RE:RE:Re: drill results Every day there are posts here that show that people are not understanding the sampling and estimations, and yet the people here represent the segment that is more informed, so then you can imagine how far away the market is from really understanding this.
Read more at https://www.stockhouse.com/companies/bullboard/t.pvg/pretium-resources-inc?postid=21966308#eHAt41wUsU5KUDQX.99
Very insightful point!...I must admit that when PVG crashed immediately after the Strathcona bombshell, I understood very little about the technical aspects of the controversy. It just seemed to me that the probability of Snowden's estimate being as out of line as Strathcona claimed was very low, considering the nature of the deposit and the small sampling they were basing their analysis on. And I suspected that the market -
presumably knowing even less than I did - was hugely overreacting on the downside.
I've since become much more educated about sampling and resource models, in large part due to the many well-informed and knowledgable posters on this board. I'm more convinced than ever that I made the right decision to initiate a position, but I'm glad I didn't hesitate to act on my gut feeling. With apologies to Donald Rumsfeld:
Sometimes it pays to know what you don't know, especially when you know that most other people don't even know they don't know it.
I continue to think that it is far more probable that the deposit is being underestimated, and possibly greatly so, rather than the opposite. The worst case scenario is that the Cleo monkeywrench was a fluke, but even under those unlikely circumstances, Brucejack is almost certainly a economically viable deposit, especially if one is expecting much higher old prices by the time mining is seriously underway. There is nothing but upside beyond that baseline scenario, provided Pretium manages its cash carefully and avoids a inopportune takeover.