Chapter 280 The Stock Went Crazy
"This is a cross-sectional diagram, and from here we can clearly see that the mineralized zones on the eastern side of the fault are considerably larger."
Collier pointed at the projected image before him.
The projection depicted an east-west cross-sectional diagram of the Pebble Project. The fault was clearly visible, appearing as if the Earth had been neatly sliced in half by a sharp knife wielded by a divine hand.
On the eastern side of the fault was the hanging wall, which had moved downward, while the footwall on the west had moved upward, creating an asymmetry between the strata on either side. This explained why the eastern mineral bodies had no surface expression; they were all deeply buried.
From the scale depicted in the diagram, the western ore body was relatively small, while the eastern side featured a significantly larger deposit.
"In the west, we've identified approximately one million tonnes of copper with an average grade of 0.3%," Collier explained the data carefully. "On the east side, after extensive drilling, we've confirmed a reserve of 12 million tonnes of copper, 1,100 tonnes of gold, and around 800,000 tonnes of molybdenum."
As he finished stating these figures, he cast a meaningful glance at Li Tang. The young Chinese man appeared entirely composed despite the astonishing news.
Indeed, the discoverer of the Taleguo Copper-Gold Mine had clearly seen grander scales. Although the current achievements at the Pebble Project had yet to match those of Taleguo, Collier was confident they would soon surpass it.
"Based on the current trend of the discovered deposits and our geophysical surveys, there's even greater exploration potential further east and deeper underground," Collier continued, challenging Taleguo's status as the world's largest undeveloped copper-gold deposit. "Our engineering team estimates the Pebble Project's inferred reserves may exceed 30 million tonnes of copper, 3,000 tonnes of gold, and 1.5 million tonnes of molybdenum!"
Each set of figures he cited was astonishing.
Taleguo Copper-Gold Mine's known reserves included over 30 million tonnes of copper, 1,300 tonnes of gold, and 7,500 tonnes of silver. The Pebble Project was clearly competitive on copper reserves, and its confirmed gold reserves were already nearing Taleguo's numbers, potentially even surpassing the Grasberg Mine in Indonesia—the world's largest gold mine—with approximately 3,300 tonnes.
This discovery was unprecedented, drawing the eyes of the world toward it.
"This project will undoubtedly cause an enormous sensation!" Collier declared passionately.
The management team of Northern Dynasty Minerals erupted into thunderous applause.
Even Li Tang raised his hands and applauded lightly. "We are all participants in history," he remarked calmly.
Kristo fully grasped the significance of the data—it was another Grasberg Copper-Gold Mine. Freeport Copper & Gold Company had risen precisely from the Grasberg discovery, becoming a global mining giant.
"This discovery is unimaginable and incredible," Kristo exclaimed in awe.
After the excitement subsided, Collier had to address practical issues. "But to fully explore and develop this massive ore body, we'll require significantly more funding."
"How much funding do we need next?" Kristo, fully involved in the project, didn't doubt the potential. For such a discovery, any investment would be worthwhile. Returning to his company and reporting these findings to the CEO and board, they would undoubtedly provide the necessary funding without hesitation.
"We haven't finalized the next exploration plan yet," Collier replied cautiously. "However, from my experience, this will require an immense investment."
"Can you specify a number?" Kristo pressed, knowing his company's executives would demand a precise figure.
"Between 100 and 200 million Magnesium dollars, depending on our exploration results and timeline," Collier provided an estimate based on intuition and experience.
A hundred or two hundred million Magnesium dollars was a significant sum even for Freeport Copper & Gold, though not impossible to provide. But for Li Tang, this represented an insurmountable hurdle. He simply did not have access to that much capital.
As the actual majority shareholder through Cruise Investment, holding 70% of shares, contributing at that rate would be impossible without bankrupting himself.
"I'll resolve the funding issue shortly," Li Tang stated calmly.
Collier didn't fully know this Chinese man's financial capability but understood perfectly well that Freeport had sufficient resources to carry the project forward. Thus, he wasn't overly concerned about financing.
