RE: Sprott Broker Report on West Pickle Nickel project, Ontario 21.11.222 Jan 2023 16:38
I found it interesting that Sprott wrote a broke wrote a note on Palladium One, the JV partner.
In general, what was said: 100% drilling success rate for greenfield which is good.
Next will be step out etc and the other anomalies. Has some 20km more to explore.
That is the gist of it.
I already thought that West Pickle might interest Sprott due to the drilling results so I was right. Well, better if Sprott wrote a note rather than a co with no note given they visited the site.
I apologise for the wrong link as I must have copied it down wrongly. To see the link, go to
www.ceo.ca/pdm or type into search engine CEO.CA PDM or Palladium One. The top line link will come to the stock forum posting and the link is the 6-7 post from the bottom ie latest.
As to % FCM owns of the JV, it is from recall 20%.
However, if the licence area is of district scale as PDM thinks per their presentation, then, 20% of it is still meaningful given FCM's market cap is £10m and a little over. Was it given away cheap? Well, in these times of the stock market, raising capital is not the easiest
task PRIOR to the drilling. However, after the results, yes, PDM could raise funds.
From the PDM presentation, they show several nickel deposits eg Noront Resource's Eagle which is 1/10 of Voisey Bay which sold for over $400m whilst Voisey sold for over $4billion.
The sale price is from my own research. Well, as an example 20% of the $400m is still not to be sneezed at vs £10m and a little over mkt cap.
As FCM themselves stated, they think their 100% licence, 500m from one of the drill hole
presents an opportunity. One may not agree but as one can see from Haiveron, investors dont like extensive funding to drill so they JV'ed also. One can also see that institutions are needed to raise extensive funds so that is a matter that has now passed ie JV has now taken place.
FCM also has Sunbeam which means that in terms of risk profile, they appear well balanced on pure exploration to a former mine ie high grade gold.
2/1/22 DYOR. Others might differ but one has to deal with the situation in the wider market and make the decision as one cant hold on to everything and drill everything.
Sign In
Follow the stocks
