Those are significant widths uncovered. As stated by Barry, "we believe this will provide additional resources of mineralisation to the planned future large scale open pit development at Nifty."
Every additional 20,000t worth of copper adds another year onto the existing Life of Mine. By expanding the resource prior to finance, the investment should be further de-risked and thus CYM should have better terms to negotiate with.
Assuming an ASIC of $2.50/lb with the current copper price at $4.50/lb...An extra 20kt equates to $121 million AUD.
So whilst in some manner I'd like to see CYM be conservative with it's spending prior to finance coming through - spending just over $2m AUD on exploration to potentially expand the resource by hundreds of millions of dollars worth seems like a worth while investment, which surely should result in favourable financing terms.
CYM Price at posting:
13.5¢ Sentiment: Buy Disclosure: Held
