what the ****are you talking about here, drill results as make or break? This is a PEA, Pre-FS stage zinc play,
one of the purest and most important from the about 40 i compared the one with the best
CAPEX to NPV ratio as per 2017 PEA.
Even if they do not find a single pound of zinc in addition, the PEA shows, at 1.35$/lb
a NPV @8% (yes not 5%) of 600mmUS$ with an IRR of 68% compared to a modest CAPEx of 150mm US$. This is a very good CAPEX to NPV ratio.
Current marketcap is cheap, even if you discount typical risks at this stage in development.
I never understood the strange obsession with grades many mining - investors follow.
As a matter of fact, theres a lot of low grade mines often making more free-cash flow than high grade stuff.
I fail to see a proven analyses that grades really correlates with real mine earnings.
Take some very low grade gold mines in nevada that have tripple cash flow than 3+g/T elsewhere.
I really don`t get the negativity here, if its not to force lower prices to enter.
The reason this is not higher yet in my view is that this comes from a 2,5 cent Can$ and at some point ppl take profits, but the chart looks like the medium term correction from could be over soon.
so enlighten me if you have some real valid point here why this should tank, when zinc is at 1.42$/lb