RE: A little help please?hey dennis, welcome to the gold pennies
they said they want to use the completed drilling to determine the viability of the deposit.
this is different from a fesability study.
fesability is neccessary for aquiring financing for mine completion. this includes how much gold is there, costs to extract, building a mill, recovering the gold compiled into a balance sheet that tells them how much they will make and have left over to pay the financer.
a viability study will only determine how much gold is there, because they do not officially know.(the info they have on the property does not conform to standards outlined in 43-101 guidlines) the study they are compiling now will give them a figure that they can officially publish and use to determine, in conjuncture with gold prices and options, whether or not to go through to feasability on the project.
this is where a bit of speculation comes in...
historically (with gold in the $200 range) >3g/ton makes a gold mine, depending on how easy it is to get at.
with gold pushing $500/oz, that would make 1-1.5g/ton potentially just as viable.
so thats what these guys are doing, they have 0.5g/t and they want to make that at least 1g/t, so they drilled some new targets to hopefully hit some higher grade zones.
if they can get 1g/t they have a viable prospect, and can start working on how much it is going to cost to extract the new gold they found, how much it is going to cost to build a mill and refining facilities to match the kind of deposit chemistry they have, and lastly where to get the money for it all, either private placement of shares of maybe bank financing.
all that would be included in a feasability study.
this is an article that describes the 43-101 guidlines, the link won't work so you'll have to copy and paste it into the address bar.
https://www.georeferenceonline.com/NI%2043-101.htm
also, i noticed that the market for this one is really thin, so be carefull, sometimes these issues have to hit new lows before making any gains, its just the physics (technicals) of the market. and can be regardless of the fundamentals in any issue.