Matrix Metals Update

I have not posted on HotCopper since the difficulties began some weeks ago, but now that things appear to have settled down, I thought I might put something up on MRX for those interested.

At the time of my last post Matrix had just released results from drilling at Mt Watson, which confirmed the continuation of resource grade mineralisation at depth and, most importantly, laterally. The drilling confirmed that all the existing resource areas, and now a new southern area, are open effectively in all directions.

Somewhat surprisingly given those results (not to mention the subsequent spectacular rally by GIR on news of its drilling) the share price of Matrix has been drifting back, presumably the result of an absence of fresh news combined with the logic of ‘buy on rumour, sell on fact’.

There may, too, have been a general failure to grasp just how good the Mt Watson results were. Oxide copper resources are, by their very definition, relatively shallow - it is the lateral extent of the copper mineralisation that is the real story. Pointing as these results do to extensions to a broad, as yet open-ended, at-or-near surface orebody, sited within comfortable trucking distance of existing operations, the excitement within the Company (whatever the punter’s reaction) was, IS, palpable.

The difficulty lies in trying to convey that warranted excitement to others. Perhaps Matrix will have its chance at the end of the month when CEO Andrew Chapman will be presenting a talk on Mt Watson at the Mining & Exploration Investment Conference to be held in Fremantle. He has also been invited to present at the Exploration Hotshots Conference in Sydney in the first week of May.

Meanwhile, there is still plenty going on: The numbers are presently being crunched which will lead to Mt Watson being re-estimated, with a majority of the resource to be elevated to the “Measured” category. The feasibility study to extend production at Mt Cuthbert is well underway. And, on the production front, commencing in May and continuing through into Sept/Oct, a campaign stacking production run will proceed which is expected to see production rise back up towards maximum levels during the June/July period.

All in all an exciting period in the Company’s development.