PDI - Predictive Discovery

[System]

Predictive Discovery Limited (PDI) is a gold and uranium exploration company with projects in Burkina Faso (West Africa) and Australia.

http://www.predictivediscovery.com

 

[springhill]

PDI is one to be looked at for the pedigree of its directors alone.

Shares on Issue 125 Million
Cash Position $ 2 million
Enterprise Value $10 million
Debt Nil
Top 20 Shareholders (%) 46%

PROJECTS

Bonsiega Project
 Dave Prospect, Laterite Hill Grid :
• 10m at 18g/t Au from 74m including 2m at 74g/t Au (highest grade to date on Bonsiega Project)
• 10m at 2.5g/t Au from 88m
•Æ’28m at 1.6g/t Au from 30m
•Æ’24m at 1.1g/t Au from 0m
•Æ’12m at 1.5g/t Au from 56m
• 26m at 5.0g/t Au from 26m including 2m at 31g/t Au
• 38m at 1.3g/t Au from surface including 4m at 5.6g/t Au
• 24m at 1.9g/t Au from 4m
• 8m at 3.3 g/t Au from 46m
• 22m at 1.0g/t Au from 44m
• 12m at 1.7g/t Au from 16m
• 8m at 2.0g/t Au from 72m


 Laterite Hill Prospect, Laterite Hill Grid:
• 26m at 1.2g/t Au from 71m including 14m at 1.8g/t Au
• 22m at 1.4g/t Au from 48m
• 52m at 2.1g/t Au from 36m including 20m at 4.8g/t Au and 2m at 24g/t Au
 Tamboana Prospect :
• 5m at 5.1g/t Au from 36m including 1m at 22g/t Au
 Koundi Zone (new discovery):
• 4m at 5.7g/t Au from 76m (stopped in mineralisation)
 Prospect 71 (new discovery):
• 32m at 1.7g/t Au from 26m including 24m at 2.1g/t Au
 Prospect 71 west (new discovery):
• 18m at 1.0g/t Au from 54m including 6m at 2.3g/t Au (stopped in low grade mineralisation)
• 4m at 7.1g/t Au from 20m


Bangaba Project (PDI earning 95%) - Solna
The Solna Prospect covers a 600 metre long zone of active artisanal workings where gold is being extracted from quartz veins that occur within sheared sections of a host granodiorite adjacent to a contact with metasedimentary rocks
Better gold intercepts included:
• 5.6m at 16g/t Au from 205.4m including 1m at 81g/t Au
• 2m at 11.5g/t Au including 1m at 17g/t Au
• 3m at 5.1g/t Au including 1m at 12g/t Au
• 2m at 7.3g/t Au including 1m at 13.7g/t Au

Bangaba Project (PDI earning 95%) - Tambiri
The Company’s diamond drilling program was planned to test an area where previous diamond drilling by High River Gold had obtained four high grade intercepts – 16m at 10.6g/t Au, 2m at 56g/t Au, 5m at 16.4g/t Au and 2m at 9.9g/t Au. The drilling was also designed to obtain oriented drill core through the mineralisation.
Better intercepts included:
• 8.7m at 7.3g/t Au from 58m including 1m at 51g/t Au
• 9.3m at 4.9g/t Au from 62.7m including 2.3m at 17g/t Au
• 28.4m at 1.7g/t Au from 39.0m including 1m at 17.3g/t Au and 1m at 15.9g/t Au
• 13.3m at 3.6g/t Au from61m including 1.2 m at 22g/t Au

Cape Clear Joint Venture
PDI entered into a modest joint venture agreement during the Quarter on an Exploration Licence (EL4691 – Cape Clear) near its Skipton EL. The agreement was signed with Leviathan Resources Pty Ltd, a subsidiary of AuRico Gold Inc. Under the terms of this agreement, PDI may obtain a 100% interest in the EL by expenditure of $500,000. The vendor will receive a 1.5% royalty if a decision to mine is made. The minimum expenditure before withdrawal is $70,000.
The target is a large Stawell type gold mineralised system, as at Skipton. The area is of interest because it contains:
• Widespread alluvial and primary gold workings
• Evidence of Cambrian basalt domes (similar to those at Stawell), concealed below cover
• It is at the intersection between two very major structures
• Very little modern exploration has been carried out in the areas which PDI is targeting.



Cote D’Ivoire
Predictive Discovery Limited announces that it has signed an agreement for the acquisition of a
gold exploration permit in Cote D’Ivoire, known as Komboro (subject to grant). Under the terms of the
agreement, PDI may earn up to a 90% interest in the permit.
While Predictive Discovery is taking this initial step into Cote D’Ivoire, its primary focus remains on the
Bonsiega and Bangaba Projects in eastern Burkina Faso, where ongoing drilling programs continue to
make promising new gold discoveries.

The project is located in the north of Cote D’Ivoire with an area of 169 km². It covers part of a greenstone belt containing active artisanal workings and extensive gold geochemical anomalies. The project holder has reported a series of high grade values ranging up to 52g/t Au from reconnaissance soil and bedrock sampling, however, as far as PDI is aware, the area has not been drill tested.

