RE:RE:RE:RE:RE:RE:RE:Reserve Estimategoldopp,
You are better than me in digging things up.
It's a fair comparison between AZX and PRB, in view of the fact that they are in the same area and also JV partners.
I am not sure if the Special Committee was/is considering a partial sale of AZX properties. Since it would seem that PRB has not done much with that eastern part of the Cadillac Break (containing Sleepy) perhaps PRB want to wait for an opportunity at least to acquire 100% of the property rather than spending over 7M$ in exploration cost to earn 60% or 70%. Why not just scoop up 100%?
Following the same logic, why not scoop up the whole company (in a merger of 2 "equals"). PRB does not have enough cash to pull an all cash deal, but merging the 2 into one would give AZX shareholders some premium over the current value, in exchange for a top-grade management to run the combined company. So, I remain hopeful that PRB is in the running for AZX with an expectation that in 1-to 1.5 years Dave Palmer should be able to grow the resource of the combined land to over 5Moz to make it more attractive to a major (G, AEM...?). May be ELD would be interested as well? (it would be good to ditch Greece and get back home).
AZX should be encouraged to look at partial sale of AZX as well, since the properties outside of the "flagship" Orenada have not been fairly valuated. The non-core out-of-province is one chunk, the other is the JV property with PRB. The cash from one of these two would be more than enough to fund the 2018 drilling program.
Declaration/Disclaimer: I own both AZX and PRB. This is not a financial advice. Do your own DD before making an investment decision.
GH
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goldopportunity wrote: Hey GH -- I found that post you wrote (part of it below) when probe released their RE. It's a simple, yet very effective, benchmark to use when figuring out alexandria's valuation once the updated RE is released. Hope people get a chance to re-read it.
Goldhunter11 wrote on February 21/2018 at 11:24 am.
Benchmark for a potential Merger between PRB and AZX
Probe Metals (PRB) just released its updated resource estimate a few days ago with impressive results. PRB acquired AGE in ~ April 2016. AGE had an RE of 0.77Moz, Inferred. After over 1 year of intensive drilling PRB came up with 1.4Moz (with ~50% of it in the Indicated category). They have an updated Corp Presentation, see link below.
https://www.probemetals.com/investors/presentations/
Why talk about PRB?
1. A potential suitor: So the latest RE for the new Beliveau and satellite deposit on the north side of PRB and AZX JV is now better known (1.4 PMoz), and the value of the company as indicated by the market cap is ~$140M. So the market seems to value a tightly packed deposits (not too tight, but tight enough) is about $100/oz in-situ for PRB. It's a nice number to know, so we could perhaps use it to put a price tag on AZX, after the release of the new RE. Orenada deposit around Zone 4 & 2 look "tight enough". What the market does not want to see is too many small deposits scatterred over long distances/provinces. So, if Orenada has 1Moz can we translate that into $100M?
2. PRB SP did not jump too much after the news and settled down to the pre-release level. May be there are other factors such as PoG or general market sentiment. But, this would present AZX with an opportunity not having to deal with an over-priced suitor.
Read more at https://www.stockhouse.com/companies/bullboard?symbol=v.azx&postid=27594260#Gow4seFJsR1dOyik.99
goldopp