A POG drop of ~$20 this morning (hope it will recover) brought down the entire (on my list) gold group, including G which was @ 24.92 (~10am) and PRB came down to $4.47/s as expected. At 0.1755 conversion 24.92 x 0.1755, the value of PRB would be $4.37. Hence the market gives the value of the new PRB as 4.47 - 4.37 = $0.10 (which is half of $19M/91Ms = $0.20).

If the deal were accepted at the Special Meeting (have only until Monday 9 March 10AM Toronto time to cast your ballots) PRB shareholders would be in lockstep with G.

The value of the new PRB is unknown and shareholders can't get the money out, until Dave and the same BoD can list it on some stock exchange. My guess for the new PRB would be less than the cash value (i.e. $0.20/current PRB share). Without a listing the value is practically zero, or at best some dead money.

If one can really trust Dave and the BoD then wait for it to be listed, wait again for a while, for additional DD, then buy in. Currently, the future of the new PRB is up in the air.

In the case where the proposed deal fell apart, and G were not willing to up the anti and there were no bidding war, then the SP of PRB would drop. But, it's my bet that within a year (could be sooner) when all the results (tons of drilling results, the East Limb, the in-fill, this winter drilling to the other side of the lake, that have not been reported) see the light of days, the SP will recover quickly, noting that it was reaching almost 4.00/s about 1 year ago (and then Hocking brought it down with his 0.50/s prediction, someone has suggested that this could be part of the take-over strategy).

It was then, before than land deal. Now the resource estimate is much better with the drilling of the wedge zone and along the strike toward landfall. PRB has begun the drilling of the East Limb since before the end of 2014. Similarly, it started to drill the Wedge as soon as the land deal was completed. In addition, it also drilled 200m from both sides (North and South) of the mineral zones, especially near the high grade zones. This was supposedly, condemnation drilling for future location of mine facilities/ramp, but it might hit good grades hence would extend the deposit.

So, where are the results for all of them?

When they come out, I would expect a lot more ounces for the high grades. And we should not forget that, in addition to in pit low grade zone (over 1gpt), there is another low grade zone (some 4Moz @ just below 1gpt, assuming 1300/oz) at the NW end of the mineral corridor (the SE trend) that nobody is talking about, noting that this zone with a grade of just below 1gpt is at par with the grade at Cote Lake (which was sold for ~$600M).

The recovery of the POG above 1300 would wake up this sleeping giant. I would say PRB leverage with respect to POG rise would be a lot more significant than that for G.

However, it's my bet. Just sent in a whole stack votes under my control. It's a NO.

Every person on his/her own.

- One nagging question: I have been suggesting to PRB that they should have some "wildcat" drilling along the SE trend, beyond the lake, on the newly acquires land from the lumber people, and beyond that (100%PRB) to see if the SE trend would extend a few more km, rather inch out with 100m intervals and 50m in-fill drilling (boring stuff that would give a big bang, hence would not get too much credit from the market). But this suggestion has fallen in deaf ears.

When it comes to geology, Dave is methodological individual, but it would not hurt to be a bit more daring, at least, once in a while. In fact, based on the available results, drilling beyond the other side of the lake is not really "wildcat", it's a safe bet.

goldhunter