Come back in 12 months and review the economics of getting into production once the hype has died down and exploration has started developing the resource further. For instance, the resource is all inferred. Big companies use a ball-park figure for conversion of inferred to measured in their assessments and a higher percentage for indicated to measured. Is it 40% for inferred? Sorry, I cannot remember off-hand and not motivated enough to go and find out. We have all seen reactions like this with IPOs, encouraged with presentations from the promoters, followed by a sense of reality going forward. By way of example, look at the SP chart for KM1 last year that I sold in the early days (without any regret).
The only significant wild card is the price of silver. Maybe this will explode after gold goes for it, but the gold to silver ratio remains high at present and the Ag price has to hold for some years before SS1 gets into production. I have been hearing this story of silver exploding for quite a few years now, whereas the best explosion that I recall is when the Hunt brothers tried to corner the market decades ago using their oil profits and fell flat (bankrupted?)..
SS1 Price at posting:
62.0¢ Sentiment: None Disclosure: Not Held
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