GBB vs. GYDThe apparent "longs" in this play don't even seem to be longs anymore by the looks of it besides Montreal who's posts are useful.
I can agree with you that we didn't get the shares we expected but thanks to it we're not diluting and have cash in the bank as well as the rest of shares held by GBB management, stronger hands than our shareholders in these times.
With all this banter about Castle Silver Mines, no one's even mentioned the take-out bid this morning of $275 million dollars for Grayd Resources La India deposit in Sonora, Mexico. The grade at La India is less than 1.0 g/t au on average and their Resource is as follows.
M & I: 26,770,000 / 0.88 / 760,000 oz Inferred: 19,730,000 / 0.80 / 506,000 oz
In total Grayd has 1.26 Moz at an average of 0.95 g/t au and therefore was bought out for an evaluation of $218 / oz or WELL above the price paid for Brett Resources with LESS gold and in a less favourable jurisdiction. Majors are starting to pay real values for gold ounces with the latest rise in gold and this is proof. If anyone's taken a look at Grayd' last drill results, or best drill results - they're in line with the holes at Granada but about 20% better in some areas.
Here's an idea of Grayd's best 5 holes:
1. 117 m @ 1.7 g/t au, within 253 m @ 0.9 g/t au
2. 88 m @ 1.5 g/t au
3. 90 m @ 1.2 g/t au
4. 74 m @ 1.0, within 223 m @ 0.5 g/t au
5. 70 m a 1.0 g/t au
Granada's Best 5 holes:
1. 161 m @ 1.3 g/t au, within 229 m @ 0.92 g/t au
2. 99 m @ 1.85 g/t au, within 356.6 m @ 0.6 g/t au
3. 68.3 m @ 2.16, within 110 m @ 1.34 g/t au
4. 123 m @ 1.07 g/t au
5. 75 m @ 1.5 g/t au
If they're willing to pay $200 + an ounce in Mexico and we have similar results, what can be said for a Resource Estimate of 2.5 + million ounces at Granada? Those 58 cent warrants will be exercised if that's the case and going by what majors pay is a far more fair valuation for gold in the ground than what the market wants to value them at. Just look at what the market valued RVC's ounces at last summer when they traded at $1, they were bought out for $9 + after showing over 4 million ounces. Who's more accurate - the market who valued them at $1 and less than $60 million market cap? Or New Gold who purchased them for $500 million and just upgraded the 4 million ounces to 6 million today at the BlackWater deposit.
If GBB were to prove double Grayd' Resources at Granada with 2.5 million ounces of gold but at a slightly lesser grade and were even given a 30% discount from GYD' acquistion price of $275 million for grade differences, we would still be worth $300 million dollars or $2 a share.
People here need to wake up and look at what gold similar to ours is going for is less favourable jurisdictions before worrying about how many shares we're getting in a new company and asking people here to hold your hand since the market punishes us continually. Several other juniors are getting hit as well and if you don't have conviction or aren't a true long then I suggest you do some comparisons and actual due dilligence.