RE:Gold Outlook this week imo, FVL range bound atmHepburn, great post.
Keep in mind Bank of America has a $3,000 target on the gold price over the next 12-18 months. Whether that happens or not, one thing for certain is that gold is going much higher and the tailwinds are strong. Next push is to test the all time high which will happen in the short term.
Before I get to FVL, folks keep in mind the following which is factual, not opinion:
An increase in the gold price to the levels we are seeing has 2 benefits:
1. Value of the ounces a company has increases (obviously).
2. Increase in gold price, results in a reduction in the cut-off grade (makes othewise uneconomic ounces now economic), which results in an increase in resources (or reserves for a company which have 2P reserves).
Regarding FVL
1. The economics of the Dolphin intrusive have changed significantly. With an increasing gold price, take a look at the lower cut-off grades in the old 2016 PEA, which results in higher ounces.
2. The Company now has the money to do a lot more drilling to convert those 4.5 inferred to measured/indicated.
3. As Sprott said in Friday's podcast, the Company can also drill out this larger lower grade Dolphin zone since it is much more valuable at 1800+ gold.
4. The upcoming drill holes (15-20 in the 10,000M program) will be HUGE for blowing this story out of the water. Does anyone think Sprott has been falling head overy heals in buying 4-5 times in this Company already, with the latest a $20M amount, without DD from his experts and some extras. Sprott invests money in a lot of company's but you will not see him investing such large sums round after round.
The pending news will be good or great. That is the only question. There is no way based on the facts we know, that 15-20 holes strike out, since you cannot have 188 metres at 3.9Grams per tonne with a width of maybe 155M, with last 20M at 10 grams a tonne, and story ends. Geology does not work that way.
GLTA