Cash cost has again been low for the latest underground drilling. I continue to be impressed with the tight rein on cash spend.
Has Line 11 been drilled yet? This is from the 4th May announcement "Our immediate interest is the Line 11 anomaly, which is a large and intense target. When aggregated with adjacent anomalies it has a scale footprint larger than the San Jose Mine. We are planning to drill several holes over this target in our forthcoming surface drilling campaign." I suspect that the potential Exploration Target of up to 34 Mt takes into account the geophysical results at Line 11.
Overall, I think that it's a good quarterly with the next six months providing plenty of news flow, my main issue is that progress is very slow (broken record from me again)
Stewart told me a few years ago that any start up costs will be very low, due to the amount of infrastructure already in place, with the result that a relatively low tonnage will be feasible. My understanding is that a crushing circuit will be required before zinc ore (potentially up to 55%) can be transported to the Asturiana smelter. Do we need a crushing circuit? What other major costs need to be budgeted for in a mine restart? Some comments from our latest director, Nick Farr-Jones regarding funding via Taurus Funds Management would be useful.
Do Variscan need to do another cap raise or will be impending San Jose mineral resource be enough for Taurus to provide mining finance?
VAR Price at posting:
2.8¢ Sentiment: Buy Disclosure: Held
