AP's e-mail reply: andrew@blackrockgoldcorp.com
May 2 at 8:04 PM
To: 'Christopher Campbell'
Hi Christopher,
To what end? I’m one of the largest shareholders in the company and we’ve just delivered one of the most robust, safe-haven resources in the entire industry. Would’ve loved to see firmer market today but we’re not here to day trade; we’re here to fundamentally advance and de-risk the project.
On this initial pass Victor ended up delivering the highest ounces, clearly surpassing our expectations given the slightly higher grades, and vein thicknesses there. We see significant upside potential at DPB to add tonnes; the rigid stope parametres and economic assumptions saw tonnes fall off as originally targeted, though further drilling, especially to better define the high-grade shoots, and in those areas that that were “on the cusp”, leaves room for substantial upside. With veins, there’s no middle ground; tonnes either make the cut, or they fall off entirely. Unfortunately last 2-3 batches of DPB infill holes came in quite a bit skinnier than initial drilling.
We had MDA put this through the wringer, taking a skeptics view to every single aspect of the model as we wanted it to be absolutely bullet-proof in terms of establishing initial numbers. We’ve looked at every significant UG resource in the silver space over the past few years and this is amongst the most conservative yet; it’s been constrained six ways from Sunday and at that, it’s wildly robust as the grade is more than 2x the cut-off. These numbers are conservative and they hold up to scrutiny.
We’ve used significantly higher cut-off grades and cost assumptions than our peers. We used ID-cubed for the blocks, and took it one step further, presenting the resource entirely within a stope (rigid minimum vein widths of 1.5m); whereas most resources for projects of this stage require a fair bit of faith and provide for a lot of wiggle room, there are no “shades of grey” in ours. That also speaks to upside as we focus on drilling out key areas and bringing cost assumptions/cutoff grade down.
Analysts/corporates will like it and see immediate upside in our numbers. The full technical report spells out everything in greater detail, including sensitivity analysis using lower cut-off (which obviously adds tonnage) and that’ll be filed shortly.
That said, using our 42.6m ounces in the base case, we closed Friday valued at roughly $3.35/oz. Today we closed at $2.58/ounce. Given peer comps for high-grade silver stories, especially safe-haven ones, I’d say fair value is somewhere in between that.
Our closing price today is where we were at the end of February and we’re now backstopped by some of the highest grade undeveloped silver ounces in the ground.
Andrew
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That was his reply to a comment i sent.
His words, most detailed explanation/reply i think i've seen & did like this part --- " Analysts/corporates will like it and see immediate upside in our numbers. The full technical report spells out everything in greater detail, including sensitivity analysis using lower cut-off (which obviously adds tonnage) and that’ll be filed shortly".
There was around 110k metres drilled & MRE only used 65k.
Fill be very interesting.
Still looking forward to 1.2 miles to the NW & Lithium assays, glta!!