Member Info for Max111

Yes the want to open pit mine the top 35-40m. It will have lower grades than the ore body, but will still be profitable at current prices.
Previously they were just going for the free-milling silver using very inefficient methods.

Using silver leaching, will unlock the silver from a much wider area.

The 35-40 Phase 2 drill hole assay samples were sent to the lab in 2 batches.
The first batch has been in the lab for 3 weeks now. I think Bill will release the results in 2 batches as he did for Phase 1, so we might get the first batch of the results next week.

Phase 2 drilling is much more targeted now they have a better understanding of the iron ore beds.
Therefore, I am expecting even better results than we had from the awesome maiden drilling results.
Plus we might get confirmation of the 90% interest deal for Hamersley next week.

*stopped operations at EH in 2000

For silver lovers like me, Monday is a big day when we start work at Elizabeth Hill, one of the highest grade mines ever in Australia.

12:44mins show the old footage of Elizabeth Hill.
https://www.youtube.com/watch?v=iLBQ5GYXQGc

At the end of the Q&A Bill said, "Looking forward to getting into EH. I hear some incredible stories just as it was closing down the guys were standing there on silver on the bottom drive, the floor of the drive there was silver in it!"

You can understand why they stopped operations at EH in 2004 when silver was only $4/oz. But at current prices, it's extremely profitable to mine.

Exactly, you know the DSO is going to be a big hit and the share can take off again when sentiment returns.
I’m going to ride UFO all the way to mid-tier. DSO gives UFO that potential.
You try to time it if you can, but u missed the big move up in October last year, you were actually the only one being negative that time.

Wents, so why don’t you sell and put your money into a stock which has a CEO who you deem to be of CEO material?

Wents you are the one who says don't trust anyone on this BB (which I agree with), but you trust Stevo? This is very telling.
If you or Stevo are not happy with BBG as CEO, why don't you try to use your voting rights (if you have any) to vote him out at the next AGM?
But I'm sure you will find the has the overwhelming support of the majority of actual shareholders.

Stevo, what was the contact details of the person you were communicating with at the ministry in Mexico?
EWT asked you for it several times, but you failed to answer.

Also the way I see it is that if we are able to hit & possibly exceed our high-case tonnes at Hanc0ck (which Turner Pope previously suggested), then it bodes well for hitting and possibly exceeding our high case tonnes target at Brockman since:

1. Our tech team have proven their technical competence in hunting the DSO beds and successfully making discoveries.
2. Regarding Brockman, RNS 9th October stated, "Initial interpretations are excellent with indications of the presence of a larger amount of the mineralised Brockman Iron Formation than originally thought." IMO this was what caused the rise to 3p.

And if we hit our est high case tonnes for both tenements, then we are looking a 90% interest in Hamersley valuation of:
245,000,000 x 0.5 Fe = 122,500,000
x£8/t = £980,000,000
x0.4 (to discount 60%, not 80%) = £392,000,000
x0.902 (UFO share) = £353,584,000
= 9.75p/share

And obviously have to reduce the aggressive 60% discount factor (as TP mentioned).

1.2m oz of the ore body was mined. But area around ore body is very underexplored. They are planning to open pit mine surface 35-40m (what Bill referred to as the boat in presentation).

In Turner Pope's SOTP valuation they stated:

"Discovering significant deposits and advancing them to resource estimate stage, either with a partner or by self-funding, will be the key driver behind any valuation uplift for the Company, should its exploration programmes be successful."

Bill said TP should update Research Note after Phase 2 drilling results, which makes sense.

This is when investors needs to make their own determination as to what amount of resource we are likely to achieve.
Hanc0ck's downside valuation is based on just 5M tonnes, upside valuation on 15m tonnes.
IMO, from the 300m of DSO strike we currently have from Phase 1 and results pending for 35-40 holes for Phase 2, we should exceed our upside target.

This was the article about FMG jumping the queue:
https://www.theguardian.com/australia-news/2016/aug/16/fortescue-metals-uses-legal-loophole-to-beat-rivals-to-pilbara-mining-rights

It states that Western Australia has “first come, first served” laws governing the transfer of mining permits. That means the company that first lodges its application for newly available leases – known as mineral tenements – on a government register wins the right to explore, and then possibly mine.