"We'll draft a new exploration plan as soon as possible, along with an accurate budget," Collier said. "We can discuss specific funding arrangements then."
He paused briefly, then added, "As a publicly traded company, we're required to promptly inform shareholders about project developments. Given our isolation in Alaska and lack of timely communication, we've delayed releasing exploration results."
"We should disclose our progress and results immediately, correct?" Li Tang asked.
"Exactly," Collier nodded.
"It's your job—do as you see fit," Li Tang offered no further comment.
"Very well." Previously, Collier rarely sought Li Tang's opinion on company operations. However, since the major mineral discovery on the east side, he'd begun taking Li Tang's viewpoints more seriously.
Throughout the exploration, he'd engaged Li Tang in numerous technical discussions. The successive discoveries at Taleguo and Pebble couldn't merely be luck. Collier recognized Li Tang possessed extraordinary intelligence in geology. Being a geological engineer himself, Collier respected genuine expertise.
Initially, he'd resisted Li Tang joining the company, worried outsiders would disrupt the technical team. But Li Tang's insights had significantly streamlined their exploration efforts, preventing years of wasted effort. Without Li Tang's breakthrough idea regarding the downward displacement of the hanging wall hiding major ore bodies deeper underground, they might have spent years exploring the west side fruitlessly.
He desperately wanted Li Tang to reveal his core methods for exploring porphyry copper deposits. Unfortunately, Li Tang's lips were sealed tighter than polished river pebbles—he never revealed his genuine secrets.
After the meeting, Collier walked alongside Li Tang, suggesting, "Li, how about leading the next exploration plan? Our technical team has enormous respect for your ideas."
During the previous planning phase at year-end, Li Tang frequently clashed with Northern Dynasty's team, altering plans repeatedly until they matched his vision. Initially, no one supported his ideas, yet his simple hypothesis regarding the fault's hanging wall dramatically uncovered the giant ore deposit, proving him correct.
Truly capable people naturally garnered respect, and the team's attitude had subtly shifted.
"I greatly enjoy working with your team, but I won't be able to participate in drafting the next exploration stage," Li Tang politely declined. "As you mentioned, future exploration needs one or two hundred million Magnesium dollars. I must secure more funds. You understand this amount is enormous."
"I understand," Collier accepted without protest.
When news of the Pebble Project's discovery finally broke, it sent shockwaves through the capital markets. Northern Dynasty Minerals' stock soared as if launched by a rocket, surging skyward.
This scenario had played out countless times. Investors were always fascinated by such opportunities in junior exploration markets. Despite frequent disappointments, they continued investing, waiting for exactly this kind of rare breakthrough. Just one success could change lives forever, offering wealth beyond imagination.
The last time Toronto's capital market witnessed such euphoria was years earlier with Bre-X Minerals. Over just one or two years, Bre-X had consistently reported extraordinary gold discoveries in Indonesia, claiming unprecedented high grades exceeding 10 grams per tonne, with reserves totaling over 6,000 tonnes. Investors went mad, pushing Bre-X's market cap to an astounding 6 billion Canadian dollars, up hundreds of times from its initial value.
But eventually, this incredible discovery was exposed as a fraud. Investigators found no actual gold deposits, just samples artificially spiked with gold dust. Following this scandal, Magnesium Nation implemented the ISO 9000 Quality Assurance System, mandating strict monitoring of project data and developments.
This time, rigorous inspections by regulatory authorities and professional validation of drill core samples confirmed every detail of the Pebble Project's findings. The data was accurate and unquestionably authoritative.
In a flash, the frenzy reminiscent of the Bre-X mania erupted again. Within days, Northern Dynasty Minerals' share price surged tenfold, reaching a market value exceeding 600 million Magnesium dollars—a staggering valuation.
And the stock continued rising relentlessly. Investors' enthusiasm burned hotter than ever. Outside Northern Dynasty Minerals' corporate headquarters, ecstatic shareholders gathered, holding banners and signs, chanting and singing jubilantly.
They celebrated their life-changing success—a stunning victory in the risky but thrilling world of junior mining exploration.
