Positive mainly because now they can start an accelerated exploration program. There are some compelling targets that are yet to be properly drilled and there is one just to the NE of Okvau which has all the signatures of a look alike, which if that proves to be the case, will substantially add to the value of the existing resource base.
In addition, the in fill drilling and metallurgical work will allow for a more robust review of the start up and operating costs for Okvau. The two companies clearly have an expectation that they can substantially reduce capital costs, as highlighted in the NPV information.
Which ever way you look at this, there is massive share price up side, whether on further exploration success or a serious improvement in the economics of Okvau. Even at current PFS costs, they are showing a margin of $US500 an ounce, which is very good. I think that you will find that there will be a lot of news flow over the next few months, given their stated intention to do a lot of drilling ahead of the wet season.
Add to My Watchlist
What is My Watchlist?