Lab Report | July 27 Deep Dive on Barksdale Resources

Summary

Barksdale met its phase two earn-in drilling threshold and must pay $550,000 cash plus nearly $5 million in shares to reach 67.5% of Sunnyside.

The headline hole grades 1.93% copper over 7.6 metres; the silver line reads 'nearly 2 grams per 100', garbled.

The host objects that the release mixes feet and metres, converting the result himself to roughly 200 metres of depth at 1.93% copper.

Shares fell 7% to 20 cents, which he attributes to a thin depth of market and a large posted offer rather than the drilling itself.

He places Barksdale near the discovery stage of his own Lassonde curve, seeing the next targeted drilling round as the potential trigger.

Allan Barry Laboucan's takeaways

Top takeaway The host's most pointed reading is of the sell-off rather than the results: on a thin bid beneath one large posted offer, "it's an indication to me that maybe somebody's throwing In the towel, and they want to move their money elsewhere" - a seller repositioning, not informed selling.

He holds drill releases to a unit standard: "Now bear in mind that this is in feet. And they kind of mixed Feet and meters that always annoys me." He converts the intercept himself to "about 200 meters of depth, they get 1.93% copper."

His method tolerates a wide first phase only if the next round is targeted: having learned from the program, "they can target drilling. More effectively."

On value he is explicitly early-stage: "I think that they're in the early stages of making an important discovery." and "And therefore the valuation is way back here." He expects the next targeted round, not the concept alone, to be what moves the stock.