Elvin pushed through the crowd with his camera, struggling to make his way into Collier's office.
"We're journalists from the Financial Post," he announced excitedly to Collier. "We made an appointment over the phone."
"I remember you." Collier was in a great mood and held no grudges this time. "Please, have a seat."
"Where's Li Tang?" Elvin craned his neck, glancing towards the closed door of the director's office next door, which appeared unoccupied.
"Why are you always so intent on interviewing Mr. Li?" Collier didn't feel offended this time. In fact, deep down he believed that someone like Li Tang deserved greater attention. He just couldn't quite grasp why Elvin had recognized Li Tang's extraordinary qualities from the beginning.
"His achievements in mineral exploration go far beyond what you've seen!" Elvin exclaimed.
"I've stood shoulder to shoulder with him on a project, and though he appears calm on the surface, I can sense that within him—within his mind—is a volcano, boiling with molten magma!" Collier joined in praising Li Tang enthusiastically. "His ideas are simply extraordinary!"
"So, the Pebble Project was also discovered by him?" Elvin eagerly thrust the recorder closer to Collier.
"I'm not exaggerating when I say this: without Li's vision and determination, we never would have discovered the enormous deposit at the Pebble Project!" Collier gave a thumbs-up. "He's truly one of a kind!"
"What else would you like to share about the Pebble Project?"
"This project is destined for greatness!" Collier's voice rose with passion. "Although we've only completed the initial exploration phase for the eastern ore body, we've already made tremendous discoveries. It's clear that this will become the largest copper-gold deposit in the world!"
"Larger even than the Taleguo copper-gold mine?"
"Yes! Especially in gold reserves—it will undoubtedly surpass Taleguo! We estimate that the gold reserves here will exceed 3,000 tonnes, comparable to the world's largest gold mine, Grasberg!" Collier added thoughtfully, "Interestingly, Freeport Copper & Gold, the owners of the Grasberg mine, are also our company's major shareholders."
…
Arizona, Phoenix City.
Headquarters of Freeport Copper & Gold.
Terrence was deep in discussion with the CEO of Douglas Corporation. Their two companies were the largest copper-gold producers in America.
Most of America's copper deposits were concentrated in Arizona—half belonged to Freeport Copper & Gold, and the other half to Douglas. Besides mines in the U.S., Douglas also operated several large copper mines in Chile and Peru.
If the two companies could merge, their combined scale advantage would significantly lower production costs and increase profitability. The idea of collaboration had long been a subject of discussion between the two sides.
"Webb," Terrence addressed the Douglas CEO directly, "our bio-hydrometallurgy processes at the Morenci mine have been performing exceptionally, particularly effective in treating low-grade copper ores. Many of your mines currently discard large volumes of low-grade ore, which is truly a waste."
Webb was fully aware that Morenci was not only the largest copper mine in America but also boasted the world's largest bio-hydrometallurgy plant, making its refining technology world-leading.
Furthermore, this technology could seamlessly apply to all copper mines across Arizona, given their similar geological characteristics—precisely the reason Webb was meeting Terrence today.
Every mine prioritized high-grade ore, discarding low-grade ores as waste. If Douglas could access Freeport's advanced hydrometallurgical technology for trials at their mines, it could potentially transform waste into profit.
"If your technical team would share that technology with us, that would be fantastic," Webb replied with a smile.
"That technology is at the heart of our refining process!" Terrence smiled slightly. "However, if our two companies fully cooperate and merge, all our technologies, transportation systems, and even personnel management could be fully integrated, significantly reducing costs and boosting profits. Our shareholders strongly favor such a merger. How about you?"
"It's not that simple," Webb replied cautiously. He was fully aware of Freeport's ambitions. Freeport had been trying to merge or acquire Douglas for years. However, merging two leading companies of such enormous scale was easier said than done, despite both sides acknowledging the potential economic benefits. With their mines in close proximity within Arizona, cooperation would greatly reduce infrastructure costs.
"All I'm asking is for your cooperation. If you assist us in moving this forward and persuade your shareholders, rest assured they'll receive generous financial compensation!"
