he confirmed what I suspected - the results warrant follow up drilling. MAG will have to be very careful how they select their drilling targets and will need lot of luck to hit the honey pot (again, if there is any) with the existing funds.
Yes, they will review all the holes, will run them through their 3D model which will offer some predictive scenarios where some of the causative intrusions could be hiding. But at the end MAG will need luck.
All of them do same but very few come out with the results. 3D models are good, very helpful but a Geo with good instincts is still lot better. In time the technology will become lot better and magnetics will pin-point where the deposits are but, for now, we are still depending on good Geo instincts and luck - lot of luck.
The only bad thing of this drilling campaign is the limitations of how deep he could drill and that would be because of the thin funds.
Now the question is where the follow up holes are going to go and if there is JV on the cards. With liquidity draining, I can't see any JV at decent terms being offered so MAG might be better off doing small CR (@Pockets I doubt they can do $10m in this environment - even if they want to) of around $3m. Then get to drill 3-4 deeper (500m DD cores) follow up holes and also drill 5-6x 400m holes at Parks and hope to get decent results from there.
Good results from Parks can move the SP higher and allow for another CR of another $3m which will allow for 2 more years of exploring. Or may attract JV offer from ALK which could include cash injection.
MAG Price at posting:
5.5¢ Sentiment: Hold Disclosure: Not Held
