Yes there is a lot of work to do on Ternera. But even more to drill out the whole prospect.
Which is why I posted earlier its pretty clear IMO we will focus mainly on Ternera and developing that as a commercial mine before we even think about drilling out the rest of our original lease.
Unless we also drilled out a virgin part of El Zorro off to the side with the view to getting a resource there too and selling that to fund the rest.....
It seems just Ternera alone would offer a mine life long enough to be more than commercial for us.
Just speculation but I think its possible the guys knew (well this part is not so speculative) they had two commercial deposits in El Zorro and Espina.
My speculation is they had a concept to establish resources on both and sell one to fund the other.
Since that is not a possibility I would not be surprised to see them sell part of the project to fund the rest or them bringing in a farm in partner.
This deposit will go to mine and the funds to get it there have to come from somewhere is the bottom line.
Just borrowing the money in the economic climate we are entering may be tough, even for a very attractive gold mine building venture.
I know we have some strong finance guys on the board so perhaps funding and keeping the whole project is a possibility, I just think the project is likely to be so big we don't actually need to keep all of it.
Farm in would bring instant money, scale, additional in country expertise and personnel and equipment (especially with an existing Chilean gold mining partner). It IMO would fast track us to mine.
I know we are going pretty fast by ourselves but a big brother pushing your bike always got you going even faster if I think back to childhood.
This is for down the track I know but it will get to this point and a fork in the road will be reached and a path will be decided on.
I have no outright preference but management will already be thinking about such things albeit tentatively at this stage.
TSO Price at posting:
15.5¢ Sentiment: Buy Disclosure: Held
