Member Info for DeathStranding

I'd actually be quite positive here if the company puts out a strong strategy announcement setting out the plans for the JV. It could firm up in the low 30s which is a great result considering this was sub 10p for a long time before JV announcement in July 2020.

The math is simple.
That's the value agreed by the JV. Now the company needs to deliver results.

Seems like a rational level until newsflow builds confidence in the stated strategy of the JV to develop Clontibret.

The JV is over the Clontibret licence, 9 other Irish licences and 2 licences in Northern Ireland.
The JORC resource estimate for Clontibret is 517,000 ounces of gold at 2 g/t (320,000 ounces in Indicated, 197,000 ounces in Inferred category).

Nighth4wk Demir are paying €10 million for a 40% interest valuing CGNR's 60% interest at €15 million, or £12.5 million.

Parkez I couldn't say what anyone thought and don't know what was said, but presumably the company genuinely expected a re-rate on the back of the JV with buy in to the speculation value.

50p would have been a huge premium to expect when he'd just signed a JV valuing CGNR's interest at £12.5 million!

I agree with others here that the licence transfer would be positive news but also just a formality so can't see going unconditional having a major impact on price. News about the JV plans and / or updates on drilling that may or may not already be underway will be positive and could lead to firmer prices but I just don't see the justification for the re-rating that you expect until solid sets of results start to come in consistently and regularly over time from a project development programme.

That would be a 64% increase on today's price - based on what? There's been no update yet on what the plans are.

Central government support is not usually an issue for mining projects (after all, they issue the prospecting licences in the first place). It's the local communities, planning councils and broader environmentalist movements that can stall developments. Support should not be taken for granted, especially considering the project as currently scoped.

Got to admire the optimism of putting values on ounces that have not been discovered.

Spot on Commin.

It's the reality of open pit mining. The scoping study had 440,000 ounces contained in the open pit out of a resource (at that time) of 600,000 ounces. It quickly becomes too expensive to go deeper at the Clontibret resource grade. I don't know what the figures are but I'd question the idea that there will be big additions of ounces from depth extensions.

Based on Demir being privately funded and what CGNR have said about the priority being mine development at Clontibret, I would expect newsflow to be dominated by the nitty gritty of proving up and appraising the current resource, processing testwork, mine planning details, pre-feasibility economics and route mapping the permitting process. Not very exciting but it's the business end of mine development.
Talk of deeper resource expansion is not very meaningful because at the Clontibret grades such resources would be uneconomic, and the exploration prospects are so speculative that I don't think they will be a priority in the early days of the JV. Some work will be done to progress the exploration pipeline but my read of the situation is this will be longer term / second priority.

Demir will have met with government on both sides of the border as part of due diligence and got sufficient comfort on PL transfer to proceed with the JV agreement. It will be a bureaucratic process which might take time (and will vary between UK and ROI) but shouldn't be an impediment.

Drifting due to lack of news but the low volumes hardly constitute "dumping". 20p would be a bit harsh when the JV earn-in value underpins a €15m / £12.5m valuation for CGNR. A plan from the company would allow investors to assess near-mid term catalysts for value.

The Sunday Roast, fairview... really? Do you think that's well informed opinion?
Let's be hearing directly from the company on what the plans are.

pedro61 - I have previously called out many of the overstated and hyped up statements about potential and some ludicrous and misleading valuations which are unsupported by the published data, I have highlighted the technical challenges that have stalled this project from meaningful progress for 7 years, and I have offered some explanations why the current market value is positioned where it is. I do not subscribe to the multibagger narrative. If that is considered to be negative by some with higher expectations then that's up to them.
For various reasons I did not think this JV would happen, but it has, the funds are secured to progress these projects so let's be hearing from CGNR about how they intend to deliver.

The Grampian Project page on the Scotgold website shows a simplified map highlighting Cononish, Curraghinalt and Cavanacaw gold mines / deposits all located within the Grampian Terrane. Clontibret is located in the Southern Uplands Terrane associated with the Iapetus Suture Zone (ancient ocean closure), so very different geological association than those high grade deposits.
Great to see a junior mining operation like Scotgold come good. Notable differences to the CGNR proposal are the high head grade (11.8g/t gold) and underground mining operation / small project footprint at Scotgold. It spent a long time in permitting due to a national park but shows with perseverance it can be done.

Two possibilities parkez - 1. drilling results are not yet available / still being processed, or 2. results are negative / not material. Not possible to say which, and there's no actual discussion in the 12th August announcement of what the drilling targets are or how much drilling was to be done - just that drilling would occur in those two PLs.