Morning all.
@Quamdives@binwoodI would not dispute any numbers you have suggested at this time in the game.
I thought that this latest Acquisition had a previous historical resource of a number very similar to what we already have- 90m oz.
When the ann came out, My immediate Q was, where is the resource?
It is easy to identify where it is when one looks over the ann details.
A large amount of those holes are pre 2012, or pre JORC.
That being the case, we will have to repeat some of that drilling to get the resource to current BUT-
It does spell it out that our resource will grow very quickly if my assumptions are correct.
I am not sure how this will be handled as we progress our drilling but we have all the targets very clearly defined.
I have not investigated the Met work that was done but I would look at say Cerro Vanguardia, (I did briefly but didn't find it) to see what recoveries they get.
Our latest add on has much higher grades of Gold and Silver as opposed to the current resource which is Poly metallic.
This is one reason I am of the opinion we will, see rapid growth.
We also have the advantage of choosing the best places to drill based on the Historic Info.
As I understand it, during the last bull market, this land package was valued at around $1b and split between 4 holders.
I don't have the historical info to post this and haven't even attempted at this stage but if I find it, I will post it.
Onto valuation- If I was to value us now based on numbers previously posted, the easiest way is to do the oz=90m
times the global res oz value at $$1.70.
That does not allow for so many factors.
1. The rise in the metals and in particular PM's since that was done, (yes I know it was not long ago but things are now moving rapidly).
2. What we expect to see with future metal prices and in particular the $US- I am expecting a large drop which will really ignite the metals.
3. Our exploration potential that imho is extremely positive.
4. The new ruling by Javier about the use of holding $US by companies in the country which is going through now.
This will really bring attention to exploration in this country.
5.The country is something like 70% un explored so I would not be surprised to see many new entrants looking for good projects like ours.
That will do for now but with the current BO in Silver mainly, we are off to new high's but can't predict when of course.
The delays we have had are now in OUR favour as the supporting factors were not there before, like they are now.
What I am expecting is that any valuation will be out dated rapidly as we progress from this point.
We hit $1 on the Mia hit.
With the resource addition of 52moz with Pinguino, taking the last what was left of Conserrat to now holding 100%,
Purchase of Sierra Blanca, and the potential we now have in targeting, IF we get a hit similar or better than Mia,
What do I expect the SP to do? I personally think $1 is conservative.
Add to that the rising res inventory and all of the above and Bingo.
We could be undervalued to ridiculous levels far below the already ridiculously low valuation we have now.
I know that I have posted this before but there may be new comers here that may not be aware of the hit at Mia so read this excerpt below.
Just in case, here is the chart showing the market response.
Interesting to note what the share price was up to this, also that it got the attention of Eric Sprott, but more so that the silver price was at ~$24 at that time.
Where is the silver price today? Currently $32- $8 higher.
I can't remember the aisc back then to make an apples for apples but we know the silver price makes for a far greater margin and it IS rising.
Oh and did I mention how shallow we are in exploration to date.
These HG epithermal veins do NOT stop at our current depth of ~200m.
Matter of fact they usually increase in grade.
I hope that this explains the problem of trying to value it and this post is in no way a measure of disrespect to both of you for your numbers, to the contrary, I admire you both for doing it.
May I add, that we have a debt problem like nothing we have ever seen historically so PM's price potential could be equally historical in movement.
AND the current silver use means that we have historic supply deficits like never before
Add to that that the supply deficits do NOT include weapons like the Tomahawk missiles. That is 500oz per missile and that is just that weapon.
Sorry, I think I am getting a bit passionate about the subject now, so better sign off.
Kind regards, Wack.
(20min delay)