RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:100 smackersmegacopper wrote: BlueChipper2020 wrote: likeike wrote: I agree, and as much as I like this property there isn't a snowball chance in hell it will prove up anywhere near 50 million ounces. I'm hoping for 40 bucks with both fingers crossed. It never hurts to dream though. GLTA
Well toller how many near surface epizonal orogenic systems have
you seen? We are compared an infinitem to Fosterville. That entire
sysytem so far is 150m and 200m down. At Keats alone we have
the chance to have 3 systems and along the entire Appleton fault
how many system will we find? How many will find on the JPB fault?
Why do you think we are spending so much time and resources
down south because there is nothing there? Why are we drilling
full speed with 9 drills when labs are so backed up? Why are we
then upping to 15 drills? IMHO you are just selling this company
short when they are still having problems getting their heads
around how much we have. We are in unchartered waters.IKE
LikeIke,
I agree. My rough and dirty calculation for NFG to get to $100 dollars is 50M ounces of measured and indicated. Not neccessarily proven and probable reserves but nevertheless.
That could happen in what, 20-30 years. LOL. That is not my expectations.
My reasonable expectation, applying a level of conservatism is a trading price between $30-$40 within 2 years. That would be my general expectation. From what we have seen in terms of assay results and multiple zones already, and if we get lucky on Queensway south and perhaps one or more of the other faults, then this is reachable.
Having said that, exceeding the above is possible however I try not to even go there since that clouds judgement. I view a difference between reasonable xpecations and hoping. If this or if that happens and the gold price runs to $5000. LOL. That is hoping.
GLTA
BC
Well said BlueChipper. Another way to get to $100 a share is through mining these high grade zones similar to what was done at Fosterville. Mining three high grade zones simultaneously could produce a lot of gold from a relatively small amount of rock and hence profits would be huge.
This would eventually propel the share price to extremely high levels and not having to prove up 50 million ounces. At Fosterville the mine never had reserves in excess of 4 million ounces but yet Kirkland Lake's market cap hit 18 billion at one point with the Fosterville mine hitting a peak yearly production of around half a million ounces.
So for instance if NFG has 10 million ounces and are producing 500,000 ounces a year for a very low AISC of around $500 an ounce you would be looking at a share price in the $50 to $100 range. There are different scenarios that can get us to $50 and beyond. Another scenario would be gold soaring to $5000 an ounce creating a buying frenzy in the gold sector. All plausible scenarios for NFG. Just some food for thought.
Mega,
You are 100% right and that scenerio is more plausible for the company to reach those levels vs. it being based on exploration. In the real world, you would never be drilling for 20-30 years to achieve some resource target. You would find one or more of the best zones, aim to put them in production and then finance exploration work internally over the following decade(s). That is a real possiblity in the not to distance future with NFG. I think in the next year we are going to have a lot more colour on where things stand and are going after the 400K drill program. We are likely to get more zones, exploration surprises and much more clarity at how many ounces are at Keats and other nearby zones. The Keats and zones in proximity is likely your first 43-101 resource estimate and future mine. That may not be so far off from today.
GLTA
BC