Member Info for howezap

A small scale operations are far easier to obtain permissions, due to the reduced social and environmental impact. Also with Amghas having been a formerly producing small commercial scale mine, would be seen as a positive already ticking many boxes toward an initial artisnal scale mine. He mentioned last time that all the necessary applications are already applied for so hopefully it won’t be too long now.

What’s the odds on xtract going into ‘production’ from at least one of the small scale mines ahead of Bezants far larger operation.

Fairly good odds I’d say.

Latest interview pretty much what we already knew regarding the mining start ups. Colin mentioned exploration funding was only covered by Manica cash with any mine development, requiring extra funding which was a given considering half year report stated-

Disposal of Xtract's 23% shareholding in the Manica gold mine project, allowing disposal of risk as the mine entered the complex ore mining phase, securing future income to fund “exploration activities” at the newly acquired copper projects

The talk about what to do with BR shortly after the Racecourse MRE and pit optimisation study was that one option was to float it on the ASX as a seperate IPO, to go it alone and raise capital to fund pre feasibility. A JV or equity funding being other options he originally mentioned.

He hasn’t since then, ‘specifically’ ruled out these options, until today with comment to ‘not’ IPO bushranger (@50mins) pretty much confirms, they do not have ‘any’ desire now to continue to be involved in advancing to PFS which there has been some uncertainty previously from those past comments. Certainly adds much more weight behind selling it outright, the preferred way to monetise it and to an Oz suitor perhaps.

https://audioboom.com/posts/8809731-sunday-roast-featuring-mark-cody-founder-of-joyrider-and-colin-bird-executive-chairman-of-xtrac

Guy

That really is an interesting scenario, but can’t help but believe it would never happen. Generally, junior explorers don’t get taken over , even by hostile takeover.

Merging would reduce exposure to the capital market from two seperate vehicles to raise funds. There will be tax liabilities to consider too as by keeping assets in subsidiaries under one company they can effectively offset losses etc to reduce solvency issues. By operating under individual mother companies effectively protects solvency further up the food chain.

Archers latest substack gives a good synopsis of what is currently happening

Very relevant here altho not AMRQ specific

https://open.substack.com/pub/thatstocksguy/p/this-market-weakness-is-not-unexpected?utm_campaign=post&utm_medium=email

Dickie3 times, current high copper price is not being driven by demand, but supply constraints. With the demand increase toward the energy transition which has not really even started yet, only being one contributing factor toward the current and impending supply deficit expected to really kick in soon. The main driver will be the electrification infrastructure to supply the billion or so people on the planet that currently don’t have access to it across major griwth economies like Africa and Asia too.

It is also really important consideration of the fact that the declining average grades mined are ‘not’ just solely due to depleting higher grades but also due in part to the advancements in processing technologies over the last 30 years that have allowed lower grades to be exploited. So higher copper price in the future will only go so far to allowing previously uneconomic ores to be economically extracted and recycling won’t even make a dent in the demand supply defecit.

The world will need ‘major’ new sources of copper and that supply will not be delivered through current known resource potential, but through new major discoveries of very large bulk tonnage long life mines that are far better at riding out market volatility. 60-70% of current supply comes from these type of deposits.

All miners tend use a conservative figures but with the increase seen in the gold price since then and likely to sustain current level MRE5 should see an increase in gold price used which would assist in lowering that economic cut off grade allowing the conversion of more resource into reserves. A win win 🙂

Good point CP, additionally looking toward previous comment from James Gilberston too that

“we remain confident in our ability to define additional high-grade zones and optimise our production strategy.”

Also when the plant goes into final flotation stage, they will then optimise recoveries through various protocols to extract every last bit of recoverable gold down to the economic cut off grade. So these processes are ongoing all the time to reflect changing prices to see the plant continually runs at its most efficient and consistently within its maximum operating parameters.

‘26 will be a good year to drive up the MC , you can count on it!

“Drilling deep holes in Australia doesn't cost that much!”

The real point is it does cost a lot of money, an awful lot of money to drill deep DD holes.

Typical costs for diamond core for instance ‘per metre,’ range from A$100 - A$300 depending on core size and environment. which doesn’t include the geo team analysis, assays, modelling environmental reinstatement etc, just drilling. So looking at average of over £100,000 or A$200,000+ for just ‘one’ deeper hole. There are also the costs of the Reverse circulation rig to pilot the hole down to the target anomoly depth to offset.

Exploration season results cannot be too far away, particular those from across the copper belt, mainly the porphyry and epithermal targets of which I have a real interest and passion for.

‘25 campaign there was led by recently appointed specialist geologist Dr Steve Garwin. His job, guided by geophysics and previous exploration data, to outline major porphyry a epithermal mineralisation.

I’m hoping the team were able to retain the flexibility that was offered to them and could do some initial scout drilling to any number of new targets where positive results were hopefully seen, to get a jump going into next year and be a great endorsement behind his appointment.

These mineralisation styles require a completely different approach to data interpretation as well as resource modelling toward targeting the drilling. Mineralisation trend is not as predictable like veining or skarns, they are generally more disseminated in deposition with much lower grade but formed in huge bulk tonnages of host rock that provide economy of scale.

