RE:RE:Property of Merit this is the most sensible post I've read here in a long while
This is going to sell based on potential for less than the fantasy numbers people have floated about The next owner will pour capital into drilling it
everyone here will make money. The buyer will make a fortune
goldenI wrote: Attention Stockhouse: Please give me an edit or delete functionality! This is ridiculous! Reposting.
I think this report is well structured and provides a solid understanding of where the Ishkoday is now. What it is not is a Mineral Resource Estimate or an Economic Feasibility Study. I can see the value in releasing it as it does support the current valuation of Laurion but I do not see it being a catalyst for an acquisition.
It is what it says, an independent assessment of the value of continuing exploration of the Ishkoday. While it does present an estimate of potential resources somewhere around 7M GEOs, it makes the point that there isn't enough data to generate a MRE to that effect. When Equinox purchased the Hadrock (Greenstone) from Premier Gold in 2021, Premier Gold had already completed a Feasibility study that included a MRE of ~5.5 million GEOs (probable). They had almost 700k meters of drilling in a strike zone roughly the same as the Ishkoday (9 square km). At that point the Hadrock (Greenstone) was effectively valued at ~510 million dollars. Laurion has a drill database of ~80k meters. To be fair, Premier drilled deeper than Laurion but my point stands. There is a lot more drilling to be done. I would estimate around ~150k to get to ~230k meters total but that is a rough estimate using a a distance of 50 meters between holes over the area.
Ultimately this report is a positive and validates Laurion's efforts. If there is an acquisition on the table based on the report I think $1.50-2/share would represent a significant premium. Higher than that, I think would require a drilling program designed to define the resource. At $250/metre...the costs run into the tens of millions quickly.
In the end, I am fairly neutral on it, and that seems to be in line with the market. I have viewed the Ishkoday as a "property of merit" for a long time. It is nice to see that validated by an independent party, but I suspect that Cynthia has her sights set higher than $2/share. I just don't think it is there yet.
I have a target of 2025. I think as I have said before the Greenstone is important. They are targeting production midway through the year. Equinox is interested in buying out the remaining 40% from Orion Mine Finance. That will open up a lot of capital for Orion Mine Finance, and I have to assume that they are already pretty familiar with the Ishkoday story. Just my thoughts.