The Sunday Post - The First Big Batch of Winter 2014
The Sunday Post – The First Big Batch of Winter 2014
Main Trend
Although it has been expected, nice to see that R780E join up with R945E. The meat of the deposit is getting bigger. The surprise though for me wasn't the highlighted holes in the first release, but hole 155 that increased the north-south width to almost 100 metres. I was already impressed with the last step in that area, but this was huge. Not extreme scint readings but very long mineralization in such a step out. This will expand my possible model with some more holes in this area. This is quite outside the radon readings, which shows promise. Not so narrow in the middle, anymore.
Another item on estimate models is R1155E, this has not been put into any models or considered a high grade zone yet. We have gotten closer to that zone this week. The total strike length is always mentioned but not really included in pound calculations by analysts until some more drilling is done. If this becomes a new high grade zone that would be great.
After the first release they announced a few more holes with another great scint one, and I would call this a highlight hole. The geology has a tendency to fluctuate grades quite a bit. You will see a bunch of holes in an area that look good by world standards, not necessarily great compared to highlight ones from the basin, then boom… a massive hole right next to it. This has been the history of the deposit.
The deposit average grade hasn't changed much, though pounds can be clumped quickly on with areas, as more highlight holes are found dotted through the deposit. I am not sure we will get another 129 hole (we can always dream), but anything with high grade thickness if fantastic.
It seems we still have much to learn about this main strike.
Share price/Market Cap
I see some were making comments about why not bigger spikes (this was before the second release, and another rise). This is too mature of a discovery to get crazy speculation spikes, like on a low cap play making it's first hit. As some have said steady climb is what is needed. Many people have been ahead of the curve on this. Too many large entities are in on this, too large a float to play with. Hard to move the needle that quickly. After the second release though, the total week, I would say it was a very large spike at this point in the game.
The large players can control this thing easily, they look for weakness, then sell it down, then add again. I am sure you have seen this many times, especially if you have live level 2.
It wasn't too long ago that this was a dollar just before the spin off, after a major pull back. Now we are at $1.87ish combined, that's pretty impressive if you owned both. Even if you bought after the split some good returns and more to come.
We may get a temporary pull back buy does that really matter? Follow the pounds, not the pennies, as that what will pay out in the end.
FCU has been a good buy all throughout the last year at all levels, and continues to be. Protected for risk, but lot's of reward to be had.
Have a great week.
Cheers
Presclubs
(Disclosure: I hold a long position in FCU. I am not a broker, professional analyst, or work for a financial intuition. I am a retail investor. I do not receive commissions or compensation for posting. I have a group of friends who also are invested, and post on this site for their benefit and any other investors that find it relevant. It’s a hobby, enjoy it, and invest in this stock because of my belief of large potential returns with low risks. These are my personal opinions; investors should do their own due diligence on what to invest in. Team PLS-2.2m)