Seafield Resources Ltd V.SFF

Sell Dosquebradas to fund Miraflores?

[TheRock07]

SFF recently  announced an initial mineral resource estimate for its Dosquebradas gold-copper prospect in the Quinchia district, Colombia.

 

The Dosquebradas prospect contains inferred resources of 57.79 million tonnes grading 0.5 g/t gold and 0.04 per cent copper at a cut-off grade of 0.3 gram per tonne gold for a total of 920,772 ounces of gold.

 

By assigning a gold equivalence to the contained copper using the parameters indicated in the table notes, the total resource estimate increases to 1,049,790 gold equivalent ounces at a grade of 0.56 g/t gold equivalent.

 

One option to develop Miraflores is to sell Dosquebradas and use those funds to offset some of the $93.4 million needed to bring Miraflores to production.

[Pandora]

So if Extorre (which used to be $15) now sells to Yamana for $4.26 in cash and shares what kind of a optimistic value does that put on SFF.

[HoundDawg]

Argentina is a place that nobody wants to be after they stole YPF.  Expropriation and the treat of further expropration tends to lower value.  Unfortunately Extorre could not go to the market being in that region with that risk.   Further even safe havens can't raise funds.  Even if SFF could go to the market they need a $5 SP to raise money or the

[TheRock07]

Really impressive math there hounddawg. How about 100 million shares at .50 and fund the other $40-$50 million thru forward sales or debentures. That would leave us with about 300 million shares, with a cash flow above .25 per share. Or, high grade the open pit for the first 5 years which would reduce the initial capex down to about $60 million and use the robust cash flows to develop the u/g mine

[TheRock07]

Really impressive math there hounddawg. How about 100 million shares at .50 and fund the other $40-$50 million thru forward sales or debentures. That would leave us with about 300 million shares, with a cash flow above .25 per share. Or, high grade the open pit for the first 5 years which would reduce the initial capex down to about $60 million and use the robust cash flows to develop the u/g mine

[HoundDawg]

Why not 500,000,000 more shares?  Dillute somone elses investment not mine. Caesar needs to quit the infill drilling, wasting my money on small gains.  Identify some new targets and add some real ounces before he burns up the rest of the cash.  New targets will vault the SP then we don't need to add another 100,000,000 shares.   Thanks for the math