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From the "other" board:
bullionfan: "Previous exploration at Hay Mountain has drilled off 100,000 tons of 3 grams per ton gold, with assays up to 33 grams per ton and no closure in any direction. The Hay Mountain prospect has the potential for several hundred thousand to several million ounces of gold." In other words there is drill proven gold of commercial interest at Hay Mountain.
The quote is from Phelps-Dodge and partner Jaba, Inc., predecessor to LBSR. PD dropped out of the partnership because FCX wanted to buy them out without any exploration properties attached.
3 grams gold ton is high grade, 33 grams (1.164 ounces) is a gold miners wet dream. At current prices that's about 18 million in gold from at surface shallow holes. "Several million ounces of gold" would be worth from around 6 billion dollars, but proving that will take ZTEM, luck, and a lot of drilling.
VP in AZ: Right. Now take a look at the "GeoChem/AeorMag" illustration of Hay Mountain that can be found at the company Web site. If ZTEM confirms, and later drilling, this is one whopper of a projects, a real monster!
Here are a few things to consider when looking at the diagrams.
The project area is as big as the 125-year mining history of Bisbee, AZ 15 miles to the south.
The footprint for the molybdenum anomaly is about 4 miles across.
The copper anomaly is about 2.5 miles across.
The indicated presence of gold measures nearly a mile round, and
palladium, a platinum group metal, is suggested in a slightly smaller area than is gold.
And these suggestions are not inclusive the other metals most often associated with deposits of this nature - silver, zinc, lead, selenium, etc.
Like the Pebble Deposit in AK, which reveals similar footprints, these elements should be layered with gold, silver, palladium, and moly on top of copper and other base metals deeper into the earth. We already know that a goodly amount of gold is on top, at and near surface, so there is potential for heavy cash flow to come quickly and at low cost, JUST LIKE PEBBLE, but grades may be higher here, and development costs much lower.
Now, if one can grasp the stunning significance of this, there is no need to mention that the footprint associated with Rare Earth Elements at Hay Mountain is about twice the size of the next largest anomaly. Having said that, and having made a comparison to Pebble, PEBBLE HAS NO RARE EARTH ELEMENTS in the mix (but as yet there is no evidence that the REEs existing here are of any economic consequence).
Anyway, if this hits, it will be more like winning the Word Series than, say, scoring a home run at mid season.
...worth gambling a few shekels, no?
The entire story hasn't been written LIGB.
C'mon Bella... Jump back in. If nothing else, it's the cheapest lottery ticket you'll ever find at these levels.
With respect to the just released maps, can someone please comment/explain the difference between "AeroMag Data" and ZTEM? I assume the distinction is one of degree of accuracy, but I can't be positive. I emailed Tracy to ask and will let you all know what she says.
Great insights Gem. Thanks.
A birdie told me! Yuk yuk yuk! (sorry gang, I'm feeling silly 2day... Star Trek opens in theaters in 15 days)
A liability is not the same thing as a debt. Every balance sheet in the world has two sides: assets and liabilities.
I would guess that you are looking at the wrong and/or old financials.
You are one of the indispensable ones on the board. Thank you EC.
Wow... amazing. My broker would charge me $7.95 for that trade.
From VP in AZ from that "other" board:
======================================
From "Seeking Alpha", Mar 29 2013, 08:35
from Seeing Alpha as of today's date.
EXTRACT -
"Incidentally, this ratio is signaling that gold miners are oversold right now. David Einhorn is perhaps the most famous gold-miner bull. As of Sept. 30, 2012, his hedge fund Greenlight Capital owned about 6 million shares of GDX, making him the fund's fourth-biggest institutional shareholder. Einhorn said in November 2011, "With gold at today's price, the mining companies have the potential to generate double-digit free cash flow returns and offer attractive risk-adjusted returns even if gold does not advance further." GDX was then trading at nearly $60 a share. Now it's trading near $37. Ironically, Einhorn's fundamental case has actually played out. Gold miners have ample cash flows right now and are scaling back their capital expenditures. They're raising dividends at a swift pace."
"Despite seemingly attractive fundamentals and technicals, the gold-mining sector has terrible structural features that should give the long-term investor pause. Foremost, the capital expenditures are huge and ongoing. Most of the easily mined sources of gold are tapped out or mature, so to keep production going, miners now have to process lower grades of ore, dig deeper, or venture into unstable regions where infrastructure and rule of law are nonexistent or a shambles. Not only that, but major projects often run afoul of unexpected cost overruns or disappointing yields."
The above plays well into the LBSR's Hay Mountain project - in mining friendly Arizona - where mineralization (gold, copper & other elements) IS AT AND NEAR SURFACE with several hundred thousand ounces of HIGH GRADE gold already shown from previous drilling (in partnership with Phelps Dodge, before they were sold and left the exploration business). Therefore, upcoming ZTEM and drilling (along with pending results from additional REE testing) are very likely to set a fire under this stock. ...not debatable!
VP in AZ
Well infiltrader, considering LBSR's ability to execute on previous NRs I'd say you're right to be very skeptical, but "never" is a mighty long time. At any rate, if ZTEM can't be done in the timeline given it would be a serious blow to credibility since lack of funding can't be used as an excuse because the ZTEM money has been put in a segregated account. I have to admit to being nervous about this.
Hey gang, here is a really good panel discussion on PM exploration moderated by Rick Rule. Panelists are John Kaiser, Brent Cook, & Mickey Fulp. Not a waste of your time IMO.
There is no link nor is there a PR banks. No one (outside of JB & NAK) know for sure it was a bullseye, but I'm gonna go out on a limb and say that ~4.5 mil. wasn't forked over because 1 core turned up some broken rocks and soil. I think the current price of LBSR reflects this lack of public information. The recent accumulation may reflect non-public information and/or speculation. Place your bets gentlemen.
Thanks Elis.
Hey Gem, do you or anyone else happen to know if the CT (confidentiality treatment) order has an expiration date? I would love to know what they are keeping so hush-hush.
Darn Leif, you're a poet.
Banks my man, I miss your Larry Kudlow avatar.