Trending alongIf it just maintains this pattern it will be pushing 0.60 again in early November. The previous touch of 0.60 was in the euphoria of gold's record high, so it wasn't a surprise that it backed off but now seems to have resumed its upward trend. It would be nice to get more news, but I'll take the mini-pullbacks as an opportunity to buy more on dips while I build a core holding and some traders.
There is an updated corporate presentation on their site. I like their comparables page where they suggest a possible upside of 2x-3x from here if you look at a couple other similar mines in the area. If Ouro Verde has 1m ozs in official categories, you would think the Main Zone has to be almost 2m ozs. An updated 43-101 is scheduled for later this year if I am interpreting their corporate presentation correctly. There should also be more news releases for drill results coming from Patrocinio. In the presentation they mention they are finished a 1500m drill program and one hole returned 23.35m at 1.35 g/t but I don't recall seeing a news release for it so they could be getting ready for that. Another phase of drilling is being planned.
In terms of the business, it might be nice to see them sell off their alexandrite mine so they can use the money to concentrate on the gold. They might want to prove up the resources a bit more because right now they only have 346Kg or so Proven and a full 26,563 of Probable. If I've done the math correctly, that is $1B of potential sales of alexandrite if Probable can be proven up, and so a sale of that asset would go a long way to paying for the capex on Volta Grand without having to dilute the shares. On the other hand, they could go the other way and use the cash flow from the alexandrites to fund the capex, but the impression is that they are simply playiing at the alexandrites and depending on how it is mined it might not be possible to get it to high enough production to make a difference.
eebler