RE:RE:RE:RE:FDR: Fine-tuning a resource estimate & price targetIn the 6 months of 2023’s drilling operations, we did around 12,000 meters total. But that was mainly with just one drill rig. Three rigs, each doing ~60 meters per day during normal operations, would take less than five months to complete the 30,000 meters planned for this year. Which is probably *not* enough to “properly” prove up the full value of our resource, I would think.
But are those additional 30,000 meters (42,000 meters total drilled by Founders) enough to convince a major to buy us? I say yes. The Buese, Parbo and Lower Antino zones will each get enough attention to indicate their possible worth. Maybe the Guanaman and Maria Geralda zones too (both of which I didn’t even bother including in my $11.25 price target model). The already completed trenching and auger sampling, plus the tailings grade testing work on our easily estimable volume and weight of tailings, should tip the balance and make us irresistible.
The final straw, if any were needed, would be a rising gold price. $2,500/oz or better would be nice, but even a solid, sustained new high of $2,200 probably gets some kind of June bidding war started for FDR. Likelihood of gold performing? If the first Fed interest rate cuts don’t come in March, by June they’ll have either started or anticipation of their start will have driven gold to new highs.
Maybe a June buyout would end up leaving some money on the table, but, as speculators well know, getting less money sooner may be better than waiting for the full amount. In this exciting world, there are so many promising stocks to buy with our FDR profits.