FDR: Exploration VP Voegeli paints the broad pictureIn a beautiful display of low-key (yet still high-octane) marketing, Pascal Voegeli’s remarks from the November 25th German Gold Show correct some of my earlier working assumptions. And I’m glad to have them corrected. Because in this case, the full truth is far better.
Voegeli seemed to indicate the second rig has been busy drilling not the Buese zone or any other new zones on our property, but three “periphery” prospects closely adjacent to the Froyo zone in Upper Antino. He thought results for all three might be released before year end.
I guess we got one on December 21st (or possibly two, depending on how he’s defining them). Which means we ought to see another one or two in short order this month. Again, it is probably better, in terms of share price impact, to properly expand the proven gold deposit, and then see just how many additional independent zones may exist.
Voegeli confirms the scorching-fast 72-hour lab turnaround. And reiterates FDR’s careful method: first re-log old data, next do new geophysical work to gain fresh clues, then extensive surface sampling to pick the very best drill sites, and finally drill in stages, 25-50m spacing, using speedy lab feedback to eliminate wasted meters.
Newmont and Barrick already seem to be interested, as might be expected.
But FDR is also keeping its options open, presumably including processing and selling the abundant and accessible tailings prior to any buyout. Flexibility is always good. I’m sure my fellow shareholders would love surprise dividends linked directly to the gold price received for said ore.
Voegeli mentioned accelerating the property vendor contract to become “full” owner. Meaning 100%? Was the Nana deal re-negotiated? The subsequent December corporate presentation doesn’t indicate this, but clarification will likely come in due course.
[I posted the following three paragraphs yesterday in response to NextLegUp’s comment about confidently buying more FDR shares at current prices. I include them here because they also relate directly to some of Voegeli’s November 25th video remarks. Broadly speaking, Voegeli might agree with me, although he is surely barred from discussing any kind of specific FDR share valuations.]
“Agreed, NextLeg. I guess I haven’t harped on that particular topic (why one should keep buying) lately, but there *is still* fantastic opportunity even at these latest highs. A self-serving claim, to be sure, but that doesn’t mean it isn’t also readily defensible.
My takeout target of Cdn$11.25 is based on a set of input assumptions that, as a group, could easily be too conservative. I note especially my Cdn$75 per ounce purchase estimate. On reviewing my thinking, $75 may well be too low given South America’s relative (and improving?) risk profile compared to North America / Australia with their endless and increasingly onerous regulatory and environmental approval processes.
And I didn’t even really bother to try to estimate the value of the 1 million + ounces of tailings gold. Surely, those are in a separate category - worth 3-4x more than $75 per ounce since there is no serious excavation expense required. Or, to allow apples to apples comparisons, maybe consider them a regular underground target zone already completely proven up (no more drilling required), shown to contain 3-4 million ounces all by itself at an average depth of, say, 50 or 100 meters.”