"DRE now owns 100% of a tenement that FQM helped improve. That’s a win."... to quote Foghorn Leghorn of DRE's recycled gold prospect fame, NO, no,no... you're doing it all wrong!
The life-cycle of a conceptual resource project starts untested by anything with unknown but all upside. Then targets are generated through mapping, geochem, geophysics etc that may demonstrate more or less than the upside originally hoped for. Then targets are drilled and again, upgraded or downgraded based on results. The more drilling again to see if any 'smoke' was indication of a material deposit or simply low-grade alteration but nothing economic. Once all the targeting tools have been used, and targets generated drilled ,and results show no economic mineralisation is evident... the odds of 'jagging' an economic deposit from blindly pattern drilling the target reduces exponentially with further work (unless a new targeting tool or radically different geological model comes along).
The project's 'value'' falls precipitously from 'highly prospective' to another 'close but not medal' idea that litters the history of exploration. No surprise, insult or embarrassment.... that';s how exploration works and the odds are stacked 100:1 against finding and ore body of economic potential, and 1000:1 against finding a mine. The surprise imo was just how aggressively DT sold disappointing results to the market when more knowledgeable people understood what the results meant for the project's prospectivity and value! For many on HC it was a classic example of slavishly following company optimistic spin, vs considering the reality of results data in front of them as substantiated by some those more circumspect...
Let's go to the video tape and see what was happening behind the scenes and why Money Intrusion was dying a quick death. Firstly, the nickel price isn;t much changed today from November when the last results were released 8th Nov 2023.
Same 8th Nov release, DT makes a song and dance of "re-assessing the entire Money Intrusion" which is industry speak for "going back to the drawing board". Sometime after he was telling us in a some presso i can't be bothered looking up, paraphrased as 'there WILL be 2 rigs at Money early in 24 following up these great results".... when he had no way of knowing FQM's true opinion or intentions sorry to say.
That last Nov'23 7 hole programme looked for all the world like a last gasp effort for FQM to test the 'shallow keel' prospective theory, vs a deep keel or simply feeder dike theory (in which case it's too deep or wrong setting so move on). Please allow me to unspin today's release.
4 holes require diamond tails, means that the RC rig bottomed out at depth still in dolerite (no shallow keel, or no keel at all) 3 holes identified sulphides. (read very skinny, very low grade dolerite contact halo sulphides ubiquitous along Booka trend). Where are the recent IP survey results... 3 months is more than enough time to process some pretty images?
That is another set of disappointing results from a failed geological model (failed in the physical trap identification, not the fertile nature of dolerite dike). The very large disseminated-net-textured theory just lost another limb spurting blood. Makes no sense to just keep blindly drilling holes hoping to jag an orebody... it's high cost, low probability dumb exploration. It all reads very Monty Pythonesque from my perspective (Black Knight, tis but a flesh wound).
"Dreadnought continues to receive unsolicited interest from major mining companies regarding the project and expects to build on the success to date with another well-credentialed party."... talk is cheap, but good luck, and I'm genuinely interested to see what sort of partner and terms eventuate.
DRE Price at posting:
1.8¢ Sentiment: None Disclosure: Not Held
(20min delay)