GREY:ETPHF - Post by User
Post by
sam2100on Mar 29, 2011 10:59am
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Post# 18355145
FED
FEDSTB has the largest market cap of any potash jr. in the world, currently approx. $500 million. One of the main reasons for STB's premium market cap is the ability to use open pit mining which has a low capex/opex and an up to 90% potash recovery rate as compared to solution mining which has a 20% recovery rate. STB had obtained this market cap by compiling a maiden jorc that used only three drill holes.
FED has the same potential as STB. Three of STB's holes places substantial shallow high grade potash on FED's land concession in the inferred category. STB will be releasing during the next month three additional holes which will most likely place substantial additional shallow high grade potash in FED's land concession in the indicated and inferred categories. FED will also start their drill program in the SW corner of their land concession in a few months. This is why FED stock price could move strongly to the positive, just like STB's did.
When Dundee announced that Allana had the potential to use open pit mining in addition to solution mining, this was received very well by the investment community and the the stock moved to the positive as well.
Also, note that STB has the highest market cap of any potash jr. in the world without obtaining advanced financing. However, Lorry the CEO of STB though has indicated that financing institutes are tripping over themselves to participate in STB's financing .
It is of interest to note that Eric Sprott has a substantial interest in the Danakil Basin Players. Sprott took approx. $10 million of Allana's last pp, owns 18% of South boulder and took a substanial number of shares in FED's pp.