Hi Beno,
I think there is a fair chance that FNT will sell-off EL2531 (after JORC) or just take a royalty under a JV agreement (probably with the new operators of ML104). Funding and operating a medium sized mine is a major undertaking, and I am not sure whether FNT can do this alone. Time will tell.
IMVHO, Tolukuma EL2531 and ML104 (combined) could easily top 1.5 million ounces. Having said this, an extensive drilling program at EL2531 will be required to confirm this. If the JORC Resource of EL2531 is far less than 1 million ounces, I doubt that it would be worth FNT's time and money to further explore and develop EL2531. If I am right that EL2531 (alone) is over 1 million ounces (JORC compliant), you are absolutely correct that FNT are currently very valued.
My valuation, if EL2531 has 1 million ounces of gold (JORC compliant), is that FNT should then have a MC of at least A$50 million (A$50 per ounce "in the ground"). By my calculations, in about 1 month's time FNT, will have 650 million shares on issue. Therefore, I calculate the SP being worth at least 7.7 cents (without any value being placed at all on FNT's Murraydium Rare Earth Project).
Looking at FNT's entry into RE's, FNT's Murraydium Project is highly prospective for an ionic clay hosted rare earth deposit. Ionic clay hosted rare earth deposits are far less expensive to explore and develop than deep "bedrock" types of RE deposits i.e. Murraydium should be an extensively mineralised and "near surface" system. Therefore, FNT should be able to make a lot of exploration progress at Murraydium on a "shoe-string" budget (like they are currently doing with EL2531) and quickly develop a JORC Resource. After this, FNT could decide to take on a JV partner to do the financial heavy lifting, including the development of a mine and processing plant.
Depending on now things pan out, and which project is developed first (?), I could well imagine Tolukuma EL2531 funding the development of the Murraydium RE Project. Or vice-a-versa? Fortunately, Tolukuma EL2531 is also relatively shallow. The main problem with Tolukuma EL2531 is its remoteness and the lack of roads and infrastructure. Having said this, Lole Mining Limited, the likely new owners of the neighbouring Tolukuma ML104, will probably no doubt already have plans in place to address this problem.
Cheers.
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