Member Info for MTSparky

Who in their right mind would take investment advice from the telegram group ?!?!….pmsl

Don't get me wrong a rock 5000m x 200m x say 5m @ gravity 3 and grade 3% still yields a large sum of money. BUT we still don't have 300m deep sulphides at 6-8% copper, so what was he talking about? The webinar is dated 2nd June 2021 and is on the PXC website. For context it would be helpful to see a map and drill locations indicated.

In the recent webinar, which is on the PXC website. Marcus Edwards-Jones states that they (PXC) "know" that the sulphides are 5-7km long, 300m deep and 200m wide. He also states 6-8% as a reference grade for the rock.

Assays within the sulphide zone include 2.0 m of 0.38 g/t gold, 34.38 g/t silver, 2.28% copper, which includes 0.5 m assaying 1.31 g/t gold, 120.0 g/t silver, and 8.38% copper. That is 2.5m deep. KXD21-02 was completed at a depth of 241 m in un-mineralized rock.

Where is the 300m depth coming from ? Maybe this is why the SP tanked on the results?

just for clarification, what is the big news they are waiting for?

Are there any more webinars in the making? I would like to know the companies take on the assay results. The company is usually a bit more forthcoming on the webinars...;o))

The location of the mine, the 8% copper grades, the discovery of "Anomalous molybdenum and tungsten mineralisation". The clues are all there for a Porphyry system somewhere at depth.

Whilst not an amazing result, this is one of 20x drill holes being completed this summer. Plus we have added resource to the Empire open pit. Base valuation for Empire open pit & Red Star ~£1.60/sh so an increase to that valuation is likely good news. Holding for now...;o))

I am not knocking PXC. Raising capital with a portion of it through a placing is OK. The higher the SP obvs the less share diluted. My original point was that IMO if these ore bodies are vast and Sulphides test as expected I can see PXC getting more aggressive in their ambitions. Which may need a placing to finance.

RightOn. Having listened to the webinar of 01/06/21 which you hosted BTW. Q3 about Red Star being developed at the same time as Empire. Richard Wilkins is very careful with choosing his words regarding financing this scenario.

Richard Wilkins quote: " It's a question of managing the cash flow in manageable chunks so that we can build the company without having to issue loads of extra shares and handle it bit by bit"

.....he did not say "without having to issue ANY extra shares"

Red Star can only be developed for low capital cost along side Empire if it is a straight forward under ground mine, assuming say 320m length of ore. If Red Star is as big as is thought the development would be a much larger beast and would most definitely require large amounts of capital. They talk about buying more unpatented land if the ore body is as humungous as they think.

Red star is still in exploration so lots of ifs and buts. I think to categorically state PXC will not issue more shares to raise capital is not a fact.

All IMO DYOR !!

Woh there cowboy !! The current plan is to develop Empire as a "low hanging fruit" copper mine. about $52m needed to finance this beast. Only after 4 years do they produce the Silver and Gold as this requires a separate production facility i.e. more cash needed. They use cashflow from the copper to finance the Silver and Gold production. The Scenario 2 is develop Empire by 2022 and Red Star by 2023. Red Star development will need PEA, Feasibility etc etc. which all costs money about $4m and the development will cost $20m.

Do you honestly think they can finance all of this $52m + $20m + $4m without the need to raise equity? The company has already stated they want institutional investors. I would not discount a large placing with an institution...;o))

All IMO DYOR !!

I just wonder whether we shall see a much more aggressive production plan proposed. Target production of the Silver & Gold ore at Red Star, Navarre Creek & Empire sooner. Might mean equity raise though.

They need to prove what they sort of already know internally. Exciting times.

I think the answer depends on the finance agreement they secure. Initially they would borrow say $50m with a 80/20 split between borrowings and cash deposit. PXC may have enough cash to secure the loan without needing more than they already have. I does look vey likely though that PXC will develop Empire and Red Star together.

....let's see what follow through we get. Another attack on 80p expected. ...;o))

If we allow ourselves to fantasise a little bit and say the Sulphides could be worth even as much as say 10x the value of Empire and Red Star combined (ball park £1.63/sh ish). The Sulphide assay results could be pretty epic !!

It does look like the SP is about to blow. With a £1.60/sh (ish) back stop for Red Star and Empire, the risk/reward is second to none.

ALL IMO DYOR...;o)))

Hardman stated a potential uplift (to the 95p) of 23p/sh at 8% discount subject to further development. If we add that to the 139p gives us £1.62/sh. All at a fully diluted share 126.68m.

BENCHMARK...If greenlighted we estimate a combined (Empire plus Red Star) value 95p-139p depending on copper and silver prices.

These look like heavily discounted values due to risks. Add in the sulphides and other sites a SP above £2 looks realistic.

Does anyone have a target price for Red Star alone ?

ASSUMPTIONS...2.41m oz of silver eq, average head grade 16oz/tonne (514.4g/t) recovery 90%, average silver price $19/oz

...be interesting to see what grades are achieved with current drill programme.

Red Star
PXC believes it will initially be able to expand the current 103,500 tonne resource to at least 650,000 tonnes at silver and lead grades that are equal to or better than the existing resource summarised above. After that the aim is for a resource that is well over 1.0m tonnes, with as great a proportion as possible in the "measured" category.

Indeed PXC's current Red Star mine plan envisages 1.6m tonnes or ore over a 10 year period.....

@$24 per lb Silver that is a huge value....;o)))

Really good test of support this morning. A blue finish would be a cracking positive signal ...;o)))