TEPAL - PORPHYRY OR EPITHERMAL?It's nice to see some discussion's on this board. I reinvested into GIX for two reasons, improved metal prices and the hiring of Ms Kearvell, VP of explorations. The following is a brief summary of her accomplishments.
"Ms. Kearvell is an exploration geologist with over 30 years of experience working with junior and senior exploration and mining companies throughout North America and Mexico. She has worked exclusively in Mexico since 1994 during which time she co-discovered Teck Resources' San Nicolas VMS deposit in Zacatecas State, managed the pre-feasibility field program at Goldcorp's Los Filos Mine and led Teck's exploration team that developed the Guerrero Gold Belt ("GGB") exploration model resulting in the El Limon-Guajes and Cerro Media Luna discoveries, currently operated by Torex Gold. She was most recently Vice President of Exploration at Newstrike Capital, where she led the Ana Paula Project discovery team until Newstrike's acquisition by Timmins Gold in 2015. Prior to that, Ms. Kearvell worked as Vice President of Corporate Development for Aurea Mining where she introduced and promoted the GGB to capital markets, among other duties. Ms. Kearvell resides in Guadalajara, Mexico."
In 2K17 she reviewed past exploration programs and initiated her own and successfully tested the updated model with surface mapping and sampling.Tepal's model was then changed to a epithermal system from a porphyry system. She believes that there is a epithermal system underlying the Tepal property. This project is now drill ready but the share price was to low to raise capital, hence DEF'S position to follow up with a drill program after a PP.
I was not impressed with the exchange ratio of only 0.71 with Tepal's updated PEA in 2K17 of 4 million oz of AuEq in the M&I category. The Capex to mine is 214 million with a pay back period of only 2.3 years, this is based on $1250.00 Gold and $2.50 Copper. I hope Defiance makes this project a priority as I'm not trying to take away from there San Acacio project, which has an excellent exploration potential. The golden rule for juniors is to look for deposits where others have been found. There is a lot of large cap miners surrounding Defiance.