RE:Reserve Downgrade Yeah I also saw the NGD news. I am quite confident that PVGs revised reserves will be at 8 gram or even less . I think a 10-12% drop in SP before April can be expected , and if 8 gram proves to be optimistic, the haircut will be worse.
I am quite confident that they are sitting on a large number of developed stopes, with associated large tonnages , of 4-6 gram material There are posters elsewhere calling for sub 6 gram mill heads before the end of the year and I'm inclined to think they are probably correct. Even if the VOK contains substantial tonages of 10-12 gram material , it will take the operators many quarters to work their way out of the hole they are now in.
As for finding another Cleo., its not impossible but its a lot more like drowning men clutching at straws. When Cleo was mined in 2018, the operators had a few things going in their favour that dont exist today. Cleo was only able to raise the mill heads to 11.4 grams. A new Cleo today MIGHT provide 10 grams for a single quarter but then its mined out. What then, wait another 2 years for the third Cleo???
I dont think I would buy more puts today , but I would be no hurry to close out any March or April 2020 puts.