CDT - Castle Minerals

[greggles]

CDT delivers a maiden MRE for their Kambale Graphite Project of 15.6 million tonnes grading 9.0% TGC containing 1.41 million tonnes of graphite.

These figures look conservative and it is likely due to the fact that mineralisation below 100m has been excluded from the MRE, as has mineralisation that has not yet been closed off. Further infill and extensional drilling in the coming months will likely expand these numbers.

This announcement is not likely to move the share price north in a big way today and we may see it go in the other direction if the market thinks these numbers are a disappointment.

The company's next steps:

 

[greggles]

CDT has commenced resource upgrade drilling at Kambale. It will be completed next month with assay results expected in August. Management says they have high expectations of a substantial increase in the MRE, but the way the share price has been going in 2023, they definitely need some good news.

 

[greggles]

CDT share price up around 13% today following news that the company has commenced a geophysical survey at the Kambale Graphite Project in order to locate additional graphite occurrences within the Project area.

 

[greggles]

CDT management trying to polish a turd today by announcing "pegmatite anomalism at Woodcutters" when the max value of lithium found was just 119.9 ppm.

This one looks like it may end of being a big disappointment is spite of the impressive nearology.

Management should focus on Kambale and their Earaheedy tenements IMO.

 

[frugal.rock]

This polished turd has been chosen in the July comp for it's downward dog chart.
Being at 52 week lows means it should go even lower. ?

It's gunna need a good catalyst and only then, hopefully polished turds turn into graphite or lithium.

Not held, and I wouldn't suggest it to anyone.

 

[greggles]

CDT announces more high grade intersections at the Kambale Graphite Project. It all looks good to my layman eyes but I don't expect that it will move the share price much today. The market is not in the mood to get excited about these kind of announcements.

I have come to realise that graphite is a strange mineral. There is no spot or futures market and the demand is largely industrial with it being the largest simple component in lithium ion batteries. Analysts seem to be waiting for a turnaround in graphite's fortunes but it has been slow in coming.

$2.8 million in the bank at the end of June means that they will now have maybe $2.5 million. I hope management have a strategy to get the share price in a better position before the next CR.

 

[greggles]

Castle Minerals claim they have produced a commercial grade graphite concentrate (95.1%) by using a conventional grind and flotation circuit. That's good news.

It's also good news that CDT are looking to fast track this project as it seems obvious that this is the one that will lead to revenue the fastest and will be the cheapest to take to production. However, there is a long road ahead whatever happens.

 

[greggles]

More wide, high grade, near surface intercepts at the Kambale Graphite Project. The Project's mineralised zone continues to grow but this kind of news is not doing much for the CDT share price as it stagnates around 1c.

Updated MRE due soon and a scoping study is due to commence in Q4 of this year.

 

[greggles]

The updated MRE increased graphite resources by 38% to 22.4Mt at 8.6% TGC containing 1.9Mt of graphite but this has not moved the share price. Nor has an Investor Presentation created for the Peak Asset Spotlight 2023 Investor Conference in Perth.

A lot of small cap explorers are suffering a similar fate at the moment with significant macroeconomic and geopolitical headwinds keeping the share price down. CDT are pushing Kambale ahead quickly but will need to come up with something pretty substantial, such as signed offtake agreements, to justify a re-rate.