Rusty...in my experience, the people who call into question geology on social media are usually the ones who know nothing about it and instead use anonymity to hide behind when they make comments purporting to be the expert. Or worst still, they’ll claim they have geo friends who also dislike what they see....GT on this forum was a great one for that.
Very few of us a expert geologists, I know I’m not but where TSO ticks all the boxes for me is this....
1. The board of directors have many years of mining experience, not just in exploring but in production as well. Much of this experience is in Australia and South America, especially in Chile.
2. The location of El Zorro is very amenable to a very low all in sustaining cost (AISC) due to many factors such as; access to water, expected low strip ratio, close to labour, low altitude, favourable metallurgy, open pit rather than underground etc. This low AISC is super important as it means the PFS (feasibility study) can still show an economical mine even if the price of gold (POG) drops back to the low teens. You’ve got to appreciate that the current POG is stratospheric and mines with low AISC’s don’t need the price to be any where near this to be profitable.
3. The drill results are what they are. They’re analysed by third party specialists In Santiago and are reported on. These results are then reviewed by the mining geo’s at TSO and then verified again by Cube in Perth for accuracy and compliance with JORC techniques and best practice. The IP data is collected by specialists in this field with the results analysed and reported on by experts in Perth. I would rather put my trust in these professional, recognised experts, with their reputations at stake, than a bunch of anonymous social media ‘experts’ with all sorts of hidden agendas.
At the end of the day, if you do your research on TSO you’ll see a company on a very exciting path towards a MRE in only a few short months. Quite possibly production in 18-24 months. This is what provides the confidence to stay the course when emotion if left unchecked will cause you to panic.
Yesterday, the promise of a vaccine and a fall in the POG caused people to panic....OMG what is wrong with people....something to help humanity perhaps (if it works) should be celebrated and a drop in the gold price from record highs isn’t going to mean doom for mining companies with low costs...
Finally, I apologise @Freddieflintoff if I offended, this was not intended...I do fully appreciate the fact some people are doing it tough, financially and mentally etc. Goodness, I should know this as I’ve been off work for 6 months due to Virgin being in administration. But I think if people are really on the edge financially then perhaps the share market is not for them...especially if they’re susceptible to panicking at the first hint of ‘bad’ news.
Cheers Amigos.
TSO Price at posting:
19.0¢ Sentiment: Buy Disclosure: Held
(20min delay)