The grades at Dargues, for an underground mine, are disappointing, and IMHO not within profitable mining limits.
Except for a couple of holes in a small sweet spot, the rest are low grade for the depth, which makes them problematic to mine overall at that depth.
They are really going to need to find some additional gold deposits closer to the surface, to the East or West, otherwise the Dargues purchase will effect more criticism and continue to kill the company.
I'm not sure who the genius was who decided to buy Dargues at the price acquired, but they may soon be out the door unless something prospective turns up.
AMI are lucky the copper and lead/zinc additions are promising, however there is an issue that lots of desperate additional Dargues drilling might eat up all the profits from the base metals gains.
Dargues is the issue here now, and it needs to prove itself, or we are talking white elephant project, expensive to maintain, and difficult to dispose of.
Gw
AMI Price at posting:
32.5¢ Sentiment: None Disclosure: Held
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