RE:RE:The reason SUNM is running is....Prices can vary. But this is a ball park estimate without knowing more data on the deposit.
Odds are this will be a large scale decline. So trucking not rails or perhaps a combination of the two. Who knows at this point. But the cost per linear meter in decline development is $1750-$2250. Times that range by 2100m and you have your answer.
So 3.675 mil to 4.725 mil.
Average cost of deep surface drilling = $200 Cad/metre. Deposit appears to start 500m+ deep. So $100,000 dollars per hole would be wasted to define the deposit from surface.
By declining into it the company would recoup the savings entirely once 35-45 more holes are drilled.
Again I reiterate. It is ultra rare for an penny stock to use this form of exploration development at this stage. This fact this planning exists speaks to the significance and merit of the discovery. It’s importance cannot be understated.
Here is the elephant in the room that no one has mentioned yet...
What if the decline location selection is strategic for more than just its use as a decline. What if the company did reconnaissance exploration in the area of the portrayed decline plan. What if the area has never been looked at. What if when they went over there, they found a surface expression of the deposit horizon or indications of which.
Lots of what if’s. But it’s not outside of the realm of possibility. Most discoveries are like a puzzle without the puzzle pieces. Find one piece and it can lead you to the next. If news of this nature occurs and management is able to theorize the deposit could have 2000m of strike. Then .35 will look like a dream entry for all. Big leg ups will take us into multi dollars very fast.