a crucial time, worth the punt?

Hello peoples,

I've been going over the announcements and what people have babbled about on the SVL threads.

I am concerned that HC posters seem to misunderstand where SVL is currently at (or I misunderstand).

At the current known resources the Webbs project is not profitable at a silver price of $31/oz, the base level of the scoping study.
At $40/oz it is barely profitable, enough to keep SVL going for other projects perhaps.

However, I'll direct you to the following image:



Here you can see the effect of various resource upgrades. The numbers are incorrect imo. As per the scoping study the spot price of silver will dictate just how much of the silver is worth mining. A rough guide that matches the scoping study is to divide those numbers by 2.

What it does show though is how much of an impact doubling the resource provides, or even an increase to the spot price to $50. A discounted SP of .50c in that case would be reasonable.

So with the likely possibility of an increase in resources AND the likely possibility of silver being >$50 come mining time SVL should be quite profitable. I think taking the punt at these levels is a good idea.

What do you guys think?