MARI - thoughts on Roble, the new large oxide target ...From the same contact. Some good thoughts.
B
------------------------------------------------------------
Hello,
Just in case it was missed, yesterday Marimaca Copper announced an additional, and potentially very significant, new copper oxide target near to their existing Marimaca deposit.
Click here for the full new release.
We already know of the Cindy and Mercedes oxide drill targets. To this we can now add the Roble target. I won't repeat the news release, but it is a big strong geochemical anomaly of 1500m x 500m, multiple oxide rock outcrops at surface, with numerous rockchip samples grading +1% copper (some +2%), and with historical drill data showing intercepts from surface of ore grade material.
I personally think the quality of these drill targets is very high. As previously mentioned I think it is the potential to add additional oxide material that is the most exciting aspect of this exploration program. The PEA on the Marimaca deposit clearly shows the peer-group leading economics of oxide ore in this location
What next: 1. End of this month, the results of the 4 remaining drill holes looking for mineralisation extensions under the MOD.
2. Next couple of weeks, drilling at the Cindy oxide target to commence.
3. Next couple of weeks, drill pad and infrastructure preparation to be completed at the Mercedes oxide target (drilling to commence post Cindy drill program)
4. Within H1, completion of initial drill program at Roble.
Also worth watching: post Goldman Sachs' overly excited copper price forecast work (mapping out a route to $6.80 copper by 2025) it will be interesting to watch how the broking community adjusts their own copper price expectations. They have been slow to do so, but it is starting to happen ... Haywood Securities have just moved their long-term copper price to $4.00. These changes in long-term price assumptions will obviously have a big effect on the perceived value of copper developers. For example - a $4.00 copper price for Marimaca's initial oxide cap gives a post tax NPV8 of C$1.06bln, and an IRR of 46%. Or an NAV of C$12.20 / share. Just on this initial asset.
Summary: more exciting geochem results. Obviously it is the drill results themselves that will provide value, if successful. I'm conscious that I sound continuously very positive ... I'm sure there will inevitably be some negative news at some point ... but so far, the pre-drill work on these numerous high-quality targets is extremely encouraging.