Cooper Metals down 50% after diamond drill results around the 71m hole disappoint with no sulphide present
Big lesson here, wait for additional drill results for confirmation and don't just jump on the first drill hit.
Plus the strike was another warning sign.
Only had a small bet but it looks like things aren't looking good and the geology not as straightforward.
Probably going to be the last time I invest in an explorer unless they find a genuine discovery.
No longer held
As mentioned in the previous straw, Cooper Metals announced a copper discovery in Mt Isa sending shares rallying 60% (up 18c from 26c) on Thursday 30 November and making the 7 New Sydney ASX Leaderboard along with leading blue chips names which is highly unusual and maybe accidental.
Initially thought this Brumby Ridge announcement was hype like Carnaby but after reviewing the diagrams there could be something here.
Positives
* Small market cap of $27.39m
* Best intersection 71.8m @2.8% copper at Brumby Ridge to BOH (bottom of hole) from Section 2. Importantly it looks like the announcement shows cross-sections but they did not declare true widths. I will put the diagrams side by side.
From the diagram above it looks like the width is 30-40m (???)
* Debatable whether this is positive or negative, but was featured on the leaderboard on 7News Sydney ASX segment. So a big free kick of publicity for the company.
* Carnaby resources nearby who had already made multiple copper discoveries.
* Located in Mt Isa with good infrastructure
* If Brumby Ridge is really a discovery then this is possibly one of a few recent Copper discoveries in Australia.
Negatives
* Cash of approx $3m which is enough for a few of quarters
* Mt Isa wet season approaching so news will be thin for the next couple of months. Ideally that could be a good time to accumulate. Not sure about newsflow from other projects
* More drilling needs to be done in order to get a good idea of what is in the ground.
* Long section not so encouraging. Looks like the holes are too close. Further down, Hole 025 results look average. Hole 029 did not go very far so perhaps need to be drilled deeper?
Other
* Gooroo Cu-Au Project - WA (near Silver Lake Deflector Mine)
* Other Mt Isa East projects including King Solomon, Yarraman, Raven,
* Yamarna Gold Project - WA (near Gold Road Resources Gruyere Operations)
So overall, a company with a discovery under its belt already but still early days. Also some gold projects but a bit low on cash and fickle North QLD weather could impact newsflow. Long section not that good but cross section looks fine.
Probably like it more at a slightly lower price than 44c but appears some on that other forum think CPM finally has a real chance that Brumby Ridge could be something significant.