Post by
snowshoedb on Jan 21, 2022 11:15am
Waiting on Results for Kiena "Borgo Zone"
I have to say I'm a bit disappointed by the lack of news coming out from WDO management with respect to drilling results at Kiena and the recently discouvered Borgo Zone. I believe that the Borgo Zone is a another mineralized Rydell Shear Zone that is between the Norbanite and Marbenite Faults. If what I suspect is true then this would be a major development and would bring about a material change in the size & scope of the mine restart at Kiena. Such a material (high value) change in mine value would have a dramatic valuation change to WDO because there is able headroom avalable in the mill with only 500-850 tpd planned production when the mill is capable of 2000 tpd. Having multiple stopes in different areas would allow WDO to fill the mill. An increase to mill capacity would increase cash flow from the mine by up to 200%. Realistically the company could easily put through 1200 tpd based on the working arease that could have in 2022. They are currently afraid of ramping up production rates until they prove up additional ounces.
But mgmt has an obligation to disclose material information and in particular when WDO is a good takeover target. Management should disclose material changes in the companies valuation to ensure shareholders are not short changed in valuation. Do'nt get me wrong, I am a believer and supporter of current management and how they have executed on their business plan and are getting great results at both properties. The only disappoinment I have is that there is not a steady stream of information coming from the company. In the Q3 conference call we were expecting results befor Dec 15. I can understand not releasing information between Dec 15- Jan 2 as everyone is focused on chrismas, New Year and Year End reporting requirements.
But material news worthy valuation changes (Borgo Zone and Pres'ulle) should be high up on the priority list for disclosure to the public. We as shareholders should be demanding more information on a regular basis from the drilling on both Kiena and Eagle.
Hoping that some of you might reach out to Lindsay and or Duncan to see if they can commit to a more regular news flow based on drill results. Richmont (Island Gold mine) who was in a very similar position did a great job in regularly releasing results before they were aquired by Alomos Gold. I'm worried that the lack of information will allow for a cheaper buyout price. I'm very concerned that a premature buyout offer with a lowball valuation is a very real risk currently.