Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
At this stage has possibility of being an Alpala mark 2. Similar characteristics as well as similar existing infrastructure .It will however also be another huge capex project taking a long time and not the quick close to surface project we ideally need at the moment .Shouldn`t really complain though if we have found another Alpala.
The initial results are not exciting but we drilled the first section of hole just missing the core and the bottom section of hole 1 did hit the core but we are still awaiting assay results. Hopefully this bottom section was so good they had to be reassayed as part of standard QC proceedure.Hole 2 looks as it is hitting the core much more shallower and should be really good. This of course is assuming that their geo skills are better than their managerial skills.(not a high bar to achieve).Unfortunately our resources are so much better than our management but something will soon instigate change.
The rental market could be good for LBG but only if we avoid new build and use existing housing stock already in mortgage to us but in distress.This would allow people to continue to live in their home but provide them with an affordable rent and save the resultant drop in value from a repossession sale.The occupiers are more likely to feel they have a stake in the property and will look after it more especially if given the option to repurchase should financial positions improve.Should we experience a recession this seems a better way to avoid a large number of repossessions which is generally a lose /lose situation .
LBG will and is benefiting hugely from cost savings from branch closures and the sheer scale of the business but there has been a big black cloud on the horizon for a long time in the form of their massive exposure to the housing market.The housing market has been a key economic driver for a long time and for political reasons has been propped up with artificial stimulus every time there is any sign of a correction.Our economy in keeping with the rest of the developed world has been built on debt not productivity.We are encouraged to compete with each other to take out ever bigger mortgages as we cannot get off the property ladder for fear of being left behind and housing is something we cannot do without.It would have benefited us all to have let the housing market readjust at times but politically this was unacceptable as no one likes to see the value of their house falling /living in negative equity.Governments have reduced interest rates to ridiculously low levels,bought out of incentives such as Help to Buy which completely props up the new build market which LBG have been a major player in for the last 25 years.People have really stretched themselves to keep up and any even modest rise interest rates will now have a devastating effect.A rise of 1% to 2% for example does not sound much but is a very serious increase in repayments.Will governments be able to come up with another scheme to kick the can down the road ? This is what I ask myself .How long can we do this or have we painted ourselves into a corner finally.
Although possible I think it unlikely to occur as would take a serious back down from NM and I can`t see that happening as he does have an ego.(nothing wrong with personally but does make negotiations harder).
I agree we need to get started on these to at least see if there is anything there before we relinquish them.We are however a small company with limited resources and we have much more potential than we are capable of dealing with at this time.We are spread too thinly but are concentrating on those that show the most prospects.Personally I would like to see Cascabel sold ,reward the shareholders and use some of the money for the regionals or doing a joint venture with a major.My frustration is we are just too slow but I understand why and also understand why some results would be tactically withheld.
My view on where we are.
All is OK we are just going through the normal process at this stage of the game.All positive signs that a disposal or part disposal is going to occur soon.BOD making defensive noises is to be expected and BHP will be trying to use their influence to get this as cheap as possible.Normal stances in such a situation .BOD having calls with investors is also just a process as they have to be seen to be engaged but it is not really consultation it is like a Local Authority going through a consultation process on a planning development.It is ticking the boxes .As private investors we have no influence and are passengers on this journey.NM is clearly in charge and are acting CEO is a figurehead "minding the shop".A bit like when Putin had to pretend he was no longer the president for a few years(but not saying the characters are the same). NM will extract as much money as he can from this which will benefit him and hopefully us.He has a lot at stake.Solg are clearly holding back information as a defence.It is hard to value Solg without all that information.My guess is also the PFS will be delayed and this would not be well received but in my view is inevitable as Tandy is integral to Cascabel as a project and full drilling will need to be completed.Remember the phrase Tier 1`s keep on giving.I think there is more to come but we are trying to buy more time on Cascabel and the other projects.Are problem is we are only small and too slow as we do not have enough resources to match our ambitions.Interesting to see how this all plays out over the next few months and who gets the upper hand.
