Positive announcement during the week regarding trial mining, however the current shareprice is pitiful.
This is in large part due to the current raising that closes on Wednesday (and the markets perception of Iran, and management).
From the way I see it there are technically very positive signals coming from the project - the successful completion of trial mining one of them, confirmation of the resource from Kvaerner another.
With the prospectus hopefully being under subscribed, shareholders will be rewarded with a US $4m payday soon (sale of the telco). This represents 50% of current market cap (of $11m).
This money will almost cover the remainder of all aspects of BFS, testing etc with the remaining $$ available from a short term loan facility.
This project suffers from high political risk, but with majors like RIO currently comfortable with having teams of dedicated geologists in IRAN, one suspects the discounting of a project with a NPV in excess of $1bn (at current zinc prices) is a little extreme.
time will tell.
UCL Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
