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"Colin Bird, Executive Chairman said: "We are very pleased with the outcome of the first down-plunge hole at Bushranger. We now intend to complete a 4 to 6-hole follow-up drill programme across the deposit to obtain width and grade information. This information will then be utilised to restate the size and grade of the resource.""
Ref RNS 22nd Jan: https://www.lse.co.uk/rns/XTR/bushranger-project-drilling-programme-5h0ocibyavk3gip.html
N.B Not sure if the plan has changed since, happy to be corrected if anyone else is scanning through the more recent RNS's?
Guess it serves me right for not referencing everything in my 'summary' in the first place...
Anywho, I've corrected myself in the subsequent posts / provided the links for the bits I got wrong with my first post if anyone's interested in our income streams :)
This is the 50-50% bit:
"Exploration
The Company and MMP have agreed to incorporate a gold mining exploration special purpose vehicle, on a 50:50 owned basis, and with a monthly budget to be agreed by the parties from time to time. Participation in exploration projects will be decided on a case by case basis. The costs of exploration shall be divided on a case by case basis. Each party may submit a project exploration plan to the other party for review. The reviewing party may elect to contribute up to 50 per cent. of the costs of exploration on that project and will be awarded participation in the project on a pro rata basis with its share of the costs.
MMP and Xtract have further agreed that, if with increased knowledge of the Manica Concession it is deemed appropriate to undertake a major drilling campaign to identify and delineate a larger mineral resource then currently known in the Permitted Area, the parties will agree to invest on a 50:50 basis to identify a larger potential gold mining resource. The parties will form a new SPV for this activity and it will be separately managed with both parties having an equal interest. A larger mineral resource is defined as all resources in the Permitted Area in excess of those currently known, with a minimum threshold being 2,500,000 ounces."
Ref: https://www.lse.co.uk/rns/XTR/manica-hard-rock-collaboration-agreement-ghoo8qdt7s68ji6.html
Massive apologies, got mixed up summarising my notes, please see the below:
" Guy Fawkes Agreement provides for Explorator to receive 20% of gold production (after settlement by Explorator of the Mining Production Tax)"
Ref: https://www.lse.co.uk/rns/XTR/manica-gold-hard-rock-mining-contractor-agreement-d96j192dh5meval.html
"Boa Esperanza Agreement provides for Explorator to receive 20% of gold production (after settlement by Explorator of the Mining Production Tax)"
Ref: https://www.lse.co.uk/rns/XTR/additional-manica-gold-hard-rock-mining-agreement-7klu7v7cjdzvbm5.html
Just a little reminder of what's in the pipeline:
Manica Fairbride hard rock: “Xtract will receive between 20% and 23% (dependent on prevailing gold price) of the hard rock after tax operating cash flow”
N.b. production will be circa 30k oz pa
Also has a buy out clause: “· An amount equal to 80% of the net present value using a discount rate of 15%; or
· US$20 million”
Ref: https://www.lse.co.uk/rns/XTR/manica-hard-rock-collaboration-agreement-ghoo8qdt7s68ji6.html
On top of that we have:
- Manica auxiliary hard rock production(Guy Fawkes/Boa/Dots luck et al) being shared 50%-50%:
“Excellent gold intercepts at Dot’s Luck include:
- 11m at 6.53g/T Au including 6m at 10.41g/T (DLD18)
-13m at 3.88g/T Au including 2m at 14.26g/T (DLD19)
Excellent gold intercepts at Guy Fawkes include:
-2m at 11.15g/T Au including 1m at 21.96g/T (GFR03)
-3m at 2.35g/T (GFR04)”
Reference: https://www.asx.com.au/asxpdf/20131127/pdf/42l5b7g6bfykxh.pdf
- Manica Alluvials (earnings from multiple contractors)
- Zambian copper assets (exploration and production)
Ref: https://xtractresources.com/projects-operations/
In fairness, what more is there to say?
We can guess all we like but proof of concept will be in the assays.
One might argue that the information is already out there to some extent, you've just got to know where to look and be good at jigsaws..
