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pedro, I know the CRMC have to do commercial trials. I was querying the costs of doing more trials with the perlite customers for further expansion tests and whether this is wasted money if we're hoping CRMC by CS outright. 1Investor has pointed out that the value in going through this exercise is to show a position of strength to the CRMC.
That being said, selling raw perlite doesn't look like it is a position of strength really, given that after all the talk of sending samples to multiple customers only one actually wanted to test it. That is the more disappointing aspect of the recent RNS not the fact that they failed to crush it to the correct size.
1investor, yes I favour a sale as well. I am a little nervous that the signs are pointing towards a JV though. I do hope you are right and this just a case of keeping all the options open so we can't be lowballed by the CRMC.
Only one question that I want answered. Sale, JV or go it alone?
I think I'm moving in the direction of it being a JV now. If CS was going to be sold to a CRMC why go to the expense of trying to run more perlite trials?
Just been re-reading some RNSs to try and guess some timescales.
I don’t think we’ll hear about Pozzolan results until March. The mining of the samples only started Mid December. Taking into account Christmas holidays the need to proceed the samples etc it will be mid to late January before the pozzolan was mixed and used in a commercial project. Could even be later than that.
However this caught my eye which I didn’t process before. . “This will take our natural pozzolan off the bench and into some real-life commercial construction projects and we look forward to continuing the collaboration now underway."
Continuing the collaboration now underway. Is that a hint that it’s more likely to be a JV of some sort rather than a buyout?
Safe, isn't a JV likely to lead to a slower increase in sp though? There could be a small upfront payment but it will then take time for mining to get up and running and to turn a profit. What kind of cash flow will it lead to and will that cash be used to fund director salaries and more explorations or could we see a dividend payment?
Surely a full sale of CS would see a quicker rise in the SP so the ones that want to can take their profits and run.
Either way, I really hope that PC thinks of us long term suffering shareholders and we get rewarded for our loyalty and patience.
Great post Dubliner. So your reading of the situation is that a JV is the most likely outcome rather than a complete sale of CS?
I'd been leaning towards full sale because of the sudden increased activity on the precious metal projects. Assuming that PC won't need to be involved with CS because he'll be handing over the keys. I guess this could be the same outcome with a JV if the JV partner takes over the day to day running of the mine.
It appears that the consensus on share price is anywhere from 1p-3p. Do you have a view as to what will provide the greatest shareholder value, JV, or full sale? My thoughts are full sale provides greater short-term value but JV could provide greater long-term value due to cash flow and hopefully allows the development of the other projects without coming back to the market for funds.
It was tottyman. 13th Jan
Sundance Gold Project, Nevada, USA
The Sundance Gold Project is a new project for the Company located approximately 90 miles southeast of Reno, Nevada. Access to the project is excellent via awell-maintained County road.
The project is located in the central portion of the Walker Lane Mineral Belt, a major northwest-trending structural zone that is host to numerous productive epithermal gold and silver deposits, and it is in the same area as the past producing Denton-Rawhide Mine (1.8 million ounces gold and 15.6 million ounces of silver production) and the currently producing Isabella Pearl Mine.
The Company has staked nine mining claims within an extensive regional alteration zone that includes the Isabella Pearl to the southeast. The area is being targeted following the Company's discovery of anomalous gold in surface samples containing up to 0.4 grammes/tonne gold in clay altered and quartz veined volcanic rocks. The Company has recently completed an initial soil sampling programme with 124 soil samples collected at 20m intervals on seven lines spaced between 50 and 100m apart centered on this area of interest .
Anomalous gold-in-soil values have were returned on most sample lines with values up to 168 ppb gold and a 60m width >100 ppb gold on one particular sample traverse. Whilst this particular gold-anomalous area is located above bedrock, the project area is laced with alluvial channels where soil samples are not likely to be representative of the underlying bedrock and so there is no coherent anomaly pattern.
However, the Company considers that the anomalous gold values at surface may represent the halo to more significant mineralisation as is the case at Isabella Pearl where drilling earlier in 2020 returned intersections of 26m of 18 g/t gold and 84m of 8 g/t gold below lower grade mineralisation at surface.
The Company is planning a mapping and trenching programme to follow up its anomalous gold results.
Not really. Plenty of times with SRES before there's been suggestions that there could have been a leak due to a sudden tranche of decent buys but they've never transpired to be true.
Just clutching at straws really, hope that when we get some good news we actually see a rise that reflects the potential of the company. My concern at the moment is that even with good news they're may not be enough buying demand to really push the share price. SRES seems to be the ugly duckling compared to alot of explorers/miners, hence why this BB is so quiet.
“Waste of time and effort. Shows just how incompetent he really is.”
What an earth are you going on about. These are the annual results that Sres is obligated to rns under aim rule 19. They are released this time of year every year apart from the last when they were delayed until February.
We will get further rns regarding off take agreements once agreements have been signed. It doesn’t matter if it’s this side of Xmas or early 2021. I believe agreements will come and when they do the share price will re-rate.
They're being tested as perlite. Sent to 5 customers for expansion testing.
" Approx. 20-30 tons of coarse horticultural grade raw perlite to be split between five different customers across the USA for expansion testing."
Do we think that this is now pointing towards Sres getting the mine up and running themselves rather than selling out to a cement company? I believe it’s thought that longer term we’ll see greater value as shareholders if they go into production?
The only odd thing about the rns is that it doesn’t mention supplying customers in relation to fly ash replacement. I wonder if it’s in-house testing of the pozzolan and concrete pour or whether it’s supplying a customer but that info is confidential.
Hopefully see a rise in the short term and if the gold and silver deliver good results the herd will finally arrive pushing this up to where we all believe it can be.
Mineralex. I can't see anything that could be perceived as being wrong in SGD’s statement.
SGD has stated that prior to achieving full permit status, SRES were restricted to only disturbing 5 acres of land. So all of their previous product testing and customers samples had to come from this limited 5 acre area.
His statement was in response to Sourtrader who can’t understand why agreements haven’t been signed already.
I think that it’s everyone’s assumption that potential customers now want to have samples from other areas within the 264.9 acres site so that they can be assured of a continuous and consistent quality of supply before signing on the dotted line.
Given that you have contacts in Nevada, do you have any knowledge as to whether the further samples and been mined and supplied to customers?