RE: RE: And that's the way it goesFrom speaking with IR my understanding is that the $million is the only working capital needed at this time. The company only needs $2.5 million to get to 300tpd production. The additional $1.5M is a reserve. At 300 tpd of production the company is expected to produce about 40,000 ounces of gold equivalent per year. The gold equivalent will depend upon the gold silver ratio since the first area that they will be mining in 2009 is the Tajos Cuates area which is currently yielding very high silver grades (400g/ton) alongside about 4-5g/ton of gold.
Currently the company is stockpiling ore and expects to begin producing gold and silver in January. At 300 tpd the company's cash costs are likely to be in the $300 per ounce range. This is all information I have gotten from IR.
If they succeed in producing at 300 tpd and at the grades they have reported, this stock is trading for less than 1x what their annual cash flow would be. It will be a giant winner if they execute their plan.