Here's excerpt from Nov 2019 Bob Moriarty article
There are stockpiles on the property from the old production at the mines. The largest is about 120,000 cubic meters. After getting an agreement from the owners to pay them a 10% Net Profit interest, Providence ran a major sampling test on the stockpile. Results showed good grade that appear to run about 3.0 grams per ton. Remember that alluvial mining is measured in cubic yards or cubic meters so 3.0 g/t gold is about 7.5 grams per cubic meter and that is wildly economic.
This material has rock about one inch in size and would need crushing before processing. I have suggested to management that they bite the bullet, rent a portable crusher and run some material through just to prove the gold is there. I have commented many times in the past that 43-101 hasn’t caused the production of a single ounce of gold. Counting gold is not mining. Mining is the art and science of extracting minerals from the ground at a profit. You can count until the cows come home and it won’t put a cent in your pockets.
Providence is at an interesting place. They have about 6 million warrants outstanding. Up until December 11th they can be exercised for $.15 apiece. From this December until December 2020, the exercise price goes up to $.20 and in the final year before expiration, the exercise price is $.25. That creates a giant opportunity for astute investors.
Providence is absurdly cheap at $.11. It has a current market cap of about $4 million CAD but underground potential for 1-4 million ounces of gold and 20,000-30,000 ounces sitting on surface in the stockpile.
Providence is going to start processing the stockpile in a mini-sample. When those results backup what their testing has already shown, they will scale up. It will cost little more than chump change to start testing and once potential investors see there is gold there I expect the shares to go higher. But those 6 million warrants will be a sort of cap until the 11th of December. Should the price go up to $.15-$.20 as I expect, warrant holders may well sell shares to exercise warrants. That will bring in about $900,000 to Providence and fund a serious stockpile production program. That in turn will finance the drill campaign for 2020 without further dilution.
It’s a good plan, cheap and doable. I own a lot of shares in Providence bought in the open market and in two prior placements. I see this company as a potential giant home run. The stock will be cheap until the 11th of December and I don’t see it being cheap after that.