RE:RE:RE:RE:RE:RE:Allocating CAPEX among Platosa, Kilgore and Silver CityKilgore has the total of 1 mill low grade ounces (0.5 gpt) resources in the three categories. These extremely low grade numbers would only support a marginal open pit mining. Then the real possibility of Kilgore never been allowed to operate as an open mine.
What are the options for Exn - go down and drill deep hoping to find out sufficient ore body to justify operating an underground mine.
1/ There has been no sustained underground exploration so far of KIlgore project and the CAPEX allocated for KIlgore U/G drilling easily will eat out the meager working capital generated in Platosa. In fact, it is more likely there will be rouns of private placements to raise cash to fund Kilgore exploration;
2/ The timing - assuming everything works as planned, PEA for Kilgore UG will take at least 3 years. Then add the time to build the mine; then add the time to source the mill;
3/ The cost - the cost of building Kilgore UG alone will be into hundreds of million $US. God forbids Exn also wants to build a mill on the property.