Leading resources writer says Chalice is Kirkland’s 'highly leveraged neighbour', page-3

One would think with drilling starting in Vic in a month or so we are going to rerate.

That is why Im here anyway. I think reason tells us that we go from basically 40mill cap (38 mill cash) to 30mill cap, 28mill cash post capital return (or something to this effect).

But around this time we have
1. Drilling starting
And
2. holders with capital to potentially reinvest in our company.

When you look at a company like catalyst CYL (which I should have held onto) and the valuation attributed by the mkt I think Challice becomes a very tantalising prospect. Its all there in Baz Fitzgeralds write up. Kirkland lake, the massively superior nature of the economics of these particular deposits.

If I owned or distributed a newsletter this is a share I would reccomend. Because you have massive downside protection. The risk reward is fantastic. i.e - 3-5 bags if we get a Catalyst type of discovery, vs a downside of maybe 25% if cash burn is high and discovery does not eventuate. This is excellent risk vs reward at this end of the mkt.

You often hear people talk about the mythical 20-100 bagger (and we have as good a chance as any of this happening I feel), but realistically this doesnt happen all that often, we have a board that understand this phenomenon and actually sell assets as they prove them up. i.e - good risk management.

I note the overhead resistance at 16 cents, and what could be a capper letting us bubble and simmer away. I simply say capper because I cant think of any reasons whatsoever to sell.

Positives
1. Mgmt with skin in the game. - MD has 17% of the stock. He could push up the price on his own post capital return.
2. Great mining jurisdictions and highly prospective tenure in Australia and Canada.
3. History of capital returns. i.e -risk averse and have created value for share holders before.
4. Scale of potential discovery means we have essentially got free lottery tickets thrown in.
5. Large tenure- multiple shear zones to explore
6. Neighbours experiencing success and the entire region heating up.
7. No need for cap raise. Low cash burn shows prudence and with the top 20 a large % of the register no real reason to overpay/rort
8. Gold rebounding, and geopolitical tensions mounting.

The last point is important. Especially in regards our cash position. Because if the mkt shakes out you can bet your bottom dollar that speculative thing you hold, which looks great, albeit the slightly higher theoretical capex (you all know what Im talking about) will get sold down and in your heart of hearts you know this to be true. Even if that (hypothetical) company will one day be developed you will be holding the bag for sometime as the mkt sorts itself out.

I feel very very comfy with my oversize position here. Its not everyday you can jump in a bull ring without the fear of being gored to death

Cash is king.
Grade is king.

Dont end up a pauper.