GCU vs PRBFrom the Probe Mines blog:
RE:Please Explain!
GCU got a low grade deposit in a pretty remote area. No infrastructure. PRB got a low grade deposit as well, but is also discovering a high grade deposit, still open. PRB got great Infrastructure, not far away from a highway. Still lots of more better things than GCU got.
Therefore PRB is gonna get bought out sonner than later (probably by AEM), even at current gold price. GCU won't be able to build a mine in current market conditions, so its more or less worthless.
Not long ago, GCU had a much hihger market cap than PRB. But grade and infrastructure are king. PRB is just a much better story. If GCU woud be a good one, a major would buy in or buy it out. GCU got a market cap of $ 30mio, could buy it for about 50 mio. You got my point??
Max
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Thanks for your response.
1) With respect to gold grades, I believe that GCU’s grades are a little higher. GCU also has silver grades about 6.3g/t and Probe does not have any.
2) PRB has infrastructure nearby (roads, hydro etc). GCU has a short road going in, and major hydro lines are located nearby. The nearby Goldcorp Musselwhite Mine has no roads, but is producing gold. Several of the gold producing mines in Nunavut are producing gold (and no roads). They just keep bringing their gold bars out on a plane.
3) Chromite in the Ring of Fire is dead for awhile. The chromite is there, no question, but until Cliffs, the Provincial Government, KWG Resources, and now the Federal Government (Indian Affairs) get their acts together, this area doesn’t mean a thing for PRB for quite a few years.
4) I agree with you, but only partially. PRB will get bought out, but it will be much later than sooner, and AEM will not be a candidate. Sorry!!
5) I agree with you again, the market cap of PRB is much higher today than that of GCU ($160M vs $30M), compared to a couple of years ago. As a result of Sprott Res, and Pinetree Capital trying to save themselves, they sold their biggest investments, including GCU and PRB, but GCU was their biggest investments compared to PRB.
However, we could see this reverse again.
6) Why the difference in share price? My guess is because of the people in management, and the Board of Directors involved with Probe Mines. Check out their respective (Gold Canyon and Probe Mines) websites. Who would you rather have, leading your company?
You never addressed this issue Max in your response.