussed and generally accepted. Crazy to grasp that the whole Bushranger project is still considered a free ride at this level

Chris 0610
>> 2mt Cu x $8k/t x 2% in-ground value = approx. 28p for Bushranger alone.
Minimum 2mt, realistically double that. The 2mtCuEq target is minimum required to trigger buy-back, what is there is what they will buy
In 12-18months for example.
I would be happy taking a punt on copper prices being in excess of $10.500/ton when project could be finally evaluated. Finally 3% has been suggested before considering will be easier and cheaper to initially mine and with the location close to a major port and reliable jurisdiction massively in favour.

Really good in depth interview best yet a must watch. Has blown my mind in terms of scale now with the main bigger body to the south east. CB quoting now a billion tonnes!
So much more discussed

Considering that all of the resource that is identified as being in mineralisation and delineated will eventually be required to be JORC compliant to meet with AA buy-back agreement. At some point, the company will be required to plan intense, infill drill programmes. Many will rightly understand this will be a timely process. By the time this whole 2nd phase runs down incoming revenue would have started coming in, and would hope not too long after, more of the satellite mines will be online, returning revenue. Putting the company in a stronger position then for credit to borrow against if required to, to help fund more progressive exploration across all assets.
When the time comes to start infilling, wether it be later on at the end, or more likely IMO as we go, it could be a possibility they would employ multiple drill rigs for this purpose.
How many rigs?
GGP had 9 drilling rigs operational at one point at Haverion with approx 80,000m drilled in and around july 2020.
That would literally trim months off this project. Early days yet but worth considering a possibility if you were having concerns as to timescales now involved as the sheer scale of the resource increases.

If that free spin says ‘IOCG confirmed’ then surely the market would go bat **** crazy.
It’s like having an heir and a spare as our flagship asset

Fair analysis Cyberiachas, out with old money in with the new, the next investment cycle could come round again once we get a JORC revision as a glut of folk take profits, or at 10p as investors can be quite predictable. Most will have some kind of strategy, I can recall theiceberg stating he would sell at a ‘certain’ point.
I have re-evaluated a few times now, I don’t know what that means anymore. All I know is I am probably over exposed here but feeling more and more confident to hold long and keep averaging up now from here. The hard part is knowing when to eventually sell or take profit if you are greedy like me!