Hi A,
"Bulk as in perhaps 10". Sorry still don't understand what bulk refers to. Number of holes? Share price? [Though a bulk SP of 10c would be very nice for sure.]
You raise a number of interesting, if debatable, points.
"drill holes on the boundary" puzzled me a bit until I looked further at the announcement. The gold in soil anomaly is in the NE corner of the slightly irregular shaped claim block. The strong 2Km long anomaly does appear to be closed off at both ends but there may be further zones along the same strike. IMO there is enough coverage of the primary anomaly within the current claim block.
The PDI Toro JV does cover a lot of interesting ground with exciting prospects which they are gradually testing with soils and drilling.
"They won't need someone for prefeasability...large enough to do that on their own" Maybe, maybe not.
Toro has potential commitments at their flagship Mako property in Senegal which may make capital a bit tight IMO.
At their Mako Project Toro made a specific effort to comply with Jorc 2012. It may not be a priority but if a mine were to be developed at Boundiali an internationally recognised resource estimate would be better than not. PDI's Ann gives Jorc applicable reporting data in its appendix.
Take over of PDI? If the price were right Aurora might agree. Without such an agreement TO of PDI would likely be difficult. If I remember correctly some here on HC have said Aurora might consider increasing their 46% stake in PDI.
You are right about the top SHs in Toro (RCF (20%) Tembo (18) Macquarie Bank (15) African Lion (10) Laurium and Sprott (both 5%) June 2016 Announcement). Do you reckon they would stump up their own cash for the ??$50M plus to start up a new project at Boundiali? They may have the funds but IMO some other form of financing would be more likely.
That Tembo are listed is possibly interesting for RER (SHs )where Tembo's Ndovu (?subsiduary) is looking to acquire up to 70% of RER and do a DFS and exploration. The 2015 scoping study (now disallowed by ASIC) there put mine set up costs near $40M. Again where will this money come from? Tempo coffers, CR, other? If from Tembo/Ndovu then Mako/Kalongwe and ?Boundiali.....lots of loot.
On another point the management of both Toro and Tembo are IMO stacked with a lot of highly experienced mine makers and geoscientists who, also IMO, would like to see new mines formed.
On your final point why would anyone sell at these prices. I note you bought in at around the 0.7c level so you are sitting on a fair paper profit. Some bought at even lower prices and might sell with that much profit available depending on their investment strategies and/or finances.
Yesterday I said I would look into JORC requirements. With respect to drill density there doesn't appear to be specific numbers (e.g. Line spacing 50 or 100m etc). On reflection this makes sense because different deposits require different density of drilling to define at certain levels of certainty. For example Witt's Gold and Bushveld Platinum can get away with 100s of meters hole spacing whereas for the typical gold deposit (perhaps Boundiali) 50m is probably just adequate for inferred resources.
Say Nyangboue was drilled out on 50m line spacing it would need some 2-300 holes to 100m at least or 20-30000m if the entire anomaly was tested. Then add another 1-3 thousand metres along strike to ensure closure. This would only cover the main corridor! This is so cart in front of the horse atm that I'll leave it there.
Results of the remaining 63 holes will show if something like this may come to pass.
GLtah
Lots of limited research and opinion above so Dyor
PDI Price at posting:
1.8¢ Sentiment: Buy Disclosure: Held
(20min delay)