Member Info for ICB888

The market likes the RNS this morning. CNR Up 5.3% on volume of 177000. You would expect this to start moving north more quickly as the release of the FS gets ever closer with a very positive preview of a key part of the FS in this morning’s RNS.

The news keeps coming with the second La India RNS in less than 2 weeks. This is an excellent report showing how much work has been involved in updating the key document for the Feasibility Study which can only be days away now. Good to see the increase at Cacao with Mestiza to follow soon. There is more gold everywhere to be detailed by further work as the project progresses. This all supports the long held belief that this will become a 5 million oz + project.

Conducted additional metallurgical studies through Bureau Veritas laboratories in Vancouver BC as confirmation of earlier tests results and to extend recovery estimates into the lower grade ranges that are now economical at present gold prices.
Additional work has continued into the 2nd half of 2022 to rationalize the infrastructure and plant area to reduce the required quantity of earthmoving, and delay expenditures into production years when such changes do not impact initial throughput and recovery ratings.“

The SEDAR document required because of the listing in Canada contains a few extra pieces of information:
“ Achievement of plans and milestones in 2022
The principal activities of the Company in the six months ended June 30, 2022 have been:
Technical efforts for the 1st half of 2022 have focused heavily on compiling the requisite data, studies and designs in support of the Feasibility Study on La India Open Pit.
Key activities for the first 6 months were:
• Review of La India Project’s regional discovery potential with twenty-two exploration targets identified.
• Completion of the La India deposit resource model, resulting in an upcoming revision of the Mineral Resource Estimate and Mineral Reserve Estimate (MRE), incorporating the newest drilling results, new structural, weathering, mineralogical and lithological interpretations, as well as updated depletion models of artisanal mining impacts
• Review of mining methods employed for selective open pit mining, and incorporation of the selective mining units to a diluted mining model suitable for mine planning
• Finalization of the geotechnical model reflecting drilling and testwork during 2021, based upon new oriented core and televiewer logging.
• Multiple scenarios on plant throughput and recovery from 52 micron to 100 micron grind size, and potential processing plant modifications
• Completion and costing of processing and support infrastructure optimized to take advantage of the compete new Semi-autogenous (SAG) mill package, including:
o An updated design from Hanlon / GRES engineering to process up to 886,000 tpd through the plant with an upgraded 3.7 MW motor, with 48 hours of retention capacity for the Carbon-in-Pulp (CIP) plant
o The tailings storage facility costing for the initial construction lift
o Surface water management structures, including diversion channels, attenuation
structures and stormwater pumping
o Surface infrastructure for Administration, Warehouses, Plant and mine support, and a revised supervisor man-camp.
o Access roads for the mine, waste dumps, stockpiles, and construction sites

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o Commitments from the local energy provider for power supply and specifications for connection to the national grid
• Updated contractor quotes for mining, reagents and consumables, explosives, and contractor- provided facilities
• Site staff generated cost estimates for the owner’s obligations and additional staffing requirements for EPCM controls on the owner’s side.
• Conducted third party reviews of critical FS Study inputs, for Geotechnical analysis for pit angles and Metallurgy
• Updated and revised mine plans to provide stormwater management through the pit area, with optimized stockpiling strategies, ultimate pit designs and phase plans, in conformance with the recommendations from the SRK geotechnical analysis
•

There is a lot of detail about the progress of the Definitive Feasability study and this is the conclusion in Mark’s letter to shareholders:
“ To conclude, Condor made significant advances during the 6 month period de-risking the fully permitted La India Project to a near construction ready status and completing all technical studies for a Feasibility Study. 99.6% of the land for the key areas has been purchased and 14 hectares of land have been cleared in the location of the processing plant facility. Drill results from infill drilling on Mestiza open pit of 6.3 m true width at 6.84 g/t gold from 31.45 m and 3.6 m true width at 29.1 g/t gold are both reassuring of the high grade nature of the deposit and continuity of grade. The wide zones of mineralisation within the La India open pit, near surface of 34.1 m true width at 2.56 g/t gold amalgamated from 2.80 m drill depth are confirmatory in nature. The Company is on track with its strategic objective of constructing and operating a processing plant producing circa 100,000 oz gold per annum, then materially expanding the production capacity while demonstrating a 5M oz Gold District.”

If you think any Conservative PM is going to pay any attention to Gordon Brown in the Guardian you are deluded and are very far removed from reality. Gordon Brown was a disastrous Chancellor and PM. Selling our gold reserves at a low and destroying Equitable Life are just a couple of his many acts of incompetence. He also worked alongside probably our worst PM of all time Tony Blair (don’t get me started!) Your deramping gets ever more tedious.

