Impact of the 43-101I've been a longtime CUU holder since 2007 and stomached the financial downturn when my investment plumetted to15% of its original value. Its a great feeling to see this rising.
A question though: when the new resource estimate comes out around October, how much difference will it really make to the share price?
Assuming the 43-101 adds M or I copper resources the grade will probably still be low at 0.3%. Similarly, more Moly resources would be nice but I doubt the grades will go up significantly (by the way - people don't realize just how much Moly resources and value this mine has).
Given that the project size in the pre-feasibility is already very large at 100,000 tonnes per day I doubt there's much opportunity for expansion even with more M&I resources. 100,000 tonnes will probably take up a substantial portion of the new transmission line - does anyone know how many mines the line can support? So, if the new 43-101 doesn't lead to higher project throughput and if the grades don't signficantly change from the pre-feasibility, the only impact will be to extend the possible life of the mine.
The difference in NPV terms between a 20 or a 30 year mine life (which seems to always be determined by proven reserves) will probably be small so my thinking is the above comes to fruition we'll see a short term pop in the share price but that won't necessarily translate to a higher price a year from now.
The opportunity for the feasibility study to reduce cost will have way more value for CUU (ie. much higher NPV).
Appreciate your thoughts on the above.