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There are 5 licenses to map and ultimately plan for the best possible outcome from a first exploration phase. Surely it can be appreciated that the company are not simply going to indiscriminately drill here there and everywhere in ‘just’ hope.

You want to hope CB doesn't retire, as it could mean curtains for him if he gets under her indoors feet. She might feel the need to bump him off and offload all his shares.

Commonly referred to as a 'Bump and Dump' a bit like a Pump and Dump, but accompanied by a very brief searing pain on the back of the head!

Appreciate your reply and opinion billy, can understand the need to raise to pay bills, creditors etc, but just to fast track exploration doesn’t make sense. Large upfront cost for purchase/buy in for another acquisition would not happen as it would not fit with their investment framework and strategy. Silverking they are only committed to $500k over 18 months, they already have a mining license that if and once mining starts will contribute toward exploration. Zambian commitments for “both” phases was dependant on outcome of Manica disposal. Along with exploration at BR up to ‘25. All stated in audit.

What will say, an extra cash injection of £2m be used for and please don’t lower yourself by saying a new racehorse. 😉

Hi Jez I don’t think I am any more enthusiastic now than anytime before. Granted some choose not to invest more to reduce higher averages, some are not in a financial position to. Others do not agree with the strategy of averaging down preferring averaging up. Totally understand all that, but I did not suggest it a bargain. That would be very rampy jez

Billy you see them raising funds from market.

I don’t see it, certainly not with as low MC. Can understand the necessity to have raised £10m for such a big drilling campaign as was phase 2. That was raised when MC was driven up to 50-60m gbp. Now with guaranteed regular income until ‘27 they can reliably allocate over a 3 year projection, all surplus funds to advance projects within that considerable budget. Which it is for a junior with a MC of £7m

Max £2m raise would cause considerable dilution, no project would be worth the risk v reward against current MC for such a small amount, it would be reckless when the company is already receiving 3-5m annually until ‘27.

What because success was guaranteed nailed on ? Everyone has a choice. I choose to do something while market cap is low.

Good luck everyone in whatever you do.

‘Arguably’ it is good news that you can now buy shares at a considerable discount to previous couple years. Fundamentally the company is stronger now is my point. Sorry I know that’s not going to be popular but you should only concentrate on the present and not dwell on the past. Ideal opportunity to accumulate.

Hey Andrew, just optimising could alter the project economics to the point where a decision can be made to go into pre feasibility. I dont believe there is a necessity to wait for copper to be sustained over $12k for that to happen.

Im sure that is the intention after listening back to cb comments and with similarities with other projects development. As drilling has been in the planning stage since last year and with allowances made in '23 report for limited exploration at BR to be covered without need of raising funds from market. I take that as their intention to continue to progress the project to improve on the economic performance, may that be drilling still toward supporting the ongoing scoping study or with good pre concentration input, any further technical work after could well be done toward PFS whilst assessing their funding options to fully advance the PFS or sell of course.

It is worth pointing out there is plenty they can and still needs to be done to bring costs down with funding options not necessarily reliant on an immediately higher copper price with a comment that they kept drilling and drilling BR in the hope it would attract interest.

Selling may be a little different as value will be determined by NPV so naturally they would want to wait for $12k copper.

Respect

Guy

Results of pre concentration, optimisation of plant and op costs, additional resource from further drilling to then be incorporated into final model that ‘all in’ would positively improve NPV (all’s well)

Current financial model is not done yet.

Hence importance of additional studies.

The company did not contribute anything towards building the plant to negotiate a royalty payable perhaps.

The processing

costs are estimated to be approximately half of the total production costs, so it was suggested that pre-

concentration could have significant benefits. Several studies were initiated to assess the effectiveness of various pre-concentration methods. As one of the major benefits of successful pre- concentration which would increase head grade and reduce mass of downstream processing it will reduce pre-production capital expenditure due to the need for a significantly smaller concentrator. So it hasn’t been appropriate to include CapEx at this stage until the outcome of all test work is known to determine a design concept.

As a result of the lack of investment over the past 10-15 years or so in the resource sector particularly in Copper to find, advance and develop new discoveries there is a looming supply deficit expected to hit by 25. Smaller resources are currently more favourable as a shorter term option to get into production quicker to plug the gap but it will ultimately be large porphyry deposits that will feed the copper demands in the future.

Don’t be sucked in by the whole low grade debate. It’s not about the grades but what can be economically exploited essentially down to economy of scale. Look at Aitik in Sweden.

Due to environmental and social acceptances of these large open cast mines around the world now, ESG compliances have tightened with ever increasing and more stringent obstacles to overcome in obtaining permits.

As for comparing then with other large porphyry discoveries BR is in prime location with a supportive government. NSW electricity grid is currently up to 50%+ supplied by renewable energy. A huge plus for future mining as is highly likely that any new big mines will be at a premium if supplied by renewable energy.