"I have always cooperated with you, otherwise, we wouldn't be having this discussion," Webb felt Terrence always radiated an aggressive energy—Freeport's company culture was quite different from Douglas's. Their ambitions were never subtle.
Knock, knock!
At that moment, Kristo knocked at the door.
Terrence had almost forgotten about Kristo. Seeing him appear, Terrence reacted with surprise: "Kristo, finally you're back!"
"Since Webb is here, should I wait outside?" Kristo recognized Webb immediately.
"No need, come right in—we were just chatting," Terrence waved him in.
Kristo entered and stood before Terrence and Webb, explaining: "I sent you an email, but you didn't reply. I figured you were busy and hadn't checked your inbox, so I came to personally update you on the Pebble Project."
"Oh, I apologize, I've been extremely busy and haven't had time to check my email," Terrence showed a hint of embarrassment. "I promise I'll be more prompt in checking it next time. By the way, how's the Pebble Project in Alaska progressing?"
He certainly remembered the Pebble Project, a $15-million-dollar investment mainly out of consideration for Kristo and Li Tang. He'd heard the Chinese youth possessed extraordinary mineral exploration abilities, regularly uncovering remarkable deposits. Without Kristo's presence, Terrence would hardly have remembered the project, as other issues occupied him—the attempted merger with Douglas involving billions, and constant interference from the Indonesian government at Grasberg. A $15-million-dollar investment seemed trivial by comparison.
"It's going well," Kristo adjusted his thick glasses, passing the project documents to Terrence. "We've completed the first phase of exploration. Results have long been available—I also sent this information to your email. Now that I'm back, I can report our overall findings in person."
"Excellent," Terrence perked up.
Webb glanced at the cover page Terrence held and immediately recognized the words "Pebble Project," his expression shifting into astonishment.
"You invested in the Pebble Project?"
"You know about this project?" Terrence was slightly surprised. He hadn't closely followed its developments.
"I read about it just this morning—it's big news!" Webb stared at the documents again, confirming. "Reports say it's the largest porphyry copper-gold deposit discovered in North America!"
"Really?" Terrence suddenly felt he might have missed something significant and immediately turned to Kristo. "Tell us more about the project."
"Our preliminary exploration results indicate reserves of approximately 12 million tonnes of copper, 1,100 tonnes of gold, 800,000 tonnes of molybdenum, and 5,000 tonnes of silver!" Kristo reported truthfully.
"That much?!" Terrence exclaimed in shock.
"These are just preliminary results. Based on the geological data, we've only identified about one-third of the total deposit!" Kristo was visibly excited as he continued. "The Northern Dynasty Minerals technical team is extremely confident that further exploration will reveal significantly larger reserves. They've provided another set of inferred reserve figures: approximately 30 million tonnes of copper, 3,000 tonnes of gold, 2 million tonnes of molybdenum, and 15,000 tonnes of silver!"
Each figure represented immense wealth. A copper deposit of 30 million tonnes was among the largest globally. Three thousand tonnes of gold matched the largest gold mine in the world. Two million tonnes of molybdenum was equally remarkable, and 15,000 tonnes of silver was an exceptional find.
Both Terrence and Webb understood exactly what these figures implied—collectively, they represented enormous potential energy.
"Under Li Tang's guidance, Northern Dynasty Minerals shifted more exploration work east of the fault line, discovering a much larger deposit," Kristo briefly explained the crucial breakthrough.
"Li?" Terrence recalled the young man vividly. Truly, he was a unique individual with unparalleled exploration abilities.
Upon hearing Freeport had invested in such a project, Webb admired their foresight. Competing for this enormous deposit now would cost hundreds of millions or even billions. Being the initial investors, their returns would undoubtedly be staggering. Out of courtesy, Webb congratulated Terrence immediately.
"Northern Dynasty's stock has exploded upward—you've made a phenomenal investment. Congratulations!"
Terrence hardly registered Webb's congratulations, looking instead to Kristo and asking anxiously: "Where is Mr. Li? Didn't he return with you?"
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