RE:RE:RE:RE:Follow The Yellow Brick Road...Hey NIRVANA137...
I have mentioned on a number of occassions that we are now a "show me story"...for a number of reasons.
Significant upside will not come until they are producing and are achieving the numbers that they are selling.
As for the deposit itself, at this time we can look forward to annual production of between 40,000 to 45,000 ounces per annum. for the next five years. However, the mine plan is defined to a vertical depth of approximately 300 metres...hardly a scratch in my opinion.
The past producing open pit was mined out to a vertical depth of 150 metres...they are going to mine below it. In my experience the source is much..much deeper. They will spend money to find it as they get cash flow.
In the meantime...it is what it is...however, the market is only giving us a market cap of 40 million at this time...very much out of line.
I believe that once they get closer to production and have the cash in hand to fund the operation we should be rewarded accordingly. The real gain will come when they are at full production and achieving the planned through-put grade of 7 g/t...at that time we should have a market cap of about 200 million dollars...which means a 5 bagger from here.
The past producer failed...which gives us some "bad press". My research points to bad management, not enough definition drilling, gold price at the time and most of all significant dilution resulting in poor head grades.
Execution is the word...is the word. Significant risk in terms of mine planning and most definitely grade control and dilution.
The stock can still be considered speculative in nature...but..they have derisked it significantly.
All the Best!
Digger0144