Bruce:
On November 9th you wrote:
<<Back in July, Dave Regep had sent me some postings from the Compuserve forum. One of them was a price projection from someone (I don't know who...sorry). This is the now-famous 700.00 share price projection. In it,they give a price projection for the top 100 feet of the first sq.km, using simple chloride leaching, using the values from the prior drill progarm supervised by BD. This share price was 16.90 per share. I figure we can pretty well count on at least half that value by the end of the year.>>
Well I have to admit it was me, so I suppose I'd better explain again!
I estimated a value of $16.90 per share using a _total_ grade of 0.136 opt combined gold and PGE's (platinum, palladium, etc.) "recovered into a chloride leach". This was the average grade stated in the company's PR of April 17, 1996, summarizing the results of the 121 drill hole program which had been overseen by Behre Dolbear in 1995/96.
Since then a lot has happened and I understand that we are now hoping for a report from BD signing off on just the recoverable gold at this stage. However, it looks as though this figure may be higher than the early figures for gold. If it comes in at 0.10 to 0.15 opt for gold alone, then the $16.90 target above will not be too far off. Whether or not the share price will get that high, or even half that high, depends on the market, the degree of belief of the investment community, etc., etc. However, if BD signs off on assay figures in this range and states clearly that most of this is recoverable, I see no reason why it should not move to this sort of price. Whether this will happen before Christmas, I very much doubt. But it would be nice <g>. My own initial target for IPMCF is $20. The $700 figure? Well that's another story....
Hope this helps. The key issue here is "believability". BD is one of the most respected companies in this business. If a report from them does not make people believe, then I'm not sure what will.
Regards,
Howy |
