Probe Gold Inc T.PRB

Kryptonite To Producers

[Goodluck395]

In Kitco's Paul Harris's interview with Matt Geiger,

Paul was discussing that royalties were "kryptonite 

to producers" ( FILO deal)

It got me thinking about royalties in relation to 

Probe Gold . 

If it's kryptonite to a producer, then there must be 

tremendous value to a developer like Probe Gold.

Is it worth a dollar a share???

[biotechguy1]

Yes, well I looked at the grades again and they are decent when you compare to detour open pit and IAM gold.  Dave P can drill for another year ... I suspect we will see a 3.00 offer in a week or so with a breakup fee... then another offer to 4 from someone large ... if  someone picks up PRB and 03.  They get : 12-14 million ounces open pit and underground to around 16 million

[NoCaratBoy]

Last iteration of Probe went for $5.50 with gold at $1250 and 5 MM ounces. Now Probe has 10 MM ++ ounces, gold at $2650 and $5 a share is a stretch? Why so low?

[mtzorfas]

Because everyone commenting on here has gotten their sacks kicked in for the last 10 years in a completely dead gold mining M&A market.  Things can change in a hurry and if we start to see money flowing back into the space, and the price of gold keeps going up, then the price should be more like $200/oz. or MORE.  At our current market cap, we are at $25/oz.  Probe should get

[Goodluck395]

Gold up US$35/ ounce today  Probe Gold's value trading at US$25/ ounce  Someone  Please help me understand this? Doesnt

[biotechguy1]

Well, when probe permitted the passage ability to haul to underground Goldcorp bought Probe... and have been underground mining high grade and shipping it down the road ever since. Living proof? ,Grade is King.  The mining is permitted the processing takes place at another site.  1150 an ounce at 7 gms per ton is lucrative.  Is 2600 an ounce and 1.6 gms per ton the same ? Don'

[Goodluck395]

Bio If you expect a bid in a week or so, then we should retain a 4% NSR. Could be worth a substantial amount of money  once this project is in production 

[biotechguy1]

GL Yeah in an ideal world.  I don't think Dave P is looking for an ongoing tie. I believe we will see 4-5 tops CDN. with a 40-50 million $$ kicker assuming Dave P keeps detour.  Might also get a 4 or 5 for 1 towards new Probe Co.  Hard to get past a billion as a non producer ?  I hope I am wrong ... 7 bucks is wrath of god money for me !!  not shopping for my

[mtzorfas]

I'm not making any predictions, and I think you are more likely right than me...but that being said, I don't understand the logic behind it.  This isn't super high-grade material, but it's relatively high-grade compared to others in Canada.  The project is very de-risked.  It's in a great jurisdiction with infrastructure.  And those factors are the ones that

[mtzorfas]

Also, Goldcorp paid 204/oz. for Borden Lake in 2015 when the gold price was definitely well under 1500.  Probably closer to 1300- half what it is today.  

[biotechguy1]

Gold was 1150 Jan 15 ( bitcoin was 660 usd )  the underground deposit was getting wider and deeper and also had higher grades.  The 3D model stopped at the Tembec land ( the forestry people ) Dave P needs gold corp to get the mineral rights to that land ... how much have they pulled out ?? Well no indication from Newmont.  Essentially 3.5 million 1.08 GMs per ton and 3.4 million at

[mtzorfas]

Great insight as always, BioTech.  Can we at least settle for 4-5 bucks US?  You do know that we Americanos also like fast cars?!  Although with two young kids, I gotta fund the college accounts first...may have to just settle for a ride in your Shelby GT!

[biotechguy1]

Could happen 4 or 5 bucks.  I try to take in the practical and the largest open pit resource is pretty close to Eldorado.  The other 4 areas are expandable. It is a decent mine and a major won't want to lose PRB to a financed mid tier.. producer.  A ton of majors swimming in cash !   I think 5 CDN ( about a billion ) is a stretch but I hope I am wrong.   News has

[Goodluck395]

Bond loves to drive an A M. Never a dull ending with 007!

[Goodluck395]

Mtzorfars  You are 100% correct  BUT the potential acquirers have done a  great job from their perspective, to tamper down  the expectations of junior mining shareholders. They definitely own the narrative.