Ok kiddies, I get to say that because I am probably the oldest fart here. Actually my pic shows me very good, I am a lot older and uglier, as I always say I have a face made for radio. I may be moving slower, but the brain and memory is still good. VBG
I am here and there this Thanksgiving weekend and thankful I am alive to do it and so are some of my friends and family. For Zonte shareholders we should be thankful for the news to follow and the Captain of this ship, but they did not fill up the rocket fuel yet.
In my day we did not go over news release, stock charts and data. We went to the local bars to meet up with the drillers on the rigs and get first hand what they seen coming out of the ground. Of course they were not suppose to say much so took a lot of drinking and I was one of the smart ones and had a pocket recorder. Still can't believe some of the things said and heard, but I remember climbing tops of hills and mountains to get a cell signal to my broker.
The best promoters and hypsters were in the west like Vancouver and Calgary and once they sucked all the money they could there - they moved east to try. Investors in Toronto, Montreal and Eastern Canada were more laid back, patient and would go in for the long term. That is about the only thing that has not changed. In Vancouver they are still flipping paper for nickles and dimes and moving to the next deal while out east they are still investing long term, but making bigger gains in the end.
Of course Terry is an Easterner and if not for that the whole treasury would have been blown in the Yukon and the stock could have been a hype play. Terry could have easily released a glowing description of the drill core at some point and the stock then in the 30s would have probably doubled, but he did not want to mislead investors with hype.
Imagine if the stock was at 60 or 70 and dropped to 20, a lot worse than 32 to 20.
With his long term focus to build value, he did the most effective drill program for the $$. He told me he would drill 3 targets, because that increased the odds of a discovery. He did that and got his discovery on the Two Four zone, there is something there and looks like it was improving at depth.
Some say he could have rushed core to get results quicker and yes that is true, but it would just blow the treasury and the results would not be any different. For a small initial 1000M drill program, he did it the right way and reported best way, all at once to give the most accurate picture.
Drilling just 1000 meters in 5 holes, the 1st go around on a virgin property, many would have missed on all 5 holes so now we at least have something to follow with another drill program next year.
Obvious the market was expecting something different or better, I would guess high grade, but these are not high grade systems, sure they can have their narrow intersects of high grade.
From the Yukon Geological Survey, link in Ron's report.
“The Eagle Zone is located approximately 3 km southeast of the original occurrence location,” meaning where they first were sampling veins. I highlight this because McConnells Jest is a large property and this drilling could end up kms away from a future discovery.
Also from that report:
“Although individual veins grade from 10 to 30 g/t gold, a typical 1.5 m sample interval which includes both the vein and granodiorite host rock ranges from 0.8 to 2.0 g/t gold in the ore zone. Silver values are generally lower than gold values.”
In Hole 4 - Zonte had 20.45 meters of 0.72 g/t
and 20.28 meters of 0.69 g/t with 8.02 meters of that at 1.13 g/t
So it is right there with what is typical at Victoria. Zonte just needs more holes and longer intercepts and that will come in time. It looks to me this drilling was on the edge on the zone because the other hole at same location #3 had lower grades and hole 4 was improving with depth.
Also note hole 4 was drilled at a 45 degree dip, so the intersect that started at 61 meters is only about 30 meters below surface and 142 where it ended is less than 75 meters down.
That is my take on the drilling.
For the stock at 20 cents is ridiculous, it was cheap at 32, less market cap than all it's peers. At 20 cents it has a market cap of $8.6 million, peanuts.
Any one of Zonte's 3 projects could have a higher market cap.
I sold the last of my GGI Friday and bought more ZON. I normally don't do that but when I see 2 so opposite extremes it is a no brainer.
I think I can easily make a 50% or 100% gain from ZON here at 20 than GGI at 2.25
ZON 20 cents $8.6 million market cap
GGI $2.25 $202.5 million
So GGI is 23 times higher than ZON on a visual drill hole description – simply amazing
I agree with GB, a lot if the trading Fridays was shorts and computers. I would bet we see a big surge in short volume with Oct 15th report