The PLS comparison is possibly the worst one to make. FGR and PLS are at polar extremes.
PLS has Measured/Indicated/Inferred Resources, Proven and Probable Reserves and a DFS supporting the project.
FGR can't even estimate an exploration target let alone an Inferred Resource. Without technical studies supporting the mine who knows what the operation is going to look like. The company's recent commentary regarding why they can't wrap a Resource around the project doesn't give due regard to the most significant deficiency in their project - historical stopes. This, IMO, is the true reason they can't achieve JORC. Trying to compare this type of deposit to geostatistically complex narrow vein gold deposits is technically flawed, that these complex gold deposits still manage to achieve JORC compliance makes a mockery of this statement.
FGR is fast becoming a tech stock, its mining operations are extremely high risk from both commercial and operational perspectives.
From an operational perspective, encountering stopes is bad, encountering previously unknown stopes is worse. One word - inundation.
I like FGR for its tech, but its mining for me is too risky. They should just leave the mining to the locals, lock up ore purchase contracts and concentrate on producing graphene.
FGR Price at posting:
11.0¢ Sentiment: None Disclosure: Not Held
