"WAF a 2Moz target compared to VEC 3.2Moz JORC and 25Moz target. Fair to say both will be funded to production."
While we are trying to keep this real, let's dissect this statement a bit.
WAF's 2Moz target is an ore reserve target. VEC's 25Moz target is a top end aspirational "Exploration Target" with very limited value until vast amounts of drilling/$ have been expended.
Also 1.7Mozs or 53% of VEC's 3.2Moz mineral resource is in the inferred catagory with about 1.478Moz of that inferred resource being in an UG category where room and pillar UG mining parameters (on a very flat lying orebody with widths between 2m and 10m) have been applied.
Unless the pillars can be successfully "safely" mined with a retreat method after a mining area is completed a lot of ore needs to remain in the ground using this mining method so you do need high UG grades to compensate for this form of ore loss.
"The key to successful room and pillar mining is in the selection of the optimum pillar size. In general practice, the size of both room and pillars are kept almost equal, while in Bord & Pillar, pillar size is much larger than bord (gallery). If the pillars are too small the mine will collapse, but if they are too large, significant quantities of valuable material will be left behind, reducing the profitabilty of the mine. The percentage of material mined varies depending on many factors, including the material mined, height of the pillar, and roof conditions; typical values are: stone and aggregates 75 percent, coal 60 percent, and potash 50 percent."
I wasn't able to find any real information on the depth or drill spacing as a function of depth relating to the UG inferred resource at Adidi-Kanga but one would assume there are yet significant amounts of money required to convert the inferred and current resources to a level where reserves can be estimated and a DFS can be done. Any estimates on the dollars involved? $10 million? $20 million? $30 million.......take your pick....and that is well before we can get into any sort of discussion about mine funding. I'll have a serious discussion with you about VEC's mine funding after I see a DFS.
Given that VEC has A$5.9 million in net debt according to the above graphic, the immediate catalysts for VEC appear to be dilution. But as is always the case with aspirational penny dreadful exploration companies the promoters will overlook the realities and start selling the spin, like the 25Moz exploration targets. Where are they going to get the money from to properly assess, drill and work up these exploration targets when they will need vast amounts of money just to get their existing resource to a stage where mine funding can even start to be considered?
The next step in the VEC spin cycle will be to take some of their ever depleting cash reserves and mobilise a drill rig and place it on a known hot spot on their existing resource or one of their exploration targets and voilà an instant piece of news flow to try and pump the share price up........and guess what it will probably even work and the share price might double and attract more starry eyed punters that have no clue of the underlying reality that the published results are only a few (well placed) holes on a very very long road to the reality of a mine which is most likely never going to happen. As more punters are sucked in by the hype the pump and dump story might well unfold for VEC as it has done on countless other similar stocks and it will unwind just like in that video you posted.
That sort of story might be of interest to some but not to me. Good luck with it though. Timing of entry and exit are the most important things so keep in mind so one would need to not move far away from the sell button. Keep ramping and keep hovering over that sell button and you'll have a decent chance of success. Esh
WAF Price at posting:
28.5¢ Sentiment: Hold Disclosure: Held
(20min delay)
