RE: AA JORC18 Oct 2021 22:07
Could have been my post about JORC code you saw last week. Below is from XTR RNS on Bushranger acquisition in June 2020.
How I see it is that the type of resource used will affect the valuation, as Measured has much more certainty on what is there compared to Indicated which has more certainty compared to Inferred - as more drilling is required to justify each category going upwards. The JORC compliant person determines if enough drilling and geological data is available to categorise the reserve.
Much quicker and less expensive to get to Inferred as less drilling is required. More time and drilling cost moving up the levels. Copper price high now - so choice is strike while iron is hot - could drill more and take longer to increase valuation, but price could go down or up. Anyway - good bit of drilling and results still to come to make the 2mt Inferred.
Anglo Buy-back option
Under the terms the Bushranger Acquisition agreement, if a deposit of greater than 2 million tons of contained Cu equivalent (e.g. 450Mt @ 0.45% Cu equivalent) is ultimately identified, Anglo may buy-back 80% of the Racecourse deposit at fair market value as determined by an Independent Expert in accordance with the JORC and Valmin Code. Anglo and ProspectOre would then provide funding pro-rata to their interests, save that ProspectOre may decide not to provide its share of funding and be diluted, ultimately retaining a 0.75% net smelter royalty (NSR). If a "Decision to Mine" is taken by ProspectOre prior to the identification of 2 million tons of contained Cu equivalent, Anglo also have an opportunity to exercise the buy-back. Anglo have a once-only opportunity to exercise the 80% buy-back whether the opportunity comes through the discovery of 2 million tons of contained Cu equivalent or a decision to mine.
If Anglo does not exercise the buy-back and ProspectOre ultimately develops a mine, ProspectOre would hold a 100% project interest, less 3.5% in NSR royalties and a A$7.5 million development payment to historic holders (which includes Anglo).
Future Sale of Anglo Tenements
In the event that within three years of completion of the acquisition of the Anglo Exploration Tenements, ProspectOre sells the Anglo Tenements, ProspectOre must notify Anglo of the sale and if the sale value is more than A$100,000, an additional payment is due to Anglo equal to 50% of the sale value in excess of A$100,000. If the sale value is less than or equal to A$100,000 no further payment is due to Anglo.
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