Xtract Resources Share Discussion Threads

[papillon] 11/1/2022 09:41

Well the share price is holding up well, despite the recent lack of relevant RNS's and some increasingly impatient holders. A good sign, IMO.

[the count of monte_cristo] 11/1/2022 09:22

Thnaks Diddymen, your thoughts have been on my mind and made me think about a few things in greater detail, which is why I thought I would share my thoughts today having thought about things for some days. I was thinking the same about Footrot, my conclusion was the following;

1) That Ascot is much larger than Footrot, and hence more important
2) That it is close to Racecourse and thus economically more appealing
3) That they are drilling in and around that area now, stepping out all the way to Footrot will come later
4) They would need to apply for permits to drill at Footrot with the local gov, whereas it's already mostly done for the Ascot area (I think)

Slide 6 shows the prospects, potentially a number of prospects between Racecourse and Footrot, which potentially IP could de-risk somewhat.

[the diddymen] 11/1/2022 08:53

CMC, I do not see too much blue water between your view and CB. My instinct is that CB wants to put a bit of urgency into the process. As ever timing is a key element to achieve the best outcome.

The location of the drills after 38 will indicate the immediate strategy.

The one area that the language of CB has mystified me is Footrot. Initially this was the next target. The target was shown up by the resistivity modelling, but since the 'drone was flown' attention has moved to Ascot and now hole 37. A little more clarity would be helpful to understand the current priorities.

[the count of monte_cristo] 11/1/2022 08:05

"The best place to find a mine is where there is one already". We can change the word "mine" to "deposit" in the case of Racecourse (XTR) and Rosemont (HUD). Some speculation here, but I am 100% sure that if Augusta Resources had found the Copper World project while they were discovering and proving up Rosemont that when Hudbay came in with the offer that they would have commanded a higher price, perhaps 25% to 50% more than what Hudbay offered, which was 555m CAN$. This is my point about what we are doing, we need to uncover as much as possible, that doesn't mean we have to drill it all out, just prove the picture in order to attain the maximum value possible when it comes to selling the asset.

What we don't want to do, is read about how AA has uncovered a significantly greater deposit, akin to Cadia-Ridgeway and worth billions 12-18 months down the line. It's a fine line that CB and the exploration team will be walking between what they realistically can discover/uncover before we hit those talks with AA. But for sure any news on discovering more porphyries and resources is undoubtedly a strongly positive thing for the company and its shareholders. When the market, which isn't always attune to such finer details, understand this then we will see reactions to the share price accordingly.

[the count of monte_cristo] 11/1/2022 06:41

We have been talking about Hudbays Rosemont copper project here as a nice comparison to Bushranger, if you recall Hudbay bought it for 550m CAN$ around 10 years ago. Interesting to see how it is now developing and how much people are willing to pay for a tiny NSR. Read the link in full to see the size of the resources ext. Now, using our imagination we can only speculate at what price Hudbay would have been willing to pay 10 years ago if they were buying Rosemont and now the newly discovered adjacent Copper World project!!



Once in production, Rosemont has the potential to be the third largest copper mine in the US.(4) The 2017 feasibility study for Rosemont contemplated an initial 19-year mine life with average annual copper production of 127kt at a cash cost of $1.14/lb Cu for the first 10 years.

There are considerable possible synergies between Rosemont and the adjacent Copper World project, including the potential for a mining operation, located primarily on private land, processing ore from both projects.

Alex Tsukernik, Nova’s President and CEO, commented, “We are excited to be adding another high-quality, long-life royalty to Nova’s portfolio of generational assets. Copper World and Rosemont represent one of the largest and most strategic copper districts in the United States, with Hudbay recently reporting an initial mineral resource at Copper World of over 400 million tonnes. We are also encouraged to see Hudbay, a top-tier operator, advance and prioritize this project as a near-term production opportunity.”

[the count of monte_cristo] 11/1/2022 05:28

Be a great time to be working in these assay labs right now, those lab guys are probably earning 100k a year with OT:))

Look, anything they do now which either de-risks the entire Bushranger license or adds potential or further increases the number of porphyries and extent of the size and scale of the project is going to add value, potentially a lot of value. If for example they prove a third porphyry, in addition to Racecourse, Ascot and Footrot (I guess that would actually be a fourth) they don't actually need to drill it like they have done with Racecourse. All they would need to do is prove it with the IP and also put a drill or a few exploratory drills into it to further prove up the IP results.

