RE:RE:RE:RE:RE:RE:drill results NEW FOUND INTERCEPTS 146.2 G/T AU OVER 25.6M Thanks MegaCopper, very reasonable conclusions.
I find the facts that you cite vis-a-vis the comnparison to KL very, very interesting. For those who don't get it, KL is mining at 1,000 meters deep, and NFG is finding all their bonanza intercepts at about 300 meters. That means NFG can mine using the OPEN PIT method (read about 1/4 cheaper in AISC than what KL has to pay). To me, that is a HUGE advantage. Am I right on this?
One does need to undertsand, however, that these intercepts (e.g. 25.6 meters at 146.24 g/t) are still subject to being reduced by 60-80% because of the angle/dip of the drill hole - in other words, the 146.24 g/t may end up being only 60% of the 25.6 meters, but that would put us at 15.36 meters. However, in my lay mind, that is not necessarily a disadvantage - as long as the intervals are 2 meters or more we can mine it. Ultimately, as they continue to drill we will get the ultimate geologic model that they are no doubt continuing to build with "every" hole it seems. Good times ahead.
Another consideration we ALL must keep in mind: How much price appreciation can we reasonably expect for a company that has yes some great drill results but does not yet have a mill? That's a tough one - anybody who has any comparisons to such situations in the past, that would be great information if you have it! I know Aurelian down in Ecuador was purchased by Kinross for about $1.2 Billion (22.00 per share, about 36.5 Million shares O/S), based on 10 million ounces of gold and 14 million ounces of silver, as determined by drill results. But I'm gonna say that was a fire sale price, as the government of Ecuador had changed the mining laws and basically seived the property to the detriment of Aurelian (I wonder which government officials got paid of fin that deal).