What do we think gold bugs? In my LLP thread.

 

[burglar]

...
What do we think gold bugs? In my LLP thread.

It's already there!

 

[springhill]

Further high grade drill results from Bangaba


New Bangaba RC drill results include:
o Solna:
2m at 20.4g/t Au from 70m including 1m at 40g/t Au
4m at 8.0g/t Au from 194m including 1m at 29g/t Au
5m at 5.7g/t Au from 39m including 1m at 12g/t Au
2m at 10g/t Au from 134m including 1m at 19g/t Au
2m at 10g/t Au from 51m
Analysis of 1m samples from 2m composites upgrades the SOLRC011 intersection from 6m at 12g/t Au from 40m to 6m at 20g/t Au including 1m at 111g/t Au
o Tambiri:
20m at 2.3g/t Au from 48m including 1m at 15g/t Au
20m at 2.2g/t Au from 138m including 4m at 7.0g/t Au
12m at 1.7g/t Au from 88m
12m at 1.4g/t Au from 96m
12m at 1.4g/t Au from 108m
□ Both holes with 20m intercepts at Tambiri (listed above) extend mineralisation north and south with mineralisation still open in both directions and at depth.
□ Considerable scope for further discoveries along the 8km of mostly untested power auger gold bedrock geochemical anomalies along strike from Solna and Tambiri.

 

[springhill]

PDI Acquires 100% of ElDore Joint Venture, Burkina Faso

Predictive Discovery announce that it has signed an agreement with Stratos Resources, enabling PDI to move to 100% ownership of the four Burkina Faso permits that constitute the ElDore Joint Venture. These permits cover 621km² and include the Laterite Hill Gold Field, a 20km long zone of gold mineralisation, in which PDI has obtained excellent drill results over eight separate zones of gold mineralisation with a cumulative strike length of at least 8km to date.

This is an important strategic development for PDI in consolidating and simplifying the ownership of some of the key tenements in the Company’s extensive project portfolio.
SAT currently holds 27.9% of Birrimian Pty Ltd (“BPL”) the underlying owner of the four Joint Venture permits. PDI currently owns 72.1% of BPL. Subject to approval by an Extraordinary General Meeting of SAT shareholders, PDI will purchase SAT’s entire shareholding in BPL for the consideration of 13 million PDI shares. At the same time, SAT will make a cash payment to PDI of $140,000 in partial repayment of outstanding cash calls from the Joint Venture. Also, as part of this transaction, SAT and its Directors are contributing $160,000 to the shortfall in PDI’s recent entitlement issue which closed on 20th July 2012.

Other provisions of the agreement include:
□ SAT will be subject to a voluntary escrow agreement in relation to its PDI shares for 12 months after settlement.
□ SAT will have no further contribution obligations towards the ElDore Joint Venture and PDI will forgive all remaining outstanding Joint Venture payments owed by Stratos to PDI.
□ SAT and individuals or investment funds associated with that Company may contribute further to the PDI entitlement issue shortfall prior to the SAT Extraordinary General Meeting. If so, any contribution up to $140,000 will then be discounted from the $140,000 cash payment to PDI and the number of PDI shares issued under the agreement will be reduced by the value of that contribution, assuming an 8 cent PDI share price.

 

[springhill]

PDI are pulling impressive grades out of Bongou. It was one I used to keep a close eye on as having potential, but that all went by the wayside when work got busy. It did close up over 22% today and reached an intra day increase of 44%+

Drill results released today listed in announcement below.

Outstanding High Grade Gold Drill Results from Bongou
Highlights:
● Results from the recent five hole RC drilling program at the Bongou Prospect, Burkina Faso in March, 2013 included:
o BNGRC010: 48m at 4.3g/t Au from 34m incl. 16m at 9.7g/t Au, and
o BNGRC010: 11m at 1.4g/t Au from 91m
o BNGRC014: 23m at 6.9g/t Au from 111m incl. 16m at 8.9g/t Au, and
o BNGRC014 : 7m at 3.9g/t Au from 141m
True widths are estimated at 85-95% of the above down-hole intervals.

● This program augments previous drill results including:
o BNGR001: 54m at 2.1g/t Au from 36m incl. 20m at 4.8g/t Au
o BNGR004: 10m at 7.4g/t Au from 47m.
o BNGR003: 102m at 1.1 g/t Au from 4m incl. 14m at 3.0g/t Au
o BNGR004: 70m at 1.2g/t Au from 62m incl. 18m at 1.8g/t Au

● The high grade zone is open to depth and may also plunge to the east.
● Lower grade gold mineralisation up to 20m in true width is found
consistently close to and south of the high grade gold zone.
● Gold mineralisation consists of an intensely silicified, quartz veined and pyritic microgranite. Recognition of the Bongou gold mineralisation style has opened up a large new area for exploration within the Bonsiega Gold Project permit group.
● Additional potential is indicated by:
o Intermittent granite outcrops through areas of extensive thin cover extending over at least 3km of strike around Bongou with two priority target areas identified nearby to the west and East.
o Two new target areas identified 4km and 10km north east of Bongou both on the 43km of Bongou fault strike within PDI’s exploration permits.
● Ongoing exploration program includes additional drilling, ground geophysics and geochemical drilling of nearby targets and preliminary metallurgical test work of gold mineralised RC samples.

