The veins in Cascavel are too narrow, they need to come up with a low dilution/ high recovery solution otherwise it will not be profitable. The high nugget effect in cascavel is an impediment to built a block model with enough confidence that allows the company to do a PFS, without a PFS mining is almost like a casino. Without a basic PFS there are costs that cannot be properly addressed like drainage, ventilation, transport,etc.
IMO Orinoco would be more successful investing the company money in other assets like Sertao were there is a geological model in place and also previous ownership with tracking record in "making money", IMO sinking more money in Cascavel is trying to change the outcomes without changing the company actions.
OGX Price at posting:
0.5¢ Sentiment: None Disclosure: Not Held
