RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:Roger's 43-101 FB Post
As I have been, ever hopefully prophesying, the 43-101 has been our holy grail (next to sold) but combined with a feasibility study also known as a bankable report it’s pretty rock solid. The only question then is whether it’s $300 or $450 per ounce.
Of course they are always working on the 43-101 report as every assay and the methodology put into producing it are used to prove the result of the 43. GRB shows that the 43 isn’t required to sell at a premium but in the aftermath of the sale Barrick CEO Mark Bristow said it was crazy for Kinross to buy it without one.
My thinking is that just saying we are starting the process will lift the price as it means we’re closer to the end. As for their value to the buyer, it’s better than worthless but anyone spending billions of dollars is going to do their own independent work to produce and verify the same info as in the report. What is the cost to do their own $50,000 against $5 billion. It also helps the buyer by keeping his shareholders happy and helps him sell them the purchase and any bank they want to borrow money from for the purchase will want to see one too.
They could drill for years proving more producing areas and whomever buys us will without a doubt continue to drill. That said, as we have, I believe, already proven better than 10 million ozs according to Roger’s comment, “better resource estimate than previously expected” we should already be worth $12-$20 per share. Do we need to show more? Other than the corporate mandate to maximize shareholder value will drilling more add enough to make the delay worthwhile?
Cheers