View profile

ASX just the tip - another low risk value play

So far it's been all lithium, that been profitable, but lets step outside of that circle just a littl

ASX just the tip

October 16 · Issue #8 · View online
ASX just the tip -Companies I am buying and my reasons for doing so.

So far it’s been all lithium, that been profitable, but lets step outside of that circle just a little for this next play.

Todays tip is CLA
CLA is a copper/cobalt explorer currently drilling out their madien JORC resource, when it comes to cobalt deposits there are a few choices on the asx, but I think few understand that with cobalt deposits we have two ore types
Nickel laterites and Nickel/Copper sulphides.
The nickel laterites that see in many of the large Australian projects they are mineralogically complex and tend to be lower in grade making it harder to develop and process them economically.
Obviously it can be done, but the AISC is going to be higher and the capex requirements also seem to be very very large.
Nickel/copper suplide deposits why are they not being explored for in Australlia? well simply because near the surface there are no sulphide cobalt deposits left.
So where do we find these mineralogically attractive deposits?? In Australia?nope Canada? nope DRC? yepppp.
So now we see the problem we have large complex projects high capex high cost projects in Australia or low capex low cost projects in the DRC.
What I liked about CLA is it’s the combination we have been looking for they are a copper sulphide deposit in Namibia, so not only do we have a rare opportunity for a copper sulphide deposit outside of the DRC, we have the highest grade opportunity outside of the DRC.
Are there any other explorers out there looking for the same thing? 
Yes indeed we have our friends at EUC looking for massive cobalt with nickel sulpides, we have seen their share price go from 3 cents into the 20’s very quickly on just sampling results, very bullish for us.
This is the picture that tells the story for me though.
When we are talking cobalt sulphide exposure CLA is the place to be we have grade and size covered, the two most important things.
Now keep in mind that bubble is the exploration target for just 15 km out of a potential 100 km of strike that bubble could be 6 times larger when it’s all said and done
So that’s the opportunity a large scale exposure to the best kind of cobalt deposit available in a non-DRC jurisdiction, NZC is probably best looking to reach production over all jurisdictions.
Now it’s a great looking opportunity, but to make money that is not enough we need market moving news flow do we have that? hell yes we do, so whats the news flow like?
It looks fantastic 5 drill rigs on site drilling right now first assays are due in November and it’s all funded wonderful, JORC in January there it is big near term news flow in the pipeline.
The way I see this playing out is pretty simple buy today hold through drilling till the JORC release in January at that point we can either sell at or assess the development options with the possibility of continued holding.
I bought last Friday or Thursday 5.6 and I bought some just today for 6.1 cents, this isn’t my usual absolute bottom buy I know, but can’t always get that absolute bottom I held off on MUS at 6 cents for a trade because I wanted the absolute bottom in the 5 cent range, that mistake is still stinging, in a hot market like this heading into end of year trade the trade.

Cheers T54
Did you enjoy this issue?
If you don't want these updates anymore, please unsubscribe here.
If you were forwarded this newsletter and you like it, you can subscribe here.
Powered by Revue