Canaco's game plan. It is almost certain that Canaco is drawing out this process. Their intention to complete a PEA BUT stop drilling to preserve capital of $95million is not a positive sign. The management is implying that the project is a Bust.
The inferred is only 292400.
Even if you convert the inferred to indicated there is not much upside IMHO.
2 years+ to prove up less than 1 million. With their current plan to stop drilling. 2012 will basically dwindle away. If drills start turning in Q1 2013 again and it takes another 2 years to prove up less than a million.
Canaco will have probably have less than 2million ounces in 2015 IMHO.
Canaco could finance another project or purchase another project in an advanced stage but there is still inherrent risk. Would Canaco want a project with 1million ounces starting point and drill? or a much larger deposit that has more than 1 million?
There are many options available with $95million. The problem becomes a case of "time.
It took Canaco 5 years to get to this point.
The best option would be to buy a project in the advanced stage that has already defined an economic resource but it may be a costly endeavour.
The share price may just bounce around aimlessly until Q4-2012