FDR: Digesting the JRI interviewA few days ago we got a very nice state of the union update from Colin Padget when he sat down with JuniorResourceInvesting. Padget spoke from Suriname, where he just finished another visit to our property. It would appear our CEO strikes a good balance between delegation and the hands-on approach. What is without doubt is he communicated a lot in a very concise manner in the short interview.
Yes, FDR now owns a fourth drill. Yes, it will be in action by January, or even sooner. Yes, it does get easier to integrate new drill rigs each time we do it. Yes, the deal for the additional hectares is coming soon too. Perhaps by year end. Our December could jam-packed with good news.
Regarding an increase to our land package, it never occurred to me how the gold majors might put a premium on additional upside potential from unexplored territory. And here I thought I was the extreme dreamer! But it all stands to reason, if you are a conservative major wanting to make acquisitions that will move the needle on your massive bottom line
And Padget deftly sidestepped the question of prospective gold zones in the new land for which we’re negotiating. He seems to think all of Suriname is full of gold. And I can’t blame him. So imagine the FDR stock price surge the week after the land deal closes when we can say: “Founders will commence trenching work immediately on the ten new hotspot zones our initial grab samples have indicated.”
But back to the near-term anticipated news. One tidbit I was not expecting was Padget’s apparent suggestion new assays would arrive first from Lower Antino, not Upper Antino as I would have guessed. If we were at 8 holes completed at Lower a few days ago, we’re probably at 9 or 10 today. Another nice initial look at another brand-new gold zone.
Suits me fine – that’s probably going to give us the biggest immediate momentum to FDR’s stock price. More so than even drill results uniting the Donut sub-zone with the rest of Upper Antino. Because that kind of Froyo news seems inevitable at this point.
Nor was Padget deterred by the lukewarm market reaction to the first Buese assays. He is very happy with what those cores showed. And if he’s happy, I’m happy. But in any case, he expects three separate drilling news releases over the next 10 weeks. One from each of our three currently active zones. Outstanding.
B2Gold? Yes, they were carefully chosen from among what sounds like a good range of suitors. And possibly their corporate culture was the deciding factor. Their geos get along great on the ground with our geos – now that sounds like a recipe for a strong strategic partnership.
Chris Taylor already integrated and contributing his hard-earned wisdom and experience? Check. Rob Cohen (in a separate interview) singing our praises? Check. Gold still rising? Check.
That last item needs a little elaboration. We are poised on the cusp of potential political unrest in the United States. Unfortunately. But given FDR’s advantages of having a simple business model (digging holes in the right places) to deliver the single most universally demanded product (money a.k.a. gold), and a full-to-the-brim corporate treasury, few companies are better positioned to ride out any gyrations in the stock indices.
Gold is increasing in value relative to the US dollar for a number of reasons, but I would rather have less US and global political turmoil in exchange for less expensive gold. We FDR shareholders don’t get to make that choice, however.
What we do get to choose is how tightly we hold onto our positions. So keep a firm grip on those shares, my fellow travelers.