Originally posted by kojak78
Maybe the big ore body is deeper. But harder to find? Likely below Ohio Creek open-pit ore. Apparently at the AGM my rough estimate of open-pit mineable ore at nearly half a million ounces was confirmed.
Well, it seems many investors still do not understand what that means. At these grades that half a million ounce deposit is economically as much worth as the average multi-million ounce deposit. Cash costs will be something like $100-200 and with the road, royalty etc. AISC will be below $500. A company maker. If exploration results confirm this Troy will be a ten-bagger.
The deeper deposit that is likely to be located right below that is a different story. If you read my previous posts I wrote potential to be a ten-bagger and then again.
The market is just sleepwalking and not recognizing the potential. I have experienced that once before nearly 20 years ago. When I did research on a lot of junior mining/exploration companies and decided against one, because it looked too good to be true. The name was Goldcorp. I won't make a similar mistake a second time.
Ohio Creek near-surface ore is high grade and has a mining permit. Mining that will not exhaust Troy's growth potential at all. The larger deposit will lay below that. Why should it be different? There is a large deposit below Smarts and a large one below Hicks. The big difference is that the grade at Smarts is 3 g/t making an underground mine marginal or slightly profitable. A possible underground mine below Hicks may happen one day when the gold price is way higher (2 g/t). The grades at Ohio Creek mean there is no question if there will be an underground mine (but be careful because there is no drilling at depth yet, so I am only speculating).
All we have to do is wait for the next set of drill results.
Hi Kojack
yeah I saw that Samboy mention they are confident hopeful their is a 500k deposit at Tallman. Just think Samboy is a little too over optimistic LOL
Never the less Ohio Creek and Tallman look very promising but the market is obviously not as optimistic as Samboy, the market wants to see more evidence that a bigger deposit exists. The drilling has been quite limited and hardly gives an indication of the size of the deposit.
What we see at Smarts and Hicks if that gold occurs well below the existing pit but being so narrow makes it difficalt to extract via open pit and not big enough to justify going underground. Not quite the case with the Smarts underground, I believe the grades are much better and it's a decent size ore body but with the cap ex required and high costs of underground mining the POG needs to be higher to make it viable. Think they will do the primary work on Smarts and sit on it until the POG makes it viable.
I think the stock market is quite different now to 20-30 years ago, back then investors/trader were much more speculative. Also these day the reporting standards are much more strict, you can't suggest to the market there is a possible 1m ounce deposit without evidence to back it.
As time passes and try does more exploration and drilling they will get a better understanding of the geology that in turn will help identify the big deposits. To date relatively little modern exploration has been done and with so much near surface gold all over the place it would be very distracting.
