“Comparing this to RVC from a valuation perspective is a bit premature - RVC is WAY ahead in terms of proving up their resource. We still need to drill the first hole.”

People watch something fly and they always jump the gun. RVC has a 1.5 year head start on TYE. They probably have about 4 mm net oz Au in the ground to TYE’s zero. There is no comparison at this point. RVC has a diluted market cap of $260 mm (52 mm shares diluted) vs. TYE’s $35.8 mm. Once TYE gets drilling their results will tell if they are in RVC’s territory or not. Time will tell. They have a good shot, but people have to remember that it’s a shot and not a done deal currently.

“Remember RVC was 10 cents when they drilled their first 8 holes. It was only after the results that they sprouted up to $1."

And RVC only had about 25 mm shares (diluted) at that time so their market cap was only $25 mm (diluted) when it moved to $1 on those results. TYE currently has 98 mm shares (diluted) after their last financing at
.15. At 36.5 cents its market cap is $35.8 mm, way above what RVC did when they actually drilled their first set of holes. These trade off of market caps (MC). X amount of Au is worth a Y amount of MC. The share price is just determined by the MC divided by the amount of shares the company has.

“And if RVC keeps running, then so too will TYE.”

Absolutely. One just has to look at RVC’s latest blockbuster hole. 171m @ 3.13g/t Au. RVC moved up from $3.40 to $4.99 in 3 days for a return of 47%. TYE piggybacked on those results and went from .22 to 365 for a return of 66%. It really had nothing more to do with the close proximity of TYE to RVC. So if RVC keeps hitting excellent results as they move south at Blackwater, TYE will definitely benefit.
Just do not expect to see the same rates of return that were had this week off of future RVC results. As the market cap moves higher the rates of future returns from RVC piggybacking will lessen, as the market will be paying upfront for a certain amount of Au in the ground already that has not yet been found by TYE.

At $50/oz Au (inferred resource) in the ground the market is already paying up for ($35.8mm)/$50 = 716,000 oz Au (inferred) at this time. There’s a point where the market says enough and you have to prove that at least that amount is there before people pay a higher price. At that time TYE will need to get their own good results from drilling to push up the price from that point.

“And a finally speculative rumour is that either RVC or someone else is building a position in TYE now so they can take a run at them later.”

If it is, it wouldn’t be RVC. It just doesn’t make any sense. Their CEO has stated many times that they are not mine builders and they will sell Blackwater when they are done drilling it. So why would they take a shot at another asset? It will just slow down their timeline to get rich quick by diluting their company to raise the $ needed in acquiring the Key asset and then having to spend more time and more $ to drill it up.

If there is any truth to that rumour it would have to be someone else taking that position. That’s definitely a possibility.