This company is developing a billion tonne copper-molybdenum resource in PNG. Drilling into this large deposit reveals that the project has a typical grade of around 0.5% copper equivalent over large widths. These are supported by higher grade material of 0.9-1.3%Cu equivalent over several widths of 2070m. I do have a concern with this project – that is the absence of gold and the lack of homogeneity in the ore grades. Based on drilling results there seems to be a significant depth to the overburden of anywhere between 20-130 metres. For this reason I would be inclined to sell this stock, notwithstanding the potential for neighbouring deposits to offer support in the long term.
----------------------------------------------Andrew Sheldon www.sheldonthinks.com
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