Yale another Fort Knox ???The similarities in grade and deposit size are striking ... Am I alone in recognizing this? The company alludes to it, so apparently it is not lost on them. Fort Knox has a low grade high tonnage deposit with an average grade of .89 gpt and is producing nearly 400,000 oz per year.
When Yale announced the recalculation of previous drilling it seems to me that the previous drilling was looking for high grade low tonnage and they were marginally successful (hence the cut off at 11gpt) But with the re-calculation and a drop in cut off grade to 3gpt the results change dramatically. Suddenly we are seeing a deposit of enormous tonnage and an average grade closer to Fort Knox(from my amateur calculations).
Another $200,000 is being spent this year on drilling, which was wholly unexpected, which also tells me that there is more than a little excitement for the people and companies 'in the know', though the general volume on the stock seems to speak differently. I think Yale needs to find a way to let the world know whats going on...
ASC Industries (ASD TSX) has twice as many shares o/s and way way lower grade and tonnage than Yale ??? (Tintina gold belt again) Whats that all about, is it over promotion on ASD behalf or under promotion on Yales?
I know the markets are tough, but gold seems set to go higher again, and I am inclined to own value over promo in the long run, and as I see it Yale is certainly worth owning.
Mike