2022 will be the company-making year for Siren, starting in the next 2-3 months with the Scoping Studies being completed and applications made to the NZ govt for the declines and financing of the gold processing plant.
Even with the existing JORC 700k Oz at 7gt once mining, SNG will be worth north of $A250million. Im expecting them to find 1.8-2million Oz down to 2,000m and if they hit a Swan Zone of their own then it's off the charts.
With the gold price at $A2500-$A2600/Oz it is extremely profitable. Instos will buy in the closer to production SNG gets. These underground gold mines are cheap to build, BR can pay for it himself, but the ace up the company's sleeve is to also process the gold for all the underground gold mines on the South Island. He can probably pay for that too, but once that is de risked, we'll see a strong share price move north.
2-3 months before they finish the scoping studies for gold plant and declines (which initially are for drilling and then once the mining license is approved for mining) NZ Mining licenses only take 2-3 months max.
Once the scoping studies are done, then NZ govt approvals then Financing then Mine Application and we are off and running.
The underground mine is cheap and fast to build, especially for someone with Brian Rodan's experience in underground mine construction. But for me, Im keeping my fingers crossed for our own Swan Zone.
The deeper you drill, the richer the gold in these high grade quartz lodes/zones with stibnite. Same as Fosterville and Queensway, Alexander and Big RIvers' sister deposits.
SNG Price at posting:
27.5¢ Sentiment: Buy Disclosure: Held