Good bit of promo: https://www.thearmchairtrader.com/xtract-resources-share-price-08032021/
Re grades: previous drill campaigns showed they were decent ( https://www.rns-pdf.londonstockexchange.com/rns/7650I_1-2020-12-15.pdf ), grades were theorised to increase with depth, which they did... it's deeper than we imagined and the XRF's initial indications are that we've got some decent grade material based on the scale of mineralised intersect:
o 40m @ 0.3% Cu from 110m using a 0.2% Cu cut-off
o 148m @ 0.3% Cu from 171m using a 0.2% Cu cut-off
§ Including 30m @ 0.6% Cu from 235m using a 0.3% Cu cut-off
o 287m @ 0.3% Cu from 474m using a 0.2% Cu cut-off
§ Including: 30m @ 0.4% Cu from 517m using a 0.3% Cu cut-off
§ and: 23m @ 0.5% Cu from 628m using a 0.3% Cu cut-off
§ and: 39m @ 0.5% Cu from 722m using a 0.3% Cu cut-off
Ref: https://www.lse.co.uk/rns/XTR/geochemical-update-on-bushranger-project-urg5n9bt5k8o95d.html
Worth noting that gold hasn't even been determined yet as that will be assessed via assays, again though, some notable intersects regarding gold grades can be seen through previous drill ( https://www.rns-pdf.londonstockexchange.com/rns/7650I_1-2020-12-15.pdf ):
BRD001: 159m @ 0.4% Cu & 0.21g/t Au from 147m including 16m @ 0.5% Cu & 0.73g/t Au
BRD009: 169m @0.4% Cu & 0.09g/t Au from 317m including 68m @ 0.5% Cu & 0.15g/t Au from 348m
Just a quick repost summary/link of the interview for anyone who missed it last week, definitely worth a listen if you haven't already:
@4.30 mins: “lets just simply Imagine a cube, 1000x1000x1000, turn that to cubic meters and multiply by the specific gravity of around about 2.7 - that’s a whopping great piece of rock, so I think we’re past ‘is it big / isn’t it big’….”
@5.45 “These things aren’t cubes, these things are generally cylindrical, I see on the board they’re talking about multi porphorys, I can’t help but agree with them - we’ve seen several different types of apparent cores, so if you get different types of apparent cores by definition you’re probably talking about multi porphyry systems, so, Zac, it’s certainly big…”
@ 6.50 mins "Interestingly this is looking big enough to be able to fly on copper, so you can imagine, if the gold, when, lets all say when (chuckles) , when we prove that the gold is present in sufficient quantities then that's going to enhance..."
@ 8.28 mins “we’ve got a nice portfolio.. good lord when that Manica Project comes in it’s going to be producing nice earnings, as is the the associated alluvials and smaller hard rock situations, as is Zambia with its’ copper projects, so it is a kind of conglomerate.
@ 9.00 “(Laughs at Zac) I wouldn’t say there’s 4p for bushranger, you’ve only got to go across the road(?) and look at Boda who’s our next door neighbour - and our geologists are convinced we’ve got a better subject than them - they’ve got a market cap of 400m (corrects himself) 500m Australian dollars.”
@9.35 re bushranger “Recognise that it would transform any company, in Toronto, In London, in Australia - What we’re talking about here is not just another discovery, we’re talking when we talk bushranger, we’re talking about, like I say, this is the Melbourne cup, and we’ve got a front runner Zac.”
Ref: https://www.share-talk.com/colin-bird-executive-chairman-xtract-resources-plc-xtr-l-interview-10/#gs.uzeudv
Sumo - worth noting the following exert(s) from the RNS:
"For information but not as a forecast of future production at the Star Zinc Project on 14 November 2018 the Company announced that following a second phase of drilling the tonnage target was between 600,000 to 900,000 tonnes with an estimated average grade of 10-12% zinc at above 3% cut off grade."
"Siege have indicated their intention to commence mining imminently, producing in the range of 6,000 to 15,000 tons a month of saleable ore but it is recognised the initial production may be lower."
Ref: https://www.lse.co.uk/rns/GLR/sale-of-star-zinc-project-strategy-update-xpz0siivm8sdl4z.html
Just to provide some rough calcs to demonstrate likely longevity of the monthly income:
600,000 T at a rate of 6,000Tpcm = 100 months (8.3 years)
600,000 T at a rate of 15,000Tpcm = 40 months (3.3 years)
900,000 T at a rate of 6,000Tpcm = 150 months (12.5 years)
900,000 T at a rate of 15,000Tpcm = 60 months (5 years)
I'd suggest a PE of 10 is a over the top for this project but I'm in agreement with the sentiment of your post, the monthly income will go a long way to supporting the current Mcap. Some of the other project could blow it out of the water imo.
3cardbrag, do you not understand the statement: "...topography of which does not suit itself to urbanisation."?
Stating "Let's hope the Zambians don't build a load of housing, schooling and amenities around it then or we can also kiss that goodbye" after quoting the exert I originally quoted leads me to believe you don't.
If it's not suitable for urbanisation then people aren't going to build there... and frankly, I can't believe I'm having to explain that.
Ella10, in fairness, the comms from the company have been good recently, within the framework of what CB can legally say at any given time I feel he's done a good job of keeping us in the loop re asset progression.
I can't speak for how some of the more long termers feel about communication over the years but I'd say it's been really good of late with multiple RNS's/interviews, certainly since you the date you created your account on LSE in mid November 2020.