The biggest major copper mines in the world that produce 60-70% of the world’s copper are from porphyry deposits. The whereabouts of most of the ‘undeveloped’ deposits are very well known and fairly well documented, typically found in mountainous regions around major tectonic fault lines.

New major discoveries in the usual places are very, very rare, put it that way. The world will 100% need major new discoveries!

“Gold should stabilise and then grind higher from here.”- E1

Shared from Archers TG group

When you hold physical gold outright, its value doesn't depend on a bank staying solvent, or a government honouring a promise, or a business meeting its obligations.

There is no balance sheet behind it that can fail, no contract that must be enforced, and no intermediary whose mismanagement can undermine your position. In a financial system built on leverage,gold stands apart as an asset that is not someone else’s IOU.

Every other major asset class (equities, bonds, real estate, cash in the bank) relies on one or more counterparties doing what they are supposed to do. Those assets offer growth but they come with structural dependence. Gold, and to a lesser extent silver and platinum, are the only assets that sit outside that chain. They still carry price risk, but they do not carry promise risk.

Gold is the ultimate insurance policy in what is an increasingly insane monetary world - C Archer

Make sense?

Yes Vagar is a ‘key’ exploration project with super high grades as yet to define a concentrated deposit though, but has incredible potential, multiple anomalous targets to go at. They will inevitably make a big discovery there which will be a lot closer than Nanoq giving it a strategic advantage.

I referred back to Eagles Nest from last years results that saw particularly impressive high grades returned and giving it ‘strategic importance.’ But so far seems to have been quiet there this season.

Just goes to prove the high level of prospectivity and untapped potential there is, to just move on to the next bigger target with even higher grades. Is awesome and testament to the portfolio that Kangalusuk by name could even be overlooked. Another key project.

Due respect Cardo but, all projects are managed by the management team, it is down to the geologists, through allocation of treasury funds to essentially try to eliminate projects to the back burner to be able to concentrate on the best options that see the best potential returns in the shortest timeframe with available funds. The shift toward advancing the small mines strategy is to take advantage of the more heady copper and antimony prices with the extra up front capital required for this. But it’s not a scatter gun approach, it is simply having optionality and not tied through lack of choice to pinning all hope on 1 or 2 projects.

No one can argue the necessity to start to supplement the Moz mine sale income before it dries up and ramp up in time to sustain the income stream well after.

They cannot progressively advance all projects at once. But do agree Colin needs to be able to bring the small mines online to claw back any mistrust now. He’s well and truly thrown down a marker.

Doh! Edit- 450t ‘per day’ under feasibility, but everybody by now should be well aware of the plants current and phase 2 operating parameters. 🤞

Putting Nanoq significance into perspective, they will eventually push forward a final 3 probably 4 now, major projects to focus on mine feasibility into mine development.

This time last year, based on a hypothetical 10 steps, toward being a mine. Nalunaq was at 9-9.5 this year now a 10 obviously, Stendalen about a 3, Sava probably just a 2, and Nanoq about a 3 or 4 on that scale last year on comment from Eddie Wyvill . So potentially the most advanced gold project and sure priority as a feeder to Nalunaq to provide ore to utilise the extra throughput capacity planned of 450tpa subject to feasibility.

This seasons past campaign see multiple rigs deployed at Nanoq for its inaugural MRE to push it another step up the scale and clear front runner toward being a mine with Stendalen moving into drilling phase next season to see it advance but pending results.

There are 9 Nalunaq satellite gold projects most in early reconnaissance phase so very low on the scale still, maybe Eagles Nest and Vagar the next nearest toward a drilling campaign of those in a season or two. Any project, can and will leapfrog to the top table if results warrant it though and displace Nanoq, but it will need a significant discovery for that to happen.

Doesn’t include the copper and critical minerals programmes where many assays are pending from ‘25 campaign and now Black Angel taking a joint leading role to be the next standalone mining development and satellite hub. So clearly now, along with Nalunaq and Black Angel, Nanoq is the 3rd priority project and will be a major focus again in the ‘26 campaign im sure based on the feedback there has been from Archer et al.

Hi Jez, kev is too outspoken and opinionated, I think if he wanted to post on LSE he would engage more directly and not hide behind an anonymous account to just post in a defensive way ( no offence OSV )

Come across this in following up on Greenstone belt and BIF deposits. Thought was worth sharing for the wannabe rock hounds amongst us. Easy read.

https://aheadoftheherd.com/gold-rich-banded-iron-formations/

Kev is an investor and posted on TG he is going to line one up. I’m just relaying what he posted.

The Morocco venture is a strategically significant critical minerals project. Should attract a lot of attention. We will hopefully hear more from CB next week as Kevin Hornsby will set one up.

Latest appraisal from Archer

https://open.substack.com/pub/thatstocksguy/p/amaroqs-black-angel?utm_campaign=post&utm_medium=email

Maybe we will get a latest health check and analysis of latest q3 report from him to follow.