Post by
Mookster3 on Jun 21, 2022 9:49am
Grid enterprise value is only 0.3% of Donner currently-drill
Winter drilling on the Donner North West dyke, is indicating about 2.0 mmt @ 1.2 % LiO2, and previous 2018 drilling on the Main dyke indicated about 1.3 mmt @ 1.5% LiO2 (see charts in previous posts). Considering spodumene concentrate (6% LiO2) pricing of $2800/t, these two dykes are already showing US $2 B in ore value (Grid’s share, US $1.5B). Grid’s current enterprise value of $5 mm (Market cap of $16mm - $7mm cash - $4 mm CNC shares) is 0.3 % of this amount. Seems kinda low, don’t ya think, for a high-grade deposit of a hot commodity (0.3 oz/t gold eq.) that has minable widths (underground ramp operation or shallow pit transitioning to ramp), with much more tonnage to come over the summer. What’s more, the project is located only 40 km from Canada’s only currently operating lithium producer, Tanko Mines, and Tanko already has an option in place to purchase Donner ore at commercial rates. Should Grid choose to partner with Tanko, the mill and tailings facility are already built. Only four holes were drilled previously into the North West dyke (in 1955), so really, this should be considered a new discovery. Yet the market seems unwilling to acknowledge this.
The above ore value estimate doesn’t even include Grid’s Makwa/Mayville copper/nickel assets which will be the subject of a revised PEA over the coming months. The revised plan is assessing a lower tonnage, lower capital cost, higher grade, mining scenerio, that stays below the threshold of federal government involvement and thus allows fast tracking (< 3 years to production). They are already in discussions regarding offtake agreements that could minimize the need for equity financing.
Comment by
shortsighted905 on Jun 24, 2022 10:40am
good job on the analysis Mookster3 - although I like the implied optimism, it looks like the market doesn't really care about this, or most other good stories out there at the moment... I'm considering averaging down on my GRDM holdings but I am admittedly somewhat nervous this could go even lower... GLTA