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Hi trek,
My eye was caught on it only because I like to observe charts of shares being discussed on here, out of habit, to see if sentiment is reaching an extreme level. A sort of first pass visual inspection. Then I remembered some high profile tweeters a year ago banging on about Pur. I will remember their names for ever.
As for Lnd, I've been fully invested since averaging around 21.5p a few months ago. Patience is required but it should pay off handsomely. ATB.
Hi O&W,
Re PUR, check my last posts over there. The BoD are useless, narrow vein, excessive delivery problems, performance issues etc... when they hit the 8 zone it may improve but atm they are woefully short on ounces.
This may help
https://seekingalpha.com/article/4469912-pure-gold-mining-another-disappointing-quarter-in-q3
They have 1.9m warrants coming into play on the 21st Dec. If I was to buy it would be a trade. It must be near the bottom now. Catch the bounce and out but TBH I think you are better off adding here and waiting for the MRE.
Usual caveats
Trek
Yes, good post earlier, Urbanracer. That sets the scene admirably.
Now, out of interest, anyone have a reason why Pure Gold has slumped this year? It's based in Ontario and on the surface has great, great gm/thickness numbers at the drillbit.
Thank you Urban Racer for your excellent summary
UR,
Thank you for such a comprehensive explanation.
Here I think we have violent agreement...
“Now then, and THIS is my key argument, Bill has repeatedly stated that of the companies currently with data access (thereby already doing their dd) under nda’s, more than one have impressed upon Bill the importance of not just resource , but of indication of REAL potential”
Thanks for adding more ‘colour’ to the MRE. It really gives one more confidence.
Good luck with your investments
Trek
(Under nda’s) already have a grasp of what the new figures will be. Add the (non NI43-101) unclassified and that is where we should be looking at a combined (not MRE I repeat) figure of 1.8 or 1.9 million ounces.
The MRE out and those Expressions of Interest invites will go out not only to nda’s but other ‘Big Boys’ also. This is when the good stuff will start in my opinion.
Cheers Trek.
UR
Hi Trek,
I don’t disagree with any of your points, however I would add a couple of considerations.
Firstly, I agree that results order is not a big issue, however I also take the view that the MRE may not, on its own, be ‘what the market is looking for’. My rationale is this.
Our current resource, as you know, is 1,015,000 ounces. It took 36,000 metres of drilling at ‘Bam grade’ average 0.99 to 1.03 g/t to achieve this. This equates to 28.19 ounces per metre drilled.
Bill H confirmed that up until the recent recommencement of drilling (West pit infill on/vicinity GL 800E/900E) , Landore had completed 22,000 metres of drilling in the 2020/2021 campaign. Interestingly, Bill said that the strategy had been to drill 11,000 on infill, and 11,000 on step out or exploration.
In the first instance, 11,000 drilled at Bam grade (I will come back to this) should achieve circa 310,090 ounces leading to a new MRE base level of 1,325,090 ounces. What we don’t know exactly (at least I don’t) is the ratio of drill density sufficient for indicated and inferred. Whilst both will sit within the revised MRE, we will have to wait for the report to come out to know the true picture.
Now then, and THIS is my key argument, Bill has repeatedly stated that of the companies currently with data access (thereby already doing their dd) under nda’s, more than one have impressed upon Bill the importance of not just resource , but of indication of REAL potential. The second 11000 metres drilled on west and east pit extensions will show this. Now we can be pretty sure that density will not bring data sufficient for indicated, but will show either inferred (which WILL) sit within the revised MRE, was well as considerable ounces that will sit outside. This is the exploration or unclassified figure. (Note that we had 441,000 ounces of unclassified in the 2019 PEA. Whilst some of this has now been infilled and moved into resource, mu maths says that it cannot all have been upgraded.
My conclusion therefore Trek, is that the combined figure of new MRE plus current unclassified category is what will light this up. It is hard to work out what the MRE will show not just for the reasons outlined, but also
1. We are quite likely to have an improved grade over previous Bam grade.
2. My figures do not take into account the current infill on this suspected new high grade shoot at 800/900 Bam West. This will, if good, be sewn in the MRE causing a slight delay as Bill confirmed in last interview.
My take is the companies will
Hi Nice,
Made me chuckle that one..
Excellent.
Hi UR,
I don’t think it matters much in what order results arrive. The next drill is probably more important than the MRE in terms of value add for a bid.
Any buyer would likely do their own DD. The MRE is just putting all the knowns in one basket. It will still give ranges of upside, hence ’Estimate’. IMO another set of decent results will add to the ‘proof of ounces’ the market is looking for.
It’s the grades, depth and width. Together with Canada, access etc what we already know that builds the valuation.
But from here another decent drill is what excites me and will get folk around the table.
Usual caveats
Trek
Lol NicetoMichu
Anyone who has been in this share for a number of years will understand the Humphrorian Calendar to be very different to the Gregorian calendar ... eg Upgraded MRE this month might happen or might not happen
They started drilling on October 21st according to the last RNS. That is 6 weeks ago now. Realistically if you add the fastest possible turnaround drilling times, maybe 3 weeks to drill and 3 weeks for the assays to be shipped and analysed you would get to about now. This would be the absolute quickest any results could be expected, but in reality that the quickest possible time never seems to manifest.
I know BH said in the interview end of November MRE, maybe delayed by a couple of weeks if they include the western extension. I personally do not take his dates literally. All CEO's seemingly have a different concept of time compared to real time. But it this way, when a CEO says we expect results by x date, it is never before x date. Its always after.
There is no prospect of 'bad news'. This is not drilling on a new exploration site. They always hit gold of varying grades. If the grades are spectacular like the grades reported in the last drilling results we are probably adding maybe 75,000 oz more to the upgraded MRE, if they are more typical BAM grades then maybe this drops to 25,000-50,000 - really not a huge difference.
The big news here is takeover/asset sale, not the MRE or western drilling extension results.
Thanks UR, appreciate your views
Ronaldo,
Not necessarily and difficult to call. I suspect it depends on timeframe and results. Bill has 20 drills to play with but could be more or less, depending on how deep they go on the 800 and 900 grid cut lines. The geo’s will be examining the cores closely as they come out and make decisions, pre assay, based on visible signs. (Ie VG and general mineralisation). I presume they use hand held analysers but not sure. Base line is we don’t know if west pit infill has been completed yet.
If results are looking really promising and they do decide to fast track at the labs and aim to get these results incorporated into the new resource, then my guess would be drill results in RNS reasonably soon, and then a separate RNS followed by the MRE later when completed. I don’t think it is simply a matter of adding the last (current) assays into the MRE; it is rather more complicated than that, and, as such, that is why Bill confirmed the MRE would be put back IF the decision to incorporate current west pit drilling was made.
I think THE important point is that the Board will have a good idea NOW about what the MRE will look like before these last results are incorporated. They will deffo know what the unclassified ounces are as these last 20 or so drills are all infill and so will not affect the outcome of the final important unclassified ounces figure. (Felix does not come into this irrespective of when they start drilling there).
As such, these will be being shared with the ‘Big Boys’ and could lead to the really BIG news at any time.
Bottom line Ronaldo is that there is nothing BAD about this, and, in fact, one could argue that the longer we wait the better the outcome is likely to be.
Regards
UR
Really expected an RNS this morning , news must be due now had nothing since October. Not sure whether that’s good or bad