RE:RE:SDA plant newsIt appears to me that xali is pulling back from some of the near term cash generators they envisioned in Mexico; It appears the permitting process is a real PITA in Mexico.; Getting the tailings processing going has taken forever. With El Oro I have no doubt they are in it for the long term theredue to the sheer magnitude and upside of the property; however,; these smaller projects they must feel are no longer worth the headache, papaerwork and red tape. They.ve pretty much off loaded all of these smaller projects to locals.
xali and Joanne do have a longer history in Peru and must at this point feel more comfortable with the regulatory environment and do have a good understanding of the geology. I would have liked to see the SDA plant move forward as it could have been a decent cash generator but it was a very small plant with limited upside without major upgrades which would have requred a lot of capital and time and headache.
At this point getting the tailings processing underway is the major issue. until the psychology in the PM expoloration sector changes capital formation will be limited without major dilution.