GREY:STACF - Post by User
Comment by
junior_mineron Apr 03, 2007 2:50am
195 Views
Post# 12536237
RE: joe!
RE: joe!Joe,
Good post. Missing the target may be partly in the stock price. I bet those who know about resource models saw this coming. As pointed out earlier, many of the drill results had very modest intersections. I didn’t remember exactly what they had promised, but looking at your numbers, they fell short big time.
“It will depend on whether Harlan feels they can still proceed as planned toward a Full Feasibility Study to commence this year”
There is no way. Unlike PEA, they need to have M&I resources. As you said, they need at least 20 year mine life, preferably 30+ years. Short life projects need to have very good NPV/Capex ratio. Before feasibility study, they have to upgrade all the current inferred to M&I. They need to double the high grade to shorten capital payback and to enhance economics.
That means, we can add at least one year to project schedule. Account for the dilution of yet another year of drilling. They had better to find that high grade. Grades had better to stay at these levels when they drill the inferred out. And the “potential resource” had better to be there, showing similar grades as current inferred. And most importantly, all these inferred resources had better to be mineable (unlike many think, that’s not at all guaranteed).