I TOUed my post because it contained wrong numbers/assumptions.
Here are some , more or less, accurate numbers....This has nothing to do with whether BBX finds a pot of gold , but no harm in examining certain business transactions.
# RAB (Rotary Air Blast) costs around $6/meter....it is the least penetrative (up to 70 meters deep)
# RC (Reverse Circulation) costs $30 - $40/meter.....Up to 200 meters deep.
# Diamond Drilling costs $75 - $100/meter.....This is the Rolls Royce of drilling.
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The drilling contractor is charging 1000 shares/meter (the deal was struck when BBX was trading around 1c)....$10/meter , now over $20/meter.
We don't know how big the drilling campaign is , but dilution is unlikely to be great ( perhaps 5 or 6m shares).....The drilling contractor will likely be a seller soon after the share issue on the conclusion of drilling.
I am of the view that the majority of drilling will be shallow RAB , but could include some RC.
BBX Price at posting:
2.3¢ Sentiment: None Disclosure: Held
