Hi Gold Speculator.
Great post again and I appreciate you laying out the timelines on Gruyere. I did some research myself a year or so back on Gruyere's development to understand how they proceeded from discovery to mine as I figured being in WA, it would be a good analog to understand. My research but didn't get into such precise detail as you laid out, so i appreciate your time to map out its development history.
One of the interesting things about investing in resource plays is often the market can leave a lot of money on the table so to speak , due to uncertainty but more often impatience and often it can way over do it and under price development assets (over price the risk analysts would say but more often I think its just impatience is the dominant market driver) leaving easy money to be made too. There is definitely a sugar hit that comes with discovery that many who come to the exploration space like, and so once discovery phase passes these type of investors depart as the "sexiness" is gone. It certainly will play out here too and I expect we could track well back in ensuing months. Hopefully but near term resource announcements will continue to act as a floor on the price.
Part of me feels but there is such a compelling discovery here at Hemi and unlike Gruyere (GOR) , I actually think DEG will be a lot more successful on exploration discovery of more Ozs nearby (Greater hemi region) and I do think its a regional play along this whole shear zone belt and that significant transported cover through this zone has been hiding a significant resource that has been hiding so to speak for millions of years. Its been often stated this is a different style of mineralisation, and now they know what they are looking for, I am pretty confident they will find more. All of that said but , to really unlock value for shareholders now they need to both walk and chew gum, continuing proving up ozs and develop and now execute a mining plan, no small order, but that is why we needed more firepower, which was why Jardine was bought on board.
Given this, you do find yourself thinking, well if they can execute a mining plan on this Hemi asset successfully, the cash generation from this mine will self fund a ton of nearby exploration so after this next round of inevitable share dilution to fund the open pit mine, everything else discovered after that should be self funding. Extrapolating that concept and if they are onto an actual belt that does deliver 10-30 M ozs over time, this company could turn into a $ 10 / share beast easily. That's not going to happen tomorrow, it would play out across a decade or so but its a real chance if it is a regional play not just an isolated deposit. Every astute gold investor knows gold deposits tend to run in zones/belts and often along shear zones so I just cant see there only being 1 Hemi in this area.
I know this is a deg board, so apologies to you and readers for the slight off topic question, but I am guessing you are a past or maybe current investor in GOR ? What do you think of Ian Murray who I understand was the Executive chairman/ Ceo of GOR through the period of the discovery and development of the Gruyere deposit ? He strikes me as a pretty switched on guy and a "doer" . Interested to know your thoughts on the guy ? Reason I ask is that I have taken a position in Matador mining (Mzz) which he now heads up and I am wondering how hard to go on this one. I see a lot of similarities between this and DEG say circa 2016/17 which is when I got into DEG. Lot of potential there in Newfoundland and like DEG they are sitting on a very big along trend shear zone . Every time I listen to Murray he impresses me with his no bullshit style.
Pf
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