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And on the subject of that box, which quod erat demonstrandum is not empty… A comment on the arbitration issue with the Georgia State agency & the GOGC. Here, my understanding is that the issue is not so much about the contents of the box, which is now well understood by the relevant stakeholders, but about the pace and nature of the manifestation event; the exploitation timescales and how the PSC should be interpreted regarding certain territories in the block, for example, what Frontera refer to as the Basin Edge Play. So, the Miocene horizons at Basin edge (above the gnarly Cretaceous) are now extremely relevant by extrapolation from the staggering technical success at the Miocene Taribani zones. Read the 2005 NSA report on the Sarmatian horizons (S3) at the Basin Edge areas and feed that with the Taribani work into the declaration objectives under Article 9.4(c) of the PSC:
1) There’s not a lot of seismics for Basin Edge
2) We now see a lot of oil in play in the Sarmatian
3) There’s not much time with the Study period.
4) How does that box get opened?

And now understand: There are many juicy boxes in Block 12!

And finally regarding the current pressure on the shareprice of FRR shares (with reverent sunlight on folks buying shares in London who have carried this work to here), as I understand it, certain commitments with regard to vendor stock are being processed, and other pre-agreed sellers are working through their deals – honestly I don’t understand the details. Also, we know that all markets have the derivatives traders like the short selling guys who play their part and spin their story. I have to say; there is a lot of BS in some of the online news websites in the UK and a lot of BS gets posted on Twitter too.
This pressure wont last forever - they’ll take their turns and we’ll get shot of them.
It sounds trite to say a little bit of patience now, but go along next week, hear what Zaza has to say at the meeting in London and try once again to get your heads around 18 billion barrels oil and 202 tcf natural gas.

Well, things are progressing nicely here.

Firstly, just lets recap on the last two and a half years of technical progress in Block 12. This is a petroleum engineering story at its best – we finally figured out how to drill clean holes in this tricky geology and we got zones to flow that have baffled drillers for decades. The Soviets fooled around for so many years washing out the sands and spitting cement; this really is a classic story of how one of the worlds great under-developed regional plays gets conquered. It’s taken years for Frontera to get to this place, but then it took years to realize that the Permian in West Texas could do what it’s doing now – read, understand and see the similar story.

OK, on a very basic evidential level:
Q: Is the oil there in the Block 12 license area?
A: NSA have presented cautious oil and gas in-place estimates based on data they have audited from the Frontera drills and data they have generated themselves. We also have some Ryder Scott work. These data estimates are staggering and no one can deny this is not absolutely world class land with several great plays – based on the petroleum consultants data.

Q: Can we drill holes, work the rock and sustain a major field set of commercial flows?
A: Frontera have presented an exploitation & development methodology for a super-multi-well strategy which has excited certain parties to take an interest in Block 12 over recent years, from MND Group / VTB, through to the recently announced majors – these are the ones the market knows about…

OK, I totally agree that retail stockholders are lacking straightforward data to reassure the exploitation and development story, but if you step back (or talk to the right people) it’s now clear to see that the Block 12 geology has been capitulating like a woodchuck since 2016 and the grind of it all has been getting the deals to plug the whole thing in. It just needs a whole lot of money throwing at it now.

Next, a deal was finally nailed with mucky old Yorkville to help clean up and ready the Frontera balance sheet (announced in early June) and a little tussle subsequently developed with Yorkville (thru August and into Sept). My understanding is that this is not complicated stuff and an explanation on Thursday next at the stockholders meeting needs to be listened to really carefully to make sure there’s no misunderstanding by retail - I understand that a sensible outcome has already presented itself and just needs working through with the lawyers. Like someone said on here, you don’t fight over an empty box.