I agree the results are good but I am thinking they will need to be better than good in this location.If they become excellent then potentially a mine but location always needs to be considered .
My hope is Porvenir will yet prove to be a huge find but we don`t have those indicators yet but well worth further drilling.Hope is however a very emotive term that we can all express but I was trying to detach myself from hope and apply logic to the circumstances to understand where we are in all of this and I am awaiting results from the satellite drilling as their are indicators here.
I certainly don`t think Porvenir is a dud but not as good as was anticipated.
Solg are a small company ,not a major. We were very lucky to discover a huge resource but being small we have limited resources.We were trying to achieve the optimum result which was always going to be unlikely to achieve but worth going for.
The takeover of CGP without revealing what we had strong indications were on the whole of the Cascabel tenement.Therefore we either deliberately did not drill satellite targets until it was obvious the takeover would not succeed or we could not afford to drill these and the regionals at the same time.
We own 100% of the regionals and they look good so the gamble was to go for the regionals on whatever permissions came back first. Porvenir was first and not as good as expected.What would you have done with limited resources?Hindsight is wonderful in saying we should have drilled Tandayama and other satellite targets on Cascabel earlier but in their position would you have chosen the regionals or satelites.
My belief based on Dec 17 RNS and showing cores in pdf version indicates the gamble did not pay off in the way we had assumed .No takeover,No stunning regional results yet but satellite drilling has all the indications of a much bigger resource and Cascabel needs to be mined as a whole project and not just Alpala alone.
Glad to see Smickster,Bozi and some others starting to take notice of Tandayama RNS of 17 Dec where we were told there was a problem but it was a high quality one and fridays RNS just confirms this.
I agree with FTJNY .I always thought Blanca was the information that it was alleged was being withheld but no evidence as yet. It was however the target of artisinal miners therefore there is something of merit there with gold at or near surface and we went from very bullish announcements to very quiet.
Photos of cores of Tandayama is what I find intriguing as these are geologists porn(hope I`m allowed to say that ). They are saying to other geologists -look what we have found.They wouldn`t publish those unless they thought they were exciting. No photos of Porvenir cores as not exciting enough.
Tandayama photos of core
I think the clue to what may be revealed at Tandayama is in the photos of the cores.
Photos of the cores were shown for Alpala and Tandayama but not Porvenir as far as I am aware.
These indicate they think they know what they have got but cannot say until results back from the lab, which is right and proper.If they are pretty sure they are going to change how the whole Cascabel tenement is going to be mined they had no alternative but to delay the PFS.
They should have drilled this ages ago as it was an obvious target but priorities probably dictated they needed to start some exploration drilling at regional targets instead and they are 100% owned .
I think the reason they did not drill Tandayama before was due to the takeover battle with CGP as did not want the value of Cascabel to increase at this time. When takeover was put on the back burner as not going to be successful then they drilled what has the same signature as Alpala.
RNS`s have changed their tone and now sound underwhelming as compared to past references to dripping with copper and shock and awe.The make up of the BOD has changed and therefore expect more factual but less enticing wording from what is becoming a more grown up company.
Jason said they were having problems finding an area for the infrastructure as everywhere they have drilled they were finding mineralisation.If you read 17 Dec RNS regarding Tandayama carefully you can see they obviously think this is going to change the mining of Alpala.The results at Porvenir were not as good as expected but what they have seen at Tandayama has caused them to rethink and a more efficient /different way has become apparent with this discovery.Facts have changed with Porvenir and Tandayama so priorities needed to adapt.All good in the long run. No need to panic.
Today`s RNS needs to be read in conjunction with that of 17 Dec regarding Tandayama.
"This discovery will impact significantly on the upside for the Alpala development. We will have to carefully assess the impact on currently planned site infrastructure however, it is a high-quality problem.
If we are to be announcing the selling of Cascabel very shortly then this RNS would be necessary before that announcement to show we have something else to progress and what stage they are at.