Think bsumisu has responded and answered most of the queries here and i'm aligned with them.
Regarding strategy; "flotation concentrate over the border vs a thiosulphate leaching process for the 3rd stage recovery" there's a mine south of Sturec which has implemented and is executing exactly this strategy. So it's really reinventing the wheel.
Regarding the open pit mining licence. Again company direction is clearly stated as underground mining. Also what 30M explorer typically has a mining licence period? So as i have suggested before and is also indicated in company presentation the strategy is a underground mine, probably shipping a concentrate over the border whereby there's further refinement.
To execute this strategy they need a larger portion of economic ore in the underground component - hence the extension drilling of indicated high grade zone. From there they intend to perform a resource upgrade whereby they can increase the underground component. I recall them saying 400k oz - 500k oz would be where they aiming to land.
From there it's a case of performing a SS to determine the economics. I garner that given 3g/t is usually the economic standard for underground economic and compounded with the proven ammenability to extract the gold via met testing that it will be economic. Additionally, if they intend to ship a concentrate i imagine the capex will be quite small. Added benefits of the existing infrastructure (as previously mined) is that the resource is very high confidence level along with ease access for further drilling.
In my view the discount only doesn't make sense until it does. what do i mean? often you invest in a stock because you see value. the stock doesn't then immediately re-rate because of your investment. Most stocks i invest in i either sit on a loss or breakeven for months before the market eventually plays catch-up. In my view the stock just isn't that well known, there's still some salt in the wounds from previous venture re lithium and i would say that perhaps people are expecting a CR in the next couple quarters. From recollection of the quarterly they had around 3m in the kitty and something like 800k out in the previously quarter. With some drilling expenses in this current quarter would expect them to be around the 2m market at current which would suggest somewhere in H1 they will raise some cash IMO.
All things considered i still see a very good risk verse reward and with 1m oz already proven to measured indicated levels and they're suggesting with a little exploration they can move to 1.5-2m oz with an underground component around 25% of that i think 30m is very undervalued.
the S/P could triple and MTC would still be in the lower quartile, so with risks considered there is still upside IMO. Immediate term we have the drill results due any day and from there theres a resource upgrade coming inclusive of results and then fick to a SS.
SF2TH
MTC Price at posting:
21.0¢ Sentiment: None Disclosure: Held