As Bill said when more than one company applies for a licence at the same time in Australia it goes to ballot, which is what happened with the Hamersley tenements.
We are very lucky to have the tenements since Rio, FMG and BHP were also after them.

We have an excellent technical team that have made great discoveries hunting the DSO Iron Ore beds in Hanc0ck, so now just need to advance it up to Resource Estimate stage with the new assay samples that are in the lab.

Someone previously posted an interesting article about the tactics that FMG use try to jump the queue and find out about upcoming licences first.

I think it’s literally just a ballot in order to prevent Monopoly/Oligopoly.

Yes exactly. They are doing a maiden JORC resource first. RNS 20th May stated:

"The Company is in the process of commencing a follow-up drill program on the Hanc0ck licence with a view to generating a maiden JORC compliant resource and, once permits have been received, we will commence our maiden drill program at the Brockman licence as well, which contains historic BHP iron prospects and remains an exciting licence in its own right."

Interestingly the person that will putting together the JORC resource will be Howard Baker, who did the Resource Estimation for Rio Tinto.

And Bill said yesterday:
"These permits were originally picked up in a ballot. When more than one company applies for a licence in Australia it goes to ballot. Rio, FMG and BHP had put their name in the hat at the time of the ballot."

Bill said he is expecting it within 2 months and that is with factoring in as he said in previous interview "log jam in the lab".

It all depends if have enough drill density and data for a maiden JORC resource. The 53 drill holes they previously drilled produced awesome results with a DSO strike length of over 300m. Now they have just completed 35-40 holes of in-fill and resource drilling.

We should get a JORC compliant resource for Hanc0ck within a couple months.

The first batch of samples from Phase 2 drilling have now been in the lab for over 2.5 weeks.
Bill said they have just finished drilling 35-40 holes in Phase 2.
Therefore, the second batch of samples should also now be in the lab.
Bill said yesterday once we get the full results from the second set of sampling Howard Baker should hopefully put together a maiden JORC resource.

Before then Bill will probably release 2 batches of results as last time.

Also he said yesterday expecting all data from Capstone in the next few days.

ALIEN METALS LIMITED - Introduction to Alien Metals Limited
https://www.youtube.com/watch?v=iLBQ5GYXQGc

The team are doing a great job hunting the beds!
Looks like we will exceed our high-case tonnes target (as Turner Pope previously suggested due to several kilometres of BIF being discovered). With Han**** we’ve covered not even 30% of the tenement area! Bill said today, "We believe there is great potential for a huge amount more of the high-grade material."

Hamersley's upside valuation with 90% interest:
245,000,000 x 0.5 Fe = 122,500,000
x£8/t = £980,000,000
x0.4 (to discount 60%, not 80%) = £392,000,000
x0.902 (UFO share) = £353,584,000
= 9.75p/share

Then reduce the aggressive 60% discount factor and hopefully add JV or Contract Mining.

I'm surprised you say that about Bill when he has made the right strategic decisions at every turn.
We were due to spend all the money on drilling Donovan2 ourselves, but Bill let Capstone take on all the risk. Capstone paid for all drilling and even made cash payments to UFO. We now get all of that data for free which the geologist in Mexico is now working on to better target the high grade areas.
Did he make the wrong choice?

As technical director he helped pick:
Hamersley = winner.
Elizabeth Hill = soon to be winner.
Munni Munni = IMO will be winner with the 3.5km PGE strike!
Nueva Andromeda permit = winner.
Tailings Project = samples prove ave recovery of 91.9% of ave 472g/t silver.

And with regards to fundraising, we have funds for drilling, but not for mining. This is what he was saying.
If becoming a DSO producer gives maximum return for shareholders, then I am all for using contract mining company such as https://www.maca.net.au/

Currently our DSO in the ground is only currently worth £1.6/tonne:
1 tonne of our iron ore deposit (which has grade range 50-63% Fe) x0.5 Fe = 0.5 tonne
x£8/t = £4/tonne
x0.4 (to discount 60%, not 80% as previously stated) = £1.6/tonne

DSO contractor mining = over $100 (£70)/tonne profit!!!
= Incredible upside.

What would you choose? £1.6/tonne or £70/tonne?!!