Growth Story with Scalability - No brainer, EQThttps://resourceclips.com/2016/08/18/straight-to-phase-ii
- Seasoned management (both locally & globally) with skin in the game.
- Low projected production costs. No need to blast/drill. Just shovel the saprolite up.
- Hence, very simple operation.
- Local and government approval to operate. Licenses and permits in hand.
- Large funding partner with confidence in the team and project. Locked up their bought share position for 18 months. (who does that if you do not believe in the investment).
- Scalability. 184,000 hectares and they have only spoke about a fraction of 34,000 of it.
- Growth story. Surrent valuation DOES NOT equate to what has been so far proven up. With the scalability of other identified mineralized areas. No brainer.
As I was told today, not purchasing and constructing a gravity plant until they got the met tests back saved shareholders capital. Fast tracking straight to CIL they go. It costs's IN TOTAL $2M. The gravity process would have just started the company on cash flow for an extra few months, and little volume from it.
It was projected with a 50% recovery rate to produce 3,000+ oz per year. The CIL was projected with a 85% recovery rate to produce +12,000 oz per year. Do the math geniuses, Gravity 12 months at 3000 divided to per month is 250/oz per month. A drop in abarrel versus the 1,250/oz per month that wil come from the CIL. With the gravity not coming up to expected projections and the CIL surpassing expectations this bodes well for all of us. Keep in mind with the cash flow they will expand the CIL and have plans to build more plants on other zones.
I say, screw the gravity process and bring on the CIL!