Member Info for KeithOz

If anyone is in doubt about the potential of the KAV assets in the KCB, have a read of this:

https://www.proactiveinvestors.com.au/companies/news/959531/sandfire-resources-hits--stand-out--intersection-of-45-metres-at-22-copper-and-426-gt-silver-from-439-metres-in-botswana-959531.html

It's quite along article, here's some tasters:

"Sandfire Resources Ltd has hit a whopping 45 metres at 2.2% copper and 42.6 g/t silver from 439 metres in step-out drilling at the A4 Dome, west of the Motheo Copper Mine in Botswana, Africa. This intersection, which also included 2.1 metres at 8.25% copper was returned 1.2 kilometres southwest of the recently upgraded A4 mineral resource." and...

"“It also confirms the potential to discover high-grade vein-hosted mineralisation in other domes within the Motheo Hub, notably the A1 Dome, 25 kilometres to the northeast. In the meantime, our regional exploration effort is also gathering momentum with three rigs targeting extensions to known mineralisation in the T4-T23 area, approximately 80 kilometres west of the Motheo Hub, and systematically working through other targets such as T5, T14 and T45.”

"Sandfire has a clear pathway through the A4 satellite deposits and is beginning to demonstrate the huge potential for further step-changes in its growth trajectory of this largely untapped region."

Everyone feeling happier now?

Dear PistaBully - we all make okayshnul spiling misteax and grimaticul eras. Sum ov us don't hav English as ower furst langwich. Chillax, wot u shud reely be intrstd in is the CONTENT, which is invaluable, and for which I humbly thank these excellent contributors.

Last week, there were complaints of stock overhang for PRD - quite likely, I was able to pick up 400K instantaneously, well within the spread. Today, with a higher price, it has taken several hours to fulfil an order of 200K, with a limit at the displayed offer price. This was split down to 2 X 100K. Being an optimist, I see poor availability of stock for purchase as a good sign.

OK, I see why everybody is confused. Either yesterday's POW RNS is wrong, or the Sept 2020 one is wrong. I suspect it is yesterdays that has the wrong expiry date, since you would not have an arrangement where someone would pay extra for no time extension or other benefit. Maybe someone who is a shareholder in both companies can contact POW and get them to sort it out, and maybe ask KAV why they have not released an RNS as well, which they should have done in these circumstances. Sorry, I can't be bothered, it's past my bedtime, nyt nyt.

2nd line from bottom should be 2021, not 202. -- OK, so I can't type!

Thank you for your concerns that my English comprehension may be poor because I live in Australia, but I did receive an above average education in the UK, including English comprehension and Maths. This is what the POW Sept 20 2020 RNS says:
"...5 million Power Metal warrants at 2.0p with a two year life to expiry and in the event of early exercise of 2.0p warrants, replacement warrants at 5.0p;"
ie 2years from Sep 2020

BUT...

"Should Kavango exercise the Acquisition Warrants within 12 months of issue, they will receive replacement warrants to subscribe for Power Metal new Ordinary Shares at a price of 5.0p each with a two year life to expiry from admission of the Acquisition Shares (the "Super Warrants")."
i.e. 2 years from Sept 202.
In both Australia & the UK 1 + 2 = 3.

Warrant term WAS one year, now extended by a further year - read the POW RNS Sept 20 2020.

FKC - sorry to keep replying :-). You said "to say you won’t release anything unless ‘definitive’ is really quite poor show and out of line with market practice. It is normal and in fact required to release more detail." That's not quite correct. It's equally completely standard practice only to release results at the end of a complete drilling campaign, not hole-by-hole, particularly (as in this case) where there are commercial sensitivities, or also (again as in this case) where early release of a partial data set could be construed as misleading the market. "Tight holes" is an amusing definition frequently used in O & G exploration, and refers to the bores, not the drillers.

FKC: You said "A strong RNS now may lift the share price by say 100% which would take it only just above the pre-drill price. Conversely a poor RNS now could easily half the share price." Half the share price would give you the KCB & Ditau JV, plus KCB standalones, at a super bargain price. If a strong RNS (I assume you mean on the KSZ) only doubles the share price then you have a mega-super-ultra bargain price on the whole lot. I've put my money where my mouth is.

Three possibilities ahead of the Sept 21st conversion date:
1. Do nothing, lose any rights to Super Warrants, with give right to buy POW shares @ 5p in 2 years time.
2. Buy POW shares in the market at the same price as the warrants you are entitled to.
3. Exercise warrants, have future option to POW shares at 5p in 2 years time, plus contribute $100K to POW that they then use to pay back to KAV as part of their 50% contribution to KCB exploration.

