Huge upside by grading up https://cdn-ceo-ca.s3.amazonaws.com/1g5pgoj-20210325-DSM-Initiation.pdf
All in all, a very informative report. The following passages are decisive for me:
A key sensitivity in our NAV estimate for Deep-South is the copper grade or recovery (the magnitude of their impact on our estimates is the same). A 25% increase in Cu grade or recovery results in a 74% increase in our NAV.
Currently indicated: 0.31% CuEg / t
Drill intercepts from the higher-grade zone include: - 12m @ 1.81% Cu and 30 ppm Mo from 38m (HB026)
- 56m @ 0.76% Cu and 74 ppm Mo from 18m (HB041)
- 140m @ 0.62% Cu and 57 ppm Mo from 20m (GFMHB10)
- 230m @ 0.59% Cu and 64 ppm Mo from 86m (GFMHB08)
Update:
- HM03: 0.46% CuEq over 156 meters, including 24 meters at 0.65% CuEq - HM02: 0.39% CuEq over 74 meters, including 6 meters at 0.73% CuEq
- HM04: 0.43% CuEq over 26 meters, including 4 meters at 0.87% CuEq
- HM06: 0.47% CuEq over 152 meters, including 30 meters at 0.81% CuEq
- HM07: 0.42% CuEq over 128 meters, including 14 meters at 0.57% CuEq
- HM10: 0.65% CuEq over 36 meters, including 12 meters at 1.04% CuEq My
my conclusion: The market is currently in no way pricing in the great success and huge potential of the current drilling program.
Peter