RE:RE:obviouslyCountryJake,
As announced by management in one of the drill bits, it is exactly their intention to increase the cutoff grade to come to a reduced resource with an average grade that makes the whole toll milling approach economical or even very economical.
Hereby creating free cashflow in order to develop the big potential of the Mirado project and increasing shareholder value.
The size of a resource itself is not relevant for as long as it can not be extracted in an economical or profitable way.
I am very confident that the upcoming PEA will surprise a lot of people in a very positive way.
First , because of an extremely low capex, if any , since SCR has agreed to take these charges and be reimbursed out of proceeds from production.
Secondly , because of very low opex, due to a high grade near surface resource. For similar grades open pit production is always more economical than underground mining.
Third, due to a combination of low capex and low opex, the IRR will be extremely high.
Finally , as a very important consequence of the fact that SCR will take care of the capex, there is no longer any project financing risk and no shareholder dilution due to financing.
So as a shareholder since March last year, I am more than satisfied with this approach and even if the PEA would only be published early next year, it will be more than worthwhile given this ridiculous valuation , with an enterprise value well below 4 M.
Good luck.
Long ORX