Core Gold DMMIF

RE: Correa to Approved Law This Week

[goldpig]

Once the law is formally passed into acceptance, the reality will be that  Ecuador will have a responsible mining law whose  economic demands will be on par with its neighbours.

In effect, the last 8 months or so have not changed the valuation outlook for DMM a single iota.
In fact, the case can be made that , with the political uncertainty now defined and removed, the share price will quickly move to its progressive valuations , as the mine moves towards production in about 2 months time.

A major news release by all of the mining companies can be expected once Correa formalizes the law next week.

Subsequent to that, there is no reason why DMM should not regain its former highs of $10 through which it should breach on successful launch of the first mine at Zaruma.

What is exceptional about DMM is the fact that Zaruma will be brought onstream for a capex of a mere $25 million, and that Jersalem will add another 100,000 oz or so  for just another $25 million.

That is, at $800 POG,  DMM should cash flow more than enough in its first year of operation to pay for the capex to develop Jersalem.
That means little further dilutiuon for the next several years, which means that these shares are soon going to be very hard to acquire.