OSR, its always hazy using the world wide interweb, but, I think it was a great deal:
From what I can tell they picked up most of the Cigaru zone (Lipi, Lipi West, Pasir Keusik (south?), and peteran simpang). Came in at approx 600oz (off 8m)on drilling in 97-98? ... although I'm also not sure what proportion of this fits within the AUK license. I'd be surprised if it wasn't most or all of it. And AUK woudn't have reported it because it never fit a JORC complient statement.
I was wrong though ... the full resource was valued at $10m - it didn't cost mispec that much. In 1998. On $300 gold prices or thereabouts. Based on 32,000m drilling with some great shallow results ... admittedly narrow and long, like mackeral. But deep and thin like Sunfish. MOST of the major results came from within the Cigaru zone. Most of the Cigaru zone is within the AUK license (excepting the northern peusir keusik??).
Last time I asked there was recognition that the plant was configured for gold mineralisation. But its 'only' 10 years old (which is probably equivalent of 20 in that environment, with little use). They will want to have a larger plant that uses bits and pieces of what exists to (reduce CAPEX) and capitalise the value of the copper and silver (zinc?) as well. Seems some of these results at least spread across the anomalous zones, so a bigger operation might prove up.
From everything I've seen, I don't think they'll drop it, but I understand why you'd query it. Who wants to chase sunfish!! I like fat, farm bred tuna. And holding on until you control income from production does sound sensible if there's faith in the resource. Spend the lot in the last four months if its worth it ...
I woudn't be surprised if an initial JORC resource for Jpang of around 1m comes out in the months following the CR. Just a punt. They were targetting a JORC by late 2010, and are currently doing metallurgical tests to determine the optimal processing plant. Why bother with that if the result don't suggest you should take it forward.
Wgiri more to come and nickel prices set to rise. Might break that old resistence of 0.30 and hit a 0.35 and streak to 0.40 by September if the planets align.
Good fun this one. More mystery than many, which is why I aways wonder why so very few on HC follow it.
Prove me wrong if you find the time to dig up more on em though.
COLCOM
AUK Price at posting:
26.0¢ Sentiment: None Disclosure: Held
