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Pastimes : Zenyatta Free Speech Board -- Ignore unavailable to you. Want to Upgrade?

To: pop123 who wrote (2097)	7/17/2015 9:52:46 PM
From: stuffbug	3 Recommendations Recommended By GrumpyGus hoov youngun Read Replies (1) \| Respond to of 22811

sounds like they do not want to see any NR with pricing letters outside of a PEA no matter what pop, possibly, but that's apparently not their original position. Here is the conundrum. Suppose a gold explorer completes a shallow drill program for a potential open pit mine and reports the drill results. For the sake of simplicity, let's say that all holes are relatively consistent with each other and the average grade is 2 grams of gold per tonne over 50 meters. Subsequently, the company performs metallurgical testing and reports average recoveries of 90%. An investor can readily obtain the current gold price (or average one year price) and calculate the gold value contained within one tonne of ore. All this without any mineral reserve estimate. Now, let's apply the same scenario to a graphite explorer. The graphite explorer completes a shallow drill program and reports the drill results. Assume that the holes are relatively consistent with each other and the average grade is 10% carbon over 40 meters. Subsequently, the company performs metallurgical testing and reports average recoveries of 90%, final purity of 99.99% graphitic carbon and lists the particle size distribution. The company also identifies potential applications for its graphite and sends out samples of its product to interested parties. With what degree of certainty can an investor calculate the graphite value contained within one tonne of ore? One would probably be very lucky to estimate the actual value within plus or minus 50%. Now the company receives expressions of interest from interested parties who indicate a price range that this graphite would command in the current marketplace. Is it not better for the company to release this information so that, from a knowledge perspective, the graphite investor is in the same position as the gold investor? Or do we just allow this information to eventually leak out to well connected individuals who will use it solely for their benefit? In both cases, there is no reserve estimate. With the gold project, investors can easily determine the value of one tonne of ore. With the graphite project, investors will be lucky to estimate the value within 50%.