New Age Exploration Limited (ASX:NAE) managing director Gary Fietz provides Proactive Investors with updates on the company's recent capital raising, drilling at the flagship Redmoor Tin-Tungsten Project, and talks over the Lochinvar Coking Coal Project.
The Redmoor project is being handled by Cornwall Resources Limited, which is co-owned by NAE with JV partner Strategic Minerals Plc (LON:SML). Priority Drilling Limited is carrying out the 4,000 meter, 7-hole drill program that is underway there. Fietz explains, "we're pretty confident about the continuation of resource down to where we're drilling. And there definitely is a trend of the grade increasing with depth, so we're hoping that we're going to get some high grades in this area as well. So the drilling program's all about 1) adding tonnes - we're trying to convert as much of that four to six million tonne exploration target to resource as we can - and 2) increasing the grade of the resource."
Speaking about efforts to create value for shareholders from the Lochinvar Coking Coal Project, Feitz says "it's a relatively early stage project still, with an inferred resource and a scoping study. But the project has an NPV of some US$400 million, which is very significant, and unfortunately I don't think any of that's reflected in NAE's share price."