PAL announced the drilling result from their Offset High Grade Zone (OHGZ), and listed a bounch of boring numbers. Few people paid attention. But those are truly stunning numbers that made me fall off the chair. Because those results exceeded the wildest dream. They break the old record of the highest grade PGM mine bodies. PAL can now proudly claim they now own the richest PGM mine in the whole world, in terms of grams of PGM metals per ton ores. And it's right in their backyard, just a few hundred feet away!!!
This guy is interpolating the highest assay for one interval over the entire ore body - not good engineering. I haven't weighed the assays but it looks more like 10.0. Still good results - but probably not the richest in the world.
Wrong. In interpreting the drill result, it is NOT the average grade, but rather, the highest grade, that counts!
This defies conventional wisdom but makes sense. There is no need to drill multiple holes at the center of the main ore body. A few is enough. Most of holes should be drilled near the outside boundary, in order to find out how big the ore body is. As such, the low grade on boundary holes are NOT representative.
After the last conf call, some credibility was lost. Combined with a lot of dissapointing financial results, I think folks are waiting to see if they blew it again this quarter. If we see break even or a few pennies either way, combined with a slow drop in Pd price, we may not go anywhere. Then again, if they did make a little coin, say some positive things and Pd price holds up, we could see a rally. bottom line, investors want to see the beef. Stories dont cut it any more. The drilling results are great, but we need to have the company run well.
Isn't this frequently the case with small cap companies? Some small company stocks struggle for years until the stock is finally "discovered". Earnings will surely do it, but PAL is yet to report positive earnings. A confirmation of rich mineral deposits will not result in earnings for several years. But the current mining operations by PAL should translate into earnings very soon. IMO that's when many more investment eyes will focus on PAL and demand for the stock will soar. SS
I hope you are correct about it being the richest PGM mine in the world. I'm skeptical of such claims. Why doesn't our great leader, Excell, at least give us non-mining engineers some interpretation of all the data. Just simply tell us how it compares to the present underground mine.
Excell is a highly paid, puppet of Kaiser's. Insiders will load up now that the news is out, and they can't be accused of trading on insider information. No fanfare, just boring numbers. Telli may be right this time, not many people will know what they mean. The lower production costs will give PAL a competitive advantage in the future, but for now it's still an unprofitable enterprise with lackluster leadership. That is what the current price reflects.