RE:RE:RE:Exerice of Rights for Reina de Oro optionthe mining costs should be something between $100 and $150 per ton including sustaining capex. if thats true the cutoff grade is fine. the strange part is this option agreement which did not make sense in the first place. i do not know the details but from what is publicy availaible Galway was motivated to bring as few ounces as possible into the measured and indicated category.
if they want to do a feasability study they will have to bring more ounces into the higher confindence categories, do not know how this affects the agreement. i cannot imagine that someone is that stupid and underwrites a contract where the mining company can exercise an option to gain control of the property with the first resource statement.
On the other hand the option payment of aprox. 4 Million is a fair deal for both sides in the current market. your number of 18 million is not reasonable today. nobody on earth would pay 18 million for that property in the current market if they were in Galways shoes, especially not in Colombia. Just look at Dalradian Resources, they are in a better Location have 3 million ounces with 20% higher grades, similar width and are much farther in the development cylce than our Vetas Project. Their market cap is 60 million. And that is just an example...nobody would pump that much money into Colombia with all the bargains you can buy in the open market.
kind regards kodiak