no you didnt read correctly...they said 'potential to double'...however note their promising announcement today.
An interesting company...im not holding BUT, based on what ive read, the reason they mention 'double' is that is what i think they will need to make this project feasible. A 100tpa project would be marginal...a 200-300tpa project would be much more robust, however with only a 3 year minelife (at current 930G t of resource) not worthwhile.
They need to get around 1.5 to 2 mill tonnes of ore I reckon...and they probably will.
This is one in my 'maybe' book...taking a good hard look at it. My next step, to check out their management credentials...
At a pretty small market cap, there is big upside on good drill results (eg todays 2c increase). Unfortuantely i already have two significant zinc plays, HER and PIL...both of which have very feasible projects imo, with HER almost a no brainer (except for indonesia factor).
In fact you might want to compare TZN with PIL to see what stage its at, PIL has the advantage of significantly higher copper grade, and an ore resource of double TZN (and financine support form Tanami)...and closer to BFS, but only double the market cap of TZN...so might be a better play...but of course the danger of a BFS delay hangs over PIL (eg Gunson, ORO, SHN experiences recently).
By the way a bailleaus report on TZN, out today, has a valn of 52c on TZN, but, as per my earlier comment, only if they double the ore resource.
I may get some as the potential I believe is there. but will only get a small amount if any.
cdchi1
TZN Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
