RE:RE:Hey CounrtyG
TD. The same minions who used a long-term CU price of $3.50 in their supporting valuation of the TRQ a buyout price. As opined previously, perhaps it's a defensible price over 20 years or so, but the demand picture plus inflation suggests it is very low indeed. But the real kicker is shorter term supply shortages in copper should bump the price towards and beyond $5 in the next ten years, and when you discount cashflow to present value, it's those early years that count the most. TRQ got railroaded IMHO.
Gold showing a desire to go above and beyond $2000 today. Or $2690 CDN if you survive in the Great White North - recall Nolan Watson of SSL a commenting about their major commitment to ETG - "there's a lot more gold there than most people understand."
And yours truly pounds the drum that Lift 2, grading at close to 1.5% CU EQ, has been stalled at a resource calculation based on it being supposedly truncated at 725mN of the JV line. But ETG in an NR on holes drilled at 1300mN in 2006 interpreted the core as having intersected the top of the same mineralized system ... as in, it continues, perhaps offset by a fault, but it's there. Or there is something there in the same rock strata that's mineralized CU/AU like HNE and has never been defined or explained.
Another 800m to a KM or more of the highest grade ore at OT in mass tonnage for Lift 2? Call me cynical but do you think 16 years is long enough a stall by Rio Tinto to see what they have? Or has the mighty Zeus already told them. RF told us he could see a Volkswagen down 2000m, and read its licence plate, and they covered this ground with Zeus's turbo IP survey. The value of the target justifies many tens of millions in drilling. The IP surveys done as far back as 2003 suggested continuation of the same ore body at least a kilometre onto the JV property going North, maybe further.
Not to scoff at a 60% price bump, but it's pennies on the dollar if you ask me. TD and the rest of them, ugh. We have the Edison Report ... much lower CU and AU prices, cashflow several years further away because it was done several years ago ... none of my theoretical doubling or tripling of Lift 2 reserves and mine life. Miniscule addition for the huge Heruga potential. $3.40 I thinknthat's pretty darn low too.
And then the other wild cards - TRQ was very careful to keep saying in their annual disclosure that there were other "high priority" exploration targets around OT. Two in particular, the Argo/Zone III on ETG's non-JV'd portion of Shivee West (although they have made a negotiating deal to have it included in the JV assuming they can settle other matters with OTLLC), and the X-Grid or Eastern Target just to the East of the OT trend - both were recommended targets for shallow precious metals deposits typically found around large porphyry deposits as early as 2002, until ETG surrendered 80% of the JV under the Earn-In arrangements with IVN. Very strangely last year there was drilling out at Argo but it was stopped due to interference with a railway line and engagement with local herders. To those of us who have pondered why ETG has been left last public participation standing at OT, one tantalizing possibility might be a valuable shallow high grade gold deposit near OT. You can imagine why it might have been avoided exploring too aggressively pending secure advancement of Hugo North, consolidation of an ownership deal taking out the TRQ minority, and Mongolian ownership settlement as well. A valuable open pit might have deferred and discounted Hugo North and seen Rio Tinto chucked out of OT in favor of Russians or Chinese willing to tackle a low-tech operation on preferable terms. Who knows, all pure fantasy if all you have to go on is actual disclosure by TRQ and ETG. But ya just never know what is under those sands of the Gobi until you drill.
If you haven't read the Edison Report, highly recommend you have a look. cg
https://www.edisongroup.com/research/a-royal-premium-awaits/