Member Info for Shedulike

CHRI5P might be a better signal if they were sells as suggests Mm's want them for a change. Well that's three calendar months with no official news, forget geothermal might be more apt to have a mushroom farm down there.

Interesting little twitch, let's hope it's not postmortem spasm :)

Metals have been getting a battering since late April but it's encouraging to note that only lead dipped below the figures used in the PEA. They seem to be recovering a little now but it demonstrates the prudence of using these lower averages.

That's what is a bit confusing Mm's, looking back at 2019 when we last went into the 700-750m zone each drill was taking about a month. Even allowing for Covid delays it still seems an age to complete drill 1 of this set (MC said they would report completion). Seems unlikely we are going deeper due to comments about costs and WHI mention the technical difficulty of going deeper in that research note. I know Lundin drilled a very deep hole with SPI to test the feasibility but I don't know how successful it was, WHI seem to be suggesting it would have to be done from inside the mine. Perhaps they're wedging off as in 2019 when they explored the hanging wall zone with daughter holes? Must admit I don't really understand what the hanging wall is other than it's something to do with the upper side of the mineralised vein.

Bricks I don't think a PFS is essential for a JV. Undoubtedly it would be better to have one when agreeing terms, there's no getting away from that and any deal will have to recognise the risks that remain, but it isn't a prerequisite IMO. We have also advanced multiple work streams since the the PES almost two years ago. Must admit I'm frustrated about the news flow, Myles has pulled the shutters down for three months now and I don't think it's credible that they haven't completed the first drill or that the metallurgy has been held up for months after ProyectoToral said it was expected late May.

Newbie don't think I ever touched on that but I do wonder what Conrad might be doing as they state they specialise in pre production agreements. Whether we would need the mining licence first though could be an issue. IMO we need somebody who wants a piece of Toral in return for funding, a mining / renewables project would be ideal as proposing a green mine would pave the way for grant money, I notice that WHI were quite bullish about that. I guess WHI were also quite happy to raise the subject of equity raises as they would get to arrange it and claim their juicy fees. I'm hopeful an alternative is being thrashed out but until we see something nobody can deny that a placing is a possibility. As Highside says it is difficult to see how a placing at current levels tallies with their valuation. At least with MC getting half his salary in stock plus the fact he has participated in placings at higher levels means he is incentivised not to dilute himself.

Only just realised that there is another 18 pages to the WHI research. It's by far the most detailed research we have ever had so thought I'd flag it to anyone interested. Their previous efforts were so brief I had assumed it was just that page but scroll down below the index, very thorough indeed and really demonstrates the robustness of Toral, near term impact of further de-risking while not hiding from the fact we need cash. Difficult to see how an equity raise can solve that problem now even if we do maintain 100% ownership, surely time to share the asset.

I agree that raising the prospect of another project without a clear explanation of how it would be financed has caused unnecessary confusion. LR once said it didn't have to be mining and also that there could be more to Toral than mining which is why along the Linkedin hints I am hoping for a mining / energy partnership, but to be honest we shouldn't be having to guess. He also did that interview where he was listing just about every mineral other than "Diamonds in Russia" so definitely a confusing picture on that front. The general strategy of de-risking Toral while keeping all corporate options open is understandable and I agree with that policy. However I am also very concerned about the delays - yes there's always slippage but it has been terrible on this campaign. It could be that the Covid delays also hit the third party who had the rig before us which might explain the delay in getting started but on the face of it this first drill is taking three times longer than the equivalent in 2019. I have found Myles communicative so don't want to be too critical but he likes to portray a laid back image (when he used to do the odd bit of media) so I hope that hasn't permeated down to a culture change on the ground. If we'd started on time we could have had assays back from three drills now plus the mets seem to have done a vanishing act. If it has all gone quiet because a deal is being tied up then all will be forgiven but until we hear something concrete I understand the scepticism, we've been here before after all with the VE.

Yes you can that's fine Jedster as can I. I'm not defending the inadequate approach to financing which lead us into a tailspin of placements but I do see a largely de-risked valuable asset which particularly in the current climate should attract a partner. You say you are a few thousand down but if you think it will take a miracle to save what remains, then personally I would take it out, I've never understood the approach of not rescuing the remains of an investment you don't believe in but we've had this debate many times. Again let me make it clear I'm not defending the management of the SP that has lead to this situation but I don't think it will take a miracle to turn this around which is why I'm still here. Believe me I've pulled out of other shares and taken a loss when I can't see a solution and I know it's hard but funnily the hardest bit is selling and it's refreshing to put the cash somewhere either where it's completely safe or a less risky investment.

