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Yes, the fact that the contractor pricing quotes are still the same as under the scoping study is hugely positive

Well it’s longer than a month if you want assays back. And I guess the new cornerstone investor is interested now

No one likes dilution but this needed to happen and it’s a great relief to me that it has been done at about the current share price and in an amount which confirms confidence in the company. Would rather the warrants weren’t there but they are at a much higher price.

Conditions are terrible for raising money. When you compare this to recent raises at eg Rockfire, which have been at half the (already battered) share price and have still not raised enough for more than a few months’ work, I’m pretty impressed with what has been managed here

Hi FK

I don’t get the newsletter (can’t seem to sign up for it) but here is my interpretation of the passage you quoted:

“As you know, drilling is already underway elsewhere on the PL082/2018 licence, targeting a different set of CSAMT data that was previously generated. THIS IS A REFERENCE TO HOLE 1

The initial focus here was justified by the presence at surface of the highest soil copper values yet recorded on the licence, and we have high hopes for this drill hole too. ALSO A REFERENCE TO HOLE 1. SO THEY HAVE HIGH HOPES FOR HOLE 1

But what the CSAMT data is now beginning to emphasise is that the area is likely to be rich in targets of real significance, and ones that are crying out to be tested. BEYOND HOLE 1, THE LIST OF TARGETS IS GROWING/IMPROVING

So, once this first hole – KCBRC001 – is complete, we will move on deeper into this drill campaign, confident that all the data shows we’re really onto something. WE’RE MORE CONFIDENT ABOUT HOLES 2 TO 6 THAN PREVIOUSLY

All very fair points, Chicken. I wasn’t trying to be negative overall, just looking to introduce a bit of analysis!

Interesting how different people can evaluate an RNS in different ways. To me, the main things we have learned from these holes are (a) that the depth of the mineralisation may be 80m, and (b) that the East-West extent of the mineralisation at the latitude of the drill pad is 35m (based on PEP1, this number is likely larger further South - perhaps up to about 200m).

Those new dimensional constraints (insofar as they are that - it’s admittedly early days) seem like bad news to me. If the dimensions of the mineralisation turn out to be 75m wide x 80m deep x 250m long, that produces a resource of about 500koz. That’s not bad, but on difficult terrain in Colombia it’s not going to set the world on fire. Positives are it’s shallow and pretty high grade.

Comments welcome!

I don’t see any hint in that RNS that there is a potential/likely sale. I think they are hoping to get Newgen to restructure the existing debt and lend a bit more. If I had to guess, they will probably succeed, at the cost of an increased interest rate and a monstrous pack of warrants

Production figures better than I imagined based on previous announcements. However, the RNS makes clear yet again that the company is currently not financially viable on the basis of current debt structure. Accordingly, the entire future hinges on a successful refinancing. The fact that the board have had 6 weeks or so to secure this and now only have a week left must be a concern. I expect they’ll pull something off because they won’t want to lose their jobs, but the question is how bad it will be for current shareholders

JBT, fully agree the investment merits here are unrivalled. My interpretation of today’s drop back is simply that we went up by 20 odd percent in a week (without any actual news) so a few people will take profits. Doesn’t in any way undermine the fact that those waiting 6-12 months should get three digit % returns

Hard to know what to make of it in my view. Clearly the pxroxenite is good news, but we have no indication of how much of it there is - is it 300m out of the 576m or is it 15m dispersed through the 576m?

The visible sulphides at the bottom may be a promising lead, but from the way they are discussed I think we can safely conclude that that great big blue blob on the MLEM map has not (so far) transpired to be a great big slab of massive sulphides.

I suspect the true merits of this drill result will take a while to become clear

Very compelling images on twitter. If these techniques turn out to work this is going to be something special

Agreed we need to know profit from TVM as soon as possible, but can understand why it might be difficult to give those figures right now, with the scale of operation about to change. Some reasons to be (very) hopeful about cost:
- I can’t imagine Namibian labour is overly expensive
- fuel prices coming down
- selling commodities in USD and paying costs in ZAR is currently a very favourable thing to do
- recent confirmation that we will be able to mine open pit rather than underground
- our tantalum and lithium come from the same ore - we only have to dig it up once

My reading is that they have finished hole 1 with RC all the way but are going to do hole 2 on a 50/50 RC/diamond basis. Isn’t that it?

Seems like a good decision, since identifying the D’Kar-N’Gwako Pan contact is so important (and will be throughout all our future exploration of all the KCB licences) and it’s hard to see how you can identify a physical boundary from bags of dust. Seems a good decision to me, even if we only do one or two diamond holes

https://twitter.com/kavangores/status/1582725582835830790?s=46&t=vp4Bc5Dp1wJTdgRt47dXag

This seems like a major exploration boost. Very good of Sandfire. I suppose if you don’t ask you don’t get! Well done to our team on the ground

Hopefully production news this year. In the interview Dennis said first sale of HMS Nov/Dec, and tantalum upgrades complete this year also

Yes, the $300k per month on HMS is profit. Remember as well:

- the company has offers to build a separation facility in 2023 for zero cash cost, which will triple profits
- the company has a pending application for permission to mine the next beach along, which appears to have similar mineral characteristics but is many, many times bigger

If both the above come off (and there seems absolutely no reason why not) it seems to me we could by this time next year have an HMS business worth $100m plus to a buyer

Thanks Poppyseed, really helpful

Harvd, I agree it would be nice to have a more formal clarification than the interview, but I think it’s pretty clear what has happened. The production is about to increase 10x. Seems very likely the $75k is the pre-increase number and the $750k the post-increase number. I think this must be right, because we’re told the lithium figures will be similar or a bit higher, and I can’t see that our lithium investor would have invested $7.5m for 49% of the lithium if it was only going to bring in $75k per month. It has to be the $750k figure, doesn’t it?

People starting to realise these projects are actually happening this time. Had some false starts under previous management (some will say that’s an understatement) but Dennis has been extremely dynamic since he has been CEO and the stars seem to be aligning

Fair points, Mike, and I agree it has the potential to turn out well. Points on both sides, I reckon