RE:RE:Calm before the storm I went to check old NRs and info about the previous resource estimate and it was based on roughly 35000 metres of drilling, which is what the company is now adding ahead of the revised estimate. In addition, the old estimate is based on two deposits only: Kilroy and Zion. The company has now several more zones (and growing), including the mega star that is Salbora. While part of the recent drilling has been for infill purposes, much of it has been expansion drilling. It is reasonable to expect that the company will be able to (easily?) go over the 1.5m ounce resource, and possibly get over the 2m mark once the most recent drill results are added, while at the same time moving a substantial part of the resource to M & I (Specially in Salbora, Kilroy and Zion). Once we get to these numbers, together with the prospect a further potential growth, the narrative will be quite different.
We also have to bear in mind that a lot of it is very easy gold – not hundreds of metres deep and requiring massive investments in mining and processing. This means the margins are likely to be substantial given current gold prices. Just think about it. If the company produces 80,000oz / year at $850 AISC, that's $1000/Oz margin, providing for a very quick payback (and excellent IRR).
Link to the old PEA https://www.goldsourcemines.com/_resources/Eagle_Mtn_2014_PEA_2014_09_12_Final_v3.pdf