Operations with greener credentials will trump those that are maybe higher grade but are off the grid as majors are under increasing pressure to also clean up their act.

“Lots of coulds, ifs and hopes howezap, not much else.”

Oh I don’t know, I have dreams too!

“WHEN ARE WE GOING TO SEE THIS SHAREHOLDER VALUE YOU KEEP TALKING ABOUT MR BIRD ?”

Could be as soon as the third quarter, if results to upgrade are favourable. Will have 3 bites of the cherry to bring break even cost down, from known tried and tested engineering tech that has been around for ages. Whereas the BOS tech was going to be hit and miss as is a relatively new tech still so there simply isn’t a large data base across many different mineralisation types to compile BOS models to compare or apply to new projects or existing mine upgrades.

He did say they kept drilling at BR in the hope it would attract interest, so maybe selling is still first option. But if not sold soon, then there are still options to further improve the economics which will improve the project options.

Ultimately the higher up the value curve it can be pushed the better the return to shareholders will be.

Hi joeman there have been various pointers to further work but the most telling is from the latest end of year page 21 under ‘Outlook’ it states, - “we intend to continue to move forward with our basemetal project in Zambia as well as in Australia also……”

More importantly, on page 54 under ‘going concern’ - “The directors have assessed the working capital requirements for the forthcoming 12 months and have undertaken assessments which have considered different scenarios based on exploration spend on its exploration project in Zambia and Australia until June 2025.”

With a next 'potential' exploration phase in the planning at BR I would anticipate it would be extensive enough, to not only find extra high grade tonnage, but also to maybe increase the indicated amount of RC and maybe a couple or three recon holes in an unexplored anomaly south of Racecourse. Footrot drills were inconclusive so to now follow up on the IP survey completed over the south of RC with some reconnaissance drilling would make sense to increase on the number of identified porphyry of what is an already confirmed multi porphyry localised system

Early stage induced polarisation survey done by ProspectOre (xtr), was reported that results identified the extent of mineralisation could extend to 800m north of the original resource.

https://www.rns-pdf.londonstockexchange.com/rns/7490Y_1-2021-5-14.pdf

Follow up MIMDAS (IP) survey at Bushranger in the area to the south of Racecourse and over Ascot. These later lines traversed the anomaly identified in AA's historical sweep of the area

https://www.rns-pdf.londonstockexchange.com/rns/0494D_1-2022-2-28.pdf

Historical IP slice at 600m depth.

https://www.rns-pdf.londonstockexchange.com/rns/8649O_3-2021-10-12.pdf

As for budget, £2m from treasury funds will go a long way to improving viability and hopefully allow the company to make a decision to go to pre feasibility with help or sell on.

A PFS is likely to then cost in the ball park of £10m.

Obviously the economics of BR are not where the company would need them to be just yet, the outcome of this second round of pre concentration is certainly important if the project is going to have the financial clout to be able to get the funding through equity, a JV partner that will put up the cash toward a PFS or to attract a buyer.

The third exploration phase to find and increase high grade tonnage will either be necessary to get the economic performance up where all other optimisation falls short, or it will essentially be done as the projects next evolutionary step toward pre feasibility anyway to improve economics.

So by my reconning, supported from way back at the ‘22 AGM where Colin said then, “we will probably end with a near surface drilling programme at RC.” It may well see, this phase budgeted for from treasury funds as it has been in planning stage for some time.

An alternative view could be that there is a preference to achieve the necessary economic performance from virgin rock, ‘without’ the pre concentration steps to give a stronger bottom line business case and give interested parties greater confidence in the project.

The latest podcast comment regarding a seperate listing for BR is interesting. It would certainly imply an intent to take BR onto pre feasibility.

We know another drilling phase was already in the planning from past report with latest stating that the second round of test work results, if considered appropriate, further financial and technical optimisation will be carried out. Amongst other, drilling could very well be included to look to increase resource tonnage in that optimisation.

As drilling was already in planning they could actually be adding this third exploration phase regardless of the impending test work results.

The company have also just stated that exploration spend up to ‘25 from projected cash flow has allowed for exploration at Bushranger and In Zambia.

Watch this space as the next BR push could be toward being an economically desirable asset that ‘will’ attract interest.

Kakuyu is finally mentioned in the strategic report section of the 24 report on website since it was dropped from the last corporate presentation and seemingly had been mysteriously forgotten about.

States that work completed focused on defining the validity of a future open pit mining operation and licence wide assessment of other areas of additional mineralisation.

Nothing other than that to indicate intent to start running ore off site for processing so could they be holding off until Silverking has ore to have joint operation in some form with them being nearby to each other.

The more contracted ore deliverable could benefit by means of a higher premium?

Cash banked and operating profit now reported.

All exploration spend for another year covered from cash flow anticipating no fund raise needed once again.

Does mention exploration spend for BR too which to me could signal some further drilling potential or other.

But covered nether the less.

First impressions are certainly positive