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A company called NextOre produce an on-conveyor MR analyser bulk ore sorter which is the tech trialled at Cadia and a big mine in Chile. This could possibly be what xtract are testing. Interestingly, it has been successfully trialed by scanning chalcopyrite copper ore grade which is far more weakly magnetic than BR’s waste material!

>>>…..allows for the grade of high throughput ore to be measured at industry-leading accuracies and at speed. Due to the high speed of the technology, the integrative system is able to perform the analysis, computation and physical diversion of waste ores down to one second intervals allowing for fast diversion.

NextOre’s MR technology is the culmination of decades of research and development by the Commonwealth Scientific and Industrial Research Organisation (CSIRO), with the division spun out from the organisation in 2017. Since then, NextOre has gone on to demonstrate the technology’s viability across the globe.

Dani, think is up to 6 weeks for approvals but can’t be sure. As for costs it’s just guesswork at the moment. But as was recently mentioned by Littlewing regarding only a resource with economics that work for Xtract needs to be provided to trigger the AA option. This post from a ‘previously’ respected member that attended last years AGM and reported back, supports that theory, so further drilling may not be overly extensive.

>>>I asked quite a few questions on the strategy. In principle it seems to be:

1) Announce RC decision to mine based on 500mt (ish) using a model with a copper price in the region of $8500. Total contained not specified but we can probably assume around 1.5mt. The intention seems to be to get the AA decision out of the way early. Colin expects copper price to reach 15,000, so (reading between the lines) it seems to me they want to announce this model while we are below 2mt and the copper price is low in order to get a 'no' from Anglo. I asked if getting Anglo out of the way could backfire as it removes the shield of that agreement and allows a lowball bid for the company. Colin stated that junior miners don't suffer hostile takeover attempts. The only example he could think of was SOLG and that was due to conflict within the company.

2) Phase 3 will follow the above (which is interesting as they assume there will be a phase 3) and will cover more definition on RC higher grade area to improve the IRR, further drilling at Ascot and NW of RC, which they now seem to think is actually open again. This will happen sequentially, not all at once.

3) Start talking to various majors who are more likely interested because they already have a presence in the area (Newcrest?). Again reading between the lines, it sounds like informal contacts may have already happened. Colin made it clear that when a deal happens, it can happen quickly.

Based on the above, the 2mt seems to be a moot point because it will become irrelevant once AA reject (or accept) the decision to mine trigger. This seems to be a coherent strategy with defined steps. It could be a relatively quick deal if Anglo trigger the buyback on the decision to mine, or maybe 6-12 months for a different buyer. Colin made it clear there would be no JV. Whether people will be happy with that strategy will depend on their time horizon and prior expectations, but given the current market cap I will probably add as funds become available.

Hi Dani yes is a possibility that I was thinking, as phase 3 optimisation drilling is not dependant on the outcome of pre-concentration study. Recommendation of drill targets have already been identified by Optimal in their interim report to xtract. So in ‘theory’ applications could be sent. You never know!

Is highly unlikely anything would be done now though, until after the full updated mining study is released as will be a key decision point to finalise those next steps.

Question is ‘who’ will fund them next steps to a feasibility study?

From treasury, shareholders or third party funding?

So that leads onto to the question of ‘urgency’ in which a schedule of works can be programmed.

Digging deeper it does appear to look more favourable toward the success of BOS sensor ability to be more effective, detecting the waste material for rejection in BR’s pyrite/pyrrhotite/chalcopyrite mineralisation. Although, Identifying the ‘mineralised’ rock for sorting can not be ruled out as is dependant, on if dissemination is not too finely interspersed. As fine grained minerals can be difficult for BOS to detect. BOS heavily relies on the variability in grade of the ore and waste together. It requires large batches of waste and low grade material across the width of the conveyor and of over a metre or so to be effective for rejection.

So if for example it’s accepted that the magnetic properties of the waste rock is what will make the tech amenable from sensors using magnetic resonance. (Chalcopyrite is far less magnetic than pyrite and pyrrhotite) The effectiveness of BOS is dependant on how the material for rejection is present in such a way that it can be separated effectively in the large bulk sorting batches, and how well the sensor can detect it with sufficient accuracy and precision (called repeatability).

Which leads to another advantage the particular ore type at BR may lend itself to. ‘Another’ pre-concentration technique that could also be incorporated is at the mining face itself, where grade control drilling can direct ‘selective blasting’. A pre-concentration technique that involves using less explosive energy in those higher waste sections to produce a courser fragmentation more suitable to be crushed down to a consistent sortable size, for that waste material to then be more effectively identified for rejection whereas normally a much higher blasting energy is used across all ore for a finer fragmentation as it all goes to the crusher and on for processing, unlike a BOS model that only sends the pre-concentrated ore for processing.

There is fair to good potential it seems with BR’s mineralogy. BOS though is not seen as a golden ticket by a long chalk, but it can be, under the right conditions!

