RE:RE:I believe that the easy money...megacopper wrote:
RazorRamone777 wrote: has been made for now. I'm thinking the S/P will see a bump on the release of 007 & 015, but the rest do not have the quantity of quartz veins that accompany the higher grades. Perhaps after this drill program they will re-evaluate and get back into the higher grades that the market loves to see. GLTA
Well the easy money is always made by the early investors who take the most risk. This play has been de-risked now that SGD has confirmed a huge deposit of gold is present on the Rogue property. A lot has changed in the last few months. The fact is this deposit has a large high grade core (1.25 g/t to 3.0 g/t) and most likely a very large lower grade halo (0.5 g/t to 0.8 g/t) that is bigger and better than any other gold deposit in the Yukon.
Further drilling will confirm the outer limits of the discovery and hopefully they will drill a deep hole down through the sweet spot to determine the depth of the discovery. A lot of the estimates of how much gold is present at the Valley target are using 400 to 500 meters as the total depth figure since that is what has been confirmed so far. There is a very good chance that this robust intrusion type gold system goes to a depth of 1000 meters and beyond. Other similar deposits have been confirmed to such depths. If it does than you are looking at an insane amount of gold that will make the Fort Knox gold deposit in Alaska look small in comparison.
Investors still don't realize just how good this discovery is in my opinion. I don't expect all of the holes to be like hole 7 but I would think there will still be lots of holes around 1 g/t over two to three hundred meters which will be further confirmation of this incredible discovery. I still think a major gold company like Barrick or Newmont will definitely want this asset and be willing to pay in excess of one billion dollars for it. And I have only based this on the Valley discovery. These guys have several other similar targets. If they hit at Gracie and confirm a similar intrusion is present with economic gold grades than this will be an astronomically large gold discovery.
Still early days and only the drill results will tells us just how good this one is but it's definitely very large. There is no doubt about that given the facts so far. At current levels SGD has a market cap of almost $400 million using fully diluted shares. The Valley discovery looks to be several times larger than that of Newmont's Coffee deposit and Victoria Gold's Eagle deposit and both of those were valued between $500 to $700 million. The Coffee deposit was bought by Goldcorp (before Newmont buyout) back in 2016 for $520 million when gold was only $1300 an ounce and there was less than 3 million ounces confirmed at the time of the buyout. I'm thinking Snowline will eventually be valued well north of one billion dollars by the market. It's much larger than those two discoveries and SGD still has a lot of blue sky potential. Anyways that is what I think. But what I think and what the market thinks are two different things.
I totally agree with all you have said. The only difference being that you are a buy and hold type guy, I am not. For now I took profit and deployed it elsewhere. Once they get back into the higher quantity of quartz veins per meter, I will reinvest. Like I have previously stated, I believe there will be a bump in the S/P when the rest of 007 & 015 are released, but after that, the rest of this program doesn't excite me. Even though the lower grades are a great resource builder, the market doesn't seem to react to anything under a gram per ton. Because I gamble to make money, I go with what the market likes, not what builds the resource. GLTA