re: Ann: Spectacular Grades at Austin - Signi...
I don't mean to rain on what appear to be some spectacular results however my concerns about buying into this story are: 1. the drill results, whilst impressinve are very deep 2. they are not consistent with the results that were published in the recent investor presentation which identified the maiden jorc resource 3. the tonnages published therein do not seem to support the establishment of a fully blown mine IMO, consider if you will for example, from page 10 of the presentation: - 11,545 oz of gold, would be equiv to $11M of gold at $1,000 per oz or $22M at $2,000 per oz - 15,141 tonnes of Copper at USD$6,500 per tonne would however be equivalent to USD$98M
but..... They have to build the mine and process it.
Me thinks that with the low depth in the SP, this one needs to improve its potential profitability before it goes anywhere significant and if it does prove up a decent resource, it is either going to have to farm out or go to the market.
Be alert and DYOR.
Happy punting.
SWN Price at posting:
39.5¢ Sentiment: None Disclosure: Not Held