Was checking in on the NSW Titles portal (TMS) for signs of any new drill hole permit applications. Can’t see any open cases but came across a site audit report that was done in may last year at BR when hole54 was being drilled.

Gives a bit of insight into how environmentally sensitive they are with their mining regulations in NSW

https://www.resourcesregulator.nsw.gov.au/sites/default/files/2023-03/audit-report-prospectore.pdf

Spot on guys, BOS would be the game changer, and see the most potential for BR’s more complex mineralised, low grade high tonnages.

Pre concentration is not new with its economic and environmental benefits, but modern BOS is still in early stages so there simply isn’t the raw data available to draw conclusions from. To determine if bulk ore sorting is the most suitable pre-concentration technique, the 4 drill core samples will have undergone lab trials on a chosen sensor. There are many types to choose from to be suitable, of which must be able to detect either the valuable metal, a proxy for a particular metal or a gangue mineral for rejection.

As BR mineralisation is in association pyrite/pyrrhotite, considered gangue or waste material. It’s metallic/magnetic properties could also be suitable for rejection with potentially more than one sensor type being used in an array on the sorter.

Guys or gals, the pre concentration study is a supporting study there is no certainty whatsoever it will be released separately to the market so to scaremonger and say if it’s not released it must be bad may certainly not be the case. In the interim report it stated “we have initiated a study to determine how effective ore pre-concentration could be at Bushranger and will then feed those results into the final open pit economic modelling.”

I’m not saying they won’t release it………..

A solid 10 of course.
Hit 7p off the back of 1 drill hole so with a decent economic assessment and clear direction forward with indication or statement that no further placings will land, solid income from Africa including the contribution from Kakuyu.
Why not? Particularly if there is increasing demand for copper through q3 and gold continues to be strong.

>>Or would others be happy with the ALL the Manica proceeds being spent on BR?

A wild guess I would anticipate 4-6m gbp minimum to further optimise and upgrade including the cost of PFS which can be rather expensive. It’s a big ask from Manica alone anyway, considering the ongoing production development plans and further small scale mining operations in the pipeline.

Maybe the 4m+ from warrants was for purpose. Have they expired now? Been two years!
Could see another fund raise instead as have missed out. Should not be seen as a negative but will be dependent on price of any placement.

Could be way off the mark without knowing for sure CB’s plans.

>>XTR's decision to mine only has to be based on economics that work for XTR

Hi LW that’s a point! CB had said previously regarding the 2mt , that the agreement does not state, that it needed to be joined up, it was just a number that was chosen. Didn’t he also say at some point that it doesn’t state any particular mining rate of tpa for the decision to mine. (Or did I dream that bit) So one would assume then that the relative vagueness of the agreement could mean that Xtract would only have to base the decision to mine on the ‘very minimum’ mining development requirement to be economically viable as you say, to trigger that AA option???

The priority has always been to trigger one or both AA options

Just by incorporating modern BOS into the grinding circuit will have big effect on NPV through smaller plant with associated lower Cap costs and the potential to reduce mining costs considerably by lowering cut off grade and producing higher head grades to the mill.

It will revolutionise the way mines are usually worked, where a ‘one size fits all’ approach with all ore being transferred from the mine face to either the primary crusher or stockpiled on the ROM pad by the plant, where it can be stored, or later be blended for continuity of grade.

With modern BOS technology, as it relies on grade variability to be most effective, the less it is hauled and handled the better. So incorporating the technology into a new mine, the primary crusher and sorter can be located as near to the mining face as possible, reducing the fuel costs associated with hauling all pay and non pay material to the plant. Waste material can be immediately diverted to be sold or used for construction of haul roads. With far less volume of waste and higher head grade, the energy intensive grinding mill can be smaller using less power and reducing water consumption.

The whole circuit can be designed around the technology which can be a game changer for the economics reducing mining costs.

Would question why the sale price would be at a premium to the share price for an ‘asset’ sale?

It may end up being coincidental as the share price would certainly rise leading up to and then with an ‘eventual’ feasibility study level showing a viable mine with additional JORC resource. It would then typically attract more wealthy individual and institutional investment.

With all shares retained after a ‘hypothetical’ sale, an adjustment would be made to reflect just the remaining assets. Is worth pointing out, there would certainly be a full trading halt leading up to or at the point of an offer/acceptance until after it’s conclusion. Share price volatility in that time would be mad!

Generally accepted an investment case is based on a billion shares being in issue. I expect and hope Colin can finish off where he has failed previously due to the economic climate and then market reaction to those failed targets, to drive the share price up to warrant price for that extra working capital to help pay toward developing assets that has clearly been factored into its planned growth strategy for the business. Without it, leaves a big hole in the treasury particularly if they had taken into account mining rates from Fairbride would be operating within expected levels

Apologies if my remark offended anyone. It was aimed at (although as just banter still) the doom crew that immediately jumped on the project must be uneconomic so they are trying to polish a turd with going down the pre-concentration route.