They can then say to AA, look, we have used the IP successfully to prove up and successfully drill two drilling phases at Racecourse, it works and we now have an excellent understanding of the geology. Therefore, we believe that with further exploration work you will prove up XXX resources which can then be added to Racecourse and Ascot. If they find a third porphyry they can/could drill it with the money left over from the current drilling phases, although one may suspect they will also be allocating funds to prove up Ascot as well. So it really is all to play for, the more they find the better, the BIGGER the better and the more leverage CB will have when it comes to selling this for 300-500m USD. One would suspect it may very well be sold for more than that.

Listening to that Sunday Roast, one of the guys was saying how after having interviewed CB a few times he now really feels the motivation of CB to show that he can sell Bushranger for BIG money. To show that he can do it and this is the driving force and target, to show that he can do it again and the last time was not some lucky strike in Africa where he sold Kiwara for 280m USD. In mining it is very rare to find geologists or mind finders who can do this. it's actually exceptional to find serial mind finders who find large deposits which go on to become significant long life and globally important mines. The more well read about mining history you are the better you will understand this. Most professional geologists will never find a commercial mine in their careers, they are exceptionally rare and very valuable. When you read on other stocks posters bandying around terms like "this will be another tier 1 and we will have 4 tier ones" they actually don't understand what a tier 1 copper mine is, in 90% of the cases.

In a recent YouTube video (listen from around 44mins) interview Rick Rule was asked what he likes most and his reply was "very large long life copper mines as they are truly a sight to behold and are basically huge money makers for the owners. I love large copper mines. The money a big copper mine is truly a thing of beauty". Hence why the majors have them at the top of their wish list, so to find one in Australia right under the noses of all the majors and in the back garden of Sydney is something quite spectacular. This may all sound ultra bullish, but wait and see what starts to happen here as we move forward with the news flow.

[jlondon] 10/1/2022 20:33

NORTHERN ZONE, WA, AUSTRALIA
The last RNS were drilling results from above.
The CEO said that from HISTORIC drilling and the few holds their co just drilled, the geo's have an exploration TARGET of 3 MOZ ie 200-400mt @0.4-0.6 g/t gold given the AREA SIZE. The target was higher but the CEO gave the lowest estimate from the range.

So, MODELLING can always be done even though the results were much higher for g/t au.
This is a more surface prospect.

As for XTR, Colin Bird said 400-600mt and for grades TBD ie to be determined.

Of course, all co's do XRF as AA did on Footrot ie to re-check the previous co's readings. However, they cannot be RNSed.

Lots of assays are behind time and on one Hotcopper site, one poster said he was waiting for 4 months. I recall even for GGP, the results took loads of time.

However, on the other side people are going to darkish mood?

Maybe, maybe not.

However, suffice to say, EXPLORATION TARGETS are norm 101.

I remember Solgold's exploration target for Alpala -really good.

[arcadian] 10/1/2022 17:37

Right now we need appetizers so I`m with The Count in his advocacy of Footrot.

[onedayrodders] 10/1/2022 16:46

Interesting long term research video on the rush for electrification and it's impact on the relevant Commodities ...

[avsome1968] 10/1/2022 10:19

Invested in a few copper plays like to spread it around not just one play nothing is a certainty including XTR.

hxxps://investingnews.com/daily/resource-investing/base-metals-investing/copper-investing/peak-copper/

[denjon] 09/1/2022 18:33

Thanks for the link. I really liked the chat and very positive tone of the discussion.

[jjb71uk] 09/1/2022 15:59

About 13 mins in for xtr chat

hxxps://audioboom.com/posts/8009539-the-sunday-roast-12-stocks-of-2022-and-beyond

[papillon] 09/1/2022 15:30

Yes, TCofMC, Bushranger being in Australia is a massive plus for XTR. Being based in Canada is also a big plus for PUR.

[the count of monte_cristo] 09/1/2022 14:55

As explained above I am not interested in ARCM. Why bother with a company which is in a legal battle which they may or may not win and could go on for longer than people expect. The market hates uncertainty. When you can buy XTR which has an outstanding copper project in Australia, I would much rather focus on winners.

[papillon] 09/1/2022 14:31

O/T avsome1968 and TCofMC. I'm wary of ARCM. There seems to be a battle being waged on the bb's (especially the lse one) between associates of the ARCM BoD and their (political?) opponents, anonymously. Maybe by very, very, close associates, if you get my drift. Talk of court cases and the possible outcomes. I have painful memories of losing £4k on OXS back in 2015 after having a punt on them winning their litigation against Uzbekistan. They lost!

