Xtract Resources Share Discussion Threads

[divmad] 09/10/2021 14:08

Yes, I have in my mind a carbon copy repeat of Newcrest's farm in deal with GGP. It was that financing arrangement back in 2019 that propelled the drilling and development of Haveiron at real pace, and the ten bagging of the shares even after the first stupendous drill results.

[papillon] 09/10/2021 13:18

I wonder if the XTR share price will replicate the 2020 rise of GGP during the next 12 months, or so? I believe the copper price is due to start another leg up in price after the current consolidation period following the high of May this year. That, along with the likely continued flow of an ever expanding huge XTR copper resource in Australia, could easily propel XTR to a £500m Market Cap within the next 12 months, or so. Fingers crossed!

[lurker5] 09/10/2021 13:08

LR27 Very roughly one might put a % on the 'in-ground' value (of the 'resource') But that's incredibly elastic - depending principally whether the market is convinced someone has or can raise the funds to develop, and what the outlook is for copper at that point. In the past, easy to mine 'deposits' have attracted up to 3-4% of that 'in-ground'value. But a potential bidder will want far more detail (including the mineable 'reserve') and would pay a lot more if there is a feasibility study showing capital cost and profitability. But remember it makes no sense for him to pay anything like an NPV. At base, it will depend on the likely competition to buy,which in turn depends on whether buyers have other projjects in their sights. That applies to AA, who might not have the funds for Bushranger if he's spending elsewhere on somehing looks better to him. But you can say that the more XTR spends on drilling and feasibility studies, the better the price it can expect. But Tbh I don't expect an outright sale. More likely a jv farm-in.

[denjon] 09/10/2021 12:59

Someone on this BB calculated that if the company was sold for 200m sterling then shares would be 25p. Now however the sale price is likely to be double that or even from 500 to one billion. Hope this helps but the sale price depends on future proven drilling results. I'm sure someone will come up with a more precise estimate.

[lr27] 09/10/2021 12:11

So if we achieve 2 million tonnes of CU-equivalent, what value does this generate? Does anybody out there have the expertise to put a rough estimate on where the share price would go? Need to start managing expectations/at what share price to exit at etc - thanks

[mirabeau] 09/10/2021 11:50

Why would XTR officially state that they intend to 'drill out' an IMR in 'excess of 2 million tonnes of CU-equivalent if they believed that this was unfeasible and the evidence to date and no doubt evidence not yet revealed did not justify such a statement? I suspect Bird now knows this is in the bag as it seems does Iceberg, who it seems has become the go to interpreter for XTR's published news

Moreover, Bird has elevated market expectations that they will indeed report an IMR of AT LEAST (minimum) 2m tonnes CU-equivalent. He wouldn't bake-in such investor expectations if he thought that wasn't possible

imho

[denjon] 09/10/2021 10:40

Divmad
The plan is to drill out IN EXCESS of 2 million tons of contained copper equivalwnt.
Looks as though that will be comfortably exceeded according to recent drilling results.


The IP survey has generated several quality drill targets. More detailed modelling and interpretation of the IP data will now be undertaken. Xtract’s objective is to complete this modelling speedily in order to allow drill holes to be defined for the Phase 2 drill programme to be undertaken at Racecourse. Subject to government approvals it is planned to commence the Phase 2 drill programme early in the 3rd Quarter of 2021 with the objective of drilling out an Inferred Mineral Resource in excess of 2 million tonnes of contained copper equivalent.

Xtract Resources plc
17 May 2021
RNS
hxxps://xtractresources.com/investors/rns/ip-survey-initial-results-at-racecourse-prospect/

[the count of monte_cristo] 09/10/2021 02:32

Divmad, I have always thought we were sitting on something special since before that first drill hole, you can go back and check my posts. I think we will actually have a larger resource than that 2mt, eventually, why? Look, you have CB saying he thinks that the size of Bushranger is going to continue to get bigger, potentially close to 1bt. They haven't even touched Footrot or any of the other potential targets.

Remember, on the licenses we also have ephemeral targets, these would be small resources but with high grades with generally a higher amount of gold. They discuss this nicely in the first video they did. I don't know whether we will even get to drill these targets though, maybe we won't get the chance.

[jwilde] 08/10/2021 16:48

I rarely post, if ever. I have a modest holding. Today I transferred 10k worth from trading account to isa as a bed and isa transaction. The sale and repurchase went through at around 3:30 at a price very close to each other, and both were registered as sells. One was for 204,102 at 4.9p, and the repurchase of 203,296 at 4.915p, which I was pleasantly surprised by (ii). Thanks to all those posters who regularly post with their insight, research and observations

[divmad] 08/10/2021 16:47

Is there absolutely no doubt in your mind, now, from the data publicly available, that xtr is on track for that 2mt Cu threshold?

