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Hi Zach. Not to dampen your excitement but we spotted this at the time. Willem also tweeted shortly afterwards about the same discovery. Pretty sure it is Xtract.

Just to keep us focused on the prize while we wait for more news, I found the video at the following link very interesting. It is Alkane's Technical Director talking about the Boda discovery from October last year. I can't claim to understand it all but interesting nonetheless. Fingers crossed for something similar at Bushranger!

https://youtu.be/6L9dQVpkwkU

Agreed Iceberg. I just posted in the vague hope that Mr Bird might read it as he mentioned reading these boards in a recent interview!

On a positive note, at least the latest raise did not include a ton of warrants.

It's a shame Colin didn't do the placing with institutions / individuals who might hold onto the shares for longer than five minutes. Flipping of placing shares seems to be what is holding the share price back at the moment.

They are mostly sells. Look at the share price at the time of the trade. Also note that the share price has declined over the last couple of days. The large round numbers of shares suggests to me it is still placing churn. I think the price has held up reasonably well considering. The question is when does the selling dry up?

cyberiachas. There is clearly a critical point where the deposit goes from economic to non-economic which is a big value inflection point. The question of whether the deposit is economic is not just a function of the size of the deposit, it is also the capex, AISC, commodity price outlook and even financing conditions. The balance has clearly moved substantially towards the deposit being economic since xtr acquired Bushranger due to external conditions and the drill success. Hence the market has increased the probability of the deposit being economic and the share price has gone up. I am not sure the deposit has to be very large as you say for it to be economic - see for example the 2011 scoping study where it was talking about AUD 98 million of capex and a viable project with a smaller resource than today. Of course we would all like xtr to trigger the Anglo option with 2 million tonnes asap, but I think xtr has an economic resource before they get to that point.

@Investor12. I thought John Cornford gave a sensible methodology for a project at this stage: resource estimate x copper price x %.

You just need to come up with the assumptions.

If you just plug in the existing resource of 340k tnes, $8k/tne Cu price and 3% you get a value of over £60m. Clearly resource should go up as a result of recent drilling.

https://masterinvestor.co.uk/equities/johns-mining-journal-where-next-for-xtract-resources/

Now you come to mention it, it must be humbomumbojumbo. Only someone with his wealth and trading acumen could execute such a trade.

Is it not a big delayed sell from Friday when price was above 6p? A £340k buy and a share price drop of 8% just doesn't make sense.

I don't see a big sell at 6p as a bad thing, if that's what it is - more placing overhang churned.

Anyone know what that £340k trade at 6p is? It is certainly a whooper.

@Investor12. Your comments apply to every small cap that does interviews like this - it is PR, often paid for by the company, and should be taken with a pinch of salt. At least this Share Talk chap has disclosed his interest. I find these type of interviews interesting nonetheless as they give a few snippets and a bit more context beyond RNSs.

Anyway, rather than all this second guessing, conspiracy theorizing, etc., it would be better to focus on the facts as set out in RNSs and other sources. In my view these set out a strong investment case based on current market cap versus what is shaping up at Bushranger and elsewhere for Xtract.

Correct O&W. This is the relevant wording from the Bushranger presentation:

"AA have a “buy-back” opportunity, giving ProspectOre a mechanism to monetise exploration success:
a) If a deposit of greater than 2M tons of contained CuEq (i.e. 450Mt @ 0.45% CuEq) is ultimately identified. AA
may buy-back 80% of the deposit at fair market value as determined by an independent expert in accordance
with the JORC and Valmin Code. Parties are to then pro-rata fund to maintain 80/20 or ProspectOre may dilute
which ultimately ends with ProspectOre retaining a 0.75% NSR
b) If a “Decision to Mine” is taken by ProspectOre prior to the identification of a 2M ton contained CuEq resource,
AA also have an opportunity to exercise the buy-back
c) AA have a once only opportunity (before it falls away) to exercise the 80% buy-back whether the opportunity
comes through the discovery of 2M tons of contained CuEq or a decision to mine.
d) If AA does not exercise the buy-back and ProspectOre ultimately develops a mine, ProspectOre would have a
100% project interest less 3.5% NSR royalties and a $7.5M development payment to historic holders (which
includes AA)"

According to today's interview Colin thinks it might be a double yolker egg.

@Shorn. A large number of shares were issued at 4.5p in the recent £5m placing (111m shares representing 15% of the shares in issue). Many of those who bought in the placing will be looking to offload quickly for a small profit somewhere just above 4.5p. They are not ,and never intended to be, long term holders. With a large volume of sellers, the share price is held back despite the excellent fundamental story that is unfolding. Usually in these situations it takes a few days or weeks for the overhang of cheap shares to clear and the re-rate of the share price to materialise to reflect fundamental value of the company's assets.

The comment that well-developed chalcopyrite is occurring over the last few metres is intriguing...

"Copper mineralisation in the form of disseminated and fracture-fill chalcopyrite has continued through the lower marginal alteration zone of the porphyry to the current depth, with well-developed chalcopyrite occurring over the last few metres."

Lucky. From Northparkes website:

"The porphyry copper deposits at Northparkes are typically narrow but extend to great depths. The E26 and E48 deposits range from 200 to 400m in diameter (>0.5% copper) and extend vertically for more than 1,000m."

http://www.northparkes.com/about/our-operations

or should I say 'iccups

I thought the same - right at the start of the interview he said "troublesome" and then corrected himself and said "troubleless" when referring to drilling operations and then talked about "teeny hiccups"...

imkloot. The AA buyout will mean Xtract sell an 80% share in the tenement and receive a cash lump sum (recently estimated at $384m). I would guess that the company would use some of that cash lump sum on development costs for the 20% they continue to hold plus other exploration plus maybe a dividend, but who knows. If the option gets triggered, the share price will be significantly higher than today - that's the main thing!

Perhaps rig breakdown means we've 'it some 'ard rock, which presumably would be positive from a geological perspective...