[the count of monte_cristo] 09/1/2022 12:58

OT

avsome19687 Jan '22 - 16:10 - 4392

"I bought a good chunk in ARCM 2.4p range...its at 66% discount from recent highs".

I don't own any ARCM, but just want to reply to this because it's something that all investors should be aware of. For ARCM to go back up to its Oct 21 highs of 4p the stock almost needs to double from it's current valuation and for it to reach the highs of last year of just over 8p it now needs to increase almost 250%.

I am using the same logic across the hugely bombed out gold stocks. When POG runs, which it will eventually do in the next year or so, these stocks will have a tremendous run.

[the diddymen] 09/1/2022 11:06

Paps, like British Rail snow it needs to be the right kind of news!

What is clear is that the existing shareholder base is very comfortable with the RNSs. Phase 2 RNSs have substantially supported what was previously speculated.

The short term problem for XTR is that there appear to be willing sellers who we speculate are substantively the 100m Projectore shareholders who received shares at 1.25p/share. 5.5p, whatever, is a decent gain and it is understandable why they cash out.

Those Projectore shareholders induce an element of uncertainty to new shareholders, and therein lies the problem.

The right kind of news is the news that convinces what is left of those Projectore shareholders to retain their shares. Two porphyries has not done it. Maybe scoping of the second will, or a third porphyry, or, evaluation of an updated conceptual pit with ore body size, contained copper and an NPV.

This is a dilemma for CB. He needs to be selling the concept to new institutional shareholders to firm up the share price - there is too much dissymmetry between the market cap and the potential underlying asset value. There should be enough evidence for the more flexible institutional investors.

It always seems to take longer than you think on AIM!

[avsome1968] 09/1/2022 07:30

Papillion

If no news comes out this week could see it drop back to 5p range to fill gap in chart around 5p perfect for a top up.

[papillon] 09/1/2022 00:14

The XTR share price needs a good news RNS and soon.
I'm hoping we hear more news on the gold front as well as on copper as I'm bullish on gold (as well as copper). After all the nearby Cadia-Ridgeway deposit, with which Bushranger is often compared, is described as a gold and copper mine.



I read this article today. It's long, but we'll worth reading. I especially liked the "all hat and no cattle" saying 😂


PS I'm biased on gold because I've recently bought back into GPM. I did very well out of it in 2020, but it was a poor performer during the latter part of 2020 and most of 2021 because it's a geared play on the gold price, which has been in a long corrective phase.
On Wednesday I had a speculative punt on PUR. I know TCofMC has also recently taken a shine to PUR.

[the diddymen] 08/1/2022 20:58

On LSE a poster questioned whether a buy out of XTR might be an option. That is an interesting one because the AA option sits in Projectore, a wholely owned subsidiary of XTR.

The agreement between XTR and AA is contractual, but if a third party made a bid for XTR, the implied bid for Projectore would be the bid value less the value of the non-projectore parts.

Effectively the purchaser would establish a price for Projectore, and just a punt, but if AA's offer did not exceed that value then I suspect that they would get little sympathy from a court.

I suspect that the mining giants have some 'code of conduct' but might be scope for an upstart to put the cat amongst the pigeons.

Idle speculation only and I will not be buying any popcorn yet.

[papillon] 08/1/2022 15:54

andymunchkin. Could you try posting in the English language as I cannot understand Double Dutch. 🤣

[backtothesoil] 08/1/2022 15:12

Tis hedin back too skoole fore spelinn lesons

[papillon] 07/1/2022 19:25

07-Jan-22 16:18:43 5.5199 166,388 Unknown* 9,184 O
07-Jan-22 16:17:04 5.4758 150,000 Unknown* 8,214 O
06-Jan-22 11:46:34 5.80 680,000 Unknown* 39.44k O
06-Jan-22 14:19:11 5.675 500,000 Unknown* 28.38k O
07-Jan-22 15:32:33 5.48 150,000 Unknown* 8,220 O

Some large delayed reported trades only announced after the market closed @ 4:30pm today. All considered "unknowns" by the lse web site. However they can be deduced as probable buys, or sells, by the times they were completed.
The 2 largest of these trades were from yesterday!! The biggest, for 680k was priced at 5.8p (£39.44k). To me that looks to be a buy, whereas the next largest, also from yesterday, for 500k, looks to be a sell.

PS ARCM share price closed up today, avsome1968. Hopefully you will soon be in profit, though I have my doubts.
Both XTR & PXC were down over 5% @ the close.