Some DD...and yes, it's worth well more than 0.30-0.40!As usual, I’ve done most of my dd following my purchase of shares in FVL. There are some interesting facts, though, of the company and its Golden Summit project. Below is a brief compilation of facts from the company’s website and sedar.
** “discovery hole” GSDL2001 intersected
188 m of 3.69 g/t gold; included within that is
2m grading 169.5 g/t gold as well as the bottom
20m of the hole that assayed 9.87 g/t gold ** ** follow up hole GSDL2002 was drilled 150 m along strike and was shut down at 165m depth after just entering the mineralized zone returning 9m of 2.4 g/t gold **
** this newly encountered zone is believed to be the extension of the Cleary Vein System that extends from the Cleary Hill Mine to the Dolphin Intrusion **
** Cleary Hill Mine was mined to a depth of only 120 m in early 1900s with an average grade mined of
1.3 oz/t or 40 g/t gold ** (important to note that gold grades typically increase at depth in such systems)
** There are more than
80 gold showings on the property, and approximately
7 million ozs gold was placer mined from the streams that drain from the property **
** 2016 PEA estimated a total production from Golden Summit of approximately
2.4 million ozs at an estimated cost per oz of $842 with a 3 year payback **
**
Net Present Value of the company
@5% assuming a $1500 gold price is
$339 million **
Whew…it’s clear given the above fundamentals that at the current sp / market cap that FVL is undervalued, and even more so when considering the potential of this new discovery to add significantly to its existing resource (and I haven’t included Shorty Creek).
With the recent financing, warrant conversion plus existing cash on hand, the company is well poised/financed to fully test, extend and delineate this significant new zone. Investors can look forward to several months of results, and the accompanying speculation and anticipation of those results, as well as share price appreciation to better reflect the company’s assets. Have a good day!