Capex is low and margin good at $1600 area. Metallurgy is simple, with no copper like at Deflector. The existing decline is from the early 1990's and in poor condition with significant flooding. Some potential risk in the rehabilitation as always.
It's a solid gold development / exploration play that should make it across the line and actually be profitable. I don't see funding as being a huge risk, dilution will happen, but hopefully minimal and we are left with about 150mill shares on issue tops. Once they are in production, cash flow should cover all the additional exploration and development options.
Worth watching as the market is at present unaware of EGA's potential IMO.
EGA Price at posting:
27.5¢ Sentiment: Buy Disclosure: Held
