For some of the smaller deposits such as Mt Webber – absolutely no. With iron ore you can prove up a tremendous amount with minimal drilling expenditure. Remember that FMG came up with their first 1.6Bn tonne resource with a little over $100m of drilling. The major expense came with the development – it is important not to confuse the two. GIR would of course contract out the mining activities for the smaller deposits.
If we were talking about Yerecoin or Earaheedy – of course, there would be significant capital raising(s). But if these projects did come to fruition – especially Earaheedy – then I suspect GIR would not exist in its current form.
GIR Price at posting:
$1.05 Sentiment: LT Buy Disclosure: Held
