another comparison........Last week i mentioned Marathon PGM (MAR) and the takeover of Discovery PGM Exploration (PTD). PTD was a steal at 13 cents. I'm of the opinion PFN is a similar steal at 60 cents. River Valley will be developed - there's no question about it. Ursa Major (UJM) is going to mine their Shakespeare deposit and its 1/3 the size of River Valley.
At the Shakespeare project, URSA Major completed a positive full feasibility study in 2006 which is available on the Company's website at
www.ursamajorminerals.com. The Shakespeare deposit contains a diluted Probable Reserve of 11,226,000 tonnes grading 0.33% nickel, 0.35% copper, 0.02% cobalt, and 0.9 g /t precious metals. Based on the 2006 feasibility study, which uses conservative metal price assumptions, the project produces an after tax internal rate of return (IRR) of 14.5% (20.0% pre-tax IRR) on an initial total capital cost of C$118,473,000. Current metal prices are substantially higher, and although partially offset by a stronger Canadian dollar, there is further upside to the economic potential of the project. The Company is currently in the process of updating the feasibility study to reflect recent metal prices and exchange rate forecasts.
With PGE prices going through the roof and short term (5 years) prices looking strong, I can see the River Valley project in production within 2-3 years. This stock will rapidly climb over the next few months. I can easily see $2-3 before the end of summer.
I can only think of a handful of PGE resources in north America, and with MAR, PTD and UMJ going into production over the next 2-3 years that leaves PFN as the largest Palladium resource to be mined in North America. Can anyone dispute that?