Company update - 2 PEA's in next 5 monthsI just received a reply from the company and it explains their development path very clearly and looks to provide a host of positive development news in the near term. They are taking 2 paths to producing gold and silver with the cashflow from the gold mine supporting development of the silver mine. I have attached their email reply as it will answer a lot of questions. Good things are coming !!
Email reply from SLVR July 26, 2023 .. We expect to have a PEA released on the 1m oz gold resource by early September. We want to have that study published prior to attending the biggest investor conference of the year in Beaver Creek, CO. That begins on September 12th.
There hasn't been much additional drilling into the gold resource in terms of adding additional ounces as the drilling over the last couple of years has focused on the discovery of the high grade silver veins that span across the district. It may however include the resources from the tailings stockpile that's at the project as we have done enough testing and have determined that the grades are high enough to make them amenable to heap leaching.
A second study is also underway that will have a resource estimate for the aforementioned drilling in the silver veins along with a PEA, and that will be issued closer to year end.
I understand about the clarification and I suppose on one hand that's a good thing as there's two tracts for the company to advance to producing metal and of course cash flow.
Tract one is develop the gold resource and generate cash flow to then use that cash for tract two which is developing the underground high grade silver veins and generating a second stream of cash flow from those resources.
We have been working on two tracts to better analyze the capex requirements for each development and the resulting cash flows. Given these markets it makes sense to protect the cash balance, utilize project financing and stage the development so you can use the cash flow from one to fund the build of the other. The goal would be to avoid having to raise capital in the public market. Once the study is out we can say more on the path forward on development/financing.
The company has scaled back the drilling program to conserve cash as it's moving towards the development. Currently there's +25m on the balance sheet and we are estimating that utilize the stages approach of development it will be enough cash plus the addition of project debt to get the gold resource into production. The numbers to come out in the study in early September.