RE: RE: REPLY: this is a takeout stock. full stop Some interesting tidbits here:
1. Galaxy Property-gold copper, Kamloops, B.C.
New Gold's property is just on the other side of Discovery's property. New Gold trades around $11.00. The market value of the company is $3.6 billion.. The company is building a $650,000,000 mill to process a resource of 1,000,000 ounces of gold and 993 million pounds of copper. The mill is near completion. All infrastructure is in place including a haul road and a tunnel underneath the Coquihalla Highway.
Discovery's property is expected to produce 3 million tons of .65% copper and .2 grams gold with an 88% recovery rate, netting the company about $75 million. The Galaxy 43-101 Technical Report
After the current financing is completed, there will be 44 million shares outstanding. Discovery believe's the stock could see $1.00 based on these earnings. However, Teck Corporation, the predecessor on the property stopped its drill program given low gold and copper prices at the time; but it stopped in mineralization. Discovery's drill program will drill to deeper levels. With current excellent gold and copper prices, exploration possibilities are very good. New Gold is currently drilling right next to Discovery's property. In Discovery's meetings with New Gold, Discovery's management stated they would consider cash or shares in a purchase transaction for the property or a take over of Discovery.
On the other side of Discovery's property is a signed joint venture between Abacus and KGHM Ajax Mining, the 9th largest copper producer and the 3rd largest silver producer in the world. The company is valued at $37 billion dollars. KGHM is building a 60,000 ton a day mill to exploit a 503 million ton copper-gold rich deposit expected to produce 110 million pounds of copper and 100,000 ounces of gold annually and they are looking for other properties in the area one of which could be Discovery's.