RE:Beta Hunt is very strategic for RNX shareholdersMerci Pierre.
A comprehensive report on RNX. I have read the Darp research report before, but still learn a few things re-reading it. A few take-away points.
- FDV, the living room 3m x 3m x 7m = ~60m3, should not be considered as a one-off event. It's found in one of the 4 shear zones which has a total length of several km. The chance to have another hit is quite good.
- They have not done collecting the specimens and coarse gold around the FDV. There is no rush, just keep them in reserve as gravy, when you need it. Remember that they have found a good high-grade pocket 7m below the living room. The FDV is in the A-Zone.
- It looks like the have discovered another high-grade zone in the WF, a new zone. Hole WFN-029 and WFN-063 (just a few m away). Just wait until RNX reveals that the tunnelling from the nearby (45m away) hit another living room. It should not take that long to chew through 45m (7 days, or say 2 weeks to give the crew some rest in between?)
- Drill results show grade and witdth increase with depth. They are making some money with grade just above 2gpt. Imagine the additional pure profit if they mined ore with grades in the range of 4,5, 6, 7 gpt?
Darp Report is a must-read.
GH11
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pierreG01599501 wrote: Insightful post by Darp Research AKA @Geodan on Seeking Alpha March 8th 2019, about why Beta Hunt is very strategic for RNX shareholders:
«Hi gast77 On RNC the resource officially is small as from 2017, before the bonanza hits. If you watch this video which is just 2 days old https://www.youtube.com/watch?v=HHAJUGA8Rck+ they are waiting till after 2Q to report resources, that is so that they can count all the drilling going on now. It could be over a million oz by then, but no real way to tell.
This article mentions the lack of problems that RNC has https://seekingalpha.com/article/4214970-rnc-minerals-short-situation-indicates-short-squeeze-can-happen?v=1549043915&comments=show
Key part on that issue:
"Next let's explore the common problems that mining stocks have. How many of these issues does Beta Hunt have?
1. No recovery issues.
2. No locals roadblocking the mine.
3. No water issues.
4. No permitting issues.
5. Safe jurisdiction.
6. Rule of law.
7. No investment needed.
8. No convertible debt.
9. Trained workforce.
10. Safe rock conditions.
11. No strikes, labor violence.
It is hard to think of a single problem the company has at Beta. The biggest gold mine in the world is Grasberg, and it's got half those issues above. The average South African mine has many of those issues and unsafe rock conditions."
RNC was able to mine sub 3 gram ore at a profit before the new geologic model was discovered. They also paid off all debt with a living room sized blast that produced tens of $millions in gold in Sept so the interest expense is now gone.
The mine is exceptionally low cost to mine because of 50 year investment by others to do large scale nickel mining. It's a ramp system and basalt is easy to mine in, stable and easy to blast.
Maybe the biggest takeaway is that the vein width and grade is increasing with depth in last report.
"New results from Western Flanks drilling confirms broad zones of mineralization, and significant gold intersections outside and to the north of the existing resource. Key intersections (estimated true width):
WFN-065 – 3.07 g/t over 39.13 m (including 5.24 g/t over 7.05 m and 4.49 g/t over 10.09 m)
WFN-058 – 3.13 g/t over 16.86 m (including 11.66 g/t over 2.67 m) and 3.03 g/t over 18.89 m (including 4.75 g/t over 4.61 m)
WFN-045 – 4.17 g/t over 19.14 m (including 8.92 g/t over 3.58 m) and 4.63 g/t over 7.61 m
Improving grades and thicknesses in A Zone. Key intersections (estimated true width):
AZ13-156 – 6.02 g/t over 6.20 m (separate from high grade sediment intersection reported above)
AZ15- 034 – 7.84 g/t over 5.63 m including 66.90 g/t over 0.38 m"
https://www.rncminerals.com/2019-02-25-RNC-Minerals-Announces-Beta-Hunt-Drilling-Update-2nd-High-Grade-Gold-Intersection-at-Western-Flanks
They have found an entirely new bonanza grade deposit in a different shear zone "Second high-grade intersection at Western Flanks – 395.9 g/t over 4.75 m (including 2,210 g/t over 0.85 m) in hole WFN-063 (hole located 8 metres from previously released hole WFN-029 containing 7,621 g/t over 0.22 m) "
The 1st bonanza grade strike in Sept was superior to the bonanza strike that created the Comstock Lode fortunes of Hearst and others as documented here: https://seekingalpha.com/instablog/535947-darp-research/5223505-rnc-minerals-geologic-investment-case-post-beta-hunt-bonanza-get-20-plus-baggers
RNC is a dig deep type of stock. The lack of problems is not evident unless you dig deep. The extremely profitable 3Q is hidden and shown as a loss by stupid SEC rules just because the stock went way up in Sept. The huge increase in resources is hidden because not reported yet. If you look deeply at it think you will like what you see.
Cheers»