RE: Robert ShivesShives had a drilling budget, a budget that caused a lot of dilution to raise.
He had geophysics before he drilled.
He had over 100 drill holes in the Aurizon Zone before he developed the model so he'd know where to drill, at what angle, and how deep.
He had some historical drilling to go with the geophysics in the skarn.
He had IP and ran deep IP and MMI, and a ground mag survey. They did grab samples and trenching before drilling. GWR under Shives did a scientific and rigorous exploration program with the foreknowledge that ever hole had to count because the share price got down to 10 to 12 cents.
CDO would jump for joy at that crappy share price and that is what the reverse-split is meant to achieve. How else can you get people to pay 4 or 5 times the present share price?
Because there is "hope"?
Hope may move a stock from $1 to $1.10 or $1.20 or even $1.50, but 3 cents to 15 cents is a 5 bagger. You might get that with lies, but not with realistic hopes.
CDO has very little geophysics and loads of property. As far as I know, there is no significant exploration budget, much less an actual drilling budget. And there is no easy way to raise a significant amount of money.
You need preliminary geological work done first and then a drill program because 1 hole isn't very convincing these days.
Therefore CDO must raise money and that will dilute the existing shareholders. You can't just pull a rabbit out your hat and get the share price up. Perhaps promotion can move it a penny or two, which is a large percentage of the market cap, but you are still left with needing to raise a million to start with.
The trick with dilution is that if you reduce the assets per share with 10% dilution, but you only do it if spending the money increases assets per share by, say 20%+. In other words, you act like a BUSINESS and you make an investment only if you think there will be an adequate return. This is probably a new concept for many promotional miners who find new properties easier than new commercial mineral tonnage.
And what is the value of CDO's mineralization so far, based upon drilling?
Close to zero, I presume, because they never drilled enough holes in one place to establish even a non-43-101 compliant reserve (unless someone can provide some estimates backed by drilling that I never heard about). That means that it should be easy to increase the value if you can run a careful scientific drill program and drill in the highest probability locations in CDO's inventory. But it costs lots of money to do the geophysics to determine that.
In other words, there is NO way that there won't be significant dilution if this company is going to succeed.
Whether there is a reverse split or not is probably going to mean nothing in the longrun. What will count is how much value can you discover and document, spending the money that you incurred the dilution to get.
Lately, the "easy way" to raise money has been Mineral Fields, the banker to the desperate. But we know how they eventually dump shares regardless of price and can obliterate any price progress that is made.