RE: question for experts ?14keon, you're holding two very good prospects that have many similarities. Obviously they are both situated on former producing properties with great infrastructure in mining friendly jurisdictions. They have similar market caps: TRR $88M vs PKL $76M at the close on Mar 29. In addition, they are both high-grade deposits that is arguably more favorable than low grade. This is where they begin to differ:
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TRR has no defined resource. PKL has 1.2 million ounces inferred (pre NI-43-101).
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TRR is at an earlier stage of development, which would typically imply greater upside. However, it has already surpassed PKL in market cap. With 1.2 million ounces to date, this suggests PKL is undervalued relative to TRR.
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The higher market capitalization implies that the market is assigning greater potential to TRR. That is, TRR is expected to define more than the 1.2 million ounces PKL has already defined, plus, it expects TRR to continue to find more than PKL in the future. In my books, this is a highly speculative expectation. If TRR has future results that disappoint, the stock will be vulnerable to a major correction. PKL on the other hand, has the defined resource to give some support to the share price should their future drilling be disappointing.
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So what about potential? On this point I know very little about TRR; you will have to do your own research. For PKL they now have four to five major target areas:
A) The high grade No. 19 vein that is what has excited the market with the latest release. It is said to be very similar to historic Vein No. 2 that produced several hundred thousand ounces;
B) Deep targets below the former producing veins. Latest results included 134 g/t over 3.2 m. These were actually the highest priority before they found vein No. 19. The veins appear to be increasing in grade (and width?) at depth, which suggests major potential. We have seen this before in the Red Lake camp;
C) Newly discovered "Conduit Zone" in the Albany Shaft area with intercepts such as 35m @ 3 g/t;
D) The Cohen-MacArthur rocks that were hidden under a swamp. First assays pending;
E) Newly discovered Veins No. 20, No. 3, No. 4, etc.
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In summary, PKL has more resources defined to date, lower market cap, plenty of prospective targets. TRR has lots of potential, but could be more vulnerable if drilling disappoints. Thanks for reading, and comments are encouraged.