It looks like the market wanted more Oz's, and the grade I thought would have been closer to 0.8g/t. And these aren't cheap ounces. They run an expensive business model of optioned projects that have considerable annual payments and a lumpy final exercise. The company raised/spent $13m in last 24mths on ~17km's of RC drilling for <500kOz. Not great bang for buck. However, looking forward, they are ideally located and I can see Kinross being interested as their next source of feed for Fort Knox. What would Kinross pay for inferred ounces next door? They paid USD$100/oz for 70% of Manh Choih, which is 1.2MOz at 4g/t and around 400km haul to the Fort Knox mill. Surely FXG could get close to this metric if you add back the haulage. Even at a third $35/Oz there is some good value to be had here.
FXG Price at posting:
5.0¢ Sentiment: None Disclosure: Not Held
