DRE 6.25% 1.5¢ dreadnought resources ltd

DRE Chart, page-265

  1. 345 Posts.
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    Best support is back at 2.7...

    On past experience, (riding Chalice up from 13 cents last year), I suspect we need to see more support build between 2.9 and that red cross above 4.

    On the one hand, there should be plenty of support here, because (since 2.7cents), they've hit some interesting REE's.

    On the other hand, they've been reporting Palladium-Platinum&Gold at the Mangaroon JV, lumped together into a single grade of 4.7g/t, (ref: Page 3 of April 7th 2021 Announcement), when those 3 have vastly different values.

    Gold isn't a PGE, so it seems odd that it's been lumped into the same grade with them - especially when the specific grade of Gold on those 5 tenements will be critical to the clause of the JV, where DRE only gets to keep all the gold if it it is over 75% of the total mineralisation.

    At this stage, with Palladium being worth far more than gold, and with the specific gold grade being a much smaller portion of that 4.7g/t, it seems more likely that DRE will not be entitled to 100% of the gold by the time mining starts... except as DRE's normal 30% share by then.

    But if I am mis-interpretting that part of the JV, I'd be grateful to be corrected.

    Yet there's still the dilution from all these extra shares, in a company that is already very heavily diluted.

    I'm only in since 1.9, so I don't have much experience with DRE yet, but I think for the long term health and growth, it would be best if a level of support between these 2 blue lines can establish for at least a week before heading up again...

    I personally think that between 4 and 5 can be justified before the extra shares, so it will be interesting to see where it settles.

    But a good Gold Bell can change everything, deservedly.

    And yes, I know my charts are grossly over-simplified. I prefer them that way,

    DYOR & GLTAH

    https://hotcopper.com.au/data/attachments/3399/3399604-8e512cdcd14da1e84d6efb09260b5752.jpg
 
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