They have dropped the grade for outlining the mineralisation from 0.5g/t in the last model to 0.3g/t which has dramatically increased the volume. Potentially too optimistically looking at figure 4. A lot of resource in the outline where there is no gold in the drilling. I am surprised they have put figure 4 out. If this typifies the resource it is concerning. The same theme is shown by figure 8. Hard to see but it looks like the grade of the resource is too often above the grade of the samples. A risk that high grade gold is being spread into an overinflated volume.This would have been put into context if the 2018 and 2024 tonnes and grade graph were displayed. Surprising they have put out the 2018 graph and not the 2024 one as well?
They need to find new gold and stop drilling the same targets. Have they run out of ideas or is that as good as it gets? In that part of the world they will need a lot more than the resource they have. With only 300koz of indicated resource there is a lot of drilling to be done before there is any hope of a mining decision.
Maybe the resource update is in preparation for the next raise. The cash balance in the quarterly tomorrow will be telling.
PRX Price at posting:
0.3¢ Sentiment: Sell Disclosure: Not Held
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