RE:RE:RE:RE:CongoSilver Knight,
If AFM can expand their resource through similar high grade deposits close by, it would definitely make the project more desirable. Financing has been a problem. There is a credit facility of $80 million with interest payments of 16.7% (14% + 3 month libor). The only reason anyone would agree to such draconian terms is that a high degree of risk has been assigned to the project. I believe there may be a couple of other smaller loans as well. Not sure of the terms. Contrast that with IVN. Loaded with cash, and a JV with Chinese state miners likely solves the problem of funding.
If AFM can get past the hump of paying off creditors in a reasonable timeframe, then perhaps they can use earnings to bootstrap themselves up, and meet with further exploration success. Mineralization is mostly concentrated in a modestly plunging high grade cassiterite chute. That provides the resource values we’re seeing. There is apparently another chute to the South. So far, drill values are promising, but more modest. It’s a possible source of additional ore, although how much is uncertain. There are other geophysical/geochem anomalies in the area. They drilled one area, and came up empty. Others may prove more productive. I’m really not into small stories. If you’re going to put down money in mining, you want to be able to do more than keep management gainfully employed. After salaries and perks, what’s left over for distribution to shareholders? But it’s worth keeping an eye on.