We All Know the Big Gold is DeepWe All Know the Big Gold is Deep-90% of it will only be found deep. We have NOT drilled deep yet.
In 1987 they did, 10 grams per ton over 3 meters. That is where we are going next.
Corrections to a the poorly written news release about an area where little gold is expected means little compared to what is next.
I learned a lot about drilling from this CEO message board post below. from #mmv,
@exploratory @Megalodon This is an example of an inefficiency in the market that IMO from time to time allows for truly outsized gains and wealth creation to be realized by some. Not every story (every junior has a story) proves out -- as we all know -- but when they can be identified in advance and do prove out, all here realize that it can be transformative. The investment trick, of course, is identifying the winners in advance and timing the entry and exit points.
I have found it best to let the rocks pick the stocks and hang out until they speak. The rocks are never wrong, BTW; the problem is to correctly understand what they are saying. With new deposit types or in new districts this is more challenging. But in the instance of Standby, what they are saying is not as hard to interpret given all that's known about the Homestake mine. The simple question for me has always been whether the gold endowment at Standby appeared to be following the Homestake model, and IMO the latest news release adds clarity that it does.
What no doubt is missed by some investors as they read today’s news release is the influence on the latest results prompted by MMV’s choice to drill along strike and down plunge with a directional drill. The benefit of such drilling is that it tends to be highly efficient (less costly) and provides sufficient geologic results so long as the strike and plunge of mineralization doesn’t deviate too much from the path of the drill string, and further provided that the drillers are able to successfully aim the drill exactly where you want it to go (not that easy to do). The alternative is extensive drilling of a lot of holes across the strike of (perpendicular to) the mineralized trend, which gives you more accurate data as to point width and grade (and is the standard approach which goes so nicely into news releases but costs you a lot more money giving you less bang for buck).
So, the trade-off when you know from your model that you are drilling above the projected deposit’s ore zone is you can get the geologic info you need to inform your exploration on the cheap at much lower exploration costs (which effectively translates into less dilution of shareholders) but you lose some ability to generate drill intercepts that are (1) within the core of mineralization, and thus (2) easy for investors to correctly interpret in true/overall context of the deposit.
Personally, I like MMV’s approach thus far, both in that they drilled into shallower “Target 1” along strike (at less cost), but also that given directional drilling issues they have elected to drill deeper “Target 2” – the centroid target – across strike (which should give all us retail investors more comprehensible results from the area where the economic deposit ought to lie). We already know from prior Homestake Mining drilling that there is ore grade gold at depth down-plunge at Standby.
FWIW, my conclusion from my own due diligence is that the rocks are saying that there’s likely a large economic deposit there, and that the next set of holes will prove that. It is true that some juniors are better than others at communicating to the investing public via news releases, but when (as here) the end-game is selling to or venturing with a major gold mining company, what matters most to me is how good the junior is at exploration and whether their projects have the economics that will support profitable mining. Clearly, MMV’s focus is on building its case for a major miner, and its news releases are IMO best read with that audience in mind.
Viewed thusly, we retail investors simply have the opportunity to join in on the ride to such a deal which if all goes well will (to understate it) see our shares worth a whole lot more than they are now. Accordingly, those who don’t like the latest news release are strongly encouraged to sell their stock at the lowest possible price to those of who like this investment. Thank you all such sellers in advance!