RE: RE: 25 million in 2011 from productionGreat post mouserman, but the key words are "what many are missing here..."
There is a very clear reason why so many, the market in general, are missing the the exploration potential.
It is quite simply because the company has not effectively marketed the story.
I liked the use of the word "incredible" in the latest press release, referring to the exploration potential. It suggests to me that Duane actually undid his top button and took his tie down half an inch. Nice one, Fiona.
But it's still just wording that any other company could bring out to hpye up their company. It's not really stuff that is going to mobilise John Q. Investor to log on, bid up the stock and build a position.
I know I go on about Arian, but it is a textbook way of how successfully to get the market to understand and respond to your exploration potential. They had 42 million inferred, 60 million total including equivalents, from 10% of the vein. The CEO, a geologist, walked the entirety of the vein (6+ km) and mineralisation was consistently apparent. He deduced that targeting expanding the resource to 200m ounces was a legitimate conservative expectation, although like anything in life not nailed down, not something that could be asserted as guaranteed. And so Arian's marketing tagline became "We've got 60 million in silver and equivalents on 10% of the strike; we are going to use production revenue aggressively to drill out the remaining 90% and we are hoping and aiming to target 200 million."
That's not overpromising or dodgy bluster, it's clueing the market up on a reasonable assessment of the growth potential. They didn't keep that message in stuffy corporate powerpoint presentations; they commissioned XCAP and Edison to write research notes enthusing about the company's growth potential and putting out some share price target figures, and Jim Williams gave a couple of stirring interviews describing the exploration strategy. Hey presto, it has worked. When people talk about Arian now, everyone knows they are a company that has a certain amount and is looking to double, triple it. That is how successfully to communicate with the market.
If you go on the website of any, and I mean ANY of these companies, every single one is going to have "with exciting growth potential", "targeting expansion of the resource", "highly prospective land package" and so on. It's soporifc, indistinct and ineffective. If Silvermex thinks that it is going to galvanize and inform the market by using such wording, and maybe even throwing in the word "incredible" in place of "exciting", they are going to be disabused.
The way to inform and galvanize the market as to the exploration potential is to observe the success the nascent producer Arian has had in attaching explorer value to its market capitalisation, and to follow Arian's path. You have got to do what works in life, and you can't be too proud or stiff-necked to look around to find the way.
I would add, with much less in the bank than Silvermex, Arian has diamond drilled 10,000m already this year with more to come. Don't spare the horses, Silvermex!! 7,500 should be 15,000 should be 20,000. Drill this thing!!!