RE: .0051% MoS2 = $35/tonne rockExactly...
I just got off the phone with Mr. Davis, and he is obviously both surprised and frustrated with the reaction so far. As he indicated, and as I have expressed on other boards, the market these days is all about numbers - its wants those high grade intersections and does not care about putting into context the meaning of those numbers.
What has been found at Gamma so far is exactly the same is what they are now mining at Endako, which is highly proftiable, and what Davis had projected they would find. The market does not understand that its much, much cheaper and easier to mine low grade material at surface in an open pit, than its to go underground to mine higher grade orebodeies. The estimated cost of production for Gamma is $8/lb, What is Moly selling for these days??? Bingo...
So the value of higher grade intersections at depths too low for surface mining is substanstanially dimished by the fact that the ore would have to be mined from underground. In fact, you require much, much higher grades for an underground mine than you do for an open pit mine to have comparable profitability. So in the case of Gamma, we do not need high grade intersectiuons to prove up a economic and profitable Moly resource - 0.51% will do just fine, and is all that was ever expected.
I do not envy Davis, as market stupidty can be a very frustrating thing to deal with...
Stateside, is not the retailers who carry the burden of stupidity that does us the most harm. Rather, it is the game-playing antics and shortsightedness of the MMs that do us the most harm right now. When speaking with Davis, the frustration he was very evidently experiencing would not be the result of the dismay of only retailers, as their collective holdings in LWC are not nearly as market moving as the institutional positions.
Cthom7, although I have always valued your more balanced view than that which is often expressed on this board, Ii think you are off the mark with your latest comments about the grade. When you state that the grade is low, what are you comparing it to? I think, you like the rest of us, are a bit frustrated, but we have to keep comparing apples to apples and oranges to oranges. Otherwise we do ourselves a huge disservice.
I asked Davis about Gamma West, and all he could say that is there is definitely Moly there. He spoke of two distinct types of ore and that they are now beginning to wrap their brains around the structure of Gamma West.
When asked, he also me also mentioned that he is contact with JK at least once a week... You can take from that what you will depending on your views of Kaiser. I take him to be a very logiocal, methodical, and no BS type of guy, who does not play the promotion game at all. All one has to do is do some research on him to realize that... I've been a subscriber for years.
The bottom line here is that LWC is in the unfortunate position at this juncture of being on track to prove-up a very economic open pit moly deposit, but the market does not care right now because they do not like th numbers that they saw without putting to context the meaning of those numbers. If things continue as they are, LWC will have no choice but to simply make it glaringly obvious to the market what they have by producing a resource estimate supported by copious amounts of drilling. Maybe then, just maybe they might get it... In the interim, its going to be us 'stupid' retailers who suffer.
Regards,
Bentonstocks
Bentonstioc