Hi I75,
Only problem was not seeing your message until after meeting. It was a short formal meeting with a Q&A session afterwards. HH sent apologies and Peters Thompson and Langworthy plus Guy LeClezio fielded most of the questions.
DFS/ future Mine Related:
The DFS looks like it will be ready by early August with Diggers and Dealers (perhaps) being a deadline? Didn't ask any more on this timing.
The progress towards mining seems to be unfolding pretty much as planned - my impression was the board seemed confident it was a process that, by its nature, takes time.
Relatively soon, within a month? or even a couple of weeks, a reserve figure will be announced.
PT said he expected a high conversion of indicated to measured within the Bibra $A1750 pit shell with lesser measured figures for the satellite Portrush, Easkey etc resources. (Perhaps Y could clarify this as my understanding of resource/reserve/measured etc is limited)
[As an aside the choice of $1750 pit shell was discussed briefly. PT said it is a choice for a company and at the moment several peers are using the $1750 and considers it appropriate with the current POG. Regis apparently use $A2000.
Regis have not given any formal reason for divesting CMM and are not required to. As known Acorn got some more shares and Jason Shellabear mentioned another major buyer (presumably of the Regis Shares) has less than 5% and doesn't need to disclose. ]
After the DFS (and probably by the end of 2017) the next steps are permitting and project finance. "permitting is pretty straight forward, environmental aspects well under way" rough paraphrasing of PT/GL? comments.
Finance of project - I forget or not discussed.
Ongoing (Q3+) operational finance is likely to come from the $1.3M left over at the end of Q2 17 and potentially from the divestment of Madagascan assets. No mention of cash raisings....
The current thinking is mining will be a very staged process - No details but ?laterite first and working down to where stripping ratios become a more major cost - normal procedure.
A figure of $A900 as an AISC was mentioned but will need DFS etc to be confirmed.
Current $A POG "is OK"....
Tenement applications.
Recent applications provide 'cheap' protection (E52/3474 and 3533) of ownership for what may be extensions of the "greenstone" package while competitor activity is low/nil(?).
As applications the new tenements could take up to two years to be granted. I had the feeling they are not in any rush to explore, which is reasonable given getting a mine running is top priority.
A major consideration for such exploration tenements is the depth of the Bangemal basin cover over the Archaean. Much beyond 50m cover and it becomes cost prohibitive at the moment.
Apparently Gascoyne have had an interest in the claims to the west for many years. Both boards are aware of the potential in the area and may examine some form of agreement down the track - vague passing comment.
E52/1711 has an Aug 17 "expiry" date but there are procedures in place to extend this without converting to a Mining Lease. This requires expenditures from exploration among other things.
The recent tenement applications near Bibra have been mostly for logistical purposes rather than exploration potential - Especially (my comments) E52/3450 which covers access towards Newman; the others may be for borefield or alternate purposes.
Exploration/Geology.
Geological understanding is increasing which could lead to being able to do better target generation under the cover - surficial and Bangemal.
Additional Laterite resources would be very welcome as the mine gets down into the sulphide zones. I suspect such a search is probably part of an exploration strategy going forward.
Also briefly mentioned was the possibility of EIS funding being sought to test to the west of the Bibra deposit where there may be a major feeder system/fault for the mineralisation. Basin cover is not thought to be extreme (<=100m?).
The Southern corridor geology is analogous to that at Bibra which IMO augurs well for southern extensions to mineralisation there. However, Bangemal cover increases in depth to the south....
Early days yet but the Bibra, Francopan, K3 deposits being related is considered a very real possibility.
Hydrology - bore field water TDS 200PPM but high in nitrates. Extremely good quality by comparison to the hyper saline water around Kalgoorlie.
Didn't ask for specific details about upcoming exploration drilling.
Overall feeling steady as she goes heading towards DFS and hopefully mining. Any questions ask or call the company.
GLTAH.
CMM Price at posting:
11.0¢ Sentiment: Buy Disclosure: Held
(20min delay)