Thanks for the great notes TBTT

I agree with Shakey. My view is that Burundi is working hard to build a mining industry and is going to work to ensure that corruption, crime or punitive taxes don't jeopardise the growing mining interest in the country at this stage. Compare that to the DRC which has a mature and VERY lucrative mining industry with big players involved; something like $25 trillion worth of identified untapped mineral ore deposits; 40% of Africa's diamond production and 15% of Africa's copper production. It's too early for Burundi to start turning the screws just yet in my view, but give it a decade.....

Not a heavy trading day Tiger....? Some fairly large delayed trades just surfacing... ...market waking up to this hugely compelling little company, currently valued at a paltry �26mio....

Regarding political trouble..... I asked a mate of mine who lives in East Africa for comment. These were his thoughts: "I am sure you have done your research on Burundi and President Nkurunziza. Certainly of the three countries (Uganda, Rwanda and Burundi) in the region, I think that Burundi is the most at risk. As you know there was a failed coup in 2015 as President Nkurunziza went for his third term. Anyway by whatever means he is now in his third term. I fully expect him to remain in office for life or until he is forced out. I would not count on the election process. This is very similar to Uganda except Burundi has more of a history of ethnic violence. This apart, countries like Burundi need to generate income and mining companies meet this need so such companies may probably be protected. The chances of nationalising the company and keeping it going by Burundi nationals would be low in my opinion. However if civil war breaks out as it did 25 years ago then no chance for the mining. However the country and their citizens might well shy away from another devastating civil war." Just a view. And of course, the president attended our inauguration 6 months ago which is not a bad thing: https://www.miningafricaonline.co.za/index.php/news-and-events/news-archive/3489-rainbow-host-burundi-president

Moving.......

Thanks Shakey, I'd be very interested to hear Martin's reply if you would be so good as to post a comment here. My view is that they spent the extra money intentionally - the plant is hugely hugely overspecd for just 6,000tpa. It really adds credence to the exploration upside story and the ambition here.

I think what taufour is saying is that Martin alludes to the fact that we will need increase processing capacity when he raises the prospect of more mining activity by referring to "multiple mining areas" in the presentation. More mining requires more processing by virtue of the fact that mining produces stuff that needs processing and I think taufour is suggesting that this is why the plant has been over-specd by x 7; because this increased scale of mining has always been the plan / aspiration.

Wow! A superb presentation detailing an incredible first year. 2017: IPO / 25 year license secured / strong government relationships (10% free carry) & local community engagement thru local labour & CSR --> country risk mitigated so far� / in production & earning revenue / valuable basket / extraordinary 47-67% TREO / veins consistent at depth (35m) / processing plant built / low tech processing by gravity separation as concentrate is 4 x SG / tarmac road routes for export trucks / off take agreement with bluechip � payment on delivery to coast / airborne magnetic survey complete and 4 potential carbonatite pipe anomalies identified plus potential 500,000 ton lopolith / UK institutional investors / BOD & NED own 40%. 2018: Promises to be exciting starting with maiden fully funded drilling campaign results in April and JORC resource by year end. http://www.iii.co.uk/brr-media/483270/121-mining-cape-town-rainbow-rare-earths-presentation

Splendid! Looks good to me Tiger!! It's a very large and very valuable lump of rock! The other targets we're drilling right now are hugely exciting too. Very happy with the interims, particularly the tone around to government and local community employment etc etc. Martin and the team doing a great job here!

Yup - iceberg buyer. ...and there one for today - 14:53 - �25K.

I bought into this just before Christmas. FWIW, apart from all the usual reasons, a key reason for me buying in here was the really strong Corporate Social Responsibility with regard to the local community in their mining areas. I think that healthy CSR in this day and age reflects a healthy business.

Great RNS. I know someone who did some corporate work for the BOD of this. In a completely above board and non-insiders way, he told me that they are a really decent, bona fide lot which huge energy and they are extremely excited about Gakara. While the extraordinary rate of development from IPO to production is laudable, the exploration upside is the exciting thing here. Anyone else think we're still seeing some flippers from the placement shaving out a couple of percent? Cant be long to go.... ATB