RE:Got An Iteresting Email Today Who wrote this bunk? If they thought it was going help stock, guess WHAT it didn't. These hucksters.
Yesterday, we witnessed Anacortes Mining (XYZ:TSXv, XYZFF:OTCQX) stock get crushed 44% on drilling results. I had lots of questions about why, and while I can't get a hold of all shareholders and interested investors, (although I am available for anyone that does), I thought i would send a message to try and cover as much ground as possible. As a recap two holes delivered strong drilling results from the first two diamond drilling holes in the known oxide zone, returning 210m of 1.88 g/t gold (from 28M downhole in ATC-501)while ATC-500 returned two significant near surface intercepts within the proposed oxide pit including:
- 35.9 metres grading 0.64 g/t gold from 8.0m downhole
- 23.8 metres grading 1.75 g/t gold from 49.2m downhole
5 additional holes (of the planned 22) have been drilled, with assays pending and will reported in the coming weeks.
The market reaction does not change the objective of building Anacortes into a mid-tier gold producer.
As you are aware, the Company raised over $20M in its RTO transaction to develop the Tres Cruces project and move it towards production. Drilling the known oxide pit is part of the required process to move the Tres Cruces into Pre-Feasibility Study (PFS). These holes confirmed the high grade nature of the oxide pit and increases the confidence in the resource.
As a reminder, the known ~630,000 ounces of gold at 1.28 g/t remains one of the highest grade undeveloped oxide pits globally and based on the previous PEA, demonstrates a $165.9M USD NPV 5% at $1,700 gold with an AISC of $734 per ounce. These in my opinion, are great economics with a very strong operational team intact to develop this project. With the sell off yesterday, I believe Anacortes represents very good value. With last reported cash of $11.9M (less costs of 7 holes) the Company, has about ~$0.25 share in cash (my estimate), so based on my calculations, its trading at ~$15 per ounce of gold in the ground. You can decide if there is value there or not.
I am always available for a call, or put you in touch with management if you would like to discuss further. In the meantime, I urge you take a look at the presentation and decide for yourself if you see value in Anacortes at this time.
https://secureservercdn.net/104.238.68.196/qj3.450.myftpupload.com/wp-content/uploads/2022/07/XYZ-July-2022-Investor-Presentation.pdf