From the ATV board - Re ColdstreamI asked one of the more knowledgeable people on the ATV board about Coldstream:
Before I invested in ATV I did considerable research on the Coldstream property. (and others).
Iwas impressed with the "widths" of gold mineralization and eventuallycame to the conclusion that ATV is undervalued just on the potential andproven ounces of gold on the CS. They have even more spectacularproperties in the making! Copper was not considered!
I conferwith personell from other analytical labs in my profession and they tooare doing DD, but have come to the same conclusions I have.
Many JR ex. companies have less than1/4 of the widths and overall gpt lower on average and trade into the mid
.50's/sp).They sometimes just highlight a certain small core sample which is veryhigh in gold, but do not have the extrodinary volume as does the CSproperty. 0.5 gpt, over 200m length and 50m width is considerably morevaluable than 100 gpt for 0.2 meters and unknown width (usually tinyand omitted).
What is even more remarkable is that the CSproperty is "open" width, length and depth and no doubt will addconsiderable ounces to the ore body. As I stated before, major goldproducers world wide work on an average of 0.5 gpt providing thetonnage is there. In my opinion this property could easily surpass 1Mounces and is shallow allowing for OPEN PIT MINING.
A phrase that caught my eye but might not mean anything to some is:
- New style of mineralization consistent with Iron-Oxide-Copper-Gold (IOCG) type deposits recognized on the property.
Thepossibility of DMS (density materials separation) ore separation couldbe a huge bonus if metallurgy works out. That is when a DMS micro plantis set up at the ore body site and the heavier metallic,sulphides/oxides are concentrated and shipped for further processing(low cost transportation and processing) and the less dense materialused for back fill. The metallurgy will prove interesting for thisproject for sure. Oxides though are ideal in most cases for heap leachrecovery!
But I have not been able to find any reference tocopper analysis beyond a mention of a 0.11% number for this property.There was a copper mine near by, so the copper concentration should besufficiently adequate to add a huge value beyond gold values.....maybeeven to surpass gold! At 0.11% Cu - that is 22lbs. Cu/ton @ $4.30/lb. =$94.60/ton. Gold at 1 gpt = $43. Copper at 0.11% will no doubt be onthe low side. The total value based solely on gold could be easilydoubled or tripled when Cu, and other metals are included!! In myopinion a hidden value at this point?!
Many copper mines in BCprofitably run at 0.5-0.7 gpt Au and at 0.2% Cu. when tonnages aresufficient. (Check Imperial Metals (iii-V) who have only a fraction ofthe CS values and they trade over $24/sp. (in part because they havetheir own refinery).
When I 1st checked ATV I mis-read the sp price at
.65/sp and thought that it was undervalued and a good buy. When I clued in that it was only
.065/sp I was litterally baffled and assumed there were indepth company problems.
Biggestproblem I found was lack of exposure to the market. When they gettheir PR (in the works now) together, just watch this stockgo.......based on actual value or their properties. Hard to see thenegatives on this one?
Remember to do your own Due Dilligence!!
Solver
I responded with the following:
Solver:
Thanksfor your response. I came to the same conclusion on the CS property.Was very impressed by the widths, shallow deposit and proximity toinfrastructure. Bought a bunch of FDN because of this and am stillbaffled by the lack of interest in both of these companies. WithATV/FDN doing a 43-101 on CS, it should give some of the institutionaltypes a point of reference for the deposit. From what I am hearing,they believe they are already at 800k to 1.2MM ounces.
Much willdepend on some of the results of the current drill program. Iunderstand that they have completed the 6,000 metre drill program andthe 2 rigs have been released. Half was dedicated to blue sky drillingand testing the new big anomaly. IP suggested that the structure wassimilar to that of the other zones, but we should know within 10 days.Could be copper, gold, Iron - who knows, but all will add value to theproperty. If this new anomaly is consistent with the other zones, wewill probably be looking at a 2-3MM AU deposit.
Even if all wecame up with was the 800k to 1.2MM ounces, given that there is Moss lakenearby at about the same size, we should have an area play and shouldbe mineable by someone and therefore of value - No? If you valued thedeposit at 1MM ounces at a conservative $50 per ounce you still come upwith $50 million. ATV's share would be approximately .10 per share, butthe market does not seem to share our conviction. In the case of FDNwho have about 32mm shares, you come close to $1.00 per share - butagain the market does not seem to care.
pmrider