Paycore Delivers 21.1 g/t AuEq Over 10.1 Meters. Still Cheap
Paycore just went public ten days ago and I wrote about them. The company has $12 million cash in the bank and a market cap as of today of $55 million.
On May 4, 2022 Paycore delivered some outstanding results from their historic 3.9 million ton FAD deposit. The latest hole released, GH21-05 showed 10.1 meters of 21.1 g/t AuEq. Broken down it was 6 grams gold, 267 grams silver, 4.9% lead, 15.9% zinc and 0.2% copper.
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I don’t think I have ever heard any other writer mention it but the entire purpose of drilling is not to define a resource. Even geologists will tell you that is the purpose but of course that is rubbish.
You drill to make a decision if you have a mine or not. If clearly you do not, you want to kill the project just as soon as possible and move on to greener pastures.
The FAD deposit was a mine when gold, silver, lead and zinc were a whole lot cheaper than they are today. The mine was closed because of too much water for the pumps of yesteryear to cope with. That is not an issue today.
The FAD mine had a historic resource of 3.9 million tons (not tonnes) worth just over $922 USD a ton today. It will go back into production and they already have high confidence in the historic $3.5 billion USD resource.
And they are adding high-grade tonnes. At today’s price hole GH21-05 is worth $1,330 USD a tonne. Someone is going to want to put this puppy back into production. With that sort of resource it will be an easy decision. The biggest danger to Paycore is getting bought out way too soon and way too cheap.
Paycore is an advertiser. I have participated in two different private placements so naturally I am biased. Do your own due diligence.