We haven't had an upgrade to the resource since December and...

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Davisite

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08/03/18

16:19

Post #: 31625323
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Originally posted by speculator101 ↑

Hi Dave, for now I will respectfully disagree, the grades and widths so far will perhaps add some ounces, but.. nothing substantial and with the very small production rate planned, I agree it won't take much to rase the rates, but.. they need to have better results to really achieve that.

I also respectfully disagree that they will be aiming to hit 100k p.a in just 3 months time. Baring some sort of massive strike/success. I like the company, its tightly held, well supported and is starting small.
It is indeed well cashed up and on an E/V perspective, its cheap, but a lot to come before I think the market will start paying attention.

@naggingnan - yep, you called it option wise. Well done and I think its a bit of rarity in the gold sector to see that sort of support cash injection wise. I agree to that the share price might find it hard to move in the near term. Still, I would admit the downside of EGA has been reduced, while the upside is widening.

Baro - PNR are a freak, they seem to be finding gold everywhere, plus... have competent management, sadly its hard to find both in mining stocks! Lucky buggers with PNR. Share price is going very very well.

I will continue to watch EGA with interest.

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We haven't had an upgrade to the resource since December and there has been a lot of results come in from Woodley and Woodley East. The last update had an inferred + indicated at 307K oz at a cutoff of 5g/t. What makes me quite optimistic that the DFS will come in on the high side is the effect of the ore sorting. This will allow them to drop the grade cutoff and chase narrower veins without excessive dilution. Add in all the shears to be drilled and a 500K oz resource does not seem outrageous.

Even at 300K the EV seems far too low given the timescale to the DFS and the very good cash position.

EGA Price at posting: 25.5¢ Sentiment: Buy Disclosure: Held
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