development plan scenario

Giving the management the benefit of all doubt about their strategy, the KM project is precisely on track.

Plan A has seen an aggressive drill campaign, some 40,000mtrs targeting breccia pipes and porphyry stock on a budget of $5.386M. This mostly successful campaign found extensive breccia mineralisation in the pipes, eventually leading to a JORC resource by July this year with a budget of $2.7M. The porphyry stock has so far eluded the drill bit, so plan B, (the plan where everyone gets rich overnight) will be postponed till the second half of the year following the initial JORC.

The budget of $2.7M for the JORC should go a long way toward completion, so management will have a fair idea of the actual resource, more accurate than the present 50-150MT. The market has factored in the more conservative estimate which has brought the share price down. The volume of shares traded to this point however is insignificant compared to what is out there in the hands of those that are waiting for the big one, but that is the nature of the beast.

So what does plan A include for raising capital for the next round of exploration (plan B would have taken care of that)? The plan does not include a partner, we don’t want to share. A takeover is out of the question, we are Voyager! Plan A does include a JORC in the upper end of the estimate and a doubling of the present share price! A capital raising of 100,000,000sh at 10c will raise $10M in say July-August. A share consolidation of 2 for 1 will half the register to 669,560,781 so 100,000,000sh @20c will raise $20M and take the register to 769,560,781sh with a market cap of $154M, not too outlandish.

Plan B: $20M budget to develop the porphyry stock JORC = HAPPY DAYS :-)

All My Dreaming