Resource guesstimate Pulacayohad a brief look through the recent press releases and MD&A. From what I understand the maiden resource estimate will be due late Q3 or Q4. APE decoded to change the strategy and will calculate a resource model inhouse before they got it confirmed by MICON (independent company). Paca drilling will be deferred due to the great success in the Pulacayo drill campaign. From what I hear the Paca resource modell will be recalculated by the new inhouse geologist who seems to know what he is doing. After that a better decision can be made if to proceed with Paca and/or Pulacayo.
To my understanding the initial 43-101 resource calculation will target the 400-500m (east-west direction) of the TVS central zone (TVS more than 2km in total strike !!!). Norht-south extension averages 60m and depths is about 450m as well. APE said in the MD&A that Pulacayo will enhance the overall grades of combined Paca&Pulacayo area which means the grades should be well above 7oz silver equivalent (silver equi). My personal guess is we'll see an average grade of 10oz/t silver equi with >50% in silver.
According to MD&A minimum tonnage should be 10 Mt and maximum tonnage can be calculated as follows:
450m x 450m x 60m x 2.5 (tonnage factor) = 30 Mio. t.
Pulacayo resource should come in between 10-30 Mt with grades of about. 10oz/t
10 Mt = 100 Mio. Oz Silver Äqui ( 2 Mio. Oz Gold equi)
15 Mt = 150 Mio. Oz Silver Äqui ( 3 Mio. Oz Gold equi)
20 Mt = 200 Mio. Oz Silver Äqui ( 4 Mio. Oz Gold equi)
25 Mt = 250 Mio. Oz Silver Äqui ( 5 Mio. Oz Gold equi)
30 Mt = 300 Mio. Oz Silver Äqui ( 6 Mio. Oz Gold equi)
My guess is we'll end up with 15 Mt Q 10oz or 150m Oz Silver equi. Combined resource with Paca would be 220m oz Silve equi (132m oz attributable to APE = 2.5m oz gold equi @ 5g/t). Good thing about it we are open along strike (will be tested in follow up program) and depth. Remember the high grades in the Lower Tajo Vein System when COMIBOL ceased operations back in the 50ies? There is a good change to access this high grade zones from the bottom of the proposed pit by special underground techniques and at reasonable costs. The results of the at least 5 underground holes are still pending.
Taking the 21.5m$ market cap into account APE would be valued at 0.163US$/oz silver equi on an inground base with a huge potential + La Solucion in production + 4m$ in cash.
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Seems a pretty good deal but I fear that investors panicking because of APEXs unqualified statements regarding the Bolivian mining tax on the other hand Sumimoto will be investing multimillion dllares in San Cristobal - you wouldn't do that in a country with no perspectives.
Art