RE: RE: While We Wait... drill, drill, drillAmen brother, you're preaching to the choir : )
I stated a few weeks ago that we had Bachelor Lake and Barry combined drill programs of 30,000 m. Actually, it is 40,000 m if you figure 15,000m at BL and 25,000 m at Barry. That's one of the main reasons I posted to Coldburst1 "Selling and buying back later" that I was not comfortable trying to time the market, as all that drilling provides so many chances for upside surprises for the rest of the year. Not only is that a heck of a lot of drilling, but it is not so much exploratory drilling as it is development of existing targets and reserves (as you pointed out).
As the May 31 PR said about the new gold zone found at Barry:
"Phase 1 of this drilling program . . . of 15 drill holes totalling 4 127 m was completed during the last fiscal year; all the holes intersected shear zones mineralized with pyrite and/or pyrrhotite and local gold over varying widths".
So every hole they drilled hit gold bearing zone. Barry phase 1 was completed in Nov and Dec 2010, and they are drilling another 20,000 m this year.
With ball park figures of 1 mil ounces reserves and market cap around $60 mil, the market is valuing their gold in the ground at $60 an ounce. If the market valued that gold at a more realistic $600 then there would be 10x increase in share price to $3.00. And that does not include: 1) any new reserves from the current drilling, 2) nor any progress towards becoming a producer by year end, 3) nor any rise in gold price!
The June - July gold price is historically the low for the year; we are halfway through that and gold has held above $1500 and I think few would say that the world outlook for financial calm is very encourageing, i.e., Greece, PIGS, Arab Spring unrest, US budget negotiations. The BL project is based on $464/ounce cost and average gold price of around $1300. So gold would have to plunge from the current $1500 to the $500 level to kill this project.
And finally, Sandstorm and Sprott have vastly more resources than any of us, to do DD on this and they decided to jump in, and that alone makes me feel very comfortable holding MTO., and at a share price at least as good or better than they got when they bought in. As others have pointed out on here, all the gold stocks are down, the market is not just picking on MTO. I think the best course is to sit tight and let the digging and drilling continue. GLTA