Sulliden Gold Corporation Ltd T.SUE.WT

RE: RE: feasibility study looks ok?

[MrHjulben]

 

"- lower than even low case estmated production (87k AuEQ is not great)"

 

To start at 87k AuEQ rate is a deliberate choice made by management, now they have a smaller resource with higher grade and once the operation increases in ton the grades will come down but the increased production will probably keep cash costs around flat from today.

A small capex can be handled without any dilution, and than the CF will pay for the growth. Look at Rio Alto, Sullidens neighbor, they started at 10k tpd and reached 23k tpd a year later. Sullidens plan is probably to walk the footsteps of Rio. Only 40% of the resources is considered, total resource supports a much bigger operation. From a shareholder perspective this is better then having a larger operation and larger capex...