No-Idea 2016 I think there are three reasons why we are not rooted (if I can say that).
Firstly, CZN still has about $2 mil in cash so they don't need a capital raise in the near term (mid 2019 maybe the time for that). It allows them to carry out a new round of drilling at targets along the 20 km strike at Mt Gilmore, and pay for the mining research in WA on processing the ore from Lake Lynn. These two activities could be game changers.
Secondly, all of the deposits are metal-sulfides which are becoming increasingly rare. These ores have been shown to be easy to process when compared to laterite deposits. Importantly there is no need for $500 mil to $1,000 mil processing facilities like those planned by AUZ, CLQ, ARL, etc. Basically there is no need for expensive and time consuming autoclave trains to acid leach. Also, the metal sulfides are in veins, not dispersed, which means they can target the rich veins first and get to cash flow much quicker, then process the stock piles of lower grades. (The veins at Cobalt Ridge are very rich.) Also, the deposits are close to good infrastructure, which is lucky.
Thirdly, the resources are actually very valuable. I've previously roughly estimated from their announced drill results that Cobalt Ridge alone has over 2,500 tons of easily extractable cobalt (ie 2,500 x US$60,000 = US$150 mil). And Lake Lynn has a first-up target of 5 mil ton of ore at 1% nickel, 0.4% copper and 0.03% cobalt. You can calculate the in-ground value of just the nickel to be roughly 50,000 x US$10,000 = US$500 mil ). Also, the ore can be mined by open pit from surface and once they have strong cash flow they can mine the other lower grade deposits as well as explore for new high-grade discoveries within the area. So the mining is easy. The processing can produce a mixed metal concentrate for sale to companies that specialise in taking this type of product to high purity nickel sulfide and cobalt sulfide for battery companies. Or, if they become very wealthy, do it themselves. The signs are good for CZN because Lake Lynn is a historic mining district, which means that start up of mining should be smooth (in terms of licences, environmental permits, employment, etc).
It may take some time for the penny to drop, but I think eventually this stock will come good. Most speckies have long periods when no one is interested or there is general disappointment. But once discoveries are made, suddenly there is a sudden move. In my posts I am trying to discuss the positive aspects of CZN. Maybe it's a type of therapy for me (and hopefully others) while we are in the doldrums. I am just a normal shareholder who has no inside info, and I don't want to mislead anyone. At this stage of the game I have bought more CZN each payday in order to average down - so it means that when the bounce comes, the share price doesn't have to go too far before its in positive territory. Amigos, sorry if I've annoyed anyone (again) by rambling on for too long.
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