Casey Research Comments on the PEAThese are excellent preliminary numbers, with the most important factor being that the project still works at metals prices below today’s: 29.6% IRR at $1100 gold, and 20.5% at $1000. How is this possible? Great location near excellent infrastructure, low strip ratio, and relatively high metal recoveries. The capex needed to build the mine is reasonable too, even for a junior mining company. We note that there’s enough silver in the mix to be of interest, but not enough to drive the mine, so an offtake deal might be one way got get North Bullfrog built. All good, but the bulk of the ounces are still quite low grade — well below half a gram per tonne — so we agree with and encourage management in their decision to look for more higher-grade zones like Yellowjacket. What to do? It’s tempting to back up the truck now and put a new Buy on the stock, because the project appears to work as is. It can only get better if more higher-grade mineralization is discovered. If that happens, these shares should spike upward sharply. This is not a bad speculation at all. But it’s not without technical risk (the numbers above are still quite preliminary), so we would not rate it above our current buys. That said, we’re happy to be long and have a stake in whatever happens next in this story. For now, we Hold.