Now, I am far from being a gold bug and different gold in differing mineralisation types are harder and more costly to extract than others.
Is this the case here or has the market not paid attention to the drill results?

The number of shares on issue is a borderline case where I say there are too many on issue to suit my system, yet the market cap is a paltry $10m. Around $2m of that is cash, if that cash figure was around the $5m mark I would be finding it hard to resist a short term speculative holding.
As I have been burnt by that back in the day, I have learnt to stick to my criteria. Doesn't mean this won't be a kicker, of course. It almost certainly guarantees it will!

Anyone who can shed light on the mineralisation type and the vagaries of extraction would be much appreciated.

 

[frugal.rock]

Wow.
This has been in my watchlist for a while.
Expected a gap up on open...
didn't expect 200% on open, and definitely didn't expect a high over 800% up.
Wow.

Could a, should a... didn't.
From whoa, to Go!
Watched from the sidelines, all chicken like...

Anyone holding or held/ out today?
Awesome stuff if you do.

F.Rock

 

[Sean K]

This thing is producing some decent intersections and grades. Any idea what happened in April last year?

 

[greggles]

Any idea what happened in April last year?

The timing of the share price spike in April 2020 seems to be as a result of the announcement released on 15 April concerning the discovery of a gold deposit at the Kaninko Gold Project in Guinea.

Since then the share price action hasn't been terribly exciting. It's been pretty flat for the last six months.

 

[Sean K]

The timing of the share price spike in April 2020 seems to be as a result of the announcement released on 15 April concerning the discovery of a gold deposit at the Kaninko Gold Project in Guinea.

Since then the share price action hasn't been terribly exciting. It's been pretty flat for the last six months.

So, Kaninko is now the Banakan Project above.

Are they ramping it a bit claiming potential for a 'multi-million-ounce' resource?

The intersections are OK but doesn't scream multi million to me yet.

And they need to change their name, it's pretty lame.

Next Steps

"Following receipt of results from the ongoing RC and DD drilling program, infill drilling will be carried out to support the Maiden Resource Estimate planned for mid-2021. Metallurgical test work is scheduled to begin in April 2021.

In addition to the ongoing RC and Diamond drilling, power auger drilling has been in progress since October last year. The focus of the power auger is to search for gold mineralisation in the areas around Bankan West, Bankan Creek and NE Bankan. Once results from the recently completed aeromagnetic survey are assessed, auger programs will be extended further to the north and south in the search for new satellite gold discoveries."

 

[barney]

And they need to change their name, it's pretty lame.

Yeah tend to agree. Sounds more like a Bio-Tech Company

Pretty handy Grades in the Announcement with a mixture of wide and nuggety strikes.

+ $65 million Market Cap with around $13 million in the kitty at last December. Well placed for a Minnow (DNH)

 

[greggles]

I no longer really look at mining companies who have flagship or major projects based in African countries. Aside from all the corruption, there is the constant risk of armed rebellions, civil wars, tribal conflicts and sudden changes in government that can threaten the viability of major projects.

I have seen too many African based mining projects go under in the past due to social and political instability in African countries. These days I only look at companies with major projects in politically stable countries.

 

[Sean K]

I no longer really look at mining companies who have flagship or major projects based in African countries. Aside from all the corruption, there is the constant risk of armed rebellions, civil wars, tribal conflicts and sudden changes in government that can threaten the viability of major projects.

I have seen too many African based mining projects go under in the past due to social and political instability in African countries. These days I only look at companies with major projects in politically stable countries.

I agree with this sentiment. There's tons of risk but I think a lot of that is factored into their SPs.

 

[Sean K]

NE Banakan looks like it's turning into something. Still quite wide intersections and good grades at depth. Broken up since 14 Mar post.

 

[Sean K]

This may be a new discovery. Hotcockers may have got hold of this today, looks overcooked.

 

[Sean K]

They keep finding more gold here. Outstanding grades for West Africa.

Was absolutely caned in June for no apparent reason. Maybe the drill results on the 17th were't as good as expected.

MRE due in Q3 so coming out of 'discovery' phase.

 

[Sean K]

Interesting. Into a TH for exploration results. Must be good.

The Company has received material exploration results and requests a trading halt of its securities to allow it time to analyse and report the data to the market.

 

[Sean K]

Wow, 50m at nearly 12g/t is exceptional.

 

[greggles]

The mineralisation is at depth but those grades and widths are worth going after. The market agrees. PDI has opened strongly this morning, up 47.37% to 14c.

 

[Sean K]

The re-rating from those 19 Jul results has held up. LRT's 4th highest holding average entry at about 3c should be good for their fund this quarter.

MRE set for late Sep. No idea what it could be. Hard to pluck dimensions with the different loads and depths. These are the last holes to be included in the MRE but they're still expanding the resource in many directions, especially down.

I still think it's a dumb name for a resource company. 'Predictive Discovery'? It's not a guessing game.