I’m happy with my 7.2p tranche, felt was good value at the time. But if anyone believes that without the 2mt in the bag statements the share price will still be around 7p, are delusional in light of the initial resulting fall out from Covid and the world plunging into an economic 5hit storm.

Just bloomin unlucky timing for the many that are sitting on paper losses including myself. I fully understand what I have bought into now and the potential that all the assets have. So I can see past that initial disappointment of what were unrealistic targets not being met.

It’s essentially more about the level of probability that BR will get bought out rather than how big it is. 2mt or not, it doesn’t really matter, for a disseminated low grade porphyry deposit it will still need a feasibility study for any major to take it on. That is my understanding from a geological perspective.

A 20% improvement in pre-concentrating is what is looking to be achievable ( CB’s comment at beginning of podcast with roasties. ) with Cb also setting the bar at 50% pre concentrate the doom crew will have a field day if it comes back too far away from those figures. The comparison from another big project he gave was what ‘can’ be achieved.

Will see but I hope cb is not shooting himself in the foot again

Hi LW soz I should have included ‘potential ’ to have the desired effect on model. I agree with you in principal but pre-concentration will give recovery rate after separation and it’s sortability.

But what will any of the results mean considering the first many heard of bulk ore sorting was when Colin announced it comparing to a similar projects 50% reduction in mill feed and a 87% recovery rate after separation. There are many advantages the technology can offer to the project. The full effectiveness of BOS I would guess would be better understood in hard numbers though as without its economic evaluation it may not mean much

That’s all I’m saying.

Any immediate urgency is totally out of the companies hands whilst Optimal conclude the updated conceptual study. This is key decision point for the next steps or direction that the project will take. The priority overall, will still be with reaching that AA option, but is unlikely there will be any progression until the outcome of the study. Considering it may well be that once the pre-concentration study is returned it will go straight to Optimal to conclude the conceptual study without initially releasing it to the market.
So I don’t think it would necessarily be because of it not having the desired effect on the economics.

They have already suggested there will be further drilling to improve on NPV, tonnage etc directed from the interim report. So whatever the outcome now, there will be some further re-jigging of the model anyway to hit the sweet spot.

I actually felt kwads ranting in this months episode was not a vociferous as usual, that normally smack of being a lot more insulting toward Colin and quite frankly slanderous at times. Didn’t mention though this time, using his various companies as vehicles to fund his extravagant lifestyle abroad and his passion for racehorses. But I think the racehorse he probably bought with kwads money turned out to be an old pit pony. Shame….looked really promising at first! Oh well, just put it out to graze with all the others and get another one, at some point one of them is likely to romp home.

Does that in some way sound familiar ;-)

Hi Dani don’t get me wrong I believe in this most recent JC article, his appraisal is prob the most accurate from previous given and mistake free. His, was not a comparison per-sae but more to give hope that M&A’s are starting to happen and with Bens reply that sums up and supports that perfectly.

‘I’, was comparing to add kudos to why a major would see BR as potentially a more desirable proposition.

“Hello possums”
RIP Barry Humphries (Dame Edna)
Once Australias most famous export!
Legend

Hi Ben good points you make.
One other thing that was apparent in Eva project feasibility study is that there are necessary agreement terms set out for conduct and compensation secured with the Kalkadoon people, native title and pastoral leaseholders. With other agreements for permissive access and also has numerous royalties applying to the project too.

Most of these can be quite normal but worth pointing out from Andmillsy previous research that there are no indigenous land rights issues over the BR tenement areas that can sometimes halt viable projects. These issues can sometimes have a profound effect on eventual project desirability as can be s big stumbling block. Another big tick for BR.

Interesting choice of a comparison that John cornford has made that this board have gone over before previously, in Harmony acquisition of the Eva copper project in Queensland.

Eva is made up from 7 separate small deposits in the current mine plan. Most deposits are IOCG with mineralisation being veined networks or breccias. Others are copper only stratabound type.

Total drilling in the 7 deposits over the last 35 years, totalled 1470 holes mostly RC for over 200k metres that fully defines the mineral reserves there with no apparent potential of increase from further resource extensions. Although it does have exploration potential from its 4000sqkm land package. Project economics offer an after tax NPV of $437m and 29% IRR

Again BR is a different proposition, yes it will require more work but if after optimisation that pre-concentration can offer and further targeted drilling to improve on what will hopefully be already decent economics and increasing the resource. This initial mine plan once showing all Capital outlay is paid back and can be profitable, will open up the projects large bulk lower grade tonnages to further exploit with only ongoing mining costs and extending LOM that can make porphyry deposits very desirable for a major to take on.

I don’t see it as a good or even fair comparison, with BR’s further economic potential yet to be realised, different deposit type and economics of scale that it brings, also with being at completely different stages in their evolution.

Eva is at full, early development stage whereas BR could be actively marketed as a starter project with that multi porphyry potential at the very least once the target of that AA option and it’s outcome is reached.