Re: questions, comments and the beginning of a new season
in response to
by
posted on
Jul 25, 2011 01:32PM
New Discovery Resulting in a 20KM Mineralized Gold Belt
As much as I would LOVE 100 million tonnes or even 30-40 million tonnes I still think we're getting way ahead of ourselves. 2.5 - 7 million ounces is definitely achievable over time but I don't think we're anywhere near that right now. Remember, the drilling that we'll be doing for the remainder of the year will mainly be at T1 so we're only dealing with a small portion of our property. I think if we could get anywhere close to 1 million ounces the market would be happy. At that point we should have a floor on the stock which is much higher than it currently is. Use whatever you feel comfortable with, $50/oz gives us a share price close to $0.45 and $100/oz gives us $0.90. We should also get a little more "Blue Sky" credit at that point having already proven up something.
At this point we can finance at higher prices and get the much needed cash to advance the project. The goal of this campaing is to get a 43-101 out on T1 not the entire property. Once we ge the cash than we can look at sinking a ramp, exploring more at Bellechase, exploring at Beland, exploring at FSG, proving up the 88/Snowhite zones, the opportunities are endless but costly. Each step needs to be moving towards proving up more than the last round and this really is the first step in starting that process.
I think there's a tonne of potential in this property and have the utmost faith in management, that's why I've increased my position 5 fold at these prices but I'm not buying because I think they'll announce a 2 million ounce deposit early in 2012, I'm buying because I think they will announce 5 - 10 million ounces over the next 5 years.
I think we still need to remain patient and not expect a massive deposit by the end of the year, those that are may be disappointed.
JMO
Deeter