🧡28 significant #discovery announcements on #ASX this year so far.

Will Santa bring us more discoveries this year?

How many will turn significant over time?
2/5 If you wondering, we had no "significant discovery" announencements since the beginning of October.
3/5 How many of the announced discoveries will turn out to be really significant? We can already see from below graph that market thinks that most of the discovery announcements this year were minor discoveries.
4/5 $TEM and $CBE eneded up as some of the biggest pumps of the year, even when the core images and XRF were not so promising. Both companies share prices crashed after the assays arrived.

$GAL and $CNB had significant run up and are maintaining market cap above 100 mAUD.
5/5 $DRE was another runner, with more gradual share price increase and currently has the largest market cap of 228 mAUD vs $GAL 158 mAUD and $CNB 115 mAUD.

Do you think we will see any of this companies go over 1bln MC mark on the back of the discoveries made?

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More from @equivestinvest

Dec 15
Over the past years, I have read 100s of exploration news releases (NRs).

How to read them efficiently?

Breaking down my technique πŸ§΅πŸ‘‡
Tip #1: Headline - important or not?

I will only read NR if:

β€’ New discovery confirmed
β€’ Significant assay
β€’ New resource or bid
β€’ Company on my watchlist

This simple techniques allows you to only focus on most important news and filter the noise.
Tip #2: Scan through the highlights.

β€’ Does it still look positive?
β€’ Look for thick, high grade intervals or large step outs
β€’ Red flag: up to X% Cu
β€’ Red flag: grab/chip samples i.e. discovery not confirmed vertically

Quick note: Read only the first page!
Read 9 tweets
Dec 13
1/x Commonly asked question. What is a significant #mining #discovery? 🧡

In our book it is upper Tier 2, Tier 1 discovery.

Okay, how do these tiers actually work?
2/x
Tier 1 deposits have NPV greater than 1 Bln USD. Typical discount rate used is 8% i.e. NPV8

They are rare to find! See the graph below from BHP showing frequency distribution of copper discoveries between 1985-2003.
3/x
Tier 2 deposits have NPV of 200-1000 Mln USD.

They are also considered significant by many definitions.
Read 6 tweets
Nov 23
🧡#Uranium deposits in the #Athabasca basin have some of the smallest lateral foot print from all commodities. This is due to a high grade nature.

UEX has some brilliant visuals of Shea Creek deposits that we can learn from. Image
2/x Kianna and Anne deposits of "Shea Creek discovery" are the most interesting. These are 250-500 m long and c. 40-100 m wide. The high grade part is even smaller!

Kianna has 34 mln lbs @ 1.5% U3O8
Anne 24 mln lbs @ 2% U3O8 ImageImage
3/x Nice resources for such small uranium deposit footprint. What makes these deposits a bit challenging is the depth of 700m.
Read 6 tweets
Oct 21
1/x🧡
Most of remaining global #copper "yet to find" resources are estimated to be in sedimentary copper deposits.

Major sedimentary copper deposits occur on 170km lithosphere thickness boundaryπŸŒŽπŸ‘€

Nature likes order πŸ“

Why does it happen?

How can you use it as an investor? Image
2/x
Below paper summarised for non geos πŸ‘‡

I read it so you do not have to. Image
3/x Before we dive in, you need to know what is "lithosphere" .

Part of crust and upper mantle - the harder outer shell of planet earth.

Thickness can vary from few kms to 400km depending on the place on earth. Image
Read 11 tweets
Oct 21
1/x Looks like everyone is starting to catch up on nickel laterite HPAL Indonesian projects impact on #nickel market.

Detailed thread below - been flagging since Q1.

Bye, bye πŸ‘‹ low grade nickel sulphides. If you hold one of those I would seriously rethink.
2/x Does it mean nickel sulphide discoveries are worthless? πŸ€”

No! Large, tonnage and high grade nickel sulphides projects have superior economics and will produce profits at lower nickel prices.

They are also rare to discover and are acquired quickly at 1bln+ usd valuations.
3/x
Nova discovery by Sirius made during bottom of commodity cycle. Went from 5c to 50c in few months. Acquired for 1.8 bln AUD.

ft.com/content/cc8c55… Image
Read 5 tweets
Aug 7
1/x What makes quality #mining deposit❓

Summary of Mines vs Mineralisation research paper.

Four key elements that need to work together:
1. Social Licence
2. Geological Factors
3. Financial engineering
4. Operating factors

Geology underpins linkages between the elements.
2/x For mineral deposit to be economic it must able to meet challenges related to high energy costs or even social license to operate.

i.e. Significant size and grade in a stable geographic location are important.
3/x As an investor it is really important to define what such project looks like in terms of dimensions, grade, depth, location etc.

It will help you to pick right companies to invest!

This is also critical for management teams and geos...define what you are looking for πŸ™
Read 7 tweets

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