I suspect (3) was a gentlemens' agreement between PJ & BT - both companies have a part reliance on warrant banks for funding flow.

Only 2 problems that I can see:
1. We don't have any boreholes to use this technique
2. If we drilled lots of shallow boreholes as is (possibly/maybe/potentially/being considered) we would (possibly/maybe/potentially) find that it doesn't work with shallow holes, since the receiver would have to be too close to the top of the bore, so you would only get a reading from a very small area, for a very small depth.

There are two possibilities relating to a lack of detailed news post A2-1:
1. As you suggest, the hole is a dud.
2. KAV are holding their cards very close to their chests, and waiting until they have all the data, including assays, from all six boreholes.
I believe (2) to be more likely. If you come up with a dud, are you really likely to commit to a further 3 holes in addition to the previously announced 2? Especially as this would delay your lower-risk project on the KCB? If as a sub-£20M company you announced massive sulphide details on one hole, what are the chances you would get a quick takeover offer? If you are entering into negotiations with either a hostile bidder or a potential partner, would you prefer to hold 1 ace or 6? (Yes I know how many aces in a pack of cards).

I have not heard that Hell has frozen over, in fact climate change makes that increasingly unlikely. Therefore I am still expecting a deal with Anglo-American to be announced early next year, once they have received all the data from the current KSZ campaign. Certainly not with anyone smaller, particularly not with an under-financed, under-resourced and overstretched minnow such as POW. Of course, others may have different views.

Seems straightforward and sensible to me. KAV wants to retain its exposure to POW for an additional 12 months - through to September 2023. KAV has until the 20th of this month to subscribe for the revised Super Warrants, which it has now done. No need for conspiracy theories.

"Should Kavango exercise the Acquisition Warrants within 12 months of issue, they will receive replacement warrants to subscribe for Power Metal new Ordinary Shares at a price of 5.0p each with a two year life to expiry from admission of the Acquisition Shares (the "Super Warrants")."

from POW RNS dated 21st Sept 2020.

Exactly, and this is what I was expecting from KAV, as was the market. Silence is not always golden - as can be seen from the share price following the non-announcement.

It's about traps AND reservoirs AND commerciality. Thick sandstones with 15-20% porosity make up most of the Karoo formations. We now know that these are overlain by 130m of siltstone. Thus we have the parent of all reservoirs with the parent of all traps, but at a depth of 1200m. Quite a way down to drill, but the gas will also be at a higher pressure, so more per given volume of reservoir. One hole here (in the right place identified by 3D seismic, drilled with the right rig) will provide a commercial source of He.
On the other hand, the near-surface Lake Bed Formation has only thin potential reservoirs, of limited areal extent - it was only 20m between Tai-1 & -2, but the sandstone had already pinched out into clay. How many of these shallow mini-reservoirs are you going to find? I have no idea what "geophysical techniques" will reliably locate such structures, perhaps the local medicine man with a forked hazel twig? How are you going to link all these together to channel the He/N mix to a concentrator that costs $50M? I just don't get this concept of shallow reservoirs ever being of commercial significance.
Better to spend the cash on 3D seismic of the leads previously identified and drill them with adequate kit. Three different trap types were originally going to be investigated - results from these really WOULD de-risk the whole Rukwa basin, as well as greatly increasing the chances of finding a real live commercial He reservoir.
I am concerned that the real objective of jabbing around at random with a water drill is in the hope of cheaply finding some free gas so that a 'discovery' can be declared. What we need is a discovery that leads smoothly to commerciality.
Just my highly opinionated view, of course - DM may have some data to back up his ideas, if so it would be nice to see it. By RNS, not a half-baked Twitter release. There, I will go and lie down now :-)

Thanks Noob, that works. Problem is , I've now realised this is an interview from last week, which has just appeared on HE1 twitter as if it is a new interview. So, nothing new at all, yet more poor communications.

Not able to access this without signing up, so I left this on HE1 Twitter:

"David - Since this conversation can only be accessed by Vox Markets members, many of your shareholders are unable to hear what you have to say. As I am sure you are aware, there are many disgruntled people who want to know what is actually going on, and why. Please use RNS."

ndn - it wasn't you I was sighing about :-)

omg people, if you're going to invest in a company, at least read up on some of the basics.