The 1p level is clearly a major psychological point for AEX. The steady growth from 0.75 to just short of 1p has been very healthy and spike free. A few days of consolidation just below 1p is very healthy and to be expected. The push through 1p is not far away and will hopefully occur prior to the first seismic, but if not that news will be the catalyst. 1p+ by the end of August would seem highly likely as we have seen 0.99 paid this week.

“ On this basis, the £375mn market capitalisation company is priced on around five times cash profit and eight times post-tax earnings for the next 12 months, a rating that supports my revised 22p target price. So, having initiated coverage on the shares at 15.8p (Alpha Research: ‘A copper bottomed investment for the mining bull market’, 26 April 2021) and repeated that advice at the same price (‘Copper bottomed investment, 8 February 2022), I maintain a positive stance. Buy.”

Comprehensive review of the company by Simon Thompson who reconfirms his Buy recommendation with a 22p target.

Currently Up 5% at 20p on volume of 2 million. Let’s see if we can hold that as it would be good to stop moving sideways as we have done for several days now.

Gold has just moved above 1800 for the third time today.

Gold just spiked to 1807 before dropping back to just below 1800. A rising gold price is a good backdrop for the release of the Feasibility Study.

I am sure Simon Thompson of IC will comment on these results soon. He last commented a year ago in August 2021 with a Strong Buy recommendation and a target price of 30p. I look forward to his comments .

Haggis,
I agree with your views on seismic releases and as I said previously I think this will be good for providing regular news flow ahead of the drill ideally with increasing resources each time.

There are some very impatient people on this bb. Chariot is progressing well and it is only 21 days since the last RNS confirming a material increase in the gas resource. That needed to be in place to enable the next steps so news of funding, farm in or bid could land any day now .

We know that they have had the first seismic before the 1st August so probably in July which will enable them to confirm the drill site by the end of August. On 1st August they were continuing field acquisition to complete the full seismic programme. So what we aren’t certain of is whether the full seismic will be available this month or if we will just get a taster when they site the drill with the full seismic coming slightly later. The 2 stage approach may be better to keep the news flowing because the market does like regular news flow.

Mark has said the land is not an issue many times. However there have been several deramping traders on the bb’s who continually try to make an issue out of it and make personal attacks on Mark Child. A poster on another bb has posted a full explanation from Mark in May 2022:
“ Land – we have suspended negotiations to buy the remaining 0.4% of the land until the Project finance has been completed or at least the debt finance is in place. The owner wants to sell, we have his price. There is a house or dwelling involved. We don’t see the need for resettlement in the immediate future. it can wait.
Land – it really is a non issue. 3 years ago Condor owned less than 20% of the land. We now own 99.6%. The remaining land won’t block the project
Land – there is probably someone on the bullet boards trying to make it seem like land is an issue. My suspicion is that it is part of an indirect negotiation
Land – when Condor buys land, over 1, 000 hectares so far, physical possession is taken, a security guard is placed on the property, the property is fenced and painted yellow/gold. This serves as a constant reminder that Condor owns the land, will create jobs and the project proceeds
Land – the Government can issue a compulsory purchase order for the remaining 0.4% as the project is of strategic national importance. Just like the UK. If issued, the current owner will get a 10th of what Condor has offered.'”

Seingred seems unable to understand the present situation, actually he does it deliberately to spin his deramping tales.
I will repeat what I said this morning.
He is trying to tell you that Condor is preparing a DFS which is a stage down from a BFS. The truth is Condor have used neither of those terms and have called it a Feasibility Study. What matters is what is in the FS and what it is intended to achieve. This is what the CEO says in the last RNS:
“ Very comprehensive metallurgical test-work has been conducted to the highest standards as a Feasibility Study level is the technical document to which project finance is provided to the Project”
So it should be clear to all that the FS will be used by the Financiers (or farm in partners or bidders) to provide finance to the project.
If the likes of Seingred need to attach a label to this FS then it would have to be Bankable Feasibility Study.
If anything is laughable it’s Seingred’s desperate attempts at deramping in the small period before the FS is released. It is quite likely that financing news will be released at the same time as the FS as they have been working on the financing for months along side the FS.

All the studies have been done by experts and no problems with an aquifer have ever been raised. Chowdhury is making this up to try and save his own skin. The mob will be after Hasina and Chowdhury when the realise they are to blame for failing to approve Phulbari, which would now be producing coal. They should both be removed from office and held to account.

If Hasina is going to change her mind and approve Phulbari there has never been a better time than now. If the doesn’t shr is being economically and politically negligent. There is an economic and political imperative to address energy security. The rest of the world is reacting and coal is playing an important role. Why import when you can mine your own high grade, low polluting coal.