Oh dear dear Pachino yes the price of gold has dropped in the last 5 minutes. Should bring out the impatient sellers. Yes that 1.7 billion resource is worth not much. Here is a copy of T4P post for anyone selling good luck with your losses.
I like Juno...
1,602,831 tonnes @ 16.16g/t Au (indicated and inferred)
With gold currently about AUD$1,430.00/ounce the above resource represents just over $700 of metal value for very tonne of ore treated.
Predominantly shallow and still open in many directions, this high grade resource SHOULD see something eventuate in the current gold centric environment in my opinion...just a mater of when...and what shape?
Being relatively advanced, I assume EXM will not want to miss the current opportunity to cash in...but they must do so at a fair price given the potential options for self-funding with minimal dilution.
There are ways EXM can fund development here...and I hope the Company is being pro-active enough to explore all options?
Whilst we have a reasonably sized resource at high grade, there are small pods of bonanza grade, relatively shallow, easy to get to ore, which if mined even with pick and shovel, would reap the Company significant revenue for minimum outlay from which further development could be funded.
At Juno, several holes intersected multiple high grade zones near surface, such as...
Arguably, one tonne processed at a depth of just 16-18m (down-hole depth), from hole JD800-90, will potentially reap several thousand ounces of gold.
Whilst such high grade spikes in drill results can be misleading over smallish intersections (just a small solid vein of gold in a 25kg sample of core gets interpolated up to a 1 tonne equivalent), one might argue however the intersection in JD700-41 (from 32-40m down-hole), of some 7.3m @ 603.4g/t, and JD800-14 (from 16.76m-35.97m down hole) of some 19.21m @ 333.09g/t may well represent a result that more accurately quantifies the average grades of the surrounding ore at these specific locations?
So...perhaps a quick bulk sampling program here, say as little as 1,000 tonnes targeted at the extremely high grade pods, might arguably see an average grade approaching 300g/t Au (as per 19.21m @ 333.09g/t in hole JD800-14)...and something in the range of say 10,700 ounces produced?
At current prices, that would give the Company something like $15m, less production costs, which I suspect would be relatively modest given the ore treated is shallow, extremely high grade (assume $15k of metal value per tonne of ore @ 300g/t...lol) and relatively modest in scale.
By way of example, an area of just... 4m wide, 10m long and 10m deep will produce 1,000 tonnes...this is much smaller than your average farm dam!
A sampling program of this scale could be completed relatively quickly.
Who knows, if hole JD800-90 (1.53m @ 12,883.5g/t Au), can produce a block of just 1.5m x 0.9m x 0.5m of ore from this zone (enough to fit in your average sized garden trailer), EXM would get something like 1.7 tonnes of material, containing around 780 ounces of gold...or some $1.12m at today’s prices...for a trailer full!
Arguably, this little exercise could be completed in as little as week, and at a cost of no more than say $100k at most, including costs for all labour, equipment hire, transport and even toll treatment!
Plenty of ways to skin a cat...but do management have the motivation here...I may well pop over to Tennant Creek for a visit in the next month or so...just to see how serious they are?
Meanwhile, gold rockets, the world panics...the Aussie dollar falls...and EXM stands there like a stunned cat in the headlights!
Cheers!
DSE Price at posting:
0.6¢ Sentiment: Buy Disclosure: Held
(20min delay)