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Hello shelly123,
I don’t wish to rogue a point. We have 211,000 ozs in the ground yet we are still valued at £6m mcap. I think that shows the value. I can’t say anymore than that.
I will, however, state that I didn’t say it wasn’t viable, but not really viable for a major player. If the 211,000 ozs were all in one little spot waiting to be plucked out with a small digger, then I’d consider rethinking. But these ozs are spread across the prospect.
As a comparative, MNRG are just acquiring 390,000 ozs in open pit table conditions which can be mined with 12-18 months and this is valued at $23.5m.
Another key indicator is that andromeda metals are happy to relinquish 75% of their interest (which already has a jorc) in this prospect for £6m.
I’m a stark realist. And I hold near on 2m shares here, so I know and (hope, like many others) it’s likely upside will be. I’m not downplaying it, but rather, I like to think, playing it cool. Happy to be proved wrong.
Carribean2029...where are you getting your figures from? Saying 211,000 Oz of Gold is not viable or attractive? I’d definitely question that logic...you do realise that Haverion (Greatland Gold) produced 452,000 Oz Gold in 2019 and was valued at US$1.67bn at the time. (US$540.8mln of that value attributed to Greatland).
So saying $10m Mcap for 211,000 Oz really doesn’t stack up at all. COBR already has an Mcap of £6m without drilling results...
DYOR, thanks and GLA.
If I may just put in 2p.....
I'll come to the IOCG shortly, but that aside, the initial target here is 1million ozs, that's a further 889,000 ozs and change over and above what we already have JORC'd in the ground. Putting that into context, the 211,000 ozs are just not really viable for a potential major player to be interested in, including COBR. It's not really got any attraction. But, the value of a couple of hundred thousand ozs could be in the region of £10m mcap, on a oz for oz basis. If we are able to prove up 1million ozs, then we could see an mcap of upwards of £40million with a decent Pre-feasability report. After all, 1million oz of gold is worth approximately $2billion. So our target for now is to get to a resource of 1m oz, and given the nature of the area, transport links etc, an mcap of £40m is not unexpected at all, given that 1m ozs is proved-up.
But, with IOCG, well that's completely different. If there is an IOCG of any decent scale, then this would mean a farm-in at the very least. Given that they are not common, but at the same time, the pathfinder results at Grace have shown highly anomylous molybdenum, then at the very least, we will be seeking to push for a response to the ADI funding. My guess is that some of the drill work (some 3250m) that is not yet plotted in, will likely be used to determine more credence to the suspicion of an IOCG target and this may be why we have not had a response......it could be that we were required to submit more data for this to proceed, (We are clearly not party to the commercially sensitive documents that CM would have submitted to the SA government).
So if, and its a big if, we get to find an IOCG of any scale, then we are looking at a 20-40 bagger easily. But it isn't really the core here as a million ozs will do quite nicely for now anyway....
All Opinion and speculation based on what data is available to all.
could easily multibag here 5 to 10 bag
Thanks richy, good read
Interesting to know how much they sell for if ever ones proved up- can be anywhere between 250m and 1.8 billion
And how much they could possibly hold-
In terms of size, IOCG deposits can range from a few million tonnes of contained ore (e.g., Prominent Hill) to upwards of 18 billion tonnes (e.g., Carajas). And while grades are typically low — with some exceptions — they remain consistent throughout the system unlike skarn-type deposits.
Worth a read. It’s very unusual for a junior explorer to claim they’ve got not one but four IOCG targets!
https://investingnews.com/daily/resource-investing/base-metals-investing/copper-investing/iron-oxide-copper-gold-iocg-deposits-profitable-mines/