Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
POW sells KAV @0.8p to fund a highly speculative deep drill at Molopo, meanwhile KAV shares hitting 1.3p today, talk about destroying shareholder value. And just when you think POW will jettison the dross & focus, they open up new fronts.
POW geos will have a very good idea what the cores contain, PGE is a little more complicated because the grades are always lower so a whole rock sample is required. Sean has evidently not given any interviews as doesn't want to give false hope.
In terms of the share price; they've been exploring at Molopo for 50 years so nothing is factored into KAV's SP. Its not a disaster so only a 3% fall. The market wants/needs commercial discoveries from POW.
What's the minimum spend?
Understood they have a limited time and if no discovery is made within a time frame then a third of the licence gets handed back.
Other than Karakubis, KAV have made it clear that KSZ/Ditau/KCB (odds & sods) are no long priority, too much cover, lots of geological risk, size of Bots teams dramatically reduced over last year. Ironic because KAV was looking to combine the Bots assets into Kanye and float but ultimately the drill failures led to a dramatic change of strategy.
The funding position is interesting because there's over £8m of warrants expiring in the next year including c200m @3p expiring in Nov so would be very helpful if these get converted.
Re $40m in Purebond's account, I've watched Ben's interviews and there was a suggestion of debt financing rather than equity which would wipe out small PIs. My fear was another raise at 1p but I think 3-5p range could be on if KAV produce good results.
If there's a commercial discovery in Karakubis, then it will likely turn into a cluster & need significant funding to expand the resource/reserves. KAV has talked about selling the licences but investors will get much better terms creating reserves first.
Hillside, talked about a modular processing plant, easily $20-30m
Nara, really depends on what they find, an operation based on a 2m oz resource could cost $100m
It was going to need 2% Ni to be viable at depth & clearly they don't have anything close. Running assays for PGE would seem to be a last (desperate) throw of the dice. On the plus side perhaps POW can ditch the mediocre projects and concentrate on uranium.
The shallow results look good and should be cheap to extract.
I wonder if they’re disappointed between 200-400m? The deeper high conductance structure, pink in the diagrams hasn’t delivered.
Just an observation on BTs tweet, 1.9g/t at >200m might be ok if there's volume, not clear if bulk mining/open pit opportunity because grades above were quite poor except for 90m. This greenstone rock is 2-3bn years old and extremely tough pointing to underground mining.
The current investment case is:
1) Targeting 2,600,000 oz Nara
2) Nara tailings, small but could generate $5m of free cashflow, enough to either pay for the licence or drilling.
3) Hillside targeting 1,000,000 oz
4) Hillside 4th rated target, not bulk mining but a strong near surface intercept >200g/t over 34cm
5) Hillside assays on top 3 targets TBA
6) Hillside option exercise Mon or Tue
7) Leopard, basically a free spin of the dice
8) Fledgling mining operation
9) Karakubis drilling by end of May 5,000m including ENRG's top 3 targets
10) Karakubis has considerable scale if they find anything.
11) Cornerstone investor with $40m available
12) Over £8m of warrants come into play with positive news flow
13) CEO in-country, 2% equity + another 3% options
14) Pambili c10-15% stake
Min 2% because depths >800m but this is also a PGM play. I suspect they'll take a view via XRF results & then decide whether to assay (3 months). Needs to be pointed out previous drills albeit different targets have not got anywhere close to commercial grades but the geophys looked good going into this drill.
Re Ben: true he has got over excited in the past, Ditau has gone from priority to back burner.
But what I will say is you are now looking at KAV 2.0 which is very much Ben's creation whereas the original portfolio was put together by Michael Foster & in hindsight there was too much geological risk. Behind Ben is Peter Wynter Bee, Purebond, Steve Smith (Zimbabwe gold consultant) & Dave Catterall (KCB expert). KAV (& Ben) has matured , the reality is get rich quick schemes rarely work so KAV 2.0 is tightly focussed by these experts. There's been a series of RNS's, small steps but nonetheless showing progress on the ground. Nara & Karakubis both company makers are being drilled Q1/Q2 24. As a LTH things are looking up for KAV.
There is suppose to be some upside in the resource & gold has migrated over the last 60 years to lower parts of the tailings. Remains to be seen, but its a c$10m project over 3 years and probably throw off $5m of cash which pays for further drilling at Nara. KAV have a fledgling business KAV Mining with perhaps 3-4 projects on the go, none of them earth shattering but its about learning & creating cashflow before larger gold production at Hillside, Leopard & Nara which is a good 3 years away. I do wonder if Pambili NR (KAV c10% holding) gets rolled into KAV Mining as very similar operations.
From Telegram Hive:
"Dee, if you work on a shaft sinking cost of US$1,000 a meter, it will only cost us $100,000 to get a 2m x 2m shaft down to the ore zone.
If you work on the basis each level in a mine is roughly 30m to 40m we’re only talking about getting down to 4 Level to start mining
We then need to put a concrete collar and headgear on the shaft. Prospect 4 already has power and there is a small lake about 300m away
We still need to calculate the true width of the vein but the 29g/t grade is nearly an ounce a ton. That is exceptional
Prospect 4 sits about 10km north of Prospect 1, where our stamp mill processing plant is. That is easily in trucking distance
As you can see in the RNS today the gold in the high grade zone is visible, strongly suggesting it is free gold. We need to do further testing work on this but if this is correct it will mean the ore can be processed easily
We are very encouraged that the geology confirms the IP survey. This gives us a clear roadmap for testing this zone further with drilling and (more importantly) gives us confidence that we can test what we believe are 3 other shear zones in the close proximity. Artisanal work strongly suggests these are also gold bearing, offering potential for future expansion
Prospect 4 doesn’t look like it will be an open-pit opportunity but we never expected that. Instead it looks like a near surface, extremely high grade underground opportunity that we can hopefully bring into production for relatively little investment and very quickly
Having set Kavango Mining up, we’ve positioned ourselves to move swiftly on an opportunity like this if one presented itself, while pursuing exploration for the much larger, open pit style of mineralisation"
From Telegram, when asked about mining strategy this morning BT said:
"Our strategy will change on specific results. Ultimately we are looking for mineable deposits we can bring into production quickly
As you’ve correctly deduced this looks like a very high-grade, near surface opportunity, which is why we’ve highlighted KAV Mining
This is running at nearly an ounce a ton and sinking a shaft to it will be no problem
This is a massive step forward for KAV
The 3 untested shear zones are very exciting because they all seem to be being mined by artisanals (meaning they likely host gold at a good grade) and we seem to have picked them up accurately using the geophysics (the current drill results align perfectly with the IP result over the shear zone we tested)
Prospect 4 remains our 4th ranked target at Hillside, so this project is looking really strong for our 1Moz overall goal"
PJ & BT are best buddies from numerous businesses, so no surprise to hear an endorsement. Not sure if PJ is a direct shareholder in KAV but he hold a chunk of POW which has 60m warrants at c2p exp Jan 25. It could be a win-win with KAV getting £1.2m at 2p.
Legal: the new target is slightly odd because its been 500-2600koz for the last 3 months before the current drills started. I suspect what BT means is their confidence has improved particularly if they confirmed a 200m x 5000m zone. I think the new mapping is welcome although I'd have like to see an interview with a detailed explanation.