RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:Buyers Thank you. I don't diagree with you (or matlas) that the SP is not necessarily indicative of Laurion's value for the reasons you mentioned, however I do think that it is related to the risks involved.
In a MRE, you have indicated and inferred resources. The standard on determining indicated resources is typically a large number of drill holes in a concentrated area. Inferred resources are the results of data modelling based on channel samplings, geoligical surveys, and whatever other inputs are given to the model.Infered resources have a much lower confidence score and are not likely to get the prices you have indicated per GEO.
In January 2021 Premier Gold released their 43-101 on the Hadrock Mine. Premiere Gold was acquired by Equinox in March of that year. The Hardrock mine was renamed the Greenstone Project and it is with 40 minutes of the Ishkoday. Equinox, being a Barrick Company would probably follow the same criteria in evaluating a junior as their parent, so I thought I would look at the 43-101.
These line stood out:
The mine design and MRE have been completed to a level appropriate for feasibility studies. The MRE stated herein is consistent with the CIM definitions and is suitable for public reporting. As such, the Mineral Reserves are based on Measured and Indicated Mineral Resources, and do not include any Inferred Mineral Resources.
Laurion has data on 283 holes representing 40,728 meters on the Ishkoday.
The Hadrock 43-101 lists hundreds of thousands of meters of drilling in roughly the same size strike zone as the Ishkoday.
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The Mineral Resource estimate covers a corridor of the Hardrock deposit with a strike length of 5.7 km and a width of approximately 1.7 km, down to a vertical depth of 1.8 km below surface. Mineralized zones were interpreted in 3D using Leapfrog GEOTM software based on a litho-structural model and the drill hole database. The drill hole database used in the estimate contained 312,408 sampled intervals from 696,125 m of diamond drilling in 1,682 holes, and 11,871 assays from 25,961 m of RC drilling in 481 holes. Channel samples were not used in the estimation.
In Laurion's case, assuming their internal data does indicate 10M+ GEOS, a large amount of that is infered. That is, it is based on their data-modelling.
I base that on the amout of meters drilled and a visual comparision of the drill maps of Hadrock and Ishkoday.
I think this may be an issue. A 43-101 compliant to the CMI, would not factor in infered resources. There isn't a possibility that they have 10M+
indicated. They simply don't have enough samples.
So Laurion have two options, try to increase the strike zone, finding new veins from which they can hope to get some good results pushing up the SP for when they need to raise again and at the same time growing the infered resources, or/and go back and drill (a lot) in between the existing holes to try to take the infered to indicated.
Drilling is expensive, and Laurion do not have the capital (right now) to drill the tens of thousands of meters to produce a traditional MRE. One that would have true value and wouldn't leave their shareholders disappointed.
It isn't the best situation in my eyes.
I am holding because I do believe there is value here above $0.35 but a sale between 500 million and 1 billion ($2-4/share) is not outside the reality.