Yep 1971 was a bad year for EUZ. If you think DB got mates rates you can get best mates rates now on the open market. Simple situation - sell your last groats if you genuinely think it's worthless, buy if you think we hold a valuable asset worth more than £3m. As WHI say the cash position represents risk, let's see what happens but if you think it's worthless then probably best to belatedly follow your instincts and get out.

Yes weren't TP valuing us at 34.5p discounted? We have been diluted since then but it's still a net reduction despite further de-risking work, which is a bit disappointing. I think WHI are saying that we will need more cash to get to a point when a FID can be made, I assume they mean getting a BFS. As I see it there are two distinct phases to funding this - financing to complete our journey as an explorer proving the viability of the mine, and the much greater financing of the full CAPEX to build the mine. Obviously the pressing thing is to find a way to getting over the PFS and BFS line which could happen with a partnership in which we yield a % of the asset for the necessary financing. Of course a major could tackle both the relatively small issue of completing PFS works and the CAPEX but I think EUZ will want to stay in the game with a more equitable partnership. Not saying I know that anything is on table or not just my best guess of where we are.

Well EUZ Linkedin have posted it so guess they approve - what news next?

Strange time to issue this when I would have thought the metallurgy is imminent, but I like the multiple upsides of 11.7p though they do allude to our current dilemma - that we need capital to get to a BFS. If somebody is going to bring the necessary cash in a JV then I think it will trigger a revaluation on that sort of scale. As ever though we are reassured of the quality of our project but we continue to await the kind of news that once and for all will remove the issues that have dogged us and allow the asset to be fairly valued. Same old....... for now.

Mm's the slow pace could indeed have something to do with the mine plan generally including this possible bolt on geothermal project - "Additionally, all holes will be geotechnically evaluated as drilling progresses, providing additional information for the feasibility study process". This last three months of nothing is testing my patience though!

I'm somewhat perplexed. When they announced 270m reached on Linkedin early in June I noted that they were progressing at less than 8m a day on average. Previous drills to the current target depth have been around 22m/day. TO-22 was drilled 11th June - 11th July 2019 to a depth of 760m so that was a rate of 24.5m a day. We've had some Covid delays but three times slower? Is the extreme heat (eased off now I think) some mitigation? The knock on effect does worry me as when on earth are we to complete this set let alone get the assays and calculate a new JORC? Maybe the plan has changed and they're going deeper though they always said we couldn't afford that, whatever has happened I think we deserve to be updated good or bad.

I just think the metallurgy is more important at this stage. Phase one was conducted on samples from a depth where we are currently going so that is more of a known known (okay let's not go there again). Phase two a bit shallower and the final piece of the jigsaw on the shallow set from last year. That should give anyone interested near complete certainty of what they will encounter in terms of grades and recoveries during the ROM. This work is overdue but maybe as a condition of NDA an interested party can get to see it before the market, I'm not sure to be honest but on balance my guess is they'll release it before any possible JV announcement, I could well be wrong. My thinking is that this current resource drilling is less important to a deal which is just as well as I can't see it being converted into JORC this year the way things are going.

On a more positive note I think the final metallurgy is by far the much more significant de-risking step and that is surely imminent, being two months delayed from the Proyecto comment. The resource drilling will enhance the prospect assuming we hit the grade but I don't think a potential deal is likely to be resting on results from these current drills.

Eleanor (I assume) on 6th May with regards the metallurgy. "The laboratory plans to complete the remaining tests by the end of this month where the previous results will be confirmed. The metallurgical tests brought together the different types of mineralization existing in Toral, in order to design the most optimal and economically profitable process". On the drilling she said three to four months but we have taken an age on the first drill, at the current rate to complete three deep drills, get the assays back and commission a new JORC it's looking like 2023.

Jedster like I said the other day I think a mining / renewable energy JV is very likely but not because of what's been said on Twitter. I'm more frustrated by the non-appearance of the metallurgy and slow progress on the drilling. The JSE move yesterday was interesting as flagged by Mm's but I think it was on just two trades. Just in case anyone else was concerned I asked about wildfires in CyL earlier in the week and there is nothing threatening our drilling crew as things stand. Floods and locusts, I don't know.

Well it's something Grappa though I'm slightly sceptical that if the Twitter rampers know that there's multiple credible sources of positive news why they aren't buying every day along with their 'mates in the city'. Having said that I remain optimistic based on what I definitely know as facts.