[the count of monte_cristo] 08/10/2021 16:26

One of, if not the largest undeveloped copper resources is the giant Pebble Mine in Alaska, facing strong opposition it has stalled for decades. This is a great example of how you can have an absolutely world class deposit but it never gets built, Interestingly had Tech Resources taken over the project and management it back in the early 90's they may have got it off the ground because of how well respected their management were with local communities, that's the opinion from the ex-CEO of Tech. What would you rather have a 500mt .4% copper project in Australia with excellent infrastructure and support to be built or a much larger deposit in Ecuador:)

[the count of monte_cristo] 08/10/2021 16:14

Cinoib - was that back in the early 1980's? Yes we all know that Aus is safer than Zambia, hence why when it comes to it Bushranger will go for a premium. Not many copper deposits over 500mt+ have ever had resources over 1%, those that have are the world class champions, names such as Tesorita, Escondida, El Teniente, Grasberg, OK Tedi (some with a high grade component, 100mt plus 1% cu). But like you say, if you are dealing with the different type of copper deposits (not the large porphyries) than those grades of 1% for say 20-100mt can be achieved, like with Khoemacau/Boseto. This is what GLR are hunting for in Bostawana. It's not trashing a comment when we are discussing large low grade porphyries but peeps are disappointed because we are not getting long intercepts of plus 1% copper. The focus here is on proving up a 500mt copper deposit at 0.4% or so, that alone place it in the world class set of new mines to come on stream this decade, it's enough for a very large sale price.

Also, if we want grade then XTR actually own part of one of the highest grade copper mines in Zambia


•Kalengwa Mine produced in the 1970s and is believed to have been one of the highest grade copper deposits in Zambia

•High grade ore in excess of 26% Cu are reported to have made up approximately 20% of the ore body which was trucked for direct smelting at copper belt mines

Here are some of the highest grade copper mines producing now

[backtothesoil] 08/10/2021 13:35

Most of them were sells. HL have been offering 4.21p for some time.

[denjon] 08/10/2021 13:28

Of the last 20 trades shown on advfn, 19 are buys. Colin was certainly very 'appy during his interview with Zak.

[swanvesta] 08/10/2021 13:05

Cinoib, high grade deposits are fast disappearing, and 0.5% is now pretty average. Gorozen have some good research on this. They say, for example, much of global reserve additions in recent times have been achieved simply through lowered cut-offs (enabled by higher Cu prices.)

[cinoib] 08/10/2021 12:41

Count, when I was in copper 1.5% was the norm, but layers were more like 30-40 mts not 150 which is why I put in my article the bit about the thickness of the layer which will counter balance the %. Someone should read more carefully before trashing a comment.
Steve, thank you. I have done that which is why am still here even though I was over 1/2 down at one point. Also Aus, is a tad safer than Zambia.

[papillon] 08/10/2021 12:35

Looking at the chart and based on the fundamentals my guess is that the early January high will soon be retested.

[papillon] 08/10/2021 12:31

You are a "mine" of information, The Count of Monte_Cristo! Many thanks.

[the count of monte_cristo] 08/10/2021 12:19

The first two links detail the average grade of global copper porphyry mines, note that the grades have been declining for decades. If you want to own a mine which has 1-2% Cu then you will be looking at the small high grade mines, say around 20-80mt mines in Zambia, Botswana and Australia. But if you want the very large mines, which is what the majors are looking for then you want these copper porphyry deposits, which are rare things to discover. To put it into context, Bushranger is turning into a very rare and very valuable project. Look at how many large copper porphyries deposits have been found in the last 5 years, they aren't finding any:)

Have a read of the book (third link) and learn from the worlds best mine finder, the geologist who discovered Escondida, his book will help explain about copper porphyries and how much they were being sold for 30 or more years ago:)



Note this is already 16 years old: hxxps://pubs.usgs.gov/of/2005/1060/of2005-1060.pdf

Intrepid Explorer: The Autobiography of the World's Best Mine Finder Kindle Edition
by J. David Lowell (Author)b

[denjon] 08/10/2021 12:07

Next pack of sellers should be along soon! I think we can handle them. Our time in the sun has come!

[mwainw1973] 08/10/2021 12:03

Hope so had a cheeky top up at 4.75 recently so happy with action today

[the count of monte_cristo] 08/10/2021 12:01

0.5% is actually great for a large copper porphyry

[denjon] 08/10/2021 11:56

Now plus 0.5p. Looking as though a long overdue revaluation might be under way.