RE:Mark Selby interview with IE Easy going interview from Mike Coyle. A must listen. There are some overlaps with the CRUX interview, but it's worth hearing the questions and answers for a second time. Some key notes and comments:
- Orford: Alamos just invested $2.3M (19.3%) to become #2 largest shareholder after RNX (now 26%) but ahead of Dundee Resources (now 16.8%). Current OS after PP is 76.3Ms. MS considered this as a vote of confidence from AGI (2 nominees on newly-created exploration advisory committee).
- Dumont: The new FS will serve as an up-to-date reference for potential investors to decide on the valuation of Dumont. Roasting technology and improvement in mining technology would offset the macro items such as the dollar exchange and price of Ni (back in 2013 it was above US$8/lb, and in 2007 it was over US$20/lb) The new FS assumed Ni price 6.5-8/lb as projected by analysts, based on the low Ni inventory and high demand from the EV sector. Currently 3 countries (not guaranteed that they are in a politically stable climate in the near future) control more than half of Ni supply.
In my opinion, if Ni price starts to move (and it could/would be dramatic), majors would have a bidding war for Dumont and it's my opinion that RNX would spin off Dumont to maximize shareholders value.
- Reed (closed): But cash flow heped acquisition of BH.
- Flexibility in structuring a deal: It does not have to be 100% own...Less than 100% of one would allow more chips to play with other investments. Sound strategy from MS.
- Westgold deal: Previous deal did not work out, but it provided opportunity to get to know the people for a faster HGO deal.
- Juggling act for Au and Ni: Do what's best for shareholders (including spin-off).
- ASX Listing: On hold, will restart in Q4? Priority is on closing of HGO deal (somebody said closing on 4 June instead of 10 June...Cantor? Anyhow, only 1 week difference).
- Mill capacity: No plan to upgrade the mill beyond 3000tpd for now. Wait for mine plan to be available. Mill would take most of BH production, plus lower grade (soft) ore from Baloo (almost next door to mill) and/or 3rd party toll milling. The harder ore from Mt Henry (85km away from mill) can wait.
- Bonanza grade: MS said anything "material" will be reported upon discovery (like FDV). As an example, 5000oz discovery would be considered as "material".
- Development Ramp: It sounded like RNX did not want to go directly to the 7m below FDV and do airleg blasting. The would prefer a nice and steady approach at the 16 level to come close to the spot (1400gpt) and break in later (May be they already broke in, but did not want to tell yet?..surprise people).
- 40,000m drill program: The first 35000m is essentially wrapped up for the new RE which is expected to increase significantly beyond the old JORC RE.
The last 5000m is not going into the RE. This is to demonstrate the entent of the deposit farther and deeper. They only done 2 targets 150m below the contact (A-zone, and WFN). The other two (Fletcher and East Alpha/ south-east of the Aalpha Island Fault have not been tested...These two targets are deeper (~800m below the surface). May be that's the reason.
- Space from the contact to the boundary of the Sub-lease: MS expects decent grades in these shear zones which could be developed as OP (?) mines. They could perhaps enter in a JV with Gold Fields to extent their pit deeper beyont the current boundary. One pit is Redoubtable (above the East Alpha target, the purple box in RNX diagram) the other is Pistol Club Pit (planned by Goldfields?). Note: there are 4 known shear zones. The other two are on top of the A-zone and WF (don't know if there are any OPs on the surface).
- Old drill cores: Most? of them have not been sent for Au assays (emphasis was on Ni back in the 80s,90s,2000. They drilling-free, it's just a matter of cutting them up (choose the good looking ones with VG) and send them for Au assays. I would look at the old MR Smith area near the HoF area. Perhaps, one of the hole in the 5000m program should be there. A 500m - 800m hole should be sufficient. If the holes start from the surface then 5000m would not give too many 800m holes (5000/800 = 6 holes). But if an underground platform could be used for drilling then they could increase the number to 10 -12 holes?
- Specimens: Golden Rose sold to a collectors (Mikey was crying, at least almost) along with some other small pieces. Not sure if they were sold in China or in London. This would bring in a few C$M.
Again, many thanks for taking the time to produce a comprehensive interview Mikey.
GH11
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Mikeymike426 wrote:
https://insidexploration.com/mike-coyle-interviews-mark-selby-from-rnc-minerals/