Down on news?The only explanation I can give for our SP languishing today is that themain headline of the NR wasn't very flashy at 278 m of 0.38 g/t.Regardless this intercept goes a long way to proving that there isindeed mineralization in the south and if you account for the drill/bulksample problem we've got an intercept of closer to 278 m of 0.6 g/t.
I can't get my head around how we are still trading at the levels we arewhen comparing to other companies in our stage of exploration or simplyon ounces of gold in the ground.
By the time OSK stated this NR in December of 2006 it was trading in arange of $4-5 with a high of $5.55 when gold was sitting at $700 anounce. OSK when adjusted for shares diluted at the time (90 million) still had a market cap 5-6 times GBB's at the time of this announcement.
Osisko Exploration Ltd. (OSK:TSX-V, EWX: Deutsche Boerse) is verypleased to announce the first National Instrument 43-101 compliant,inferred resource estimate from its 100%-owned Canadian Malarticdeposit, located in the Abitibi region of Quebec. RSG GlobalConsulting Pty Ltd. of Perth, Australia ("RSG Global") hasauthorized Osisko to release results of their inferred resourceestimate on the main portion of the Canadian Malartic gold deposit.Based on a lower cutoff grade of 0.5 g/t Au and using variousstatistical approaches, RSG Global has estimated an inferredresource between 6.4 and 6.59 million ounces of gold.
While I don't believe we have 6-6.5 million ounces of gold yet I can conservatively say I think we're easily looking to prove that amount up by the end of our Phase 3 Drilling. Looking at the Preliminary Block Model alone we have potential for at least 3.5 million oz as we've come up with a potential for 2.4 to 2.6 million ounces to a depth of only 70 m, SINCE we have drilled to depths over over 150 m + and over 300 outside the block model. GBB has also stated that the Eastern Extension Long Bars Zone 2 is shaping up to be another Preliminary Block Model on its own, and the company hasn't even begun talking about the high grade potential near the Big Bert Vein and Aukeko mine. So if we were to only come up with another million oz near the Aukeko mine we would still be looking at a potential for 6+ million oz of gold at the exact same grade as Osisko. I challenge you to look through Osisko's Phase 1,2 or 3 drilling and find me a homerun hole that sent OSK to the moon but I've looked and there are none, OSK simply released constant NR's with decent depth grading between 0.7-1.4 g/t at best.
OSK's SP now even with just their Malarctic Deposit and not considering their Hammond Reef deposit with Brett Resources is being given a value of $4 billion. They're currently being valued at $400/oz on their 11.4 m oz while I'll admit that it's no longer inferred and is in the 43-101 category we are still trading at a pathetic $25 an oz, giving us a market cap of around 75 million for our 3 million oz. We're getting no credit for our Phase 3 drill program underway, none whatsoever for the 10 M in the bank and certainly NO credit for the Eastern Extension as I believe our Preliminary Block Model has already proven up 3 million oz at the depth it's recently been drilled to. While I understand that our oz are still inferred we are still in arguably the best mining jurisdiction in the world and are the most comparable company right now given deposit type and location to an early stage Osisko therefore trading at 1/50 it's market cap simply doesn't make sense. Even if we have 1/3 the ounces OSK does (11.4 / 3 = 3.8 million oz) and are only getting credit for 1/16th ($400/oz vs $25/oz) what they do per oz we are still trading at a bargain. Gold was at $700 when they were valued at $5.00 + a share, that means at best their cash costs were $375 an oz and they were making at best $300 per oz out of the ground, we stand to make closer to $700+ per oz yet we're trading at a fraction they were? No matter how many times I run the calculations and comparisons it doesn't make sense but that's fine just more time to pick up dirt cheap shares in an explorer with immense blue sky potential. We've proven up an Eastern Extension with a potential for at least 2M + oz, we've added 8 M to the bank, got a 94-95% metallurgical recovery rate and have completed another 20,000 metres of drilling but we're still being given the same value by the market, something isn't adding up and it's not GBB's Granada deposit.