TXRogers wrote: It’s always a treat to have Sir Stranius speak up in our noble court. Definitely one of the braver knights with obsessive rabbit hunting tendancies.
In addition, it couldn’t have come at more timely moment. Following the announcement that Johnathon Campbell has formally rejoined the Pilbara exploration drive via a position within Pacton Gold. It’s a very positive event to see JC’s name back in the action. It is also reassuring to be invested in a company that has demonstrated brilliant deal making, aggressive acquisition of key Pilbara prospects, and has now recognized the importance of JC’s continued presence and expertise in a PAC team that wants to move this story forward. And not just for PAC, but the whole District story.
As an investor in PAC, the most exciting part of the
Corporate Update and Appointment of “Pilbara Gold Rush” identity Johnathon Campbell as Field Logistics Manager is this: Pacton Gold is executing on a Pilbara Strategy plan and it is proceeding along unabated. Regardless of the current gold price and market sentiment. This is a clear indication that all things are a go in this emerging gold district.
As an investor in NVO, PAC, KAI, and DEG (see below), I fully appreciate with Sir Stranius’s analysis and the remarkable buying opportunities that stand before us all. But I also want to restate certain aspects to this investment which I believe are key points. It all remains centered around the efforts and success of NVO throughout the Pilbara. Be it Karratha, Beaton’s Creek, Marble Bar, Egina, etc., I do not consider the efforts of NVO as being in conflict or competition with the other investments. Their contribution to the story is truly synergistic for the District as a whole.
Being flush with both cash and strong corporate backers, NVO has the greatest means to lead the push forward. And along with that fact, the market has priced in NVO’s valuation as such. NVO must succeed as the core driver in this story. Companies like PAC, KAI, DEG NXN, etc. are all positioned to benefit even more. They are the “beta plays” with even stronger upside potential IMO. And although not yet recognized by the market that continues to remain fixated on NVO, these juniors are also making critical contributions that will also enhance the Pilbara gold story in the long run.
Last week, I added DEG once again back into my portfolio. Purchasing a block on the US OTC for 10 cents (US). The company had simply gotten far too cheap in my opinion to ignore.
Just look at the map below.
NVO represents the heart and soul of the Pilbara Conglomerate Gold prospect, but add PAC, KAI, and DEG to your investment package and you pretty well have it all in my opinion. All of these others are at 1/10 the price (or less) of NVO.
For all investors that buy any of one these juniors, we must now await the following realizations:
- that NVO and its neighboring juniors have confirmed that economic near surface gold is widespread throughout the Pilbara basin,
- and that extraction costs will prove to be the lowest in the industry.
When this happens, we all win.
And finally, I would like to close out the post with a congratulatory commentary for Johnathon Campbell. It’s great to see him increase his presence in the story through Pacton Gold. The positive impact for all Pilbara retail investors cannot be understated. We have all become familiar with his posts and blogs, reassured by his insightful on-site knowledge, and by his undiminished optimism for the Pilbara’s potential.
Congratulations to Johnathon Campbell, Congratulations to Pacton Gold. Investors appreciate that both these parties see the great potential of the prospect and are sticking with it.
Tx
Stranius wrote: Pacton has declined ~24% since its C$0.315/sh Feb 26, 2018 closing price when it embarked on becoming a Pilbara gold conglomerate up and comer by announcing its first Pilbara property purchase CCTR. This is perhaps a little surprising given that Pacton has found multiple gold occurrences on its properties (Friendly Creek and Golden Palms) here and here.
With this in mind, let’s examine how far Pacton has come since that initial Pilbara-related press release. Below is a table that shows the summary of tenement acquisitions made that give Pacton ~2,800 sq. km. in the Pilbara: - News 1 - 26-Feb-2018 - LINK
- News 2 - 3-Apr-2018 - LINK
- News 3 - 5-Apr-2018 - LINK
- News 4 - 22-Aug-2018 - LINK
- News 5 - 19-Sep-2018-2018 - LINK
- News 6 - 22-May-2018-2018 - LINK
- News 7 - 16-Aug-2018-2018 - LINK
- News 8 - 28-May-2018 - LINK
- News 9 - 21-Aug-2018 - LINK
- News 10 - 7-Aug - LINK
- News 11 - 4-Oct - LINK
- News 12 - 27-Aug - LINK
- News 13 - 23-Oct-2018 - LINK
- News 14 - 27-Sep-2018 - LINK
- News 15 - 6-Nov-2018 - LINK
- News 16 - 11-Oct-2018 - LINK
- News 17 - 23-Nov-2018 - LINK
In RED in the table above, you will note that Pacton has obtained 7 mining licenses (5 at Friendly Creek and 2 at Yandi), which together with its recently announced strategic processing alliance with Artemis’ Radio Hill plant (link) could potentially provide an early ore processing solution for gold-hosted conglomerate ores from its mining tenements.
The image below provides an illustration of the properties acquired by Pacton (yellow) since the initial Pilbara tenement purchase announcement on Feb 26, 2018.
I posted (link) about how Pacton has stealthily secured the more economical central Egina and Eastern Marble Bar venues assembling a ~2,800 sq km land package (~25% that of NVO), while NVO obsessed with the West. With all of the above having taken place, Pacton currently has a market capitalization of:
101.2M shares x C$0.24/sh = C$ 24.4M
C$ 24.3M * 1/1.30 USD FX * 1/US$1,225 per oz = 15,250 oz of gold
The share count is sourced from Pacton’s latest IR deck here:
[pPAC_Presentation.png
So Pacton is currently valued at C$24.4M or 15,250 oz of gold. This is a compelling valuation for a gold producer looking to secure a land position in what may be a major new gold district, albeit with a very unconventional gold endowment.
I indicated this in my post above but it’s worth repeating:
Even though the story remains focused on Novo Resources as the Pilbara “Crown Jewel”, it is cash rich NVO itself that is actually de-risking all the key Pilbara juniors that particularly those that have a major presence in the Egina region where Novo is currently focused.
Pacton (and its other Pilbara sisters), continue remain a very inexpensive way to bet on the Pilbara given Pilbara's basin wide distribution premise.
~S