“why would they waste time and money on Buccaneer just cause it is already well defined and in close proximity?”
Again a fair point to raise Jemma and it might work out that way.
The problem with that argument is that unless you drill, you will never know the potential of an ore body and there are some very good drill intercepts with higher grade zones and the ore body remains open.
If it wasn’t for wasting time and money on Buccaneer and exploring around Buccaneer, would OP ever have been discovered?
It won’t be long before the scoping study is completed which will give management information on whether to continue exploration of Buccaneer or back off for now.
The way I have been looking at Buccaneer to date is this;
Considering the likely value of OP, as investors we get Buccaneer for free- less any exploration expenditure from now on (based on the scoping study, OP is worth considerably more than the current mc and there is further value in the resource below 100ms as well as recently discovered veins not included in the study).
Buccaneer is large (multimillion ounce) and already well defined.
It is low grade but it is also shallow and low strip and it does contain high grade zones with visible gold.
We may end up being better off leaving it on the sidelines for now (the scoping study will give a guide) or it may be worth developing soon after OP cash flow builds the bank balance.
At worst I see it as an excellent asset to have in case we get a mania in gold with gold moving much higher.
In that case, because of its scale, it gives us much greater leverage to higher gold prices than OP alone so no matter what the scoping study comes up with, it’s an asset well worth having as a free option for higher gold prices.
If that occurs with gold, the upside for the sp may be multiples greater than what it would be with OP alone.
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