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Can somebody who understands JORC standards help with this?

Munni Munni has a 2004 JORC resource of 2.2MoZ PGMs, primarily Palladium. I’m not sure when that was put together but presumably prior to the 2012 JORC code so let’s say 2010. In 2010 the price of Palladium was about a quarter of what it is today. Rhodium has moved far more significantly still.

Now, under the 2012 JORC code, the definition of a resource depends not just on what is there but on what is economic. That means it’s necessary to use a grade cut off, and what that is depends on the price of the metal in question. I don’t know whether this was also a feature of the 2004 JORC code, but it seems likely it was, ie that some cut off grade had to be used, which in turn would be influenced by metals prices.

So… does it follow that when we upgrade the Munni Munni resources to 2012 JORC we are going to get a massive load of “free” extra ounces just by virtue of prices having rocketed and cut off grades therefore being much lower?

Thanks for the answers, guys. Nice board, this :-)

Surely someone has some thoughts on my question below? Otherwise, how is there such confidence this is a billion dollar hole? Don’t get me wrong, it’s a great result, but on its own it’s equally consistent with either 40kT of ore (not very exciting) or 40MT of ore (billion dollar hole). Does someone have any knowledge on the point?

Rod will only exercise the warrants if confident we are staying substantially above the strike price. I reckon he exercises if we settle firmly above 1.50, ie in a range of say 1.6-2.2. That’s 300-400% up from here. In that scenario, I don’t mind the 4% dilution.

What I’m more interested in is Rod’s focus on Munni Munni, which I think is very exciting. Seems to me there is almost no value attributed to that project in our SP, yet we know there is 2.2MoZ of PGMs, equivalent in value to some 3-4Moz gold. I also love that geophysical map showing that the most interesting geophysical target is untested

Hi all

Interested observer here. Congrats on a great drill result. Can anyone tell me whether there is any information (or educated estimation) concerning the likely horizontal dimensions of the mineralised breccia? Obviously at least c. 100m deep (150m drill hole but the hole was at an angle). But is this a case where we expect the horizontal dimensions to be eg 100m x 100m, or 100m x 500m, or 100m x 20m, or what?

P.S. Rod will be all over this like a nun sandwich

AA may not insist on equity in the end, but if it does have to be equity you still wouldn’t do it as a standard broker placing. The obvious solution would be some sort of redeemable preferred equity to a small institution. They’d get a preferred return in priority to ordinary shareholders but subordinate to creditors (AA). Ticks AA’s box because they’re funding less than 100% but with no competing debt. Ticks shareholders’ box because no long term dilution. Problem solved

I really don’t think there will be an equity raise, it should be easy to get $5m of debt as part of late stage funding for a project backed by AA which will generate the cash for repayment in no time flat

Nice summary of our KCB licences on twitter:

https://twitter.com/kavangores/status/1566696622960316416?s=21&t=-I0z4GxKHLcDwKtcozc0Gw

5200 square km, seven targets identified with lots more potential after that.

In the last month or so we have learned that as well as highly favourable locations and geology we have positive geochemistry at all 7 targets.

Given the likely value of any discovery in the KCB, I do feel that the market has rather failed to appreciate the importance of the strong copper in soil results in all 7 areas, overlying the Dkar boundary and up/down trend from many existing discoveries/mines. It seems to me that those copper in soil results derisked our KCB projects significantly, yet little reaction from the market. Bargain price at the moment if I’m right

I think the reason for using contractors is:

- if iron ore price drops you let the contracts lapse and mothball for a few years; if you own the production operation you can’t do that - instead you go bust
- if iron ore price rises you take on more contractors and scale up; if you do that with your own operation you risk setting yourself up for a fall when market swings back the other way.

In short, the contractor model is more flexible and lower risk. Works for me

Smiller, completely agree about the tiny JORC areas. You’ve got to think that once we start mining it will be child’s play to keep on replenishing / expanding the JORC as we go, and ultimately to expand annual production. Maybe this is what Anglo American have seen

Seems a good deal and very positive to be getting stuff like this ticked off. We need action and progress and we’re getting it

End Feb 2022 - deathly slow progress on tantalum, mired in politics on diamonds, tied up in legals on HMS, no lithium, no REE project - share price 1.25

End Aug 2022 - tantalum funded to profitable production, diamond production resolved and now profitable, HMS licence granted, lithium funded, REE project acquired - share price 0.9

Absolute madness and one of the best bargains around. We should be over 2p already

More excellent geochem. Particularly notable:

- Dimensions 5km x 3.5km

- Follows the geological trend of the Ngwako Pan-D'kar Formation geological contact mapped nearby by Kavango

- Also associated with NW-SE trending lineaments, which cross cutting structures are known to be linked to high grade copper mineralisation elsewhere on the KCB

- Area features Kalahari sand cover, which is known to attenuate soil geochemistry values. Even with this, Kavango has identified a high-tenor anomaly relative to anomalies identified elsewhere on the KCB by other companies

- The Target also has widespread elevated zinc values (>18ppm, Max 37ppm).

Seems like a really good target. We now have 7 targets to go at in the KCB (020 x 4, 082 x 2, Mamuno x 1). All with strong copper in soil, all with the right surrounding geology

Cu price has currently stabilised nicely. If that’s the drop done I think that’s a pretty bullish sign

MB, I like your enthusiasm but I think it’s more accurate to say TB said this quarter is better than last quarter. That’s not necessarily the same as saying July was better than June. Of course, July may well have been better June. But I don’t think we know

Very happy with these results. I’ve always been quite impressed by the banana zone analogy in terms of geography and geophysics. But the question was always: is there actually copper there? Today’s results seems a strong indication that the answer is yes. Also, the size of the copper anomalies is very encouraging

The company is well funded and there was a placing in May. “You should be worried about a placing” is just what people say when they’re trying to drive the SP down (not aimed at Ella). Same as last time you sold, Cox - can’t resist trying to push it down on way out. And you were only in for about a day!

As I mentioned this morning, the real spread at close yesterday was 0.55-0.57. That’s the same as now, so we are not down

The real spread at close was 0.55-0.57. So, when we open this morning, and whoever decides how to publish these things puts the spread back to 0.55-0.6, so that we immediately show as a few per cent down, lets keep in mind it’s not a real drop. That is all